Top Commitment

Sustainability at the ITOCHU Group

Environment

Society

Governance

SDGs Bond (Sustainability Bond)

Evaluation by Society

Independent Assurance Report

100

SocietySociety

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Society

Occupational Safety and Health Management

Governance

Respect and Consideration for Human Rights

Labor Practices: Employment and Benefits

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

101

ESG Data(Society)

Policy and Basic Concept

Form mid to long-term assets
using the employee stock
ownership association

Results-based
evaluations andcompensation
Improve feedback
and level ofunderstanding tolead to growth* The ITOCHU Group expresses its support to the Declaration through its Human Rights Policy, Section 2. Endorsement of International Agreement.

Proactive careerdevelopment

A Challenging
but Rewarding
Company• Thoroughly implement thebottom-up approach to management
and embody “Sampo-yoshi ” (goodfor the buyer, good for the seller, andgood for society)• Place emphasis on diversity andmaximize all employees abilities.

Create opportunities
for self-improvement
based on individual
aptitudes

EnhancinghealthSecuring
outstanding
talentImprove the valueof our corporate
brand and humanresources

Evolving work
stylesPursue eﬃciency
throughmorning-focused work

Develop an
environment to be able
to continue working

Enhance labor productivity and corporate value

Increasing awarenessof participationin management

Enhance employee motivation and willingness to contribute

In running a global business in a wide range of domains, consolidated group companies join together to operate as the ITOCHU
Group. ITOCHU has more than 110,000 consolidated employees as of the end of FYE 2023. ITOCHU is implementing various
initiatives that aim to create a working environment where our diverse body of employees can reach their full potential. Someof our notable initiatives include: enhancing our early morning-focused work system to promote workstyle reforms, theestablishment of various systems to support employees with caring duties, and the promotion of social activities among
employees at our recreational facilities.
ITOCHU’s Code of Ethical Conduct stipulates respect and consideration for human rights and the development of arewarding work environment. Furthermore, ITOCHU’s labor standards have been formulated in accordance with the principle of“Elimination of Discrimination in Respect of Employment and Occupation” of the International Labour Organization (ILO)’s“Declaration on Fundamental Principles and Rights at Work (and its Follow-up)”*. For this reason, ITOCHU adheres to thestatutory minimum wage and applies a consistent compensation system for the same qualifications and position level (equalpay for equal work).

Targets and Action Plan
Risks

●

Decline in labor productivity, loss of excellent human resources, missed business opportunities, increase in health-related expenses, and other events thatwould result from failure to take appropriate measures.

Division
Company

Headquarters

SDGs
Targets

ImpactClassification

Labor
Practices

Issues to Address

Improving operating
efficiency andpreventing long
working hours throughwork style reform

Business
Area

Human
resources
affairs

Commitment

We will aim to improve laborproductivity and employee
engagement by promoting varied
work styles.

Specific Approach

Opportunities●

Improvement of labor productivity, health and motivation, securing of excellent human resources, enhanced capability of responding to changes andbusiness opportunities, and other events that will result from providing a motivating workplace environment.

Conduct regular monitoring of employees’ work
situations.
● Conduct employee engagement survey.
● Promote the percentage of taking employee acquiring
paid leave.
●

Performance Indicators(Non-Consolidated)

Compliance to labor laws.
● Rate of positive responses to the “employee
engagement” item in the engagement survey:
70% or higher.
● Paid leave acquisition rate at 70% or higher.
●

Degree of Progress

Conducted monitoring of employee’s working hours and working environment so as
to prevent unpaid overtime work.
● The positive answer rate to the “employee engagement” in employment survey which
conducted in FYE 2022 was 71%.
● Percentage of taking employee acquiring paid leave; 62.2% in FYE 2023.
●* Percentage of taking employee acquiring paid leave; 58.8% in FYE 2022, 52.6% in FYE 2021.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Labor Practices: Employment and Benefits
Structures and Systems

When Group companies in Japan and overseas develop business in their respective domains and regions,the Division Companies of ITOCHU Corporation, the parent company, take the lead depending on thebusiness area. The company presidents secure human resources and put the right person in the rightposition in accordance with laws/ordinances under the human resource strategy based on the
management strategy. Furthermore, ITOCHU supports the creation of a management structure for
ensuring that Group companies provide optimal labor environments for their employees.

Risk Assessment for Labor Practices in Business Investments and Financing Projects

When assessing potential investment and financing projects, in addition to economic aspects, ITOCHU
uses an ESG checklist to identify and assess key ESG (environmental, social, governance) concerns
relevant to the project, which includes topics related to labor practices – e.g. working conditions,occupational health and safety and stakeholder dialogue. We also monitor the progress and performanceof our existing investment and financing projects and take necessary measures to make improvements.
For further details, please refer to the ESG Risk Assessment for New Business Investment Projects(P152).

Ensuring Compliance to Labor Standards

Governance

Respect and Consideration for Human Rights

At ITOCHU, it is mandatory for employees upon recruitment to complete training on working conditions,which includes issues related to salary, working hours and holidays, occupational safety and health,benefits, and service regulations. We are working to ensure all employees comply with the labor standardsof ITOCHU by making them available at all times on the Intranet in both Japanese and English. For
domestic and overseas group companies, in addition to supporting the development of optimal work
environments, we are also promoting the adoption of labor standards equivalent to ITOCHU standards.
In addition, ITOCHU continues to dispatch HR staff every year to the Tokyo Labor University Lectures
held by the Japan Institute for Labor Policy and Training, an affiliated organization of the Ministry of
Health, Labour and Welfare. Based on the current situation regarding human resources and labor
management in general, including skill development, working hours and compensation, the course
systematically teaches the structure of wages, the current issues of the modern labor market with its
increasingly diverse employment patterns and the state of labor-management relations from theperspective of labor economics.

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

102

ESG Data(Society)

Employee Engagement

ITOCHU Corporation believes that continuing to raise the level of Employee Engagement (the degree towhich employees with a strong desire to contribute to ITOCHU can capitalize on their own abilities
optimally at their own initiative) will improve corporate value.
We conduct a large-scale engagement survey once every three to four years. In the latest survey
conducted in December 2021, the positive answer rates for Employee Engagement and Employee
Enablement were among the highest for all Japanese companies. These results represent an ongoing
trend since the previous survey (conducted in FYE 2019). This indicates that many employees are proud ofworking for ITOCHU Corporation and engage in work with strong motivation to contribute to the company
and with the aim of achieving better-than-expected results on a voluntary basis. We are also adopting newmeasures through workstyle reforms and independent career development support to respond to theissues identified through this survey. We are verifying the effectiveness of these measures and building a
structure to promptly take countermeasures.
■ Engagement Survey Score

FYE 2015

FYE 2019

FYE 2022

Employee Engagement

78

76

71

Employee Enablement

67

64

67

* The score is affirmative response (%)

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Labor Practices: Employment and Benefits
Promotion of Work-Style Reforms

Evolving Our Morning-Focused Work System / Managing Work Time

■ Change in Labor Productivity with FYE 2011 as a Value of 1

�

FYE���� Establishment of“the ITOCHU Health Charter”
FYE���� Reduction of Unnecessary
Meetings and Documents

�
�
�

�.��

����

�.��

�.��

����

����

FYE���� Introductionof “Morning-Focused
Working System”

�.��

�.��

����

����

�.��
����

Social Contribution Activities

103

ESG Data(Society)

�.��

����

�.��

����

Work-Style Reforms

�.��

ｘ5.2

�.��

�.��

����

���� (FYE)

FYE���� Support for
Balancing Cancer Careand Work

Labor
Productivity

�.��

�.��

����

����

����

■ Morning-Focused Work System Diagram

�:��

�:��

Late-nights
prohibited（�:��）�:��

Flex time(work start
timeframe)Morning-focused work��:�� ��:��

Core time

Break

��:��

Core time

Fixed work hours

In principle, prohibit work between 8:00 pm and10:00 pm and shift any remaining work to thenext morning. 5:00 am to 8:00 am is therecommended timeframe for starting earlymorning work.
● For employees who start work before 7:50 am, up
to 9:00 am pay the same overtime rate (25%) as
employees who work overtime as an incentive.
● Work between 10:00 pm and 5:00 am isprohibited.
● We distribute three snacks to employees whoarrive at work before 8:00 a.m.

Flex time(work end
timeframe)

��:��

��:��

Prohibited Late-nights(in principle) prohibited

Early return not allowed●

The morning-focused work system we adopted in October 2013 has promoted workstyles that reflect the
ITOCHU philosophy by encouraging a mindset among employees: leaving work early in the evening andcoming to work early in the morning leads to more efficient work. This also had a significant impact on society
by serving as a positive case study for the government’s initiatives related to reducing long work hours.
The results of the employee engagement survey conducted in December 2021 pointed out a need forfurther initiatives related to supporting diverse workstyles. In response, in May 2022 we adopted a morning
flex-time structure. We also adopted telecommuting. These initiatives enable early work start and end
times, allowing free time to be used towards self-improvement, child care, and family care. We hope these
initiatives will help increase employee motivation and lead to improvements in work productivity and in
our corporate value.
In addition to ensuring compliance with labor union agreements and relevant laws, we will promotefurther workstyle reforms as a method of reducing total work hours.
ITOCHU believes its initiatives as a pioneer in work-style reform will both empower individual
employees to change their approach to work, and promote balanced operational reforms. In this way, theCompany is striving to achieve a work environment that enhances operational effectiveness, helps
maintain and improve employee health, support the activities of employees who face time constraints
from raising children or caring for family members in poor health and allows a more diverse set of
employees to make full use of their capabilities.

�

Independent Assurance Report

Outline of Initiatives

As a business managed by a small group of people, ITOCHU Corporation believes that employees are its
greatest asset, and that individual employees exerting their full potential will lead to improvement incorporate value. Since FYE 2011, we have aggressively promoted workstyle reforms as we implement
various measures aimed at creating an environment that allows all employees to apply their unique traits
and feel secure as they focus on their work.

�Evaluation by Society

Sustainability in the Value Chain

Providing 3 light meals to employees who arrived at office before
8:00.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Labor Practices: Employment and Benefits

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

104

ESG Data(Society)

Balancing Work with Childcare and Nursing Care

ITOCHU Corporation goes above and beyond the requirements of the law to arrange programs regardless of gender that help employees balance work with their childcare and nursing care obligations. This allows them to continue
making full use of their skills during their careers at the company, while resting assured they can handle stages of life where they must take care of children or elderly family members at home. In FYE 2017, the rate of male employees
who used childcare leave exceeded 50% and we saw an increase in the number of male employees who took medium- and long-term childcare leave of one month or longer. Meanwhile, in FYE 2017 we introduced a telecommuting
program which employees who meet certain conditions can take advantage of. Eligible employees include those with time constraints due to childcare or nursing care obligations, as well as those who face difficulty making thecommute to work due to pregnancy, illness or other such reasons. We expanded the program to make all employees eligible to take advantage of it from May 2022. In addition, we continue to hold nursing care seminars every year inlight of the fact the importance of preparing for nursing care has also become a social problem. At the same time, we introduced a service to provide nursing care information online in FYE 2018. We then introduced a one-stop nursing
care assistance service to meet the needs of those seeking advice in April 2019.

Support Programs for Balancing Work with Childcare & Nursing Care■ Support for Childcare�� days after getting pregnant

Pregnancy (women olny)

Limits on night work(�� p.m. - � a.m.)

Limits on overtime work

Childcare (both men and women)

School Graduation fromage elementary schoolChildcare leave (until the child turns
two years old / interruptible)

Leave to nurse sick children (� days per year in the case of only one child;Ten days per year in the case of two or more children)
Family support leave (Included in leave as a reward for diligence)Special parental leave(A total of �� days until graduation from elementary school)

Commencement ofuse of the system（Applied to all Employees）Morning ﬂex time, Telecommuting system

Shorter working hours for childcare (By �� minutes per day / Until graduationfrom elementary school / Reduction of salary after the age of �)
A system which allows employees to work on
chosen days (� year in total / interruptible)
Exemption from overtime work

Limits on overtime work(to �� hours per month / ��� hours per year)

Exemption from night work (�� p.m. - � a.m.)

Allowance for babysitter / Discount system for babysitter dispatch services
Use of I-Kids, a childcare center for employees (� - � years old)

* Temporary childcare services are available until the child reaches school age.

SNS for Pregnant・Parenting employees

Support for career continuity（Career Vision Support Training / Three-party meeting on return fromchildcare leave / Follow-up meeting for those who have returned to work from childcare leave）

Health・Childcare Concierge / Health union telephone health consultation / Searching Nursery School Concierge

� years

� years

Nursing care leave(� years in total / interruptible)

Leave for nursing care (�� days granted each year regardless of thenumber of family members in need of nursing care)

Family support leave (Including Paid Leave)

Special nursing care leave (�� days for those with fewer than � service years, and with an upper limit in the accumulated
number of days at �� days (half day oﬀ may be included) for those with � or more service years.)

Shorter working hours for nursing care (Up to �� minutes per day for up to � years in total /Salary begins to be reduced accordingly in the �th year / Interruptible)

A system that allows employees to work on chosen days
(� years in total / interruptible)

Exemption from overtime work

Limits on overtime work (Up to �� hours per month / ��� hours per year)
Exemption from night work (�� p.m. - � a.m.)・ Providing
Consultation
informatio

・Consultation
Providing information

Handbook on childcare (edition for women, edition for men, edition for superiors)� years(Applied to all Employees) Morning ﬂex time, Telecommuting system

Support for
NursingChildcare
supportAllowance for balancing childcare
and work

Guidance for returning to job■ Support for Nursing Care

Flexible Work Style

Shorter working hours during
pregnancy (by �� minutes per day)� years old � years old

・ Holiday System
Leave

Flexible Work Style（Applied to all Employees）
Morning ﬂex time, Telecommuting
system・ Childcare leave atMaternity leave after childbirth (� weeks)birth (� weeks out of � weeks)

Miscarriage leave(� days)Maternity leave before
childbirth (� weeks)・
Leave
Holiday System

Pregnancy leave (�� days)� weeks afterChildbirth childbirth“Furusato Care Service” for employees posted abroad (care for their elderly relatives)
Beneﬁts for Nursing Household Agency Services allowances・Allowances for purchasing nursing products
Career Vision Support Training during
the absence

Seminar for Promotion of understanding (Balancing nursing and work)
Handbook on nursing care
Nursing care concierge / Health union telephone health consultation

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Labor Practices: Employment and Benefits
Use of Childcare & Nursing Care Programs★
For details, please refer to ESG Data (P166).
Reemployment System

Regardless of whether male or female, if an employee who chose to leave the company to accompany hisor her spouse relocating for work wishes, he or she can register with our reemployment system for three
years (five years in the event an extension is permitted). During the registration period, we devise ways inwhich to keep that employee in contact with our company. For example, we provide opportunities for
self-improvement, send bulletins, and inform him or her of the system status and updates.

3

Reemployment System

years(five years in the event an extension is permitted)

ITOCHU Kids Day for Visiting Mom & Dad at Work

Since 2014, we have regularly invited employees’ elementary-age children to ITOCHU Kids Day for Visiting
Mom & Dad at Work. The children come to work early in the morning with their parents. They thenparticipate in the event after eating a morning snack provided by the company. This event gives them anexperience of morning-focused work. Moreover, they get business cards made especially for the event,which they exchange with employees at their parents’ workplaces. They also attend a mock meeting in theexecutive meeting room and eat lunch in the employee cafeteria. These activities provide the children witha deeper understanding of the company where their parents work. The response from employees has
been very positive for instilling an interest in what the children’s parents do at their job and for sparking adesire to work at ITOCHU in the future. As we consider this an incredibly meaningful event for building
family bonds and teaching children about ITOCHU, we plan to continue holding it.
* We have canceled this event since FYE 2021 to prevent the spread of COVID-19.

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

105

ESG Data(Society)

Employee Benefits

ITOCHU Corporation employs a variety of welfare facilities and schemes to stimulate communication
between employees and provide opportunities for exchange. Stimulating communication helps foster asense of belonging and job satisfaction in individual employees. It also helps to invigorate the organization
as a whole.

Employee Cafeteria

We have taken steps to make the cafeteria a more attractive space for employees. These include
introducing a Wellness Cafeteria menu created under the supervision of Kagawa Nutrition University*
which aims to help employees improve their health. We have revised our menus based on employee
feedback as well. Furthermore, we offer a seasonal event menu every month to make coming to thecafeteria fun. We also provide collaborative menus so that employees can easily enjoy the taste of famous
restaurants in the cafeteria. The employee cafeteria is used by many employees.
* Kagawa Nutrition University is a pioneering force in nutrition education. The menu it helped create focuses on daily specials with healthy dishes that fulfill
different nutritional requirements. These include an energy value of around 600 kcal, salt content of 3 g or less, and vegetable servings of 140 g or more.
(Currently suspended since FYE 2021 due to COVID-19 prevention measures.)* Can be used by both full-time and part-time employees

Cooldown Rooms

In June 2012, ITOCHU Corporation introduced Cooldown Rooms on the first floor and first basement floorof its Tokyo Headquarters. These rooms seek to help beat the summer heat by keeping visitors
comfortable inside the building and giving employees a comfortable place to work. To help fight global
warming and save electricity in summer when demand for power is high, ITOCHU stipulates that air
conditioners in the building not be set lower than 28 degrees Celsius. However, the Cooldown Rooms havelower ceilings than other rooms and can be cooled more efficiently. Cool air is supplied at 15 degrees
Celsius to keep room temperature below 20 degrees. This makes them great spaces for visitors to thebuilding and employees returning from sales activities to cool down on hot summer days. We alsoestablished a permanent history exhibition corner called “ITOCHU History” so that many people can learn
about the founding principles of our company while effectively utilizing the Cooldown Rooms.
* Can be used by both full-time and part-time employees

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Labor Practices: Employment and Benefits
Shower Lounge and Shower RoomIn the summer of 2016, ITOCHU installed a shower lounge on the third floor of our Tokyo Headquarters, and ashower room on the second basement floor. Their goal is to help create a workplace environment thatencourages job satisfaction. The seeds of this idea were accounts from employees who often found airport
shower rooms crowded when returning from business trips on early morning flights. Many reported using
external facilities (such as gyms and saunas) on their way to work. In response to this feedback, ITOCHU
established shower facilities at Headquarters so that employees returning from business trips can be more
comfortable as they begin work. The facilities areequipped with overhead shower heads, which warm
the body quickly in winter, and amenities like towels,
hair driers, shampoo, and conditioner. The facilities
have been well received, with employees reporting
they are able to work in comfort. The facilities now
stay open longer and can also be used by employees
who exercise to improve their health. They are also
open to employees of affiliate companies.
* Can be used by both full-time and part-time employees

Independent Assurance ReportSocial Contribution Activities

106

ESG Data(Society)“SOGO-KAI” Associations“SOGO-KAI” associations are groups where fellow employees can assemble to enjoy the same sports orcultural activities. Spreading out from Tokyo and Osaka, there are more than thirty such associations
active within the company nationwide. They boast a combined membership of more than 1,000
employees. The associations are not limited to current ITOCHU Corporation employees. Many former
employees and Group company employees also take part. These associations use sports and culturalactivities to promote exchange and communication across different generations and organizations.
* Both full-time and part-time employees can join

30

1,000

Extracurricular Activities

Participating Employees

Approx.

more than

Associations

employees

Performance Data

Employee Status (as of March 31 for each respective year) (P165)
Employees by Operating Segment (as of March 31, 2023) (P165)● Overseas Bloc Employees by Region (as of March 31, 2023) (P165)● Average Years Employed and Voluntary Resignation Rate (Non-Consolidated) (P166)●●

The Hiyoshi Dormitory

In March 2018, ITOCHU Corporation opened the Hiyoshi Dormitory in the Kohoku ward of Yokohama,
Kanagawa prefecture. The dormitory has approx. 360 units to house unmarried employees. It brings together
unmarried male employees who had been scattered across four locations in the Tokyo Metropolitan area.
The design concept for the dormitory is “under the same roof,” as opposed to positioning it as a mere welfare
facility. Accordingly, it is equipped with a variety of common areas designed to bring residents together anddeepen communication across boundaries like age and department. These include a dining room withshared kitchen, a multi-purpose meeting room, a large bathroom with a sauna, and communication spaces
on each floor (including study areas and an open terrace).
The dormitory is aiming to create an environment in which employees voluntarily reform their work
styles and improve their health based on the corporate policies such as health management. For example,
it serves nutritionally balanced breakfasts and dinners in the cafeteria, it provides exercise opportunities inpartnership with a nearby fitness club, and it prohibits smoking throughout the building, including privaterooms, except in designated smoking areas.
Moreover, this dormitory is designed to function as a secondary office for the Tokyo Headquarters and isvital to our business continuity plan (BCP) for disasters. It uses the same Internet environment as our offices
and we have installed emergency generator equipment. We have also stocked the dormitory with food,water, emergency supplies and other items.
* Intended only for full-time employees

Evaluation by Society

Sustainability in the Value Chain

360

Opened The Hiyoshi Dormitory

Offering Approx.

Units (March 2018)* ITOCHU Corporation has a long average number of years employed of 18 years and only around 1.8% of employees voluntarily resign. It is a company where
many employees choose to stay for the long-term.

18.3

Average Years of Service

years

1.8

Voluntary Resignation Rate%Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Labor Practices: Labor Union

Society

Policy and Basic Concept

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

1. Providing disadvantageous treatment to a worker because the

Headquarters: General meeting of delegates and officers at headquarters
Branch: Four branches (Tokyo, Osaka, Nagoya, Tohoku)

worker is a union member, or on similar grounds
Example: Discharging or transferring a worker because the worker
has gone on strike as a union member, or on similar grounds
2. Refusing to bargain collectively without justifiable cause
Example: Refusing to come to the bargaining table or sending
someone without authority as a representative to attend a collective
bargaining session as a representative
3. Interfering with or providing financial assistance for the organization
or operation of a labor union
Example: Interfering with or interrupting the union’s events orproviding financial support for union operational expenses
4. Providing disadvantageous treatment, such as dismissal, to a worker
in response to an allegation made by the worker to the Labor
Relations Commission
Example: Providing treatment, such as dismissal or wage reduction,
to a worker in response to an allegation made by the worker to the
Labor Relations Commission, or to a similar action by the worker

General meeting of Delegates■ Initiatives Together With ITOCHU Labor Union in

Structures and Systems
ITOCHU Corporation has had a labor union since its founding. The objective of the Labor Union is toimprove labor conditions and other economic concerns of its members. The Labor Union carries out all
required operations to fulfill this objective. (Article 3, Rules of the ITOCHU Labor Union)●

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

DelegatesOﬃcers from
Headquarters

Union Member

107

ESG Data(Society)

The company is prohibited from taking any of the following actions:

ITOCHU Corporation hopes to achieve an environment in which employees can leverage their individual
talents and concentrate on their work without worry. To this end, we maintain a system of rich employee
benefits and employee welfare facilities. Our original employee welfare measures include a morningfocused work style and health management. These have met with praise both inside and outside thecompany, and have contributed to increased employee motivation.
ITOCHU has established a labor union with which we hold constructive discussions to improve theworking conditions as well as economic status of its constituents.

●

Governance

Respect and Consideration for Human Rights

Ultimate decision-making body made up of elected delegates
Discusses and decides on important matters such as policies concerning union
activities, budget control, appointment and removal of headquarters oﬃcers,
matters related to labor disputes, etc.
Carry out duties in accordance with union policies discussed and determinedat the general meeting of delegates
Elected on for each branch by votes of union members (Approx. 90 people)

FYE 2023

April 2022 toMarch 2023
(Monthly)
May toSeptember
2022
May toDecember
2022

Health Committee
Evolution of flexible work styles(measures to support balancing
childcare with work)
Introduction of a morning-focused
flextime system (including a trial)

June 2022

Account Settlement Meeting with
the CFO and CSO

December
2022

Management Meeting with theMetals & Minerals Company

March 2023

Exchange of opinions with the
General Manager of Human
Resources & General Affairs Division
on Women’s Advancement

Number of
Non-members:���(��%)Number of Members:�,���(��%)Ratio of ITOCHU Labor Union Members as ofApril 1, 2023

■ Activities by the Headquarters of the Labor Union

in FYE 2023

April 2022 toMarch 2023
(Twice a Week)

April, June,
November andDecember
2022, April 2023

General Meeting of Officers

General Meeting of Delegates

December 2022

Meeting attended by Three
Top-ranking Officers from Each
BranchApril 2022 toMarch 2023

Activities by the Headquarters
Advisory Committee (side workand clerical work), Career
Development Support

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Labor Practices: Labor Union

Society

Governance

Respect and Consideration for Human Rights

Comments from the ITOCHU Labor Union President

My name is Aki Okuyama. I will serve as the ITOCHU Labor Union President in FYE 2024.
I am fully committed to working towards achieving three missions I value most: To protect
union members, to improve the company, and the mission I adopted last fiscal year, tocreate opportunities.
This fiscal year, I want to focus on the following five points.
1. Dialogue and checks with management and improvement and governance of working
environment
2. Realization of wage and personnel systems that are convincing to union members
3. Promotion of work style reforms, support for career development, and promotion of
wellbeing
Aki Okuyama
4. Improvement in the treatment of expatriates, secondees, and union members working
President,
at branch offices
ITOCHU Labor Union
5. Rebranding union organizations
I will do my best this fiscal year to make this a company where all union members can work with enthusiasm.
The missions, action guidelines and vision of the labor union is as below.

	Missions of the Union (= the Meaning of the Existence of
Activeparticipation
the Union and the Values at the Basis of Our Activities):by union members“To protect union members,” “To improve the company,”
Stayand “To create opportunities”
Ahead●
An improvement in	Action Guidelines (= the Key Phrases We Value in Our
the labor environment
thanks to the activities
Daily Work):of the union
Stay Ahead: Proactively adopt advanced concepts and work
Missionstyles to ensure the organization constantly strengthens
Improved
Improved“To protect union members”
moralecompany
Engage in Dialog: Conduct proposal-based and joint“To improve the company”
performance“To create opportunities”
development-based activities while emphasizing
dialogue with union members and management
EngageBein
Reliable
Be Reliable: Build a relationship of trust with union
Dialogmembers and use that as the basis to perform activities
with a sense of unity
Improved●	Vision (= Ideal Future State):
employee treatment
We are aiming to achieve a virtuous cycle of corporate
management by improving the labor environment andthe economic status of our members.
((1) An improvement in the labor environment thanks to the activities of the union accelerates the virtuous cycleof (2) active participation by union members, (3) improved company performance, (4) improved employee
treatment, (5) improved morale and then back to (2) again)
●

● 

● 

● 

We will aim to formulate a mid-term activity plan for 2030 based on the challenges faced by the ITOCHU Labor
Union in FYE 2023. We will rebrand the union and strengthen our organizational structure and financial constitution
through dialog with union members and delegates representing workplaces.

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

108

ESG Data(Society)Dialogue with the Labor Union

ITOCHU Corporation discusses a wide range of issues with the ITOCHU Labor Union
in order to achieve our corporate mission “Sampo-yoshi.” In FYE 2023, we held atotal of three sessions of management meetings: an account settlement meetingwith the CFO・CSO, a management meeting with the Metal Company President, andan exchange of opinions with the General Manager of Human Resources & General
Affairs Division on women’s advancement. Recurrent, active discussion between
labor and management makes both cognizant of the challenges facing the company
and keeps them on the same page. This builds a healthy relationship that enables
them to consider and implement measures for improvement.

Dialogue with the President

ITOCHU proactively establishes opportunities for the President and employees toengage in direct two-way dialogue. In FYE 2023, we proactively engaged in dialogue
with employees by creating nearly 100 opportunities to connect with employees,
including visits to local plants and offices. The President had the opportunity to
speak with employees directly in his own words about our management policy andeffort needed to achieve that vision. At the same time, employees had theopportunity to present opinions and questions to the President. These were
important opportunities that helped enhance two-way communication.

Dialogue with the Division Company President

ITOCHU proactively establishes opportunities for the company president andcorporate officers to engage in dialogue with employees. Normally, all theemployees under the control of an organization are gathered together once every
half a year. The top management of that organization then speaks in their own
words about the company-wide management policy, organization targets andstrategies toward target achievement. It is possible for employees to give theiropinions and ask questions at these dialogue meetings. These are valuable
opportunities for all employees, including the top management, to think about what
we should personally do to further grow the organizations to which we belong.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Labor Practices: Diversity

Society

Governance

Respect and Consideration for Human Rights

Evaluation by Society

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

109

ESG Data(Society)

Policy and Basic Concept

ITOCHU views diversifying consumer needs with a market-oriented approach. We believe accepting and utilizing diversity (D&I: diversity and inclusion) is essential to provide new value.
ITOCHU Corporation respects human rights and prohibits all forms of discrimination, including that based on race, gender, religion, nationality and age. We are creating an environment where employees do not fall victim to power
harassment or sexual harassment (including unfairly disadvantaging or otherwise harassing employees who are sexual minorities) in the workplace and where we accept diverse values. This is an environment in which each of ouremployees is motivated to work and can demonstrate their abilities to the fullest through flexible work styles and individual support (E: equity). We use a diversity month organized by the Human Resources & General Affairs Divisionand organization manager training to raise awareness about the importance of diversity and publicization of support systems.
Additionally, we are establishing a workplace environment where discriminatory remarks about sexual orientation/gender identity and comments premised on subconscious gender stereotypes are not tolerated. Employees also
have access to consultation services.
We are linking an environment where employees with diverse values can play an active role utilizing their unique qualities to growth of our employees, enhancement in our organizational capabilities and an expansion in ourearnings power. We are aiming to achieve our corporate philosophy of “Sampo-yoshi” (good for the buyer, good for the seller and good for society) through such initiatives.

