Metrics and Targets

Evolve Businesses through Technological Innovation

Action Plans

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Division Company	Impact Classification	Issues to Address	Business Area	Commitment	Specific Approach	Performance Indicators	Degree of Progress
Textile Company	Innovation	Improving and increasing the efficiency of business processes	Textile products in general	We will strive to sustain and improve the textile industry by promoting the digital transformation of our entire group.	Contribute to an increase in the efficiency of business processes, the optimization of inventory and the strengthening of customer relationship management in group companies by building a system to utilize IT and data.	Promote the digital transformation of group companies and then aim to increase profits, improve the efficiency of business, cut costs and reduce inventory/disposal losses by utilizing IT and data.	Sales increase was confirmed at JOI'X CORPORATION by consolidating the inventories into “EC inventory” which used to be in stock at several warehouses. We will continue to verify the effects together with other measures. In June 2022, DESCENTE implemented the production DX system “SUPPLYZ fashion”. This will lead DESCENTE, which has the largest product procurement in Textile Company group, to streamline the labour-intensive operations to be more cost-effective.
Metals & Minerals Company	Innovation	Next-generation business development	Mining business Resource-related business Logistics business	We will contribute to improving business efficiency and eliminating concerns about skilled worker availability while fully considering the health and safety of on-site employees.	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.	Promote initiatives that contribute to an improvement in the health and safety of employees at operation sites and in the overall business efficiency.	We signed a memorandum to collaborate in decarbonization and digital transformation with 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 invest and CSN steel work. In FYE 2023, it began the full-scale operation of GE Digital’s operation and asset management software at the CdP Mine. We also agreed to collaborate on decarbonization of the CSN Group mainly at the CdP Mine with Shell, a major resource company.
Food Company	Innovation	Next-generation business development	Overall food-related businesses	We will aim to improve productivity and increase business efficiency in the overall food-related field by promoting systemization of RPA and AI. We will aim to create innovative services and new business by integrating resources and new technologies of the ITOCHU Group.	We will aim to improve productivity and increase business efficiency by introducing and utilizing new systems and new technologies focused on the food distribution field. We will create unique new value by combining the wide ranging product lineup, functions and expertise of our group based on retail customer needs.	Status of promoting business reform in the food-related field with the introduction of AI, RPA and other systems. Status of promoting the development of new products and services through the food wholesale business developed by the ITOCHU Group.	We continue to promote electronic invoicing through data exchange between ITOCHU and its group companies. We have formed a business alliance with sinops Inc., which has demand forecasting capabilities for retailers. We are collaborating with partners (retailers, wholesalers, and manufacturers) to improve logistics efficiency by optimizing the value chain. Our group companies have implemented functions such as automatic ordering and delivery route optimization using AI technologies to promote logistics efficiency and labor-saving operations. We have launched “FOODATA” , the service that supports the effective use of data in the product planning and development processes of food manufacturers.
ICT & Financial Business Company	Innovation	Maintenance of industrial, logistics, and transportation infrastructure	ICT infrastructure development business	We will contribute to realize safe secure, and highly convenient social infrastructure through providing various ICT solutions.	Maximize the added value of our ICT solutions by continuously sourcing new products and services.	Increase the number of partnerships.	We have partnered with five new vendors to provide stable ICT solutions. We provided comprehensive support to our clients in their digitalization and helped them to continue to grow their businesses.
The 8th Company	Innovation	Next-generation business development	Consumer related business	We will aim to create innovative services and new business by integrating assets and new technologies of the ITOCHU Group.	Increase contact with consumers by promoting the retail business in our initiatives to understand consumer behaviors, and combine the wide range of products, functions, and expertise of the Group to create unique new value that will be profitable for consumers and communal society.	Aim to develop new businesses and cultivate new customers by taking full advantage of the business foundations possessed by the ITOCHU Group.	We have entered into a capital and business alliance agreement with Couger Inc. - a company which independently develops virtual human agents with advanced recognition technology. We are utilizing the technology of Couger Inc. to develop an AI model to support store manager operations at FamilyMart stores. We plans to introduce the AI model to approximately 5,000 stores to support store manager operations and provide optimal data tailored to each store's situation and store manager, leading to labor savings and improved store management. ITOCHU, FamilyMart, NTT Docomo and CyberAgent established Data One, an advertising distribution company, in October 2020. Data One sell new targeted advertising products based on actual purchase data in real stores. It is characterized by its provision of a streamlined service including purchase effect verification. It has 29 million ad IDs (as of March 2023) and aims to improve the consumer purchasing experience and digital marketing efficiency. ITOCHU and FamilyMart established Gate One, a media business company using digital signage, in September 2021. We have been installing large signage inside FamilyMart stores, turning stores into a form of media. We have installed signage in 3,000 stores by June 2022. By Feb 2024, we aim to install signage in 10,000 stores. By distributing unique contents that customers enjoy, we will raise our media value and aim to become the third form of media, after TV and the internet.

Address Climate Change (Contribute to a Decarbonized Society)

Action Plans

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Narrow Down: SDGs Targets Impact Classification Issues to Address Business Area Commitment Specific Approach Performance Indicators Degree of Progress

