CSR in Our Supply Chain

ITOCHU Corporation's CSR Action Guidelines for Supply Chains

Basic stance on supply chain management

Developing business all over the world, ITOCHU Corporation has positioned supply chain management as an important
issue to be addressed. Preventing human rights, labor and environmental problems, and working for improvement
together with the supplier. We are striving to practice these actions steadily and incorporated them into our basic
policies for CSR promotion as “3.Strengthening supply chain management (Respect for human rights and consideration
for the environment).”
As part of our efforts to promote supply chain management, we established action guidelines in April 2009 in order tohave this philosophy penetrate the entire company and to clearly communicate ITOCHU's stance to suppliers. It is ourintention to present these action guidelines to our suppliers, to deepen the dialogue on human rights, labor andenvironmental conservation, and to ask our suppliers to understand and practice ITOCHU's stance.

ITOCHU Corporation's CSR Action Guidelines for Supply ChainsTo fulfill the ITOCHU Mission, “Committed to the global good,” ITOCHU promotes CSR through its businessactivities, with the aim of achieving a sustainable society.
Due to the characteristics of its business activities, ITOCHU has to keep working to manage its supply chains in
consideration to the social or environmental impact of a variety of products and services handled.
ITOCHU has established the CSR Action Guidelines for Supply Chains to explain its position to suppliers, andexpects and encourages their understanding and implementation of every item mentioned below.
1. Suppliers shall respect the human rights of employees, and never treat employees in an inhumane manner.
2. Suppliers shall prevent forced labor or child labor.
3. Suppliers shall not practice discrimination in hiring and employment.
4. Suppliers shall prevent unfair low-wage labor.
5. Suppliers shall respect the rights of employees to organize, for smooth negotiation between labor andmanagement.
6. Suppliers shall strive to provide employees with a safe and healthy work environment.

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7. In the course of their business activities, suppliers shall duly consider the need to conserve ecosystems aswell as local and global environments, and strive to prevent the occurrence of any environmental pollution.
8. Suppliers shall observe all related laws and international rules, and ensure fair transactions and prevent
corruption.
9. Suppliers shall disclose information regarding the above items in a timely and appropriate manner.

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CSR Survey of Supply Chains

CSR Survey of Supply Chains

ITOCHU develops various businesses around the world. In order to check the status of our various suppliers, weconduct survey with a method suited to the characteristics of the goods of each Division Company, along withmandatory questions on the nine items in our “CSR Action Guidelines for Supply Chains.”
In addition to the nine items covering human rights, labor, and environmental issues, we added further items specificto each Division Company. For example, we added check items for forest conservation for the Forest Products &General Merchandise Division (lumber, pulp & paper); product safety items for the Food Company; and items onprotection of intellectual property for our Textile Company. Each Division Company selects target suppliers and createsa survey plan based on such parameters as high-risk countries, products handled, and transaction amounts byreferring to the criteria of the FTSE4Good Index. Sales representatives or locally assigned ITOCHU employees of each
Division Company visit the suppliers, and survey them by means of interviews or questionnaires.
In April 2009, ITOCHU established ITOCHU Corporation’s CSR Action Guidelines for Supply Chains to clearlycommunicate its stance to suppliers. ITOCHU is promoting dialogue on human rights, labor and environmental
protection, as it seeks understanding and implementation of these action guidelines.
Moving forward, in addition to conducting surveys of the actual situation and reviewing survey methods, ITOCHU plans
to continue similar measures at suppliers of overseas offices and Group companies, which were added in the fiscal year
ended March 31, 2011.

Sample checklist for a supply chain survey [Food Company]

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CSR Surveys in the Fiscal Year Ended March 2011

In fiscal 2011, we conducted a survey, targeting not only suppliers of ITOCHU Corporation but also suppliers ofoverseas offices and Group companies. As a result, we surveyed 374 companies, including 21 suppliers of overseas
offices and 24 suppliers of Group companies.No serious problems requiring immediate response were found in thesurvey results. We also found that the survey results were more focused this time on the key points, thanks toincreased understanding by the employees conducting the surveys, and we received feedback that participants had
seen improvement due to the continuation of the surveys.
We are committed to continually increasing our employees' awareness in our daily business and to improving the CSRof our suppliers by continuing these surveys and dialogue with suppliers.

Survey results by organization (FY2009 to FY2011)
FY2011FY2010FY2009Textile Company

242817

ICT & Machinery Company

151712Energy, Metals & Minerals Company

14118

Chemicals, Forest Products & General Merchandise Company

193

133

149

Food Company

105

9357

Finance, Realty, Insurance & Logistics Services Company

231818(*) 374

300261

Total*Includes 21 suppliers of overseas offices and 24 suppliers of Group companies56