Targets and Action Plan
Division
Company

SDGs
Targets

ImpactClassification

Issues to Address

Business
Area

Commitment

Continue fair and equitable recruitment
and promotion.
Create a work environment in which
employees accept and leverage diverse
We will prohibit all types ofvalues.
● In anticipation of an increase in dualdiscrimination, including
those based on race,income couples, enhance support forgender, religion, nationality
balancing childcare, nursing care, fertility
Humanand age, and respect humantreatment and similar circumstances withresources rights. We will accept
work (including utilization of flexible
affairs
diverse values and create an
working style).
● Individual support according to the life
environment where each
employee maximize theirstage and career of each individual
ability with flexible working ● Support for Seniors’ Success (over age of 60)● Promote understanding and acceptance ofstyle and other supports.
LGBTQ and other sexual minority
employees (e.g., employee education).
● Give reasonable consideration to the work
environment of employees with disabilities.
●●

Headquarters

Labor
Practices

Creating anenvironment thatallows diverse
human resources toexercise theirpotential

Performance Indicators(Non-Consolidated)

Specific Approach●

Achieve the following plans by the end of
FYE 2024(1) Female employees as a percentage of
new employees: 25%(2) Female employees as a percentage ofworkforce: 25%(3) Female employees as a percentage of
employees in managerial positions: 9%(4) Percentage of male employees whotake childcare leave: Over 50%(5) Compliance to rate of the employmentof whose with disabilities which
designated by law* (1) to (4) are stipulated in the General Employer

Action Plan under the Act on Promotion of
Women’s Participation and Advancement in the
Workplace

Degree of Progress

Progress of the Performance Indicators(1) The percentage of female employees as a percentage of new employees: 32.1% in FYE
2023.
(2) The percentage of female employees as a percentage of workforce: 24.3% as of March
2023.
(3) The percentage of female employees in managerial positions: 8.6% as of March 2023.
(4) The percentage of male employees who take childcare leave: 52% in FYE 2023.
(5) The percentage of employment of those with disabilities over our entire group: 2.5% as ofMarch 2023 (Includes ITOCHU Uneedus Co., Ltd. and ITOCHU Human Resources & General
Affairs Services Inc.)● Introduced the following measures as a result of discussions at the Women’s Participation
Promotion Committee(1) Broad options for work styles after childbirth and introduce a “childcare support
allowance” (from October 2022)(2) Evolution of work-style reforms, such as the introduction of a “morning-focused flexible
time system” and “working from home” for all employees (from January 2023)● Introduced the “Health and Childcare Concierge”, an anonymous consultation desk by a
midwife advisor that can be used by employees and their families, including those living
overseas (from January 2023)●

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Labor Practices: Diversity

Society

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Diversity, Equity and Inclusion

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

110

ESG Data(Society)Support for Female Employees

ITOCHU views diversifying consumer needs with a market-oriented approach. We believe accepting and
ITOCHU has expanded systems to further the diversification of its talent including female employees andutilizing diversity is essential to provide new value. We have been supporting the expansion, retention andto entrench that diversification with the Plan for Promotion of Human Resource Diversification. We haveactive participation of diverse human resources, including women, since an early stage. We now provide
tackled initiatives such as morning-focused work, health management and measures to support working
individual support which grasps the site and individual circumstances in addition to uniform systems
while undergoing cancer treatment since FYE 2011. This is based on work style reform to raise laborwhich support balancing of childcare and work.
productivity by all employees working in good health with high motivation. Those initiatives have led to
We will continue to support the autonomous career formation of each individual employee. We will
the formation of a working environment where all our employees can demonstrate their abilities not justpromote the building of a strict but rewarding corporate culture in which diverse values are respected andemployees with time constraints such as female employees.
in which all our employees can demonstrate their abilities to the maximum.
Currently, the generation with an increased number of female hires has entered an important stage
We have held “Diversity Month” every December since FYE 2019 (called “Diversity Month” until FYE
when those employees become candidates for managerial positions. We are providing meticulous2022). We provide a variety of information, training sessions and workshops for all employees to deepen
individual support according to the life stage and career of each individual by utilizing systems which
understanding of diversity, equality and inclusion.
support a work-life balance beyond the level required by law as a safety net in anticipation of an increase
・Challenging, but Rewarding Company
・Labor productivity improvement in dual-income households. In addition, we are looking to contribute to the SDGs (e.g., gender equality)
For more details, please refer to Support for Diversity, Equity & Inclusion. (P168)
・Health Managementnot(foronly
for our company but for Japan. We are doing this by fostering an internal culture in which diverse
・Site, individual and relationship reform
women’sadvancement)■ Transition of Our Human Resource Diversification Initiatives
employees can be a success and by declaring our endorsement of measures to promote the success of
women in the workplace by government agencies and economic bodies.
“Diversity as an Organization is Indispensable”“Market-oriented” Perspective andMoreover, we established the Women’s Advancement Committee in October 2021 as a voluntary
for the Sustainable Development of a Company
Contribution to “the SDGs”
advisory committee of the Board of Directors to accelerate the pace of our support for the success offemale employees. An Outside Director serves as the chair of the committee. We have built a structure in
Support for
Numerical
Entrenchment andDevelopment andwhich outside officers account for more than half of the total number of committee members with the
Individual Support
Enlargement andActivity Support
Dual-income
Program Expansion
Board of Directors supervising important measures. The committee is working together with theHouseholds
management to support the success of women. We will continue to move through the cycle of (1) holdPhase 1: Promotion
Phase 2: Promotion
Women’ sdiscussions with sites, (2) hold discussions in the Women’s Advancement Committee and (3) report to thePlan on Human
Plan on Human
Advancement
Work-Style Reforms
Resource
Resource
Committe
Board of Directors after grasping sites and individual circumstances in the future. We will then incorporate（From ����）Diversiﬁcation
Diversiﬁcation（���� ～）
the results into effective measures.
（���� to ����）（���� to ����）・Setting of numericaltargets
・Training of executive
managers
・Flexible childcare andnursing care programs
・Reforming employees’
awareness

・Continuation ofnumerical targets
・Awareness tounderstand, respect andutilize diversity
・Comfortable working
environment
・Career development
support・Challenging, but
Rewarding Company
・Labor productivity
improvement
・Health Management
・Site, individual andrelationship reform (forwomen’s advancement)

・Evolution of work stylereform・Development andmonitoring to promote
・Support for earlyreinstatement
・Support for balancing
fertility treatment andwork■ Women’s Advancement Committee (As of the end of March 2023)

Board of Directors

Half are Outside Directors, andPOINT
half of all directors are women.

POINT

Committee recommendations submitted
directly to the Board of Directors

Voluntary Advisory Committee chair: Atsuko Muraki, Outside Director
Members: Makiko Nakamori, Outside Director/Masumi Kikuchi, Outside
Committee

Ideal Situation

Create an environment that allows
Audit & Supervisory Board Member / Fumihiko Kobayashi,each employee, regardless ofRepresentative Director (CAO) / Shuzaburo Tsuchihashi,
Women’sgender, nationality, or age, to
Audit & Supervisory Board Member / Yoshiko Matoba,
Advancement
apply
their unique traits towards
Executive Oﬃcer and General Manager of the Human
Committee
work in a way that leads to
Resources & General Aﬀairs Divisionindividual improvement,
Secretariat: Corporate Planning & Administrative Division / Humanorganizational enhancement,
Resources & General Aﬀairs Divisionand proﬁt growth.
Pick up on local issues, Issue recommendations
POINT
on policies and initiatives for each location(Locations) Division companies, Headquarters, Overseas Blocs

Please refer to our action plan stipulating specific targets and initiatives moving forward.
●

Action Plan Based on the “Act of Promotion of Women’s Participation and Advancement in the Workplace” and the “Act on Advancement of Measures to
Support Raising Next-Generation Children” (https://www.itochu.co.jp/en/csr/pdf/action_plan.pdf) PDF

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Labor Practices: Diversity

Society■ Measures to Support the Success of Female Employees

Stage

Environment & Issue Recognition

Initial Hiring(1989-2003)●

Hiring of women required by the Equal
Opportunity Law for Men and Women
enacted in 1986●

More Female
Employees &Programs(2004-2011)●

Hiring more women and providing duties
throughout the company is essential toproactively promoting women toleadership positions● To entrench women in the company,
providing an environment where they canbalance work with child/elder care●

Legally required

Welcoming
company forcareer-track
women

Abolished numerical targets and focusing
on supporting measures
Bulk of career-track women enter their30s, with major life events to follow● Individual support to women who
independently develop their careers withchallenge.
● Laws and regulations against
harassments● Required the disclosure of Human Capital● Promotion of men’s parental leave (e.xpaternity leave)● Support for work-life balance forincreasing dual-income households●●

Programs Review& Promotion of
TalentAdvancement(2012- )Work Style
Reform・Increasein Dual-income
Households
Strict, but
rewardingcompany

Establish a company-wide system forutilizing diverse human resources

Correction of long working hours andpromotion of morningfocusedworking system● Health improvement programs and“Support Measures for Balancing
Cancer Care and Work”● Harassments prevention trainings etc.
●

Governance

Respect and Consideration for Human Rights

Specific Action

Continuous hiring of several career-track women(every year)● Transfers from clerical positions● Introduce child-care support program
Set numerical targets (abolished)
Introduce of mentoring program (abolished)
Expand child-rearing support program● Introduce leave for employees whose spouses
are transferred overseas(replaced to rehiring program)● Set up an in-house daycare● Hold various forums●●

Stricter operation of childcare program
Switch to rehiring program
Support overseas postings (for employeestransferring overseas with children without
spouses)● Identify and develop candidates for promotion● Subcommittee gathers opinions from women in
the workplace● Foster career awareness (forums etc.)● Guidance before maternity/childcare leave andthree-party meetings before returning from theleave● Interviews before and after overseas postings● Introduce work-from-home system● Career Workshop for clerical employees● Transfer from clerical positions (earlier year of
eligibility, transferee follow-ups)● Promotion of childcare leave for men employees● Women’s career and health seminars● Provide alternative options of work-style afterchildbirth● Fertility treatment holiday, introduction of
Fertility treatment support program● Introduction of concierge for health • childcare

Evaluation by Society

SDGs Bond (Sustainability Bond)

Responsibilities to Customers●

Social Contribution Activities

111

ESG Data(Society)Support for LGBT and Other Sexual Minorities

We installed a multipurpose restroom on the internal meeting room floor in 2018. This can be used byeveryone who visits our building as well as our employees. We also established a consulting desk
exclusively for inquiries relating to LGBT and other sexual minorities in addition to our existing employee
consulting desks in FYE 2021. This means we have set up a structure that allows employees to consult withexperts anonymously about how to interact with colleagues and business partners in addition to handlinginquiries from LGBT and other sexual minority employees.
Examples of Support for LGBT and Others 1.

Installed Multipurpose
Restrooms (FYE2019)●●

Independent Assurance Report

Sustainability in the Value Chain

Examples of Support for LGBT and Others 2.

Established a Consulting
Desk for LGBT and Other
Sexual Minorities (FYE2021)

Diverse Consulting Desks for a Work-Life Balance

We respect the diverse values of our employees and their families. We are creating an environment where
all our employees can demonstrate their abilities with peace of mind.
Name

Main Contents

Concierge forhealth・childcare

GeneralFertility Treatment
Support Program

Fertility treatment

Searching Nursery
School Concierge

Searching Nursery
School Concierge

Nursing Concierge

Nursing

Consultation desk for
LGBTQ

LGBTQ

Border - Less Medical
Concierges

Lifestyle Disease

Overview

Employees in Japan and abroad and their families cananonymously consult online with a counselor in charge (a nurse
and a midwife certified as a public health nurse) who understands
ITOCHU System about their mental and physical health andchildcare concerns.
Employees and their families can receive fertility treatment
through coupons for affiliated gynecological clinics and videos
promoting understanding.

Explains basic knowledge about how to search and select licensed
nursery schools. Help to estimate the selection index for licensed
nursery schools, lists neighboring nursery schools, and provides
one-stop information.
A one-stop service and consultation service from temporary
response to problem resolution by a our company specialist
counselor. Specific problem resolution includes introduction of ourcompany system, introduction and arrangement of care managers,
introduction and arrangement of nursing homes, coordination andarrangement of nursing insurance applications, etc.
Consult outside experts anonymously for concerns about sexual
orientation and gender identity. Available to all parties.
Each employee, whether domestic or foreign, is tutored by apublic health nurse or nurse in close collaboration with a
specialist in their particular lifestyle disease.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Labor Practices: Diversity

Society

Working Together with Persons with Disabilities

To provide persons with disabilities with a workplace that is motivating and rewarding, we established
ITOCHU Uneedus Co., Ltd., our first special subsidiary, in Yokohama, Kanagawa Prefecture in 1987. The
employment rate for persons with disabilities in ITOCHU is 2.48% as of March 2023 (the statutory
employment rate is 2.30%). We are promoting an expansion in the recruitment and range of work of
persons with disabilities in anticipation of an increase in the statutory employment rate in the future.

Initiatives by ITOCHU Uneedus Co., Ltd.

ITOCHU Uneedus Co., Ltd. is involved in businesses such as dry cleaning, printing, document digitization,
photograph services, mail collection and delivery, and laundry and cleaning with persons with andwithout disabilities coming together as one to support each other. To expand business as well as to createa more welcoming workplace environment for
employees with disabilities, in November 2015 thecompany relocated to new offices in Yokohama’s
Tsuzuki Ward with the latest equipment in auniversal design. The company is currently
involved in business in four locations: its Aoyama
Office, Hiyoshi Office and a dry-cleaning service
store called Yotsuba Cleaning (Asahi-ku, Yokohama)in addition to its head office in Yokohama’s Tsuzuki
Ward. It will continue to proactively encouragesocial participation by people with disabilities andto provide value to society through its work with
Head office building of ITOCHU Uneedus Co., Ltd. (Tsuzuki-ku,
the aim of creating a work environment where it is
Yokohama)
possible to feel the joy of working in the future.
http://www.uneedus.co.jp/ (Japanese only)●

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Evaluation by Society

Work in the print service department

Social Contribution Activities

112

ESG Data(Society)Support for Seniors’ Success

ITOCHU employs all those who so desire under the Employment Extension System after they reach retirement
age at 60 years old from the perspective of the decreasing birthrate and aging population in Japan and activity
support for diverse personnel. This means we are developing an environment in which middle-aged and older
employees can continue to work utilizing the wealth of knowledge and experience they possess even after they
have reached the retirement age. We also hold training such as life planning seminars for employees at the ageof 58 years old and future course selection briefings for employees. Therefore, we are supporting work styles
and money plans after the extension of the employment of employees. Furthermore, we hold career design
training for career-track employees who are 40 and 48 years old and for clerical employees who are 35 and 45
years old. Those employees take an inventory of their own career and skills and then visualize their experienceand strengths. Upon that, we provide them with the opportunity to consider re-learning career skills(re-skilling)
they will need in the future. We even have some employees who continue working with us after they reach theage of 65 years old. We will do yet more to create an environment where middle-aged and older employees cancontinue performing motivating and rewarding work. In addition, we have built a platform to support ourformer employees. We support the activities of our former employees even after they have left our company.
This initiative includes providing opportunities for social contribution activities and volunteers, management
staff of KIDS PARK operated by our company, and Japanese language instructors for our overseas national staff.
At the Age of 58

Life Plan
Seminars

At the Age of 59

Career Planning
Programs for After
Retirement

At the Age of 60

Employment
Extension
Program

Performance Data

Number of Hires by Gender and Adoption Rate for Mid-Career (P166)
Employee Status (as of March 31 for each respective year) (P165)● Share of Women in Career-track / Managerial / General Managerial / Executive Positions(as of March 31 for each Respective Year) (P165)● Gender Pay Gap (as of March 31, 2023) (P165)● Use of Childcare & Nursing Care Programs (P166)● Employment of Disabled Persons (as of March 1 for each Respective Year) (P166)●●

Accolades for ITOCHU Corporation

Work in the cleaning department

Independent Assurance Report

Sustainability in the Value Chain

ITOCHU Corporation’s initiatives in “Creating Environments that Bring Out the Best in Employees” havewon much praise.
We won the Ministerial Award for Women Empowering Companies in FYE 2021. In FYE 2022, we wereselected as a Nadeshiko Brand. This is an initiative run jointly by the Ministry of Economy, Trade andIndustry and the Tokyo Stock Exchange.
For more details, please refer to Evaluation by Society (Diversity) (P205).

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Human Resources Development

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

113

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

ESG Data(Society)

Human Resources Development Policy

The ITOCHU Group works together as one to provide each employees with opportunities to pursue spontaneous learning and take on new challenges to gain robust business experience. By doing so, we push ahead with humanresource development and provide career building assistance in a way that is aligned with the diverse skills and aptitudes our employees possess. In addition, Human resource development expenses were, in FYE 2000, repositioned by
the Company as investment in human capital essential to supporting sustainable improvement in corporate value. Therefore, we regularly review these expenses on a Company-wide basis and direct investment to achieve the best
possible outcomes in terms of human resource development. Through these Group-wide initiatives, we develop Merchants capable of fulfilling “Infinite Missions” and adapting to changes in the social environment and customer needs,
with the aim of realizing “Sampo-yoshi,” the ITOCHU Group’s corporate mission.

Targets and Action Plan

Based on our employee training policy, ITOCHU Corporation works to achieve the following goals.
Division
SDGs
Company Targets

Headquarters

ImpactClassification

Labor
Practices

Issues to Address

Sustainable
development of
employees’capabilities

Business
Area

Human
resources
affairs

Commitment

We will develop training programs on a
global basis and provide opportunities tolearn proactively that respond to thechanging times and business needs witha market-oriented mindset to foster
employees who can constantly change
their business to meet their needs while
inheriting the corporate philosophy. We
will also utilize training programs tocontinuously produce excellent humanresources.

Performance Indicators(Non-Consolidated)

Specific ApproachContinue to develop and provide training
programs at all jobs levels.
Continue and enhance overseas deployment ofinterns and language trainees.
● Offer diverse career path options and experience indiverse work through regular rotation.
● Foster career awareness among employees byenhancing personnel assessments, career vision
training, career counselling systems and otherprograms/systems.

Degree of Progress●●

Annual training-related expenses exceeding one billion yen.
The number of employees who joined human development
program (cumulative total number) 50,000 or more.
● Percentage of career-track employees who are deployed overseas
in their first eight years at the company at 80% or higher.
●●

Structures and Systems

ITOCHU Corporation implements a global personnel strategy. Specifically, in FYE 2011, we established leadership standards and we constructed the TalentManagement Process to hire, develop, utilize and promote excellent talent who will expand overseas revenues worldwide.
We also reflect the corporate philosophy and values we have inherited since the foundation of our company not only in our recruitment standards but in ourevaluation and training systems. With this, we are recruiting and training people who match the values of ITOCHU Corporation on a global basis. We provide aselective online training program as support for career formation according to diverse values. This program enables employees to take about 3,000 courses
anywhere. It is utilized by about 1,000 overseas bloc employees every year. We have so far stationed a total of about 100 overseas bloc employees in ourheadquarters from the perspective of career formation. The purpose is to deepen their understanding of the corporate philosophy, to acquire knowledge andexperience through the headquarters’ business, and to build a human network. Currently, there are about 700 overseas bloc employees among management
personnel (equivalent to managerial positions). We will continue to work with each company and overseas bloc to proactively train and promote excellent
employees in the right place regardless of their nationality. This will lead to a further business expansion overseas.
* We have created the ITOCHU Global Classification (IGC). The IGC is a global grading system based on positions and duties at all levels worldwide. We use it to place, promote and train personnel regardless of nationality.
* We have set behavioral requirements that leaders should possess on a global basis. We use these in the recruitment standards and evaluation standards.
* Relevant data:Overseas Bloc Employees by Region (P165)

Annual training-related expenses forecast: 1.63 Billion yen in FYE 2023.
The number of employees who joined human development program(cumulative total number) 48,044.
● Overseas dispatch rate for career-track employees in up to their eighth year
since joining the company: 89.4%.
●●■ Talent Management Process

ScreenExcellent
TalentAssessResults &Competency

Assignment

TalentManagement

CDP

CareerDevelopment
Plan

Train,
Utilize &Promote HR Development Programs

Promotions, project assignments,
NS HQ UTR system,* transfer within /between blocs

Bloc personnel development
program, outside MBA programs,
global training, excellent talentdevelopment program* Program to accept overseas bloc employees at Tokyo Headquarters

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Human Resources Development

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

114

ESG Data(Society)

Training System
The ITOCHU Corporation training system consists mainly of selective training for future management personnel and selective training for career development based on meetings with superiors in addition to mandatory training whenan employee is appointed an organizational manager or is posted overseas. There is a wide range of training opportunities at various levels, not only for Headquarters employees, but also for those at certain overseas bloc companies
and Group companies.
Overseas blocs arrange their own training systems to teach the skills and expertise required for their business and markets. In combination with the headquarters training system, they develop management talent capable of global
success.
ITOCHU Employees

MandatoryOﬃcers

Dispatch to Speciﬁc Foreign
Language Course/
English Master Course

IMBA

�th Year Training

Temp Staﬀ

Onboarding for Temp Staﬀ

Prospective
Staﬀ

Onboarding for Prospective Staﬀ

BusinessInnovation Course

Training for
Clerical・Specialist
Training forYong employees

GNP
AdvancedGNP
NS UTR
Training

Onboarding for
New Employees

Onboarding for New Employees

Onboarding for New Employees

GLP

Lead Employee
Training�th Year Training

Leadershipin Action(P�)

Training forManagers︵ Udemy)Online education Platform

Business Administration
Training (Basic)

Courses for Basics

Lead Employee Training

Training for
Appointed Oﬃcers

Business Professional Course

Business Administration
Training (Advance)

Career Design Training

Short-term Business
SchoolLesson for language

Clerical
Staﬀ

Coaching
� on � Training

Career Vision Support Training

New
Graduate

Business Transformation
Workshop

DX related training

JuniorGlobal Development
Program (NS)for Group Company Employee

GEP Training

Cross-cultural
Management Training

Lead Employee Training

Mid-career Hires Training

Mid-career

Career training︵ Udemy)Online education Platform

Training for Newly Appointed
Section Managers

Selective

Life Plan Seminar

Training for Newly Appointed
General Managers

Pre Dispatch Training

SectionManagerTraining for Appointed Oﬃcers

Workshop for
Organizational Managers

GeneralManager

Selection

Career Design Training

Career Workshop

Courses for Basics

Training for New Appointed
Grade B� Employees
�th Year Training

Training forprospective employees
Usage Guide

Applicable for Group Companies employees

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Human Resources Development

Society

Training Results●●

Relevant data: Time/Cost Allotted for Employee Skills Development Training (P167)
Relevant data: Attendance in Major Training (P167)

Key Points for Better Training

In FYE 2014, we created a training scheme for talent who shoulder administrative responsibilities at Group
companies from the perspective of group management. Specifically, in FYE 2015, we started Business
Management Training for young employees to learn about accounting work efficiently in a short period of timethrough practice to strengthen the acquisition of basic knowledge on business management and risk
management techniques. Additionally, we have a replete lineup of Group company employee trainings so thatdomestic Group company employees can upgrade their skills and expand their networks within the Group.
Furthermore, we conduct trainings in the Global Development Program and the Short-Term Business
School Dispatch to develop global management talents with an overseas perspective. Meanwhile, we wereamong the first to offer a short-term overseas dispatch system in 1999. This program is designed to
improve the English language skills of young employees at the headquarters and foster a global mindset.
Chinese and other special language programs dispatch employees to emerging markets such as China andetc. These are the core programs for our initiatives to foster specialists in each market.
Our employees take stock of their strengths/weaknesses and career every year from the perspective of
independent learning. They meet with their superiors to discuss the development of their abilities (reskilling) and their vision for the future. Our employees can choose to take more than 100 training courses
we have prepared as Career Vision Support Training.
For our training with an emphasis on practical on-the-job skills, we conduct independent training
programs that are based on each company or
Headquarters administrative division’s talentstrategy and tailored for various objectives todevelop industry professionals with diverse values.
Most recently, we have been providing our
employees with opportunities for training andlectures aimed at studying cutting edge businessmodel cases and acquiring IT expertise according
to our Mid-term Management Plan. The aim ofthese training programs is to develop personnel toput into practice digital transformation focused on
Global Development Program
profitability to drive evolution of business.
●

Governance

Respect and Consideration for Human Rights

Relevant data: Number of Overseas Local Employee Management Personnel (March 31, 2023) (P165)

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Talent Synergy with CPG & CITIC

Social Contribution Activities

115

ESG Data(Society)

In January 2015, ITOCHU Corporation formed a strategic business and capital tie-up with Charoen
Pokphand Group Company Limited (CPG) and CITIC Limited (CITIC), which are some of the leading
conglomerates in Asia and China, respectively. Thereafter, in January 2016, the three-company group
signed a memorandum to strengthen talent synergies as the foundation for producing medium- tolong-term business synergies and raising enterprise value. According to the memorandum, the goal for the
future is to build a robust network of talent between the three companies and construct a foundation thatwill support their strategic partnership. This will be accomplished by dispatching and exchanging talent
between the three companies from the short-term to the long-term, dispatching trainees to join training
programs at other companies, and conducting new joint training.
In FYE 2017, the three companies held their first joint training in Tokyo. We held this combined training
seminar for the second time in Beijing, where CITIC is based, in FYE 2018 and for the third time in Thailand(Khao Yai and Bangkok), where CPG is based, in FYE 2019. In FYE 2020, we held this training for the fourth
time in Tokyo. We select employees who match the business themes established in advance from thethree companies. The participants come to fully understand each other’s management policies, values,
history and main business. They then thoroughly discuss the creation of business synergy. With this, theaim is to build a solid personnel network as partners.
The three firms are also steadily accepting trainees into their existing programs through short- to-long-term talent dispatch and exchange arrangements.
In addition, the strategic business and capital tie-up was accompanied by the FYE 2016 startup of a
project to develop 1,000 Chinese-speaking employees, who account for one-third of all career-track
employees. The project has made progress in laying a solid linguistic foundation. By the end of FYE 2018,
we reached our goal of 1,000 people. We continue developing those employees even after that. The total
number of trainees as of the end of FYE 2023 was 1,293. We will continue to build the foundations tofurther promote the expansion of business in China and the rest of Asia in the future.

The 4th Three Companies’ Combined Training Program (Tokyo)(July 2019)

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Human Resources Development

Society

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

116

ESG Data(Society)

HR Appraisal & Assessment System

ITOCHU Morning Activity Seminar

In September 2016, we began conducting earlymorning training sessions and presentations as
one measure to encourage shifts beginning in theearly morning. The themes of these seminars arefocused on the next generation of business andhealth. We held these seminars a total of 3 times
with the participation of 864 people in FYE 2023.
We received comments from the participants likethe following: “I was able to hear stimulating
stories before work, so I felt very positive.” We plan
to hold these seminars on a periodic basis in the
future.

Governance

Respect and Consideration for Human Rights

An ITOCHU Morning Activity Seminar

The HR Appraisal & Assessment System is a core part of the human resources organization that helps
employees fully demonstrate their capabilities in a motivated and rewarding manner. It covers all ITOCHU
Corporation employees. One part of the system is Management By Objectives (MBO), by which we assign
individual employees with targets that match up with the management plan, then confirm execution. Thisapproach helps us carry out business strategies.
We determine bonuses by reflecting company performance in addition to individual performanceassessments based on MBO. This has led to an increase in employees’ awareness to participate inmanagement. In addition, we comprehensively grasp individual employee’s competencies, expertise, past
career, aspirations and suitability. We have established a human resources assessment system that we
utilize in placement and transfer planning and an employee commendation system that recognizes
employees who have made significant contributions in quantitative and qualitative terms and teams thathave produced results based on the corporate action guidelines.
In order for these components of the HR Appraisal & Assessment System to function, we believe it iscritically important that superiors conduct fair and impartial evaluations and meet with their subordinates
to provide feedback. 360° feedback* assessor training and one-on-one interviews enlighten superiors sothat they will encourage employees to develop and grow.
* Multifaceted observation: A system by which feedback from observations by the organization managers themselves and subordinates are used to review

everyday personnel management that the organization manager typically does not notice, followed, if necessary, by initiatives to make improvements or
upgrade capabilities. We make sure to apply this approach every year.

■ Overall Picture of the Personnel Evaluation Systems

Competency Assessment

Right personin the right place■ Morning Activity Seminar Results for FYE 2023

Date

January 2023

October 2022

August 2022

Theme

What Should We Do Now after COVID-19?
Focusing on Autonomic Nerves and theIntestinal Environment

Work Style Reform Arising from Experiencing
Childcare Leave Three times: 100 Work
Styles for 100 People
Entrepreneurial Spirit in the Reiwa Period(2019 Onward): Taking on the
Unprecedented Challenge of the SpaceBusiness

Speaker

Hiroyuki Kobayashi, Professor in the
Faculty of Medicine at Juntendo
University
Yoshihisa Aono, CEO of Cybozu, Inc.
Nobu Okada, Founder & CEO of
Astroscale Holdings Inc.

Personnel
Training

360° Feedback

Ascertain skills,
suitability &aspirations, produce“Assignment &Transfer Plan”

Feedback on deviation
between results of selfanalysis and superior’s
understanding/
subordinates’
observations

Career Vision Sheet

Strength & Weakness Evaluation
Capability Evaluation

Beneﬁts

Job Evaluation

MBO

Fixed salary

Evaluate work andresponsibilities

Assess individual
performance

Variable pay■ Management By Objectives (MBO) Flow

April-May

Oct-Nov

Mar-Apr (next year)

Set objectives

Midterm review

End-of-term
review■ Competency Assessment Flow

Sep

Strength &Weakness Evaluation,
Capability Evaluation

Nov

Fill in Career
Vision Sheet

Dec-JanInterview with boss/
Capability Evaluation
Feedback

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Human Resources Development

Society

Career Support

The Career Counseling Center provides wide-ranging counseling and support services for the diverse careersof all employees. We have established a self-career dock system that provides opportunities for career
counseling together with the training held at each milestone after an employee joins the company. All thecenter’s counselors are nationally certified career consultants. They support the independent initiatives of
those seeking advice about balancing work with childcare and nursing care, communication in theworkplace, and other areas in addition to future career according to the situation of each employee. The
counselors also support mid-career hires to smoothly adapt to life at ITOCHU and assist with the success of
middle-aged and older employees. There are over 800 consultation visits to the center each year. Here,visitors are provided complete confidentiality so they can feel at ease conversing with a counselor. The
center’s aim is for employees to develop an awareness about how to independently shape their career.

Formal Introduction of the Challenge Career System

We have introduced the Challenge Career System as a measure to increase the mobility of personnel for
career-track employees (excluding organization managers) and clerical employees working in Japan. With
the system, employees can check a list of job openings announced on the company intranet, then informtheir superior of their desire for a transfer. With the superior’s approval, the system will try to match theemployee with the desired division and, if successful, may make a transfer between Division Companies or
Headquarters administrative divisions. The aim of this system is to strengthen organizational capabilities
by motivating employees and supporting them to independently develop their careers with the provisionof career selection opportunities. 13 people transferred in FYE 2023 following on from 13 people in FYE
2021 and 16 people in FYE 2022. We will increase the number of opportunities to apply to join this system
to twice a year in FYE 2024. We will further promote support for our employees to independently develop
their careers.
■ Challenge Career System Process

Step 1

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

117

ESG Data(Society)

Virtual Office

Career Counseling

Employee requests
approval to apply
for a job opening
announced in-house

Governance

Respect and Consideration for Human Rights

Step 2

Applicantmeets withboss

Step 3

Application throughboss to Human
Resources & GeneralAﬀairs Div.

Step 4

Screening &interview

Step 5

Decision

Step 6

Transfer(usually Apr 1)

We introduced the Virtual Office in FYE 2024. The aim of the Virtual Office is to promote business by sharing
ideas and resources across organizations and to support the growth and career development of ouremployees. It is a mechanism which solicits cross-organizational projects company-wide. Employees
themselves can then use small blocks of spare time outside of their main work to engage in the projects inwhich they have a high level of interest and enthusiasm.
We conducted a trial of the Virtual Office with a total of five projects in FYE 2023. Employees withdifferent work locations, ages and duties gathered from across the company to work on the projects.
According to a questionnaire we conducted on the participants in the trial, 91% of employees said that theactivities of the Virtual Office led to their own growth and job satisfaction.
The aim of
Virtual Oﬃce

Promote cross-organizational projects and further accelerate the creation of new
businesses by having employees with a high level of interest and enthusiasm for projects
work together across organizations

Enhance young and mid-level
employees’ engagement

Being voluntarily involved in other projects allows employees to join desired
assignment, which is considered to grow and develop their careers

Sharing ideas and resources
across the company

In order to create new values, employees with a high level of interest provide
their ideas across the organization to eﬀectively utilize company-wide resources.

Promotion of Rotation

We have formulated rotation guidelines for young career-track employees. The aim is to assist the activities of
personnel in the next generation who will support management in the future. We have determined the training andtransfer policy for each organization under the premise that young career-track employees will have finished theirbasic education by their second year in the company and will have experience of an overseas deployment withineight years of joining the company as a general rule. In addition, organization managers explain this training policy
to young career-track employees and employees in clerical positions and then hold career meetings to exchange
opinions with them. With this, we have developed an environment in which it is possible for young employees totackle the work in front of them while looking to the future. We have also created a mechanism so that they canachieve diverse careers by reviewing their transfer requests and rotation results every year.

ITOCHU Internship

ITOCHU provides an internship to students which allows them to tackle various challenging issues basedon past business cases. We do this so that they can think about their careers in terms of working in a
general trading company. ITOCHU Website for students (ｈttps://career.itochu.co.jp/student/information/
seminar.html) (Japanese only)Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Occupational Safety and Health Management
Policy and Basic Concept

Occupational Safety and Health Management for our Employees

ITOCHU believes improving employee health is a cornerstone supporting the enhancement of its humanresource capabilities which will, in turn, enable the fulfillment of its Guideline of Conduct, “I Am One with
Infinite Missions.” Based on this concept, the Company has established the ITOCHU Health Charter.
Moreover, we have developed a robust health and safety management structure aimed at, for example,
helping employees who strive to balance cancer care and work. In addition, our industrial physicians
support our group companies such as by providing information on occupational health and safety. With
the health of each of our employees as our top priority, our entire group will strive to realize a workplace
aim to realize a working environment where our employees can work with peace of mind in the future.

ITOCHU Health Charter (Enacted in June 2016)

1. Taking Responsibility for Employee Health
ITOCHU will take responsibility for the good health of each employee by actively supporting
initiatives they take to maintain or improve their health.
2. Contributing to Society by Maintaining Good Health
ITOCHU will develop soundly over the long term based on an understanding that the good
health of its employees is the foundation of the happiness of the employees themselves aswell as their families, customers and wider society.

3. A Legacy for Future Generations
ITOCHU will carry out its infinite variety of missions as a company in which healthy employees
who are fulfilled both spiritually and physically unleash their individual strengths.

