In December 2018, Mitsui declared its support for the Task Force on Climate-related Financial Disclosures (TCFD). In accordance with the recommendations of the TCFD and as a responsible company operating globally, we actively promote information disclosure with an awareness of stakeholder demands.

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Disclosure Based on TCFD Recommendations (December 2023) (PDF 595KB)

Climate Change-Related Discussions

There were 20 major climate change-related discussions by the Sustainability Committee over the past three years.

Sustainability Advisory Board / Collaboration with external experts

We have established the Sustainability Advisory Board (formerly the Environmental and Societal Advisory Committee), a group comprising external experts in societal and environmental topics such as climate change. The Sustainability Committee uses information and advice from Sustainability Advisory Board members in their deliberations. In addition to Sustainability Advisory Board members, we also engage in communication with external experts to help ensure that we appropriately address climate change.

Please refer to the links below for more information on Mitsui's Sustainability Management Framework and the activities of the Sustainability Committee.

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• Our Approach to Sustainability: Sustainability Governance and Oversight
• Our Approach to Sustainability: Sustainability Committee
• Our Approach to Sustainability: Sustainability Advisory Board

Since declaring our support for the TCFD recommendations in December 2018, we have been engaged in a step-by-step scenario analysis process to enhance the resilience of our strategy by responding flexibly to changes in the global business environment. Traditionally, business units have analyzed risks, countermeasures, quantitative impact, etc. for their selected businesses and discussed them at the Sustainability Committee; however, in response to its growing importance, we have integrated scenario analysis into the formulation process for the business plan starting the fiscal year ending March 31, 2023. By incorporating scenario analysis into the business planning process, which is approved by the Board of Directors after reporting and deliberation by the Executive Committee, the results of scenario analysis are confirmed and deliberated by management and reflected in the business plan and business portfolio strategy.

We are conducting scenario analysis in short- (0-1 year), medium- (1-10 years), and long-term (10-30 years) timeframes up to the year 2050. We conduct scenario analysis of transition risks^*1 and opportunities with reference to the scenarios set out in the World Energy Outlook (WEO) published by the (International Energy Agency) IEA. In addition, with reference to the RCP (Representative Concentration Pathway) used by the IPCC (Intergovernmental Panel on Climate Change), Mitsui has conducted analysis of investment assets above a certain value by surveying the impact of physical risks^*2 based on natural disasters that have occurred over the last five years.

*1 "Transition risks" refer to risks caused by changes in policy/legal regulations, technology development, market trends, market evaluation, etc.
*2 "Physical risks" refer to the risk of physical damage caused by increases in natural disasters and abnormal weather arising from climate change.

• IEA Stated Policies Scenario (STEPS): Scenario that reflects the current policy targets of each country
• IEA Announced Pledges Scenario (APS): Scenario that assumes all of the government's announced pledges are implemented
• IEA Net Zero Emissions by 2050 Scenario (NZE): Scenario for achieving the goal of limiting global warming to less than 1.5°C compared to pre-Industrial Revolution level
• IPCC RCP 8.5 scenario: Scenario in which the world's average temperature rises by around 4.0°C by 2100

Mitsui is engaged in a wide range of business in countries and regions around the world, and we view the diverse risks and opportunities presented by climate change as important factors that we must consider when formulating our business strategies. We are identifying the short-, mid-, and long-term risks and opportunities that accompany climate change, and we review them periodically. We also review each segment in response to changes in the macroenvironment and trends, and adjustments in our business portfolio, along with other changes in the internal and external environment, and reflect them in our business strategy in a timely manner.

In our Medium-term Management Plan 2026, we have set forth the further deepening of sustainability management as one of our Corporate Strategies, and in the area of climate change, we will continue to transform our business portfolio with a view to realizing a decarbonized society. Specifically, we have positioned Global Energy Transition as one of our Key Strategic Initiatives, and we are proceeding with the formulation of a business transition plan and financial plan.

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Medium-term Management Plan 2026 ~Creating Sustainable Futures~ (PDF 9.0MB)

Transition Risks	Policy and Legal Risks	Shift to the use of decarbonized energy due to various national and regional policies (changes in energy and power mix) Government-imposed restrictions on greenhouse gas emissions, with carbon taxes and cap-and-trade emissions-credit schemes
	Technology Risks	Changes in supply and demand in markets for existing commodities and services or the obsolescence of existing production equipment and facilities accompanying the introduction of new technologies geared toward climate change or the development and dissemination of alternative products
	Market Risks	Changes in demand for fossil fuel-related products and services and deterioration in value of Mitsui's ownership interests Fund procurement risks due to the adoption of decarbonization policies by financial institutions and insurance companies
Physical Risks	Acute Risks	Interruption of the operations of project companies in Australia and the United States, etc., due to cyclones and hurricanes
	Chronic Risks	Impact of global warming on agricultural and marine products or impediments to operations accompanying rising sea levels

Further, for each of our segments we have analyzed the internal and external environment and identified risks and opportunities.

Segment	Risks	Opportunities
Mineral & Metal Resources	Decrease in demand for raw materials (iron ore, metallurgical coal) due to increase in Electrical Arc Furnace usage in anticipation of efforts to reduce GHG Increase in the cost of environmental measures and carbon taxes Increase in the difficulty for obtaining environmental permits	Expansion of recycling businesses in response to circular economy Increase in demand for raw materials for secondary batteries, copper, and aluminum accompanying the spread of vehicle electrification
Energy	Decrease in demand for fossil fuel Increase in the cost of environmental measures	Expansion of market for LNG and gas businesses that have a relatively low environmental impact Expansion of CCS/CCUS* business Expansion of market for biofuel, hydrogen/ammonia fuel, and other next-generation energy Expansion of business for Energy Solutions Business, including emissions credits and energy management businesses
Machinery & Infrastructure	Change in the social conditions surrounding coal-fired thermal power businesses Change in the supply and demand of existing businesses accompanying the creation of new technologies and new markets	Development of renewable energy generation businesses Increase in demand for power trading and grid stabilization services that help address rising power system volatility Circular economy and Expansion of ZEV (Zero Emission Vehicle) business Initiatives toward zero carbon operations in shipping industries Ship Electrification and Digitalization
Chemicals	Change in demand for fossil fuel-derived chemicals Change in industrial structures due to strengthening of environmental restrictions Change in demand for agricultural material due to unfavorable weather	Expansion of recycling business in anticipation of a recycling-based society Increase in demand for biochemicals and energy-saving materials Increase in demand for forests as a source of absorption and emission credit businesses Increase in demand for regenerative agriculture business and environmentally-friendly agricultural material
Iron & Steel Products	Decrease in demand for materials and drilling equipment for the energy sector	Building new supply chains responding to decarbonized society Increase in demand for maintenance businesses to contribute to extending life of infrastructure Increase in demand for lighter vehicles and highly efficient motors accompanying spread of electric vehicles Increase in demand for conversion of oil and gas pipelines to hydrogen and other new energy sources Increase in demand for carbon management
Lifestyle	Change in food-producing regions accompanying global warming, etc. Impact on supply chains of climate change	Rising need for securing food resources and securing stable food supplies
Innovation & Corporate Development	Reduction hedging demand for fossil fuel-related commodities	Increase in demand for asset management business targeting natural capital and energy transition assets Increase in hedging demand for commodity trading contributing to a sustainable society

* CCS = Carbon Capture and Storage; CCUS = Carbon Capture, Utilization and Storage

We use multiple climate change scenarios for the selected business to assess the impact of transition risks on financial planning and business strategies, and use the results to investigate necessary countermeasures.