Division Company	Impact Classification	Issues to Address	Business Area	Commitment	Specific Approach	Performance Indicators	Degree of Progress
Machinery Company	Climate Change Opportunities	Taking countermeasures against climate change	Overall power generation business	We will develop power plants with a good balance between renewable energy power generation and conventional power generation, thereby contributing to the development of countries and regions in a sustainable manner that is optimized for each.	Pursue opportunities to invest aggressively in renewable energy power generation through analyses of countries and regions.	FYE 2031: Target to achieve a renewable energy ratio more than 20% (equity interest basis) and reflect this to the future strategy.	We continue to operate wind power projects. (Butendiek and Cotton Plains). We invested in wind farms consisting of Kimball Power Plant (Nebraska, U.S.) and South Fork Power Plant (Minnesota, U.S.) in March 2020. We acquired all equity interests in Bay4 Energy Services, LLC in December 2020. Bay4 Energy Services, LLC operates, maintains and provides asset management services for to approximately 1,500 solar power plants with a total capacity of 2.3 GW in the U.S. We established Tyr Energy Development Renewables, LLC (“TED”) to accelerate the development of renewable energy in the U.S. TED is currently developing approximately 2 million kW of renewable energy assets, primarily solar power plants. Negotiations are also underway to conclude a long-term renewable energy power purchase agreement (PPA). In December 2022, we signed an agreement to invest in the Prairie Switch wind farm (Texas, USA). The project is currently under construction and is expected to be completed by the end of 2023. The renewable energy ratio based on the generation project equity capacity is 16.1% (as of March 2023).
Machinery Company	Climate Change Opportunities	Taking countermeasures against climate change	Zero emission vessels	We will contribute to decarbonization in the shipping and maritime sectors through the promotion of an “integrated project” encompassing the development, ownership and operation of ammonia-fueled ships, the development of fuel supply chains, and fuel procurement.	In addition to the joint development of ammonia-fueled vessels with the Japanese consortium and the ownership and operation of these vessels, ITOCHU will take the lead in the development of supply chain of an ammonia bunkering and fuel procurement, aiming for early materialization of the pilot project.	Establish a value chain centered on ammonia as an alternative marine fuel by promoting the development, ownership, and operation of ammonia-fueled vessels, the development of fuel supply chains, and the procurement of ammonia fuel in an integrated manner. After 2026, promote the spread of ammonia-fueled vessels and the establishment of a supply chains to contribute to the decarbonization of the maritime industry.	Aiming to contribute to the decarbonization of international shipping and build a new business, we are promoting an “integrated project” for ammonia-fueled vessels. The project is developing (1) development of ammonia-fueled vessels, (2) ownership and operation, (3) development of fuel supply chains, and (4) procurement of fuel ammonia in a comprehensive and concurrent manner. In April 2022, we concluded a memorandum of understanding with the Maritime and Port Authority of Singapore to promote the development of ammonia bunkering facilities in Singapore, together with partner companies that are developing bunkering facilities in the country. ITOCHU and partners are promoting the establishment of a safe fuel supply system and the development of ammonia bunkering vessels. In November 2022, together with partner companies jointly selected for the Green Innovation Fund project, we obtained Approval in Principle from Nippon Kaiji Kyokai for the basic design of a large ammonia-fired bulk carrier. The development of ammonia-fired large bulk carriers is underway with safety in mind. As part of the project, ITOCHU is facilitating “Joint Study” as a framework for organizing and discussing common issues related to the introduction of ammonia as an alternative marine fuel, with 34 domestic and foreign companies and organizations, including major resource companies, energy companies, steel manufacturers, shipping companies, and shipbuilders. In April 2022, the “Joint Study for Ammonia Bunkering Safety” was newly launched as a framework for exchanging opinions on ammonia bunkering safety standards with major port authorities and related industry players, and its activities will be expanded in cooperation with the existing “Joint Study”. More than 50 presentations were made by concerned parties and experts.
Machinery Company	Climate Change Opportunities	Taking countermeasures against climate change	Sales of passenger cars and commercial vehicles	We will achieve the eco-friendly mobility society by strengthening　businesses of electric vehicles (EVs), hybrid vehicles (HVs), vehicles with a reduced environmental impact, and those related.	Contribute to spread of eco-friendly vehicles by increasing business of eco-friendly and high-efficiency products, such as EVs, HVs, vehicles with a reduced environmental impact, and related parts.	Expand sales of eco-friendly products in response to the expanded lineup of EVs, HVs, vehicles with a reduced environmental impact, and similar vehicles from automakers as our business partners.	We have invested in a ride sharing service company called Via (2019). We have been providing efficient transport system to mainly rural areas. We have been participating in a small electric truck demonstration experiment since January 2019 and in developing features around EVs, and have started to provide various solutions as a partner of ISUZU “EVision”, total solution program for ISUZU EVs in Japan market. We aim to reduce environmental load through shifting to EVs and also shifting to renewable energy with EVs. In Sep 2021, “Combination of developing battery-exchangeable EVs and utilizing renewable energy Sector coupling demonstration project” was adopted as the Ministry of the Environment-commissioned project. We aims to commercialize battery-exchangeable EVs and as the owner of this project. In November 2022, the demonstration and operation started with a prototype (Two battery-exchangeable EV trucks, six battery packs, and one battery-exchange station) developed and manufactured under the project. We have invested in 2018 in China called Dishangtie Car Rental, an electric commercial vehicle rental and maintenance service. We have engaged a MOU to study about expanding such EV maintenance rental and leasing to abroad countries.