Going forward we will pioneer various initiatives that lead the way toward work-style reform and healthmanagement. And we will build an environment that allows employees to find meaning in their work.

Occupational Safety and Health Management along the Supply Chain

Beyond our employees, ITOCHU Corporation also implements comprehensive measures to ensure theoccupational safety and health of the stakeholders within our supply chain, including the companies weinvest in and contractors. In 2013, we established ITOCHU Corporation’s Sustainability Action Guidelines
for Supply Chains to communicate our expectations for partners along the supply chain. The Guidelines
covers key safety and health related issues such as “Management of working hours”, “Management ofhealth and safety”, and “Management of employee health”.

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

118

ESG Data(Society)We believe it is important to gain the understanding and cooperation of all of our suppliers andcontractors regarding our procurement-related policies. In keeping with this belief, in FYE 2014 wefollowed up on the Guidelines with approximately 4,000 suppliers with whom we have continuing
relationships, in order to raise awareness and understanding of our expectations. In January 2015, wehave made it a mandatory procedure to inform all new suppliers and contractors of the Guidelines. We
anticipate that these activities will lead to an enhanced understanding among our business partners
regarding our approach to sustainability.

Safety and Health Related Risk Assessments for Investment Projects

ITOCHU Corporation considers ESG (Environmental, Social, and Governance related) aspects to be crucial
in assessing potential risks for investment projects. In addition to financial risks and opportunities, ourdue diligence and risk assessment process for prospective investments therefore includes the use of acomprehensive ESG Checklist, which covers seven core subjects aligned with the ISO26000, as well as 33
sub-issues. One of the core subjects concerns Labor Practices, which includes sub-topics covering safety
and health-related issues, such as labor standards, occupational safety and health, and stakeholder
engagement to enhance health and safety practices. Our assessment of safety and health related risks forinvestment projects does not simply end at the initial investment. We conduct continuous management
assessments and ensure that we monitor companies in our portfolio, ultimately to contribute to as muchenhancement of business practices among investees as possible.
For more details, please refer to ESG Risk Assessment for New Business Investment Projects. (P152)

Combatting Global Health Issues

ITOCHU Corporation has operations worldwide, with about 800 employees stationed overseas. As such,global health issues including HIV/AIDS, tuberculosis, and malaria, which are widely recognized as three ofthe deadliest infectious diseases today, are a major concern to our business, and we have implemented
various initiatives in response.
With regards to our employees and their families, we conduct detailed preparatory seminars regarding
safety and medical practices prior to overseas dispatch, including information on said global health issues.
We also provide employees stationed abroad and their families with mandatory vaccinations aligned to
the recommendations published by local governments. Vaccinations are administered by our HealthAdministration Center or a nearby travel clinic. Once dispatched, our employees and their families haveaccess to specialized health care service companies that we partner with, which can provide information
on local hospitals, details on how to avoid infection, and emergency treatment of illnesses.
In terms of community involvement, we have strived to enhance partnerships that can maximize ourcontribution to combatting global health issues. Since 2017, we are supporting Friends of the Global Fund,Japan (FGFJ) (http://fgfj.jcie.or.jp/en/) through our membership in the Japan Center for International
Exchange (JCIE), which is responsible for the operation of FGFJ. We also work with Dole Philippines, one of
our subsidiaries, to combat global health issues including HIV/AIDS, tuberculosis, and malaria, in the local
communities. We will continue to expand initiatives in this area to fulfill our social responsibility as a
global company.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Occupational Safety and Health Management

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

119

ESG Data(Society)Targets and Action Plan

Based on our policies regarding the management of occupational safety and health, ITOCHU Corporation aims to achieve zero workplace accidents and death incidents involving employees and contract employees* in FYE 2024 as well,and will work toward the following underlying targets.
* Contract employees are those who work in offices managed by ITOCHU
Division
Company

Headquarters

Develop a
RewardingWork
Environment

SDGs
Targets

ImpactClassification

Labor Practices

Issues to Address

Improving the healthof employees

Business
Area

Commitment

Human
resources
affairs

We will improve the health of
employees to create an environmentthat will enable individual
employees to better demonstrate
their capabilities. We will build asystem that helps employees withcancer or long-term illness to createa balance between treatment andwork, thereby fostering a culture ofmutual support.

Reach the percentage of employees who receive regular medical
checkups in Japan to 100%.
Establish well-equipped in-house clinics and a system for supporting
each employee in receiving personalized medical care.
● Promote support system for balancing cancer care and work.
● Encourage support for smoking cessation treatment.
● Continue to provide special programs for employees at a high risk forlifestyle-related diseases.
● Conduct stress check every year.
●●

Metals & Minerals Company

Respect andConsiderHuman Rights
Ensure Stable
Procurement
and Supply

Mining ElectricPower•Mining•Oil
and Gas Fields

Sustainable minedevelopment thatpays continuous
careful attention to therisks in occupationalsafety and health andenvironmental risks,
and that contributes
to local communities’
well-being

We will promote sustainable
development of natural resources
by fully committing to EHS(environment, health,occupational safety) andharmonious coexistence with local
communities in areas which ourmines operate.
● We will improve local
infrastructure such as medical careand education.

* For more details about strengthening employee health, please refer to “Initiatives for Health Management.” (P123)

Percentage of employees who receive regular
medical checkups in Japan: 100%.
Percentage of employees who receive specifichealth guidance: 55%.
● Rate of employees found to have a high levelof stress in the stress check at 5% or lower.

●●

Ensure the thorough application of the EHS guidelines and employee
education.
Contribute to local communities through activities for improving
medical care, education and infrastructure.

Degree of Progress

Percentage of employees who receive regular medical
checkups in Japan: 91.7%.
Percentage of employees who receive specific health guidance:
47.0%.
● Rate of employees found to have a high level of stress in the
stress check at 5.0% in FYE 2023.

●

●

●

●

Implementation of annual internal seminars
to ensure our employees are fully aware of the
EHS guidelines.
● EHS seminar attendance rate: 100%.
● Rate of checks implemented on EHS
compliance in existing and operating projects
to be possessed in long term and new mining
business: 100%.
● Donations to medical care and education, andbuilding infrastructure in local communities.
● Carry out CSR activities in all existing andoperating projects to be possessed in longterm (100%).
●●

Miningbusiness

Performance Indicators(Non-Consolidated)

Specific Approach

We held internal EHS (environment, health and occupationalsafety) training courses for supervisors and company
employees belonging to sections engaged in resource
development. The attendance rate of those subject to thistraining was 100%.
● We checked the proper compliance to the EHS guideline by one
new project and seven existing projects in our mining business,
and also by one another resource-related project.
● We carried out activities that contribute to the local community
as part of each project we invest in.
●Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Occupational Safety and Health Management
Structures and Systems

ITOCHU Corporation considers employees to be assets. One of the company’s vital responsibilities is toensure health and safety in the workplace so that employees can reach their full potential. We have built arobust system led by the President & Chief Operating Officer, not just for incidents, accidents, disasters andother emergencies, but also health management. This ensures that both ITOCHU Corporation employees
working around the world and their families stay healthy and safe.
To implement our corporate mission of being “Sampo-yoshi,” ITOCHU Corporation also discusses thecontent of efforts and the implementation situation of occupational health and safety with the ITOCHU
Labor Union, which counts approximately 80% of employees as members. (see “Labor Union” (P107)). The
Labor Union also collects opinions and identifications relating to health and safety in the workplace from
employees. Including the content of those, recurrent, active discussion between labor and management
makes both cognizant of the challenges facing the company and keeps them on the same page. Thisbuilds a healthy relationship that enables them to consider and implement measures for improvement.
See here (P168) for the number employees who have undergone training on health and safety standards.
■ Overview of Itochu Corporation’s Occupational Health and Safety Management Organization

Board of Directors

Health Management Council (held once a month)

Chief Administrative Oﬃcer(Oﬃcer responsible for managing occupationalsafety and health)

Human Resources & General Aﬀairs Division(Division responsible for managing occupational safety and health)Companies/Headquarters/Overseas Blocs

Human Resources & General Aﬀairs Division(Division responsible for managing occupational safety and health)

Related Division Related Division Related Division

Industrial Physicians/Health Administration Department

Human Resources & General Aﬀairs Division(Division responsible for managing occupationalsafety and health)Occupational Health and Safety Oﬃcer

The Health Insurance Union

Industrial Physicians/Health Administration Department

Health Committee (held once a month)

ITOCHU Labor Union (Employee Representative)

We have a standard management and escalation procedure for all matters regarding occupational safety
and health, both domestic and abroad. For each of our Companies, Headquarters, and Overseas Blocs, wehave appointed an Occupational Health and Safety Officer, who is responsible for overseeing theexecution of relevant initiatives. These Officers also serve as contact points to which workplace incidents
and death incidents are reported to within their related divisions.
Officers are also expected to relay and escalate these reports to the head office’s Human Resourcesand General Affairs Division. This division identifies dangers in those reports and conducts surveys relating
to accidents. It determines and executes corrective measures if necessary.
The Human Resources and General Affairs Division meets with industrial physicians about importantmatters relating to health (e.g., the infectious disease situation and preventative measures) and risks inworking hours and working environments. The Health Committee then meets once a month to share
information between labor and management.
With regards to Health Management related initiatives and concerns, we hold a monthly HealthManagement Council to share progress and any concerns or risks regarding occupational health and safety.
Any critical issues identified in the Health Committee or the Health Management Council are escalated

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

120

ESG Data(Society)via the Human Resources and General Affairs Division to the Chief Administrative Officer (CAO), who holds
the highest level of responsibility regarding health and safety. The CAO is responsible for reporting highly
important issues to the Board of Directors and the Chairman & CEO. Matters that are not urgent arereported to the Board of Directors once a year, through the same reporting process.
In addition, we periodically report matters relating to health management and labor health and safety
to the Board of Directors. We improve our initiatives relating to occupational health and safety based on
instructions with respect to health management and occupational health and safety reports from theBoard of Directors and operational issues identified by the Health Committee.

Operation of Occupational Safety and Health Management based on the International
Guidelines and Standards
Operation based on the EHS Guidelines

The Metals & Minerals Company has established and is operating Environment, Health and Occupational
Safety (EHS) Guidelines for its metal and mineral, coal and uranium mining businesses. EHS guidelines
supports us to work on sustainable mining development leading to the stable supply of resources.
It is our obligation to avoid and reduce the EHS risks such as environmental pollution, health hazards
of workers and operational accidents caused by our business activities (e.g., exploration, development
and production). To that end, we have prepared EHS guidelines as technical reference documentssummarizing the EHS issues and recommendations for risk management. For throughout implementationof the guidelines, we also utilize checklists available in Japanese and English.
EHS Guidelines apply to new investments, as well as projects in which we are already participating. We
communicate intensively with our partners for consultation and improvement on resource developmentwith greater consideration for EHS aspect. In FYE 2023, we performed checks on seven existing projects
and one other resource-related project. We then set items requiring continuous follow-up.
We have prepared guidelines in line with global standards such as the International FinanceCorporation (IFC) and standardized processes with checklists. Meanwhile, we continuously review theprocesses so that we can operate the guidelines flexibly to suit the individual risks of each project.
Most of all, it is important that organization members have an in-depth awareness of the importanceof EHS compliance. Accordingly, we aim to thoroughly share information on this throughout ourorganization by conducting awareness activities using concrete case studies every year. We held internal
training courses for supervisors and company employees belonging to sections engaged in resource
development in FYE 2023. The attendance rate of those subject to this training was 100%.

100

Attendance Rate of EHS Training%

Subsidiaries that have ISO 45001 Certifications

Our Group companies also maintain occupational health and safety by establishing and operating
management systems in accordance with ISO 45001, the international standard for occupational healthand safety management systems. As of March 31, 2023, six (accounting for 1.3%) of our company’s
domestic and overseas consolidated subsidiaries had acquired ISO 45001 certification.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Occupational Safety and Health Management
Health Administration Center

The Health Administration Center serves as the clinic for our headquarters in Tokyo and employs a total of
20 medical specialists, as well as x-ray technicians and pharmacists. For more than 30 years public healthnurses have acted as “border-less medical concierges” who provide individual health guidancecustomized to the situation of every employee, both in Japan and overseas. This is based on close
cooperation with medical specialists for various lifestyle-related diseases. In this way, the center supports
ITOCHU Corporation health management through individual health management for each employee.
Specifically, in addition to the specialized disease management, the center provides general practice
medicine (internal medicine, orthopedic surgery, psychiatry and dentistry), checkups (regular medical
checkups, half-day complete checkups, cancer checkups and medical checkups for employees travelingoverseas or returning from abroad on a temporary or permanent basis), various vaccinations such as for
COVID-19, and examinations. It also offers medical counseling and provides information. We achieve a rateof regular medical checkups for employees in Japan of almost 100% every year.

Mental Health

Concerning mental health, we have set up a stress management room in the company and offer counseling bya clinical psychologist. Employees can also seek counseling from a company physician or see a psychiatrist
in-house. Our Health Insurance Union has set up a health consultation website called “Health & Mind Online”
that enables employees to seek consultations by phone or over the net. In addition, we have been conducting
stress checks once a year since 2015. The rate of those taking these checks has reached 98.2% (FYE 2023).

Safety Measures for Employees on Travel or Stationed Overseas

ITOCHU Corporation operates worldwide with roughly 800 employees stationed overseas. We also send as
many as ten thousand people a year on overseas business travel (data before the COVID-19 pandemic).
Therefore, we are also working to offer health management to overseas staff to establish an environment
where they can demonstrate their abilities with peace of mind even in unfamiliar situations. Since close
communication between overseas locations and Japan is vital to overseas security management, we havestationed overseas safety specialists at our headquarters. They regularly exchange information about
politics, economics, public safety and other factors with personnel and general affairs representatives
assigned to each of the seven blocs worldwide. They then disseminate appropriate measures internallyand to group companies. We have also been taking measures to ensure the safety of employees through ameticulous response since the spread of COVID-19. For example, we have been obtaining information on
the local medical environment – especially the local infection situation and the number of hospital beds
– and also the operating status of international flights. We have also established a system to cover regions
where information is more difficult to obtain through contracts with international security consultant
firms. In addition, we have been conducting overseas crisis response training in-house since FYE 2020. We
mainly provide this training to those who we plan to station in countries and regions with poor security
and employees who we expect to frequently send on business trips to such countries and regions.

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

121

ESG Data(Society)

Measures to Address Medical Issues and Prevent Infectious Diseases

Prior to being dispatched, all employees stationed abroad are required to undergo mandatory vaccinationin line with governmental recommendations for each international region/country. ITOCHU’s HealthAdministration Center provides employees with vaccination services – in case specific vaccinations are notavailable, we direct our employees to nearby clinics that specialize in vaccinations. All vaccination costs
are also covered by the company. We provide both the employees and their families with thoroughpreparatory seminars on health and safety matters regarding the countries they are assigned to. Global
health issues such as tuberculosis, malaria, and HIV/AIDS are especially crucial for certain countries.
Therefore, we ensure that the preparatory seminars cover these issues, and also provide follow-up
seminars following their return to Japan.
Once our employees and their families arrive in their assigned countries, we provide medical supportin various ways, such as partnering with a specialized health care service company (International SOS(https://www.internationalsos.com/), Emergency Assistance Japan (https://emergency.co.jp/english/)), toprovide information on any potential issues that may occur, information on how to address and manage
health emergencies, and support during emergencies, such as those that require emergency
transportation.
COVID-19 workplace vaccinations

We have been working hard on securing vaccines, doctors, nurses and volunteers, building a reservation
system, and operating it on a daily basis to be able to provide vaccinations in the workplace to protect thehealth of our employees during the worldwide COVID-19 pandemic in recent years. We are providing threevaccinations to all employees who desire them. Moreover, we have widely disclosed the manual for
workplace vaccinations we created in-house and our response to operational issues to serve as a useful
tool for regional communities and other companies.
● First and second vaccination: COVID-19 workplace vaccination public records(https://www.itochu.co.jp/en/about/covid_info/index.html)● Third vaccination: COVID-19 workplace vaccination information disclosure(https://www.itochu.co.jp/ja/about/covid_info/2022.html)● Fourth vaccination: COVID-19 workplace vaccination information disclosure(https://www.itochu.co.jp/ja/about/covid_info/202210.html)

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Occupational Safety and Health Management
Basic Health Management Support

Border-Less Medical Concierges: Employees and their families can reach out via e-mail or phone call tooccupational health nurses supported by specialized physicians, and receive advice on health-related
issues as necessary.
● Introduction of Local Medical Facilities: We are able to introduce reliable local medical facilities in the
countries we operate in, where employees can receive necessary medical services.
● Routine Health Checkups: In addition to pre-dispatch comprehensive medical examinations, we
provide employees and their families with annual health checkups. These checkups can either be
conducted upon short-term return to Japan, or in the countries where they are stationed in – including
surrounding countries.
● SECOM Furusato Care Service: We provide support for the elderly family members remaining in Japanof employees we have stationed overseas. Our support covers a medical care system run by SECOM,
which can be accessed year-round, at any time of day. The service allows for elderly family members toreceive phone-based health support from a specialized nurse center.
● Provision of a Fitness App: We provide an app for smartphones and tablets to allow employees andtheir family members stationed overseas all around the world to enjoy exercising while listing to audio
guides and popular music. Many cities have implemented restrictions on going out due to the spread of
COVID-19. Against this background, the provision of this app has led to solving the issues of a lack of
exercise and stress for those stationed overseas.
●

Health-Related Emergency Support●

International SOS, Emergency Assistance Japan: This is a service that we provide employees and theirfamilies to support them in addressing acute medical conditions. The service provides access to a
multi-language call-center where users can inquire about any local issues regarding safety, including
terrorism, social disturbances, and medical concerns. Additionally, if our employees or their family
members encounter any emergency such as injuries or acute medical conditions, they can accessInternational SOS to request relevant support, which includes arrangements for appropriate
transportation, accompanying doctors and nurses, as well as access to medical institutions that are
equipped to address the emergency.

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

122

ESG Data(Society)

Addressing Health and Disease Related Issues in Local Communities

ITOCHU Corporation engages in community investment in the Philippines to address global healthconcerns. This is conducted mainly through the Mahintana Foundation Inc. (MFI), an NGO that wasdeveloped by the Dolefil* SR Division of Dole Philippines, one of our subsidiaries. Along with MFI and local
municipalities, ITOCHU has engaged in comprehensive development initiatives for over 40 years, including
the creation of industries and labor markets, environmental conservation and reforestation, education,
provision for basic needs, enhancement of employee benefits, and health and safety. Specificallyregarding health and safety, global health concerns such as HIV/AIDS, tuberculosis, and malaria areparticularly crucial, and we have implemented the initiatives listed below to prevent outbreaks ofinfectious diseases among employees and the local community:* Dole Philippines’s Pineapple Division
Social Issues

Infectious
Diseases

Healthcare

Initiatives

Vaccinations, education and training for dengue fever prevention, disseminating insecticide-treatednets (ITNs), extermination of insects, and promotion of vitamin A consumption
Promotion of vitamin A consumption, provision for pregnancy support, dental services, andeducation and training on adolescent health issues

Regarding malaria, the positive impacts of these prevention initiatives are continuing to spread, with anincreasing number of surrounding regions reporting to be free of malaria infections.

Performance Data

Safety initiatives in Japan incorporate countermeasures against large-scale disasters like earthquakes.
These include creating a business continuity plan, preparing disaster supplies such as drinking water,
food, and toilets, conducting emergency drills, and training employees to use our safety confirmation
service. We encourage employees to prepare for large-scale disasters by making sure they have a way tocontact their families in the event of an emergency, keeping a pair of comfortable walking shoes at work,and being sure they know their way home on foot.
● Occupational Health and Safety Data (P167)
Performance Benchmarking Against Industry Average (Wholesalers and Retailers with Over 100
Employees) (P167)● Attendance in Training Related to Health and Safety Standards (P168)● FYE 2023 Number of Employees that Received Our Main Health and Safety-related Trainings (P168)●

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Occupational Safety and Health Management

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

123

ESG Data(Society)

Initiatives for Health Management

The Strategy Map for HealthManagement

Reforming Employees’ Awareness

Activities with the Sleep
Innovation Platform

Quit smoking assistance program
Expansion of cancer screening for women(cervical cancer screening foryoung female employees)

Health checkup
structure excess
statutory● Financial
support● Developmentof ﬂexible
working andleave system todeal with illness

Partnership with the National
Cancer Center Japan
Following-up for healthcheckup consultation result

Life security while absent or taking
leave and providing scholarships
for the bereaved children
Special leave for cancer anddesignated intractable diseases
Stress checks
Counselling by clinical psychologists
Alignment with International SOS

Improvement in sleeping and drinking habits
Increase in the speciﬁc healthguidance consultation rate

Increase in the number of usersof quit smoking program

Improvement in percentage oftaking the cancer screening consultationand health checkup consultation

Exclusive focus on treatment

Reduction in long working hours

Decrease in the number of employeeswith metabolic syndrome and the numberof employees at risk of that

Decrease in the number of employees
requiring speciﬁc health guidance andemployees restricted from traveling overseas
Reduction in the smoking rate

Early discovery and treatmentof female-speciﬁc diseases

Balancing treatment and work,
alleviate anxiety for the future

Increase in the number of
employees taking stress checks anda decrease in the number ofpeople with high levels of stressEstablishment of emergency
medical structure

Decrease in the number of people taking absences and leave,and reduction in the job turnover rate

Speciﬁc health guidanceLess employees working after 8 p.m.
and more employees working before 8 a.m.

Alleviate anxiety for receiving
medical treatment overseas
Reduction in
medical expenses

Improvement in Employee HealthMorning-focused work and 110 movement(no parties/meetings with alcoholic
beverage after 10 p.m.)

Improvement in Awareness of
Employees toward Health Management

Reduction in presenteeism (working while sick) and absenteeism

Lifestyle
improvement
support (diet,exercise andsleep, etc.)
Establishment of in-house clinics

Individual support and tailored assistance transcends regional boundaries fromindustrial physicians and public health nurses (for all employees)

ITOCHU recognizes that employees, ourirreplaceable management resource, arediverse in terms of their race, gender,
religion, nationality and age. We promotehealth management focused on thefollowing initiatives so that each of ouremployees achieves their infinite missions
and so that we realize a permanent
improvement in our corporate value.

Health-related Seminars and Eventsof Participants

Improvement in Labor Productivity and Corporate value

Employees

Improvement in Employee Motivation and Willingness to Contribute

We established the ITOCHU Health Charter in FYE 2017.The charter states that each employee is responsible for maintaining and improving their health, that ITOCHU will actively support their efforts to do so, and that the good health of ouremployee is the foundation of their happiness as well as their families, customers and society more broadly. ITOCHU has set up Health Administration Centers at its Tokyo and Osaka Headquarters and is distinguished by the “concierge”
assistance it extends to individual employees with the involvement of industrial physicians and health nurses in a way that transcends regional boundaries. We are aiming to raise the health awareness of each employee with the ITOCHU
Health Navi (Health Management System) we introduced in February 2021. This system allows all employees to view health checkup results via a PC or smartphone and permits centralized management of lifestyle data, such as the numberof steps walked in a day, weight, blood pressure. In addition, we created the Strategy Map for Health Management in ITOCHU in August 2021. This map visualizes the positions and effects of various measures. These steady initiatives havebeen recognized. We received the Minister of Health, Labour and Welfare Prize during the Award for Companies Promoting Cancer Control in the Action Plan for Promotion of Cancer Control sponsored by the Ministry of Health, Labour andWelfare in February 2018. We have also been highly praised such as by being selected as a Health & Productivity Management Outstanding Organization (White 500) every year since FYE 2017 when we started applying to the program.
The relevant laws and ordinances (e.g., theManagement
Health Investment Eﬀects
Issues to be
Industrial Safety and Health Act and Health
Solved with
Health Investment
Indicators for the Status of HealthIndicators for a Change in the AwarenessFinal Health-related
HealthPromotion Act) form the basic premise of all our
Investment Measure Initiatives
and Behavior of Employees
Target Indicators
Management
initiatives. We comply with laws and ordinances
Guidance in Pre-overseas– from the implementation of regular health
Assignment Training from Industrial
Promotion of Understanding by Organizational
Physicians and Overseas Visiting
Managers and On-site Support Enhancement
checkups and stress checks to the protection of
Enlightenment Programsfor Organizational
Increase in the Number
personal information.
Organizational
ManagerTraining
Managers andTop Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Occupational Safety and Health Management
We have been working from the three perspectives of prevention, treatment and coexistence as support
for balancing cancer care and work since FYE 2018. The aim of this is to build workplaces where employees
can truly feel at home even if they have cancer and where they can continue to work with peace of mind.
Furthermore, in addition to conducting periodic special cancer examinations in partnership with the
National Cancer Center, we also provide scholarships along with employment at ITOCHU groupcompanies to bereaved families of employees who had such diseases. These initiatives are leading to an
improvement in the sense of security felt by our employees.
■ ITOCHU Corporation Support System for Balancing Work and Cancer Treatment

Cooperateas Needed

Industrial Physician

Immediate Supervisor

Employee with Cancer■ Overview of “Support Measures for Balancing Cancer Care and Work”

Prevention(early detection through special checkups, contribution to research)・Fostering awareness of preventing lifestyle diseases
・Subsidies for smoking cessation treatment costs
・Checkups for various cancers through regular health screenings

・Construction of Support System for Balancing Cancer
Care and Work・Establishment of coordinator (consultation desk)
・Creation of a guidebook and education of organization heads

・Reﬂection in Evaluation Indicators of the Balancing ofCancer Care and Work・Reduction of anxiety about the future・Fund for education of children up to graduate school graduation
・Support for bereaved spouses via the provision of
employment opportunities at the ITOCHU Group

Independent Assurance ReportSocial Contribution Activities

124

ESG Data(Society)Due to our consolidated management, our initiatives with regards to occupational health and safety, andsafety management, cover not only our employees (including contract employees) but also those of ourgroup companies.
Specifically, Group companies also conduct things like stress checks, safety initiatives in Japan,
information on safety measures overseas, collaboration with overseas security and medical service
companies, and seminars prior to overseas assignments. Group companies are increasingly adopting amorning-focused work style, and the group overall is striving to reduce the total number of working hours
and promote employee health. In addition, we are working to strengthen the labor management of theoverall ITOCHU Group by regularly conducting workshops that hone the knowledge and expertise of ourpersonnel, and assessments of labor and human resources.

Details of Personnel and Labor Support Provided to Group Companies in FYE 2023

Labor Consultant

Department Human Resources
Oﬃcer and Work-treatment
Balance Coordinator

・Alliance with the National Cancer Center ResearchInstitute

Evaluation by Society

Sustainability in the Value Chain

Application to Group Companies

Support for Balancing Cancer Care and Work

Outside Primary
PhysicianSDGs Bond (Sustainability Bond)

Responsibilities to Customers

Treatment

・Alliance with the National Cancer Center Research Institute(immediate collaboration with medical specialists and accessto leading-edge treatments)

・Providing Full Company Assistance for Expense forAdvanced Cancer Treatment (Not Covered by Insurance)

・Assignment of medical specialists to health management oﬃces

・Development of Flexible Work and Leave Programs
・Shortened work hours, selection of work days, working
from home・Special leave: 18 days per 3-year period
・Payment of Illness Allowance during Leave of Absence

1. Labor management case study workshops

These workshops focus on case studies that highlight possible labor management cases including
mental health problems and working hours management. Participants gain specialized knowledge andlearn how to handle these types of problems. In FYE 2023, we held seminars on topics of high interest
such as side jobs in addition to these workshops. There were approximately 100 participants (July to
December).
2. ITOCHU Group Human Resources and General Affairs Liaison Council
This council aims to allow those in charge of human resources and general affairs from our Group
companies to exchange information and strengthen relationships. Activities include discussing thelatest trends in human resources and general affairs, sharing information about ITOCHU Corporation
measures and support situation, and updating one another about the content of revisions to laws. In
FYE 2023, the council met on the theme of mental health measures. Industrial physicians and lawyers
explained about practical measures from their respective viewpoints. There were 195 participants.
3. Human resources and labor management assessments
These are health assessments aimed at checking whether rules, systems, and management related tooverall personnel and labor affairs are operated in an appropriate manner. These include labor
contracts, internal rules, occupational health and safety, and time management. We have conductedassessments of 64 companies since starting this initiative in FYE 2017.
4. ITOCHU Group Human Resources and Labor Management Portal Site
We provide a portal site to share the regulations and expertise of ITOCHU with group companies. The
aim of this site is to strengthen the human resources and labor management in group companies.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Occupational Safety and Health Management
External Appraisal/Assessment

ITOCHU received the Minister of Health, Labour and Welfare Prize during the 2017 Award for Companies
Promoting Cancer Control in the Action Plan for Promotion of Cancer Control, which is sponsored by the
Ministry of Health, Labour and Welfare. The award was granted in recognition of our Support Measures for
Balancing Cancer Care and Work, which began in FYE 2018. We were selected as a Company with
Outstanding Cancer Control Promotion in the initial year in the Companies with Outstanding Cancer
Control Promotion Recognition Program that was newly established in FYE 2021. We also won an award
of excellence, during the Tokyo Metropolitan Government awards commending companies that
implement excellent initiatives to help cancer patients balance cancer treatment and work.
Moreover, our Balancing Cancer Care and Work Support System was acknowledged in FYE 2019. We
received the Award of Excellence in the Corporate Human Resources category at the Nihon no Jinjibu HRAwards 2018. The Nihon no Jinjibu HR Awards are awards that honor innovators in fields such as humanresources, personnel development and labor management. We also received the Gold Award at the 1st
gan-ally-bu Awards. The gan-ally-bu Awards are awards aiming for workplaces and a society where it ispossible to work actively while receiving cancer care.
In FYE 2016, ITOCHU Corporation was selected as a Health and Productivity Stock for two years in arow in 2016 and 2017 in the Health & Productivity Management Outstanding Organization Recognition
Program that is chosen by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange. In
addition to honors such as those, we have been selected as a Health & Productivity Management
Outstanding Organization (White 500) for seven years in a row up until FYE 2023 since FYE 2017 when
we started applying to the program.
We succeeded in these areas thanks to positioning work-style reforms and Health and Productivity
Management as important management strategies. We introduced a morning-focused working systemahead of other companies, and cooperated with industrial physicians and the Health Insurance Union topromoted aggressive measures for improving health throughout company.
For more details, please refer to Evaluation by Society (Occupational Safety and Health Management)(P206).

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

125

ESG Data(Society)Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

126

ESG Data(Society)

Policy and Basic Concept

Respect and consideration for human rights is an important issue for ITOCHU as we deploy our business activities in various regions around the world. ITOCHU also asks all our stakeholders to approve, understand and put into practice
the human rights policy of ITOCHU in addition to education for employees to respond to this important issue.

The ITOCHU Group Human Rights Policy

The ITOCHU Group has adopted the ITOCHU Group
Human Rights Policy” (hereinafter the Policy”), drafted
based on our Corporate Mission, Guideline of Conduct,
Code of Ethical Conduct, and The ITOCHU Group
Sustainability Policy. This Policy iterates our commitment
to respect the human rights of our stakeholders andaddress negative impacts that may arise from ourbusiness activities.

The ITOCHU Group will comply with the laws and regulations in
the respective countries and regions where we perform ourbusiness activities in addition to Japan. If there is a contradiction
between internationally recognized human rights and the laws
and ordinances of a country or region, we will pursue a method
to maximize respect for international human rights principles.

4. Management Approach

1. Policy Scope and Our Expectations Toward Business
Partners

The ITOCHU Group will build structures to realize this Policy. The
Sustainability Officer will bear the responsibility to oversee thecompliance and implementation situation of this Policy.

2. Endorsement of International Agreement

Based on the United Nations Guiding Principles on Business andHuman Rights, the ITOCHU Group will implement human rights
due diligence in order to identify, prevent and mitigate negative
impacts on human rights and fulfill our commitment toaccountability.

This Policy applies to all worldwide executives and employees of
the ITOCHU Group, including contractors and temporary
employees. The ITOCHU Group also expects business partners
and other relevant stakeholders to comply with this Policy.

The ITOCHU Group supports international agreements on humanrights, including the Universal Declaration of Human Rights, theInternational Labour Organization’s Declaration on Fundamental
Principles and Rights at Work, and the United Nations Global
Compact, which we have been a signatory to since 2009. We will
also implement measures aligning to the United Nations Guiding
Principles on Business and Human Rights.

