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 Ensure stable procurement and supply	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.	We implemented this in 50 companies in Southwest Asia (e.g., Vietnam and Indonesia) compared to the 80 companies that was our target in FYE 2020. Separately, we conducted a fact-finding investigation questionnaire on the status of compliance with the Labor Standards Act and Industrial Safety and Health Act for foreign technical intern trainees in 211 sewing plants in Japan.
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.	We have not entered into a contract with a new brand. However, we have realized cases using the fabric of FOOD TEXTILE that reuses ingredients scheduled to be discarded as dyes in our main brand of CONVERSE shoes.
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 audit the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers.	Promotion of the appropriate appointment of the auditors in each sales division under the guidance of the ITOCHU food safety management organization.	The number of people who have acquired the assistant auditor increased by one in FYE 2020. We plan to increase this by two people in FYE 2021. We expect the total number of qualified persons over our entire group to reach nine.
Respect human rights Ensure stable procurement and supply	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 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 compliant with supplier-specific codes of conduct in our bases in producing areas in cooperation with suppliers. Palm oil: Promotion of progress information disclosure upon also clarifying the KPI indicators by publishing our procurement policy.	We are currently giving guidance to producers in each producing area country to meet the certification standards. The aim of this is to expand transactions for certified coffee beans (e.g., those of the Rainforest Alliance and C.A.F.E Practice). We have published our procurement policy with our started target of switching all the palm oil we procure to sustainable palm oil supplied from supply chains compliant with RSPO/MSPO/ISPO by FYE 2026. We are promoting the construction of procurement and supply structures in light of industry trends and the situation in suppliers.
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 certified or under high-level management materials that we handle.	Wood products & materials: We are continuing to encourage and review suppliers. We established a path to achieving ahead of schedule a rate of 100% for certified or under high-level management wood products & materials that we handle in FYE 2021. Pulp and woodchips: We achieved a rate of 100% for certified or under high-level management materials that we handle.
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.	We are developing a traceability system using blockchains. We plan to introduce this around the second quarter of FYE 2021.