Basic Policies for CSR Promotion and Internal Penetration at ITOCHU
ITOCHU Corporation is a Sogo Shosha that adopts a Division Company system. Its seven Division Companies areengaged in diverse business activities in their respective industries.
The following reports on, as a company with those characteristics, our basic policies and measures for internal
penetration to promote CSR in a practical and effective way.

Basic policies for CSR promotion during“Frontiere 2010”

Basic policies for CSR promotion “Frontiere 2010”

To become a “global enterprise,” we need to evolve our management system into one befitting global standards. To incorporate
CSR into its management system, ITOCHU Corporation defines“basic policies for CSR promotion” when establishing management
plans.
We have been striving to consistently promote and deepen ourCSR in our mid-term management plan for fiscal 2007 to 2008. For
the term of “Frontiere 2010,” our mid-term management plan forfiscal 2009 to 2010, we have established basic policies for promotion as shown on the right and will promote each item on a global
scale.
During the term of fiscal 2007 to 2008, we focused particularly on
expanding the scope of our CSR promotion to overseas bases, groupcompanies and supply chains. We realized the roll-out to all regions of ouroverseas bases, and also made a certain progress in the roll-out to groupcompanies.
Meanwhile, as regards the expansion to our supply chains, we started
working on supplier checks in fiscal 2007. Supply chain management,
centered on the issues of human rights and labor problems, is a particularly
important CSR issue. Therefore, we positioned supply chain management

Promote the following 4 items on a global scale
1. Strengthening communication with stakeholders
2. Ensuring and enhancing safety and reliability in theproduct, service, and human aspects
3. Promoting CSR-related education and enlightenment
4. Strengthening supply chain management(Respect for human rights)

Basic policies for environmental activities** For the environment, which is an important CSR issue, we promote activities
according to separately defined basic policies for environmental activities.

as one of our basic policies for CSR promotion in “Frontiere 2010” as acorporate-wide issue to strengthen. As specific measures, we establishedthe “ITOCHU Corporation’s CSR Action Guidelines for Supply Chains” inApril 2009 and are promoting dialogues with our suppliers (see page 16).
Note that for the establishment of the basic policies, we went through aprocess of referring to opinions of external stakeholders* and employeequestionnaires (see page 10).
* In February 2009, we conducted a questionnaire survey of 13 experts that had attended
stakeholder dialogues and meetings with third parties in the past.

t Roadmap for CSR promotion

ITOCHU Corporation
non-consolidated management

Implementing CSR initiatives
at group companies
Since fiscal 2006, we have been gradually
expanding CSR promotion for major groupcompanies, based on the model methodsof ITOCHU Corporation; establishing CSR
action plans and executing these in PDCA
cycles. By fiscal 2008, an accumulated
total of 45 companies established CSR
action plans. We will continue to promote
CSR development tailored to the business
content and size of each group company
including those overseas also using othertechniques.

9ITOCHU Corporation CSR Report 2009

ITOCHU Groupmanagement

Collaboration
with suppliers

Corporate-wide
initiatives

Promotion on a global scalet Group companies targeted for CSR implementation at a glance
Organization
Textile Company

Companies targeted
ITOCHU FASHION SYSTEM Co., Ltd., ROY-NE CO., LTD., ITOCHU MODEPAL CO., LTD, CI SHOPPINGSERVICE CO., LTD., ITOCHU Home Fashion Corporation

Machinery Company

ITOCHU Plantech Inc., ITOCHU Automobile Corporation, ITOCHU CONSTRUCTION MACHINERY CO., LTD.

ICT, Aerospace &Electronics Company

ITOCHU Techno-Solutions Corporation, ITC NETWORKS CORPORATION, ITOCHU ELECTRONICS CORP.,CAPLAN Corporation, JAPAN AEROSPACE CORPORATION, NANO Media Inc., ITOCHU Sanki Corp.

Energy, Metals &Minerals Company

ITOCHU Metals Corporation, ITOCHU Petroleum Japan Ltd., ITOCHU Oil Exploration Co., Ltd.

Chemicals, ForestProducts & General
Merchandise Company

ITOCHU KENZAI CORPORATION, ITOCHU CHEMICAL FRONTIER Corporation, ITOCHU PLASTICS INC.,
ITOCHU PULP & PAPER CORP., ITOCHU CERATECH CORPORATION, The Japan Cee-Bee Chemical Co., Ltd.,
Chemical Logitec Co., Ltd., VCJ Corporation, ITOCHU Forestry Corp., ITOCHU Windows Co., Ltd.

Food Company
Finance, Realty,
Insurance & Logistics
Services Company
Headquarters

Family Corporation Inc., Yayoi Foods Co., Ltd., ITOCHU Feed Mills Co., Ltd., ITOCHU Rice Corporation,ITOCHU Sugar Co., Ltd., I-FOODS Co., Ltd., ITOCHU FRESH Corporation, Universal Food Co., Ltd.,NIPPON ACCESS, INC.
ITOCHU PROPERTY DEVELOPMENT, LTD., ITOCHU Urban Community Ltd., i-LOGISTICS CORP., FX PRIME
Corporation, ITOCHU Orico Insurance Services Co., Ltd., Superex Corporation, Naigai Travel Service Co., Ltd.
ACRONET Corp.