●

3. Legal Compliance and Respect for Internationally
Recognized Human Rights

Code of Ethical Conduct (https://www.itochu.co.jp/en/about/ethical_conduct/index.html)

5. Human Rights Due Diligence

6. Remedy and Rectification

If the business activities of the ITOCHU Group induce a negative
impact on human rights or if involvement in such becomes clear,
we will strive to remedy and rectify that through appropriate
procedures and dialogue.

7. Dialogue and Consultations

The ITOCHU Group will leverage external human rights expertisein its implementation of human rights due diligence and will
engage in dialogues and consultations with our stakeholders –especially those potentially subject to adverse impacts from ourbusiness activities.

8. Education and Awareness

The ITOCHU Group will provide appropriate education to all
executives and employees (including contractors and temporary
employees) and strive to raise human rights awareness in order
to incorporate and implement this Policy in our businessactivities.

9. Communication on this Policy and Our Relevant
Initiatives

This Policy will be approved by senior executive in charge ofsustainability and be reported to our Board of Directors and wewill widely publish it to the public. We will also report on ourhuman rights initiatives based on this Policy on the ITOCHU
website and in our ESG Report.
Fumihiko Kobayashi
Member of the Board
Executive Vice President
Chief Administrative Officer

Established in April 2019
Revised in April 2020

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Respect and Consideration for Human Rights
Individual Policy

Response to Modern Slavery and Human Trafficking

ITOCHU is committed to initiatives to ensure that there is no modern slavery or human trafficking in our
supply chain and business activities. We are participating in the United Nations Global Compact. Together
with this, we are reflecting the concept of the United Nations Guiding Principles on Business and Human
Rights in our business activities. Our existing principles contain initiatives to ensure that modern slavery
and human trafficking do not occur in our sales activities and supply chain across the world.
●

Status of Initiatives at ITOCHU Europe PLC. (Slavery and Human Trafficking Statement)(https://www.itochu.com/uk/en/sustainability/society/#ModernSlavery)

Consideration for Foreigners

If foreign workers, interns and trainees are accepted in our supply chain, we pay full attention so that wecomply with the labor related laws and ordinances in the country concerned and so that we do notcommit acts contrary to the purpose of that acceptance system. We do this from the point of view ofrespect for human rights and relief because such people are liable to become the target of illegal acts dueto their low social and economic status.

Respect for the Rights of Children

ITOCHU supports the United Nations Convention on the Rights of the Child and Children’s Rights andBusiness Principles. We respect the four pillars of the United Nations Convention on the Rights of the Child- a child’s right to life, development, protection and participation.
ITOCHU has adopted the development of the future generation as one of the ITOCHU Group Basic
Activity Guidelines on Social Contribution. We perform activities to support the healthy development of
the young people who will be responsible for the future generation.
●

Growth of Future Generations (https://www.itochu.co.jp/en/csr/social/future/index.html)

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

127

ESG Data(Society)

Security Company Appointment Concept

The United Nations adopted the Code of Conduct for Law Enforcement Officials in December 1979. Thisaims to ensure that member states thoroughly implement and promote the appropriate roles of law
enforcement officials (e.g., the police and military authorities) and respect and protect the dignity ofhumans while carrying out their duties. ITOCHU supports the Basic Principles on the Use of Force andFirearms by Law Enforcement Officials in which the United Nations has established the principles on theuse of firearms by law enforcement officials under that code of conduct. We select security companies
according to the content of that.

Respect for the Rights of Indigenous People

We recognize that indigenous people have their own culture and history when we conduct businessactivities in regions where indigenous people live as part of our commitment to respect human rights. We
respect and take into consideration the rights of indigenous people established in the laws of thecountries and regions where we perform our business activities and international agreements (e.g., theDeclaration on the Rights of Indigenous Peoples and the International Labour Organization (ILO)
Convention 169). When examining new business investment projects, we also strictly enforce prior checks
concerning the impact on the rights of indigenous people by that business.

Job Creation and Employment Concept

The ITOCHU Group works to make local contributions by local hiring during the diverse business activities
we engage in around the world. We strive for coexistence with the local regions in which we operate and tocontribute to the development of international society. We comply with the statutory minimum wage andstrive to pay at least a living wage when we hire local employees. Doing so leads to human resource
development in the region and helps stimulate local economies. Moreover, we believe this contributes tosustainable development. When an ITOCHU Group company in Japan or overseas engages in businessactivities in a particular region, as the parent company, ITOCHU supports to formation of a management
structure for ensuring that the company complies with relevant laws and provides an optimal labor
environment for its employees. (Group companies report to division companies based on their operating
domain and the division company provides direct support.) The ITOCHU Group is comprised of some 300
companies in Japan and overseas, and works to balance business and regional development by hiring andtraining local staff.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

128

ESG Data(Society)Targets and Action Plan
Risks
●
●

Opportunities

Business delay or business continuity risk resulting from the occurrence of a human rights problem in business activities that expands (geographically).
Decline in credibility that may result from defects in the social infrastructure services we provide.
Materiality

Textile Company

SDGs Targets

Respect andConsiderHuman Rights● Ensure Stable
Procurement
and Supply

ImpactClassification

Issues to Address

Business
Area

Commitment

Specific Approach

Supply Chain

Establishing a supply
chain reflecting
consideration forhuman rights and theenvironment

Textileproducts
in general

We will promote dealings withcompanies which respect human rights
and which engage in environmental
management throughout their entire
supply chains.

Supply Chain

Establishing a supply
chain reflecting
consideration forhuman rights and theenvironment

Overallelectric
power
and plant
projects

We will contribute to improving thequality of life of all stakeholders in the
supply chain and business investment
destinations.

Mining● ElectricPower・
Mining・
Oil and Gas
FieldsSustainable minedevelopment thatpays continuous
careful attention to therisks in occupationalsafety and health andenvironmental risks,
and that contributes
to local communities’
well-being●

Machinery Company
Respect andConsiderHuman Rights
Metals & Minerals Company
Respect andConsiderHuman Rights● Ensure Stable
Procurement
and Supply●●

Food Company

We will promote sustainable
development of natural resources byfully committing to EHS (environment,
health, occupational safety) andharmonious coexistence with local
communities in areas which ourmines operate.
● We will improve local infrastructuresuch as medical care and education.

Performance Indicators

Degree of Progress

Strive to understand at an early stage thehuman rights, social and environmental risks insupply chains by continually conducting
surveys on major suppliers.

Conduct on-site visit surveys and questionnaires at more than
50 major suppliers a year on an ongoing basis.

Textile Company conducted human rights due diligence in FYE
2023. We screened domestic and overseas suppliers for all
businesses, obtained questionnaire responses from 105
companies, and conducted on-site surveys at 4 companies. As aresult, it was confirmed that there were no specific mattersrelated to human rights issues. In the next fiscal year’s suppliersurvey, we will continue to monitor the companies which do not
yet have established internal manuals or regulations.

Set rules on due diligence related to social andbusiness environmental safety for suppliers andbusiness investment destinations based on the
distinctive characteristics of each business,
implement due diligence, and strengthen
monitoring continuously.

Implement the due diligence described on the left in all new
development projects.

We continue operations to check the core subjects in theguidelines on social responsibility using the company-wide ESG
checklist in all development projects where we are investing for the
first time. We conduct due diligence on individual development
projects to check their social and environmental safety based on
the unique characteristics of each business prior to investment.

Miningbusiness●

Respect andConsiderHuman Rights● Ensure Stable
Procurement
and Supply●

Supply Chain●●

ForestStableSupply of
Resources

Establishing a supply
chain reflecting
consideration forhuman rights and theenvironment

Establishing a supply
chain reflecting
consideration forhuman rights and theenvironment

Provisions
field

Fresh
food field

We will develop a procurement
structure compliant with third-party
body certification and supplier-specificcodes of conduct.

We will contribute to increased
employment and an improved living
environment by fostering local
industries.

Implementation of annual internal seminars to ensure our
employees are fully aware of the EHS guidelines.
EHS seminar attendance rate: 100%.
Rate of checks implemented on EHS compliance in existingand operating projects to be possessed in long term andnew mining business: 100%.
● Donations to medical care and education, and building
infrastructure in local communities.
Carry out CSR activities in all existing and operating projects
to be possessed in long term (100%).
●

●

●
●

●

Respect andConsiderHuman Rights● Ensure Stable
Procurement
and Supply

Stabilization of business or securing of excellent human resources resulting from harmonious coexistence with local communities.
● Establishment of safe, stable supply system for product enabled by the consideration of human rights and improvement of work environment in the supply
chain.
●

Ensure the thorough application of the EHS
guidelines and employee education.
Contribute to local communities throughactivities for improving medical care,education and infrastructure.

We will promote procurement compliant

with supplier-specific codes of conduct incoffee bean and cacao 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 apromotion and distribution system in Japanfor MSPO/ISPO in cooperation with domestic
industrial associations. The aim of this is toencourage the use of certified oil systems inproducing countries.
We will diversify producing areas to disperse
weather risks in our Dole business. In addition,
we will develop new producing areas to expand
employment and improve the living
environment through the growth of local
industries.

●
●

●

●

Coffee beans: Promotion of procurement of products

compliant with supplier-specific codes of conduct or certified
products based on our procurement policy.
● Cacao beans: Promotion of procurement of products
compliant with supplier-specific codes of conduct (sustainableproducts) based on our procurement policy.
● Palm oil: Procurement of palm oil based on our procurement
policy. Promotion of the disclosure of the set KPI indicatorsand supplier information.

2030●

Coffee beans: Aim for a 50% switch to sustainable coffee

beans.
Cacao beans: Aim for a 100% switch to sustainable coffee
beans.
● Aim for a 100% switch to sustainable palm oil.
●●●

Cultivate pineapples in Sierra Leone to develop a producing
area followed by the development program in the Philippines.
Start the commercial production and export of pineapple
processed foods in Sierra Leone.

We held internal EHS (environment, health and occupationalsafety) training courses for supervisors and company
employees belonging to sections engaged in resource
development. The attendance rate of those subject to thistraining was 100%.
● We checked the proper compliance to the EHS guideline by one
new project and seven existing projects in our mining business,
and also by one another resource-related project.
● We carried out activities that contribute to the local community
as part of each project we invest in.
●●

Coffee beans: Regarding FYE 2023, our quantitative target 15%

or more was achieved with the result of 28%, and its target for
FYE 2024 should be 20% or above. In addition, from June 2022,
we partially started disclosing BtoB level digital traceability
information to our customers by using Farmer Connect (Coffee
traceability platform).
● Cacao beans (traceable products): achieved 66% (5,975MT of
traceable beans out of 9,025MT total.)● Palm oil: Check supplier’s sustainable palm oil sourcing policies
through regular surveys, and continue purchasing based on our
procurement policies. At the same time, we continue topublicize the ratio of RSPO certified Palm Oils and Traceable To
Mill etc.
● Ratio of RSPO Certified Palm Products/Oleo chemicals
Palm Oils 24%
Oleo Chemical Products 65%
●
●

●
●

Employment: about 1,800 as of 2023 March.
2022 Pineapple Production Estimate: 12,000tons.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Respect and Consideration for Human Rights
Structures and Systems

The ITOCHU Group is fulfilling our responsibility torespect human rights based on The ITOCHU Group
Human Rights Policy established in April 2019.
Specifically, we continuously identify and assesses
the negative impact from the corporate activities of
the ITOCHU Group on human rights that may affectsociety. We then work to prevent and mitigate suchimpact by taking the appropriate steps. Therefore,
following the procedures detailed in the UN Guiding
Principles on Business and Human Rights, weestablish a human rights due diligence mechanism
to assess a wide range of human rights issues,
including four core labor standards (Forced labor,
Child labor, Discrimination, Freedom of Association
and Collective Bargaining) set out in “The ILO
Declaration on Fundamental Principles and Rights
at Work.” In addition, we disclose information on the
progress and results of our action.
Impact and Assessment on Human Rights

Social Contribution Activities

129

ESG Data(Society)Child Labor, Forced Labor, Health and Safety, Freedom of Association and Right to Collective Bargaining,
Discrimination, Disciplinary Practices, Working Hours, Remuneration■ Implementation Process:●●Country Risk Mapping: Assessment on identified issues in the countries of the Suppliers’ location
Business Area Risk Mapping: Study on human rights items to consider, including identified issues
Issues

Structure for Promoting Human Rights: Sustainability Promotion Structure Chart (P15)

Human Rights Due Diligence

Independent Assurance Report■ Identified Issues

ITOCHU promotes the formulation and implementation of action plans with respect and consideration forhuman rights serving as one of our key issues. Under the sustainability promotion structure, the person
responsible for this issue is the Sustainability Officer while the Sustainability Management Division serves as
the secretariat to constantly prevent negative impact on human rights in collaboration with the persons
responsible for ESG in each division. The secretariat establishes this system and performs a review every year
together with the ESG officers in each division. This content is deliberated on and reported to the
Sustainability Committee. Important matters are also discussed and reported to the Board of Directors.
●

Evaluation by Society

Sustainability in the Value Chain

TextileMachinery

Metals &Minerals

Energy &Chemicals

Food

Child Labor

ICT &FinancialBusiness

The 8thForced Labor■ Human Rights Due Diligence Procedure

Health and Safety

Comprehensive Human Risk Assessment of Business
Various Material Research, Surveys, and Interviews with
Sales Departments

Freedom of Association andRight to Collective Bargaining
Discrimination

Conduct Questionnaire Survey of Suppliers(including Indirect Suppliers) in the Priority Survey Target
Business and Target Countries Basedon the Results of Risk Analysis

Disciplinary Practices
Working Hours
Remuneration

Implement Supplier Engagements

Migrant Workers
Human Trafficking

Identify Human Rights Issues, Discuss Future Policies,
and Request Remediation

Indigenous Human Rights

Impact on Local Communities
and Residents

Check and Follow the Progress

Targeting business areas in our company, we identified salient human rights issues on which we should
focus our efforts to prevent any negative impact by referring to international guidelines and indicators,
such as SA 8000, with the cooperation of the external professional organization, and conducted several
risk mapping.

GeneralProducts &RealtyLand Acquisition andResettlement●

Merchandise Risk Mapping: Survey of merchandise risk levels by country

The following merchandise should be handled with particular consideration.
Selected Merchandise: cotton, clothing, palm oil, coffee, tuna, natural rubber, wood products
In our company, we continuously take into account country, business area and merchandise risk, andpromote responsible procurement in consideration of human rights.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Respect and Consideration for Human Rights
Implementation Status

We have started conducting human rights due diligence for each business sector based on the impact on
and assessment of human rights as described above, starting with the Food Company in FYE 2021. We
have confirmed that there were no significant negative impacts in the business fields in which we havecarried out assessments in the past. In the next few years, we plan to implement human rights due
diligence sequentially in all business sectors.
●●●

Progress of Human Rights Due Diligence FYE 2023

(https://www.itochu.co.jp/en/csr/pdf/due_diligence_en_2022.pdf) PDF

Progress of Human Rights Due Diligence FYE 2022

(https://www.itochu.co.jp/en/csr/pdf/human_rights_due_diligence_en_2021.pdf) PDF

Progress of Human Rights Due Diligence FYE 2021

(https://www.itochu.co.jp/en/csr/pdf/human_rights_due_diligence_en_2020.pdf) PDF

At the same time, in order to mitigate human rights and labor risks in the supply chain, we continuously
conduct supply chain sustainability surveys to major business partners in all business areas every year.
●

Supply Chain Sustainability Survey Initiative (P148)

New Business Investment Projects

For more details, please refer to “ESG Risk Assessment for New Business Investment Projects” (P152).
Existing Business

When entering into business with new suppliers, ITOCHU informs all applicable suppliers in advance of the
Sustainability Action Guidelines for Supply Chains. If a matter in violation of the purpose of this policy is
confirmed, we seek corrective measures from that supplier. At the same time, if it is judged that correction
is difficult even though we have made continuous requests for correction, we deal with this under a stanceof reviewing our business with that supplier.
We also perform due diligence with the seven core subjects of ISO26000 serving as the mandatory
survey items (including modern slavery and human trafficking) when making new investments with major
suppliers. We conduct additional due diligence with external specialist organizations for investment
projects requiring a professional point of view.

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

130

ESG Data(Society)Supply Chain Management

For more details, please refer to Sustainability in the Value Chain (P148) and Response to Suppliers in
Violation of this Policy (P151).

Risk Assessments

We conduct risk assessment on human rights including modern slavery and human trafficking. We do thisthrough group company fact-finding surveys in which we visit sites together with external experts asappropriate. This is in addition to our supplier surveys in due diligence. We have also established policies
and responses for procurement by product in regards to products with a significant impact on society andthe global environment. This is an attempt to reduce the risks in our supply chain.

●

Human Rights Audits in the Poultry Industry in Thailand (P150)

Grievance Mechanism

The ITOCHU Group has multiple points of contact for receiving concerns and complaints fromstakeholders. In case that we are found to be involved in a negative impact on human rights, we takeappropriate measures to remedy the situation.
Consultation Desk for Supply Chains

ITOCHU is a regular member of the Japan Center for Engagement and Remedy on Business and Human
Rights (JaCER), which provides the “Engagement and Remedy Platform” in accordance with the United
Nations Guiding Principles on Business and Human Rights. This platform allows any stakeholder in the
supply chain to report violations or suspected violations of international and national codes of conduct.
By accepting grievances through third-party channels, we strive to ensure fairness and transparency,
promote dialogue and redress more than ever, and remedy identified affected parties. When receiving
reports, we ensure the anonymity of the person making the report and the confidentiality of the report.
●

JaCER Grievance Platform (https://jacer-bhr.org/en/application/index.html)

Periodic updates of information in response to the report through JaCER, including the nature of thereport and its status, will be disclosed on the website of JaCER while ensuring the anonymity ofwhistleblowers.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Respect and Consideration for Human Rights
Consultation Desk for Employees

We have established an employee consultation desk called 7830 (Nayami Zero) to respond to worries andconsultations from each individual employee. We have also posted the HR Help Guide Book on the
Intranet and have widely informed employees about the consultation desk. This means we haveestablished a structure in which it is possible for employees to consult with us.

Evaluation by Society

Consultation Desk for the General Public (including Stakeholders)

At ITOCHU Corporation, we make use of opinions and suggestions from customers to improve customer satisfaction,
facilitate stakeholder understanding, prevent risks, and other purposes, thereby helping to improve our corporate value.

Customer
Website(Inquiry form available on our website)

Corporate
Communications
Division

HotlineIn addition to a direct hotline to those responsible for compliance in each division, we have alsoestablished multiple whistleblowing contacts both in Japan and overseas (including external
whistleblowing contacts that utilize specialized company and external lawyers). We accept reports from
employees who have an employment relationship with ITOCHU, those who have been dispatched to
ITOCHU under a worker dispatch contract from a company that has entered into that contract with
ITOCHU (temporary employees), and employees of group companies. It prohibits the unfavorable
treatment (e.g., retaliation) of whistleblowers and allows whistleblowers to provide information
anonymously.
■ Flow When Received a Report by the Japanese External Report Reception Desk (Integrex Inc.)⑧ Notify the completion of remedial measures⑨ Conﬁrm of non-retaliation and non-disadvantage⑤ Request for cooperation in question
and investigation⑥ Liaise the comment from reporter⑦ Inform how the report was handled⑧ Notify the completion of remedial measures⑨ Conﬁrm of non-retaliation and non-disadvantage

ITOCHU Contacts(Compliance Oﬃcer)⑦ Inform how the report was handled

Integrex Itochu Hotline
dedicated counter

Reporter⑥ Liaise with the questioner from ITOCHU④ Report on the content(anonymization)

Division Companies

Human Resources & General Aﬀairs Division
Investor Relations Division
Compliance Department●

Inquiries (https://www.itochu.co.jp/en/inquiry/index.html)

Other related divisions, departments, etc.

Initiatives

Implementation of Fair Recruitment

Human resources are the greatest management resources for ITOCHU – a company deploying a variety ofbusinesses globally. ITOCHU conducts activities to recruit those newly graduating from universities andgraduate schools every year.

① contact by Email⑤ Request for cooperation in question
and investigation

131

ESG Data(Society)

ITOCHU Corporation applied for recognition under the Whistleblowing Compliance Management System(Phase 1: self-declaration of conformity), which was newly introduced by the Consumer Affairs Agency ofJapan. Our conformity with certification standards was confirmed and our registration was accepted as ofApril 10, 2019 (first to be registered in this system in Japan).

Career Counseling Center
ITOCHU established Career Counseling Center ahead of other companies. This center accepts workplaceculture, human relations, treatment and harassment related consultations in addition to consultations on
individuals’ careers by telephone, fax and e-mail. Full-time career counselors with national qualifications
as career consultants deal with these consultations.

③ Conﬁrm(anonymous reporting acceptable)

Social Contribution Activities

ITOCHU Corporation has established a system to accept opinions, proposals, and grievances and to accept
inquiries from the general public and all our stakeholders, as described below.

HR Help Guide Book on the Intranet② Request to conﬁrm the contents and the requests

Independent Assurance Report

Sustainability in the Value Chain●

Relevant data: Number of Hires by Gender and Adoption Rate for Mid-Career (P166)

We also offer internships (work experience workshop) every year separate to our recruitment
activities. The aim of these internships is to provide support to university and graduate school students informing their careers. We provide opportunities to deepen knowledge about the business of trading
companies and about working in a trading company.
ITOCHU recruits employees chiefly on the basis of their personal character. We recruit employees
fairly and impartially without concern for their race, gender (including sexual minorities such as LGBTQs),
religion, nationality, age or otherwise. We have provided human rights education with lecturers from theTokyo Metropolitan Human Rights Promotion Center and have also reflected that content in ourinterviewer education. We have also established a watchdog system in which employees are selected andnotified to serve as watchdogs to establish a fair recruitment screening system.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Respect and Consideration for Human Rights
Training Programs

We raise awareness about the relationship between our corporate activities and human rights in our
various internal training programs. We develop the mind to respect human rights that should bepossessed as an ITOCHU person in our new employee training. For example, we hold training to acquireconsideration for race, gender (including sexual minorities such as LGBTs), religion, nationality and age
from the basic concept of human rights and points of concern. We raise the problem of sexual harassment(including discriminatory behavior and harassment toward sexual orientation and gender identity) andabuse of authority in internal training aimed at organizational heads. We provide education andinstruction for measures when harassment has actually occurred and when we have received reports ofsuch. We strive to create an environment that does not allow harassment on a daily basis. Through these
initiatives, we are aiming for a thorough understanding toward human rights. We are also striving to raiseawareness in various regions by looking at consideration for human rights in our supply chain in preoverseas assignment training. There were 685 participants in our human rights training in FYE 2023.
●

Relevant data: FYE 2023 Human Rights Training Record (P167)

In addition to the above training, we provide opportunities for officers and employees of ITOCHU allover the world to learn about business and human rights with online general sustainability education.
●

Sustainability Awareness Activities at ITOCHU (P18)685

Human Rights Training Participants

people (FYE2023)

Sustainability Seminars

We have continued to hold internal seminars since FYE 2008 on human rights issues. The aim of this is toadopt insight and opinions from those outside the company. We made business and human rights (in the
supply chain) a theme in FYE 2019. We then looked at the fact consideration for human rights is becoming
even more important as a trend in society surrounding sustainability in FYE 2020 and FYE 2021.
We are continuing to conduct awareness activities for business and human rights. The purpose of
these is to learn about the latest trends concerning corporate activities and human rights problems and to
make use of that in our business as a general trading company which deploys various businesses acrossthe world and which plays an important role in the supply chain.
●

Seminar Details (P18)

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities132

ESG Data(Society)

Various Publications

We are endeavoring to raise awareness of human rights. The aim of this is to ensure that human rights
violations do not occur in the workplace. We are doing this through various publications that we distributeto all our employees and publish on the Intranet.
● We convey our basic concept on respect for human rights through The ITOCHU Group Code of EthicalConduct and The ITOCHU Group Human Rights Policy to all our employees.
● We call on our employees not to induce human rights violations in business in our compliancehandbook. We do this by establishing pages on respect for human rights and harassment with concrete
examples.
● We have described checkpoints in a handbook on communication with our suppliers. This is so thatthose in charge of surveys can understand the actual state of the management of human rights andlabor practices in suppliers even more clearly and so that they can then offer advice on making
improvements. This ensures that the supply chain sustainability survey mechanism functions. At thesame time, we utilize this in keeping those in our company informed.

Countermeasures against Harassment

ITOCHU is raising awareness on the importance of making systems well-known and engaging incommunication through organizational head training. We are doing this so that pregnant employees andemployees persevering with their work while being engaged in childcare and nursing care can also
contribute to their workplaces with a sense of their work being worthwhile. This is without employees in
the workplace being subjected to abuse of authority or sexual harassment (including disadvantaging andharassing employees who are applicable to sexual minorities). Superiors encourage employees withrestrictions due to balancing their work with childcare or nursing care to make use of the related systems
appropriately. In addition to this, we are also ensuring employees are fully informed about the importanceof reviewing work content, work division and work styles over the entire workplace. Furthermore, we havethoroughly established a workplace environment which does not allow discriminatory remarks relating tosexual orientation or gender identification and remarks made under unconscious assumptions of gendersegregation. We have also established a desk to receive consultations from employees.
The following are clearly defined as prohibited acts in human rights violations under the work
regulations: discrimination relating to work by race, gender, religion, creed, nationality, body, illness, age
or any other irrational reason; sexual harassment (including discriminatory behavior and harassment
relating to sexual orientation and gender identity); and workplace bullying. The regulations stipulate
disciplinary action to be taken against such behavior.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Respect and Consideration for Human Rights
Foreign Technical Intern Trainee Survey on Working Environment

ITOCHU Modepal, a subsidiary to ITOCHU under the Textile Company, conducted a survey on its domestic
production contractors, which constitutes of 211 sewing factories. The survey inquired whether or not thecontractors were employing foreign technical intern trainees, and if the contractor answered affirmatively,
continued to ask how it manages legal compliance to labor standards and health and safety standards
specifically regarding the foreign trainees. The latest survey results showed that there are no cases of
non-compliance to relevant laws and regulations.
In order to facilitate the survey and enhance its results, ITOCHU’s head office Sustainability
Management Division held a seminar for sales
representatives and production managers prior tosending out the questionnaire. The seminar,
entitled “Sustainability Promotion and Foreign
Technical Intern Trainees”, aimed to enhance
participants’ understandings of human rights risks
and how to mitigate them.
ITOCHU will continue to make Group-wide
initiatives in identifying risks along the value chainthat can potentially lead to human rights
violations, and strive to uphold its commitment torespecting human rights.
Seminar on “Sustainability Promotion and Foreign TechnicalIntern Trainees”

Human Rights Training for Ready-made Meal Manufacturers
FamilyMart, a group company, holds Meetings toShare Information on Human Rights Issues in the
Supply Chain for managers involved in the hiringof ready-made meal manufacturers who supply
products to FamilyMart stores and the formulationand implementation of labor-related policies. The
aim of these meetings is to prevent human rights
risks and to promote understanding of those risks.
The ITOCHU Group will continue to work to
reduce human rights violation risks across theentire value chain in our Group.
■ Meeting Details

Speaker
Details

Kazuo Tase, SDG Partners, Inc.
●●●

Information of Consultation desks for human rights is provided in
the training

Responsibility of companies for human rights
Prevention of human rights problems and dealing with such problems when they occur
Question-and-answer session

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

133

ESG Data(Society)

Pineapple Production Business Promoting Local Employment, Supporting Living
Infrastructure, and Improving Productivity
For more details, please refer to Community Contribution. (P164)

An Oil Project in the Caspian Sea, which Ensures a Stable Resource Supply andContributes to Local Communities for Harmonious Cooperation
For more details, please refer to Community Contribution. (P164)

Cooperation with Stakeholders

Participation in Workshops on Human Rights Issues

Business and Human Rights Training: Effective Stakeholder Engagement
Supply Chain Labor and Human Rights Audit (Practical) Training (LRQA Sustainability K.K.)● Human Rights Education Subcommittee (GCNJ)●●

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Responsibilities to Customers

Society

Policy and Basic Concept

ITOCHU, which engages in multifaceted corporate activities in a wide range of fields in various regions
around the world, believes that meeting the expectations of society through our business activities will
maintain sustainability and lead to further growth.
ITOCHU has limited direct access to consumers in much of our business due to our characteristics as a
trading company. Nevertheless, we recognize the importance of quality and safety management. We fulfill
our responsibilities to customers by promoting initiatives to ensure this concept penetrates into the value
chain.

Product Safety

ITOCHU complies with our obligations as stipulated in safety related laws and ordinances for the products
we handle. We are striving to ensure safety by formulating product safety manuals for each company
based on our policy of providing even safer products with greater peace of mind to our customers. We willcontinue to work on providing safe products with peace of mind in the future. We will do this while
promoting internal education, setting up departments responsible for product safety, establishing
information transmission routes and reviewing our response in the event a product accident does occur.
For related initiatives, please refer to “Sustainable Procurement: Policies and Initiatives by Product Type”(P153).

Responsible Marketing

We engage in responsible advertising and marketing that fully takes into account our social responsibility.
We do this under our Corporate Mission “Sampo-yoshi”, the ITOCHU Group Corporate Guideline ofConduct, “I am One with Infinite Missions,” and our Code of Ethic Conduct. We accept expectations andrequests from society through two-way dialogue with stakeholders. We then put them into practice.
Advertising

Governance

Respect and Consideration for Human Rights

We have unified the visual image of ITOCHU to improve and ensure the penetration of our brand image tocustomers. Internal regulations have been developed to advertise and perform publicity with theappropriate expressions, content and media. We also give due consideration to slander, discriminatory
expressions, exaggerations and false representations, religious and political beliefs, the environment, third
party privacy, personal information and intellectual property rights. This is done in accordance with oursustainability policy. We promote appropriate advertising and publicity initiatives by sharing knowledge
on advertising and publicity activities through regular meeting for our group companies.

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

134

ESG Data(Society)Marketing

We are thoroughly committed to creating content and expressions that do not cause misunderstanding
and which do not infringe upon the rights, credibility and honor of others. This is done under relevant laws
and ordinances, our internal regulations, various internal training programs and our company-wide
compliance structure. We carry out responsible marketing activities by emphasizing dialogue with thevarious stakeholders around us in the diverse business activities we deploy on a global scale.

Individual Policy

Safety of Food Products

The Food Company is engaging in food safety management based on the following mission and activity
guidelines.

Philosophy

FOR THE NEXT GENERATION

Mission

1. To contribute to the sound development of society while gaining strong trust from consumers
2. To provide health and happiness to people by realizing rich food lifestyles through the stable supply ofsafe food

3. To contribute to the interests of consumers, business partners, shareholders and employees throughfair corporate activities

Activity Guidelines

The following serve as the concrete activity guidelines to achieve our basic philosophy and mission. We
comply with laws and ordinances and the ITOCHU Group corporate mission and code of ethical conduct.
We then thoroughly inform all relevant employees in the Food Company about these. Upon doing that, we
engage in food safety management and fair business which form the basis of trust from consumers.
The Food Safety and Compliance Management Office gives instructions and guidance on the above in
the Food Company Group.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Responsibilities to Customers

Society

Responsible Food Business: Commitments and Policies

The ITOCHU Group aims to support people’s lives by providing various products and services. In doing so,
we aim to ensure the best quality in our offerings by comprehensively managing the entire supply chain of
our products and services, from the procurement of raw materials to the retailing of finished products. In
keeping with this business approach, our Food Company consists of three divisions: the Provisions
Division, the Fresh Food Division, and the Food Products Marketing & Distribution Division. The threedivisions are designed to allow us to develop a value chain that caters to consumer needs, is ensured to
add top-quality value, and seamlessly connects various processes, from the development of foodresources, the supply of raw resources, production and processing, midstream distribution, and retail. Our
Food Company synergizes these business aspects throughout the Japanese, Chinese, and greater Asianmarkets. At the same time, by continuously improving and refining our management and controls aroundfood safety, we aim to become a leading company in the global food industry.
ITOCHU Group takes a market-oriented approach, incorporating the needs and expectations of themarket and consumers as an integral part of our business model. Our food retailing business, which
includes FamilyMart, is no exception. We first and foremost consider the needs of our customers, andbased on key insights we draw from market and consumer trends, we build our strategy and approach.
This allows us to build a value chain that adds value from the procurement and production of raw
materials, to the development and manufacturing of products.
As for our food business, we identify the issues noted in the table below as material topics that
especially require our careful management to provide safe and reliable food products. It is subsequently
our policy to commit to addressing each of these issues.
Material Issue

Description

Reducing Negative
Product Impact of Food
Products on Customers

Ensuring the safety of imported foodproducts, processed foods, and fresh foodproduces (E.G.,Coping with biological,
chemical and physical hazards)

Responsible Advertising,Marketing, and Promotionof Food Products

Provision of information regarding foodallergies and additives.

