Action Plan

Risks	Opportunities
Decline in credibility that would result from the occurrence of a problem related to the safety or health of consumers and service users.	Increase in demand for food safety and security and health improvement. Establishment of safe, stable supply system for product enabled by the consideration of human rights and improvement of work environment in the supply chain. Winning customer trust or creating new businesses with a stable supply of environmentally friendly resources and materials. And others.

Materiality	Issues to address	Business area	Commitment	Specific approach	Performance indicators	Degree of Progress
Textile Company
Respect human rights	Establishing a supply chain reflecting consideration for human rights and the environment	Supply chain management	We will promote information-sharing in the overall Group and establish a safe, secure supply chain, thereby helping customers with risk reduction and contributing to sustainable economic development.	Make Group-wide efforts to review the social and environmental safety of the supply chain and make improvements as necessary, thereby promoting the establishment of a safe, secure commodity supply system.	FYE 2024: Establish and visualize the supply chain of the overall Group, from material procurement to sales, to ensure a responsible procurement policy.	In FYE 2019 we conducted an investigation of 50 of our suppliers from the standpoint of Environmental, Social and Governance (ESG) criteria. In FYE 2020 we plan to increase this to 80 companies, and continue to work to establish a healthy supply chain.
Ensure stable procurement and supply	Provision of commodities that help achieve a sustainable lifestyle	Brand marketing business	We will contribute to increasing the visibility of a sustainable lifestyle by taking advantage of our strengths as a marketing company.	Raise awareness of an ethical, sustainable lifestyle through brand business, thereby promoting awareness-raising not only in the overall industry but also among consumers.	FYE 2021 : Take initiatives with new brands. Have a sustainable lifestyle understood and instilled more widely.	This has not led to closing any contracts on a new brands that appeal to ethical lifestyles. But we see a need in the market and are continuing to work to achieve this.
Food Company
Contribute to healthier and more enriched lifestyles	Supplying safe, secure food	Overall food-related businesses	We will select and concentrate on suppliers who are capable of manufacturing and supplying safe, secure food stably.	Increase the number of persons with international certifications/qualifications related to judgment on the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers.	Proceed with the appropriate allocation of human resources as judges mentioned on the left to business departments, with the leading role played by the food safety management organization of ITOCHU Corporation.	In FYE 2019 three more personnel were certified as ISO22000 Provisional Auditors. We expect a similar increase in the qualified personnel in next fiscal year.
Respect human rights	Establishing a supply chain reflecting consideration for human rights and the environment	Provisions	We will establish a procurement system that conforms to third-party certification criteria and unique codes of conduct of manufacturers as our customers.	Start procuring coffee beans in Latin America in a way that conforms to the unique codes of conduct of manufacturers as our customers. Participate in conferences of RSPO, a third-party certification body on palm oil, and start supplying RSPO-certified oil.	Proceed with discussions of targets for the sustainable procurement of palm oil by collaborating with the trading industry organization based on customers' situations and industry trends.	By 2025 we aim to switch the palm oil we handle to sustainable palm oil (RSPO/MSPO/ISPO, etc.). On the basis of the industry trends and customers' circumstances, we are going to improve our procurement system to provide sustainable palm oil with industry groups.
General Products & Realty Company
Ensure stable procurement and supply	Using sustainable forest resources	Wood products & materials Pulp Woodchips	We deal in sustainable forest resources to reduce the impact on the environment and prevent the increase of greenhouse gases.	Continue to request suppliers who have yet to obtain certifications to obtain them. Conduct sustainability surveys of suppliers and visit them.	FYE 2026: Aim to achieve a rate of 100% for materials under high-level management or certified ones that we handle.	We also continue to carry out the following for suppliers Verifying traceability by conducting individual on-site inspections Expanding the handling of products subject to "timber traceability verification by third-party organizations.
Ensure stable procurement and supply	Realization of sustainable supply of natural rubber	Natural Rubber	We shall use our best efforts to establish measures to identify any suppliers developing on High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland, in order to avoid procuring rubber from them.	We will establish a traceability system to make uncertain raw material procurement supply chain tranceparet.	We aim to procure raw materials with traceability and sustainability ensured in natural rubber processing business.	* Because of new commitment, review will be conducted from the next fiscal year.