Selection of Business for Scenario Analyses

In consideration of scale of business operations and climate change impact, upon categorizing business as "high", "medium" or "low" priority, we have selected "high" priority business as targets for scenario analyses.

Results of Scenario Analysis

The results of scenario analysis for the ten businesses selected for this study are shown below. The scenarios referred to in the scenario analysis are organized into Current and Transition Scenarios as follows.

• Current Scenario: A scenario in which current climate related initiatives of each country are maintained, demand (mainly in emerging countries) for fossil fuels and other resources that emit GHGs remains to a certain extent, and business practices which could impact climate change continue (STEPS, etc.).
• Transition Scenario: A scenario in which there is a slowdown in demand for fossil fuels and other resources that emit GHGs, and a rapid increase in demand for renewable energy and other resources, as a result of the international development of advanced initiatives and systems to address climate change as well as a shift towards energy conservation and electrification driven by widespread decarbonization and technological innovation (APS, NZE, etc.).

The impact of the Current Scenario and the Transition Scenarios on the selected businesses from the present day to 2050 is shown in the following three levels. In addition, for the Upstream Oil and Gas Business and LNG Business, Metallurgical Coal Business, and Thermal Power Generation Business, which we have judged to be particularly important in terms of scale of business operations and climate change impact, we have analyzed the impact on net income for the fiscal years ending March 2030, 2040, and 2050 and presented them in three levels based on our assumed base case, taking into account our understanding of the business environment and various scenarios. The analysis is based on internal carbon pricing, and pricing is set with reference to definitions and prices published by external organizations such as the IEA, taking into account factors such as the country/region of the subject assets, and time frame. The 2°C scenario is equivalent to approximately $130-$200/ton for developed countries and approximately $50-$160/ton for other regions over the period to 2050. For the 1.5°C scenario, prices are generally $350/ton for developed countries and $50-$250/ton for other regions.

Impacts on the Selected Businesses

• : Positive impact on business
• : No change or slight impact on business
• : Negative impact on business

Quantitative Impact on the Selected Businesses

Large: -USD300 million or more
Medium: -USD100million or more but less than -USD300 million
Small: - less than USD100 million

Upstream Oil and Gas Business and LNG Business

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Three-Month Period Ended June 30, 2024_Financial Results Presentation Material (P.22 Energy: Main Businesses) (PDF 1.81MB)

Metallurgical Coal Business

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Three-Month Period Ended June 30, 2024_Financial Results Presentation Material (P.20 Mineral & Metal Resources: Main Businesses) (PDF 1.81MB)

Thermal Power Generation Business

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Power Generation Businesses (Gas-Fired Power Generation Business, Coal-Fired Power Generation Business, Oil-Fired Power Generation Business) as of June 30, 2024 (PDF 368KB)

Iron Ore Business

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Three-Month Period Ended June 30, 2024_Financial Results Presentation Material (P.20 Mineral & Metal Resources: Main Businesses) (PDF 1.81MB)

Offshore Oil and Gas Production Facilities Business

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Gas Distribution Business

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LNG Shipping Business

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Renewable Energy Business

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Power Generation Businesses (Renewable Energy Business) as of June 30, 2024 (PDF 368KB)

Next-Generation Energy Business

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Forest Resources Business

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We operate a wide range of businesses in various countries and regions, which may be affected by the manifestation of physical risks if climate change causes an increase in extreme weather events.
Accordingly, when we invest in new businesses, in order to ensure appropriate risk management, we conduct physical risk analysis while taking advice from outside experts as necessary. We also review the effectiveness of countermeasures onsite at each business after making an investment.

In the event that physical risks materialize, while placing the highest priority on protecting human lives, we have established crisis management policies for business continuity that take into consideration coexistence with local communities. We have also taken measures to mitigate and adapt to risks, such as obtaining insurance coverage, securing multiple suppliers, enhancing our facilities. We will continue to assess the adequacy of our risk management measures on a regular basis. To review the appropriateness of our current risk response, we utilized an analysis tool developed by ERM, an environmental consulting firm, to analyze the impact of physical risks on our portfolio companies in the future, as follows.

The location of the main assets of the selected investments and the physical risks of the 4°C scenario in 2030 are as follows.

The results of our analysis indicate that the four physical risk hazards that will have a particularly significant impact on the Company in 2030 and 2050 under the 4°C scenario are extreme heat, wildfires, water stress & drought, and tropical cyclones. The number of companies at high risk of extreme heat will be approximately 80% of the 65 companies analyzed in 2050. With regard to risk of wildfire and water stress/drought, nearly half of the companies analyzed will be at high risk in 2050, and the number of companies at high risk of wildfires will approximately double. Many companies are currently at high risk of tropical cyclones, and although there will only be a small increase in the number of companies at high risk, there is concern that the frequency and magnitude of their occurrence will make damage more severe. A summary of each physical risk hazard and the measures to address them are shown below, with the risk level determined by the number of companies at high physical risk.

• 4 companies or less
• 5-14 companies
• 15-24 companies
• 25-34 companies
• 35 companies or more

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We identify company-wide material risks across organizational boundaries and implement a wide range of initiatives to hedge and control risks. For this purpose, Mitsui has established an integrated risk management system that centrally manages company-wide risks, through the Portfolio Management Committee under the Executive Committee. Under the integrated risk management system, the Corporate Staff Divisions, which act as the secretariat, manage risks from a company-wide perspective. Material risks we assume include those related to the environment, society and governance, such as risks from climate change, compliance, and infectious disease, disasters, terrorism, etc. We position risks regarding climate change (physical and transition) in particular as second in importance only to business investment, geopolitical, and country risks and are taking corresponding measures. For details of our risk management structure, please refer to the following page.

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Risk Management

For Mitsui & Co., which operates in countries and regions around the world, the policies of each country and region related to climate change have a significant impact on the profitability and sustainability of each of our businesses. We use the climate-change scenarios published by the IEA and other organizations when we analyze scenarios involving businesses that have significant impacts, to gain an understanding of business impacts both in terms of risk and opportunity, and when considering investment projects, M&A, and other business decisions, we determine business priorities and take these scenarios into account.

