Prevention of Pollution and Resource Circulation

Action Plan

Risks	Opportunities
Negative impacts on the natural environment including those related to resource circulation. Deterioration of relations with local communities and subsequent loss of social license to operate. Industry exhaustion due to increased price competition.	Increased resource demand due to population growth and enhanced living standards in emerging economies. Creation of customer trust and new business opportunities through stable and sustainable supply chain practices.

Materiality	Issues to Address	Business Area	Commitment	Specific Approach	Performance Indicators	Degree of Progress
Textile Company
Ensure stable procurement and supply	Reducing our environmental burden in manufacturing processes	Textile products in general	We will promote the building of value chains starting from raw materials focused on sustainable materials.	Promote the RENU project aiming to realize a circular economy in textile industry. Aim to further enhance and expand the handling of sustainable materials.	Contribute to fostering of environmental awareness and reducing our environmental burden by promoting the RENU project and further enhancing and expanding the handling of sustainable materials.	Several well-known brands have adopted the recycled materials of the RENU project we started in FYE 2020. Various media organizations also featured the project. We have contributed to fostering environmental awareness through this.
Machinery Company
Ensure stable procurement and supply	Improving water and sanitation infrastructures	Water and environmental projects	We will contribute to improve the sanitary conditions, the development of economic activities, and the protection of the global environment through the appropriate treatment and effective use of water and waste.	Expand water and environment projects to promote the appropriate use and treatment of water and the effective utilization of resources, and reduce the burden on the environment.	Expand and diversify the investment portfolio in the water and environment field.	<Environmental Field> We operate four municipal solid waste incineration and power generation plants(waste to energy plant) in the U.K. We are currently constructing a municipal solid waste incineration and power generation plant(waste to energy plant) and a new leachate-controlled landfill in Serbia. We aim to start full commercial operations in 2022. We acquired a 20% stake in Environment Development Company Ltd. (EDCO) in November 2020. EDCO is providing integrated hazardous waste management services in Jubail Industrial City in Saudi Arabia. We are aiming to enhance the functions of our efforts that to capture strong demand for waste management services in light of intensifying environmental regulations in each the industrial sector and the growing awareness of ESG and SDGs more generally in the same way as in the water field.
Energy & Chemicals Company
Ensure stable procurement and supply	Efforts leading to solutions to social problems	Plastic-related environmental response	We will contribute to solving social problems (e.g., marine plastics and waste plastics) that urgently require measures with a plastic-related environmental response.	Supply environmental materials and establish a recycling/reuse program in collaboration with brand owners.	Build a recycling-oriented-model by enhancing our handling of environmental materials and establishing a recycling/reuse program.	We announced plans to jointly market bioplastics with Borealis AG. (September 2020). We are currently developing this for adoption with brand owners and retailers. We have developed garbage bags and shopping baskets made with marine plastics (November 2020 and February 2021). We are continuing to promote project development and expansion of efforts. We announced development of recycling technology for multi-layer film packing materials in collaboration with Toyo Ink Group (December 2020). We are currently discussing future deployment with brand owners.

Policy and Basic Concept

Prevention of Pollution

ITOCHU's Environmental Policy states in item (3) that within its business activities, ITOCHU shall prevent and reduce environmental pollution caused by chemical substances and oils, reduce emissions of air pollutants, and reduce and properly process hazardous waste and wastewater. In addition, as stipulated in item (1) of our Environmental Policy, ITOCHU will fulfil its responsibility by enacting the following statement: We shall comply with international declarations, agreements, and treaties, as well as with the laws and regulations of the countries and regions in which we operate. We shall also comply with any other agreements that we have consented to.

Resource Circulation

"Ensure Stable Procurement and Supply" was one of the important ESG issues identified as a material sustainability topic that ITOCHU identified in its April 2018 assessment. As per item (4) of our Environmental Policy, ITOCHU "contributes to the formation of a circular society by promoting the sustainable use of resources (such as fossil fuels, minerals, food, animals and plants), resource conservation measures, and waste reduction and recycling across our business investments and the supply chain of our products and services," pointing to our commitment to promote resource efficiency in accordance with our various business operations.

