Sumitomo Corporation
https://www.sumitomocorp.com/en/jp/sustainability/environmental-management/biology

Policy for the future:
Sumitomo Corporation Group’s business activities largely depend on the wealth of Earth’s diverse living organisms as well as from the biodiversitythat is generated by their many networks. Therefore, our Environmental Policy recognizes placing great importance on preserving the environment,including the natural ecosystem and biodiversity as an important issue for us. We make efforts to understand how our business activities that may
have a significant impact on biodiversity depend on such biodiversity, as well as what kind of impact such activities have on biodiversity, in order tominimize their impact on ecosystems and contribute to ecosystem restoration.
In the process of reviewing new projects and monitoring existing projects, we also assess social and environmental risks including impact on
ecosystems, and check the status of management and improvement.

<Business description>

Ambatovy Project Targeting “No Net Loss, Net Gain”

The Ambatovy Project in the Republic of Madagascar, which is one of the largest minedevelopment projects in the world, began development in 2007 to expand the supply ofnickel, cobalt and other metals. Establishing the environmental target of “no net loss,net gain,” it is conducting a unique biodiversity program.
In the Ambatovy Project, many new facilities, such as mining sites, refinery plants andpipelines, need to be constructed and operated, which poses substantial impacts on thesurrounding environment. Particularly in Madagascar, there remains a globally precious
natural environment where as many as 1,000 species of endangered animals are living.
Giving careful consideration to these natural habitats in developing and operating theproject, the biodiversity program accounts for the impact on every site. In developingand implementing plans for the project, special emphasis is placed on environmental
management in compliance with not only Madagascar national laws but also various
guidelines, such as the World Bank safeguard policy, the International Financial
Corporation’s (IFC) Performance Standards, the World Health Organization (WHO)standards, and the Equator Principles. In line with the ISO 14001 standard, we are also
managing according to the Ambatovy Environmental Management System (EMS).
Under the Ambatovy EMS, we identified a number of priority areas, including flora andfauna habitats and marine ecosystems, and when developing, operating, and closing
mines, we formulate management plans for business-related sites, such as plants andport facilities, and work according to those plans. For example, in developing themining area, we created a buffer zone around the mining site of about 1,600 ha toensure protection of wild animals. When trees are cut down to develop the mine site,
felled trees are left on site for a while so that animals inhabiting these trees can moveinto the buffer zone. We also conduct ecosystem surveys jointly with international
environmental NGOs. If endangered or other species that need to be protected areidentified in such a survey, we adopt various programs designed to reduce impacts on

ecosystems, for example, relocation of such species to a sanctuary and use of a fish
farming system.
Furthermore, as part of this biodiversity program, we are collaborating withgovernments, local communities, and conservation and development NGOs to apply
the IFC and BBOP standards while also promoting a large-scale biodiversity offset
program. This is an approach to mitigate impacts of the development on ecosystems
by restoring or creating another ecosystem. Specific measures include the conservationof a forest area of 6,800 ha in the Ankerana area, which has an ecosystem similar tothat of the development site of the project. In an attempt to offset the net loss of
biodiversity, we have implemented measures to protect four conservation areas ofmore than 14,000 ha in total, equivalent to about nine times the affected areas, such asprotection of areas near the mine site, tree replanting after the installation of pipelines,
and tree replanting on the mine site after the closure of themine. For this biodiversity program and its offsets, we aretaking a comprehensive approach that controls not only theimpact of businesses, but impacts received prior to them as
well.

Reforestation after logging

Diademed sifaka(Propithecus diadema),critically endangered species

Survey and conservationof endangered plants