Machinery Company	Water Resources Pollution Prevention and Resource Recycling	Improving water and sanitation infrastructures	Water and environmental projects	We will contribute to improve the sanitary conditions, the development of economic activities, and the protection of the global environment through the appropriate treatment and effective use of water and waste.	Expand water and environment projects to promote the appropriate use and treatment of water and the effective utilization of resources, and reduce the burden on the environment.	Expand and diversify the investment portfolio in the water and environment field. (Plan to work on decarbonization project development utilizing JCM etc.)	■Water Field We have developed a water supply service business in the U.K. and seawater desalination business in Australia and Oman. We aim to continue contributing to stable water supply in regions through seawater desalination, and water supply/ and sewerage businesses. At the same time, we are looking to be involved in solutions-based business for water issues in each industrial sector across a range of industries. ■Environmental Field We operate four municipal solid waste incineration and power generation plants(waste to energy plant) in the U.K, which treat 1.3 million tons of waste annually, accounting for 15% of the UK's waste incineration market, and generate enough electricity to power 160,000 British households. In November 2020, we acquired a 20% stake in Environment Development Company Ltd. (current SSES), which provides integrated hazardous waste management services in Jubail Industrial City in Saudi Arabia. In August 2021, we started to provide the government of Serbia with partial service of energy-from-waste project. Appropriate treatment of municipal solid waste in City of Belgrade and reduction of environmental pollution and greenhouse gas emissions has begun without environmental loads. Recycling of construction waste has also begun. We are currently constructing a municipal solid waste incineration and power generation plant(waste to energy plant). 7 SDGs certified, with an expected reduction of approximately 210,000 tons of greenhouse gas emissions, and, in 2022, the project obtained Certification of Carbon Credit by Gold Standard. In December 2020, we entered a concession agreement for the development and operation of an Energy-from-Waste (EfW) plant with Dubai Municipality. This is the first EfW project in Dubai and will be one of the largest EfW plants in the world, processing half of municipal solid waste from the emirate per year (1.9 million tons), which is currently under construction. We are aiming to enhance the functions of our initiatives that to capture strong demand for waste management services in light of intensifying environmental regulations in each the industrial sector and the growing awareness of ESG and SDGs more generally in the same way as in the water field.
Metals & Minerals Company	Climate Change Opportunities Capital Introduction	Taking countermeasures against climate change	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 as next-generation resources and raw materials 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 as next-generation resources and raw materials 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).	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) through our supply chains toward the realization of a sustainable society. 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, and strengthening of cooperation with the REVER HOLDINGS CORPORATION (current TRE HOLDINGS CORPORATION) general recycling company we invested into last year. 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 are promoting to realize the Platreef project and others in the PGM/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 this technology for the Japanese market. In July 2022, we signed an MOU with TAISEI CORPORATION to begin verification of the use of this calcium carbonate as raw materials for concrete. We are promoting the examination of other carbon dioxide capture, utilization and storage (CCUS) technologies and various initiatives that will lead to a reduction in CO₂ emissions. As per the Medium-Term Management Plan, 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. We are currently promoting business in North America with Nikkeikin Aluminum Core Technology Company, Ltd. which we invested into in FYE 2020 for the manufacturing of aluminum parts for automobiles. It started commercial production in the beginning of 2023. In addition, we will continue to promote aluminum raw material and product trading to contribute to the development of lighter-weight vehicles.
Energy & Chemicals Company	Transition Risk Stable Supply of Resources	Stably supplying energy taking into account climate change and the environment	Oil/gas interests and liquefied natural gas (LNG) projects	We will produce resources (transition fuels) taking into account a reduction in greenhouse gases. We will provide a stable supply of energy to contribute to the development of industry and the construction of infrastructure.	Work on resource development projects in collaboration with superior partners who have advanced technical capabilities and abundant experience.	Pursue opportunities to participate in gas projects with a relatively low environmental burden in fossil fuels and as raw material source of the low-carbon fuel while keeping in mind the stable supply of energy in the transition phase toward the realization of a sustainable society.	To realize a sustainable society through the stable supply of energy, we continue to discuss with competent partners ways to participate in new upstream projects and collaborate on decarbonization as a transition fuel and raw material source of low carbon.
Energy & Chemicals Company	Climate Change Opportunities	Energy use that takes into consideration local communities and the environment	District heating and cooling	We will promote initiatives toward environmentally friendly regional energy use.	Communicate appropriately with neighboring stakeholders in the Jingu Gaien district.	Maintain the stable operations of district heating and cooling in the Jingu Gaien district and promote the spread of it to neighboring areas.	We are continuing discussions with the relevant stakeholders to spread and promote district heating and cooling to neighboring areas.
Energy & Chemicals Company	Climate Change Opportunities	Efforts to optimally and continuously supply renewable energy	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.	We will continue to sell Energy Storage System equipped with optimal charging/discharging software based on machine learning (AI) and we will establish a recycling and reuse business with repurposed batteries from EV.	Number of storage batteries sold. Use of recycled and reused batteries.	We have sold a cumulative total of approximately 55,000 units (539 MWh) of energy storage systems as of the end of March, 2023. ITOCHU signed a Capital and Business Alliance with Lunar Energy, a newly launched clean tech company in the U.S. ITOCHU will continue to promote the installation and sales of Gridshare in the “Smart Star” series of residential ESS in the Japanese market and to promote Gridshare as the best global platform for controlling distributed energy resources and will contribute to realize distributed energy in a decarbonized society. ITOCHU conducts Demand Response POC with Japanese power companies, by using its residential ESS networks. Executed an investment in Power X, which aims to build one of the largest battery solution manufacturing factory in Japan. We aiming to promote fast EV charge stations through this investment. ITOCHU signed a Strategic Partnership MOU with ZF, for the joint feasibility study of comprehensive decabonization service by utilization of EV on-board battery. A recycling demonstration is underway using waste batteries from household battery storage system with the aim of establishing a recycling chain and traceability.