Measures for internal penetration ofCSR at ITOCHUz CSR seminars
We regularly organize “Internal CSR Seminars” to incorporate the views and opinions on various CSR issues fromoutside experts.
In fiscal 2008, we held the fourth seminar on the topic:“Loss and Recycling in Food Distribution,” focusing on thesteep rise in food prices and the low self-sufficiency forfood. The attendants learned about the current food loss
both from the standpoint of distributors and from thestandpoint of consumers, and there was a lively exchangeof opinions on what to do about this.
We plan to continue CSR seminars focusing on CSR issues
that require particular attention.

x CSR Report 2008 questionnaire for employees
As every year, we conducted a questionnaire survey directed
to all employees on the CSR Report 2008 over the intranet.
We received replies from 5,302 out of 7,046 employees(reply rate: 75.2%). With employees becoming increasingly
aware of CSR, this is an important tool to accumulate ouremployees’ frank opinions on CSR.
In the results of the survey, the top CSR issue thatITOCHU should address was “creating businesses contributing to the conservation of the global environment, etc. /consideration for the environment in our business.” We willcontinue to give feedback on the voices of our employees
to the relevant sites to promote CSR through our businessactivities.
t Replies to the CSR Report 2008 questionnaire for employees
Questionnaire foremployees of
ITOCHU Corporation

Questionnairefor employees ofoverseas blocs

Total

Number ofemployees

5,188

1,865

7,053

Number of replies

4,171

1,131

5,302

Reply rate

80.4%

60.6%

75.2%

The fourth internal CSR seminar on February 23, 2009c CSR workshops
One of our measures for CSR promotion is to produce
videos on an important CSR issue for internal education,
distribute them to every division and site in Japan andoverseas, and then organize participative training “CSRworkshops” at each organization. In these workshops, theattendants watch a video and then discuss it.
In the CSR workshops of fiscal 2008, attendants watcheda digest of the stakeholder dialogue held in 2008 (subject:“Considering Upstream Issues in the Cornerstone Businesses
Comprising Society”) and had a lively discussion on thecurrent situation as well as issues and measures with respect
to this topic. During this discussion, a variety of opinions
was voiced, for example, on initiatives to reduce environmental impact, the promotion of new energies and othereco-friendly businesses, or the importance of communicating to the consumer (see the table at the right for an outline).

t Topics discussed during the CSR workshops (excerpt)
Organization

TopicsTextile Company

Promotion of resource-recycling business / communicating to theconsumer / promotion of the PRE-ORGANIC COTTON PROGRAM /securing of traceability / reduction of environmental impact in the apparelproduction process

Machinery Company

Promotion of business contributing to a reduction of environmental impact /reinforcement of investments and examinations from a CSR perspective /recognition of issues related to the automobile industry / reinforcement ofcommunication and spread and expansion of eco-friendly products /consideration for social and environmental aspects in business activities

ICT, Aerospace &Electronics Company

Promotion of green IT / promotion of recycling business / promotion ofcommunication to raise awareness (including MOTTAINAI) / indexing ofenvironmental impact using IT and construction of traceability system

Energy, Metals &Minerals Company

Reinforcement of communicating and disclosing information related toinitiatives for the reduction of environmental impact / development of newenergies, promotion of environment business / selection of partners inconsideration of CSR (environmental) aspects / reimbursement andre-investment (for the local community or the environment)

Chemicals, Forest
Products & General
Merchandise Company

Reinforcement of communication and spread and expansion of eco-friendly
products / promotion of supply chain management (continue checks andcontrol/guidance) / acceleration of the discovery of and investments into
eco-friendly products and businesses

Food Company

Continual efforts to grasp accurate information / promotion of consumer
education through communication / reduction and effective use of wasteand overhead / promotion of development and spread of eco-friendly
products

Finance, Realty,Insurance & Logistics
Services Company

Reduced consumption and saving of paper, electric power and otherresources / requests for the promotion of environmental initiatives tocontractors and subcontractors for construction work / promotion ofrationalization, modal shifts, etc. from the aspect of reducing CO2
emissions / consulting, education and support for response on the basis ofexpert knowledge of construction, distribution and insurance, internally or
for group companies or business partners

Headquarters
Domestic branch offices
Overseas offices
Video for internal education on CSR in fiscal 2008

CSR workshop at our London office

Promotion of initiatives to reduce environmental impact at offices /reinforcement of communication and corporate PR / development of amechanism for returns (of profits) inside the own company
Promotion of consumer education through communication
Promotion of products and businesses contributing to a reduction ofenvironmental impact / promotion of efforts to reduce environmental
impact at the office / promotion of consumer education throughcommunication

ITOCHU Corporation CSR Report 200910