We are promoting and expanding our efforts to address our supply chain management through participation in initiatives. Participation in each initiative is decided after confirming that it is consistent with our basic policy and initiatives for supply chain management.

CEFLEX (Circular economy for flexible packaging)

CEFLEX is a European collaborative consortium of companies and associations representing the entire value chain of flexible packaging. CEFLEX is exploring the development of infrastructure systems to collect, sort, and recycle plastic flexible packaging. Mitsui has participated in the consortium since 2018 as one of more than 200 companies that are involved in the plastic packaging materials value chain. Mitsui has been playing active roles in various work groups and will continue to contribute to the realization of a circular economy through its participation in CEFLEX.

ASI (Aluminium Stewardship Initiative)

ASI was established in 2012 with a vision of maximizing the contribution of aluminum to a sustainable society. As of May 2022, approximately 226 companies and groups have joined ASI, including a variety of stakeholders such as aluminum producers and users and the International Aluminium Institute. Its purpose is to increase sustainability in the aluminum supply chain and contribute to ESG engagement by formulating international standards and establishing certification systems. Mitsui joined in January 2020 and supports these initiatives as a member.

Forest Stewardship Council^® (FSC^®)

The Forest Stewardship Council^® (FSC^®) is an international non-profit organization that promotes management of the world's forests in a way that is environmentally appropriate, economically viable, and socially beneficial, including with regard to respect for human rights. Mitsui has obtained FSC^® forest management (FM) certification (FSC^®-C057355) at all 74 of its forests, which in total approximately 44,000 hectares, while Mitsui Bussan Forest Co., Ltd., a Mitsui subsidiary, has obtained Chain of Custody (CoC) certification for the processing and distribution of cut lumber (FSC^®-C031328). As one of the top private-sector suppliers in terms of volume of FSC^®-certified Japanese-grown lumber, Mitsui is helping to promote FSC^® in Japan and to discuss and draft the Japanese version of principles, standards, and risk assessments. Mitsui has obtained FSC^® certification for its forest resources business as well, and promotes responsible management of forest resources.

Together for Sustainability (TfS)

Together for Sustainability (TfS) is a non-profit organization established mainly by major European chemical companies and engaged in sustainability-related activities. Since its establishment in 2011, TfS has carried out sustainability assessments and audits across entire chemical supply chains, from raw materials procurement to logistics. Mitsui & Co., Ltd. joined Together for Sustainability as the first Japanese company to join TfS. Mitsui will accelerate its sustainability-related initiatives in European markets, which are leading the world in this area. Mitsui will also use knowledge gained in said markets to improve sustainability across entire supply chains in global markets, especially in Asia and Japan.

RSPO (Roundtable on Sustainable Palm Oil)

The Roundtable on Sustainable Palm Oil (RSPO) is a non-profit organization established to promote the sustainable production and utilization of palm oil through the conservation of tropical rain forests and biodiversity. Palm oil production has been linked to the destruction of tropical forests through the development of oil palm plantations, as well as human rights issues. As a business that handles palm oil, Mitsui agrees with the RSPO's philosophy of contributing to sustainability through industry. Since joining the organization as an ordinary member in 2008, we have been collaborating on business-based sustainable procurement initiatives that take into account the conservation of tropical forests and biodiversity, respect for the rights of indigenous and local peoples, and other considerations. A sustainability-focused procurement code, including specific standards for palm oil, has been formulated for the 2021 Olympic and Paralympic Games in Tokyo. In connection with this, Mitsui representatives as members of an oil and fat industry association verified progress on and promoted initiatives related to the RSPO and activities under the Malaysia Sustainable Palm Oil (MSPO) and Indonesia Sustainable Palm Oil (ISPO) systems.

EcoVadis

EcoVadis is a ratings provider that has developed its own platform for evaluating the performance of companies in terms of environmental and social sustainability. Certain Mitsui group companies are registered on the EcoVadis platform and are evaluated on their performance regarding sustainability.

Sedex (Supplier Ethical Data Exchange)

Sedex is an NPO established in 2001 primarily by British retailers and auditing companies and it has become the top global ethical services provider. It provides registered companies with the world's largest information platform for managing and sharing data concerning ethical supply chains and it also offers globally recognized evaluations of responsible supply chain activities, known as SMETA audits, which audit aspects such as labor rights, occupational health and safety, environmental performance, and business ethics. Certain Mitsui group companies use the services provided by Sedex.

