• At JOI’X CORPORATION, thanks to the project to achieve the optimal inventory volume in FYE 2024, we have confirmed a decrease in the inventory quantity compared to last year for the main brand, Paul Smith Men’s. The decrease was 7.8% at the end of the Spring/Summer 2023 season and 4.5% in the same year’s Fall/Winter season (based on the end of January).
• SANKEI CO., LTD. has built a database that centralizes product information for thousands of clothing accessories. It allows related parties to instantly access, share, and update product information, and promote operational efficiency. In the near future, it will be possible to link data with enterprise systems and collaborate with apparel customers that digitalized their operations.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• To contribute to decarbonization in the shipping sector, we are developing an “integrated project” aimed at: (i) developing ammonia-fueled vessels, (ii) owning and operating ammonia-fueled vessels, (iii) establishing fuel supply chains, and (iv) procuring/producing clean ammonia.
• As a pilot initiative, discussions are underway with stakeholders for the development of the first ammonia-fueled vessels, initially targeting large bulk carriers with a projected completion date of 2027. Concurrently, discussions have commenced for container ships and car carriers to adopt ammonia as their primary fuel.
• In addition, we are actively progressing the development of ammonia bunkering facilities in Singapore, followed by Algeciras in Spain and the Suez Canal in Egypt.
• In March 2024, we secured support from the Green Innovation Fund for the development of various technologies related to ammonia handling, in collaboration with Fuji Electronic.
• We have established an international framework for conducting a “Joint Study” on the risk assessment of ammonia fuel and safety standards, and have also formed a “Container Ship Joint Study.” These frameworks were concluded as of March 2024 to transition into the commercialization phase.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• As a partner in “EVision,” Isuzu’s total solution program for EVs, we have expanded our efforts to promote commercial EVs and have actively provided consultations to users encountering challenges related to EV introduction.
• In November 2022, we commenced demonstration and operations with a prototype developed and manufactured as part of the “Combination of developing battery-exchangeable EVs and utilizing renewable energy Sector coupling demonstration project,” commissioned by the Ministry of the Environment. By the end of December 2023, we had achieved a cumulative delivery distance exceeding 20,000km.

• Climate Change Opportunities
• Capital Introduction
• Innovation

• Resource recycling business
• Mining business
• Environmental business
• Materials-related business

• We will realize stable resource supply as our social mission and responsibility while fully considering its environmental impact.
• We will contribute to climate change issues through businesses that help to reduce greenhouse gases (e.g., lighter-weight vehicles and electric vehicles (EVs)) and the stable supply of essential materials.

• Take the lead in developing recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g. steel and power).
• Promote businesses to contribute to the stable supply of nickel, PGM and other materials necessary in the manufacture and supply of hydrogen, green materials and energy, and storage batteries.
• Continue to be involved in the development of technologies that contribute to the reduction of greenhouse gas emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Promote initiatives to completely withdraw from thermal coal mine interests while continuing to realize stable resource supply as our social mission and responsibility through trading in regards to our coal business.
• Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Promote recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote examination toward technological development and commercialization to contribute to a reduction in greenhouse gas emissions, including hydrogen, green material and energy production, and carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Strive to withdraw from thermal coal mine interests.
• Realize initiatives in businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Together with JFE Steel, Emirates Steel Arkan, and others, we have promoted detailed feasibility studies for the establishment of a supply chain of ferrous raw material for green ironmaking with low carbon emission, which contribute to the decarbonization of the steel industry.
• We are contributing to the effective utilization of limited resources and the supply of environmental materials by promoting 3R+W (reduce / reuse / recycle + waste management). Specifically, we are steadily promoting initiatives in venous industries. This includes the reuse and recycling of store facilities and fixtures, the expansion and increase in sophistication of metal scrap and waste treatment through the use of a nationwide network of recycling companies, and strengthening of cooperation with the TRE HOLDINGS CORPORATION general recycling company we invested in FYE 2020.
• We agreed with Nel ASA (Norway), who is the world’s largest manufacturer of electrolysers that are essential for green hydrogen production, to create a strategic partnership in the hydrogen industry. We and Nel are jointly exploring hydrogen business opportunities.
• We have invested in Everfuel (Denmark), who conducts the design, EPC, and operation of green hydrogen production facilities, distribution assets, and operation of hydrogen stations by using water electrolysis equipment, as well as the sale of hydrogen. In collaboration with Everfuel, we are promoting the construction of a green hydrogen value chain for local production - consumption in Europe.
• We are promoting the Platreef project and others in the PGM (platinum group metals)/nickel business where demand is expected to grow significantly due to the worldwide spread of electric vehicles and fuel cell vehicles, and also expanding trade activities of such materials.
• We continue to conduct a commercialization survey of a by-product hydrogen project in northern Kyushu with partners for the social implementation of hydrogen.
• We have an investment into Australia-based MCi, who possesses mineral carbonation technologies. We are promoting the technology for the Japanese market. In July 2022, we signed an MOU with TAISEI CORPORATION to verify the use of this calcium carbonate as raw materials for concrete.
• Together with HIF Global, JFE Steel, and Mitsui O.S.K. Lines, Ltd., we agreed to jointly conduct a wide-ranging feasibility study covering on establishment of a comprehensive supply chain for synthetic fuel (e-fuel), to transport CO₂ from Japan to Australia to produce e-fuel.
• Agreement was signed with KOKO Networks, a Climate Technology Company Operating in Kenya, to support the generation of high quality carbon credits.
• In order to expand emissions credits trading, we formed a business partnership with CF Partners, a UK-based company engaging in the sale of emissions credits in Europe.
• We decided to withdraw from thermal coal mine interests with a perspective of strengthening contribution and initiatives to SDGs. We already divested our Drummond mine interests in Colombia that had accounted for the majority of the ITOCHU’s thermal coal interests and also divested Ravensworth North coal mine interests in Australia producing both thermal and coking coal.
• Steadily promoted aluminum trade business that contributes to automobile weight reduction and electrification. We have traded approx. 500,000 tons in FYE 2024, and promoted sales of environmentally friendly raw materials for aluminum.

• Mining business
• Resource-related business
• Logistics business

• Promote an increase in efficiency of mine operations and facility management utilizing digital transformation.
• Promote conversion to the automatic operation of mining equipments such as underground mining equipments and dump trucks.

• We signed a memorandum to collaborate in decarbonization and digital transformation with Companhia Siderúrgica Naciona [CSN] and started demonstration experiment with the aim of contributing to increased safety, operational efficiency, and decarbonization at the iron ore mine (Casa de Pedra [CdP] Mine) that we have invested and CSN steel work.
• Since FYE 2023, we have been operating GE Digital’s operation and asset management software at the CdP Mine in full-scale with improving the plant’s actual yield rate. We are also considering to apply of the system at other mines and other regions. We also agreed to collaborate on decarbonization of the CSN Group mainly at the CdP Mine with Shell, a major resource company.

• Developed 6 new vendors to provide stable solutions and further improve services. Provide services and solutions that contribute to improving work efficiency and ensuring information security.
• Aiming to further expand business to contribute to the realization of a safe, secure, and convenient social infrastructure.

• Tyr Energy Development Renewables, LLC (“TED”), established in 2022, is currently developing 26 assets, approximately 4 GW of solar power plants.
• NAES Corporation, another wholly-owned subsidiary of ITOCHU and the world’s largest independent provider of O&M services for power plants, extends its expertise to asset management and maintenance services in the renewable energy sector. Currently, NAES oversees approximately 1,400 solar power plants with a capacity of 2GW, as well as wind power plants with a capacity of 1.1GW.
• In June 2023, we launched a fund dedicated to investing in renewable energy generation assets across North America.
• The renewable energy ratio, calculated on an equity interest basis, stands at 17.1% as of March 2024.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• To contribute to decarbonization in the shipping sector, we are developing an “integrated project” aimed at: (i) developing ammonia-fueled vessels, (ii) owning and operating ammonia-fueled vessels, (iii) establishing fuel supply chains, and (iv) procuring/producing clean ammonia.
• As a pilot initiative, discussions are underway with stakeholders for the development of the first ammonia-fueled vessels, initially targeting large bulk carriers with a projected completion date of 2027. Concurrently, discussions have commenced for container ships and car carriers to adopt ammonia as their primary fuel.
• In addition, we are actively progressing the development of ammonia bunkering facilities in Singapore, followed by Algeciras in Spain and the Suez Canal in Egypt.
• In March 2024, we secured support from the Green Innovation Fund for the development of various technologies related to ammonia handling, in collaboration with Fuji Electronic.
• We have established an international framework for conducting a “Joint Study” on the risk assessment of ammonia fuel and safety standards, and have also formed a “Container Ship Joint Study.” These frameworks were concluded as of March 2024 to transition into the commercialization phase.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• As a partner in “EVision,” Isuzu’s total solution program for EVs, we have expanded our efforts to promote commercial EVs and have actively provided consultations to users encountering challenges related to EV introduction.
• In November 2022, we commenced demonstration and operations with a prototype developed and manufactured as part of the “Combination of developing battery-exchangeable EVs and utilizing renewable energy Sector coupling demonstration project,” commissioned by the Ministry of the Environment. By the end of December 2023, we had achieved a cumulative delivery distance exceeding 20,000km.