In conducting business, we have put in place a system to ensure that utmost consideration is given to the environment and society in projects at all stages, including at the launch of a new business, during operations, and even at the time of withdrawal from the business. Our Sustainability Committee discusses response policies and measures regarding environmental and social risks (including climate-change risk), then reports to the Executive Committee and the Board of Directors, which then applies them following approval.

1. Scope 1 and 2, and Scope 3 Category 15 (Investments) of the Company and its consolidated subsidiaries (including un-incorporated joint ventures):
   Formulating Mitsui's goal to achieve net-zero emissions as our Vision for 2050, and aiming to halve GHG Impact by 2030 compared to the fiscal year ended March 2020, as the pathway to achieve the above goal.
2. Scope 1 and 2 of the Company and its consolidated subsidiaries:
   Halving GHG emissions by 2030 compared to the fiscal year ended March 2020.
3. The ratio of renewable energy in our power generation portfolio:
   Raising the ratio of renewable energy to over 30% by 2030.

* un-incorporated JVs = un-incorporated joint ventures

Results

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(Unit: Million t-CO2e)

* 33% was achieved as of the end of 1Q FY2025

Breakdown of GHG emissions by target/forecast boundary

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(Unit: Million t-CO2e)

*1 Forecasts based on investment plan in the 2026 Medium-term Management Plan and forecast as of August 2024 (other than targets for halving GHG Impact by 2030 and halving Mitsui/consolidated Scope 1 + 2).
*2 Baseline year emissions include projected increase in emissions from thermal power plants upon becoming fully operational for which investment decisions had already made as of the fiscal year ended March 2020.
*3 Vs the 43 million t-CO2e of the baseline year.

GHG Impact refers to the amount of our emissions minus the amount of absorption and offset and the GHG emission reduction contribution amount we achieved through our business activities. We not only focus on reducing our own emissions, but also on contributing to the transition to a decarbonized society through our business activities. Going forward, we will accelerate our company-wide initiatives by setting specific goals, including our reduction contribution amount.
Net zero emissions in 2050 means to reduce our emissions to effectively zero by subtracting only the amount of absorption and offset from our emissions. The reduction contribution amount is not included in the 2050 target figures, though we will continue to actively contribute to GHG emissions reductions for society as a whole through our business.

We promote emission reduction (Reduction) and reduction contribution (Opportunity & Transition) in a variety of ways, taking advantage of the cross-industrial business structure that only a sogo shosha can offer.

Path to Halving GHG Impact and Achieving Net-zero emissions

We aim to halve our GHG Impact from 34 million tons in the fiscal year ended March 2020 to 17 million tons in the fiscal year ending March 2030. In the fiscal year ending March 2026, the final year of the current Medium-term Management Plan, the GHG Impact is expected to be approximately 27 million tons. For the period from the fiscal year ending March 2024 to the fiscal year ending March 2026, we expect the increase in emissions of approximately 3 million tons due to the projected emissions from thermal power plants upon becoming fully operational for which investment decisions had already been made as of the fiscal year ended March 2020 and other factors as well as the decrease in emissions of approximately 7 million tons due to the asset divestment of thermal power plants and other factors. In addition, we achieved our 30% renewable energy target in the first quarter of the fiscal year ending March 2025.

We will aim to achieve our goal of "halving GHG Impact by 2030" through a robust combination of emission reduction and reduction contribution projects.

*1 Reduction Contribution in this graph includes figures for emissions absorbed and offset.
*2 Reduction Contribution is not included in Net-zero emissions.
*3 Carbon Capture and Storage
*4 A business providing customers with Carbon Capture and Storage as a Service

Reduction Contribution/Absorption Amount

The Reduction contribution amount is a quantification from a life cycle assessment perspective of the amount of GHG emissions (Scope 1 and Scope 2) by third parties that were reduced and avoided by providing products and services that contribute to the reduction of GHG emissions in society through our business, compared to the amount that would have been emitted if existing products and services had been provided (baseline). The GHG emissions reduction contribution amount is calculated with reference to the guidelines of the WBCSD (World Business Council for Sustainable Development) and the Japan LCA Society, etc. However, since there are no unified calculation rules at this time, we will continue to review the calculation method and disclosure as appropriate, based on international discussions and industry trends. The actual result for FY March 2024 is 4,680 thousand tons in total (including Absorption Amount). The breakdown and calculation formula are as follows.
In calculating the reduction contribution amount, we use actual results and publicly available information to the extent possible, but in cases where it is difficult to obtain such information, we make our own assumptions and establish scenarios to the extent reasonable for our calculations.

Reduction Contribution Amount

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Absorption Amount

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(Unit: Million t-CO2e)

• Mitsui and consolidated subsidiaries (including un-incorporated JVs) are calculated according to the financial control approach (as with Scope 1 and Scope 2)
• Where the same emission source is clearly double-counted among the companies included in the scope of the data, only one is included in the calculation
• In cases where the final product into which an intermediary product is processed cannot be determined, it is excluded from the calculation
• Approx. 70% of total Scope 3 emissions (excluding Category 15) are derived from the trading of third-party products and approx. 30% from the production/manufacturing/processing of products at Mitsui
• Trading of third-party products is where Mitsui buys products produced/manufactured/processed by third parties to sell to processors, end user, etc. It does not include transactions with "traders" where the processor or end user cannot be determined
• Category 1 and 11 energy-related emissions are calculated in line with the International Petroleum Industry Environmental Conservation Association (IPIECA) guidelines
• For ferrous raw materials (iron ore and metallurgical coal), Category 10 emissions from production of crude steel are calculated proportionally by weight
• Category 1, 10, and 11 segment breakdowns only include the relevant segments

Scope 3 represents other companies' emissions and requires initiatives throughout the entire value chain. Together with our partners and customers, Mitsui is advancing initiatives in every industry in our broad range of businesses, from upstream to downstream, to cut emissions throughout society.

Steel production value chain

* Methanol, ammonia, etc.

Gas value chain

*1 Floating storage and regasification unit

*2 A business providing customers with Carbon Capture and Storage as a Service

Automotive value chain

* Zero Emission Vehicles such as EVs and FCVs that emit no CO2 or other GHG when running

At Mitsui, we introduced the internal carbon pricing system in April 2020 for the purpose of improving the medium to long-term resilience of businesses emitting large volumes of GHG, and to encourage the development of projects that are effective at reducing our, and society's, GHG emissions. Regarding new business projects, in projects with potential risks or opportunities from GHG regulations, etc., we have added analysis of the potential impact of a 2°C and 1.5°C scenario to the project screening factors, as well as the adequacy of countermeasures in the event these risks are realized. We are also using the internal carbon pricing system to assess risks in existing projects. The pricing is based on definitions and prices published by the IEA and other external organizations, taking into account the location and time horizon of the assets, and over the period through 2050 we have applied prices generally in the $130 to $200/ton range for developed countries and $50 to $160/t for the rest of the world under the equivalent of the 2°C scenario, and the $350/ton range for developed countries and $50 to $250/ton for the rest of the world under the 1.5°C scenario.