Energy & Chemicals Company	Stable Supply of Resources Capital Introduction	Working on new fuel initiatives toward the realization of a carbon-neutral society / recycling-orientated low-carbon society	Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels	We will aim to build a production and supply structure for new fuels to contribute to the reduction of greenhouse gases on a life cycle assessment basis toward the realization of a sustainable society.	Work on hydrogen and ammonia which are expected to serve as next-generation energies and fuels that do not emit carbon dioxide when burned. Also work on renewable fuels (derived from waste oils) to contribute to the reduction of greenhouses gases emitted from aircraft and large vehicles that are difficult to convert from internal combustion engines.	Build a new fuel value chain to be able to realize production, efficient transportation and supply by utilizing collaboration with superior partners and our track record in development and trading.	【Hydrogen and Ammonia】 Continuing to collaborate with ITOCHU ENEX Co., Ltd. and Air Liquide Japan G.K. on hydrogen refueling stations (HRS), following the successful development of Japan's first HRS for large commercial vehicles at Motomiya Interchange, Fukushima Prefecture, which is scheduled to begin operating in the first half of 2024. Conducting detailed studies on a joint project to manufacture and sell blue ammonia in Canada with Petroliam Nasional Berhad, Malaysia's national oil company, and Inter Pipeline Ltd., a major regional infrastructure enterprise. 【Renewable Diesel (RD) and Sustainable Aviation Fuel (SAF)】 Procuring RD produced by Neste OYJ for use in convenience store delivery vehicles, tank trucks, and fueling stations with ITOCHU ENEX Co., Ltd. Supplying SAF: (i) produced by Raven SR, Inc. to All Nippon Airways Co., Ltd. and Japan Airlines Co., Ltd.; and (ii) produced by Neste OYJ to Etihad Airways PJSC from October 2022. Selected by the Civil Aviation Bureau (Ministry of Land, Infrastructure, Transport and Tourism) to carry out the “Imported Neat SAF Model Demonstration Project” to import neat SAF from Neste OYJ, blend it with fossil-based jet fuel in Japan, and establish a supply chain to transport it to airports. Invested in Impact Bioenergy, a U.S. based startup that manufactures and sells equipment to produce biogas from food waste through anaerobic digestion.
Energy & Chemicals Company	Capital Introduction	Working on initiatives in carbon dioxide capture and storage (CCS) business toward the realization of a carbon-neutral society and inclusive and sustainable economic growth	Building of CO₂ capture chains using CCS	We will aim to build CO₂ capture chains to contribute to the reduction of greenhouse gases toward the realization of a sustainable society.	Refine CO₂ storage technologies - an application of petroleum development technologies - and enhance access to CO₂ capture chains (e.g., collection and transportation) to link them to CO₂ storage technologies.	Build a CO₂ transportation and storage business model by uncovering CO₂ capture needs at places where CO₂ is emitted in client industries across our companies.	Together with ITOCHU Oil Exploration Co., Ltd., we joined the Geological Carbon Dioxide Storage Technology Research Association to participate in a project to research and develop technologies for underground sequestration of carbon dioxide. In connection with the comprehensive CCS strategy formulated by Japan’s Ministry of Economy, Trade and Industry, we are studying with our consortium partners the feasibility of a CCS value chain project using ship transportation. We aim to build a business model for the CO₂ capture chain through these initiatives.
Energy & Chemicals Company	Climate Change Opportunities	Working on initiatives to optimally and continually supply renewable energy	Renewable energy independent power producers (IPPs) / renewable energy-related materials procurement / dispersed power source initiatives	We will realize a stable supply of renewable energies through the development, ownership and operation of renewable energy power plants (solar power, biomass and wind power). We will stimulate renewable energy power generation inside and outside of Japan through renewable energy-related materials procurement. We will realize a world where renewable energy is commonplace by spreading solar power generation as an independent power source that does not rely on the power gird through the deployment of solar power dispersed power sources.	Expand the scale of our renewable energy assets with the stable operation and new development of renewable energy plants and establish dispersed power sources in Japan with a focus on the conversion to virtual power plants (VPP).	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 555 on-site photovoltaic power plants (combined output is appx 120,000kW) across Japan through VPP Japan, Inc. We have commenced the provision of corporate PPA for the provision of electric power generated from off-site photovoltaic power plants in Japan to Amazon.com, Inc. through Clean Energy Connect Co., Ltd., our portfolio company. (Feb, 2023)
Food Company	GHG Emissions	Taking countermeasures against climate change	Fresh food field	We will examine and promote measures that contribute to tackling climate change.	We will utilize green energy in our processed food business.	New boiler and power plant operating situation. Situation of the utilization of raw materials in boilers and power plants. (1) Situation of the utilization of all food residue generated in pineapple processing factories. (2) Situation of the utilization of non-standard products that cannot be sold as food, generated in banana plantations.	2nd biogas plant (Polomolok plant) was started to be operated on July, 2022. (1st biogas plant (Surallah plant) was activated on Dec, 2021) Result of utilization of processed pineapple residue : 97,566MT in 2022.
General Products & Realty Company	Capital Introduction	Taking countermeasures against climate change	Cement substitute material such as slag	We plan to expand the use of sustainable byproducts (slag) as a substitute material for the cement which is vital for construction and civil engineering.	Establish continuous, stable business between Steelworks as the supplier of slag and Users.	Consider investment, participation, etc. in the slag business and focus initiatives on creating demand, especially in developing countries, with the aim of establishing continuous, stable business.	We are currently in discussions concerning investment and participation in the slag business.