• Water Resources
• Pollution Prevention and Resource Recycling

Water Field

• We are promoting seawater desalination business in Australia and Oman.

Environmental Field

• UK: Our operations encompass four municipal solid waste incineration and power generation facilities (waste-to-energy plants), processing 1.3 million tons of waste annually. This accounts for 10% of the UK’s waste incineration market and provides electricity for 160,000 British households.
• Serbia: We have initiated an integrated waste management business, including an Energy-from-Waste (EfW) project in the City of Belgrade. The project anticipates a reduction of approximately 210,000 tons of greenhouse gas emissions and has received Certification of Carbon Credit from the Gold Standard.
• UAE: The first Energy-from-Waste (EfW) project in Dubai, we are advancing the construction of the world’s largest EfW plants. These facilities are designed to process half of the Dubai’s municipal solid waste annually (1.9 million tons).
• Saudi Arabia: We are actively engaged in integrated hazardous waste management services in Jubail Industrial City.

• Climate Change Opportunities
• Capital Introduction
• Innovation

• Resource recycling business
• Mining business
• Environmental business
• Materials-related business

• We will realize stable resource supply as our social mission and responsibility while fully considering its environmental impact.
• We will contribute to climate change issues through businesses that help to reduce greenhouse gases (e.g., lighter-weight vehicles and electric vehicles (EVs)) and the stable supply of essential materials.

• Take the lead in developing recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g. steel and power).
• Promote businesses to contribute to the stable supply of nickel, PGM and other materials necessary in the manufacture and supply of hydrogen, green materials and energy, and storage batteries.
• Continue to be involved in the development of technologies that contribute to the reduction of greenhouse gas emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Promote initiatives to completely withdraw from thermal coal mine interests while continuing to realize stable resource supply as our social mission and responsibility through trading in regards to our coal business.
• Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Promote recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote examination toward technological development and commercialization to contribute to a reduction in greenhouse gas emissions, including hydrogen, green material and energy production, and carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Strive to withdraw from thermal coal mine interests.
• Realize initiatives in businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Together with JFE Steel, Emirates Steel Arkan, and others, we have promoted detailed feasibility studies for the establishment of a supply chain of ferrous raw material for green ironmaking with low carbon emission, which contribute to the decarbonization of the steel industry.
• We are contributing to the effective utilization of limited resources and the supply of environmental materials by promoting 3R+W (reduce / reuse / recycle + waste management). Specifically, we are steadily promoting initiatives in venous industries. This includes the reuse and recycling of store facilities and fixtures, the expansion and increase in sophistication of metal scrap and waste treatment through the use of a nationwide network of recycling companies, and strengthening of cooperation with the TRE HOLDINGS CORPORATION general recycling company we invested in FYE 2020.
• We agreed with Nel ASA (Norway), who is the world’s largest manufacturer of electrolysers that are essential for green hydrogen production, to create a strategic partnership in the hydrogen industry. We and Nel are jointly exploring hydrogen business opportunities.
• We have invested in Everfuel (Denmark), who conducts the design, EPC, and operation of green hydrogen production facilities, distribution assets, and operation of hydrogen stations by using water electrolysis equipment, as well as the sale of hydrogen. In collaboration with Everfuel, we are promoting the construction of a green hydrogen value chain for local production - consumption in Europe.
• We are promoting the Platreef project and others in the PGM (platinum group metals)/nickel business where demand is expected to grow significantly due to the worldwide spread of electric vehicles and fuel cell vehicles, and also expanding trade activities of such materials.
• We continue to conduct a commercialization survey of a by-product hydrogen project in northern Kyushu with partners for the social implementation of hydrogen.
• We have an investment into Australia-based MCi, who possesses mineral carbonation technologies. We are promoting the technology for the Japanese market. In July 2022, we signed an MOU with TAISEI CORPORATION to verify the use of this calcium carbonate as raw materials for concrete.
• Together with HIF Global, JFE Steel, and Mitsui O.S.K. Lines, Ltd., we agreed to jointly conduct a wide-ranging feasibility study covering on establishment of a comprehensive supply chain for synthetic fuel (e-fuel), to transport CO₂ from Japan to Australia to produce e-fuel.
• Agreement was signed with KOKO Networks, a Climate Technology Company Operating in Kenya, to support the generation of high quality carbon credits.
• In order to expand emissions credits trading, we formed a business partnership with CF Partners, a UK-based company engaging in the sale of emissions credits in Europe.
• We decided to withdraw from thermal coal mine interests with a perspective of strengthening contribution and initiatives to SDGs. We already divested our Drummond mine interests in Colombia that had accounted for the majority of the ITOCHU’s thermal coal interests and also divested Ravensworth North coal mine interests in Australia producing both thermal and coking coal.
• Steadily promoted aluminum trade business that contributes to automobile weight reduction and electrification. We have traded approx. 500,000 tons in FYE 2024, and promoted sales of environmentally friendly raw materials for aluminum.

• Transition Risk
• Stable Supply of Resources

• Energy Storage System
• Power & Environmental Solution

• We will continue to stably supply the Energy Storage System that are the key to the efficient and optimal utilization of renewable energy.
• We will aim to strengthen our Energy Storage System business chain and establish a circular model through the battery recycling business in particular.

• Number of storage batteries sold.
• Use of recycled and reused batteries.

• Sold a cumulative total of approximately 60,000 units (588 MWh) of energy storage systems, as of the end of March, 2024.
• Continuing to promote recycling and traceability demonstrations with partners in Japan and overseas, with the aim of building a high-value-added supply chain through the implementation of recycling chains and traceability.
• Working on the structuring battery storage facilities (3 projects) and the sale of large storage batteries (4 projects). Have sold a total of 100MWh of grid storage batteries, including those currently under construction.
• In the process of establishing Japan’s first fund dedicated to grid storage batteries in cooperation with the Tokyo Metropolitan Government.

• Stable Supply of Resources
• Capital Introduction

• Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels
• Working on new energy initiatives

• Scale of our renewable energy assets
• Scale of our dispersed power sources

• We have expanded the third party-owned distributed power supply using renewable energy, by operating approximately 850 on-site photovoltaic power plants(combined output is appx 200,000kW) across Japan through i Grid Solutions Co., Ltd.
• We have expanded the third party-owned distributed power supply using renewable energy, by operating approximately 1,200 off-site photovoltaic power plants(combined output is appx 100,000kW) across Japan through Clean Energy Connect, Inc.

• Situation of operation of biogas plant at Dole Philippines.
• Status of introduction of other clean energy sources, etc.

• Result of utilization of processed pineapple residue: 155,558MT in FYE 2024.
• Result of GHG reductions from utilization of clean energy: 97,445t-CO₂e in FYE 2024.

• Pulp
• Woodchips
• Wood products & materials

• Capital Introduction
• Pollution Prevention and Resource Recycling

• We are currently in discussions concerning investment and participation in the slag business.
• In FYE 2024, global slag transactions amounted to 1.75 million tons.

• Conduct regular monitoring of employees’ work situations.
• Conduct employee engagement survey.
• Promote the percentage of taking employee acquiring paid leave.

• Compliance to labor laws.
• Rate of positive responses to the “employee engagement” item in the engagement survey: 70% or higher.
• Paid leave acquisition rate at 70% or higher.

• Conducted monitoring of employee’s working hours and working environment so as to prevent unpaid overtime work.
• The positive answer rate to the “employee engagement” in employment survey; 71% in FYE 2022, 76% in FYE 2019, 78% in FYE 2015.
• Percentage of taking employee acquiring paid leave; 64.7% in FYE 2024.

• Reach the percentage of employees who receive regular medical checkups in Japan to 100%.
• Establish well-equipped in-house clinics and a system for supporting each employee in receiving personalized medical care.
• Promote support system for balancing cancer care and work.
• Encourage support for smoking cessation treatment.
• Continue to provide special programs for employees at a high risk for lifestyle-related diseases.
• Conduct stress check every year.

• Percentage of employees who receive regular medical checkups in Japan: 100%.
• Percentage of employees who receive specific health guidance: 55%.
• Rate of employees found to have a high level of stress in the stress check at 5% or lower.

• Percentage of employees who receive regular medical checkups in Japan: 93.5% (As of April 3rd, 2024).
• Percentage of employees who receive specific health guidance: 52.7% in FYE 2024.
• Rate of employees found to have a high level of stress in the stress check at 5.2% in FYE 2024.

• Continue to develop and provide training programs at all jobs levels.
• Continue and enhance overseas deployment of interns and language trainees.
• Offer diverse career path options and experience in diverse work through regular rotation.
• Foster career awareness among employees by enhancing personnel assessments, career vision training, career counselling systems and other programs/systems.

• Annual training-related expenses forecast: 2.27 Billion yen in FYE 2024.
• The number of employees who joined human development program（cumulative total number）68,824.
• Overseas dispatch rate for career-track employees in up to their eighth year since joining the company: 87.3%.