As the transition towards a low-carbon or decarbonized society accelerates, we are working to reduce the GHG emissions from our operations while simultaneously engaging in business that contributes to reducing GHG for society. We aim to realize sustainable growth while helping to solve the challenges faced by society. For these reasons, we decided to establish the Environmental ("Green") Business Assessment Working Group, which launched on April 1, 2021. Its role is to carry out comprehensive evaluations as part of the screening process for new projects with the potential to turn climate change responses, such as the development of renewable energy, into opportunities. The evaluations include qualitative factors, such as the strategic significance of initiatives from ESG perspectives.

Aside from our GHG reduction targets, the following environmental indicators and targets have been established and are being monitored on an ongoing basis.

• Energy consumption:
  • Reduce energy consumption intensity, and achieve 100% fossil-free energy use at the Head Office and ranches and offices in Japan, etc., of Mitsui & Co. (non-consolidated) by FY March 2030.
• Water Resources:
  • Reduce water consumption at the Head Office and branches and offices in Japan, etc., of Mitsui & Co. (non-consolidated) to less than the amount used in the previous fiscal year, and improve the efficiency of water use.
• Pollution Prevention:
  • Increase the waste recycling rate at buildings owned by Mitsui & Co. as a non-consolidated entity (Head Office, Osaka Office) to over 90% by FY March 2030.
  • Reduce paper consumption at the Head Office and branches and offices in Japan, of Mitsui & Co. (non-consolidated) by 50% or more compared to FY March 2020 by FY March 2030.

By promoting businesses that contribute to the realization of a decarbonized society, including cleantech technology, we aim to increase invested capital by approximately 1 trillion yen as stated in the Medium-term Management Plan 2026, with ROIC exceeding 5% in the year ending March 2026 and 9% in the year ending March 2030.

For specific performance data, please refer to the following.

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Environmental Performance Data

As a responsible global company, we are advancing and expanding our response to climate change by participating in initiatives based on international frameworks and wide-ranging partnerships through industry organizations in Japan. To comply with the Paris Agreement and achieve Japan's medium- to long-term targets for reducing greenhouse gas emissions we comply with environmental laws and regulations such as the Energy Conservation Law, and are actively involved in the formulation and design of government-led policies and programs such as the GX League, etc. Our decision to participate in each initiative is made once we have confirmed that it is compatible with our basic policy and initiatives concerning climate change, and we will disclose information appropriately to our stakeholders.

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Participation in Initiatives

Our Medium-Term Management Plan and Environmental Policy both call for action on climate change, and we are promoting initiatives to reduce our environmental impact through dialogue with suppliers and other business partners along the value chains in which we are involved, with the aim of achieving both economic development and a response to climate change. In addition to renewable energy and modal shift businesses, we are also working to expand and promote various businesses and technologies that contribute to the reduction of CO2 emissions and improvement in energy consumption efficiency.

Making Energy Use Carbon Neutral across All Business Locations in Japan (Using J-Credits)

As one of the concrete measures aimed at realizing our 2050 vision, we offset the CO2 emitted from the use of electricity, fuel and heat at our Head Office and all domestic offices, branches and training centers, by applying carbon credits (J-Credits) generated by affiliate company Konan Utility Co., Ltd. and Mitsui's Forests.

• Infrastructure Projects Business Unit
• Energy Solutions Business Unit

In our power generation business we intend to lower the share of coal-fired thermal power in our equity share of power generation capacity and increase the percentage of renewable energy (including hydropower) to 30% by 2030. As of June 30, 2024, renewable energy, including hydroelectric power, accounted for approximately 33% of Mitsui's total power generating capacity of 9.69GW.

Power Generation Businesses

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(As of June 30, 2024)

* Including assets under construction

Please refer to the link below for more information.

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Power Generation Businesses (Renewable Energy Business, Gas-Fired Power Generation Business, Coal-Fired Power Generation Business, Oil-Fired Power Generation Business) as of June 30, 2024 (PDF 368KB)

Investment in Mainstream Renewable Power, which Develops Renewable Energy Businesses Globally

• Infrastructure Projects Business Unit

We are an investor in renewable energy company Mainstream Renewable Power Limited ("Mainstream") through its holding company Aker Horizons ASA ("Aker Horizons"), a Norwegian clean energy investor.
Mainstream is, as a developer of wind and solar generation assets, one of the leading companies in the renewable energy sector, in particular in Latin America and Africa. It has a successful track record of having developed 6.6 GW of generation capacity to financial close-ready stage, including offshore wind farms in UK. Currently, Mainstream has a portfolio of approximately 23.9 GW of high-quality energy assets in Latin America, Africa, and Asia-Pacific, which are currently operating, under-construction or in development phases. Mainstream recognizes energy transition as an opportunity to expand its global portfolio.

We will contribute to the growth of Mainstream and the enhancement of its corporate value by utilizing our know-how in the construction and operation of large-scale power plants around the world and our global customer network. Through this investment, we will promote the development of renewable energy power sources with a sense of scale, further improve the quality of our power generation portfolio, and accelerate the reduction of GHG emissions in society through our operations.

Investment in India's Large-Scale Renewable Energy Business

• Infrastructure Projects Business Unit

Through our wholly-owned subsidiary MIT Power India, we are an investor in the development of a large-scale renewable energy project promoted by ReNew Private Limited, the largest renewable energy company in India. The project will consist of three newly built wind farms in India (900 MW in total) and one solar power plant (400 MW plus a battery storage farm with a capacity of up to 100 MW). The project will provide 400 MW of electricity to Solar Energy Corporation of India Limited ("SECI"), an entity owned by the Indian Ministry of New & Renewable Energy, based on a 25-year power purchase agreement. While it is difficult for conventional renewable energy projects to commit stable electricity supply due to the intermittent nature of winds and solar irradiation, this Project commits electricity supply on a round-the-clock basis from a portfolio consisting of multiple wind and solar plus battery storage farms. This is the first of its kind in India ("round-the-clock scheme"). The total cost of the project will be around US$1.35 billion. The commercial operations started in phases site by site. Mitsui will contribute to the project by using its accumulated knowledge of the electric power business in Japan and other countries to ensure steady progress toward completion and the smooth start-up of commercial operations.
India, the third-largest emitter of GHG, declared its commitment to cut its emissions to net-zero by 2070 at the 26th Conference of Parties ("COP26") held in November 2021 and announced that it will raise its non-fossil energy capacity to 500 GW by 2030. This round-the-clock scheme Project, enabling electricity supply with 100% renewables, is in line with the Indian Government's policy and is expected to play an important role in the future to replace coal-fired generation currently dominant in India. Renewable energy is a business field that is likely to continue to expand in India, where continuous growth in population and GDP is expected. Through this project, we will contribute to solving the power shortage in India and encourage decarbonization.