Ensuring Legal Compliance by the Chemicals Division

The chemicals handled in the Chemicals Division are those that have potentially serious impacts on human health and the natural environment and have become subject to various laws and regulations that aim to ensure appropriate handling across the supply chain – including during manufacturing, sales, transportation, and storage. Furthermore, the appropriate management of chemicals is crucial from a business perspective for our Chemicals Division as well, as violations and cases of non-compliance can impact the regulatory approvals we require on certain products.
There is an international trend to minimize risks at every level of the entire supply chain of chemicals. Against this background, both advanced nations and developing nations have started to introduce new regulations and to make large-scale revisions to existing regulations. Consequently, the regulatory environment in the handling of chemicals is expected to become ever stricter in the future.
With awareness of the above, we recognize the importance of compliance with laws and ordinances in addition to knowledge of products and the industry as a company that handles chemicals. Our basic policy is that each individual should engage in business in accordance with the requirements of laws and ordinances upon correctly understanding the laws and regulations concerning the products that they are in charge of handling.

Targets

ITOCHU sets qualitative management targets and qualitative performance targets to promote better practices in pollution prevention and resource efficiency. The environmental targets and achievements in FYE 2021 are as follows.

Qualitative Targets

Item		Boundary	Target	FYE 2021 Results and Evaluation
Prevention of Environmental Pollution and Compliance with Laws and Regulations	Risk Assessment for Investment and Financing Projects	ITOCHU Corporation	Perform pre-investment/financing assessments based on the ESG Checklist, which includes environmental assessment criteria.	Properly implemented
	Raising Management Levels through Auditing	ITOCHU Group	Conduct internal audits on environmental management systems to ensure compliance, improved environmental efficiency, and better overall management.	Properly implemented
	On-Site investigations of Group Companies	ITOCHU Group	Select appropriate Group companies and conduct on-site environmental management investigations for them.	Properly implemented (Visited on the web)
Promotion of Awareness Activities	Raising Awareness of Laws and Regulations	ITOCHU Group	Increase internal awareness on the Waste Management and Public Cleansing Act and the Soil Contamination Countermeasures Act, as well as other relevant regulatory developments by providing learning opportunities such as seminars and courses. We will also monitor and review participation/uptake rates of these trainings in relevant segments of the company.	Properly implemented
Resource Conservation, Promotion of Resource Circulation, and Monitoring of performance	Office Waste Reduction	ITOCHU Corporation	Reduce waste and promote recycling in office activities based on ISO 14000.	Properly implemented
	Paper Consumption Reduction Target	ITOCHU Corporation	Reduce paper consumption by raising awareness of our targets internally.	Properly implemented
	Enhancement of Data Collection	ITOCHU Corporation	Gain a better understanding of our performance by expanding the scope of the environmental performance data that we collect from group companies in Japan and overseas offices.	Properly implemented

Quantitative Targets

Item		Boundary	Target Period	Target	Progress in FYE 2021 Against Targets	Assessment
Prevention of Pollution	Serious Environmental Accident	ITOCHU Corporation^*	Every Fiscal Year	Zero Serious Environmental Accident	Zero	Achieved
Resource Circulation・Waste Discarded	Volume of Waste Discarded	Tokyo Headquarters	March 2025	6% Reduction Compared to FYE 2019	32% Reduction Compared to FYE 2019	Achieved
Resource Circulation・Waste Discarded	Recycling Rate	Tokyo Headquarters	March 2025	90%	93%	Achieved
Resource Conservation	Paper Consumption	ITOCHU Corporation	March 2025	3% Reduction Compared to FYE 2019	38% Reduction Compared to FYE 2019	Achieved

Including domestic and overseas branches and Group companies subject to compliance reporting

Structures and Systems

Due Diligence Regarding Pollution Prevention and Resource Circulation in Business Investment Projects

We assess in advance the impact on the market, society and the environment by business investment projects in Japan and overseas engaged in by ITOCHU and our Japanese subsidiaries. We do this with the ESG Checklist for Investment, which includes assessment criteria to evaluate performance on pollution prevention and resource circulation among potential investments. We make requests to external specialist organizations to conduct investigations in advance for projects requiring a professional point of view. The project is then only undertaken upon confirming that there are no problems in the results of those investigations.