Division Company	Impact Classification	Issues to Address	Business Area	Commitment	Specific Approach	Performance Indicators	Degree of Progress
Machinery Company	Food Safety	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	DENBA products and related business	We will contribute to the reduction of food loss by utilizing freshness preservation technology, DENBA and to the improvement of nutritional condition by the availability of fresh food through Food Bank and children's cafeteria.　Furthermore, we aim to increase the working opportunity of persons with disabilities and supply of agricultural products utilizing the hydroponic farming.	Installation of DENBA technology to food supply chain and familiarizing the combination of hydroponic farming with disabled employment.	Expand sales of DENBA products in the food supply chain (more than JPY300mil sale in FYE 2024), maritime chamber (more than 200vessels in FYE 2024) and refrigerated containers for children's cafeteria (more than 5cases in FYE 2024). Opening hydroponic farming plant with disabled employment (one pilot project in FYE 2024).	Continuously supporting sales of DENBA, in particular DENBA Fryer which enables to reduce cooking oil amount of professional electric fryer. It realizes substantial reduction of waste oil. Total number of sales of DENBA Marine for maritime chamber achieved 200units. Until 2022 more than 10 use cases of Refrigerated containers with DENBA's freshness preservation units for children's cafeteria have been accomplished. More and more operators of children's cafeteria are approaching to DENBA so further use cases will be seen in 2023.
Energy & Chemicals Company	Medical Health	Promoting good health among people	Pharmaceutical products	We will contribute to improve people's health and working environment through accelerating the development of pharmaceuticals and other products in fields with significant needs including cancer-related fields.	Actively promoting to support the development and marketing of new pharmaceutical and generics.	Aim to accelerate the deployment of pharmaceuticals on the market, obtain early approvals for new pharmaceutical, generics and other products of which we are engaged in supporting the development and place them on the market.	Continuing to support the development of generics by ITOCHU CHEMICAL FRONTIER Corporation, several types of pharmaceuticals have been launched. We have continued to sell a pain reliever in North America through ITOCHU CHEMICAL FRONTIER Corporation.
Food Company	Food Safety	Supplying safe, secure food	Overall food-related businesses	We will select and concentrate on suppliers to stably procure safe, secure food.	We will aim to strengthen the food safety management structures in our suppliers. We will do this by persons with certifications/qualifications related to the Food Safety Management System (FSMS) taking the central role in enhancing supplier audits and making requests for improvements.	Stably supply safe and secure food by enhancing the audits and guidance for suppliers mainly by persons with certifications/qualifications related to the Food Safety Management System (FSMS).	We are continuing to stably supply safe and secure food. We are achieving this by continuing to enhance the audits and guidance for suppliers mainly by persons with certifications/qualifications related to the Food Safety Management System (FSMS) or in-house qualification holders related to factory audit.
ICT & Financial Business Company	Innovation	Evolve business through technological innovation	Business incubation through venture investments, focusing on FinTech, IoT, AI and Remote technologies	Challenge to create new businesses by utilizing cutting-edge innovations and service models in the FinTech, IoT, AI and Remote technology sectors.	Seek opportunities to invest in and partnership with various startups, so as to develop new businesses.	Realization of new services and businesses.	Continuing on from the previous fiscal year, we have additionally invested in 6 venture companies in and outside of Japan within the new technology and healthcare fields, of which some were invested via non-domestic funds. We are currently working with these companies to develop new businesses. For example, we are making an attempt to collaborate with a venture company that provides AI solution for detecting cardiac abnormalities by using electrocardiograms, to provide the solution to the medical institutions in Japan.
ICT & Financial Business Company	Medical Health	Promoting good health among the people	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. (Data volume of the number of people subject to health checkup, to reach 1.2 million by the end of FYE 2022.) Increase the penetration of advanced medical devices in Japan.	ITC has formed a capital alliance with a medical data company in FYE 2023. ■MRI-guided radiation therapy systems The radiotherapy treatment system which we delivered to National Cancer Center Hospital, Saitama Medical University International Medical Center, and Edogawa Hospital are treating a cumulative total of 600 cancer patients including patients were difficult to treat with conventional methods. Edogawa Hospital as well as National Cancer Center Hospital (finished upgrade to latest system on June. 2022) has been treating intractable cancer and Saitama Medical University International Medical Center will be starting treatment at the end of March 2023. Also, Shin-Matsudo Central General Hospital will going to install the system by the end of this year. ■Scalp cooling therapy system for cancer patients The system has been highly evaluated by patients and medical professionals for its effectiveness in suppression of decreasing hair loss caused by anticancer drug treatment, mainly among breast cancer patients. In the end of FYE 2023, 80 system machines(Sales:43, Rental: 37) have been operated in 26 prefectures and treated a cumulative total of 2,000 patients at 64 facilities in Japan.
ICT & Financial Business Company	Retail Finance	Providing financial services	Domestic and overseas retail finance business	We work on expanding and creating the retail financial market and providing financial services to individuals to contribute to enriching people's lives.	Increase the number of customers and loan balance by expanding and creating the retail financial market.	The number of customers and loan balance.	Growth Rate of Outstanding Lendings: (From the end of March 2022 to end of March 2023) UAF: 91.8% EasyBuy: 102.5% FRF: 120.6% ACF: 145.0% Operation started in 2018 PDP: 187.2% Operation started in 2018 EB, FRF and ACF have continued to show a steady growth during the past year, yet UAF's outstanding lendings decreased by reason of the massive repayment of significant loans. PDP is executing an exit strategy due to the inadequateness of profit planning.