Hydrogen Related

• Energy Solutions Business Unit

When hydrogen is consumed, it generates no greenhouse gases or environmentally harmful substances. Hydrogen is a focus of attention around the world as a clean fuel that does not generate an environmental burden. With our Energy Solutions Business Unit at the core, we are engaged in a cross-company collaboration utilizing the networks and knowledge of each business segment, working on our hydrogen business in a way that demonstrates our comprehensive strength. We regard the hydrogen business as an effective approach to achieve our net-zero emissions goal. We will work together with our stakeholders to build needed social infrastructure and create profitable businesses.

Green Hydrogen Production Project in Western Australia

• Energy Solutions Business Unit

Renewable hydrogen, which is produced from renewable energy, will play a pivotal role in industrial decarbonization and has significant potential as a clean energy source, as renewable hydrogen emits no CO2 in the production and burning process and can be used in various industries. We are participating in a green hydrogen production project in the Pilbara region of Western Australia. In this project, a joint venture between French energy major Engie S.A. and Mitsui will deploy a 10 MW electrolyzer powered by 18 MW of solar PV to generate and supply renewable hydrogen for an existing ammonia production facility owned by Yara Pilbara Fertiliser Pty Ltd ("YPF"), a wholly owned subsidiary of Yara International ASA, one of the largest producers of nitrogen-based mineral fertilizers on the globe. YPF will use the renewable hydrogen as a zero-carbon feedstock for ammonia production.

Green Hydrogen Production Business in Europe

• Performance Materials Business Unit

Decarbonization Solutions for the Mobility Sector

• Performance Materials Business Unit

Renewable Diesel and SAF Production in Europe

• Energy Solutions Business Unit

We will work to build value chains that leverage our strengths as a general trading company active across many industries. Examples of these strengths include our partnerships with host countries, our customer base that we have built up over many years, our marketing know-how, and our involvement in the Clean Fuel Ammonia Association.

Clean Ammonia Production Project (UAE)

• Energy Solutions Business Unit
• Basic Materials Business Unit

We participated in a clean ammonia production project with Abu Dhabi National Oil Company (ADNOC). The project is a partnership between ADNOC, Fertiglobe (a manufacturer and exporter of urea and ammonia), and GS Energy (a Korean energy-related business) and aims to produce clean ammonia from hydrogen processed from CO2 emissions during production in the TA'ZIZ Development Area in the UAE/Ruwais Industrial Zone. The project has already selected Italian company Technimont as the EPC contractor and started construction in July 2022, with production beginning in 2027.

Ammonia has been attracting attention as a zero-emission fuel that does not generate CO2 during burning, and also as a carrier for hydrogen. We are examining the potential to import low-carbon ammonia produced in this project to Japan and contribute to the realization of low-carbon power generation in Japan.
In the energy sector, we have been developing and managing liquified natural gas projects with ADNOC in Abu Dhabi since the 1970s. In addition, we have an approximately 50-year track record in handling products in our ammonia business and are the largest Japanese importer of ammonia. We will contribute to this project by utilizing the advantages and know-how obtained through such business.

Clean ammonia production project (U.S.)

• Basic Materials Business Unit
• Energy Solutions Business Unit

We have signed a joint development contract with CF Industries Holdings, Inc. to promote a new clean ammonia production project in the United States. The project, in which CF is a business partner, will produce clean ammonia in the Gulf of Mexico. Compared to the conventional ammonia production method, the project is expected to achieve a reduction of more than 60% in CO2 through CCUS^*. We will continue to engage in dialogue and consultations with various stakeholders through to the FID (final investment decision) in 2024.

* CCUS: Carbon dioxide Capture, Utilization and Storage

Distributed solar power generation

• Energy Solutions Business Unit

We have established a 100% subsidiary, Forefront Power, in California, the center of clean energy, and acquired the Commercial & Industrial Division (C&I) of SunEdison, which develops and operates a distributed solar power generation business, to advance new challenges at the forefront of the renewable energy business.

Forefront Power is working on an "Onsite Solar" business, which sells electricity from solar power facilities installed by customers to the customers themselves, and "Community Solar" business, which sells electricity to multiple customers from solar power facilities installed outside of customer sites. The company is also working on energy management services such as solar advising, third-party solar asset management services, and solar + storage services.

• Energy Business Unit II
• Infrastructure Projects Business Unit

Fukushima Gas Power Co., Ltd., our affiliate company, has two natural gas-fired power generation facilities at its Fukushima Natural Gas Power Plant at Soma, Fukushima Prefecture. These have a total power output of 1.18 million kW. The power generation facilities use a gas turbine combined-cycle system with high power generation efficiency. This combination of a gas turbine and a steam turbine generates a lower level of CO2 than coal-fired or gas turbine-only power generation methods.
This project is in line with Fukushima Prefecture's goals of the "introduction of energy with a low environmental impact" and "new urban development". Through the promotion of this project, Mitsui & Co. will contribute to the economic revitalization in the Hama-dori region of Fukushima prefecture to help in its ongoing recovery from the 2011 earthquake. We will continue to work on the sustainable and stable supply of resources that are essential for social development and the creation of a society that is in harmony with the environment.

• Mobility Business Unit I
• Energy Solutions Business Unit

Among the mobility (transportation) fields that we have defined as our new growth fields, we expect electrification (the shift to electric vehicles) to be particularly promising. In Europe, where the introduction of EVs is gathering momentum, we are building a comprehensive business model that supports the changeover to EVs, including infrastructure, and are expanding it in other regions as well.
We are organically linking several companies in which we have an interest in order to build a new business model that can provide comprehensive solutions. These include EV makers (CaetanoBus-Fabricação De Carroçarias S.A, Letenda Inc.), battery pack manufacturers (Forsee Power SA), and an energy management company that uses EV batteries (The Mobility House AG). For example, if a city considers switching its fixed-route buses to EV, we would like to help the city speed up its changeover to electric vehicles. In concrete terms, we can offer a comprehensive range of services including EV bus supply, battery leasing, and energy management. Furthermore, in future we are also considering businesses involved in the reuse and re-leasing of used batteries. We will begin these initiatives in Europe and the United States, and then expand them to Asia.

ZEV (Zero Emission Vehicle) Operations in Europe and India

• Mobility Business Unit I

CAETANOBUS - FABRICACAO DE CARROCARIAS, S.A. ("CaetanoBus") of Portugal, in which we have invested, has been developing electric buses since 2010, and has introduced EV ramp buses for airport passenger transportation, EV city buses and FC (fuel cell) city buses, mainly in Europe, to the market in stages, providing optimal solutions tailored to operations for a decarbonized society. We will continue looking to provide the optimal solutions suitable for operations seeking to achieve a carbon-free society.
In India, we have invested in Pinnacle Mobility Solutions Private Limited ("Pinnacle Mobility"), which is developing an electric bus and electric light commercial vehicle manufacturing and sales business under the EKA brand since 2023. Pinnacle Mobility will take on the challenge of creating demand for EVs in India, which is expected to grow in the future, and contribute to solving India's serious air pollution problem. With CaetanoBus and Pinnacle Mobility at the core of our ZEV business, we will further promote the electrification and decarbonization of mobility and contribute to the creation of a society in harmony with the environment.