ITOCHU considers ensuring stable procurement and supply to be a material issue. We work to effectively utilize and to ensure stable procurement and supply of resources according to demand in each country with consideration for the environment (e.g., biodiversity). In doing this, we are aiming for a recycling-oriented society.

Compliance with Laws and Regulations in the Divisions Handling Chemical Substances

At ITOCHU, the Chemicals Division has cross-functional oversight of our management of chemical substances. This includes oversight of the sales departments that handle chemical substances, which sit within the Chemicals Division, as well as relevant subsidiaries that handle chemical substances. In addition, the Chemicals Division has oversight of any sales divisions and subsidiaries outside of their direct control if chemical substances are used.
We strive to comply with laws and regulations through a management method based on a combination of thorough inquiries to specialized external consulting organizations and the use of a centralized management system to track environmental legal compliance. The management system was developed internally in 2016 and allows us to confirm and record applicable laws and measures at the chemical substance level for each product. We also provide training and educational opportunities to relevant sales staffs, supplemented by e-learning materials and handbooks that summarize the main points of relevant laws.
The external consulting organization that we currently employ for chemical substance management is Techno Hill Co., Ltd. (Headquartered in Chuo-ku, Tokyo; Representative Director: Kazuyuki Suzuki). Techno Hill has comprehensive knowledge regarding the field of chemical substances and provides us with informed advice on management systems, applicable laws and regulations for each product, and general trends movements in the industry.

Management Structure for Emergency Response and Accident Response

ITOCHU responds as below in accordance with our accident and emergency response regulations.
If an accident occurs during the handling or storage of toxic or hazardous substances, we respond as follows in line with the Pharmaceutical Key Toxic and Hazardous Substance Risk Prevention Procedures Manual.

We will make reports as necessary according to the emergency contact network in the above manual. In addition, we will take prompt action to limit the risks caused by toxic and hazardous substances.
In the event of splashing, leaking, outflow, seepage or penetration underground, we will immediately notify the health care center, police station or fire department to that effect when there is a fear of a risk to the health of an unspecified or large number of people. At the same time, we will take measures to prevent risks to health.

Initiatives

RENU ® Project Aims to Realize Circular Economy

In the spring of 2019, we launched a project called "the RENU ^® project", which aims to address the issue of excessive waste in the fashion industry and realize circular economy. As its first product, we are developing recycled polyester made from textiles such as waste leftover fabric and used clothing. We will contribute to realize circular economy by developing this project through the entire supply chain of the fashion industry from raw materials to consumers.

RENU ^® project website

Environmental Impact

The environmental impact of handling recycled polyester at RENU ^® project in FYE 2021 is as follows.

Feedstock equivalent to T-shirt	3.5 million pieces of T-shirts
Reduced CO₂	521 tons
Reduced Water	875 kilolitre

ITOCHU Announces Development of Garbage Bag Made From Marine Debris

ITOCHU Corporation and Sanipak Company Of Japan, Ltd., our subsidiary and Japan's largest garbage bag maker developed the world's first^*1 garbage bag including raw materials made from marine debris.^*2 ITOCHU believes that marine debris is a significant social challenge and has been engaging in material recycling businesses recycling marine debris and turning it into products that are commercialized. In cooperation with Tsushima city, we have succeeded in the recycling. In addition, Sanipak Japan, leveraging the knowledge and technology it possesses as Japan's largest garbage bag maker, has developed the world's first*1 garbage bag made in part with raw materials made from marine debris.
ITOCHU and Sanipak Japan plan to provide some of these new garbage bags free of charge to Tsushima city and other areas that need garbage cleaning activities on their coastlines, and will establish a recycling economy-oriented business model to resolve the problem of marine debris that society faces.

According to research by ITOCHU
Debris that has already flowed into the marine environment

Introduction of Shopping Baskets Made Using Marine Plastic Waste as the Raw Material in FamilyMart Stores in Tsushima in Nagasaki Prefecture and Elsewhere

ITOCHU has developed shopping baskets made using marine plastic waste washed ashore in Tsushima in Nagasaki Prefecture as part of the raw materials together with FamilyMart Co., Ltd. and TerraCycle Japan GK. We have introduced these shopping baskets into a total of four FamilyMart stores in Tsushima and Iki in Nagasaki Prefecture in February 2021 to promote community-based SDGs activities.