Ensure Stable Procurement and Supply

Action Plans

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Narrow Down: SDGs Targets Impact Classification Issues to Address Business Area Commitment Specific Approach Performance Indicators Degree of Progress

Division Company	Impact Classification	Issues to Address	Business Area	Commitment	Specific Approach	Performance Indicators	Degree of Progress
Textile Company	Supply Chain	Reducing our environmental burden in manufacturing processes	Textile products in general	We will promote the building of value chains starting from raw materials focused on sustainable materials.	Promote the RENU project aiming to realize a circular economy in textile industry. Aim to further enhance and expand the handling of sustainable materials.	Contribute to fostering of environmental awareness and reducing our environmental burden by promoting the RENU project and further enhancing and expanding the handling of sustainable materials. Work for the goal of “Zero Fashion Loss” and “Carbon Neutrality” committed by Japan Sustainable Fashion Alliance to achieve by 2050.	Started the clothing collection service “WEAR TO FASHION” along with investment to ECOMMIT Corporation. By reusing the collected clothes and using some of them as raw materials for “RENU”, the “RENU” project will further promotes a circular economy. The Japan Sustainable Fashion Alliance made policy proposals to Consumer Affairs Agency, Ministry of Economy, Trade and Industry, and Ministry of the Environment for “zero fashion loss” and “carbon neutrality” this fiscal year.
Textile Company	Supply Chain	Establishing a supply chain reflecting consideration for human rights and the environment	Textile products in general	We will promote dealings with companies which respect human rights and which engage in environmental management throughout their entire supply chains.	Strive to understand at an early stage the human rights, social and environmental risks in supply chains by continually conducting surveys on major suppliers.	Conduct on-site visit surveys and questionnaires at more than 50 major suppliers a year on an ongoing basis.	Textile Company conducted human rights due diligence in FYE 2023. We screened domestic and overseas suppliers for all businesses, obtained questionnaire responses from 105 companies, and conducted on-site surveys at 4 companies. As a result, it was confirmed that there were no specific matters related to human rights issues. In the next fiscal year's supplier survey, we will continue to monitor the companies which do not yet have established internal manuals or regulations.
Metals & Minerals Company	Stable Supply of Resources	Stable supply of industrial resources and materials	Mining business	We will contribute to the stable operation of various industries by maintaining and developing reliable supply chains for essential raw materials and fuels.	Acquire equity interests in superior projects to secure resources to form the basis for the steady supply of raw materials and fuels.	Acquisition of superior resource projects to pass on to the future generations, in addition to maintaining and expanding our existing portfolio of highly resilient mining projects.	For the purpose of acquiring superior resource interests that will lead to the next generation, we are continuing to steadily develop Allegheny (Longview) coking coal mine in the USA that we invested into in FYE 2020. Production began at the Western Ridge iron ore deposits, in which we acquired a partial interest in FYE 2022 from major resource company BHP, which maintains and strengthens the cost competitiveness of the Western Australian Iron Ore operations. In FYE 2023, we invested in the AMMC iron ore mine in Canada operated by steel giant ArcelorMittal and others, acquiring superior interest that will enable us to secure a stable long term supply of high grade iron ore, demand for which is expected to increase due to the accelerating shift to low carbon emission steel production.
Metals & Minerals Company	Mining Electric Power・Mining・Oil and Gas Fields	Sustainable mine development that pays continuous careful attention to the risks in occupational safety and health and environmental risks, and that contributes to local communities' well-being	Mining business	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) training courses for supervisors and company employees belonging to sections engaged in resource development. The attendance rate of those subject to this training was 100%. We checked the proper compliance to the EHS guideline by one new project and seven existing projects in our mining business, and also by one another resource-related project. We carried out activities that contribute to the local community as part of each project we invest in.
Energy & Chemicals Company	Plastic	Efforts leading to solutions to social problems	Plastic-related environmental response	We will contribute to solving social problems (e.g., marine plastics and waste plastics) that urgently require measures with a plastic-related environmental response.	Supply environmental materials and establish a recycling/reuse program in collaboration with brand owners.	Build a recycling-oriented-model by enhancing our handling of environmental materials and establishing a recycling/reuse program.	We developed an eco-friendly paper packing material consisting of nature-derived, biodegradable resins produced by Lactips, a bio startup with Ajinomoto Co., Inc., TOYO INK CO., LTD, and ITOCHU PLASTICS INC. (May, 2022) We have conducted demonstration trial on recycling of plastic beverage bottles with the use of a prototyped traceability system at real FamilyMart store under the BLUE Plastics project. (July, 2022) We have offered recycled ocean plastic waste as a recycled raw material to MITSUBISHI PENCIL CO., LTD., and MITSUBISHI PENCIL has developed a ballpoint pen that partially makes use of this raw material. This product was the first in the stationary industry to receive Eco Mark certification using ocean plastic as a raw material. (July, 2022)
Energy & Chemicals Company	Stable Supply of Resources Capital Introduction	Working on new fuel initiatives toward the realization of a carbon-neutral society / recycling-orientated low-carbon society	Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels	We will aim to build a production and supply structure for new fuels to contribute to the reduction of greenhouse gases on a life cycle assessment basis toward the realization of a sustainable society.	Work on hydrogen and ammonia which are expected to serve as next-generation energies and fuels that do not emit carbon dioxide when burned. Also work on renewable fuels (derived from waste oils) to contribute to the reduction of greenhouses gases emitted from aircraft and large vehicles that are difficult to convert from internal combustion engines.	Build a new fuel value chain to be able to realize production, efficient transportation and supply by utilizing collaboration with superior partners and our track record in development and trading.	