Initiatives in the Forest Resource Business

Together with business partners, Mitsui is engaged in the forestry business in Australia and Chile (approximately 13,000 hectares in total as of March 31, 2025) with the aim of ensuring the stable supply of wood chips, the raw material for paper. The business manages forestry resources responsibly, including carrying out measures in consideration of biodiversity protection, and has acquired international forest certification from organizations such as FSC^®. In addition, in our forestry business, we are promoting the generation of emission credits through the conversion to tree species that are expected to increase the GHG (greenhouse gas) reduction effect.
We invest in New Forests Pty Ltd., one of the world’s largest forestry asset management companies, with more than AUD 11.7 billion in forest assets under management. New Forests' vision is to provide long-term and stable investment returns to investors and realize a sustainable future by investing and managing forestry resources in harmony with the circular economy and local communities. We will work with New Forests to expand our efforts towards the sustainable development of society.

• Mitsui & Co. (Australia) Ltd.: Group Companies (Mitsui Bussan Woodchip Oceania)

Initiatives to Generate and Sell Carbon Credits Through Regeneration of Vegetation in Native Forests

Climate Friendly carbon farming project site

We are an investor in Climate Friendly, a company that generates and sells carbon credits through the regeneration of vegetation on farms in Australia. Climate Friendly is involved in GHG reduction projects through land use in Australia.

Climate Friendly is one of the largest carbon farming project service-providers in Australia. It had already achieved 20 million tons of GHG reduction by 2020, and is aiming to achieve a 100-million-ton cumulative GHG reduction by 2025. The projects supported by Climate Friendly to restore and regenerate vegetation are expected to play an important role in achieving the Australian government's GHG reduction target. This will be achieved by absorbing and sequestering CO₂ from the atmosphere, and also improving soil quality and preserving ecosystems and biodiversity.

Demand for emission reduction credits from the private sector has been growing, and is expected to continue to expand steadily. Australia is one of the most important countries for Mitsui's business, and we will work proactively to reduce the GHG footprint of 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. This comprises part of our efforts to address the issue of climate change through 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 have begun 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 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 been making sales since obtaining credit certification and issuance since 2023. These J-Credits are provided as a way for GHG-emitting companies to meet their emission offset needs that cannot be fulfilled through their own GHG reduction efforts, such as energy-saving devices and the adoption of renewable energy sources, to achieve their carbon-neutral targets. Moreover, utilizing the revenue from these J-Credits for proper forest management, we aim to raise the multifaceted value of forests through regional forestry resources, solve forest management challenges through revitalizing the forestry management business, and help to breathe life back into local economies. We will continue to create and sell credits from now on.

Operational and Management Initiatives for Mitsui's Forests

We have acquired an international forest certification (FSC^®) for Mitsui's forests and the company that manages them. Forest certification comprises forest management (FM) certification, which is third-party certification awarded to forests that are being managed appropriately, and chain of custody (CoC) certification, which certifies that timber from certified forests is being handled appropriately all the way through to finished products. Mitsui Bussan has acquired FM certification, and Mitsui Bussan Forest has attained CoC certification. Mitsui Bussan Forest Co., Ltd., which manages Mitsui's Forests, engages in sustainable forest management through formulating and implementing management plans based on international standards. Logs and other products from these forests are also handled by Mitsui Bussan Forest, which has acquired CoC certification, creating a chain of forest certification. Mitsui Bussan Forest uses a unique "zoning" management method in which areas are divided into categories based on various characteristics, such as topography and tree species, and then managed according to these categories. Categories include "Harvest-oriented Sustainable Forests," "Naturally Regenerated Forests," and "Biodiversity Conservation Forests"; each type of forest is managed appropriately based on a management policy for each category. "Biodiversity Conservation Forests" in particular have been identified as forests with high biodiversity value, so they are divided into the four categories of "Special Conservation Forests," "Water and Soil Conservation Forests," "Environmental Conservation Forests," and "Cultural Conservation Forests." Management and forestry operations are carried out in a way that fully takes their biodiversity into account.