Waste Reduction Initiatives

Under our environmental management system, ITOCHU adheres to all applicable laws and regulations (Waste Management and Public Cleansing Act, Act on the Promotion of Sorted Collection and Recycling of Containers and Packaging, Food Recycling Law, etc.) and strives to reduce waste generated through its business activities, as well as maintain a high recycling rate by committing to thorough waste sorting. In recent years, in order to further promote waste reduction initiatives within the company, a small number of employees have been given the opportunity to experience sorting.

Food Recycling

ITOCHU makes regular reports on the amount of food we discard and the amount we recycle in Japan to comply with the Food Recycling Law. We are striving to suppress the generation of waste and to promote recycling (e.g. conversion into feed) in line with the reference rate (recycling rate target).

Food Recycling Rate
		FYE 2018	FYE 2019	FYE 2020	FYE 2021
Quantity recycled	Waste volume generated (Unit: t)	1,816.9	869.0	992.8	1,125.8
	Amount of recycling (Unit: t)	620.6	454.9	744.4	775.5
	Waste volume (Unit: t)	1,196.3	414.1	248.4	350.3
Target (recycling rate target by individual food related operator)	Reference rate	76.8%	77.8%	78.8%	79.8%
Percentage recycled	Recycling rate	34.2%	52.3%	75.1%	68.9%

In FYE 2018, 1,001.0 tons were discarded due to a warehouse fire.
FYE 2022 recycling rate target: 80.0％

Number One Trader in the World for the Cement Substitute of Blast Furnace Slag

Blast furnace slag is a by-product of the steelmaking process. Mixing and using it with cement as a cement substitute makes it possible to save natural resources (e.g., limestone – the raw material of cement). It is an environmentally friendly product that can reduce the CO₂ generated during manufacturing by about 40%* compared with when making concrete only with cement.
It is highly durable against seawater and the steel material in it is less likely to suffer corrosion over a long period of time. Therefore, it is widely used in large civil engineering projects at ports.
We have been selling blast furnace slag produced in Japan and overseas in around 10 countries since about 20 years ago. We handle of volume of blast furnace slag that makes us the number one trader in the world for it. In the future, value for blast furnace slag will be expected to rise affected by trend of decarbonization around the world. Therefore, we moreover focus to build continuous and stable distribution channels and consider investing and participating in the slag business.

* Calculated at a 55:45 ratio for cement and blast furnace slag

Cooperation with Stakeholders

Compliance with the Containers and Packaging Recycling Law

ITOCHU understands our own manufacturing and import volume of containers and packaging every year to recycle containers and packaging. We then pay a recycling fee to the Japan Containers and Packaging Recycling Association. The aim of this is to contribute to promoting the formation of a recycling-orientated society as a specified business operator prescribed by the Containers and Packaging Recycling Law.

The recycling fee we pay every year is as below.

(Unit:Yen)

Fiscal Year	Recycling Fee / Contribution Fee	Glass Bottles			PET Bottles	Paper Containers and Packaging	Plastic Containers and Packaging	Total
Fiscal Year	Recycling Fee / Contribution Fee	Colorless	Brown	Other Colors	PET Bottles	Paper Containers and Packaging	Plastic Containers and Packaging	Total
FYE 2019	Recycling	750,030	-	-	-	9,045	1,197,091	1,956,166
	Contribution	0	-	-	-	27	0	27
	Total amount	750,030	-	-	-	9,072	1,197,091	1,956,193
FYE 2018	Recycling	704,782				29,327	1,057,941	1,792,050
	Contribution	9,344				102		9,446
	Total amount	714,126				29,429	1,057,941	1,801,496
FYE 2017	Recycling	814,414			708	18,306	631,798	1,465,226
	Contribution	0			68	168	47,052	47,288
	Total amount	814,414			776	18,474	678,850	1,512,514
FYE 2016	Recycling	770,179		158,548		30,825	292,375	1,251,927
	Contribution	0		0		315	13,395	13,710
	Total amount	770,179		158,548		31,140	305,770	1,265,637

Initiative Participation (Activities Through Business and Industry Groups)

We are participating in the Global Environment Subcommittee of the Committee on Environment and Safety – an environment and energy related committee of the Japan Business Federation (Keidanren). We are working to realize an environmental policy compatible with the economy (e.g., through promotion of voluntary action plans, and measures for global warming, waste and recycling and environmental risks including water management). We are also participating in the Global Environment Committee of the Japan Foreign Trade Council. We are striving to build a low-carbon society, construct a recycling-orientated society, and to support environmental related laws and regulations. The goals set by the Global Environment Committee are as follows.