Responsible Advertising,Marketing, and Promotionof Alcoholic Beverages

Provision of information regarding theprevention of drinking among persons
under 20 years of age and pregnant women

Access to Better Nutrition

Providing nutritiously balanced solutions to
the elderlyManagement Approach●●

Governance

Respect and Consideration for Human Rights

Self-management system for foodsafetyAssessments for supplier’s
management systems in place toensure food safety (factory inspections
and audits)

Management rules for the registrationof food labels● Improvement initiatives regarding
inspection skills of label contents●

Internal education programs on theliquor tax law
Cooperation with regional hospitals andnutritionist organizations

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

135

ESG Data(Society)Improving Access to Better Nutrition

As part of its commitment to realize a high-value-adding business, one of our major concerns in the foodbusiness area is access to nutrition.
In developed countries, aging society is a pervasive issue. Elderly populations with unbalanced
nutrition or lack of nutrition are increasing, straining medical budgets as well as caregivers. Furthermore,
for conditions such as acute forms of diabetes and liver disease that require home care, there is a
widespread need to secure nutrition balances that are healthy, nutritious, and prevent obesity.
At one of our subsidiaries, FamilyMart, we apply our unique ON/OFF approach to strengthen thedevelopment of ready-made meal that support health. ON represents products that provide (ON) the bodywith nutrition in the form of vegetables, lactic acid bacteria, and dietary fiber. Examples include productsthat use super barley and whole grains, which provide bountiful amounts of dietary fiber. On the other
hand, we also offer products that reduce (OFF) certain ingredients, such as salt and sugar, without
reducing the flavor of the product. These products have been highly popular with consumers looking for abalance of delicious taste and health.
Furthermore, we recognize that in developing countries, hunger and malnutrition are socially
important issues caused by various elements including poverty. At ITOCHU Group, in order to take action
in solving these issues we have implemented various initiatives. For example, we provide financial support
to the World Food Programme (WFP) and working with Table for Two (TFT), which aims to alleviate the
dietary inequality between developed and developing nations. In this way, we aim to provide high quality,
nutritious food solutions to the children of developing countries.
Throughout the initiatives introduced above, we provide products and services and engage incommunity investment activities to support the nutrition and health of people in and out of Japan. We willcommit to continuing these initiatives to enhance self-care, reduce medical expenditure, and provide
healthy food options to children living in poverty, to contribute to solving issues of access to better
nutrition among underprivileged groups.

Safety of Pharmaceuticals and Responsible Marketing
Pharmaceutical Quality and Safety

We contribute to the fulfillment of medical needs by delivering a stable supply of pharmaceutical raw
materials and products at the level of quality required of pharmaceuticals. Additionally, we will satisfy
latent medical needs by working on clinical development in new drug development to enable treatmentof heretofore difficult-to-treat diseases. Our main market is Asia, including Japan, but we will also work on
procurement and sales in Europe and the United States. We ensure safety in product supply and clinicaldevelopment in accordance with Pharmaceuticals and Medical. Devices Act.
Pharmaceutical Ads and Labels

Final pharmaceutical products are sold only to licensed companies. We do not engage in advertising. We
are taking necessary measures to ensure appropriate product labeling throughout the manufacturing anddeployment process in legal compliance with the Act on Securing Quality, Efficacy and Safety of Products
Including Pharmaceuticals and Medical Devices.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Responsibilities to Customers

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

136

ESG Data(Society)Targets and Action Plan
Risks

●

Decline in credibility that would result from the occurrence of consumers and service users’ safety or health issues.
Materiality

SDGs
Targets

Food Company
Contributeto Healthierand More
Affluent
Lifestyles

ImpactClassifi-cation

Food
SafetyMachinery Company

Issues to Address

Supplying safe, secure
food

Address Climate Change
Develop a Rewarding
Work Environment● Respect and Consider
Human Rights● Contribute to Healthierand More Affluent
Lifestyles● Stable food procurement
and supply

Business Area

Energy & Chemicals Company
Contributeto Healthierand More
Affluent
Lifestyles

MedicalHealthPromoting good healthamong people

Specific Approach

Performance Indicators

Degree of Progress

We will aim to strengthen the food safety
management structures in our suppliers. We
will do this by persons with certifications/
qualifications related to the Food Safety
Management System (FSMS) taking thecentral role in enhancing supplier audits andmaking requests for improvements.

Stably supply safe and secure foodby enhancing the audits andguidance for suppliers mainly by the
persons with certifications/
qualifications related to the Food
Safety Management System (FSMS).

We are continuing to stably supply safe and secure food. We are achieving this by continuing toenhance the audits and guidance for suppliers mainly by the persons with certifications/
qualifications related to the Food Safety Management System (FSMS) or in-house qualification
holders related to factory audit.

Overall food-related
businesses

DENBA products
and related businessWe will contribute to the reduction of foodloss by utilizing freshness preservation
technology, DENBA and to theimprovement of nutritional condition by
the availability of fresh food through Food
Bank and children’s cafeteria.
Furthermore, we aim to increase theworking opportunity of persons withdisabilities and supply of agricultural
products utilizing the hydroponic farming.

Installation of DENBA technology to foodsupply chain and familiarizing the
combination of hydroponic farming withdisabled employment.

Expand sales of DENBA products inthe food supply chain (more than
JPY300mil sale in FYE 2024),
maritime chamber (more than200vessels in FYE 2024) andrefrigerated containers for children’s
cafeteria (more than 5cases in FYE2024). Opening hydroponic farming
plant with disabled employment(one pilot project in FYE 2024).

Pharmaceuticalproducts

We will contribute to improve people’s
health and working environment throughaccelerating the development ofpharmaceuticals and other products infields with significant needs including
cancer-related fields.

Actively promoting to support thedevelopment and marketing of newpharmaceutical and generics.

Aim to accelerate the deployment ofpharmaceuticals on the market,
obtain early approvals for new
pharmaceutical, generics and otherproducts of which we are engaged insupporting the development andplace them on the market.

●

Food
SafetyCommitment

Increase in demand for food safety, security and health improvement.

We will select and concentrate on
suppliers to stably procure safe, secure
food.

●

Contributeto Healthierand More
Affluent
Lifestyles●

ICT & Financial Business Company
Supportpharmaceuticaldevelopment
projects●P reventative
healthcare-related
business●M edical healthcare
IT business●S ales of CuttingEdge medical
devices andprovision of
medical services

MedicalHealthPromoting good healthamong the people

Continuously supporting sales of DENBA, in particular DENBA Fryer which enables to reduce
cooking oil amount of professional electric fryer. It realizes substantial reduction of waste oil.
●T
 otal number of sales of DENBA Marine for maritime chamber achieved 200units.
●U ntil 2022 more than 10 use cases of Refrigerated containers with DENBA’s freshness
preservation units for children’s cafeteria have been accomplished. More and more operatorsof children’s cafeteria are approaching to DENBA so further use cases will be seen in 2023.
●Continuing to support the development of generics by ITOCHU CHEMICAL FRONTIER
Corporation, several types of pharmaceuticals have been launched.
●W e have continued to sell a pain reliever in North America through ITOCHU CHEMICALFRONTIER Corporation.
●

ITC has formed a capital alliance with a medical data company in FYE 2023.

●●

Contributeto Healthierand More
Affluent
Lifestyles

Opportunities

We will provide value-added services forpharmaceuticals and medical sites, andwill contribute to the improvement ofpeople’s quality of life (QOL) by utilizing
cutting-edge ICT tools.
●W e aim to improve quality of life byproviding cutting-edge medical devices
and advanced medical services in thefield of medical care, where technologies
are innovated rapidly.

Realization of new services andbusiness development relating to
medical data.
● Expansion of existing business.
(Data volume of the number ofpeople subject to health checkup,
to reach 1.2 million by the end of
FYE 2022.)● Increase the penetration ofadvanced medical devices inJapan.
●●

We will optimize healthcare utilizing
medical data.
Promote sales of advanced medical
devices, and the business of supporting theoperation of designated regional cancer
care hospitals.

●●MRI-guided radiation therapy systems●T he radiotherapy treatment system which we delivered to National Cancer Center Hospital,
Saitama Medical University International Medical Center, and Edogawa Hospital are treating acumulative total of 600 cancer patients including patients were difficult to treat withconventional methods.
●E dogawa Hospital as well as National Cancer Center Hospital (finished upgrade to latest
system on June. 2022) has been treating intractable cancer and Saitama Medical University
International Medical Center will be starting treatment at the end of March 2023. Also,
Shin-Matsudo Central General Hospital will going to install the system by the end of this year.
Scalp cooling therapy system for cancer patients●T he system has been highly evaluated by patients and medical professionals for its
effectiveness in suppression of decreasing hair loss caused by anticancer drug treatment,
mainly among breast cancer patients.
●I n the end of FYE 2023, 80 system machines(Sales:43, Rental: 37) have been operated in 26
prefectures and treated a cumulative total of 2,000 patients at 64 facilities in Japan.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Responsibilities to Customers

Society

Structures and Systems
Quality Management

With the diversification of dietary habits, the globalization of food distribution, and a growing awarenessregarding health issues, consumers are increasingly paying attention to the safety and security of theirfood. At the same time, there have been cases of incidents and problems threatening food safety, such as
those regarding violation of food labeling standards, residual pesticides, and the distribution of foods
using unauthorized additives. Our Food Company addresses these concerns and ensures measures aretaken to prevent issues by establishing a quality control system overseen by its Food Safety andCompliance Management Office. That office is responsible for addressing the following issues:
1. Advise to Company and their respective domestic and overseas subsidiaries in their initiatives to designa food safety self-management system.
2. Management of the labeling and safety-related issues of our food products.
3. Provision of education and training to employees regarding food safety.
4. Provision of training to members of our food safety management team in China.
5. Food safety audits and subsequent corrective guidance for subsidiaries and supplier factories.
In addition to the above, the Office is responsible for the management of compliance, trade and logistics,
and environmental activities, occupational health and safety, and sustainability promotion.

Supplier Management Audits for our Food Business
Due Diligence for New Suppliers

When the Food Company conducts business with a new business partner, the Company is required toassess the potential supplier’s management level of the manufacturing process, and whether it hasreceived certification recognized by GFSI (Global Food Safety Initiative). In doing so, we use an internal
assessment criteria that is designed to evaluate practices around food safety management.
Securing the Safety of Food through Regular Audits of Overseas Suppliers

Governance

Respect and Consideration for Human Rights

ITOCHU established the Food Safety Management Office (now: Food Safety and Compliance Management
Office) in the Food Company in FYE 2003. We are taking wide-ranging measures to ensure safety in thefood business. As part of this, we have been conducting regular visits and audits of the food processing
factories of overseas suppliers for imported processed food since FYE 2012.
The sales department is responsible for appointing an employee, local staff, or group subsidiary
employee to perform site visits and audit the safety management system at least once a year. The
frequency and timing as well as the specific sites subject to audits are agreed upon with the local factory,
with consideration given to specific circumstances as the supplier’s local laws, management capability,
product, and hygiene-related risks associated to the manufacturing process.
Auditors are required to reference a Plant Audit Check Sheet that we have originally devised, which
incorporates elements of well-known international food safety standards such as Codex HACCP, ISO 22000,
and FSSC 22000. Any points of improvement identified through the checklist are appropriately addressed,

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Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

and necessary corrective measures are ensured tobe communicated. In addition to the above, we
set up a new China Food Safety Management
Team in Beijing in January 2015. The aim of this is
to strengthen the safety management of imported
food. We have been dispatching a member of ourJapanese staff with a wealth of practicalexperience in factory audits (IRCA* ISO 22000
auditor qualification holder) as a trainer. Throughthis, we have been building a management
structure at a comparable level to that required inJapan. In addition to regular audits by Chinese
supervisors, we are increasing opportunities formutual confirmation through follow-up audits toensure continuous improvement.

Social Contribution Activities

137

ESG Data(Society)

Food Audit* International Register of Certificated Auditors

For overseas suppliers, our factory audit procedure and results are as follows:■ Factory Audit Procedure

Process

Target and Frequency
Settings

Conducting theFactory Audits
Issuing a Findings
Report and Requesting
Corrective Measures(as Per Necessary)

Description

The responsible sales department and the Food Safety and Compliance Management Office
determines the frequency of audits for each relatively high risk factory identified as amanufacturing plant for processed food, in accordance with laws and regulations of therelevant country. The decision of the audit frequency considers specific circumstances suchas the supplier’s local laws, management capability, product, and hygiene-related risks
associated to the manufacturing process.

The sales department is responsible for appointing an employee, local staff, or groupsubsidiary employee to perform site visits and audit the safety management system
periodically based on the frequency setting – over 300 relatively high risk plants are currently
subject to these site visits.
The final report must be created in line with the GFSI/Global Market Program factory audit
framework (GMP + HACCP + management system + food defense).

■ Regular Audits to Ensure Food Safety

Regular Audits (Number of Factories)

Regular Audits and Follow-up Audits in China (Included in
the Above Number of Audits)FYE 2021

238
49

FYE 2022

310
48

FYE 2023

331
42

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Responsibilities to Customers

Society

Subsidiaries that have ISO22000 or FSSC22000 Certifications

Furthermore, we also ensure food-related safety among our direct subsidiaries by implementing amanagement system that aligns to well-known international frameworks on food safety, such as Codex
HACCP, ISO22000, and FSSC22000.
ITOCHU FEED MILLS CO., LTD.
JAPAN NUTRITION Co., Ltd.
● DOLE ASIA HOLDINGS PTE. LTD.
● Provence Huiles S.A.S.

WELLNEO SUGAR Co., Ltd.
FUJI OIL HOLDINGS INC.
● PT. ANEKA TUNA INDONESIA● SHOW-WA Co., Ltd.

●

●

●

●

●

●

Prima Meat Packers, Ltd.
PT. ANEKA COFFEEINDUSTRY

Staff Education and Training to Ensure Compliance to Responsible Advertising,Marketing, and Promotion Standards and Food Safety Standards

We provide e-learning as an education and training program to ensure responsible advertising, marketing, andpromotion of food products, and compliance to food safety standards. We are looking to raise awareness andimprove knowledge about responsible marketing, food safety, and compliance with relevant laws andregulations among employees. Furthermore, given the expansion of our food business and the subsequent
increase in our auditing scope, we are also invested in training personnel capable of site audits.
Main Content

Target Persons■ Attendance Record

Number of Trainees

Attendance Rate

Food safety and responsible advertising, marketing, and promotion
ComplianceInternal regulations and manuals
● ESG
●
●
●

●
●

All employees in the Food Company (including part-time workers, temporary workers,
employees seconded from the company and employees seconded to the company)
All employees in the Food Management Support Corporation (subsidiary tocomplement the functions of the Food Company)
FYE 2021

FYE 2022

FYE 2023

100%

100%

100%

771

766

770

We will continue to provide this education and training with the aim of ensuring that knowledge becomesreliably entrenched.

Participation in Food Safety-Related Initiatives and Organizations

Governance

Respect and Consideration for Human Rights

At ITOCHU Group, we aim to maintain and enhance our quality management to ensure that we supply safeand reliable processed foods. In doing so, we make sure to cooperate with external parties and are
members to industry groups in order to engage in knowledge sharing and collaboratively work towardenhanced solutions.

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Evaluation by Society

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Social Contribution Activities

138

ESG Data(Society)

Association for the Safety of Imported Food, Japan (ASIF) (Japanese only) (https://www.asif.or.jp/)
A group of concerned companies involved with importing, manufacturing, distribution, and sales formed
ASIF in November 1988, beginning to work towards solving imported food safety issues. These activities
led to the ASIF receiving permission from the Ministry of Health, Labour and Welfare in September 1992 tobecome an incorporated association. ASIF received authorization to become a public interest corporation
on April 1st, 2011. ASIF is involved in a wide variety of activities to support food vendors in fulfilling thesocial responsibility of “delivering safe and secure imported foods.”
In order to promote food safety, the ITOCHU Group collects information on the safety of processedfood and perishable food regarding imported food product – (e.g. Coping with biological, chemical andphysical hazards) – from the Association for the Safety of Imported Food of Japan. This information isreflected in our voluntary food safety management system as well as our supplier food safety
management system (which includes factory inspections and audit).
Japan Food Hygiene Association (Japanese only) (https://www.n-shokuei.jp/)

This association was established on November 1st, 1948 as a collaborative initiative between privatecompanies in the food sector and administrative organizations regarding the food hygiene law in order toenhance self-regulation in the market. The establishment of the organization shortly followed theenactment of the food hygiene law in 1947, which was created to prevent any accidents or issues
regarding eating and drinking, as well as improve public hygiene in Japan.
Ever since its establishment, the association has continued its initiatives to cooperate with organizations
throughout Japan, and contribute to the enhancement of food safety and hygiene among private companies.
The association participates in a wide range of purpose-led initiatives for public interest, and provides training
regarding the self-regulation of food safety management, provides assessments and verifications of certain
food products, promotes food sales legal liability insurance, holds seminars and events, issues and promotes
food hygiene related books and reports, provides informative guidance to consumers, participated ininternational cooperation regarding food hygiene, and promotion of relevant research.
Based on advice received from the Japan Food Hygiene Association, the ITOCHU Group is taking
necessary measures to continuously improve its food safety management system by identifying ways toimprove food hygiene and our self-management system.
Japan Food Additives Association (Japanese only) (https://www.jafaa.or.jp/)

The Japan Food Additives Association (JAFA) was established in October 1982 with the Nippon Food
Additives Group Leagues serving as the parent body to disseminate correct knowledge about foodadditives. It then transitioned to being a general incorporated association in April 2014. The association is
engaged in various activities under the guidance of the Ministry of Health, Labour and Welfare’s
Pharmaceutical Safety and Environmental Health Bureau. The aim of these activities is to seek a correctunderstanding from members about the manufacture, sale and use of food additives and from regularconsumers about the safety and usefulness of food additives.
The ITOCHU Group collects information about food allergies and food additives through the JAFA.
This information is useful in checking food labeling registration management rules and labels, improving
the level of inspection management, and training personnel with qualifications in food labeling.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Responsibilities to Customers

Society

Quality Management in our Pharmaceutical BusinessPharmaceutical undertakings require sector-specific expertise and is therefore primarily handled bydesignated group companies. We implement quality control to ensure quality in accordance with the Act on
Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices. This
includes, for example, assessing and confirming the quality of imported materials at our lab before it is sold.

Assessing Management Capabilities at our Pharmaceuticals-related Suppliers andContributing to Improved Quality of Life (QOL)
Regular Site Visits for Foreign Suppliers

Not only do we implement quality control at our lab but we also visit our overseas suppliers regularly andperform inspections to make sure that the manufacturing process conforms to the Pharmaceuticals andMedical. Devices Act.
Contribution to Improving QOL in the Pharmaceutical Field

We contribute to controlling the rise of medical costs by providing a stable supply of raw materials forgeneric drugs. We will also invest in companies that develop regenerative medicines and new drugs toalleviate the side-effects of cancer and work to raise the level of future treatments and improve patient
quality of life.

Initiatives

Initiatives to Support Socially Vulnerable Groups
Handling Plant-based Milk (Oat Milk and Almond Milk)

Governance

Respect and Consideration for Human Rights

ITOCHU is developing oat milk and almond milk among the plant-based milk products made from beans,nuts and other plant ingredients.
Plant-based milk is becoming popular as an alternative to cow’s milk that can also be drunk by thosewith lactose intolerance who cannot digest lactose.
Oat milk and almond milk are especially healthy as they have lower fat and calories than cow’s milk.
They contain lots of dietary fiber and go well with coffee. Therefore, demand is also growing for them in
the United States and Europe.
Furthermore, they can contribute to a reduction in the environmental burden in terms of CO2
emissions, land and water usage compared to cow’s milk. They are sustainable ingredients characterized
by the ability to store them at room temperature and their long best before dates.

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139

ESG Data(Society)

ITOCHU is building a raw ingredient import and domestic manufacturing structure to widely deliver toconsumers this nutritional, healthy and environmentally-friendly plant-based milk. We are also proposing
development that includes product design.
One of the basic policies in ITOCHU’s Medium-term Management Plan is to contribute to andstrengthen initiatives for SDGs. We will also proactively promote the development of plant-based milk in
the future with a target of handling 5,000 tons of it in FYE 2026.
Target of Handling

5,000

t

of Plant-based Milk (Oat Milk, Almond Milk) by 2025

CP Foods (CPF): Handling of Plant-Based Foods

Plant-based foods are foods made from soybean, peas, wheat and other plant-based ingredients that
reproduce the flavor and texture of animal-based foods (hamburger patties, nuggets and other meatproducts, cheese, butter and other dairy products, and tuna and other seafood products, etc.).
These foods are attracting attention for various reasons. Many plant-based food products contain lessfat than animal-based products. Plant-based foods are ingredients which may solve the issue in modern
society in that animal-based protein is expected to be in short supply for the entire population in the
future. Furthermore, plant-based foods can contribute to reducing the environmental burden in terms of
CO2 emissions, land and water usage compared to animal-based foods.
We are working on the development of Meat Zero plant-based food products jointly with CPF that is acore company in the CP Group and one of the major suppliers of the Food Company. We are doing this sothat we can also proactively promote plant-based foods with the above characteristics. We started sellingchicken nuggets, hamburger patties and meat sauce in Thailand under the Meat Zero brand name in May
2021. We use the soy protein of the FUJI OIL company in our Group for some of the ingredients. We alsoutilize the knowledge of the ITOCHU Group to
reproduce the look, texture and taste of real meat.
Thailand CPF has announced it is aiming tobecome the top brand in Asia and one of the top
three brands in the world for meat substitutebrands by 2026. In addition to the products wehave jointly developed with CPF, ITOCHU is also
proactively promoting and developing otherproducts. Combined with the Try Veggie series(Prima Meat Packers) developed within in ourGroup, we are aiming to handle 10,000 tons ofplant-based foods by 2025.
Target of Handling

10,000of Plant-Based Foods by 2025tTop Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Responsibilities to Customers

Society

FamilyMart

At one of our subsidiaries, FamilyMart, we engage in food retailing that first and foremost values the local
community’s needs. This means that we highly value the contributions we can make to socially vulnerable
groups, and implement measures to address this issue throughout the FamilyMart business such as in thefollowing ways.
■ Preventing the Sale of Alcohol and Tobacco to Persons Under 20

FamilyMart sells alcoholic beverages and tobacco. We thoroughly prevent the sale of alcoholic beverages andtobacco to persons under 20 years of age as a responsible business operator and as a response based on the
Safety Station Activities Charter (Initiative to Improve the Environment for Youths) of the Japan Franchise
Association to which FamilyMart belongs. We have created a Guidebook for Compliance with Laws andRegulations Concerning the Sale of Alcohol and Tobacco. This guidebook summarizes the matters which should
be complied with when advertising, publicizing and selling alcohol and tobacco, and the method of educating
employees. It is based on the concept that drinking alcohol under 20 years of age leads to the risk of developing
acute alcohol addiction or alcohol dependence in the future. Furthermore, we provide the following education
and awareness campaigns to company and franchise store employees and give warnings to customers. These
efforts allow us to thoroughly ensure we do not sell alcohol and tobacco to persons under 20 years of age.
1. Warning to Customers

We give warnings to customers about the sale of alcohol and tobacco. We display products in the alcoholic
beverages section so they can be recognized as such. In addition, we put up posters and sales promotional
materials stating we will not sell alcoholic beverages to those whom we cannot confirm to be at least 20
years old.
Every week, store managers and supervisors in charge of sales guidance verify whether legally
mandated display of alcoholic beverages at the store and their classifications are carried out properly andconfirms the presence of posters and other items that prohibit persons under 20 years of age fromdrinking and smoking.

“Age Verification in Progress”
Poster Sample“Alcoholic Drink Sales Label” Product Display Case Board

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

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Social Contribution Activities

140

ESG Data(Society)2. Age Verification at the Register

In July 2017, we changed the cashier program so that when alcohol and tobacco products are scanned at
the cash register, messages are displayed on the cash register screens of both store staff and customers at
the same time as voice guidance to alert store staff and facilitate age verification of customers.

3. Training of Store Staff

We have created the Age Confirmation Guidelines and the Alcohol and Tobacco Sales Training Program toprovide training to all employees working in our stores on the identification of alcohol and tobacco
products and on the age-verification procedures at cash registers. When hiring employees who will
operate cash registers, they receive training through the Alcohol and Tobacco Sales Training Program
before serving customers. Additionally, they undergo Alcohol and Tobacco Sales Training twice a year (firsthalf and second half of the year). Upon completion of the training program, we prepare a “Record of
Alcohol and Tobacco Sales Training Implementation.” This record is confirmed by the store manager andsupervisor.

4. Advertising and Promotion of Private Brand Alcoholic Beverages

We label alcoholic beverages in the Famimaru private brand of FamilyMart based on the Voluntary Codefor the Advertising and Marketing of Alcoholic Beverages and the Labeling of Alcoholic BeverageContainers established by the Japan Liquor Industry Council. Furthermore, FamilyMart stores whichhandle alcoholic beverages also handle non-alcoholic beverages as an alternative to alcoholic beverages
for customers who are 20 years of age or older.

■ Development and Provision of Products and Services that Promote Health and Eliminate Negative Impacts

In an increasingly aging society, the demand for medical budgets and caregivers is rapidly increasing,
becoming pervasive social issue in Japan. In light of this social issue, FamilyMart proactively sells products
and services aimed at supporting the health of its customers. These initiatives aim to support theenhancement of healthy diets among customers, increase a self-care mindset among community
members, and reduce medical expenditures. Furthermore, FamilyMart is developing products based on
the concepts of “ON (plus)” and “OFF (suppression)”: health appealing products that add vegetables,
dietary fiber, etc. to the body, and health support products that eliminate specific ingredients, such as
low-sugar products and low-salt products, from a health-conscious perspective without losing their flavor.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Responsibilities to Customers

1. A Product That Promotes Health by Adding Vegetables, Dietary Fiber, etc., to the Body●

Cumulative sales of food products containing super barley exceed 200 million meals (December 2021):
We have sold food products containing the BARLEYmax® (hereinafter “Super Barley”) functional foodingredient since 2017. Cumulative sales of Super Barley have exceeded 200 million meals (as of the endof December 2021).
Furthermore, we started selling new products made with Super Barley such as Super Omugi-iri Daizu
Meat Soboro / Tamago / Iwashita-no Shinshouga-iri (minced soy meat, egg and Iwashita sweet-sour
pickled young ginger rice balls containing Super Barley) since January 2022. These rice balls contain MCT
oil that is much talked about among those with a high health consciousness and the high-protein soy
meat food product.
Super Barley contains about two times as much dietary fiber as regular barley and about seventimes as much brown rice. It is possible to consume medium-chain fatty acids widely used in training
and medical sites as a high-quality energy from MCT oil. Meanwhile, vegetable protein and dietary fiber
can be consumed from soy meat. We provide products which support the PFC balance* of Japanesepeople that tends to be upset due to excessive sugar and a lack of protein as affordable rice ballproducts.
Cumulative Sales of Food Products* PFC balance: This refers to the balance of consuming the three major nutrientsof protein, fat and carbohydrates. The Ministry of Health, Labour and Welfare
has set target amounts for these to prevent the onset of lifestyle-relateddiseases and their aggravation.

●

200

Governance

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Respect and Consideration for Human Rights

Containing Super Barley Exceed

Million Meals

Products Using Soy Meat: In January and June 2021, FamilyMart stores nationwide launched a total ofnine products using soy meat across Japan. Soy meat has been attracting an increasing interest in recent
years as next-generation meat. FamilyMart has been releasing products made with soy meat since April
2017. These have received a great deal of support mainly from health-conscious customers. With the
spread of new lifestyles due to the impact of the new coronavirus and the change in awareness ofenvironmental issues due to the growing focus on the SDGs, there has been a change in our daily dietary
habits. In addition, interest in health-consciousand ethical products is rising. Above all, soybean
meat, a processed soybean food, is attracting
attention as an ingredient that takes into
consideration the environment, health, andvarious food cultures. In addition, soybean is an
ingredient rich in nutrients such as vegetable
proteins; it is even called “the meat of the fields.”
The demand for vegetable protein is increasing
year by year due to the fact that it has less of anenvironmental impact in terms of water andProducts Using Soy Meatenergy required for growth compared to meat.

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141

ESG Data(Society)2. Nutritionally-balanced Health Support Products That Suppress Specific Ingredients, Such as Low-salt●

Products, from a Health-conscious Perspective without Losing Flavor

First convenience store to sell products certified by the Smart Meal Certification*: Aburiyaki Shake
Makunouchi Bento (a boxed lunch containing grilled salmon) sold on a reservation basis received Smart
Meal Certification – a first for a convenience store – as a nutritionally balanced meal in August 2018.
Furthermore, Ajiwai Gozen (a boxed lunch) released in February 2019 has also been praised for its greatbalance of nine side dishes that take into consideration carbohydrates, fat, and protein. This has led to it
being our second product to receive Smart Meal Certification.

2* This certification scheme is managed by the Healthy Food and Food Environment Consortium, which is composed of 13 academic organizations thatspecialize in health-related issues such as nutrition, high blood pressure, and diabetes.

First Convenience Store to Produce

Certified by the Smart Meal Certification●

Products“Low-salt Japanese-style Dressing” won the first Gold Prize at a convenience store: Our Reduced-Salt
Japanese-Style Dressing in a small-pouch form sold separately from salads was awarded the Gold Prizeat the Fifth JSH Reduced-Salt Food Products Awards (sponsored by the Salt Reduction Committee of theJapanese Society of Hypertension). It was the first time for a convenience store to win the Gold Prize.
Since its launch, the dressing has been supported by many customers, as a product with 25% less salt*
while retaining the rich flavor that brings out the taste of vegetables.

* Contains 25% less sodium than standard Japanese-style dressing based on Standard Tables of Food Composition in Japan - 2020 - (Eighth Revised Edition).
Please refer to the FamilyMart Co., Ltd. Sustainability Site (Providing Products and Services that EnrichLives (https://www.family.co.jp/english/sustainability/material_issues/needs/added_value.html)) for
details of the above initiatives.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Responsibilities to Customers

Society■ Food Safety and Reliability

At FamilyMart, we aim to provide ready-made meal such as rice balls, sushi, boxed lunches, delicatessen
dishes, salad, and sandwiches that ensure safety and reliability for our customers. To achieve this, we havevoluntarily enhanced our safety and quality requirements to build upon what is legally required.
Throughout every each process of production, from procurement of raw materials and manufacturing to
the logistics and sales of products, we make it mandatory to follow these strict requirements and have
implemented support systems to ensure that this can be sustained. We also especially value thecontinuous improvement of hygiene management among contracted manufacturing factories for our
ready-made meal and are implemented measures accordingly. Moreover, we are also invested in reducing
additives in our food products and aim to ensure that the safety and reliability of our products are at ahigh level.
Process

Ingredient Management
Manufacturing and
Quality Control
Distribution Management
Store Management

Initiative●

Ingredient reviews based on quality and hygiene management standards

Bacterial tests (monthly)
Factory inspections on all ready-made meal manufacturing sites (monthly andbimonthly)● Quality product assurance meetings (weekly)● Quality control supervisor meetings (semiannual)
●
●

●
●

●
●

Distribution center facility management
Storage and transportation by temperature zone – frozen, chilled, and fixed
temperature
Education on hygiene management at stores
Implementation of hygiene management in accordance with HACCP■ Community Engagement for a Brighter Future

Governance

Respect and Consideration for Human Rights

As a member of the Japan Franchise Association, FamilyMart has been promoting the Safety Station
Activities, an activity to help protect the safety of local communities, since 2000. This activity was launchedby the National Police Agency, where initiatives, such as anti-crime measures, disaster prevention, safetymeasures, a thorough prohibition against the sale of cigarettes and alcohol to people underage to urge
those people to go home at late night, are actively promoted in collaboration with the government,
municipalities, and community people. As part of our Safety Station activities, we also provide protection
to vulnerable groups such as children, women, and the elderly in case of emergencies, and provide
guidance and support for youths to build an inclusive community.
Furthermore, at our stores, we also set up donation boxes as part of an initiative to contribute to theprotection and development of future generations, as well as preserving the natural environment for thesefuture generations.