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360° business innovation: FULL CHARGE AHEAD: Assembling an EV value chain for the smart-city era

Biodiesel Fuel Solution Equipment / Optimus' Vector System Technology

• Mobility Business Unit I

• Corporate Development Business Unit

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Circular Economy: Initiatives

Participation in the CCS Business

• Energy Business Unit I
• Energy Business Unit II
• Energy Solutions Business Unit

We are focusing on launching and promoting the CCS as a Service (CCSaaS) business as a core business of the current and next generation E&P business, in addition to reducing CO2 emissions from our own assets. We position the CCS/CCSaaS business, which leverages our expertise in the upstream oil and gas business and extensive business network, as one of our energy solution fields. Based on our experience in developing businesses related to CO2 separation, recovery, and storage, which are ahead of those in Europe, we are promoting the launch of the CCS business globally.

We are conducting investigations and considering the business viability of CCS in the Asia-Pacific region, including Japan, in collaboration with Kansai Electric Power Co., Inc., Chugoku Electric Power Co., Inc., Mitsubishi UBE Cement Corporation, and Resonac Holdings Corporation. In Malaysia, we have signed a contract with PETRONAS and TotalEnergies for the joint development of CO2 storage sites, focusing on the gas fields and surrounding areas off the Malay Peninsula, including a development plan based on the technical evaluation of CO2 underground storage, and optimization of logistics which includes transportation by liquefied CO2 ships and design of port facilities.

We are working on a joint study with Sempra Infrastructure, Total Energies, and Mitsubishi Corporation, who are partners in the Cameron LNG (liquefied natural gas) Project, aiming to commercialize CCS in Louisiana, USA, through Hackberry Carbon Sequestration, LLC (100% subsidiary of Sempra Infrastructure). This project mainly involves storing CO2 emitted from the Cameron LNG Project in underground areas near the project, which will contribute to reducing greenhouse gas emissions during LNG production. In addition, this study will also consider the possibility of receiving CO2 emissions from surrounding industries and storing them underground. Prior to the start of the study, in August 2021, we applied to the U.S. Environmental Protection Agency for permits for well drilling and CO2 storage of up to 2 million tons per year at the CCS project site.

We will continue to contribute to reducing CO2 emissions from each company through CCS and the supply of low-carbon LNG.

• [Topics] Mitsui Enters into Participation Agreement for Carbon Sequestration Project in the U.S. with Sempra Infrastructure, TotalEnergies, and Mitsubishi Corporation (May 24, 2022)
• [Topics] Mitsui and Kansai Electric Power Sign Memorandum of Understanding on CCS Feasibility Study(January 18, 2023)
• [Topics] Mitsui Concludes Memorandum of Understanding with Chugoku Electric Power on the Creation of a CCS Value Chain between Malaysia and Japan (February 19, 2024)
• [Topics] MOUs Concluded on Joint Studies with Mitsubishi UBE Cement and Resonac Concerning CCS Value Chain Development between Malaysia and Japan (April 2, 2024)

CCU — Producing Methanol in the U.S. that Effectively Uses CO2

• Basic Materials Business Unit

Our affiliate, Fairway Methanol LLC has begun the production of methanol by using carbon dioxide (CO2) emitted from plants surrounding the joint venture's facility. Fairway Methanol is expected to capture 180 thousand metric tons of CO2 and produce 130 thousand metric tons of low-carbon methanol per year, which brings its annual production capacity to 1.63 million metric tons per year.

This additional methanol production, using industry-derived CO2, is one of the carbon capture and utilization (CCU) projects that Mitsui has undertaken. The concept behind these projects considers CO2 as a resource that can be reused as a raw material, thus realizing carbon recycling and helping to reduce CO2 emissions into the atmosphere. This project provides Mitsui with another low-carbon solution in its methanol business portfolio, following the bio-methanol (mass-balance basis) production at Fairway Methanol and the e-methanol production at Solar Park Kasso, Denmark.

In our Medium-term Management Plan 2026, we identified Global Energy Transition as one of our Key Strategic Initiatives. In the course of building a next-generation fuel value chain, we assume that CCU fosters circularity by using emitted CO2 to create various chemical products that can reduce the need for fossil fuels and thereby contributes to the sustainable development of the whole of society.

Certifications

• Performance Materials Business Unit
• Energy Business Unit I

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Responsibilities to Customers: Acquisition of Environment-Related Certification in Company-Owned Forests "Mitsui's Forests", Forest Resources Business, etc.

We aim to invest in environmentally friendly buildings and make energy use in our existing buildings more efficient through environmental and energy-saving measures, in order to build a portfolio of properties that has a low environmental impact.

Otemachi One (Mitsui & CO. Building and Otemachi One Tower)

The DBJ Green Building Certification is a certification system that evaluates environmentally and socially conscious real estate. Otemachi One (Mitsui & CO. Building and Otemachi One Tower), an office building owned by our company and others, has been certified as" one of Japan's top-class, superior buildings exhibiting excellent environmental and social awareness "under the DBJ Green Building Certification.

Japan Logistics Fund, Inc.

• Corporate Development Business Unit

Japan Logistics Fund, Inc. ("JLF"), a listed REIT which is operated by our subsidiary Mitsui & Co., Logistics Partners Ltd., owns and manages 52 logistics facilities (as of March 2024).
With regard to JLF, we actively promote ESG initiatives in the management of logistics facilities. We believe that obtaining objective evaluations and certifications will enable us to understand the positioning and the challenges of JLF's ESG initiatives and allow us to further enhance our efforts, and we are working to obtain green building certification and improve the results of third-party evaluations.

Acquiring External Certification

GRESB Real Estate Assessment

The GRESB* is an annual benchmarking assessment, which measures the ESG integration of real estate companies and funds. In the 2023 assessment, Japan Logistics Fund, Inc. received the highest rating of "Five Stars". In addition, the company received a "Green Star" for the sixth consecutive year in both the "Management Component" which evaluates the company's policies and organizational structure for ESG promotion, and the "Performance component" which evaluates the company's environmental performance and tenant engagement at owned properties. Furthermore, in the GRESB disclosure evaluation, which measures the level of ESG information disclosure, the company was highly evaluated for its ESG information disclosure efforts and received the highest "A Level" rating.