【Hydrogen and Ammonia】 Continuing to collaborate with ITOCHU ENEX Co., Ltd. and Air Liquide Japan G.K. on hydrogen refueling stations (HRS), following the successful development of Japan's first HRS for large commercial vehicles at Motomiya Interchange, Fukushima Prefecture, which is scheduled to begin operating in the first half of 2024. Conducting detailed studies on a joint project to manufacture and sell blue ammonia in Canada with Petroliam Nasional Berhad, Malaysia's national oil company, and Inter Pipeline Ltd., a major regional infrastructure enterprise. 【Renewable Diesel (RD) and Sustainable Aviation Fuel (SAF)】 Procuring RD produced by Neste OYJ for use in convenience store delivery vehicles, tank trucks, and fueling stations with ITOCHU ENEX Co., Ltd. Supplying SAF: (i) produced by Raven SR, Inc. to All Nippon Airways Co., Ltd. and Japan Airlines Co., Ltd.; and (ii) produced by Neste OYJ to Etihad Airways PJSC from October 2022. Selected by the Civil Aviation Bureau (Ministry of Land, Infrastructure, Transport and Tourism) to carry out the “Imported Neat SAF Model Demonstration Project” to import neat SAF from Neste OYJ, blend it with fossil-based jet fuel in Japan, and establish a supply chain to transport it to airports. Invested in Impact Bioenergy, a U.S. based startup that manufactures and sells equipment to produce biogas from food waste through anaerobic digestion.
Food Company	Supply Chain	Establishing a supply chain reflecting consideration for human rights and the environment	Provisions field	We will develop a procurement structure compliant with third-party body certification and supplier-specific codes of conduct.	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: Promotion of procurement of products compliant with supplier-specific codes of conduct or certified products based on our procurement policy. Cacao beans: Promotion of procurement of products compliant with supplier-specific codes of conduct (sustainable products) based on our procurement policy. Palm oil: Procurement of palm oil based on our procurement policy. Promotion of the disclosure of the set KPI indicators and supplier information. <2030> Coffee beans: Aim for a 50% switch to sustainable coffee beans. Cacao beans: Aim for a 100% switch to sustainable coffee beans. Aim for a 100% switch to sustainable palm oil.	Coffee beans：Regarding FYE 2023, our quantitative target 15% or more was achieved with the result of 28%, and its target for FYE 2024 should be 20% or above. In addition, from June 2022, we partially started disclosing BtoB level digital traceability information to our customers by using Farmer Connect (Coffee traceability platform). Cacao beans (traceable products): achieved 66% (5,975MT of traceable beans out of 9,025MT 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 24% Oleo Chemical Products 65%
Food Company	Forest Stable Supply of Resources	Establishing a supply chain reflecting consideration for human rights and the environment	Fresh food field	We will contribute to increased employment and an improved living environment by fostering local industries.	We will diversify producing areas to disperse weather risks in our Dole business. In addition, we will develop new producing areas to expand employment and improve the living environment through the growth of local industries.	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: about 1,800 as of 2023 March. 2022 Pineapple Production Estimate: 12,000tons.
Food Company	Supply Chain	Responsible Fisheries Procurement	Fresh food field	We will develop a procurement structure compliant with third-party body certification and supplier-specific codes of conduct.	Promote procurement in accordance with the supplier's own code of conduct in the country of origin of the tuna.	Develop a tuna procurement policy and promote procurement of products and certified products that comply with the policy.	We have acquired the MSC fisheries certification for six fishing vessels as of July 2022. ITOCHU and fishing companies are currently applying the second MSC fisheries certification for 19 vessels in addition to the above 1st MSC certification.
Food Company	Pollution Prevention and Resource Recycling	Supply and use of environmentally friendly resources and materials	Fresh food field	Through the reduction of food loss, we will contribute to the promote the effective use of the resources and reduce the environmental impacts.	The company will brand and commercialize the out-of-spec Dole bananas discarded in Japan and Philippines as Mottainai bananas and distribute them in the market again.	Consider diversifying this movement into processed foods and developing new products by using raw materials other than bananas. Aim to increase the volume of the reused bananas.	Manufacturing of Banana-derived products using former-waste bananas in the production site(Philippines) is ongoing. (Total banana usage: about 670Tons) Dole National Brand products: Chocolate-coated frozen bananas, Jelly products Dole products with brand license contracts: Ice cream (Lotte), banana-flavored milk (Family Mart), Snacks&Bread (Tokyo Banana, etc) We processed off spec banana, which is supplied to FMPB (“Famimaru”), into puree and supplied the puree for the processed FM foods such as beverage. Promotions are being continued in key locations such as Dean & Deluca and banana juice shops (7days BANANA, BANANA STAND etc). Number of media exposure as of Mar, 2023. end: 1,101 Reused Banana as of Mar, 2023. end: about 200,000 bunches (equivalent to 30 tons)
General Products & Realty Company	Forest	Using sustainable forest resources	Pulp Woodchips Wood products & materials	We deal in sustainable forest resources to reduce the impact on the environment and prevent the increase of greenhouse gases.	We handle certified or high-level management confirmed materials.	Ensure a 100% handling ratio of certified or high-level management confirmed materials.	In FYE 2023, 100% of our Pulp, Wood Products & Materials transactions and 97% of our Woodchips transactions were handled as certified material or were intensely managed.
General Products & Realty Company	Forest Supply Chain	Realization of sustainable supply of natural rubber	Natural Rubber	We will strive 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, named “PROJECT TREE”.	We aim to procure raw materials with traceability and sustainability ensured in 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.	In FYE 2023, 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 4.5%. 4,128 of smallholders implemented sustainability training and education.
ICT & Financial Business Company	Pollution Prevention and Resource Recycling	Provide products/services that support the realization of a sustainable lifestyle.	Reuse / Recycling Business	Contribute to the development of a sustainable society by making most of limited resources through the distribution of used mobile phones and tablets in the Japanese market.	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 534 (FYE 2022) to 671 (FYE 2023). (25.6% increase over the previous year) Procurement sources increased from 3 companies (1 country: Japan) in FYE 2022 to 6 companies (3 countries including Japan, Hong Kong, and US) in FYE 2023. As for distribution channels, sales on major EC business operator were launched and maintained a favorable level.