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

142

ESG Data(Society)

WELLNEO SUGAR Co., Ltd. (https://www.wellneo-sugar.co.jp/english/index.html)■ Achieving well-being by opening up the power and potential of sugar

At WELLNEO SUGAR Co., Ltd. we leverage the amazing properties of sugar, a natural plant-based foodsubstance, to provide consumers with high-quality products that are both safe and worry-free.
ITOCHU Sugar Co., Ltd., a subsidiary of ours, is engaged in the production and sale of Kururu no Oishii
Origoto, which is made from fructooligosaccharides derived from domestic sugar beets, as well as
Okinawa & Amami Kibi Origo, which is made from fructooligosaccharides derived from domestic
sugarcane. Fructooligosaccharides, which are known as prebiotics, reach the large intestine after ingestion
without being digested and serve as a source of nutrients for intestinal bifidobacteria and other bacteria,
thereby maintaining a good intestinal environment.
FUJI OIL HOLDINGS INC. (https://www.fujioilholdings.com/en/)■ Development and Provision of Products and Services that Promote Health and Eliminate Negative Impacts

The FUJI OIL Group, one of our Group companies, develops products that promote consumers’ health. At
the same time, it develops products and services that eliminate negative impacts.
1. Initiatives to Reduce Trans-fatty Acid Content

The FUJI OIL Group started efforts to reduce trans fatty acids generated in the production of processed foods,
as it was found that they increase the risk of heart disease. We are promoting research and commercializationof low-trans-fatty acid fats and oils using techniques such as transesterification which does not generatetrans-fatty acids at the time of manufacturing.
Our initiatives to commercialize low- and non-trans acid oils and fats for chocolate and margarine
production can contribute to providing delicious and healthy food ingredients for our customers andconsumers in general. Under the supervision of the Chief Strategy Officer (CSO), we are promoting initiatives toreduce the trans-fatty acid content of our products, and plan to complete the reduction of trans-fatty acidcontent in all of our products to the WHO recommended level by 2023. Moreover, from FYE 2021, theSustainability Committee (renamed from the ESG Committee),* which is an advisory body to the Board of
Directors, confirms the progress and results of these initiatives as a priority theme (materiality) for ESG
management.
* Refer to the URL below for details of the ESG Committee. (https://www.fujioilholdings.com/en/csr/approach/)* Reference: Targets, Performance and Progress in Product Improvement (https://www.fujioilholdings.com/en/sustainability/trans_fats/)

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Responsibilities to Customers

Society

2. Reduced Sugar Chocolate

Initiatives to eliminate excessive consumption of sugar to prevent obesity and lifestyle-related diseases are
attracting worldwide attention. For example, the World Health Organization (WHO) published guidelines in 2015
recommending the daily sugar intake of adults and minors to be kept to less than 10% of daily energy intake.
The strength of the FUJI OIL Group lies in its research on vegetable protein ingredients which canserve as a substitute for some sugars as a B-to-B food ingredient manufacturer. The FUJI OIL Group is also
developing and promoting the sale of sugar-free chocolate made without using sugar.
Prima Meat Packers, Ltd. (https://www.primaham.co.jp/en/company/)■ Proactive Provision and R&D for Products Pursuing Good Health and Delicious Taste

As people become highly conscious of their health and lifestyle habits, more and more people are
becoming concerned about consuming too much salt and sugar. Salt provides the effects of flavoring andimproving shelf life, and reducing salt content will ruin those effects. A group company of ours, Prima Meat
Packers, Ltd., has been conducting research and development for many years. The company has
developed loin ham and bacon products with 30% less salt content and sugar-free while maintaining theirtaste and shelf life. These health-conscious products are sold under the Prima Healthy brand to makethem easily identifiable and have been well-received in the market.

Initiatives to Ensure Responsible Labeling

Governance

Respect and Consideration for Human Rights

The Food Company operates a food label registration management guideline, which provides a detailed
framework for us to responsibly label our food products. To ensure compliance to the guidelines, we also
provide training to staff that belong to relevant sales divisions and the Food Safety and Compliance Team.
The training aims to enhance our staff’s understanding of the food label registration management
guidelines and their capability to conduct inspections and checks on appropriate food labeling. Given
increasing importance for this issue and the increasing size of our food business, we are also aiming toleverage this training to increase the number of food labeling practitioners certified by the Food Labeling
Certification Association, a Japanese industry organization. In this way, we maintain the necessary internal
capacity to cooperate with specialized third party organizations to ensure compliance to our guidelines aswell as legal requirements.
At FamilyMart, the responsible labeling of processed foods is especially important as our customers
widely vary. For example, we recognize that we must ensure the safety of anyone with food allergies, andprevent the excessive intake of certain substances that can have heavy health consequences. In addition
to the information we are required by law to give on the labels on the private-brand products sold at
FamilyMart, we list a total of 28 items on the allergy labeling: the seven items mandated to be labeled bylaw plus 21 items recommended for labeling. We do this so that customers can purchase products withpeace of mind. Furthermore, we also provide information that we believe our customers would like toknow when choosing products (e.g., ingredients, nutritional ingredients, and preservation methods).
With regard to processed food and alcohol, we especially make sure that responsible labeling isthoroughly addressed. For example, we have implemented measures to simplify and clarify the warnings
related to alcohol poisoning, alcoholism, and drinking under 20 years of age.

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

143

ESG Data(Society)Involvement in Industry Initiatives to Ensure the Safety of Alcohol Consumption

It is important to our business that we thoroughly address issues regarding the potential negative impacts ofalcoholic products such as alcoholism, alcohol poisoning, and drinking under 20 years of age. We also recognizethat these negative impacts are also especially important with regard to vulnerable groups. Therefore, oursubsidiaries that sell alcoholic products are members to industry organizations introduced below, in order toparticipate in knowledge sharing and be in tune with the latest market trends and best practices.
Tokyo Alcohol Wholesale Cooperative (Japanese only) (https://tosyukyo.or.jp/)

Tokyo Alcohol Wholesale Cooperative is an organization with corporate members that participate in thealcohol business, aims to elevate the level of social responsibility associated to acquiring an alcohol
permit. For example, the organization promotes legal compliance, engages in awareness raising of thenegative social impacts that must be managed across various product types, leads initiatives to maintaincultural traditions around alcohol, leads initiatives to enhance the current culture around appropriate
amounts of alcohol consumption, and supports companies in achieving sustainable business models.
Throughout these activities, the Tokyo Alcohol Wholesale Cooperative contributes to the health andwellbeing of the Japanese population, and promotes market competition that is fair and complies withhigh standards. The Cooperative highly values harmonious cooperation among member companies, andhas supported the sustained management of businesses throughout the industry and has subsequently
led the development of the industry in general. NIPPON ACCESS, INC. and ITOCHU SHOKUHIN Co., Ltd.,
ITOCHU subsidiaries, are members of this cooperative.

Contributive Initiatives to Alleviate Hunger and Poverty in Developing Countries

World Food Programme (WFP)

We have become a supporter contributor of the Japan Association for the World Food Programme. This is
an official support organization of the World Food Programme (WFP) – a United Nations organization toprovide food support. The aim of our participation is to eliminate world hunger and poverty problems as
much as possible. We support various activities
through this scheme.
In May 2022, we supported WFP’s child hunger
eradication campaign called “Walk the World.” Theannual global walk aims to raise awareness andfunds, as well as encourage action to end childhunger. This campaign was held in Yokohama,
Nagoya and Osaka. Approximately 200 employeesof ITOCHU Corporation and ITOCHU Group
companies, including their family members,
ITOCHU Employees Participating in the Walk the World Event
participated in the event.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Responsibilities to Customers

Society

Governance

Respect and Consideration for Human Rights

Eliminating the Food Imbalance between Developing Countries and Advanced Countries:
Table for Two

Table for Two is an international NPO that was founded by an affiliate of the World Economic Forum’s
Young Global Leaders. The organization aims to right the imbalance between the 1 billion people in theworld who suffer from undernutrition, and the 1 billion people in the world who suffer from obesity. The
organization does so by implementing a “calorie transfer” program, where the organization partners withcompanies, universities, restaurants, and organizations throughout the world to provide more nutritious
school meals to the former, and healthier meals to the latter.
Table for Two was founded in Japan in October 2007. Owing to ITOCHU’s long –standing commitment
to social contribution, we were one of the first companies in Japan to partner with Table for Two andimplement the calorie transfer program in our employee cafeteria at the Tokyo, Osaka, and Nagoya offices
the following April.
More specifically, whenever one of our employees chooses a healthier TFT meal from our cafeteria
menu, 20JPY is donated per meal. In addition, through a matching gift scheme, the company also donates
the same amount of money as the employee, making the total donation 40JPY per meal. The donation
contributes to providing nutritious school meals to children in developing countries.
Currently, our Tokyo Headquarters provides TFT meals.

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

144

ESG Data(Society)Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Sustainability in the Value Chain: Policy and Basic Concept

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

145

ESG Data(Society)Supply Chains

ITOCHU also gives consideration to human rights, labor and the environment in our
supply chain and business investments. We do this through sustainability
management tailored to each business activity. Through this, we have built asustainable value chain. This is leading to an improvement in the competitivenessand corporate value of the ITOCHU Group.

Notifying Suppliers of the Sustainability Action Guidelines for
Supply Chains

We believe it is important to acquire understanding and cooperation from our
suppliers for our procurement policies. Accordingly, we once again notified
approximately 4,000 suppliers engaged in ongoing business of the Sustainability
Action Guidelines for Supply Chains in FYE 2014. We also stipulated that new suppliersmust be notified of these guidelines in advance when engaging in business with us
from January 2015. We are promoting on our sustainability policy in this way.

Trading
Sustainability Action
Guidelines for
Supply Chains

Business
Investment

Sustainability Surveys

Sustainability Risk Assessments
by ProductNotiﬁcation of the Action Guidelines
to Suppliers
ESG Checklist for Investments
Group Company Fact-ﬁnding
Investigations

Sustainability Action Guidelines for Supply Chains

ITOCHU adopted the “Sustainability Action Guidelines for Supply Chains” to clarify and communicate thesustainability concerns we expect our suppliers to address. We will take the necessary measures tocommunicate and cooperate with our suppliers to ensure responsible management of the following items.
Suppliers shall comply as follows;
1. Abuse and Harassment

Respect the human rights of all of its employees and not engage in inhumane treatment, including
discrimination, harassment, abuse and corporal punishment.

2. Forced Labor and Child Labor

Prohibit forced labor or child labor including the employment of children under the minimum working age.

3. Discrimination

Prohibit employment discrimination based on characteristics including but not limited to gender, race, and religion.

4. Suitable Remuneration

Comply with statutory minimum wages, strive to exceed living wages, and not unjustly reduce wages.

5. Freedom of Association and Collective Bargaining

Respect the freedom of association and right to collective bargaining of its employees and ensure that labormanagement discussions on working conditions and environment are held, as appropriate.

6. Working Hours

Comply with statutory working hour restrictions. Properly manage its employees’ working hours, provide
holidays and paid leave as necessary and strictly prohibit excessive overtime work.

7. Safe and Healthy Working Environments

Take necessary measures to provide a safe, hygienic and healthy working environment to its employees.

8. Environment

Consider potential and existing impacts on local communities and the environment with regards to its businessactivities – such as impacts on nearby biodiverse habitats or pollution of the local ecosystem. Take the necessary
measures to reduce its consumption of energy, water and other natural resources, as well as its emissions ofgreenhouse gases and waste.

9. Anti-Corruption

Comply with all applicable local and international laws and regulations. Ensure its compliance with fair businesspractices and anti-corruption.

10. Information Disclosure

Disclose information on all items listed above in a timely and appropriate manner.

Established in April 2009
Revised in April 2022

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Sustainability in the Value Chain: Targets and Action Plan
Risks
●

SDGs
Targets

Textile Company

Ensure Stable
Procurement
and Supply

Respect andConsiderHuman Rights● Ensure Stable
Procurement
and Supply

ImpactClassification

Issues to Address

Business Area

Increase in demand for food safety, 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.

Commitment

Specific Approach

Supply Chain

Reducing ourenvironmental
burden in
manufacturing
processes

Supply Chain

Establishing a
supply chain
reflecting
consideration forhuman rights
and theenvironment

Textile products
in general

Supplying safe,
secure food

Overall
food-related
businesses

Textile products
in general

We will promote the building of value
chains starting from raw materials focusedon sustainable materials.

Food Safety

Promote the RENU project aiming to realize acircular economy in textile industry. Aim tofurther enhance and expand the handling ofsustainable materials.

Performance Indicators

Degree of Progress

Started the clothing collection service “WEAR TO FASHION”
along with investment to ECOMMIT Corporation. By
reusing the collected clothes and using some of them as
raw materials for “RENU”, the “RENU” project will further
promotes a circular economy.
● The Japan Sustainable Fashion Alliance made policy
proposals to Consumer Affairs Agency, Ministry of
Economy, Trade and Industry, and Ministry of theEnvironment for “zero fashion loss” and “carbon neutrality”
this fiscal year.

●

Supply Chain●

Supply Chain

Establishing a
supply chain
reflecting
consideration forhuman rights
and theenvironment

Responsible
Fisheries
Procurement

Provisions field

Fresh food field

Contribute to fostering of environmental awareness and reducing ourenvironmental burden by promoting the RENU project and further
enhancing and expanding the handling of sustainable materials.
● Work for the goal of “Zero Fashion Loss” and “Carbon Neutrality”
committed by Japan Sustainable Fashion Alliance to achieve by 2050.
●

We will promote dealings with companies
which respect human rights and which
engage in environmental management
throughout their entire supply chains.

Strive to understand at an early stage thehuman rights, social and environmental risks
in supply chains by continually conducting
surveys on major suppliers.

Conduct on-site visit surveys and questionnaires at more than 50 major
suppliers a year on an ongoing basis.

Textile Company conducted human rights due diligence in
FYE 2023. We screened domestic and overseas suppliers forall businesses, obtained questionnaire responses from 105
companies, and conducted on-site surveys at 4 companies.
As a result, it was confirmed that there were no specificmatters related to human rights issues. In the next fiscal
year’s supplier survey, we will continue to monitor thecompanies which do not yet have established internal
manuals or regulations.

We will select and concentrate on suppliers
to stably procure safe, secure food.

We will aim to strengthen the food safety
management structures in our suppliers. We will
do this by persons with certifications/
qualifications related to the Food Safety
Management System (FSMS) taking the central
role in enhancing supplier audits and making
requests for improvements.

Stably supply safe and secure food by enhancing the audits and guidance
for suppliers mainly by persons with certifications/qualifications related
to the Food Safety Management System (FSMS).

We are continuing to stably supply safe and secure food. We
are achieving this by continuing to enhance the audits andguidance for suppliers mainly by the persons withcertifications/qualifications related to the Food Safety
Management System (FSMS) or in-house qualification
holders related to factory audit.

We will promote procurement compliant with
supplier-specific codes of conduct in coffee
bean and cacao 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 apromotion and distribution system in Japanfor MSPO/ISPO in cooperation with domestic
industrial associations. The aim of this is toencourage the use of certified oil systems inproducing countries.
●

Respect andConsiderHuman Rights● Ensure Stable
Procurement
and Supply

146

ESG Data(Society)

Opportunities

Food Company

Respect andConsiderHuman Rights● Ensure Stable
Procurement
and Supply

Social Contribution Activities●●

Contribute to
Healthier andMore Affluent
Lifestyles

Independent Assurance Report●

Decline in credibility that would result from the occurrence of consumers and service users’ safety or health issues.
Materiality

Evaluation by Society

Sustainability in the Value Chain

We will develop a procurement structurecompliant with third-party bodycertification and supplier-specific codes ofconduct.

We will develop a procurement structurecompliant with third-party bodycertification and supplier-specific codes ofconduct.

Promote procurement in accordance with the
supplier’s own code of conduct in the country oforigin of the tuna.

Coffee beans: Promotion of procurement of products compliant with
supplier-specific codes of conduct or certified products based on our
procurement policy.
● Cacao beans: Promotion of procurement of products compliant with
supplier-specific codes of conduct (sustainable products) based on our
procurement policy.
● Palm oil: Procurement of palm oil based on our procurement policy.
Promotion of the disclosure of the set KPI indicators and supplierinformation.
●

2030
●
●
●

Coffee beans: Aim for a 50% switch to sustainable coffee beans.
Cacao beans: Aim for a 100% switch to sustainable coffee beans.
Aim for a 100% switch to sustainable palm oil.

Develop a tuna procurement policy and promote procurement of
products and certified products that comply with the policy.

Coffee beans: Regarding FYE 2023, our quantitative target
15% or more was achieved with the result of 28%, and its
target for FYE 2024 should be 20% or above. In addition,from June 2022, we partially started disclosing BtoB level
digital traceability information to our customers by using
Farmer Connect (Coffee traceability platform).
● Cacao beans (traceable products): achieved 66% (5,975MT
of traceable beans out of 9,025MT total.)● Palm oil: Check supplier’s sustainable palm oil sourcing
policies through regular surveys, and continue purchasing
based on our procurement policies. At the same time, we
continue to publicize the ratio of RSPO certified Palm Oils
and Traceable To Mill etc.
● Ratio of RSPO Certified Palm Products/Oleo chemicals
Palm Oils 24%
Oleo Chemical Products 65%
●

●
●

●
●

We have acquired the MSC fisheries certification for six
fishing vessels as of July 2022.
ITOCHU and fishing companies are currently applying thesecond MSC fisheries certification for 19 vessels in addition
to the above 1st MSC certification.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Sustainability in the Value Chain: Targets and Action Plan
Materiality

SDGs
Targets

ImpactClassification

Issues to Address

ForestUsing
sustainable
forest resources

General Products & Realty Company
Ensure Stable
Procurement
and Supply●●●

Business Area

Commitment

Specific Approach

Pulp
Woodchips
Wood products& materials

We deal in sustainable forest resources toreduce the impact on the environment andprevent the increase of greenhouse gases.

We handle certified or high-level management
confirmed materials.

We will strive to establish measures to
identify and avoid procuring rubber fromany suppliers who dispossess indigenous
people and develop High Conservation
Value (HCV) areas, High Carbon Stock(HCS) areas and peatland.
● We support or offer a training to improveyields and quality for natural rubber
producers, especially smallholders. We
also offer a risk-assessment educationthat includes modern slavery issue.

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

Performance Indicators

Ensure a 100% handling ratio of certified or high-level management
confirmed materials.

147

ESG Data(Society)

Degree of Progress

In FYE 2023, 100% of our Pulp, Wood Products & Materials
transactions and 97% of our Woodchips transactions werehandled as certified material or were intensely managed.

●

Respect andConsiderHuman Rights● Ensure Stable
Procurement
and Supply●

Forest● Supply
Chain●

Realization ofsustainablesupply of natural
rubberNatural Rubber

We will establish a traceability system to makeuncertain raw material procurement supply
chain transparent.
● We will achieve our commitment through thesustainability activity of our unique initiative,
named “PROJECT TREE (https://project-treenatural-rubber.com/)”.
●We aim to procure raw materials with traceability and sustainability
ensured in natural rubber processing business. (Aiming to achieve
100% traceability for the natural rubber raw materials which we procureby 2025 through an original block chain-based traceability system.)● We will increase the number of smallholders implementing
sustainability training and education, and contribute to achieving
sustainability in the natural rubber industry.
●In FYE 2023, traceability of the natural rubber raw
materials’ procurement reported by suppliers reached100%.
● Traceability of the natural rubber raw materials’
procurement using our system reached 4.5%.
● 4,128 of smallholders implemented sustainability training
and education.
●

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Sustainability in the Value Chain: Structures and Systems
Supply Chain

Against a backdrop of an expansion in ourbusiness areas, ITOCHU’s supply chain has
become wider and more complex. There is now afurther need for risk management concerning
human rights, labor and the environment in the
procurement of raw materials, producing areas,intermediate distribution and regions ofconsumption in addition to in the processes
directly managed by us. We pay particularattention to the on-site management of suppliers
who account for a relatively high share of ourpurchases. We view our consideration and senseof responsibility for these areas as matters of great
importance to be addressed with high priority.
ITOCHU has established the Sustainability
Action Guidelines for Supply Chains. We strive toprevent the occurrence of problems by conducting
investigations and reviews as below. If we discovera problem, we aim for improvement throughdialogue with the concerned supplier.

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ESG Data(Society)

Sustainability Checklist■ Figure of Supply Chain Management Promotion

Notiﬁcation of the Sustainability Action
Guidelines for Supply Chains
Sustainability Surveys

Investigation in Writing with a Sustainability Checklist

Encourage Improvement
if There is a Problem

On-site Investigations
andManagement Interview

The Sustainability Checklist is used to conduct supplier surveys on their
management of relevant sustainability risks. The Checklist is based on the seven
ISO26000 core topics (organizational governance, human rights, labor practices,
environment, fair business practices, consumer issues, community involvementand development) and is supplemented by department and product specificissues that we identified as relevant to our business and by extension our
suppliers (see table below for our list of supplementary topics). Furthermore,
based on opinions provided by external subject matter experts, we haveconstructed the survey questionnaire to consist of 19 core items centered aroundhuman rights and labor and environmental topics particularly associated to highsustainability risks – these items are our priority in supplier engagements.
■ Outline of Sustainability Survey

Applicable
SurveyCriteria

Main
Questions
Common to
All Companies

Sustainability Surveys

Since FYE 2009, we have set the seven core subjects of ISO26000 as essential survey items to realize asustainable procurement and understand the actual conditions of suppliers. Following on from that, eachcompany and applicable group company selects important suppliers based on certain guidelines (e.g.,high risk countries, products handled and monetary value handled). The sales representatives of thosecompanies and representatives from overseas subsidiaries and operating companies then visit those
suppliers to conduct interviews. They also conduct sustainability surveys in a questionnaire format(sustainability checklist).
We conduct supply chain sustainability survey information seminar for employees who procure
various products in a variety of countries ahead of the sustainability survey. We also provide training(buyer training) using the handbook to understand the Sustainability Action Guidelines for Supply Chainsand ESG perspective that must be kept in mind in communication with suppliers.

●●●

Supply Chain
Communication Handbook

High risk countries
Over a certain amount of money
Handling of certain product groups

1. Organizational governance: Establishment of a responsibility-taking structure and internal report system
2. Fair Operating Practices: Prevention of corruption, information management, prevention of
intellectual property right infringements and a sustainable procurement policy
3. Human rights: Risk assessments of human rights violations in business, abolition of child labor,
forced labor, harassment and discrimination, and payment of appropriate wages
4. Labor practices: Working hour management, health and safety management, and worker health
5. Environment: Waste and drainage treatment, handling of hazardous substances, and climatechange and biodiversity initiatives
6. Consumer and Local Communities: Quality control and traceability, Dialogue with consumers andneighboring residents
7. Certification: Environmental, quality, occupational management system■ Department and Product Specific Supplementary Sustainability Items

Procured Resource Type

Additional Survey Items

Paper, Wood-chips, Timber●

Agricultural Crops●

Meat Products●

Natural Marine Products
Apparel●●●●Palm Oil●

Coffee Beans

●

●

●

Implementation of forest conservation measures
Third-party certification

Management of traceability and management of chemical fertilizers andpesticides
Implementation of food safety measures
Management of traceability

Management of traceability and management of fisheries
Management chemical substanceManagement of traceability
Development of Grievance mechanisms

Management of traceability
Development of Grievance mechanisms

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Sustainability in the Value Chain: Structures and Systems
We have also prepared a handbook on communication with suppliers. We are using this to inform ouremployees of how to communicate with suppliers. At the same time, we have set up a check system thatenables employees to understand concretely the management situation in terms of the environment, humanrights, labor practices and corruption prevention in important suppliers to give advice on making
improvements. We will continue to conduct surveys and communicate with suppliers in the future to improve
the awareness of our employees and to seek understanding and implementation from our suppliers.

Example Excerpt from

Prohibition on
forced labor

the Handbook

Evaluation by Society

FYE 2021

Paper, Wood-chips, Timber, Timber
Products

FYE 2022

FYE 2023

66

37

38

Agricultural Crops

30

39

36

Natural Marine Products

33

29

28

11

Meat Products

5

Apparel9Palm Oil

Reference
It is necessary to check for forced labor in factories in Japan as well as in emerging nations. In recent years,
Japan’s Technical Intern Training Program (TITP) has been criticized by some from overseas. Accordingly,
please also check whether suppliers in Japan employ anyone from overseas and whether there areproblems in terms of working hours and wages.

149

ESG Data(Society)■ Results of Survey for Department and Product Specific Supplementary Sustainability Items (Number ofProcured Resource TypeForced labor means all labor forced on a person against his or her will. Examples include restrictions on an
employee’s freedom to leave his or her job until he or she repays a debt to the company or restricting an
employee’s freedom to leave his or her worksite under contract. Forced labor may be identified by asking
employees what their work shifts are like, whether they have break times and whether they are able to eat meals. It
may also be ascertained by observing their facial expressions. In a worst-case scenario, people are deprived of thefreedom to live their lives; they have to live in a dormitory on the premises of the company’s factory and are notallowed to go outside those premises. It is also effective to check whether there are employees who have come towork from areas far away or other countries in a company. Employers must be prohibited from taking the originalsof passports, IDs and work permits because this can lead to forced labor.

Social Contribution Activities

In addition to the supplier survey based on our Sustainability Checklist as introduced above, our Textile
Company conducted a domestic supplier survey in FYE 2020 on their management of technical interntrainees. For more information, please refer to Foreign Technical Intern Trainee Survey on Working
Environment (P133).
The Sustainability Management Division also visits and surveys important suppliers together withexternal experts as necessary.
Suppliers Surveyed)Companies must not force employees to work.

Independent Assurance Report

Sustainability in the Value Chain

21

Coffee Beans

13

14

5

105

18

19

8

7

■ Regional Breakdown of Number of Suppliers Surveyed

FYE 2023 Sustainability Surveys

We conducted surveys on a total of 320 companies in FYE 2023. We did not discover any serious problems
requiring an immediate response from those results. We have also checked the prompt improvement
measures and countermeasures taken by our business partners on problems raised as concerns at thetime of the survey. We will continue to seek understanding for the concept of ITOCHU from our business
partners and to communicate with them in the future.
■ Number of Suppliers SurveyedAll

FYE 2023

FYE 2022

FYE 2021

FYE 2020

FYE 2019

320

288

310

316

343

TextileCompany

105
65

57

50

49

Machinery
Company

9

9

9

15

13

Metals &MineralsCompany

20

20

21

20

19

Energy &Chemicals
Company

Food Company

31

107

31

29

39

39

104

104

102

110

General
ICT & Financial
Products &Business
Realty Company
Company

48

53

87

85

108

3

3

3

5

5

Europe・CIS

8Africa8

China
Middle
East

6

78

Japan

Asia
(except for
China)

24

170

Oceania

3

Latin
America23

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Sustainability in the Value Chain: Structures and Systems
Human Rights Audits in the Poultry Industry in Thailand
Inspection of the CPF Saraburi Factory

We conducted a human rights audit targeting foreign workers in the Saraburi Factory (a chicken meat processed
product factory) of Charoen Pokphand Foods Public Company Limited (CPF) — one of the main suppliers of theFood Company — accompanied by external auditors.
Recent years have seen an increase in cases where Japanese companies with Thai firms in their supply chain
have been warned by NGO groups about human rights violations of foreign workers in the livestock and fishingindustries in Thailand. We checked the factory for human rights risks in our supply chain through this audit.
This factory (slaughterhouse and food processing site) employs 3,400 Cambodians — equivalent toapproximately 50% of its workers. That makes them an important part of the factory’s labor force. We checked anumber of items in this audit. These included the extent of signage in Cambodian in facilities in the factory, acheck of the evacuation routes, the attendance management situation, and the personal storage situation of
passports and work permits. In addition, we also randomly chose some Cambodian employees actually working
there and interviewed them about their actual working conditions.
This audit did not find any violations of the human rights of foreign workers, and reaffirmed there is sufficientconsideration for human rights and the proactive approach CPF takes toward sustainability.

CPF has developed a safe

working environment for its
foreign workers.

CPF Saraburi Factory

Interview with a Cambodian Worker on
His Actual Working Conditions●

Those from CPF Who Cooperated with the
Audit

All Signs in Cambodian on Fire Prevention Advice Not to Over-stack Auxiliary
Facilities
Feedstock

Supplier CSR Audit Report: CP Foods, Saraburi (https://www.itochu.co.jp/en/csr/pdf/supplier_csr_audit_report_e.pdf) PDF

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

150

ESG Data(Society)

Regular Visits and Surveys of Food Processing Factories

The Food Company has been regularly visiting and surveying the food processing factories of its overseas
suppliers since FYE 2012 in regards to imported foods under the initiative of the Food Safety andCompliance Management Office. In FYE 2023, we surveyed 331 overseas suppliers and deployed
preventive measures to ensure safety in food transactions. We established a China Food Safety
Management Team in Beijing in January 2015. With this, we have set up a structure to be able to audit ourChinese suppliers. We conducted regular audits and follow-up audits on 42 companies in FYE 2023. Pleaserefer to Responsibilities to Customers (P137) to learn about our initiatives in detail.
Third-party Sustainability Audits on Ready-made Meal Manufacturers

Many foreign technical interns work at factories to which FamilyMart in our Group outsources the readymade meal manufacturing. They are an important part of the workforce.
We conducted a self-check questionnaire in 31 factories in FYE 2023. This questionnaire contained 200
items such as the following: Are you properly employed? Are the signs in your facility written in your native
language? Is employee health and safety and appropriate health management implemented? We
conducted online and on-site audits in 12 factories after the end of the semi-state of emergency COVID-19
measures in each area in view of the spread of COVID-19 and the importance of hygiene management. We
confirmed that there are no serious issues in each factory.
We will continue to expand the targets of questionnaires, audits and monitoring to build a sustainablesupply chain in the future.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Sustainability in the Value Chain: Structures and Systems

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

151

ESG Data(Society)Response to Suppliers in Violation of this Policy

When we have confirmed a case in which there has been a violation of the intent of our policy, we request corrective action from the applicable supplier. Together with this, we conduct an on-site investigation to give guidance andimprovement support as necessary.
In the FYE 2023 survey, the Sustainability Management Division carefully examined the answers from suppliers to key questions including the prohibition of child labor, the prohibition of forced labor and the payment of living
wages, and identified issues that are necessary to share and to reconfirm with suppliers. As a result of this survey, the Sustainability Management Division requested the business departments in charge of the supplier to reconfirm the
30 extracted issues. The department in charge explained and shared the reconfirmation of these issues with the suppliers, and conducted a detailed survey of the suppliers’ responses to them.
As a result, it was determined that the reconfirmed issues were being addressed by each supplier, and no requests for corrective actions were made to suppliers in FYE 2023. Through this survey, suppliers actively report issues andengage with the business department involved. When a problem is identified, suppliers are requested to take corrective actions, thereby encouraging them to make efforts to correct the issue.
If it is judged that correction is difficult even though we have made continuous requests for correction, we deal with this under a stance of reviewing our business with that supplier.
■ FYE 2023 Sustainability Survey Result

Questions

Key Questions

Request of Reconfirmation and Request of Corrective Action
Checking Contents

Clarifying Responsibilities for Sustainability

A Sustainability Manager is appointed and the system for promoting sustainability is clear.

Preventing Information Leakage

We have established rules and informed all of our employees of the rules.

Fair Operating Practices

Prohibition of Child Labor

Prohibition of Forced Labor
Prohibition of Harassment

Right to Organize and Bargain Collectively
Prohibition of Discrimination
Payment of Living Wage
Working Hours

Taking Holidays

Identifying Dangerous Areas and Tasks
Operating Procedures

Response to Labor Accidents
Hygienic Ancillary Facilities
Treatment of Waste

Treatment of Exhaust Air and Discharged Water

Procuring Raw Materials in a Responsible Manner

Development with Consideration for Local Residents

We have established a policy and monitor the status of compliance with the policy by a person in charge.
We have clearly defined a minimum age for employees in light of the standards of the International Labor Organization (ILO) and we check the selfreported age of each person before employing them.
We have a policy of not using forced labor and we do not take a passport or a master copy of ID before employing them.