• Achieve the following plans by Year 2030.
  • (1) Female board of directors (including executive officers) as a percentage: 30%.
• Achieve the following plans by FYE 2026.
  • (2) Female employees as a percentage of workforce: 30%.
  • (3) Female employees as a percentage of new employees: More than 40%.
  • (4) Female employees as a percentage of employees in managerial positions: 10%.
  • (5) Percentage of male employees who take childcare leave: 100%.
• Achieve the following plans by FYE 2025.
  • (6) The percentage of employment of those with disabilities over our entire group: 2.5% as of March 2024 (Includes ITOCHU Uneedus Co., Ltd. and ITOCHU Human Resources & General Affairs Services Inc.).
  • (1) to (5) are stipulated in the General Employer Action Plan under the Act on Promotion of Women’s Participation and Advancement in the Workplace.

• Achieved the following plans by the end of FYE 2024.
  • (1) Female employees as a percentage of new employees: 25% as of March 2024.
  • (2) Female employees as a percentage of new employees: 39% in FYE 2024.
  • (3) Female employees as a percentage of employees in managerial positions: 9% as of March 2024.
  • (4) Percentage of male employees who take childcare leave: 53% as of March 2024.
  • (5) The percentage of employment of those with disabilities over our entire group: 2.43% as of March 2024 (Includes ITOCHU Uneedus Co., Ltd. and ITOCHU Human Resources & General Affairs Services Inc.).
  • (1) to (4) are stipulated in the General Employer Action Plan under the Act on Promotion of Women’s Participation and Advancement in the Workplace.
• Introduced the following measures as a result of discussions at the Women’s Participation Promotion Committee.
  • Made it “mandatory” for male employees to take 5 days of childcare leave (paid leave).
  • Enhanced the utilization of femtech (eg.subsidize for egg freezing fee).

• Mining
• Electric Power・Mining・Oil and Gas Fields

• We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which our mines operate.
• We will improve local infrastructure such as medical care and education.

• Ensure the thorough application of the EHS guidelines and employee education.
• Contribute to local communities through activities for improving medical care, education and infrastructure.

• Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • EHS seminar attendance rate: 100%.
  • Rate of checks implemented on EHS compliance in existing and operating projects to be possessed in long term and new mining business: 100%.
• Donations to medical care and education, and building infrastructure in local communities.
  • Carry out CSR activities in all existing and operating projects to be possessed in long term (100%).

• We held internal EHS (environment, health and occupational safety) guidelines training courses for supervisors and staffs engaged in mining projects. The attendance rate of the training was achieved 100%.
• We checked the proper compliance to the EHS guidelines for one new project, nine existing projects, and one another resource-related project.
• We carried out social activities at the communities where our projects are located.

• We will promote procurement compliant with supplier-specific codes of conduct in coffee bean and cacao bean producing countries.
• We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
• We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.

• Coffee beans: We achieved our quantitative target for FYE2024 of a certified product ratio 20% or more. (Actual result is projected to be 37%.) We achieved a significant increase over the previous year by acquiring market share for UCC and Ajinomoto that had been acquired by other trading companies in the previous year. BtoB level disclosure of digital traceability information utilizing Farmer Connect (coffee traceability platform) has reached 3 thousand MT in FYE 2024.
• Cacao beans (traceable products): achieved 64% (5,950MT of traceable beans out of 9,253MT total.)
• Palm oil: Check supplier’s sustainable palm oil sourcing policies through regular surveys, and continue purchasing based on our procurement policies. At the same time, we continue to publicize the ratio of RSPO certified Palm Oils and Traceable To Mill etc.
• Ratio of RSPO Certified Palm Products/Oleo chemicals
  • Palm Oils 29%
  • Oleo Chemical Products 72%

Support Achievements to Each Producing Country (Qualitative)

• Coffee Beans:
  • Support for Mobile Clinics / Guatemala
    Through Unex, medical care is provided to coffee producers and their families living in mountainous areas without nearby hospitals.
• Sesame:
  • Support for Livelihood Improvement in Malawi Infrastructure support to Malawi through collaboration with Takemoto Oil & Fat. In FYE 2023, the provision of ambulances and medical equipment was implemented. In FYE 2024, 9 wells were constructed.
  • Support for Small-scale Sesame Farmers in Paraguay
    Through collaboration with Kadoya Oil, support is provided to farmers, including technical guidance, agricultural tools such as seeders and sieves, and provision of seeds.

• Forest
• Stable Supply of Resources

• Cultivate pineapples in Sierra Leone to develop a producing area followed by the development program in the Philippines.
• Start the commercial production and export of pineapple processed foods in Sierra Leone.

• Employment: 1,857 employees as of 2024 March.
• Pineapple Production: 16,000MT in FYE 2024.
• Signed a partnership agreement with a non-profit organization for medical collaboration. Started providing maternal healthcare services to employees, their families, and local residents of Sierra Tropical Limited, a local company.

• We have acquired the MSC fisheries certification for six fishing vessels as of July 2022.
• We have obtained MSC fisheries certification for an additional 19 fishing vessels in June 2023.

• Forest
• Supply Chain

• We will endeavor to establish measures to identify and avoid procuring rubber from any suppliers who dispossess indigenous people and develop High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland.
• We support or offer a training to improve yields and quality for natural rubber producers, especially smallholders. We also offer a risk-assessment education that includes modern slavery issue.

• We will establish a traceability system to make uncertain raw material procurement supply chain transparent.
• We will achieve our commitment through the sustainability activity of our unique initiative “PROJECT TREE”.

• We aim to procure raw materials with traceability and sustainability ensured in our natural rubber processing business. (Aiming to achieve 100% traceability for the natural rubber raw materials which we procure by 2025 through an original block chain-based traceability system.)
• We will increase the number of smallholders implementing sustainability training and education, and contribute to achieving sustainability in the natural rubber industry.

• Traceability of the natural rubber raw materials’ procurement reported by suppliers reached 100%.
• Traceability of the natural rubber raw materials’ procurement using our system reached 7.0% up to the collecting points and 0.4% up to the smallholders.
• 3,804 of smallholders implemented sustainability training and education.

• Based on the performance from January to December 2023.

• In Shibata-machi, Miyagi Prefecture, a public-private partnership project (PPP) is underway to develop a comprehensive gymnasium that will function as an evacuation center in case of a disaster.
• In Kuwana City, Mie Prefecture, another PPP is being promoted to construct an indoor swimming pool that contributes to the revitalization of the local community by consolidating school swimming lessons as well as expanding the functions of the sports park.

• Address Climate Change
• Develop a Rewarding Work Environment
• Respect and Consider Human Rights
• Contribute to Healthier and More Affluent Lifestyles
• Stable food procurement and supply

• Expand sales of DENBA Fresh Pro and DENBA Fryer in the super market and restaurant chain industry.
• Improve diffusion of DENBA Marine for ship warehouse.

• We are continuously supporting the promotion of DENBA products. In the retail industry, DENBA received bookings from 60 stores of a medium-sized supermarket chain and others which aim to reduce waste from refrigerated showcases. Anticipated sales for FYE 2024 are projected to reach approximately 300 million yen.
• A total of 150 units have been deployed in ship food warehouses, bringing the cumulative installed units to 360.
• Through a leasing arrangement facilitated by Tokyo Century, DENBA secured contracts for three children’s cafeterias and installed total 5 units under two additional contracts. This brings the total installed units to 8.
• Regarding opening of new offices for the disabled, DENBA obtained a contract for Minaminihon Total Logistics Service as a pilot project.

• Continuing to maintain a stable supply of pharmaceutical raw materials and other products to pharmaceutical manufacturers in Japan and overseas and support for launch some new generics products by ITOCHU CHEMICAL FRONTIER Corporation. (launched in 2023: generic muscle-relaxant restorative)
• We have continued to sell a pain reliever in North America through ITOCHU CHEMICAL FRONTIER Corporation.

• Support pharmaceutical development projects
• Preventative healthcare-related business
• Medical healthcare IT business
• Sales of Cutting-Edge medical devices and provision of medical services

• We will provide value-added services for pharmaceuticals and medical sites, and will contribute to the improvement of people’s quality of life (QOL) by utilizing cutting-edge ICT tools.
• We aim to improve quality of life by providing cutting-edge medical devices and advanced medical services in the field of medical care, where technologies are innovated rapidly.

• We will optimize healthcare utilizing medical data.
• Promote sales of advanced medical devices, and the business of supporting the operation of designated regional cancer care hospitals.

• Realization of new services and business development relating to medical data.
• Expansion of existing business.

• Increase the penetration of advanced medical devices in Japan.

MRI-guided radiation therapy systems

• Provided medical care to a total of 800 patients, including those with intractable cancer that was difficult to treat with conventional methods, at three facilities: National Cancer Center Hospital, Saitama Medical University International Medical Center, and Edogawa Hospital.

Scalp cooling therapy system for cancer patients

• Currently installed at 79 facilities, with a total of 2,900 patients using the system.