Reduction Target for FYE 2026 in Domestic Business Activities (Trading Company Industry)

[Disposal Amount] reduce 82% compared to FYE 2001
[Generation Amount] reduce 62% compared to FYE 2001
[Recycling Rate] 83% or more

Promotion of Resource Recycling in Collaboration with Other Companies

ITOCHU is working to save resources and promote recycling by reducing fossil fuel consumption in collaboration with companies with advanced technologies in Japan and overseas regarding plastics and chemical fiber materials. ITOCHU is working to save resources and promote recycling by reducing fossil fuel consumption in collaboration with companies with advanced technologies in Japan and overseas regarding plastics and chemical fiber materials.

Collaboration to Enable Uptake of Renewable Polypropylene in the Japanese Market

Japan has formulated a basic plan to introduce approximately two million tons of renewable plastic products by 2030 as a countermeasure against climate change. Polypropylene is a principal raw material characterized by its high strength and high heat resistance. It is used extensively, including in food containers, daily commodities and automotive parts. Meanwhile, it has been considered difficult to commercialize polypropylene production from renewable materials due to the many technical difficulties in the production.
Under these circumstances, ITOCHU, Borealis AG and Borouge Pte Ltd. have agreed on the strategic intent to jointly evaluate how to enable uptake of renewable polypropylene (PP) in the Japanese market. Since its foundation in 1994, Borealis has been in business in at least 120 countries as a world-class plastic and resin manufacturer. In March 2020, it embarked on the commercial production of renewable PP and is now working to expand sales in Europe and around the world. ITOCHU targets to commercially launch Japan's first food containers and packaging materials made of Renewable PP as well as other sanitary goods, miscellaneous daily goods, cosmetic containers, office supplies, home electric appliances, automotive parts and other items in many different fields.

The Cooperative Development of Material Recycling Technology for Multi-layer Film Packaging

ITOCHU Corporation has entered into an agreement for cooperative development of material recycling technology for multi-layer film packaging with Toyo Ink SC Holdings Co., Ltd.

Recently, trends related to the problem of disposable plastic have attracted attention globally, and responses are being hurried. In particular, food packaging, refill pouches for detergent and other sanitary products, and film packaging, known as flexible packaging, feature a multi-layer structure that uses many materials to ensure the required performance, which differs based on use. This includes printed ink and adhesives between the polyolefin or polyester film. A major problem in recycling these materials is the difficulty in separating the layers.

In 2019, Toyo Ink Group developed a technology to separate the ink, adhesive, etc. that make up the multi-layer film or packaging in cooperation with the world's largest environmental solutions company. A demonstration pilot plant will be built in 2021, and, moving forward with LCA (Life Cycle Assessment) appraisals, cost simulations, and other verifications. Toyo Ink Group plans to start a post-industrial recycling business in 2022, and also plans to start a post-industrial and post-consumer recycling business in commercial plants by 2025.

In addition to acquiring exclusive marketing rights in Japan and first refusal rights in Asia and Europe related to major product materials related to this technology, ITOCHU will widely provide environmental solutions to food and consumer products company, retailers, brand owners, and more through requests to build structures for material recycling using this technology and to design recyclable, environmentally-friendly packaging.

Through this initiative, both companies will make currently un-recyclable multi-layer film packaging into a recyclable product, aiming for a more than 40% material recycling rate in Japan and abroad.

