Environmental Management

ITOCHU Corporation has formulated the Basic Policy on Promotion of Sustainability covering the entire ITOCHU Group. ITOCHU is aware of the impact that its business activities may have on the global environment. We have thus built a framework for assessing the impact of the products we handle, and in particular before making new investment, in order to prevent environmental risk. We believe it is important to contribute to sustainable development as a corporation by implementing both the offense of promoting environment conserving businesses and the defense of taking a precautionary approach to environmental risks.

Environmental Management System

In 1997, ITOCHU Corporation became the first trading company to establish an environmental management system (EMS) based on ISO 14001, and we continue to work to improve our EMS. The system's aim is to comply with environmental laws and regulations, take precautionary approaches to environmental risks, including those related to climate change, and promote environment conserving businesses. Specifically, the system controls and manages targets through a yearly PDCA (plan-do-check-act) cycle of setting targets for preventing environmental risk, for promoting environment conserving businesses, and concerning climate change risks, such as energy conservation, resource saving and CO₂ emissions; evaluating and analyzing progress; and acting to achieve our targets.

ITOCHU Corporation's Environmental Management Organization

From April 2018, we adopted the Sustainability Promotion System by integrating and consolidating Environmental Management System and Sustainability Promotion System.

More details on the Sustainability Promotion System here.

Subsidiary companies included:
CI Textile Service Co., Ltd.
ITOCHU Automobile Corporation
ITOCHU Metals Corporation
Food Management Support Corp.
ITOCHU Orico Insurance Services Co., Ltd.
ITOCHU Financial Management Inc.
ITOCHU Treasury Corp.
ITOCHU Human Resources & General Affairs Services Inc.
ITOCHU Taiwan Corporation

Internal Environmental Audits

Internal environmental audits based on ISO 14001 are conducted every year, and in fiscal 2017, they were carried out in all 59 departments (including five departments utilizing a self-check format). Findings from the audits, conducted over roughly six months, are instrumental in taking precautionary approach on the environmental risks. Audit teams are comprised of members of the Sustainability Management Department, and carried out their work with an emphasis on auditing legal compliance.

Results of External Inspections

Each year, ITOCHU is inspected by BSI Group Japan KK (BSI) in connection to ISO 14001 certification. The fiscal 2018 inspection was a surveillance audit. The outcome of the inspection was an overall "improvement" grade and continued certification, based on an acknowledgement of ongoing system improvement efforts by ITOCHU.

Environmental Management Targets and Results

With respect to environmental management, ITOCHU establishes environmental objectives to be tackled in the medium-term, and then sets specific targets and conducts performance reviews based on those targets each fiscal year.

Item	Fiscal 2018 Environmental Targets	Review	Fiscal 2018 Implementation Details
Prevention of Environmental Pollution/ Observance of Laws and Regulations	When investing, perform environmental risk assessments in advance and ensure thorough corporate wide utilization of the CSR and Environmental Checklist for Investments. Strengthen the awareness of risk management through the entire supply chain through Environmental Risk Assessments by Product and ensure thorough corporate-wide utilization.	○	For all investment projects, we performed environmental risk assessments in advance through the CSR and Environmental Checklist for Investments. (The items subject to assessment include the state of energy consumption and CO₂ emissions.) We assessed the environmental risk of new products and conducted reviews of the assessment details for existing products.
	Promote initiatives to improve management levels by confirming environmental management systems, legal compliance and the state of environmental performance through internal auditing.	○	We conducted internal audits in 59 departments (including five departments utilizing a self-check format), confirmed the operation of environmental management systems, legal compliance and the state of environmental performance management, and provided advice.
	Select Group companies and conduct on-site surveys of their environmental management status.	○	We conducted onsite surveys and provided advice to four Group companiesto improve environmental management on site.
Promotion of Environmental Conservation Activities	Expand the scope of monitoring to information such as the energy emissions of overseas Group companies, as well as major domestic and overseas subsidiaries.	○	We collected and disclosed information from 16 overseas branches (including local subsidiaries), 65 domestic operating companies and 46 overseas operating companies.
Promotion of Environmental Conservation Activities	Set and review targets based on the Sustainability Action Plan. (Promote at least one target at each company and branch)	○	We planned, executed and reviewed the respective environmental conservation activities of all company divisions and branches.
Harmonious Coexistence with Society	Conduct environmental education for elementary and junior high school students.	○	We held summer vacation environmental classes (July 25, 100 participants) and operated the ITOCHU Pavilion Eco Shop at Kidzania Tokyo (experienced by approximately 21,782 participants a year).
Harmonious Coexistence with Society	Coordinate with regional companies and local governments on environmental conservation activities (Promote at least once such initiative at each branch)	○	We conducted events, volunteer activities and other initiatives in coordination with local companies and governments on a per-branch basis.
Promotion of Educational Activities	Conduct and promote learning through seminars, tours, basic environmental education and education for personnel with specific duties for employees of ITOCHU Corporation and Group companies.	○	We provided basic environmental education (May to July, 3,960 participants) and education for personnel with specific duties (May to March, 400 participants). Thesustainability seminar titled "Human rights seminar?" was held on March 1, with 250 people attending.
Promotion of Educational Activities	Conduct training sessions and promote learning regarding Waste Management and Public Cleansing Law and Soil Contamination Countermeasures Act for employees of ITOCHU Corporation and Group companies.	○	We held a sustainability e-learning program (October - November 2017, 4,853 participants) and Environmental and Social Risk Response Seminar (including the Soil Contamination Countermeasures Act) (July 12, 250 participants).

○：Implemented △：Partially ×：Not yet implemented

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