• Growth Rate of Outstanding Lendings
  As the end of January 2024 compared to the end of March 2023

  • UAF: 102.0%
  • EasyBuy: 101.5%
  • FRF: 117.0%
  • ACF: 88.5% *Operation started in 2018
• UAF, EB, and FRF remained steady. On the other hand, ACF’s loan balance decreased YoY as a result of curbing new lending.
• PDP has already executed its exit strategy in FYE 2024 as planned at the beginning of the period.

• The environmental impact of handling recycled polyester through the RENU project is as follows (estimated for FYE 2024). Waste volume to be made into “RENU”: equivalent to 6.3 million T-shirts, CO₂ reduction: 1,931 tons, Water usage reduction: 6,500 kiloliters.
• Approximately 3,000 collection points for “Wear to Fashion”, the clothing recycling service (as of March 2024).
• Launched the “ARChemia Project” as a joint project between textiles and chemicals, and started it to transform used clothing into chemical products with high environmental added value.

• Commercial production began at the Allegheny (Longview) coking coal mine in the USA, in which we invested in FYE 2020 for the purpose of securing a stable supply of high-quality steelmaking raw materials.
• Production began in 2022 at the Western Ridge iron ore deposits, which we acquired a partial interest in FYE 2022 from major resource company BHP. New equipment installation and infrastructure construction began in 2024. The South Flank iron ore deposit, which began production in 2021, is planned to achieve 80 million tons per year scale in 2024. In the Western Australian Iron Ore Operations, various measures are being promoted to ensure a stable supply, improve productivity, and to maintain and strengthen cost competitiveness.
• In FYE 2023, we invested in the AMMC iron ore mine in Canada operated by steel giant ArcelorMittal and others, acquiring interest that will enable us to secure a stable long term supply of high grade iron ore, which will be required due to the accelerating shift to low carbon emission steel production.

• Mining
• Electric Power・Mining・Oil and Gas Fields

• We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which our mines operate.
• We will improve local infrastructure such as medical care and education.

• Ensure the thorough application of the EHS guidelines and employee education.
• Contribute to local communities through activities for improving medical care, education and infrastructure.

• Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • EHS seminar attendance rate: 100%.
  • Rate of checks implemented on EHS compliance in existing and operating projects to be possessed in long term and new mining business: 100%.
• Donations to medical care and education, and building infrastructure in local communities.
  • Carry out CSR activities in all existing and operating projects to be possessed in long term (100%).

• We held internal EHS (environment, health and occupational safety) guidelines training courses for supervisors and staffs engaged in mining projects. The attendance rate of the training was achieved 100%.
• We checked the proper compliance to the EHS guidelines for one new project, nine existing projects, and one another resource-related project.
• We carried out social activities at the communities where our projects are located.

• Including Coca-Cola who joined a new member of the BLUE Plastics project, we conducted a demonstration trial of a service for tracing the progress of recycling used plastic bottles on a digital platform for the realization of a resource-circulating society using a smartphone app. We will expand the demonstration trials at three FamilyMart stores in Tokyo.
• We have launched the recycling business for flooring material together with the launch of DESSO, an eco-friendly flooring material produced by European construction material manufacturer Tarkett S.A., in the Japanese market through Lilycolor CO., LTD., an interior design and decorating wholesaler.
• We succeeded in developing and establishing a mass production system for recycled nylon fishing nets combining Aquafil’s developing ECONYL^® ingredient.

• Stable Supply of Resources
• Capital Introduction

• Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels
• Working on new energy initiatives

• We will promote procurement compliant with supplier-specific codes of conduct in coffee bean and cacao bean producing countries.
• We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
• We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.

• Coffee beans: We achieved our quantitative target for FYE2024 of a certified product ratio 20% or more. (Actual result is projected to be 37%.) We achieved a significant increase over the previous year by acquiring market share for UCC and Ajinomoto that had been acquired by other trading companies in the previous year. BtoB level disclosure of digital traceability information utilizing Farmer Connect (coffee traceability platform) has reached 3 thousand MT in FYE 2024.
• Cacao beans (traceable products): achieved 64% (5,950MT of traceable beans out of 9,253MT total.)
• Palm oil: Check supplier’s sustainable palm oil sourcing policies through regular surveys, and continue purchasing based on our procurement policies. At the same time, we continue to publicize the ratio of RSPO certified Palm Oils and Traceable To Mill etc.
• Ratio of RSPO Certified Palm Products/Oleo chemicals
  • Palm Oils 29%
  • Oleo Chemical Products 72%

Support Achievements to Each Producing Country (Qualitative)

• Coffee Beans:
  • Support for Mobile Clinics / Guatemala
    Through Unex, medical care is provided to coffee producers and their families living in mountainous areas without nearby hospitals.
• Sesame:
  • Support for Livelihood Improvement in Malawi Infrastructure support to Malawi through collaboration with Takemoto Oil & Fat. In FYE 2023, the provision of ambulances and medical equipment was implemented. In FYE 2024, 9 wells were constructed.
  • Support for Small-scale Sesame Farmers in Paraguay
    Through collaboration with Kadoya Oil, support is provided to farmers, including technical guidance, agricultural tools such as seeders and sieves, and provision of seeds.

• Forest
• Stable Supply of Resources

• Cultivate pineapples in Sierra Leone to develop a producing area followed by the development program in the Philippines.
• Start the commercial production and export of pineapple processed foods in Sierra Leone.

• Employment: 1,857 employees as of 2024 March.
• Pineapple Production: 16,000MT in FYE 2024.
• Signed a partnership agreement with a non-profit organization for medical collaboration. Started providing maternal healthcare services to employees, their families, and local residents of Sierra Tropical Limited, a local company.

• We have acquired the MSC fisheries certification for six fishing vessels as of July 2022.
• We have obtained MSC fisheries certification for an additional 19 fishing vessels in June 2023.

• Reduction of waste at the production site (Philippines)
• Reuse of discarded bananas (Japan)

• Reuse of discarded bananas (Philippines): 19,953MT in FYE 2024.
• Reuse of discarded bananas (Japan): 910MT in FYE 2024.

• Pulp
• Woodchips
• Wood products & materials

• Forest
• Supply Chain

• We will endeavor to establish measures to identify and avoid procuring rubber from any suppliers who dispossess indigenous people and develop High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland.
• We support or offer a training to improve yields and quality for natural rubber producers, especially smallholders. We also offer a risk-assessment education that includes modern slavery issue.

• We will establish a traceability system to make uncertain raw material procurement supply chain transparent.
• We will achieve our commitment through the sustainability activity of our unique initiative “PROJECT TREE”.

• We aim to procure raw materials with traceability and sustainability ensured in our natural rubber processing business. (Aiming to achieve 100% traceability for the natural rubber raw materials which we procure by 2025 through an original block chain-based traceability system.)
• We will increase the number of smallholders implementing sustainability training and education, and contribute to achieving sustainability in the natural rubber industry.

• Traceability of the natural rubber raw materials’ procurement reported by suppliers reached 100%.
• Traceability of the natural rubber raw materials’ procurement using our system reached 7.0% up to the collecting points and 0.4% up to the smallholders.
• 3,804 of smallholders implemented sustainability training and education.

• Based on the performance from January to December 2023.

• Capital Introduction
• Pollution Prevention and Resource Recycling

• We are currently in discussions concerning investment and participation in the slag business.
• In FYE 2024, global slag transactions amounted to 1.75 million tons.

• Expand supply channels in order to realize a sustainable and stable procurement of resources.
• Reinforce promotional activities in order to raise the awareness of secondhand mobile phones/tablets.

• Expand product variation and supply channels.
• Expand distribution outlets.

• The number of models handled increased from 671 (FYE 2023) to 856 (FYE 2024). (27.6% increase over the previous year)
• Procurement sources increased from 6 companies (Japan, Hong Kong, and US) in FYE 2023 to 12 companies (Japan, Hong Kong, and US) in FYE 2024.
• Distribution channels remained strong due to sales through major e-commerce companies.

• Appoint several outside Directors, who have a high level of independence that fulfills our independence criteria and are expected to contribute to the company management with a high level of knowledge in their respective fields.
• Maintain a highly transparent and objective Directors’ and officers’ remuneration system, which can increase their motivation to contribute to our medium- and long-term improvement of our company’s performance and the improvement of our corporate value.

• We have maintained the diversity of the Board of Directors (through appointing always one third or higher percentage of outside Directors- 4 outside Directors out of 10 Directors, 2 female Directors out of 10 Directors, 2 female Audit & Supervisory Board Members, and an outside Director and an outside Audit & Supervisory Board Member who had wide range of sufficient experiences in corporate management).
• We have restructured the Governance and Remuneration Committee and the Nomination Committee into the Governance, Nomination and Remuneration Committee, the chair of which being the outside Director and a majority of the members of which being the outside Directors (4 out of 7 members).
• We have maintained the chair of the Women’s Advancement Committee being the female outside Director, and a half of the Women’s Advancement Committee being the outside Directors and the outside Audit & Supervisory Board Members, and the female members (3 out of 6 members respectively).