MSCI ESG Ratings Evaluation

MSCI ESG Ratings researches, analyzes, and rates the extent to which companies adequately manage ESG-related risks and opportunities, and provides an overall corporate ESG rating on a seven-point scale from "AAA" to "CCC".
JLF received an "AA" rating in July 2023.

MSCI Japan ESG Select Leaders Index

MSCI Japan ESG Select Leaders Index is composed of companies elected by MSCI from among the constituents of the MSCI Japan IMI Index for excellence in ESG initiatives and has been selected by the Government Pension Investment Fund (GPIF) for its passive management index.
JLF is a constituent of the MSCI Japan ESG Select Leaders Index created and published by MSCI.

SBT for SME certification

JLF has established SCOPE 1.2 greenhouse gas emission reduction targets of 42% below the FY 2021 level by FY 2030 and net zero by FY 2050. Of these, the greenhouse gas emission reduction targets by FY 2030 were recognized by the SBT Initiative, an international organization, as following the goals of the Paris Agreement that "aims to keep the global average temperature well below 2°C above pre-industrial levels and pursue efforts to limit global warming to 1.5°C." JLF has received the SBT (Science Based Targets) for SME certification from the international SBT initiative in 2022.

Green Finance Framework Assessment

We have established the Green Finance Framework with the aim of further promoting sustainability-related initiatives through green finance and strengthening our fund-raising base by expanding the investor base interested in ESG investment. JLF has obtained a Green 1(F) (highest for JCR Green Finance Evaluation^*5) rating for the competence of its Green Finance Framework from Japan Credit Rating Agency, Ltd. (JCR)

Acquisition of Green Building Certifications

JLF aims to build a low environmental impact portfolio by investing in properties with low environmental impact, and improving energy efficiency through environmental and energy conservation measures in the management of its properties. In addition, when redeveloping owned properties (OBR), the company intends to obtain green building certification after the redevelopment. The company aims to achieve the following targets regarding the percentage of properties owned that have acquired Green Certifications (based on leasable floor area).

• Acquire green certifications in 90% of portfolio in FY 2025.

Percentage of Portfolio with Green Building Certification (as of March 31, 2024)

Please scroll horizontally to look at table below.

Type of certification	Number of properties	Leasable area (m2)	Percentage of portfolio (by area)
Certification for CASBEE for Real Estate*1	43	1,223,678.74	81.2%
BELS Certification*2	21	635,851.85	42.2%
CASBEE Certification for Buildings (New Construction)*3	1	41,968.06	2.8%
Percentage of portfolio with green building certification	47	1,330,878.72	88.3%

As some properties have multiple certifications, the total of the figures for each certification type does not equal the figure for the "Percentage of Green Building Certification".
*1 CASBEE is a method designed to comprehensively assess the environmental efficiency of buildings and promoted throughout Japan under the guidance of the Ministry of Land, Infrastructure Transport and Tourism. Certification for CASBEE for Real Estate is a system where third-party institutions examine and certify assessment results prepared in accordance with CASBEE for Real Estate. The certification rating is represented by the number of stars on a four-tier scale from five stars "★★★★★" ("S") to two stars "★★" ("B").
*2 BELS is a third-party certification system in Japan that indicates the energy efficiency of buildings. Specific indication method is stipulated in the guidelines for energy efficiency labels of buildings, BELS is evaluated based on the same guideline, and the assessment result is represented by a number of stars (one star "★" to five stars "★★★★★"); after April 2024, it will be shown in 7 levels (Level 0 to 6). A Net Zero Energy Building ("ZEB") is a building that aims at zero energy balance with considerably reduced annual energy consumption by saving as much energy as possible with better heat insulation, solar shading, natural energy and high-efficiency equipment, coupled with creating energy by photovoltaic power generation (or other energy generating methods), while maintaining a comfortable environment. In addition, in the BELS certification system, it is possible to obtain certification under 4 levels ("ZEB", Nearly ZEB, ZEB Ready, and ZEB Oriented).
*3 CASBEE Certification for Buildings (New Construction) is a system for evaluating the overall environmental performance of a building. It evaluates and rates the environmental performance of buildings based on energy and resource conservation, recycling and other environmental burden reductions as well as interior comfort and landscaping.

CASBEE

Yachiyo Logistics Center and Ichikawa Logistics Center II (following their redevelopment), and Yokohama Machida Logistics Center, each received an A rating under CASBEE.

Properties with Certification for CASBEE for Real Estate

Certification	Property
S	M-11 Yachiyo Logistics Center M-37 Fujisawa Logistics Center T-2 Osaka Fukuzaki Logistics Center
A	M-3 Hiratsuka Logistics Center M-4 ShinKiba Logistics Center M-5 Urayasu Chidori Logistics Center M-6 Funabashi Nishiura Logistics Center M-9 Narashino Logistics Center M-12 Yokohama Fukuura Logistics Center M-13 Yachiyo Logistics Center II M-16 Shinonome Logistics Center M-17 Narashino Logistics Center II M-18 Ichikawa Logistics Center II M-19 Souka Logistics Center M-21 Kashiwa Logistics Center M-22 Musashimurayama Logistics Center M-23 Kashiwa Logistics Center II M-24 Shin-Koyasu Logistics Center M-25 Misato Logistics Center M-26 Sagamihara Logistics Center M-27 Chiba Kita Logistics Center M-28 Chiba Kita Logistics Center II M-29 Urayasu Chidori Logistics Center III M-30 Zama Logistics Center M-31 Shinkiba Logistics Center II M-32 Yokohama Machida Logistics Center M-34 Shiroi Logistics Center M-35 Toda Logistics Center M-38 Hanyu Logistics Center M-39 Saitama Kisai Logistics Center M-40 Kazo Logistics Center M-42 Itabashi Logistics Center T-3 Kiyosu Logistics Center T-7 Fukuoka Hakozaki Futo Logistics Center T-9 Fukuoka Kashiihama Logistics Center T-10 Kasugai Logistics Center T-11 Takatsuki Logistics Center O-1 Maebashi Logistics Center O-6 Ishikari Logistics Center 2, 7
B+	M-20 Tatsumi Logistics Center M-36 Ichikawa Logistics Center III T-5 Komaki Logistics Center T-6 Komaki Logistics Center II O-6 Ishikari Logistics Center 10

Properties with BELS Certification

Certification	Property
Five Star "ZEB"	M-41 Kuki Logistics Center
Five Star ZEB Ready	M-2 Urayasu Logistics Center M-6 Funabashi Nishiura Logistics Center M-11 Yachiyo Logistics Center M-13 Yachiyo Logistics Center II M-17 Narashino Logistics Center II M-19 Souka Logistics Center M-21 Kashiwa Logistics Center M-22 Musashimurayama Logistics Center M-26 Sagamihara Logistics Center M-27 Chiba-kita Logistics Center M-30 Zama Logistics Center M-34 Shiroi Logistics Center M-37 Fujisawa Logistics Center T-3 Kiyosu Logistics Center T-6 Komaki Logistics Center II T-10 Kasugai Logistics Center T-12 Aisai Logistics Center
Five Star	T-42 Itabashi Logistics Center T-7 Fukuoka Hakozaki Futo Logistics Center

Properties with CASBEE Certification for Buildings (New Construction)

Certification	Property
A	M-2 Urayasu Logistics Center

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Japan Logistics Fund, Inc.: Certification

Mirai Corporation

• Corporate Development Business Unit

Mitsui Bussan & Idera Partners Co., Ltd., our affiliate which manages the assets of listed Real Estate Investment Trust MIRAI Corporation, is promoting sustainability-related measures that include ongoing participation in real estate assessments, and green financing, in accordance with our Sustainability Policy.