• Mitsui's Forests: Initiatives for Biodiversity

Contributing to the Development of High-Productivity, Sustainable Agriculture through Environmentally-Friendly Biological Crop Protection

At our subsidiary Certis USA (now Certis Biologicals, hereinafter "Certis Bio") we manufacture and sell biological crop protection. Biological crop protection utilize the abilities of microorganisms, natural enemies, parasites, plant extracts, and other properties to combat insect pests and weeds, transforming them into agents that are effective and easy to apply. They can be used to create an environment in which insect pests and weeds find it difficult to thrive, and restrict their growth so they do not cause economically significant damage.
In an age where environmental pollution, food safety, and social acceptance have become such major societal issues, regulations on chemical crop protection have been tightened due to their potential impact on the human body and on ecosystems. This has spawned significant demand for safer agricultural methods. Although Certis Bio produces biological crop protection, we do not believe that chemical crop protection should be reduced to zero. Instead, biological pesticides make it possible to prevent pest infestations while also reducing the harm to humans and domestic animals, the environment, and biodiversity. However, they do have disadvantages: they have relatively limited residual efficacy, and it can be difficult to decide the best time to apply them. Chemical crop protection can compensate for these deficiencies because they are often quick-acting and easier to use. On the other hand, excessive use of chemical crop protection can reduce the biodiversity of the microorganisms in the soil, creating an environment that is more conducive to the growth of pathogenic bacteria and insect pests. Therefore, it is important to recognize Integrated Pest Management (IPM), which is the skillful use of both biological and chemical crop protection. By promoting IPM through our crop protection business, we contribute to the development of a highly productive and sustainable agricultural system.

Initiatives in Regenerative Agriculture

We have invested in RRG Nature Based Solution LLC ("RRG NBS"), a U.S.-based company with an integrated global involvement in regenerative agriculture projects at all stages from project formation through to design and management.
Recent years have seen an increasing focus on regenerative agriculture^* as an approach that contributes to agricultural sustainability, productivity, and profitability through achieving better harmony with nature and regenerating the natural environment. This is done with climate change countermeasures in agriculture and by conserving ecosystems and water resources. Particularly significant is the fact that major food and beverage manufacturers are starting to call for a shift to raw materials derived from regenerative agriculture, with the aim of reducing environmental impacts and ensuring reliable access to raw materials in the future.
Through this investment in RRG NBS, Mitsui will help to stabilize world food production and conserve water resources and natural capital by combining its accumulated knowledge of agri-inputs with new solutions, leading to a transition to regenerative agriculture.

*Agriculture that aims to restore the natural environment, including water resources and ecosystems, through soil restoration and improvement.

Efforts to Protect Water Resources During Shale Gas and Shale Oil Extraction

Through consolidated subsidiaries, Mitsui is involved in the development and production of shale gas and shale oil. The oil and gas are extracted using hydraulic fracturing (fracking), and Mitsui E&P USA gives due care to water resources by ensuring that water for hydraulic fracturing (fracking water) is properly used (including the recycling of wastewater where applicable), managed, and discharged.

Efforts to Improve Water Usage Rates in the Copper Business

We are engaged in Chile’s copper mining industry. The country is a high-risk region in terms of water stress levels, and because the operations require a large amount of water, we are promoting the introduction of technologies to maximize the efficiency of water use in the operations of each mine and are working to reduce the amount of new water withdrawal.
At the Los Bronces copper mine (located in Capital Province, central Chile), in collaboration with Anglo American Plc, Codelco, and Mitsubishi Corporation, we reached a water reuse rate of 90% in 2023, mainly due to efforts to extract and reuse water from tailings. Furthermore, an agreement has been signed with Aguas Pacifico to desalinate and supply 500 liters per second to the Los Bronces copper mine from 2026, and there are plans to supply 45% or more of the mine’s water usage and to provide water to approximately 40,000 local residents facing a dwindling water source. In addition, measures are being taken to expand the use of desalinated seawater, and to utilize industrial effluent and treated sewage water procured from third parties. Also, at the Collahuasi copper mine (located in Tarapaca Province, northern Chile), the second largest copper mine in the world by production volume, with Anglo American and Glencore as partners, the water reuse rate reached 79% in 2023. In addition to increasing the water reuse rate from the tailings, Collahuasi plans to build a seawater desalination plant that will operate from 2026. We will continue to contribute to Chile’s development through our business while striving to conserve its water resources.