• At JOI’X CORPORATION, thanks to the project to achieve the optimal inventory volume in FYE 2024, we have confirmed a decrease in the inventory quantity compared to last year for the main brand, Paul Smith Men’s. The decrease was 7.8% at the end of the Spring/Summer 2023 season and 4.5% in the same year’s Fall/Winter season (based on the end of January).
• SANKEI CO., LTD. has built a database that centralizes product information for thousands of clothing accessories. It allows related parties to instantly access, share, and update product information, and promote operational efficiency. In the near future, it will be possible to link data with enterprise systems and collaborate with apparel customers that digitalized their operations.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• To contribute to decarbonization in the shipping sector, we are developing an “integrated project” aimed at: (i) developing ammonia-fueled vessels, (ii) owning and operating ammonia-fueled vessels, (iii) establishing fuel supply chains, and (iv) procuring/producing clean ammonia.
• As a pilot initiative, discussions are underway with stakeholders for the development of the first ammonia-fueled vessels, initially targeting large bulk carriers with a projected completion date of 2027. Concurrently, discussions have commenced for container ships and car carriers to adopt ammonia as their primary fuel.
• In addition, we are actively progressing the development of ammonia bunkering facilities in Singapore, followed by Algeciras in Spain and the Suez Canal in Egypt.
• In March 2024, we secured support from the Green Innovation Fund for the development of various technologies related to ammonia handling, in collaboration with Fuji Electronic.
• We have established an international framework for conducting a “Joint Study” on the risk assessment of ammonia fuel and safety standards, and have also formed a “Container Ship Joint Study.” These frameworks were concluded as of March 2024 to transition into the commercialization phase.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• As a partner in “EVision,” Isuzu’s total solution program for EVs, we have expanded our efforts to promote commercial EVs and have actively provided consultations to users encountering challenges related to EV introduction.
• In November 2022, we commenced demonstration and operations with a prototype developed and manufactured as part of the “Combination of developing battery-exchangeable EVs and utilizing renewable energy Sector coupling demonstration project,” commissioned by the Ministry of the Environment. By the end of December 2023, we had achieved a cumulative delivery distance exceeding 20,000km.

• Climate Change Opportunities
• Capital Introduction
• Innovation

• Resource recycling business
• Mining business
• Environmental business
• Materials-related business

• We will realize stable resource supply as our social mission and responsibility while fully considering its environmental impact.
• We will contribute to climate change issues through businesses that help to reduce greenhouse gases (e.g., lighter-weight vehicles and electric vehicles (EVs)) and the stable supply of essential materials.

• Take the lead in developing recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g. steel and power).
• Promote businesses to contribute to the stable supply of nickel, PGM and other materials necessary in the manufacture and supply of hydrogen, green materials and energy, and storage batteries.
• Continue to be involved in the development of technologies that contribute to the reduction of greenhouse gas emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Promote initiatives to completely withdraw from thermal coal mine interests while continuing to realize stable resource supply as our social mission and responsibility through trading in regards to our coal business.
• Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Promote recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote examination toward technological development and commercialization to contribute to a reduction in greenhouse gas emissions, including hydrogen, green material and energy production, and carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Strive to withdraw from thermal coal mine interests.
• Realize initiatives in businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Together with JFE Steel, Emirates Steel Arkan, and others, we have promoted detailed feasibility studies for the establishment of a supply chain of ferrous raw material for green ironmaking with low carbon emission, which contribute to the decarbonization of the steel industry.
• We are contributing to the effective utilization of limited resources and the supply of environmental materials by promoting 3R+W (reduce / reuse / recycle + waste management). Specifically, we are steadily promoting initiatives in venous industries. This includes the reuse and recycling of store facilities and fixtures, the expansion and increase in sophistication of metal scrap and waste treatment through the use of a nationwide network of recycling companies, and strengthening of cooperation with the TRE HOLDINGS CORPORATION general recycling company we invested in FYE 2020.
• We agreed with Nel ASA (Norway), who is the world’s largest manufacturer of electrolysers that are essential for green hydrogen production, to create a strategic partnership in the hydrogen industry. We and Nel are jointly exploring hydrogen business opportunities.
• We have invested in Everfuel (Denmark), who conducts the design, EPC, and operation of green hydrogen production facilities, distribution assets, and operation of hydrogen stations by using water electrolysis equipment, as well as the sale of hydrogen. In collaboration with Everfuel, we are promoting the construction of a green hydrogen value chain for local production - consumption in Europe.
• We are promoting the Platreef project and others in the PGM (platinum group metals)/nickel business where demand is expected to grow significantly due to the worldwide spread of electric vehicles and fuel cell vehicles, and also expanding trade activities of such materials.
• We continue to conduct a commercialization survey of a by-product hydrogen project in northern Kyushu with partners for the social implementation of hydrogen.
• We have an investment into Australia-based MCi, who possesses mineral carbonation technologies. We are promoting the technology for the Japanese market. In July 2022, we signed an MOU with TAISEI CORPORATION to verify the use of this calcium carbonate as raw materials for concrete.
• Together with HIF Global, JFE Steel, and Mitsui O.S.K. Lines, Ltd., we agreed to jointly conduct a wide-ranging feasibility study covering on establishment of a comprehensive supply chain for synthetic fuel (e-fuel), to transport CO₂ from Japan to Australia to produce e-fuel.
• Agreement was signed with KOKO Networks, a Climate Technology Company Operating in Kenya, to support the generation of high quality carbon credits.
• In order to expand emissions credits trading, we formed a business partnership with CF Partners, a UK-based company engaging in the sale of emissions credits in Europe.
• We decided to withdraw from thermal coal mine interests with a perspective of strengthening contribution and initiatives to SDGs. We already divested our Drummond mine interests in Colombia that had accounted for the majority of the ITOCHU’s thermal coal interests and also divested Ravensworth North coal mine interests in Australia producing both thermal and coking coal.
• Steadily promoted aluminum trade business that contributes to automobile weight reduction and electrification. We have traded approx. 500,000 tons in FYE 2024, and promoted sales of environmentally friendly raw materials for aluminum.

• Mining business
• Resource-related business
• Logistics business

• Promote an increase in efficiency of mine operations and facility management utilizing digital transformation.
• Promote conversion to the automatic operation of mining equipments such as underground mining equipments and dump trucks.

• We signed a memorandum to collaborate in decarbonization and digital transformation with Companhia Siderúrgica Naciona [CSN] and started demonstration experiment with the aim of contributing to increased safety, operational efficiency, and decarbonization at the iron ore mine (Casa de Pedra [CdP] Mine) that we have invested and CSN steel work.
• Since FYE 2023, we have been operating GE Digital’s operation and asset management software at the CdP Mine in full-scale with improving the plant’s actual yield rate. We are also considering to apply of the system at other mines and other regions. We also agreed to collaborate on decarbonization of the CSN Group mainly at the CdP Mine with Shell, a major resource company.

• Developed 6 new vendors to provide stable solutions and further improve services. Provide services and solutions that contribute to improving work efficiency and ensuring information security.
• Aiming to further expand business to contribute to the realization of a safe, secure, and convenient social infrastructure.

• Tyr Energy Development Renewables, LLC (“TED”), established in 2022, is currently developing 26 assets, approximately 4 GW of solar power plants.
• NAES Corporation, another wholly-owned subsidiary of ITOCHU and the world’s largest independent provider of O&M services for power plants, extends its expertise to asset management and maintenance services in the renewable energy sector. Currently, NAES oversees approximately 1,400 solar power plants with a capacity of 2GW, as well as wind power plants with a capacity of 1.1GW.
• In June 2023, we launched a fund dedicated to investing in renewable energy generation assets across North America.
• The renewable energy ratio, calculated on an equity interest basis, stands at 17.1% as of March 2024.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• To contribute to decarbonization in the shipping sector, we are developing an “integrated project” aimed at: (i) developing ammonia-fueled vessels, (ii) owning and operating ammonia-fueled vessels, (iii) establishing fuel supply chains, and (iv) procuring/producing clean ammonia.
• As a pilot initiative, discussions are underway with stakeholders for the development of the first ammonia-fueled vessels, initially targeting large bulk carriers with a projected completion date of 2027. Concurrently, discussions have commenced for container ships and car carriers to adopt ammonia as their primary fuel.
• In addition, we are actively progressing the development of ammonia bunkering facilities in Singapore, followed by Algeciras in Spain and the Suez Canal in Egypt.
• In March 2024, we secured support from the Green Innovation Fund for the development of various technologies related to ammonia handling, in collaboration with Fuji Electronic.
• We have established an international framework for conducting a “Joint Study” on the risk assessment of ammonia fuel and safety standards, and have also formed a “Container Ship Joint Study.” These frameworks were concluded as of March 2024 to transition into the commercialization phase.

• Climate Change Opportunities
• Innovation

• Taking countermeasures against climate change
• Next-generation business development

• As a partner in “EVision,” Isuzu’s total solution program for EVs, we have expanded our efforts to promote commercial EVs and have actively provided consultations to users encountering challenges related to EV introduction.
• In November 2022, we commenced demonstration and operations with a prototype developed and manufactured as part of the “Combination of developing battery-exchangeable EVs and utilizing renewable energy Sector coupling demonstration project,” commissioned by the Ministry of the Environment. By the end of December 2023, we had achieved a cumulative delivery distance exceeding 20,000km.