We have specified in writing that we prohibit harassment, and we have informed all of our employees to that effect. We also check whether any harassment
actually occurs.
We recognize the right of employees to organize and bargain collectively and regularly offer them opportunities, at least once a year, to communicate withthe management regarding improving their labor environment.
No restrictions on recruitment by gender, race, religion, etc. in recruitment conditions or requests to agent companies.
We pay employees wages that exceed the legal minimum wage for each country.

We have a system for the appropriate management of working hours throughout the entire business establishment. The working hours do not exceed thelegal standards of the country.
All of our employees have at least one day off every week.

We acknowledge all labor accidents that have occurred, and we have a system under which we take measures to reduce their occurrence.
We have operating procedures of occupational health and safety, and we review their contents at least once a year.

We acknowledge all labor accidents that have occurred, and we have a system under which we take measures to reduce their occurrence.

All of our facilities are kept in a sanitary condition. No issues were identified in the inspections undertaken by the local authorities or the like in the last five
years or more.
We have a manual and apply the manual by reminding our employees of it at least once a year.

We control them by applying standards that are stricter than the requirements of the local regulations.

We ensure the traceability of more than 90% of raw materials, as far back as to the land of origin, and have a system in which we do not purchase them
until we confirm that they are not problematic environmentally or socially.
Grievance mechanism from local residents about noise, bad odor and environmental pollution of air and water, etc.
Total Number of Suppliers

Number of
Reconfirmation% (320 suppliers)

Number of
Corrective Action

8

2.5%

―

12

8

3

6

3

3.8%

2.5%

0.9%

1.9%

0.9%

―

―

―

―

―

4

1.3%

―

2

0.6%

―

3

4

2

3

3

2

3

1

7

8

1

30

0.9%

1.3%

0.6%

0.9%

0.9%

0.6%

0.9%

0.3%

2.2%

2.5%

0.3%
9.4%

―

―

―

―

―

―

―

―

―

―

―
―

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Sustainability in the Value Chain: Structures and Systems
Business Investment Management

The business activities of companies in which we invest must recognize and deal with their possible
impact on the environment and society. To that end, we strive to understand ESG risks and work on
preventative activities. We perform risk assessments on ESG in general through the utilization of achecklist and visits and surveys to formulate the necessary measures. These are continuously reviewed
and improved in the framework of our environmental management system.

ESG Risk Assessment for New Business Investment Projects

It is compulsory in new business investment projects for the division making the application to use the
ESG Checklist for Investments to evaluate the project in advance (perform due diligence). The division
making the application looks at whether policies and structures have been established from a perspectiveof ESG. It also looks for the risk of a significant adverse effect on the environment, violation of laws andordinances, and complaints from stakeholders. This checklist consists of 28 check items. These include
elements of the seven core subjects* in ISO26000 — the CSR international guidelines.
The division making the application also then refers to review opinions based on risk analysis fromrelevant functional divisions (management divisions). If there are any concerns, it requests additional due
diligence from external specialist organizations for matters requiring a professional point of view. The
project is then only undertaken upon confirming that there are no problems in those results.
* Organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, and community involvement anddevelopment

ESG Risk Assessment for the existing business (Group Company Fact-finding
Investigations)

We have continued to conduct on-site visits and surveys in group companies since 2001 to prevent
environmental pollution and risk assessment of labor practice. We have conducted investigations into a
total of 296 offices in the world as of the end of March 2023.
These investigations inspect the factory and warehouse facilities, the situation of drainage to rivers,
the environmental law and regulation compliance situation, labor practice, labor safety and human rights,
and communication with the local community in addition to holding a question and answer session withmanagement. We identify problems or demonstrate preventative measures. We then check to see whether
the situation has been corrected.

296 Offices in the WorldESG Risk Assessment Conducted as of the end of March 2023

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities152

ESG Data(Society)

Visit and Survey Report: DOLE PHILIPPINES Fact-finding Investigation

We visited and surveyed DOLE PHILIPPINES, a company which produces banana, pineapple and otherfresh fruits and manufactures canned fruit in the Philippines, in January 2020. We performed a detailed
check concerning the environment and labor safety related risk management and legal compliancesituation (e.g., soil pollution, waste, chemical substance management and safety measures) based on
the findings of external experts well-versed in the local laws and regulations. We confirmed that thesematters are being appropriately managed. In addition, we confirmed that the company is proactively
working on activities that contribute to society and the environment (e.g., biomass power generation on
its premises and donations to local schools).

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

Evaluation by Society

SDGs Bond (Sustainability Bond)

Independent Assurance Report

Sustainability in the Value Chain

Responsibilities to Customers

Social Contribution Activities

153

ESG Data(Society)

Sustainability in the Value Chain: Sustainable Procurement: Policies and Initiatives by Product Type
Procurement Policies for each productSustainable Procurement Policy on Natural Forests and Forest Resources (https://www.itochu.co.jp/en/csr/pdf/sustainable_procurement_policy_on_natural_forests_and_forest_resources.pdf?230615)
Natural Rubber Procurement Policy (https://www.itochu.co.jp/en/csr/pdf/natural_rubber_policy.pdf?230130)● Sustainable Palm Oil Procurement Policy (https://www.itochu.co.jp/en/csr/pdf/sustainable_palm_oil_procurement_policy.pdf?220620)● Cocoa Bean Procurement Policy (https://www.itochu.co.jp/en/csr/pdf/cocoa_beans_procurement_policy.pdf)● Coffee Bean Procurement Policy (https://www.itochu.co.jp/en/csr/pdf/coffee_beans_procurement_policy.pdf)● Raw Material Tuna Procurement Policy (https://www.itochu.co.jp/en/csr/pdf/raw_material_tuna_procurement_policy.pdf)● Commitment of Protecting Forests through Material Sourcing of MMCF (https://www.itochu.co.jp/en/csr/pdf/commitment_of_protecting_forests_2019.pdf)
●
●

PDF

PDF

PDF

PDF

PDF

PDF

PDF

Resource Sourcing that Requires Forest Conservation Initiatives

Management Approach

ITOCHU handles the following commodities, which require careful consideration of forest conservation
initiatives. In addition to the Sustainability Action Guidelines for Supply Chains, the following Procurement
Policy establishes our approach to protecting and preserving natural forests, and our commitment to thesustainable use of natural resources. The Policy is subject to an annual review at minimum, with revisions
made as necessary.
Commodities Relevant to Forest Conservation

Timber, timber products, raw materials for papermaking and paper products
Natural rubber● Palm oil● Woody biomass fuel●●Policy and Management Approach to the Preservation of Natural Forests and theSustainable Sourcing of Forest Resources

Sustainable Procurement Policy on Natural Forests and Forest Resources

Sustainable Procurement Policy on Natural Forests and Forest Resources (https://ｗww.itochu.co.jp/en/
csr/pdf/sustainable_procurement_policy_on_natural_forests_and_forest_resources.pdf?230615)
PDF

Every year, we report and receive approval on our targets and progress made to senior management. We
also share suggestions from stakeholders including NGOs, and if any issue is identified, we review ourmeasures and this Policy, as necessary.
Regarding palm oil, procurement based on this Policy is carried out by the Oil, Fats & Cacao
Department of the Food Division within the Food Company – this department is therefore also responsible
for the compliant procurement of palm oil.
Regarding timber, timber products, raw materials for papermaking and paper products, our Group
ESG Manager provides training to members who handle these products at least once a year. The training
aims to educate them on both domestic and international trends and issues related to forest resource
development and sustainable forest resource utilization.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities154

ESG Data(Society)

Sustainability in the Value Chain: Sustainable Procurement: Policies and Initiatives by Product Type
Wood, Wood Products*, Papermaking Raw Material, and Paper Products
ITOCHU is engaged in the procurement,
manufacturing, and distribution of materials forpulp and paper products, wood and wood
products and woodchips. In order to ensure theprotection of natural forests and sustainable useof forest resources, we aim for 100% procurement
by FYE 2026 of certified material or material forwhich advanced management can be verified.
* Including board products such as plywood, MDF, particle board, etc.

Since 2013, ITOCHU KENZAI has been working to create a system for certifying the traceability of plywood
manufactured in China. We asked the Japan Gas Appliances Inspection Association (JIA), a certification
body, to evaluate the effectiveness of this system in 2020. It said we have ensured traceability
appropriately in our main supply chain and are in compliance with the Law Concerning the Act on
Promoting Green Procurement and the Clean Wood Act. This effort ensures traceability and that timber ismanaged throughout all processes within the supply chain, from the logging areas to the veneer andplywood factories, by obtaining logging permits and other evidence, auditing factories, observing thelogging areas, and other means. With this, ITOCHU KENZAI was able to reliably ensure that no timber fromillegal logging is used in around 40% of the plywood manufactured in China for which forest certification
has not been obtained.

NGO Engagement (Responding to Identifications by an NGO about Illegal Logging and Human

Metsä Fibre (Certification by FSC® and PEFC)

ITOCHU has a stake in Metsä Fibre, a world-classsoftwood pulp manufacturer based out of Finland.
Metsä Fibre boasts an annual pulp production
capacity of around 3.2 million tons. They havetapped ITOCHU as the exclusive distributor for
their softwood pulp destined for Asian markets.
The company manufactures pulp from 100%
traceable forest resources of which 90% havereceived two certifications, namely the Forest
Stewardship Council (FSC) and the Program for
the Endorsement of Forest Certification Schemes(PEFC).
In Finland, pulpwood growth exceeds
consumption, which allows for a long-term, stablesupply of pulpwood. Through initiatives carriedout with excellent partners such as this, we will
promote the use of sustainable forest resources
and continue to promote further strengthening ofour business.

Certification of Traceability for Chinese TimberÄänekoski Plant commissioned in 2017

Rights Issues in Sarawak, Malaysia)
A non-governmental organization has pointed out
problems with illegal logging and human rights inSarawak, Malaysia. On a regular basis, we work toascertain the situation through interview surveys
of our supplier, the local government, the timberassociation, human rights lawyers, the humanrights committee, local residents, local nongovernmental organizations, forest consultants,
and others.
We have not found the problems pointed out
by the non-governmental organization throughthese surveys, but to eliminate concern, we haverepeatedly requested that the supplier engage in
specific initiatives. As a result, in recent years, thesupplier has actively worked to obtain forest
certification, and the number of certified forest
areas has increased. Changes have also occurredin the local government in Sarawak, including
reinforcement of regulations to eliminate illegal
logging and announcement of measures topromote forest certification.

Interview with Indigenous Community in Anap Muput Forest
Management

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Society

Occupational Safety and Health Management

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

155

ESG Data(Society)

Sustainability in the Value Chain: Sustainable Procurement: Policies and Initiatives by Product Type
Performance Regarding Forest Certification and Legal Compliance

Natural Rubber■ Performance of Timber and Timber Products*

ITOCHU evaluates its performance by classifying its timber and timber products into the following four
categories based on forest certification and legal compliance. Category (A) signifies the highest level ofsustainable procurement compliance, requiring FSC® certification and/or PEFC certification – more
specifically, it is defined as “(A) Timber handled by a certified forest supplier or timber approved by acertification body”.
* Including board products such as plywood, MDF, particle board, etc.
Classification Based on Legality

CertifiedMaterials or
AdvancedManagement
can beConfirmed

N/A

ForestCertification
SystemCertificationof Legality in
the Clean
Wood Act

ResultItem(A) T imber handled by a certified forest supplieror timber approved as a management
material by a certification body (acquired FSC
or PEFC certification)(B) T imber harvested in countries or regions
assessed as “Low Risk” based on the forest
certification system(C) T imber whose legality has been confirmed bydocuments proving that it was cut incompliance with the laws of the place oforigin*1(D) M aterials whose legality has been confirmed
by “additional measures”*2

TargetFYE 2021 FYE 2022 FYE 2023 FYE 2026

35%

35%

25%

43%

43%

62%

22%

22%

13%

0%

0%

0%

100%

0%

*1 Specifically, materials confirmed by an export license, certificate of origin, etc.
*2 Specifically, timber that was confirmed to be in compliance with laws by asking suppliers to provide a distribution channel■ Sustainable Procurement Performance of Raw Materials for Papermaking

All raw materials for papermaking such as chips and pulp handled by ITOCHU have acquired FSC or PEFC
certification as “materials handled by certified forest suppliers or materials approved as management
materials by a certification body”.
Classification Based on Legality

CertifiedMaterials or
AdvancedManagement canbe Confirmed* License No. FSC® C009841

ForestCertification
SystemItem

Timber handled by a certified
forest supplier or timber approved
as a management material by acertification body (acquired FSC or
PEFC certification)

ResultTargetFYE 2021

FYE 2022

FYE 2023

FYE 2026

Chips

100%

92%

97%

100%

Pulp

100%

100%

100%

100%

ITOCHU is engaged in the business of processing natural rubber. Natural rubber is a natural resource
indispensable in daily life. About 70% of the world’s consumption of natural rubber is used in tires. On theother hand, about 85% of the world’s production depends on small farmers found mainly in Thailand,
Indonesia and elsewhere in Southeast Asia. It is expected that the demand for natural rubber will grow in
the future due to global motorization. Against that background, it is essential to conduct businessactivities with even greater consideration due to issues such as deforestation and the infringement on therights and poverty of small farmers. In response, ITOCHU has joined as a founding member of the Global
Platform for Sustainable Natural Rubber (GPSNR), which was established in October 2018. We agree on the
12 principles stipulated by GPSNR and are cooperating in the development and operation of the Platform’s
standards.
Moreover, we are utilizing our value chain to promote the PROJECT TREE initiative aimed at achieving
the traceability and sustainability of natural rubber. We will contribute to sustainability over the entire
natural rubber industry through this project.
●

Natural Rubber Procurement Policy (https://www.itochu.co.jp/en/csr/pdf/natural_rubber_policy.pdf?230130) PDF

Participation in the GPSNR

In October 2018, ITOCHU joined the new Global Platform for Sustainable Natural Rubber as the only
Japanese trading company founding member. This organization was established by car manufacturers,
tire manufacturers and natural rubber processing companies involved in the natural rubber industry. Its
members work together throughout their supply chain to establish traceability and achieve higher levelsof sustainability.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

156

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

ESG Data(Society)

Sustainability in the Value Chain: Sustainable Procurement: Policies and Initiatives by Product TypePROJECT TREE Initiative

We are rolling out the PROJECT TREE initiative aimed at achieving the traceability and sustainability of natural rubber. We are utilizing thevalue chain of the PT. Aneka Bumi Pratama (ABP) natural rubber processing company and the EUROPEAN TYRE ENTERPRISE LIMITED tire
wholesale and retail company in whom we invest to achieve this.
ITOCHU Techno-Solutions Corporation developed the traceability system utilizing the blockchain in this project. It is the first suchattempt for traceability in the natural rubber industry.
The transaction details, date and time, and location information for the natural rubber raw materials procured by ABP will berecorded on the blockchain by a smartphone app in this system. That information will then be displayed on a map. After that, ABP willprocess the natural rubber in its factories and sell it to tire manufacturers as natural rubber with place of origin information. We will
implement a mechanism to pay compensation to raw material suppliers from a part of the sales of the certified tires produced by thosetire manufacturers. We will then distribute agricultural tools and fertilizers to small farmers who do not have smartphones or bankaccounts. At the same time, we will conduct risk assessments including on the issue of modern slavery and provide training to improve
productivity. In addition, we will gradually implement improvement plans based on the results of risk assessments on the supply chain
while receiving consulting and auditing from the Proforest and SNV international NGOs. This project is a concept we will expand to all
stakeholders involved in natural rubber such as natural rubber processing companies in the same industry, tire wholesalers, retailers andautomobile manufacturers, and consumers. We will aim to gradually roll out the approved tire products around the world starting withthe highly-environmental conscious European region. Moreover, we also expect it will contribute to GPSNR policies and target
achievement.
ITOCHU aims for sustainable growth based on our corporate philosophy of “Sampo-yoshi” (good for the buyer, good for the seller andgood for society). We are also contributing to the Sustainable Development Goals (SDGs) in 2030 adopted by the United Nations.
●●●■ Project Image Diagram

RAW MATERIAL SUPPLIERS

RetailPROJECT TREE
supporting products andrecord sales

Release: ITOCHU Announces a Blockchain PoC for Traceability (https://www.itochu.co.jp/en/news/press/2019/190201.html)

Performance Data on Natural Rubber

Category

Natural Rubber Traceability
Capacity building, Sustainability training initiatives to small farmers

TYRE MANUFACTURES,RETAILERSFYE 2023

Target (FYE 2026)

4.5%

100%

4,128people―

natural rubber is collected toareas tracked by GPS and is
5km apart from theconservation area

ITOCHU Traceability
System Database
secured by BLOCKCHAIN

Process

PROJECT TREE natural
rubber ready for sale

SupplyRelease: ITOCHU Announces the Commencement of Commercialization of PROJECT TREE, the First Blockchain-based Natural Rubber Traceability and Sustainability Project in the World(https://www.itochu.co.jp/en/news/press/2021/211201.html)
PROJECT TREE website (https://project-tree-natural-rubber.com/)

Collect

Rewardsmallholders, collectors anddealers with; ﬁnancial
incentives, training, education,
tools and equipment

PROJECT TREE natural rubber toManufactures andtrack and trace volumes

PROCESSINGCOMPANIES

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Society

Occupational Safety and Health Management

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

157

ESG Data(Society)

Sustainability in the Value Chain: Sustainable Procurement: Policies and Initiatives by Product Type
Membership to the Roundtable on Sustainable Palm Oil (RSPO)

Palm Oil

Palm oil has been associated with environmental destruction and human rights violations in relation to
the development and production of plantations. ITOCHU is extensively engaged in the trade anddistribution of palm oil but is not involved in the palm plantation business. However, based on our role indistribution, we recognize the importance of paying particular attention to this issue. For example, we area member of the Roundtable on Palm Oil (RSPO) and are working to fulfill our corporate social
responsibility by taking responsibility and standing as a bridge between producers and consumers. We arealso cooperating in the spread of certified oil other than RSPO, such as MSPO*1 and ISPO*2, in cooperation
with industry groups.
In addition to having formulated the Sustainable Palm Oil Procurement Policy, we aim to preserve
natural forests and ensure sustainable consumption of forest resources by promoting transparency in the
supply chain and strengthening the sustainable palm oil procurement system.
*1 Malaysian Sustainable Palm Oil*2 Indonesian Sustainable Palm Oil●

Sustainable Palm Oil Procurement Policy (https://www.itochu.co.jp/en/csr/pdf/sustainable_palm_oil_procurement_policy.pdf)

PDF

Establishing Traceability

ITOCHU inspected our supply chain as a way to fulfil our corporate social responsibility. In doing so, we
identified issues and solved them with the aim to achieve sustainable procurement and supply of palm oil.
That allowed us to achieve one of our goals of achieving 100% traceability at the mill level by 2021. Goingforward, we will aim to achieve our other goal of switching all the palm oil we procure to sustainable palm oil*1
by 2030. In particular, we aim to base our procurement on the NDPE principle (No Deforestation, No Peat, No
Exploitation)*2.

We joined the Roundtable on Sustainable Palm Oil (RSPO) in 2006, and respect the principles andstandards set by the RSPO (such as the Principles and Criteria for the Production of Palm Oil) to promotetransparency in the supply chain. We are working to strengthen the sustainable palm oil procurement
system by expanding transactions with suppliers of raw material that have improved their traceability.
We confirm priority items and utilize them in procurement through sustainable procurement surveys,
including on-site examinations, and direct engagement with suppliers.
In the course of our operations, we regularly review our procurement policy in cooperation withstakeholders such as business partners and experts. Information regarding this matter will be disclosed
through the ESG Report, the Sustainability Action Plan, and the Annual Communication of Progress(ACOP).
●●●RSPO Supply Chain Certificate (https://www.itochu.co.jp/en/csr/pdf/rspo_scc_certification_2023.pdf) PDF
Sustainability Action Plans (P24)

The Annual Communication of Progress (ACOP) (https://www.rspo.org/members/63/itochu-corporation)

Please also refer to the disclosed information below regarding ITOCHU’s initiatives.
●●●

Initiatives for sustainable procurement of palm oil (https://www.itochu.co.jp/en/csr/pdf/fact_sheet_2023.pdf) PDF
Refinery list (https://www.itochu.co.jp/en/csr/pdf/refinery_list_2023.pdf) PDF
Mill list (https://www.itochu.co.jp/en/csr/pdf/mill_list_2023.pdf) PDF

Performance Data on Sustainable Palm Oil Procurement

Our goal is to transition all procured palm oil to sustainable palm oil by 2030. The following table shows
the current progress of our initiatives and our targets.

*1 Sustainable palm oil: palm oil supplied from supply chains in compliance with the NDPE Policy according to the RSPO, MSPO and ISPO or standards

equivalent to them
*2 No Deforestation, No Peat, No Exploitation (NDPE): zero deforestation, zero peatland development, zero exploitation

Category

Volume of Handled Palm Oil<Main Supplier>
RSPO Members

Result2020 (Jan-Dec)

340,000mt

Malaysia

Indonesia

10/10 (100%)

Target2021 (Jan-Dec)

307,000mt

Malaysia

Indonesia

10/10 (100%)

2022 (Jan-Dec)

352,000mt

Malaysia

Indonesia
100%

10/10 (100%)

10/10 (100%)

10/10 (100%)

RSPO Certified Sustainable Palm Oil

12.68%

16.89%

19.24%

Traceable to the Mills

99.90%

100%

100%<Certified Sustainable Palm Oil>
<Traceability>

Malaysia

Indonesia

10/10 (100%)

Suppliers Under NDPE Policy

2030

100%

100%

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

158

ESG Data(Society)

Sustainability in the Value Chain: Sustainable Procurement: Policies and Initiatives by Product Type
Cocoa Bean and Coffee Bean Trading Supply Chain

Woody Biomass Fuel

ITOCHU procures its Woody Biomass Fuels that have been legally accepted by third-party certifications,such as PEFC and FSC, based on the Feed-in Tariff (FIT) program for renewable energy, which started inJuly 2012 by the Ministry of Economy, Trade and Industry (METI).
In addition to the third party certifications, ITOCHU conducts its own audit by retaining an additional
certification body to ensure the validity and traceability of its suppliers, if needed.
In the event that a violation to our procurement policy is identified, ITOCHU immediately suspends
any transaction with such supplier and requires to take corrective actions, along with our guidance andsupport to the supplier.
Performance Data on Woody Biomass Fuel
Classification of Legality Basis

Certified wood or highly
controlled wood Forest

Forestcertification

Item

Lumber handled by certified forest suppliers or timberrecognized as controlled timber by a certification body.
(FSC or PEFC certified)

FYE 2023

100%* License No. FSC® SCS-COC-000320, PEFC® CEF0610 (ITOCHU’s certification number)Food

Cocoa Beans and Coffee Beans

ITOCHU handles cocoa beans and coffee beans as the raw ingredients of chocolate and coffee products.
We operate processing/exporting business for coffee beans with UNEX (Guatemala), S.A. serving as our
subsidiary. The suitable areas to growing cocoa beans and coffee beans are concentrated near theequator. The impact on human rights and the natural environment by plantation development andproduction has been identified. Accordingly, we have established procurement policies to fulfill our
corporate social responsibility. Under these policies, we are promoting sustainable procurement inconsideration of the environment and human rights.
●●

Cocoa Bean Procurement Policy (https://www.itochu.co.jp/en/csr/pdf/cocoa_beans_procurement_policy.pdf) PDF

Coffee Bean Procurement Policy (https://www.itochu.co.jp/en/csr/pdf/coffee_beans_procurement_policy.pdf) PDF

Cocoa Beans

Producer

Coffee Beans

Transportation
by Truck

Exporter

ExportManufacturer(Processed into
Chocolate)Distribution

Consumer

Distribution

Consumer

COFFEE

ProducerTransportation
by Truck

Processor andExporter

ExportManufacturer
and Domestic
Wholesaler

Overview of Cocoa Bean and Coffee Bean Dealings
Contents

Cocoa Beans

Overview of Dealings

Trading

Scope

ITOCHU Corporation and subsidiaries

Main Suppliers

Ghana and Latin America

Examples of Activities

Sustainable cocoa bean sourcing program(P158)

Main Sales Destinations

Japan and the U.S.

Coffee Beans

Trading and processing/exporting

ITOCHU Corporation and subsidiaries(Including UNEX (Guatemala), S.A)
Brazil, Vietnam and Guatemala, etc.

Japan, Europe, North America and Asia

Sustainable coffee bean sourcing (P158)
Activities with UNEX (Guatemala), S.A (P159)
Project with Farmer Connect SA (P159)

Sustainable Cocoa Bean Sourcing Program

ITOCHU started handling sustainable cocoa beans in 2007. We will continue to further enhance thetraceability of cocoa beans and work on strengthening our handling of cocoa beans to help withconsideration for human rights and the environment, the eradication of poverty among farmers, and an
improvement in living standards.
Sustainable Coffee Bean Sourcing Program

ITOCHU has handled sustainable coffee beans over more than 15 years. In particular, we are working tostrengthen our handling of sustainable certified coffee beans authenticated by organizations (e.g., UTZ,
Rainforest Alliance and 4C) and defined by customers.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

159

ESG Data(Society)

Sustainability in the Value Chain: Sustainable Procurement: Policies and Initiatives by Product Type
Activities of UNEX (Guatemala), S.A in Coffee Producing Area

ITOCHU is working on the following activities through UNEX (Guatemala), S.A – a subsidiary which collects
coffee cargo in Guatemala.
Item

Content

Technical Support for
Small Farmers

Providing agricultural technology (e.g., methods of utilizing shaded trees and soil
management) to improve the productivity of small farmers

Support for Childcare
Facility Management

Providing education, food and drink to the children of workers engaged in harvesting toprevent child labor

Support for Mobile
Hospitals

Support for Female
Producers

Providing medical care to coffee producers and their families living in mountainous areas
where there are no hospital nearby

Conducting initiatives with a female-centered coffee producer group (COMAL) andproviding agricultural guidance from the ethos of supporting women and gender equality

Project with Farmer Connect SA

ITOCHU started project with Farmer Connect SA, a company aiming to build an IT platform to be able tobrowse coffee traceability information, in September 2019. We invested in this company in March 2021.
This is allowing us to contribute to the growth of the coffee industry together with many companies
responsible for coffee production, distribution and sales, and consumers.
Item

Strengthening Supply
Chain Traceability

Creating a System forConsumers andCompanies to Support
Producers Directly

Content

We record and store traceability information – from coffee bean cultivation, producing
area, collecting point, blending and roasting to customers – with blockchain technology.
Consumers and companies pay tips directly to coffee producers through the Thank My
Farmer app on the Web. This enables them to support for sustainable coffee production
projects.

Performance Data on Sustainable Coffee Bean Procurement
FYE 2022

Sustainable Coffee Bean36%

FYE 2023

29%

Dairy Products

ITOCHU stably procures and imports milk ingredients, cheeses and other dairy products from overseas
dairy product suppliers with a production and quality control structure. The dairy product production andsupply structure in Japan has been built centered on Hokkaido as part of agricultural policy. However, in
response to the increase in consumption of dairy products in Japan in recent years, import opportunities
have been steadily increasing under trade liberalization agreements (e.g., the TPP and EPA).
Producers’ organizations and companies in major dairy product producing countries (New Zealand,
Australia, Europe, North America and South America) have gradually started initiatives to build aproduction structure enabling sustainable growth. We will strive to understand the initiatives of major
production areas and suppliers through regular visits and surveys by sales representatives and work tofurther build relationships. This is so that we can continue to deliver safe and secure dairy products in the
future.
Ensuring the Safety of Raw Milk

Ensuring the safety of raw milk in dairy product supply chains is paramount. We have a structure in which
raw milk milked and collected by dairy farmers and then brought to dairy product factories is subject toantibiotic contamination tests at the acceptance stage. This means we only use raw milk confirmed to besafe.
In addition, manufactured cheese, butter and skim milk powder (excluding powdered milk) are
individually packed in manufacturing factories mainly in 10 kg or 20 kg cardboard boxes for cheese andbutter, and 25 kg paper bags for skim milk powder. The manufacturing date is then printed on these.
Accordingly, it is possible to trace products up to the date of their production date in the manufacturing
factory.
The standards for hormones and antibiotics used to breed beef and dairy cattle are established by therelevant organizations in each country. Each dairy product manufacturer then sets its own selfmanagement regulations based on those standards.
Initiatives for the Sustainability of Ranches

FYE 2031 Target

50%

An example of these initiatives is that basically dairy cows are raised by grazing in New Zealand – animportant supply base for ITOCHU. The cows are bred while changing their grazing land regularly so thatranches do not fall into ruin. We are promoting such initiatives to help improve productivity.
Moreover, we have started the product development and distribution of grass-fed butter produced
from beef and dairy cows raised eating only grass in New Zealand. Regular butter is made with the milk of
cows raised mainly on grains. In contrast to this, grass-fed butter is made with the milk of cows raisedeating only grass or grass of at least a certain ratio. This has the advantage of reducing the financial burden
on dairy farmers.

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

160

ESG Data(Society)

Sustainability in the Value Chain: Sustainable Procurement: Policies and Initiatives by Product Type
Promotion of Animal Welfare at Group Companies and Suppliers

Meat

The ITOCHU Group believes that it is important for its meat products to be kept in a comfortableenvironment and to reduce stress and disease in livestock. Based on the belief that these animal welfare
initiatives will lead to improved productivity and safer livestock products, we are working with meatrelated Group companies and suppliers to promote initiatives for the humane handling of livestock inaccordance with local laws.

Ensuring Traceability at HyLife Group Holdings
HyLife is capable of supply chain management
and coordination in-house because it performs
integrated production that includes pig farms,
mixed feed factories and pork processing. The
company has utilized this production structure to
realize a stable supply of safe, high-quality andtraceable products with peace of mind. In
addition, it is possible to feedback the individual
needs of customers to pig farms through suchintegrated production. The firm has established a
specialty program customized for Japan – a
program that has received a high appraisal in themarket. Currently, it is one of the largest exportersof chilled pork to Japan in North America.

■ Initiatives by Meat Supplier

Respecting Animals is a HyLife Core Value and the obligation and responsibility of all employees.
HyLife provides optimal environmental conditions for the animals in our care providing climate
controlled housing, nutritionally balanced diets and veterinary animal health oversight.
All employees receive comprehensive training in the proper care and handling of animals and farms
are operated in accordance with the Canadian Code of Practice for the Care & Handling of Pigs and are
certified under the Canadian Quality Assurance Program.

Pork Processing Process■ Initiatives at Group Companies

Initiative Participation

Companies in wide-ranging lines of businesses – from producers to retailers – are participating in an
initiative called the Global Round Table for Sustainable Beef (GRSB) with the aim of sustainable beef
production. ITOCHU has built business relationships with multiple companies participating in the GRSB.
We are exchanging information with them on the latest trends.
Performance Data on Traceability

The major premise for ITOCHU is to be able to thoroughly trace the products we deliver to our customers
back to their producers above all else while considering the safety and peace of mind of food as ournumber one priority.
We have a 100% “traceback” system for all meat (beef, pork, chicken) suppliers (mainly overseas)
allowing us to trace back products up to their production stage.