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*For Los Bronces Copper Mine, the figures include tailings water procured from third parties, and treated sewage, etc. (Recycle + Reuse).

Water Withdrawals in Projects

Water withdrawal intensity for copper concentrate production

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Water withdrawal intensity in sugar manufacturing

KASET PHOL SUGAR

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Water Consumption Per Unit of Livestock Processing

Prifoods Co., LTD.

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Efforts to Reduce Water Use and Recycle Effluents - Improving Water Efficiency at Offices

At the Head Office, we use 100%-recycled drainage water for toilet flushing to promote reduction in water consumption. In addition, we have set the goal of improving water use efficiency by reducing the amount of water used at the Head Office and branches and offices in Japan (non-consolidated) to less than the amount used in the previous fiscal year.

Progress against targets

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• Environmental Performance Data: Water Consumption (Water Withdrawal, Discharge, Water Recycling)

Collaborating with NGOs/NPOs

Support through an NPO for the Development of a Rainwater Reuse System to Supply Safe Drinking Water in Water-Stressed Regions

In mountainous areas and on remote islands in Bohol Province in the Philippines, safe drinking water is difficult to access and water stress is high. Water from wells in coastal areas and on remote islands is unsuitable for drinking because it is mixed with seawater. Boat trips to buy water are a part of daily life for island residents, imposing a heavy burden in terms of both cost and time. To help solve this problem, the Mitsui & Co. Environment Fund has provided a grant to Ikaw Ako, an NPO, to fund an initiative to provide rainwater storage and purification facilities so residents in this region can have easier access to safe drinking water. To create sustainable water supply systems, tanks of the optimal size for each community will be designed and built by the residents, allowing the facilities to be maintained and managed locally. Through this project, we are helping to solve the challenges facing water-stressed regions.

Costs Associated with Water-Related Risks

Water recycling cost to Mitsui & Co. as a non-consolidated entity (Head Office): 4.9 million Japanese Yen (FY March 2025)

Compliance with Environmental Laws and Regulations Related to Water Resources

In the fiscal year ended March 31, 2025, there were no environmental accidents at Mitsui or its consolidated subsidiaries.

Saving Resources and Promoting Resource Circulation

1. Increase the waste recycling rate at the Head Office and Osaka Office of Mitsui & Co. (non-consolidated) to over 90% by FY March 2030.
2. 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.

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• Environmental Performance Data: Waste and Paper Consumption (Waste amount, Recycling rate)

Initiatives in our Chemicals Business

Chemical Safety Management in our Chemicals Business

In our Chemicals Segment, we position chemical substance management as an important aspect of trade compliance alongside security trade control. The aim is to guard human health and safety, and to protect the global environment (specifically water, soil, air, and the ecosystems of animals and plants). While taking into consideration the laws and regulations governing peripheral business sectors such as pharmaceuticals and food products, we will update the information we have about chemical substance management laws and regulations so that we can keep abreast of increasingly tightening Japanese and international regulatory trends. Regarding each Business Unit’s projects, we consider their impact on the environment in advance, including measures to control toxic emissions, and take sufficient steps before proceeding with new business.