• Water Resources
• Pollution Prevention and Resource Recycling

Water Field

• We are promoting seawater desalination business in Australia and Oman.

Environmental Field

• UK: Our operations encompass four municipal solid waste incineration and power generation facilities (waste-to-energy plants), processing 1.3 million tons of waste annually. This accounts for 10% of the UK’s waste incineration market and provides electricity for 160,000 British households.
• Serbia: We have initiated an integrated waste management business, including an Energy-from-Waste (EfW) project in the City of Belgrade. The project anticipates a reduction of approximately 210,000 tons of greenhouse gas emissions and has received Certification of Carbon Credit from the Gold Standard.
• UAE: The first Energy-from-Waste (EfW) project in Dubai, we are advancing the construction of the world’s largest EfW plants. These facilities are designed to process half of the Dubai’s municipal solid waste annually (1.9 million tons).
• Saudi Arabia: We are actively engaged in integrated hazardous waste management services in Jubail Industrial City.

• Climate Change Opportunities
• Capital Introduction
• Innovation

• Resource recycling business
• Mining business
• Environmental business
• Materials-related business

• We will realize stable resource supply as our social mission and responsibility while fully considering its environmental impact.
• We will contribute to climate change issues through businesses that help to reduce greenhouse gases (e.g., lighter-weight vehicles and electric vehicles (EVs)) and the stable supply of essential materials.

• Take the lead in developing recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g. steel and power).
• Promote businesses to contribute to the stable supply of nickel, PGM and other materials necessary in the manufacture and supply of hydrogen, green materials and energy, and storage batteries.
• Continue to be involved in the development of technologies that contribute to the reduction of greenhouse gas emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Promote initiatives to completely withdraw from thermal coal mine interests while continuing to realize stable resource supply as our social mission and responsibility through trading in regards to our coal business.
• Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Promote recycling-orientated business.
• Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
• Promote examination toward technological development and commercialization to contribute to a reduction in greenhouse gas emissions, including hydrogen, green material and energy production, and carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
• Strive to withdraw from thermal coal mine interests.
• Realize initiatives in businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).

• Together with JFE Steel, Emirates Steel Arkan, and others, we have promoted detailed feasibility studies for the establishment of a supply chain of ferrous raw material for green ironmaking with low carbon emission, which contribute to the decarbonization of the steel industry.
• We are contributing to the effective utilization of limited resources and the supply of environmental materials by promoting 3R+W (reduce / reuse / recycle + waste management). Specifically, we are steadily promoting initiatives in venous industries. This includes the reuse and recycling of store facilities and fixtures, the expansion and increase in sophistication of metal scrap and waste treatment through the use of a nationwide network of recycling companies, and strengthening of cooperation with the TRE HOLDINGS CORPORATION general recycling company we invested in FYE 2020.
• We agreed with Nel ASA (Norway), who is the world’s largest manufacturer of electrolysers that are essential for green hydrogen production, to create a strategic partnership in the hydrogen industry. We and Nel are jointly exploring hydrogen business opportunities.
• We have invested in Everfuel (Denmark), who conducts the design, EPC, and operation of green hydrogen production facilities, distribution assets, and operation of hydrogen stations by using water electrolysis equipment, as well as the sale of hydrogen. In collaboration with Everfuel, we are promoting the construction of a green hydrogen value chain for local production - consumption in Europe.
• We are promoting the Platreef project and others in the PGM (platinum group metals)/nickel business where demand is expected to grow significantly due to the worldwide spread of electric vehicles and fuel cell vehicles, and also expanding trade activities of such materials.
• We continue to conduct a commercialization survey of a by-product hydrogen project in northern Kyushu with partners for the social implementation of hydrogen.
• We have an investment into Australia-based MCi, who possesses mineral carbonation technologies. We are promoting the technology for the Japanese market. In July 2022, we signed an MOU with TAISEI CORPORATION to verify the use of this calcium carbonate as raw materials for concrete.
• Together with HIF Global, JFE Steel, and Mitsui O.S.K. Lines, Ltd., we agreed to jointly conduct a wide-ranging feasibility study covering on establishment of a comprehensive supply chain for synthetic fuel (e-fuel), to transport CO₂ from Japan to Australia to produce e-fuel.
• Agreement was signed with KOKO Networks, a Climate Technology Company Operating in Kenya, to support the generation of high quality carbon credits.
• In order to expand emissions credits trading, we formed a business partnership with CF Partners, a UK-based company engaging in the sale of emissions credits in Europe.
• We decided to withdraw from thermal coal mine interests with a perspective of strengthening contribution and initiatives to SDGs. We already divested our Drummond mine interests in Colombia that had accounted for the majority of the ITOCHU’s thermal coal interests and also divested Ravensworth North coal mine interests in Australia producing both thermal and coking coal.
• Steadily promoted aluminum trade business that contributes to automobile weight reduction and electrification. We have traded approx. 500,000 tons in FYE 2024, and promoted sales of environmentally friendly raw materials for aluminum.

• Transition Risk
• Stable Supply of Resources

• Energy Storage System
• Power & Environmental Solution

• We will continue to stably supply the Energy Storage System that are the key to the efficient and optimal utilization of renewable energy.
• We will aim to strengthen our Energy Storage System business chain and establish a circular model through the battery recycling business in particular.

• Number of storage batteries sold.
• Use of recycled and reused batteries.

• Sold a cumulative total of approximately 60,000 units (588 MWh) of energy storage systems, as of the end of March, 2024.
• Continuing to promote recycling and traceability demonstrations with partners in Japan and overseas, with the aim of building a high-value-added supply chain through the implementation of recycling chains and traceability.
• Working on the structuring battery storage facilities (3 projects) and the sale of large storage batteries (4 projects). Have sold a total of 100MWh of grid storage batteries, including those currently under construction.
• In the process of establishing Japan’s first fund dedicated to grid storage batteries in cooperation with the Tokyo Metropolitan Government.

• Stable Supply of Resources
• Capital Introduction

• Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels
• Working on new energy initiatives

• Scale of our renewable energy assets
• Scale of our dispersed power sources

• We have expanded the third party-owned distributed power supply using renewable energy, by operating approximately 850 on-site photovoltaic power plants(combined output is appx 200,000kW) across Japan through i Grid Solutions Co., Ltd.
• We have expanded the third party-owned distributed power supply using renewable energy, by operating approximately 1,200 off-site photovoltaic power plants(combined output is appx 100,000kW) across Japan through Clean Energy Connect, Inc.

• Situation of operation of biogas plant at Dole Philippines.
• Status of introduction of other clean energy sources, etc.

• Result of utilization of processed pineapple residue: 155,558MT in FYE 2024.
• Result of GHG reductions from utilization of clean energy: 97,445t-CO₂e in FYE 2024.

• Pulp
• Woodchips
• Wood products & materials

• Capital Introduction
• Pollution Prevention and Resource Recycling

• We are currently in discussions concerning investment and participation in the slag business.
• In FYE 2024, global slag transactions amounted to 1.75 million tons.

• Conduct regular monitoring of employees’ work situations.
• Conduct employee engagement survey.
• Promote the percentage of taking employee acquiring paid leave.

• Compliance to labor laws.
• Rate of positive responses to the “employee engagement” item in the engagement survey: 70% or higher.
• Paid leave acquisition rate at 70% or higher.

• Conducted monitoring of employee’s working hours and working environment so as to prevent unpaid overtime work.
• The positive answer rate to the “employee engagement” in employment survey; 71% in FYE 2022, 76% in FYE 2019, 78% in FYE 2015.
• Percentage of taking employee acquiring paid leave; 64.7% in FYE 2024.

• Reach the percentage of employees who receive regular medical checkups in Japan to 100%.
• Establish well-equipped in-house clinics and a system for supporting each employee in receiving personalized medical care.
• Promote support system for balancing cancer care and work.
• Encourage support for smoking cessation treatment.
• Continue to provide special programs for employees at a high risk for lifestyle-related diseases.
• Conduct stress check every year.

• Percentage of employees who receive regular medical checkups in Japan: 100%.
• Percentage of employees who receive specific health guidance: 55%.
• Rate of employees found to have a high level of stress in the stress check at 5% or lower.

• Percentage of employees who receive regular medical checkups in Japan: 93.5% (As of April 3rd, 2024).
• Percentage of employees who receive specific health guidance: 52.7% in FYE 2024.
• Rate of employees found to have a high level of stress in the stress check at 5.2% in FYE 2024.

• Continue to develop and provide training programs at all jobs levels.
• Continue and enhance overseas deployment of interns and language trainees.
• Offer diverse career path options and experience in diverse work through regular rotation.
• Foster career awareness among employees by enhancing personnel assessments, career vision training, career counselling systems and other programs/systems.

• Annual training-related expenses forecast: 2.27 Billion yen in FYE 2024.
• The number of employees who joined human development program（cumulative total number）68,824.
• Overseas dispatch rate for career-track employees in up to their eighth year since joining the company: 87.3%.