100

Traceback System% of Suppliers

Content

Volume of Handled Meat

2020

About 150,000 tons

Performance2021

About 150,000 tons

2022

About 130,000 tons

In addition, Prima Meat Packers, Ltd., one of our Group companies, is constructing a new state-of-the-art
farm and partially started operation in 2023. The second phase of construction is scheduled forcompletion in 2026. Prima announced that it will adopt free stalls and other animal welfare measures.
For more details, please refer to “Addressing animal welfare (https://ｗww.primaham.co.jp/en/
sustainability/materiality/materiality6.html)”

Marine Products

We mainly handle skipjack and yellowfin as marine products. In Indonesia, we operate the PT. Aneka Tuna
Indonesia (ATI) canned tuna factory in a joint venture with partners. We have established voluntary
management regulations for tuna. We thoroughly stick to our policy of only procuring skipjack andyellowfin that has been appropriately managed by fishing organizations.
●

Raw Material Tuna Procurement Policy (https://www.itochu.co.jp/en/csr/pdf/raw_material_tuna_procurement_policy.pdf) PDF

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

Respect and Consideration for Human Rights

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

161

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

ESG Data(Society)

Sustainability in the Value Chain: Sustainable Procurement: Policies and Initiatives by Product Type
Targets

The acquisition of MSC*1 certification is limited among fishermen for the highly migratory fish of skipjack
and yellowfin at present. Under these circumstances, we are also encouraging fishermen to acquire thiscertification in the trade of skipjack and yellowfin for the raw ingredients in canned food products. We aim
to increase MSC raw ingredients to 15,000 tons a year by FYE 2026.
The quantity of pole and line fished*2 raw ingredients in ATI was increased from 8,000 tons in FYE 2014
to 13,000 tons in FYE 2023 (25% of the total quantity handled by ATI). It has become one of the few canned
tuna factories in the world that uses lots of pole and line fished raw ingredients. We will continue to work
to secure, maintain and increase pole and line fished raw ingredients.
*1 The Marine Stewardship Council (MSC) is an international NPO established in 1997 to work on spreading sustainable fishing. Its headquarters are located in
London, England.

*2 Pole and line fishing is a method of fishing by catching one fish at a time. It is a sustainable fishing method that does not involve the catch of large quantities
of fish at one time. It is said that it is an environmentally friendly fishing method because it is also possible to avoid the bycatch of non-targeted fish.

Sustainability Surveys for Marine Resource Suppliers to Ensure Responsible Procurement Practices
We regularly visit and survey our suppliers. This is so that we responsibly procure marine resources for all
the marine products we handle. We also promote cooperation with various fishing organizations. Every
year, those in charge of sales visit and survey 28 suppliers applicable to our internal selection criteria incooperation with our Food Safety and Compliance Management Office. This is for the regular visits andsurveys on our suppliers to responsibly procure marine resources. We also engage in business after
confirming that suppliers are appropriate from a viewpoint of ESG.
Regarding bonito tuna, which we handle in vast quantities, in September 2017 we established avoluntary management rule called “Tuna Handling Management Rules”, which prohibits procurementfrom IUU fishing (concerning illegal fishing: “Illegal, Unreported and Unregulated”). We only procure andpurchase marine products whose origin is clearly traceable to fisheries that are properly managed by theWestern & Central Pacific Fisheries Commission (WCPFC).

Certifications and External Stakeholder and Initiative Participation

We acquired distributor certification and chain of custody certificate (CoC)*1 certification from the Marine
Stewardship Council (MSC) in March 2018.
We joined the Organization for the Promotion of Responsible Tuna Fisheries (OPRT) in 2012 in the tuna
business. This is an organization that was established for the sustainable use of tuna resources. We are
now promoting initiatives that comply with our aforementioned voluntary management regulations.
ATI is strengthening its handling of pole and line fished raw material– considered to be the mostenvironmentally friendly skipjack and yellowfin fishing method. The need for products made with poleand line fished raw material is growing every year in markets with a high interest in sustainability (e.g., theU.K. and Australia) for the canned tuna market as well. It is our policy to strengthen our handling of poleand line fished products manufactured by ATI.
ATI joined the Indonesian Association of Pole& Line and Hand Line in 2014. It is offering its
cooperation such as by providing data. This data isused in the Fishery Improvement Program (FIP)*2.
ATI is also cooperating for the acquisition of MSC
in Indonesia. Moreover, it joined an internationalorganization called the International Seafood
Sustainability Foundation (ISSF)*3 in 2016. The
firm is offering its cooperation such as byproviding information in the same way as it doeswith the Indonesian Association of Pole & Line andPole and Line Fishing
Hand Line.
*1 C hain of custody certificate (CoC) is certification for processors and distributors. This is to ensure the traceability of MSC certified marine products and otherproducts in the management of processing and distribution processes specified by MSC.

*2 T he Fishery Improvement Program (FIP) is a project in which small fishermen finding it difficult to acquire MSC certification and market stakeholders
cooperate and work together aiming for sustainable fishing under the goal of future MSC acquisition with MSC compliant fishing methods.

*3 T he International Seafood Sustainability Foundation (ISSF) is an organization running under the aim of sustainable skipjack and yellowfin fishing. It was
launched in response to an appeal by major canned tuna operators in 2009.

■ Performance Data Related to Certification

Item

Fisheries Raw
Materials
Handled by
ITOCHUMSC and/or
COC Certified
Fisheries Raw
Materials

Bonito Tunafor Canned
Tuna

ATI FishingLine

15,000MSC/COC Quantity
Percentage of
MSC/COC Certified
Raw Materials
ATI Single Fishing
Raw Material
Quantity

MSC/COC Quantity Target in FYE2026

t

FYE 2021

FYE 2022

FYE 2023

Target (FYE 2026)

2,600 tons

6,500 tons

7,500 tons

15,000 tons

1.4%

4%

4%

8%

18,800 tons

19,300 tons

13,000 tons

21,000 tons

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

Governance

SDGs Bond (Sustainability Bond)

Respect and Consideration for Human Rights

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

162

ESG Data(Society)

Sustainability in the Value Chain: Sustainable Procurement: Policies and Initiatives by Product Type
Textile Raw Materials

In recent years, the trend for sustainability has been gradually penetrating the fashion market. For
example, global fashion brands have declared that they will switch to using environmentally friendly
materials (e.g., organic cotton, recycled polyester etc.) for the materials they procure as an initiative todevelop the labor environment in the supply chain and to deal with the disposal of clothing and otherproblems. This issue is particularly important to us given that ITOCHU was founded as a textile raw
materials trading business, which remains a cornerstone of our company to this day as a part of theFashion Apparel Division. Therefore, in our textile business we have made it our policy to shift our raw
materials portfolio to environmentally friendly resources and build traceability capacity from raw materials
procurement to distribution to manufacturers. Our target for this policy will be to make 50% of the textile
raw materials, handled by the section in charge*, traceable and environmentally friendly by 2025. At thesame time, we are aiming to switch 80% of polyester to recycled polyester.
* The textile raw material section

Organic Cotton Procurement in India■ Traceability in Organic Cotton Procurement in India

Cotton Farmer(India)C

CottonY

Yarn

Ginning Factory(India)G

GOTS certiﬁcation

CG

Spinning
FactoryY

G

Weaving/
Knitting Factory

When we procure organic cotton in India, we first purchase raw organic cotton that comes with acertificate from a ginning (work to separate the seeds and fibers after harvesting raw cotton) factory inIndia that has acquired GOTS certification. We deliver that raw organic cotton to spinning factories thathave acquired GOTS certification in India or Asia. Finally, we purchase the yarn spun in those spinning
factories and sell it to weaving/knitting factories in Japan and overseas. Furthermore, with regards to thetraceability of organic cotton, we have implemented measures to leveraging our vast network andexperiences to facilitate our cotton farmers in India to shift toward organic farming methods and tosupport certification acquirements (such as the GOTS certification*) at our cotton mills and ginning
factories. Given these initiatives, we have achieved 100% traceability in the organic cotton and the cottonin the 3 year transition period to the organic cotton.
* GOTS certification: a set of comprehensive standards that certifies products made from organic textile. The standards cover the following items: use ofcertified raw materials and their traceability, control systems to limit or prohibit designated chemical inputs (dyes and auxiliaries) and accessories, separationand identification systems, environmental management, contamination and residue testing, and social criteria (possible sources of information: interview
with management, confidential interviews with workers, personnel documents, physical on-site inspection, unions/stakeholders).

100

Traceable Cotton%

Expansion of Environmentally Friendly Materials

Our Apparel Division has been working on branding, commercializing and proposing natural materials forseveral years. In response to the recent momentum for conversion to sustainable materials in the global
apparel market, we are also working to expand our use of environmentally-friendly materials.
We launched the RENU Project with the aim of realizing a recycling-oriented society in 2019. The first
product in that project came from us developing recycled polyester.
We started the trial deployment of a cellulose material derived from coniferous forests called Kuura in
March 2021. This is a new material we have jointly developed with a major company in the Finnish forest
industry called the Metsa Group. Using renewable energy in the manufacturing factory and using a special
solvent in the manufacturing process for this product has helped us to reduce our burden on theenvironment. In addition, we have established traceability that even includes the timber for this. These
efforts have led to this product attracting attention as an innovative sustainable material.
We will continue to accelerate the pace of our cooperation with global companies toward our increasinguse of environmentally friendly materials in the future. At the same time, we will work to acquire certificationin the spinning, weaving/knitting and sewing processes and to expand internal cross-company businesstoward establishing branding and traceability up to commercialization – our medium term target.
●●●

Commitment of Protecting Forests through Material Sourcing of MMCF
(https://www.itochu.co.jp/en/csr/pdf/commitment_of_protecting_forests_2019.pdf) PDF
RENU Project (P63)

Participation to Textile Exchange “the 2025 Recycled Polyester Challenge” (https://textileexchange.org/2025-recycled-polyester-challenge/)

Performance Data on Organic Cotton Procurement

All organic cotton is GOTS certified and traceable.
Item

Organic Cotton Handled (1,000 kg)
Percentage of Cotton Trade

Traceability of Organic Cotton

GOTS Certification of Organic Cotton

FYE 2021

1,252

63%

100%

100%

FYE 2022

1,790

86%

100%
100%

FYE 2023

800

30%

100%

100%

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Social Contribution Activities

Society

Governance

Respect and Consideration for Human Rights

Policy and Basic Concept

Viewing issues from a global perspective, we always remain aware of the role to play as a good corporate
citizen, see that our activities are at harmony with both local communities and the international
community, and contribute to the rise of societies offering a higher quality of life. In order to realize this,we have identified three areas of focus in our basic activity guidelines, and are advancing social
contribution activities in partnership with Group companies. These activities also contribute to theachievement of SDGs (Sustainable Development Goals), which were established by the UN in 2015.

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Evaluation by Society

Independent Assurance Report

Sustainability in the Value Chain

Social Contribution Activities

Initiatives: Growth of Future Generations
ITOCHU Foundation

ITOCHU has promoted social contribution activities aiming for the sound development of young people since setting up
the ITOCHU Foundation (which became a public interest incorporated foundation in 2012) in 1974. The foundation
engages in activities for contributing to the healthy growth of children, such as two current major projects: subsidizing
development of children’s literature collections, and promoting development of an e-book library.
●●

Basic Activity Guidelines on Social Contribution

ITOCHU’s corporate philosophy of “Sampo-yoshi” is said to have originated with economic activities being allowed as
good for society because Ohmi merchants contributed to the local economy in the places they visited in addition to
being good for the seller and good for the buyer. Based on “Sampo-yoshi” the ITOCHU Group is aiming for mutual
development in cooperation with regional society and communities. We are doing this by contributing to regional
economic development with our business activities and engaging in social contribution activities in the areas in which
we do business and other places around the world.
We have determined the following three areas (growth of future generations, environmental conservation andcommunity contribution) as key fields in social contribution activities in line with our corporate philosophy andmaterial sustainability issues.

1. Growth of Future Generations

We shall conduct activities to support the sound development of youth as
tomorrow’s leaders mainly in the areas in which we do business and work for the
emergence of fulfilling and vibrant communities.

2. Environmental Conservation

We shall vigorously pursue activities of environmental conservation andcontribute to sustainable social advancement.

3. Community Contribution

As a good corporate citizen, we shall promote community development, constructfavorable relationships, and enter into dialogue and discussions in the areas inwhich we do business.

Fumihiko Kobayashi
Member of the Board
Executive Vice President
Chief Administrative Officer
Established in August 1993
Revised in April 2022

163

ESG Data(Society)Children’s Literature Collection Grant (1975-)“BRIDGING FOUNDATION”
A member of the Bridging Foundation reads topatients at a children’s hospital ward in Vietnam

I TOCHU Foundation(Japanese only)(https://www.itc-zaidan.or.jp/)

I ntroduction to the Activities of the
ITOCHU Foundation(5 minutes and 30 seconds)(Japanese only)(https://ｗww.youtube.com/
watch?v=6B6u3SwrdEo&t=4s)

Project for Promotion of E-book Libraries

Patients can enjoy Multimedia Daisy while operating a
PC with a switch affixed between their eyebrows“Kokkyo naki Kodomotachi” (“KnK”; Meaning“Children Without Borders”) Support Activities atthe “House for Youth,” a Home That Helps Young
People Become Independent

Since FYE 2008, ITOCHU has been supporting the “Wakamono-no-Ie (meaning House for
Youth),” a home that helps young people become independent, located on the outskirts ofManila. Support was provided via Kokkyo naki Kodomotachi (KnK: meaning “children withoutborders”), an authorized Japanese NPO that supports street children, children who are victims
of major disasters, and other children in developing countries.

Learning to dream

ITOCHU SDGs STUDIO KIDS PARK

Tablets Donated to Children

We opened ITOCHU SDGs STUDIO KIDS PARK, aplace where the next generation of children canexperience the concepts of the SDGs through play.

Together with the Itochu Foundation, we donated used tablet devices
containing Multimedia DAISY (e-books accessible to those who facechallenges in reading) to special needs schools in Tokyo, elementary andjunior high schools in local communities, and all libraries and special
needs schools in Shiga, the prefecture of our foundation.

Relationship Between the Key Fields of Social Contribution Activities and BusinessWe have established enhancing contribution and efforts for the SDGs as one of the basic policies in our
Brand-new Deal 2023 medium-term management plan that we started in 2021. We have positioned it as
one of our main strategies.
We give below the relationship between our sustainability strategy of material sustainability issues
incorporating environmental, social and governance (ESG) perspectives and enhancing contribution andefforts for the SDGs in our business strategy and the key fields of our social contribution activities.
Key Fields

Growth of Future
Generations

Main SDGs

Environmental
Conservation

Main SDGs

Community
Contribution

Main SDGs

Enhancing Contribution and Efforts for the SDGs Response to Material Sustainability Issues

Material Issue

Material Issue

Material Issue

Goal 4: Ensure inclusive and equitable quality education and promote lifelong
learning opportunities for all
Contribute to Healthier and More Affluent Lifestyles
Goal 15: Protect, restore and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, and halt and reverse landdegradation and halt biodiversity loss
Address Climate Change (Contribute to a Decarbonized Society)
Goal 17: Strengthen the means of implementation and revitalize the global
partnership for sustainable development
Respect and Consider Human Rights

Held Company Visits for K-12 Students

Hosted extracurricular class for Aoyama
Elementary School

Held School Program on theEnvironment

Screenshot of the online classTop Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Social Contribution Activities

Society

Initiatives: Environmental Conservation

branches and leaves accumulate as peat, which sequesters high-density carbon in the soil andabsorbs a large amount of CO2 per unit area.

Social Contribution Activities

164

ESG Data(Society)Children plant trees

ITOCHU supports conservation activities for the green turtle, an endangered
species, through the certified NPO Everlasting Nature (ELNA).

ITOCHU SDGs STUDIO

Endangered green turtles

The Amazonian manatee is a vulnerable species

Since 2009, ITOCHU has been supporting local tree planting activities, including
tree planting, maintenance and management, in the northeastern part of Borneo
Island (North Ulu Segama, Sabah, Malaysia), which is also a habitat for theorangutan, an endangered species.

Contribution to Shiga Prefecture,
where ITOCHU was foundedWorld Picture Book Donation Projectfor Shiga Prefectural Library

We opened ITOCHU SDGs STUDIO, a place for communicating andraising public awareness of various SDGs initiatives in FYE2022. The
space provides various exhibitions so as each and every person
can find their own way of relating to the SDGs.

Picture books gathered from around the world

Provided Covid-19 Vaccination to Essential Workers

Blood Drives by the Japanese Red Cross Society

The Tokyo headquarters have offered Covid-19 vaccinations toabout 1,500 child care workers who were desired to be vaccinated through Poppins Inc., an operator of on-site child carefacilities.

Since FYE 2017, ITOCHU has been supporting the “Field Museum Initiative” abiodiversity conservation program in tropical forests in the Amazon promoted by
the Wildlife Research Center of Kyoto University in collaboration with the National
Institute of Amazonian Research in Brazil.

Supporting Climate System Research at the Atmosphereand Ocean Research Institute, The University of Tokyo

Independent Assurance Report

Local Contribution Activities at Domestic Locations* Mangrove: Densely developed fine roots constantly repeat elongation and death, and withered

Activities to Restore the Tropical Rainforests and Conserve
Borneo’s Ecosystem

Evaluation by Society

Sustainability in the Value Chain

Seven offices in Japan (as of April 1, 2023) are engaged in community contribution activities in their respective regions. For details on
initiatives taken by each location, please refer to Community Contribution (https://ｗww.itochu.co.jp/en/csr/social/community/index.
html#activity-05).

ITOCHU commenced a Mangrove Planting Project in Collaboration with Uken
Village of Amami Oshima Island, a World Heritage Site in August, 2021.

Support of Amazon Ecosystem Conservation Program

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Initiatives: Community Contribution

Mangrove Planting Project

Project for Protecting Green Turtles, an Endangered
Species

Governance

Respect and Consideration for Human Rights

The Tokyo Headquarters have been carried out blood donation
with the Japanese Red Cross Society since 1999. For our many yearof distinguished achievements in the blood donation even during
the pandemic received a certificate of appreciation in 2021 from
the Minister of Health, Labour, and Welfare.

Local Contribution Activities at Overseas Offices

About 100 overseas offices in 60 countries (as of April 1, 2023) are engaged in community contribution activities in their respective
regions. Not only through their business activities, but as a member of the local community, ITOCHU considers and carries out local
issues and unique contributions. For details of the initiatives taken by each regional block, please refer to Community Contribution(https://www.itochu.co.jp/en/csr/social/community/index.html#activity-04).

Local Job Creation and Employment

Endangered Species of the Orangutan

Since the establishment of the University of Tokyo’s former Climate System
Research Center in 1991, ITOCHU has endorsed its purpose and has continued tosupport research.

ITOCHU Group’s Pineapple Production Business in
Mindanao, the Philippines

The Climate Symposium (Dec. 2018)

We offer loans for initial expenses, cultivation expertise, andpurchase the harvested pineapples.

An Oil Project in the Caspian Sea, which Ensures a Stable
Resource Supply and Contributes to Local Communities
for Harmonious Cooperation
Production platform (photo courtesy of BP p.l.c.)Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

ESG Data (Society)

Society

Governance

Respect and Consideration for Human Rights

Evaluation by Society

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

165

Independent Assurance Report

Sustainability in the Value Chain

ESG Data(Society)Social Contribution Activities

Independent Assurance

Independent Assurance Report (P207): ★Data assured by KPMG AZSA Sustainability Co., Ltd, an external assurance provider based on the international standard ISAE 3000.
* Regarding range of tallied data, figures not labeled as Consolidated are placed under Non-Consolidated.

Employee Status (as of March 31 for each respective year)
Employees

Men

4,112

2023★

1,001

3,180

4,215

2021

Women

3,111

4,170

2022

Non-Consolidated

Avg. Age

42.4

990

3,227

Avg. Annual Salary (Yen)

17,300,799

42.2

988

15,797,516

42.0* The number of temporary employees is the average number of employees for each fiscal year.

Gender Pay-Gap

All Employees

Employees

110,698

Temporary Staff

44,705

115,124

16,278,110

43,195125,944

Full-time Employees

45,885

60.5%

41.6%

* The formula of the caluculation is [“average womens’ annual salary” ÷ “average mens’ annual salary”].

Employees by Operating Segment★ (as of March 31, 2023)
Non-consolidated
Consolidated

TextileMachiner

306

396

156

6,300

13,412

495

Energy &Chemicals

358

Food

392

12,100(Unit: People)

GeneralProducts &RealtyICT &FinancialBusiness

The 8thOthers17,80016,140

44

7,163

908

34,667

254

208

Overseas Bloc Employees by Region★ (as of March 31, 2023)
North America

South America

Europe / CIS

National Staff

131

110

267

Overseas
Trainees

16

4

Rotational Staff

TOTAL

56

17

Management
Personnel

AfricaMiddle East

2,621

East Asia

Total

3,022

110,698(Unit: People)

Asia / Oceania

60

63

13

108

572
68

102

12

2

4

17

26

21

* Overseas bloc employees by region counts employees who are assigned to overseas subsidiaries or overseas branches/offices.

592

2,261

North America

South America

Europe / CIS

86

38

81

* Equivalent to headquarters management positions

AfricaMiddle East

9

(Unit: People)

East Asia

29

Asia / Oceania

310

166

Share of Women in Career-track / Managerial / General Managerial /Executive Positions (as of March 31 for each Respective Year)

Part-time Employees

59.1%

Metals &Minerals

Number of Overseas Local Employee Management Personnel (as of March 31, 2023)

Consolidated

Total

2023

★
3,331

Career-track
Women

★
375

Share

Total

★
11.3%

Managerial*1

★
2,541

Women

Share

★
219

★
8.6%

General Managerial*2

Total

*2
401

Women

Share

*2
3

*2
0.7%

(Unit: People)

Executive Positions

Total

★
41

2022

3,395

359

10.6%

2,569

210

8.2%

413

3

0.7%

42

2021

3,435

346

10.1%

2,588

209

8.1%

411

3

0.7%

46

Women

Share

4

9.5%

4

8.7%

★
4

★
9.8%

*1 Since 2023, the definition of managers has been partially revised. In addition to general managers who hold a certain level or higher, since 2023, those in
special positions and associate executive officers are also eligible. Accordingly, the number of employees and ratio of 2022 and 2021 have been revised
retroactively.

*2 Since 2023, we have disclosed the level of general managers as one of the indicators of women’s performance.

Women Rotational Staff (as of March 31, 2023)

Europe/CIS

9Middle East

2

North
America

15

East Asia

7

Asia/Oceania

9

Woman
Rotational
Staﬀ

42

* Including Overseas Trainees

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

ESG Data (Society)

Society

Governance

Respect and Consideration for Human Rights

Employment of Disabled Persons (as of March 1 for each Respective Year)
2.48

Childcare

2021

2.32

2.43

2022

FYE 2023★

* ITOCHU Corporation, ITOCHU UNIDAS Co., Ltd. and ITOCHU Human Resources & General Services Co., Ltd are included in the scope of the figure.

Number of Hires by Gender and Adoption Rate for Mid-CareerFYE 2023★
FYE 2022*

FYE 2021*

Men

New-Graduates
Women

73

34

79

Number of Hires by Gender (Unit:People)
Total

107

36

84

Men

115

36

Mid-Career

7

Women

0

120

Total

6

1

5

Total

2

Adoption Rate
for Mid-Career(Unit:%)

13

120

11

7

127

6

1

116

1

* Although Number of Hires by Gender has been calculated at the date of April 1st each year, the scope of the period has been changed to fiscal year (1st of April- End of March) from FYE 2023. Due to the change of the scope of the period, we have corrected the data for previous years.

Average Years Employed and Voluntary Resignation Rate (Non-Consolidated)
FYE 2023★
FYE 2022
FYE 2021

Men

Avg. Years Employed

18.3
18.1
17.8

* Positions: career-track, clerical, special

Women

18.3
18.4
18.4

Total

18.3
18.2
17.9

Men

Voluntary Resignation Rate

1.9%
1.7%
1.2%

Women

1.6%
1.5%
2.4%

Evaluation by Society

166

Independent Assurance Report

Sustainability in the Value Chain

ESG Data(Society)Social Contribution Activities

Use of Childcare & Nursing Care Programs

Percentage of Disabled Employees (%)

2023★

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

Total

1.8%
1.6%
1.5%

FYE 2022

FYE 2021

Men

Women

39

100%

32

34%

87

Women

Men

Special parental
leave

89

19

0

125

4

192

89

23

47

104%

124

94

16

31

34%

79

Women

49

Total

67

Shorter working
hours forchildcare

71%

Total

Men

52%

48

Total

Leave to nurse
sick children

80

71

0

7

56%

195

94

23

87%

105

96

28

49

55%

0

154

96

8

36

(Unit: People)

Percentage of
employees returning
to work*3

96%

100%

97%

*1 Parental leave includes parental leave at birth (postpartum paternity leave).
*2 The percentage of employees taking parental leave is newly disclosed beginning with the current fiscal year and including prior fiscal years. Accordingly, themethod of calculating the number of employees taking parental leave has been revised retroactively to include prior fiscal years. The number of employees
taking parental leave is the number of employees who started taking such leave during the current fiscal year. The rate of employees taking parental leave isthe ratio of the number of employees who started taking parental leave during the fiscal year to the number of employees who gave birth during the fiscal
year (For men, the number of male employees whose spouses gave birth). (Including the number of employees seconded from other companies)
3* The percentage of employees (including those seconded to other companies) returning to work after childcare leave is calculated according to the following
formula: the number of employees returning to work after childcare leave during the current fiscal year/the number of employees who finished taking
childcare leave during the current fiscal year.

Nursing Care and Family Support Leave
Nursing care leave

FYE 2023★

Turnover rate is calculated according to the following formula.
Voluntary resignations ÷ employees at end of fiscal year

ITOCHU Corporation has a long average number of years employed of 18 years and only around 1.8% of
employees voluntarily resign. It is a company where many employees choose to stay for the long-term.

Childcare leave
Childcare leave*1
acquisition rate*2

FYE 2022

FYE 2021

Men

Women

Total

Men

Women

Total

Men

Women

Total

0

0

0

1

0

1

1

0

1

(Unit: People)

Leave for nursing
care

Shorter working hours
for nursing care

Special nursing care
leave

Family Support Leave

45

3

9

70

23

68

18

47

65

23

46

69

0

4

55

3

13

125

5

9

72

0

3

70

5

12

142

5

8

63

0

5

0

8

79

142

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Society

Occupational Safety and Health Management

ESG Data (Society)Occupational Health and Safety Data (Non-Consolidated Employees*1)
FYE 2021

Number who Suffered from Occupational
Accidents (Number which Occurred During
Commute)*2

Number of Fatalities

FYE 2022

Governance

Respect and Consideration for Human Rights

Full-timePart-time

Full-timePart-time

Full-timePart-time

4 (3)

1 (1)

5 (4)

0 (0)

3 (0)

0 (0)

0

0

0

0

0

0

0.00

0.00

0.00

0.00

0.00

0.00

LTIFR (Lost Time Injury Frequency Rate)*5

0.21

0.00

0.00

0.00

0.00

0.00

1

0

0

0

0

0

*1 Employees targeted: Full-time employees — career-track employees, clerical employees, those in special positions and employees temporarily assigned to us

Part-time employee — contract employees*2 Number who suffered from occupational accidents: The total number of those who suffered from of occupational accidents or non-LTI due to their work andthose injured during their commute.
*3 OIFR: The rate of incidence of lost-time accidents corresponding to disease per million hours (calculated as the number of people suffering from LTI due toillness divided by the total number of working hours times 1 million)*4 Lost time incidents (LTI) are situations in which a work-related injury or illness causes the victim to be absent from work on the following day. (occupational
accidents)*5 LTIFR: The rate of occurrence of incidents that caused employees to miss work per million working hours (calculated as the number of sufferers of LTI
divided by the total number of working hours times 1 million)■ Performance Benchmarking Against Industry Average (Wholesalers and Retailers with Over 100 Employees)

Lost-time Incident Rate

2019

2.09

2020

* The data above references the Ministry of Health, Labor and Welfare’s 2020 Research on Work-related Accident Trends

Time/Cost Allotted for Employee Skills Development Training
Total annual training time (hours)

Average training/development hours per
regular employee (hours)*

Average training/development cost per regular
employee (thousand yen)

2021

2.27

2.31

FYE 2020

FYE 2021

FYE 2022

FYE 2023

FYE 2019

FYE 2020

FYE 2021

FYE 2022

FYE 2023

168,425

92,431

112,574

87,841

37.46

39.53*1

21.93

27.00

21.36

444*2

407*2

260

269

396

* Calculation method: total annual training hours / employees at end of fiscal year
is due to the impact of COVID-19* The reduction* Data for *1 and *2 are revised because some of the aggregate data has been revised.

Quick Mastering Business
Management Course

FYE 2019

FYE 2020

ESG Data(Society)Social Contribution Activities

FYE 2021(Unit: People)

FYE 2022

FYE 2023

96

110

152

172

173

Global Development
Program

141

154

0
(Cancel)33

Organization Manager
Workshop0(Not
implemented)

405

337

341

624

1,401

Short-Term Business
School Dispatch

31

37

8

7

16

Junior Chinese/Special
Language Dispatch

39

10

0
(Cancel)5

Chinese Lessons

237

158

205

0
(Not
implemented)

1,885

1,940

2,067

Career Vision Support
Training (total)

FYE 2023 Human Rights Training Record★
Group ESG Managers Conference

FYE 2019

160,510Training

167

Independent Assurance Report

Sustainability in the Value Chain

Attendance in Major Training

FYE 2023★

OIFR (Occupational Illness Frequency Rate)*3

Number who Suffered Lost Time Incidents (LTI)*4

Evaluation by Society

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

94

110

Pre-overseas Appointment Training

212

Sustainability Survey Workshop

90

Training for New Officers of Group Companies
Total

193

1,851

1,419

Number of Participants

New Employee Training

Training for Newly Appointed Section Managers

189

55

124
685

(Unit: People)

Top Commitment

Labor Practices

Sustainability at the ITOCHU Group

Human Resources Development

Environment

Occupational Safety and Health Management

Society

ESG Data (Society)Support for Diversity, Equity & Inclusion
Fiscal Year2023 (Offline・Online)

FYE 2022 (Online)

FYE 2021 (Online)

Governance

Respect and Consideration for Human Rights

1. Introduction of Health and Child Care Concierge
2. Balancing Pregnancy with Pregnancy and Introducing Support Programs
3. Basic LGBTQ knowledge and partnerships
4. Male parental leave
5. Balance with nursing care

(1) Balancing career and nursing care(i) Nursing care and money / nursing care insurance(ii) Home care(iii) Nursing care in a facility(2) Balancing career and life: work style reform and child-rearing for couples(3) Basic knowledge on LGBTs(4) Women’s career and health(i) Uterine cancer and breast cancer seminar(ii) Women’s health seminar series(5) Advancement of women (talk by an officer)

General Training Covering Health and
Safety Standards*1
Human Resources-led Training
Covering Health and Safety
Standards*2

FYE 2020

FYE 2021

FYE 2023★

3,543

3,629

1,447

841

2,690

48

453

74

63

358

*1 The total number of participants in training new recruits (career-track employees and clerical employees), training for newly appointed section managers,
training prior to overseas assignment, and the comprehensive emergency drill at the Tokyo headquarters.

*2 The total number of participants in Career vision training (including mindfulness courses and mental health management courses).

Social Contribution Activities

Training Details

Training New Recruits

Employees newly joining ITOCHU are informed on the importance of
health for their personal life and their career. The training includes
information on mental health and lifestyle-related diseases.
Employees are also educated on the company’s health and safety
management by our occupational physician and our clinicalpsychologist.

Training in Preparation
for Overseas
Assignments or JuniorOverseas Training(Unit: People)

FYE 2022

Independent Assurance Report

Type of Training

New Manager Training
on Health Management(1) Nursing care(i) T o balance work and nursing care: Keys to nursing care in the COVID-19 era(ii) Elderly monitoring service individual consultation meetings(2) Male childcare leave seminar series (a version for those taking childcare leave and a
version for the superiors/coworkers of those taking childcare leave)(3) Basic LGBT seminar(4) Women’s careers and health(i) Life stage with health(ii) Gynecological cancer (uterine cancer and breast cancer)

FYE 2019

Evaluation by Society

Sustainability in the Value Chain168

ESG Data(Society)FYE 2023 Number of Employees that Received Our Main Health and Safety-related
Trainings

Theme

Attendance in Training Related to Health and Safety Standards(Non-Consolidated Employees)

SDGs Bond (Sustainability Bond)

Responsibilities to Customers

For newly promoted junior managers, industrial physicians andclinical psychologists provide training on how to guide and manage
the health and safety of subordinates through case-studies. The
training also provides guidance on how to maintain one’s own healthonce promoted to their new positions.

The training is mainly conducted by our occupational physician, andcovers health issues that are likely to occur in relevant countries, aswell as crucial differences in medical environments and lifestyles
between Japan and assigned countries. The training also covers
necessary preparations that are recommended prior to dispatch, andinformation on how to receive health checkups during theirassignment. We also provide the same training for the family
members of our employees, and provide information on key contact
points and resources in case of emergencies.

(Unit: People)

Number of Employee
Attendees

110

55

216