The Recovery of Nylon Waste to ECONYL® Nylon Products

ITOCHU Corporation and Aquafil S.p.A. have agreed on their strategic partnership to promote and expand the businesses of circular nylon production.
Nylon is used for textiles and plastic materials made through petrochemistry in a range of fields such as fashion, carpeting, fishing, food packaging, and automobiles. However, many products use nylon blended with other materials in a compound form, making it a difficult material to be recycled.
In 2011 Aquafil created its ECONYL^® Regeneration System that turns recovered nylon waste such as fishing nets, carpets and post-industrial waste back to caprolactam (CPL), a crude raw material. Through its proprietary chemical recycling technology, Aquafil eliminates impurities completely, to achieve regenerated nylon product having the same features of the virgin quality materials. ECONYL^® nylon is made completely from waste, which enables up to 90% CO₂ reduction compared to conventional nylon made from petroleum.
ITOCHU will leverage on its Group's diverse network and expand sales for applications in fashion, carpeting, automobiles, and packaging materials. Moreover, ITOCHU plans to enforce Aquafil's nylon waste recovery scheme using its existing sales chain and will also implement the Partnership from the perspective of the stable supply of raw materials to Aquafil. Through its collaboration from the recovery of waste to the sale of Aquafil's products, ITOCHU aims to expand the businesses of nylon circularity.

The License Business of Polyester Chemical Recycling Technology

ITOCHU Corporation, Teijin Limited, and JGC Holdings Corporation have signed a joint agreement on the license business of polyester chemical recycling technology from discarded polyester textile products.
This agreement will bring together Teijin's proprietary chemical recycling technology deployed in the manufacture of polyester, the expertise of JGC derived from its global engineering business, and ITOCHU's extensive network of textile industry players. The three companies intend to establish a system for collecting discarded polyester fiber products and cost-effective chemical recycling technology for using such products as raw materials.
Going forward, ITOCHU, Teijin and JGC aim to expand the range of effective solutions for the mass disposal of used textile products.

Performance Data

Performance Data on the ITOCHU Group's pollution prevention and resource circulation is compiled according to the Management Control Standards (the control approach).

Pollution Prevention

Emissions of NOx, SOx, and VOC (Air Pollutants)

(Unit: t)

		FYE 2018	FYE 2019	FYE 2020	FYE 2021
Grand total of ITOCHU Group	NOx (Nitrogen Oxides)	1,821	1,958	13,091	11,273
	SOx (Sulfur Oxides)	425	739	1,154	1,248
	VOC (Volatile Organic Compounds)	500	524	520	529

Resource Circulation

Waste Volume and Waste Recycling Rate

The table below gives the waste volume generated in the Tokyo Headquarters, Osaka headquarters, branches and business facilities in Japan group companies in Japan, overseas offices and overseas group companies from FYE 2017 to FYE 2021. ITOCHU promotes the separation of garbage. Our Tokyo Headquarters has set a single year target of reducing its waste volume by 6% compared with FYE 2019 levels. We are working to reduce our waste volume through initiatives such as 2-in-1 and double-sided printing. The Tokyo Headquarters won the Minato Ward Waste Reducing Business Operator Commendation in FYE 2015.

			FYE 2017	FYE 2018	FYE 2019	FYE 2020	FYE 2021
Tokyo headquarters★	Waste volume (Unit: t)		674	698	680	767	465
		Waste non-recycled	38	43	48	44	31
		Waste recycled	636	655	632	723	434
	Recycling rate (Unit: %)		94.3	93.8	92.9	94.3	93.4
Osaka headquarters, branches and business facilities in Japan	Waste volume (Unit: t)		-	-	-	290	258
Group companies in Japan	Waste volume (Unit: t)		21,947	177,526	89,210	149,620	248,465
Overseas offices	Waste volume (Unit: t)		33	5	17	9	41
Overseas group companies	Waste volume (Unit: t)		10,016	141,392	364,476	461,018	504,085
Grand total of ITOCHU Group	Waste volume (Unit: t)		32,670	319,621	454,383	611,751	753,315
		Waste non-recycled	-	-	-	449,030	583,599
		Waste recycled	-	-	-	162,721	169,716
	Recycling rate (Unit: %)		-	-	-	26	23

The waste volume of the Tokyo Headquarters includes the amount sold as valuables.
Due to the increase in the number of companies subject to aggregation, the figure for FYE 2019 has increased significantly compared to FYE 2018.