Acquiring External Certification

GRESB Real Estate Assessment

Listed Real Estate Investment Trust MIRAI Corporation earned "4 Stars" in the GRESB Real Estate Assessment, based on the relative evaluation of its overall score. MIRAI also earned a "Green Star" in both the "Management Component" which evaluates the company's policies and organizational structure for ESG promotion, and the "Performance component" which evaluates the company's environmental performance and tenant engagement at owned properties.

Percentage of environmental certifications acquired

The percentage of environmental certifications in the portfolio is as follows.

(As of March 1, 2024)

Based on gross floor area
71.4%

Properties with DBJ Green Building Certification

Mirai Corporation has acquired DJB Green Building Certification for eight properties.

List of properties that have acquired DJB Green Building Certification

Certification	Year	Property
4 Stars Properties with exceptionally high environmental and social awareness	2022	Shinjuku Eastside Square
3 Stars Properties with excellent environmental and social awareness	2021	Shinagawa Seaside Parktower
	2022	Rokko Island DC
	2020	Tokyo Front Terrace
	2021	Mi-Nara
	2022	BizMiiX Yodoyabashi
2 Star Properties with high environmental and social awareness	2023	MI Terrace Nagoya-Fushimi
1 Star Properties with satisfactory environmental and social awareness	2020	MI Terrace Nagoya-Fushimi

List of Properties with CASBEE Real Estate Assessment Certification

Certification	Property
S	MI Terrace Hamamatsu MI Terrace Sendai Hirose-dori
A	Aeon Kasai Ehime Building-Hiroshima

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MIRAI Corporation: Third-party Accreditation

Forest Sinks and Emission Credits Business

• Energy Solutions Business Unit

Generation and sale of carbon credits through regeneration of native vegetation

Climate Friendly carbon farming project site

We have invested in Climate Friendly Pty Ltd, which generates and sells carbon credits through vegetation restoration on farms in Australia. The regenerated farms absorb CO2 from the atmosphere and Climate Friendly sells the resulting GHG reductions as carbon credits. They had achieved 20 million tons of GHG reductions by 2020 and aim for 100 million tons of reductions by 2025, making them the largest carbon credit developer in the country. The vegetation restoration projects also have secondary effects such as protecting ecosystems and biodiversity, and improving soil, contributing to the Australian government's GHG reduction goals. The demand for credit for private companies to reduce emissions is also expected to continue to grow. Australia is an important country for our company's business, and we actively work to create opportunities for GHG emission reductions from our group companies.

Generation and Sale of Forest Management J-Credits through Proper Forest Management

One of the forests managed by the Okayama Forest Maintenance Public Corporation to generate J-Credits

Mitsui has been working on the generation and sale of J-Credits (forest J-Credits) by conducting appropriate forest management in Japan as part of our efforts to address the issue of climate change by applying industrial solutions.

Since 2019, we have lobbied for regulatory reforms to enable large-scale J-Credit creation using aerial survey data and satellite data, and we have commenced commercialization activities by using our 45,000 hectares of corporate-owned forests across Japan. Currently, we are promoting joint creation projects with multiple forestry corporations (such as the Okayama Forest Maintenance Public Corporation) and local governments. As of June 2024, we have completed the project registration of forest J-Credits for about 5 million tons of CO2, which accounts for approximately 60% of the total expected J-Credit certification by the fiscal year 2050. We have started making sales since we obtained the credit certification and issuance last year. We provide these J-Credits as a means for GHG-emitting companies to meet their offset needs for emissions that cannot be reduced through their own GHG reduction efforts, such as energy-saving equipment and the adoption of renewable energy sources, as a way to achieve carbon-neutral goals. Moreover, by utilizing the revenue from these J-Credits for proper forest management, we aim to enhance the multifaceted value of regional forest resources, solve forest management challenges through the revitalization of the forestry management business, and contribute to the revitalization of local economies. We will continue to actively engage in the creation and sale of credits moving forward.

Performance

GHG Emissions

Mitsui has carried out GHG emissions surveys in Japan since the fiscal year ended March 2006, and overseas since the fiscal year ended March 2009. Previously, we disclosed Scope 1 and Scope 2 GHG emissions under the GHG Protocol^*1 control standards^*2. Since the fiscal year ended March 2020, we have additionally disclosed Scope 3, Category 15 (indirect emissions associated with investments), which is emissions from investments in energy, mineral and metal resources and thermal power generation projects not included in Scope 1 and 2, and other affiliated company business areas that fall under Scope 1 and 2. Furthermore, since the fiscal year ending March 2024, we have expanded disclosure to include all applicable Scope 3 categories. We have enhanced the scope of disclosures to promote continuous reviews of our portfolio in response to stakeholders' wishes and in consideration of our risk tolerance to climate change, which also takes into account Mitsui's strategy of using our wide range of business activities to take on the challenge of new opportunities in an agile way.

*1 GHG Protocol is a GHG emissions calculation and reporting standard formulated through an initiative led by the WRI (World Resources Institute) and the WBCSD (World Business Council for Sustainable Development).
*2 Coverage: Head Office and all offices in Japan, all consolidated subsidiaries (100%) and Un-incorporated Joint Ventures.

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• Environmental Performance Data

Our Company-Owned Forests, "Mitsui's Forests," Absorb and Fixate 160,000 Tons of Carbon Dioxide Annually

It is estimated that Mitsui's Forests absorb and fixate approximately 160,000 tons (including emission credits expected to be certified) of CO2 per year, and that they have accumulated approximately 10 million tons^*1. We contribute to the mitigation of climate change risk through sustainable forest management. The public value of Mitsui's Forests is estimated to be approximately 200 billion yen^*2.

*1 Calculation based on the Tier 2 approach in Chapter 4, "Forest Land," in Volume 4 of the "2019 Refinement to the 2006 IPCC Guidelines on National Greenhouse Gas Inventories." In the past, the calculation was based on the Tier 1 approach in the 2006 IPCC Guidelines, but we changed the calculation method in the fiscal year ended March 31, 2021, to improve accuracy.
*2 Calculation based on the "Comprehensive Assessment of Biodiversity and Ecosystem Services" published by the Ministry of Environment