ITOCHU Recognized by GPIF Asset Managers Entrusted with Domestic Equity Investment as Having Excellent TCFD Disclosures for the Third Consecutive Year

March 25, 2024

ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) announced today that asset management institutions entrusted with domestic equity investment by the Government Pension Investment Fund (GPIF) have selected ITOCHU as a company with excellent TCFD disclosures for the third consecutive year. In addition, ITOCHU was selected as a company with outstanding TCFD-compliant disclosures highly evaluated by at least four equity management institutions for two years in a row, and it has been continuously receiving favorable assessments.

The following are statements from the asset management institutions that provided favorable assessments.

・We favorably assessed ITOCHU's efforts to integrate climate change risk management as a major risk in investment management into its comprehensive management of risk. By involving the board of directors in this process, efforts have been made to ensure a healthy governance system. In addition, the scope of scenario analysis has been expanded every year to improve the analysis of risks and opportunities in relation to climate change.

・Enhanced information is provided in relation to each of the four pillars of TCFD-compliant disclosure. Each business’ analysis and indicator/target setting are sophisticated, and the governance system is clear and effective, facilitating the implementation of climate change measures. The information is provided with the investor in mind and is very useful overall.

・We evaluated the detailed analysis highly, despite the challenges trading companies face with regard to information disclosure. ITOCHU’s approach of disclosing information about a range of aspects of its business, including scenario analyses, timeframes, action plans and specific example initiatives, was also assessed favorably.

・ITOCHU’s governance is very transparent. Scenario analyses are rational and effective, using original financial models that consider the degree of impact after narrowing down targets from among a broad range of businesses. A transition plan has also been formulated, clearly indicating that resilient business operations are possible. The level of integration of climate change risks into the company-wide risk management system is also high. We also favorably assessed the information that raises expectations regarding the mitigation of climate change risks and the growth of business, such as the detailed disclosure of information about the action plan for the cleantech businesses.

ITOCHU announced its support for the TCFD recommendations in 2019. Since then, it has been increasing its analysis of climate change risks and opportunities while also focusing its efforts on enhancing and increasing the information that it discloses every year. Going forward, ITOCHU will continue to enhance its TCFD-based disclosure of information while also providing climate-related financial information that is beneficial to its investors and other stakeholders.

■ ITOCHU ESG Report 2023 (Fiscal year ended March 31, 2023)

■ Selected by GPIF's asset managers entrusted with domestic equity investment as having Excellent TCFD Disclosures