Voluntary Efforts to Comply with Regulations Related to Chemical Substance Management and Safety Management of Chemical Substances

Chemicals can be dangerous or hazardous to the human body and the environment. In our Chemicals Segment, we comply with the following specific laws and regulations: the Act on the Evaluation of Chemical Substances and Regulations of Their Manufacture, etc. (CSCL); the Industrial Safety and Health Act; the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof (laws concerning Pollutant Release and Transfer Register/PRTR); the Poisonous and Deleterious Substances Control Act; and the Fire Service Act. We also comply with a wide range of environmental management systems.
We comprehensively identify all chemicals used by using the Globally Harmonized System (GHS) of Classification and Labeling of Chemicals.
We evaluate all raw materials from suppliers to understand if they need to be registered with government bodies, such as the Environmental Protection Agency (EPA) in the United States, and the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) program in the European Union, and take necessary actions to ensure such registrations.
We have disclosed all registrations and uses related to laws and regulations. We have prepared management and operational procedure manuals as part of our in-house regulations. Based on the provisions of each law and regulation, we inform our supply chain of chemical hazard information by providing safety data sheets (SDS) for all chemical products we distribute, and display this information on labels to ensure that people are properly notified.
In addition, in our Chemicals Segment, we have obtained certifications related to quality and safety management (e.g., ISO9001) at almost all of our production sites in consolidated subsidiaries.

Range of Chemicals that We Plan to Gradually Phase Out

In our chemicals business, we have phased out all chemicals of concern prior to regulations and no longer handle any "substances that need to be phased out". We are contributing to the creation of codes of conduct for the chemical industry regarding the handling of chemical substances that need to be phased out. One specific example of this was our participation in prior consultations on the revision of the 2018 amended Ozone Layer Protection Law (amendment to the quantity allocation aimed at the reduction of manufacturing and amount of import of HFC substitutes) with the Fluoride Gases Management Office, Chemical Management Policy Division, Manufacturing Industries Bureau of the Ministry of Economy, Trade and Industry (which has jurisdiction over this Law) in the Trade Control Committee (for companies importing or exporting chemicals involving large sums of money) of the Japan Chemical Exporters and Importers Association with which we cooperate.

Substitutes with Chemicals for Substances of Concern

There are no specific records of introducing substitutes for substances of concern by Mitsui or its consolidated subsidiaries.

Compliance and Training for Chemicals Business Laws and Regulations

Evaluation of the hazards and toxicity of chemical substances is a social responsibility of all businesses that handle chemical substances, including Mitsui & Co. All products and raw materials that we handle are subject to such evaluations. We continue to recognize that the responsibility of a non-manufacturing importer of chemicals distributed in the Japanese market is exactly the same as that of a chemical manufacturer.
All consolidated and non-consolidated subsidiaries handling chemicals are provided with regular training on laws and regulations related to the management of chemical substances, and on the Waste Management and Public Cleansing Law to ensure appropriate waste management practices. As a trader of chemicals, during the bimonthly training sessions we explain the need to communicate hazard and toxicity information correctly throughout the supply chain. Many people voluntarily participate in each session in our endeavor to communicate the importance of proper chemical substance management. By holding frequent in-house training sessions on the laws affecting the chemicals business and on other topics, we continue to promote awareness of evaluating the hazards and toxicity of chemical substances, as well as appropriate labeling and display of information on such substances.

Management System for Responding to Emergencies and Accidents

There were no reports of any significant violations of environmental laws and regulations, or any fines or sanctions imposed during the fiscal year ending March 2025.

• Environmental Management

Training Seminars on Environmental Laws and Regulations

As we work to accelerate environmental initiatives across the global Group, raising the environmental awareness of each of our officers and employees of Mitsui, its subsidiaries, and its affiliated companies at all levels is vital. We use initiatives such as holding regular seminars and training sessions on environmental law to do so.

Lectures and Training Seminars Held in FY March 2025

Measures for the Waste Disposal Law

Mitsui operates in compliance with the Waste Management and Public Cleansing Law (also referred to as the "Waste Disposal Law" or "Waste Law"). To properly manage the disposal of industrial waste generated through logistics operations and general waste from business activities, we have formulated a workflow for handling industrial waste and general waste from business activities, and have prepared FAQ documents. Such tools and documents are used by relevant divisions and departments. We ensure that officers and employees increase their awareness and understanding of proper waste disposal practices, covering such matters as how to select waste management subcontractors and how to issue and manage manifests.

For other environment-related laws and regulations, please refer to the link below.

• Environmental Management: Compliance with Environment-Related Laws and Regulations