Hazardous Waste

(Unit: t)

	FYE 2018	FYE 2019	FYE 2020	FYE 2021
Grand total of ITOCHU	1.5	1.4	1.26	1.5
Grand total of ITOCHU Group	-	-	749	45,754

Waste Disposal Cost

(Unit: 1,000 yen)

		FYE 2018	FYE 2019	FYE 2020	FYE 2021
Tokyo headquarters	Payment to waste disposal company	16,330	10,448	11,998	9,067

Paper Consumption

The table below gives our paper consumption for FYE 2017 to FYE 2021 (This is for the total of all ITOCHU bases in Japan). ITOCHU has set a target of reducing its paper consumption by 3% compared with FYE 2019 levels. We are working on reducing our paper consumption by going paperless and ending the use of unnecessary paper.

(Unit: Thousand sheets (A4 equivalent))

		FYE 2017	FYE 2018	FYE 2019	FYE 2020	FYE 2021
ITOCHU Corporation	Copy paper consumption	34,940	32,949	30,711	26,913	19,167

E-learning Concerning Compliance with Chemicals-related Laws and Regulations

Legal Compliance Status

There were no major violations (e.g., license suspensions)

Results of E-learning on Laws and Regulations Related to Chemical Substances

We hold chemicals related law and regulation e-learning every year
Chemicals Division alone (participants: 117 / period: October 19 to November 13, 2020)
We also give information on the same e-learning to the Chemicals Division related Group companies, each division company in ITOCHU other than the Energy & Chemicals Company and also its related Group companies

Handbook on Chemical-related Regulations

The first edition was issued in 2012, and a revised edition was released in 2016 and is currently being distributed. There are 32 laws and regulations covered in this handbook, each of which outlines important aspects of compliance requirements. The purpose of this handbook is to educate our employees, especially new recruits and sales personnel, on the laws and regulations specific to the chemical industry.

Scope of Aggregation

○:in scope of aggregation

		Waste Volume and Recycling Rate	Hazardous Waste	Waste Disposal Cost	Emissions of NOx, SOx, and VOC	Paper Consumption
Tokyo headquarters		○	○	○	○	○
Osaka headquarters		○	－	－	○	－
Branches and business facilities in Japan^*1	The number of offices including domestic branches: FYE 2017: 13, FYE 2018: 11, FYE 2019: 13, FYE 2020: 12, FYE 2021: 11	○	○	－	○	－
Group companies in Japan^*2	The number of target companies: FYE 2017: 65, FYE 2018: 208, FYE 2019: 220, FYE 2020: 238, FYE 2021: 232	○	○	－	○	－
Overseas offices	The number of overseas offices: FYE 2017: 16, FYE 2018: 15, FYE 2019: 30, FYE 2020: 29, FYE 2021: 49	○	○	－	○	－
Overseas group companies^*2	The number of target companies: FYE 2017: 46, FYE 2018: 299, FYE 2019: 282, FYE 2020: 286, FYE 2021: 274	○	○	－	○	－
Exclusion	Companies expected to be sold within the next five years held for investment management purposes are not included in the scope of the data. Moreover, non-manufacturing site offices with 10 or fewer employees are quantitatively insignificant. Accordingly, they are not included in the scope of the data.

The other business facilities cover business facilities owned or leased by ITOCHU (except facilities for residences).
The group companies in Japan and overseas cover consolidated subsidiaries directly invested in by ITOCHU (as of March 31, 2017) for FYE 2017. All consolidated subsidiaries are covered since FYE 2018 (coverage 100%).

Independent Assurance

Independent Assurance Report (2.3MB): The data below marked with a ★ is independently assured through KPMG AZSA Sustainability Co., Ltd. This assurance conforms to the International Standard on Assurance Engagements (ISAE) 3000 and 3410 of the International Auditing and Assurance Standards Board (IAASB).
★: Total electricity consumption and total CO₂ emissions attributable to the domestic bases of ITOCHU corporation (business facilities of the Tokyo Headquarters, the Osaka Headquarters, branches in Japan, domestic branches and other business facilities), and the waste volume, waste non-recycled, waste recycled, recycling rate, water consumption, gray water production volume and wastewater volume for the Tokyo Headquarters.