• Achieve the following plans by Year 2030.
  • (1) Female board of directors (including executive officers) as a percentage: 30%.
• Achieve the following plans by FYE 2026.
  • (2) Female employees as a percentage of workforce: 30%.
  • (3) Female employees as a percentage of new employees: More than 40%.
  • (4) Female employees as a percentage of employees in managerial positions: 10%.
  • (5) Percentage of male employees who take childcare leave: 100%.
• Achieve the following plans by FYE 2025.
  • (6) The percentage of employment of those with disabilities over our entire group: 2.5% as of March 2024 (Includes ITOCHU Uneedus Co., Ltd. and ITOCHU Human Resources & General Affairs Services Inc.).
  • (1) to (5) are stipulated in the General Employer Action Plan under the Act on Promotion of Women’s Participation and Advancement in the Workplace.

• Achieved the following plans by the end of FYE 2024.
  • (1) Female employees as a percentage of new employees: 25% as of March 2024.
  • (2) Female employees as a percentage of new employees: 39% in FYE 2024.
  • (3) Female employees as a percentage of employees in managerial positions: 9% as of March 2024.
  • (4) Percentage of male employees who take childcare leave: 53% as of March 2024.
  • (5) The percentage of employment of those with disabilities over our entire group: 2.43% as of March 2024 (Includes ITOCHU Uneedus Co., Ltd. and ITOCHU Human Resources & General Affairs Services Inc.).
  • (1) to (4) are stipulated in the General Employer Action Plan under the Act on Promotion of Women’s Participation and Advancement in the Workplace.
• Introduced the following measures as a result of discussions at the Women’s Participation Promotion Committee.
  • Made it “mandatory” for male employees to take 5 days of childcare leave (paid leave).
  • Enhanced the utilization of femtech (eg.subsidize for egg freezing fee).

• Mining
• Electric Power・Mining・Oil and Gas Fields

• We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which our mines operate.
• We will improve local infrastructure such as medical care and education.

• Ensure the thorough application of the EHS guidelines and employee education.
• Contribute to local communities through activities for improving medical care, education and infrastructure.

• Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • EHS seminar attendance rate: 100%.
  • Rate of checks implemented on EHS compliance in existing and operating projects to be possessed in long term and new mining business: 100%.
• Donations to medical care and education, and building infrastructure in local communities.
  • Carry out CSR activities in all existing and operating projects to be possessed in long term (100%).

• We held internal EHS (environment, health and occupational safety) guidelines training courses for supervisors and staffs engaged in mining projects. The attendance rate of the training was achieved 100%.
• We checked the proper compliance to the EHS guidelines for one new project, nine existing projects, and one another resource-related project.
• We carried out social activities at the communities where our projects are located.

• We will promote procurement compliant with supplier-specific codes of conduct in coffee bean and cacao bean producing countries.
• We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
• We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.

• Coffee beans: We achieved our quantitative target for FYE2024 of a certified product ratio 20% or more. (Actual result is projected to be 37%.) We achieved a significant increase over the previous year by acquiring market share for UCC and Ajinomoto that had been acquired by other trading companies in the previous year. BtoB level disclosure of digital traceability information utilizing Farmer Connect (coffee traceability platform) has reached 3 thousand MT in FYE 2024.
• Cacao beans (traceable products): achieved 64% (5,950MT of traceable beans out of 9,253MT total.)
• Palm oil: Check supplier’s sustainable palm oil sourcing policies through regular surveys, and continue purchasing based on our procurement policies. At the same time, we continue to publicize the ratio of RSPO certified Palm Oils and Traceable To Mill etc.
• Ratio of RSPO Certified Palm Products/Oleo chemicals
  • Palm Oils 29%
  • Oleo Chemical Products 72%

Support Achievements to Each Producing Country (Qualitative)

• Coffee Beans:
  • Support for Mobile Clinics / Guatemala
    Through Unex, medical care is provided to coffee producers and their families living in mountainous areas without nearby hospitals.
• Sesame:
  • Support for Livelihood Improvement in Malawi Infrastructure support to Malawi through collaboration with Takemoto Oil & Fat. In FYE 2023, the provision of ambulances and medical equipment was implemented. In FYE 2024, 9 wells were constructed.
  • Support for Small-scale Sesame Farmers in Paraguay
    Through collaboration with Kadoya Oil, support is provided to farmers, including technical guidance, agricultural tools such as seeders and sieves, and provision of seeds.

• Forest
• Stable Supply of Resources

• Cultivate pineapples in Sierra Leone to develop a producing area followed by the development program in the Philippines.
• Start the commercial production and export of pineapple processed foods in Sierra Leone.

• Employment: 1,857 employees as of 2024 March.
• Pineapple Production: 16,000MT in FYE 2024.
• Signed a partnership agreement with a non-profit organization for medical collaboration. Started providing maternal healthcare services to employees, their families, and local residents of Sierra Tropical Limited, a local company.

• We have acquired the MSC fisheries certification for six fishing vessels as of July 2022.
• We have obtained MSC fisheries certification for an additional 19 fishing vessels in June 2023.

• Forest
• Supply Chain

• We will endeavor to establish measures to identify and avoid procuring rubber from any suppliers who dispossess indigenous people and develop High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland.
• We support or offer a training to improve yields and quality for natural rubber producers, especially smallholders. We also offer a risk-assessment education that includes modern slavery issue.

• We will establish a traceability system to make uncertain raw material procurement supply chain transparent.
• We will achieve our commitment through the sustainability activity of our unique initiative “PROJECT TREE”.

• We aim to procure raw materials with traceability and sustainability ensured in our natural rubber processing business. (Aiming to achieve 100% traceability for the natural rubber raw materials which we procure by 2025 through an original block chain-based traceability system.)
• We will increase the number of smallholders implementing sustainability training and education, and contribute to achieving sustainability in the natural rubber industry.

• Traceability of the natural rubber raw materials’ procurement reported by suppliers reached 100%.
• Traceability of the natural rubber raw materials’ procurement using our system reached 7.0% up to the collecting points and 0.4% up to the smallholders.
• 3,804 of smallholders implemented sustainability training and education.

• Based on the performance from January to December 2023.

• In Shibata-machi, Miyagi Prefecture, a public-private partnership project (PPP) is underway to develop a comprehensive gymnasium that will function as an evacuation center in case of a disaster.
• In Kuwana City, Mie Prefecture, another PPP is being promoted to construct an indoor swimming pool that contributes to the revitalization of the local community by consolidating school swimming lessons as well as expanding the functions of the sports park.

• Address Climate Change
• Develop a Rewarding Work Environment
• Respect and Consider Human Rights
• Contribute to Healthier and More Affluent Lifestyles
• Stable food procurement and supply

• Expand sales of DENBA Fresh Pro and DENBA Fryer in the super market and restaurant chain industry.
• Improve diffusion of DENBA Marine for ship warehouse.

• We are continuously supporting the promotion of DENBA products. In the retail industry, DENBA received bookings from 60 stores of a medium-sized supermarket chain and others which aim to reduce waste from refrigerated showcases. Anticipated sales for FYE 2024 are projected to reach approximately 300 million yen.
• A total of 150 units have been deployed in ship food warehouses, bringing the cumulative installed units to 360.
• Through a leasing arrangement facilitated by Tokyo Century, DENBA secured contracts for three children’s cafeterias and installed total 5 units under two additional contracts. This brings the total installed units to 8.
• Regarding opening of new offices for the disabled, DENBA obtained a contract for Minaminihon Total Logistics Service as a pilot project.

• Continuing to maintain a stable supply of pharmaceutical raw materials and other products to pharmaceutical manufacturers in Japan and overseas and support for launch some new generics products by ITOCHU CHEMICAL FRONTIER Corporation. (launched in 2023: generic muscle-relaxant restorative)
• We have continued to sell a pain reliever in North America through ITOCHU CHEMICAL FRONTIER Corporation.

• Support pharmaceutical development projects
• Preventative healthcare-related business
• Medical healthcare IT business
• Sales of Cutting-Edge medical devices and provision of medical services

• We will provide value-added services for pharmaceuticals and medical sites, and will contribute to the improvement of people’s quality of life (QOL) by utilizing cutting-edge ICT tools.
• We aim to improve quality of life by providing cutting-edge medical devices and advanced medical services in the field of medical care, where technologies are innovated rapidly.

• We will optimize healthcare utilizing medical data.
• Promote sales of advanced medical devices, and the business of supporting the operation of designated regional cancer care hospitals.

• Realization of new services and business development relating to medical data.
• Expansion of existing business.

• Increase the penetration of advanced medical devices in Japan.

MRI-guided radiation therapy systems

• Provided medical care to a total of 800 patients, including those with intractable cancer that was difficult to treat with conventional methods, at three facilities: National Cancer Center Hospital, Saitama Medical University International Medical Center, and Edogawa Hospital.

Scalp cooling therapy system for cancer patients

• Currently installed at 79 facilities, with a total of 2,900 patients using the system.