Maintain Rigorous Governance Structures

Action Plans

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Narrow Down: SDGs Targets Impact Classification Issues to Address Business Area Commitment Specific Approach Performance Indicators Degree of Progress

Division Company	Impact Classification	Issues to Address	Business Area	Commitment	Specific Approach	Performance Indicators	Degree of Progress
Headquarters	Governance	Maintaining and reinforcing a governance system for achieving sustainable growth	Corporate governance	We will implement highly effective supervision over the management from an independent and objective standpoint and ensure the appropriate and efficient execution of business operations by improving the transparency of our decision-making, aiming to our sustainable growth as well as the medium- and long-term improvement of our corporate value.	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.	Continue to implement measures to strengthen the supervising function of the Board of Directors, through an annual evaluation of the Board of Directors.	(1) We have maintained the diversity of the Board of Directors (through appointing always one third or higher percentage of outside Directors- four outside Directors out of 10 Directors, two female Directors out of 10 Directors, a female Audit & Supervisory Board Member, and an outside Director and an outside Audit & Supervisory Board Member who had wide range of sufficient experiences in corporate management). (2) We have maintained the chair of the Governance and Remuneration Committee and the Nomination Committee being the outside Director, and a majority of the members of the Governance and Remuneration Committee and the Nomination Committee being the outside Directors and the outside Audit & Supervisory Board Members (four out of 7 members). (3) 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 female members (3 out of 6 members respectively).
Headquarters	Governance	Ensuring compliance	Compliance	We will make employees more aware that ensuring compliance at any time is our contribution to the company and society.	Recognizing attitude of employees identifying issues and ensuring action plans to tackle the issues through periodic compliance attitude survey and direct communications.	Continuous direct communication with employees through face-to-face training programs whose contents shall be updated along with monitoring the measures according to risks, expectations from society and issues on site which will change with the time.	In the period of April-May 2022, we conducted “Monitor and Review” of the ITOCHU Group's compliance system for FYE 2022, which covered 452 organizations, including ITOCHU Corporation's all divisions in head quarter, all domestic branches, overseas blocks, and ITOCHU Group companies and their subsidiaries. The purpose is to understand and promote the status of the compliance system in each organization. In the period of September-November 2022, we conducted the monitoring survey on compliance with “the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade” and “the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors” in ITOCHU Corporation and 63 ITOCHU Group companies in Japan. In the course of such survey, we performed individual hearings and fact-finding investigations based on answers to questionnaire in certain prescribed format, as a result of which we found no serious concern on that. In the period of Dec/2022-Feb/2023, we identified compliance-related cases occurred in ITOCHU Group companies, for which recurrence prevention measures were formulated in FYE 2022 and monitoring was thought to be highly necessary. As a result of the monitoring on the implementation status of the formulated measures, we confirmed that they were properly implemented. The status of our periodical on-site compliance training seminars in FYE 2023 is as follows: For ITOCHU Corporation: 3,263 employees (who all watched the training video); For ITOCHU Group companies in Japan: 14,872 employees in total, of which (i) the webinar sessions and/or on-site sessions were provided for 49 companies in 86 occasions with 7,108 attendees; and (ii) the training video were provided to 7,764 viewers of 28 companies (including companies that participated in webinar courses as well).
Headquarters	Governance	Maintaining and reinforcing a governance system for achieving sustainable growth	Risk management	We will build a system for group risk management and maintain it to manage the risk of loss and ensure the appropriateness of our corporate group's operations.	Conduct regular reviews of risk management systems that have been established, including internal committees and risk management departments, various rules and regulations, reporting and monitoring systems, as well as the effectiveness of such systems.	Maintain a firm governance system in the medium- and long-term by establishing a PDCA cycle, including development and implementation of action plans by the departments responsible for risk management, and monitoring and reviews by internal committees.	We reviewed the progress of the action plans of the FYE 2023 submitted by each risk management responsible divisions. Including all issues dealt during the period, we reported to the Internal Control Committee that Itochu's internal risk management system is active, which was held in October 2022 (review of the first half of FYE 2023), and in April 2023 (review of the second half of FYE 2023, and the action plans for FYE 2024).

Division Company	Impact Classification	Issues to Address	Business Area	Commitment	Specific Approach	Performance Indicators	Degree of Progress
Headquarters	Governance	Maintaining and reinforcing a governance system for achieving sustainable growth	Corporate governance	We will implement highly effective supervision over the management from an independent and objective standpoint and ensure the appropriate and efficient execution of business operations by improving the transparency of our decision-making, aiming to our sustainable growth as well as the medium- and long-term improvement of our corporate value.	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.	Continue to implement measures to strengthen the supervising function of the Board of Directors, through an annual evaluation of the Board of Directors.	(1) We have maintained the diversity of the Board of Directors (through appointing always one third or higher percentage of outside Directors- four outside Directors out of 10 Directors, two female Directors out of 10 Directors, a female Audit & Supervisory Board Member, and an outside Director and an outside Audit & Supervisory Board Member who had wide range of sufficient experiences in corporate management). (2) We have maintained the chair of the Governance and Remuneration Committee and the Nomination Committee being the outside Director, and a majority of the members of the Governance and Remuneration Committee and the Nomination Committee being the outside Directors and the outside Audit & Supervisory Board Members (four out of 7 members). (3) 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 female members (3 out of 6 members respectively).
Headquarters	Governance	Ensuring compliance	Compliance	We will make employees more aware that ensuring compliance at any time is our contribution to the company and society.	Recognizing attitude of employees identifying issues and ensuring action plans to tackle the issues through periodic compliance attitude survey and direct communications.	Continuous direct communication with employees through face-to-face training programs whose contents shall be updated along with monitoring the measures according to risks, expectations from society and issues on site which will change with the time.	In the period of April-May 2022, we conducted “Monitor and Review” of the ITOCHU Group's compliance system for FYE 2022, which covered 452 organizations, including ITOCHU Corporation's all divisions in head quarter, all domestic branches, overseas blocks, and ITOCHU Group companies and their subsidiaries. The purpose is to understand and promote the status of the compliance system in each organization. In the period of September-November 2022, we conducted the monitoring survey on compliance with “the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade” and “the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors” in ITOCHU Corporation and 63 ITOCHU Group companies in Japan. In the course of such survey, we performed individual hearings and fact-finding investigations based on answers to questionnaire in certain prescribed format, as a result of which we found no serious concern on that. In the period of Dec/2022-Feb/2023, we identified compliance-related cases occurred in ITOCHU Group companies, for which recurrence prevention measures were formulated in FYE 2022 and monitoring was thought to be highly necessary. As a result of the monitoring on the implementation status of the formulated measures, we confirmed that they were properly implemented. The status of our periodical on-site compliance training seminars in FYE 2023 is as follows: For ITOCHU Corporation: 3,263 employees (who all watched the training video); For ITOCHU Group companies in Japan: 14,872 employees in total, of which (i) the webinar sessions and/or on-site sessions were provided for 49 companies in 86 occasions with 7,108 attendees; and (ii) the training video were provided to 7,764 viewers of 28 companies (including companies that participated in webinar courses as well).
Headquarters	Governance	Maintaining and reinforcing a governance system for achieving sustainable growth	Risk management	We will build a system for group risk management and maintain it to manage the risk of loss and ensure the appropriateness of our corporate group's operations.	Conduct regular reviews of risk management systems that have been established, including internal committees and risk management departments, various rules and regulations, reporting and monitoring systems, as well as the effectiveness of such systems.	Maintain a firm governance system in the medium- and long-term by establishing a PDCA cycle, including development and implementation of action plans by the departments responsible for risk management, and monitoring and reviews by internal committees.	We reviewed the progress of the action plans of the FYE 2023 submitted by each risk management responsible divisions. Including all issues dealt during the period, we reported to the Internal Control Committee that Itochu's internal risk management system is active, which was held in October 2022 (review of the first half of FYE 2023), and in April 2023 (review of the second half of FYE 2023, and the action plans for FYE 2024).