• Growth Rate of Outstanding Lendings
  As the end of January 2024 compared to the end of March 2023

  • UAF: 102.0%
  • EasyBuy: 101.5%
  • FRF: 117.0%
  • ACF: 88.5% *Operation started in 2018
• UAF, EB, and FRF remained steady. On the other hand, ACF’s loan balance decreased YoY as a result of curbing new lending.
• PDP has already executed its exit strategy in FYE 2024 as planned at the beginning of the period.

• The environmental impact of handling recycled polyester through the RENU project is as follows (estimated for FYE 2024). Waste volume to be made into “RENU”: equivalent to 6.3 million T-shirts, CO₂ reduction: 1,931 tons, Water usage reduction: 6,500 kiloliters.
• Approximately 3,000 collection points for “Wear to Fashion”, the clothing recycling service (as of March 2024).
• Launched the “ARChemia Project” as a joint project between textiles and chemicals, and started it to transform used clothing into chemical products with high environmental added value.

• Commercial production began at the Allegheny (Longview) coking coal mine in the USA, in which we invested in FYE 2020 for the purpose of securing a stable supply of high-quality steelmaking raw materials.
• Production began in 2022 at the Western Ridge iron ore deposits, which we acquired a partial interest in FYE 2022 from major resource company BHP. New equipment installation and infrastructure construction began in 2024. The South Flank iron ore deposit, which began production in 2021, is planned to achieve 80 million tons per year scale in 2024. In the Western Australian Iron Ore Operations, various measures are being promoted to ensure a stable supply, improve productivity, and to maintain and strengthen cost competitiveness.
• In FYE 2023, we invested in the AMMC iron ore mine in Canada operated by steel giant ArcelorMittal and others, acquiring interest that will enable us to secure a stable long term supply of high grade iron ore, which will be required due to the accelerating shift to low carbon emission steel production.

• Mining
• Electric Power・Mining・Oil and Gas Fields

• We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which our mines operate.
• We will improve local infrastructure such as medical care and education.

• Ensure the thorough application of the EHS guidelines and employee education.
• Contribute to local communities through activities for improving medical care, education and infrastructure.

• Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • EHS seminar attendance rate: 100%.
  • Rate of checks implemented on EHS compliance in existing and operating projects to be possessed in long term and new mining business: 100%.
• Donations to medical care and education, and building infrastructure in local communities.
  • Carry out CSR activities in all existing and operating projects to be possessed in long term (100%).

• We held internal EHS (environment, health and occupational safety) guidelines training courses for supervisors and staffs engaged in mining projects. The attendance rate of the training was achieved 100%.
• We checked the proper compliance to the EHS guidelines for one new project, nine existing projects, and one another resource-related project.
• We carried out social activities at the communities where our projects are located.

• Including Coca-Cola who joined a new member of the BLUE Plastics project, we conducted a demonstration trial of a service for tracing the progress of recycling used plastic bottles on a digital platform for the realization of a resource-circulating society using a smartphone app. We will expand the demonstration trials at three FamilyMart stores in Tokyo.
• We have launched the recycling business for flooring material together with the launch of DESSO, an eco-friendly flooring material produced by European construction material manufacturer Tarkett S.A., in the Japanese market through Lilycolor CO., LTD., an interior design and decorating wholesaler.
• We succeeded in developing and establishing a mass production system for recycled nylon fishing nets combining Aquafil’s developing ECONYL^® ingredient.

• Stable Supply of Resources
• Capital Introduction

• Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels
• Working on new energy initiatives

• We will promote procurement compliant with supplier-specific codes of conduct in coffee bean and cacao bean producing countries.
• We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
• We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.

• Coffee beans: We achieved our quantitative target for FYE2024 of a certified product ratio 20% or more. (Actual result is projected to be 37%.) We achieved a significant increase over the previous year by acquiring market share for UCC and Ajinomoto that had been acquired by other trading companies in the previous year. BtoB level disclosure of digital traceability information utilizing Farmer Connect (coffee traceability platform) has reached 3 thousand MT in FYE 2024.
• Cacao beans (traceable products): achieved 64% (5,950MT of traceable beans out of 9,253MT total.)
• Palm oil: Check supplier’s sustainable palm oil sourcing policies through regular surveys, and continue purchasing based on our procurement policies. At the same time, we continue to publicize the ratio of RSPO certified Palm Oils and Traceable To Mill etc.
• Ratio of RSPO Certified Palm Products/Oleo chemicals
  • Palm Oils 29%
  • Oleo Chemical Products 72%

Support Achievements to Each Producing Country (Qualitative)

• Coffee Beans:
  • Support for Mobile Clinics / Guatemala
    Through Unex, medical care is provided to coffee producers and their families living in mountainous areas without nearby hospitals.
• Sesame:
  • Support for Livelihood Improvement in Malawi Infrastructure support to Malawi through collaboration with Takemoto Oil & Fat. In FYE 2023, the provision of ambulances and medical equipment was implemented. In FYE 2024, 9 wells were constructed.
  • Support for Small-scale Sesame Farmers in Paraguay
    Through collaboration with Kadoya Oil, support is provided to farmers, including technical guidance, agricultural tools such as seeders and sieves, and provision of seeds.

• Forest
• Stable Supply of Resources

• Cultivate pineapples in Sierra Leone to develop a producing area followed by the development program in the Philippines.
• Start the commercial production and export of pineapple processed foods in Sierra Leone.

• Employment: 1,857 employees as of 2024 March.
• Pineapple Production: 16,000MT in FYE 2024.
• Signed a partnership agreement with a non-profit organization for medical collaboration. Started providing maternal healthcare services to employees, their families, and local residents of Sierra Tropical Limited, a local company.

• We have acquired the MSC fisheries certification for six fishing vessels as of July 2022.
• We have obtained MSC fisheries certification for an additional 19 fishing vessels in June 2023.

• Reduction of waste at the production site (Philippines)
• Reuse of discarded bananas (Japan)

• Reuse of discarded bananas (Philippines): 19,953MT in FYE 2024.
• Reuse of discarded bananas (Japan): 910MT in FYE 2024.

• Pulp
• Woodchips
• Wood products & materials

• Forest
• Supply Chain

• We will endeavor to establish measures to identify and avoid procuring rubber from any suppliers who dispossess indigenous people and develop High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland.
• We support or offer a training to improve yields and quality for natural rubber producers, especially smallholders. We also offer a risk-assessment education that includes modern slavery issue.

• We will establish a traceability system to make uncertain raw material procurement supply chain transparent.
• We will achieve our commitment through the sustainability activity of our unique initiative “PROJECT TREE”.

• We aim to procure raw materials with traceability and sustainability ensured in our natural rubber processing business. (Aiming to achieve 100% traceability for the natural rubber raw materials which we procure by 2025 through an original block chain-based traceability system.)
• We will increase the number of smallholders implementing sustainability training and education, and contribute to achieving sustainability in the natural rubber industry.

• Traceability of the natural rubber raw materials’ procurement reported by suppliers reached 100%.
• Traceability of the natural rubber raw materials’ procurement using our system reached 7.0% up to the collecting points and 0.4% up to the smallholders.
• 3,804 of smallholders implemented sustainability training and education.

• Based on the performance from January to December 2023.

• Capital Introduction
• Pollution Prevention and Resource Recycling

• We are currently in discussions concerning investment and participation in the slag business.
• In FYE 2024, global slag transactions amounted to 1.75 million tons.

• Expand supply channels in order to realize a sustainable and stable procurement of resources.
• Reinforce promotional activities in order to raise the awareness of secondhand mobile phones/tablets.

• Expand product variation and supply channels.
• Expand distribution outlets.

• The number of models handled increased from 671 (FYE 2023) to 856 (FYE 2024). (27.6% increase over the previous year)
• Procurement sources increased from 6 companies (Japan, Hong Kong, and US) in FYE 2023 to 12 companies (Japan, Hong Kong, and US) in FYE 2024.
• Distribution channels remained strong due to sales through major e-commerce companies.

• Appoint several outside Directors, who have a high level of independence that fulfills our independence criteria and are expected to contribute to the company management with a high level of knowledge in their respective fields.
• Maintain a highly transparent and objective Directors’ and officers’ remuneration system, which can increase their motivation to contribute to our medium- and long-term improvement of our company’s performance and the improvement of our corporate value.

• We have maintained the diversity of the Board of Directors (through appointing always one third or higher percentage of outside Directors- 4 outside Directors out of 10 Directors, 2 female Directors out of 10 Directors, 2 female Audit & Supervisory Board Members, and an outside Director and an outside Audit & Supervisory Board Member who had wide range of sufficient experiences in corporate management).
• We have restructured the Governance and Remuneration Committee and the Nomination Committee into the Governance, Nomination and Remuneration Committee, the chair of which being the outside Director and a majority of the members of which being the outside Directors (4 out of 7 members).
• We have maintained the chair of the Women’s Advancement Committee being the female outside Director, and a half of the Women’s Advancement Committee being the outside Directors and the outside Audit & Supervisory Board Members, and the female members (3 out of 6 members respectively).