We believe that raising domestic animals in a comfortable environment reduces stress on the animals and diseases, leading to greater productivity and safe animal products. Therefore, we strive to operate our businesses with consideration for animal welfare by respecting the recommendations of the World Organisation for Animal Health and complying with local laws.
Prifoods Co., Ltd., a consolidated subsidiary of Mitsui, raises broiler chickens in accordance with the Ministry of Agriculture, Forestry and Fisheries' Management Guidelines for Raising Broiler Chickens According to the Basic Approach to Animal Welfare, based on its belief that broiler chickens raised in a comfortable environment will be less affected by stress and disease, resulting in the production of safe and reliable chicken. Specifically, it creates a comfortable environments that put the lowest amount of stress possible on the chickens while they are in the growth stage and pays detailed attention to nutritional management, rearing environments, and health management.
Prifoods' production and manufacturing management structure, which includes its handling of animal welfare, has been evaluated by third party organizations. In its main production area, 14 farms have received domestic certification in the form of the JGAP group certification(*1), and its processing plant and 20 farms have received international certification in the form of the world's first SQF-TSA multisite certification(*2).

*1. JGAP (Japan Good Agricultural Practice) is a Japanese certification recognizing appropriate farm management in terms of farm management, food safety, animal hygiene, environmental conservation, worker safety, human rights and welfare, and animal welfare in accordance with the Ministry of Agriculture, Forestry and Fisheries' standards. In March 2020, Prifoods received this certification for 14 farms in Aomori Prefecture.
*2. SQF-TSA (Safe Quality Food-Tokyo Sustainability Addendum) is an addendum to the international SQF certification. It recognizes that in addition to ensuring food safety and quality under the SQF certification, the recipient also meets the food safety and hygiene standards, which include animal welfare, stipulated by the Tokyo Organising Committee of the Olympic and Paralympic Games. A processing plant and 20 farms operated by Prifoods in Aomori Prefecture acquired SQF certification in October 2010 and in November 2019, they received the world's first SQF-TSA certification.

We recognize the risk that overfishing, illegal fishery operations and destructive fishing practices can lead to a loss of biodiversity and have a severe impact on local communities in marine areas, as well as the risk to the environment if aquaculture businesses insufficiently manage water intake, feed supply, and excrement.
Therefore, we have made it a priority that our aquaculture businesses incorporate a sustainability perspective in order to protect marine resources and realize stable and sustainable supplies of marine products. As a group that handles marine products, we work to raise and procure these products in a responsible manner, giving consideration to the conservation of marine resources and ocean environments and to coexistence with local communities.

Mitsui subsidiary Toho Bussan Kaisha Ltd, is primarily engaged in trading marine products and it requires that the marine products in its commercial transactions have CoC certification to ensures traceability. CoC certification assures that certified products have been managed appropriately at every stage of production, from manufacturing to processing and distribution, and it also guarantees that there is no contamination by uncertified products and that labeling is authentic. Toho Bussan strives to procure sustainable products and it has acquired both MSC and ASC CoC certification. It has also concluded an endorser agreement with the Global Seafood Alliance (renamed from the Global Aquaculture Alliance in April 2021), a U.S.-based NGO that operates BAP, a certification system that is widely recognized in the U.S., and it is working to promote the spread of BAP certified products.

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In 2015, we invested in Salmones Multiexport S. A. ("Salmex"), a Chilean company that farms, processes, and sells Atlantic salmon. Salmex applies a vertically integrated business model to the farming and sale of salmon, including its mainstay product of Atlantic salmon, and it exports to Brazil, Japan, China, and other Asian countries, and particularly to the United States, amid growing demand for healthy protein sources. It has also acquired various certifications relating to environmental performance, quality, occupational safety, and traceability, including OHSAS18001*, ISO14001*, ISO9001*, BAP, and Global GAP. Since the early 1990's, Chilean salmon aquaculture has provided the largest amount of salmon exports in the world after Norway. During this time, in addition to establishing a fish-disease and quarantine control system, government and industry have worked together to reduce the use of chemicals. As a result, significant reductions have been achieved, and Salmex is continuing with its own efforts to reduce chemical consumption. Also, the use of fishmeal and fish oil in feed has been greatly reduced by substituting it with raw materials such as soybean meal and vegetable oils. In recent years, fish meal has accounted for less than 10% of feed. As demand for high-quality, safe and secure protein sources continues to increase worldwide, we will work with our suppliers to develop a sustainable aquaculture industry that can coexist harmoniously with local communities, local residents, and ecosystems.

*Certification covers the management and operation of fish farms and plants.

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In order to raise awareness regarding our Sustainable Supply Chain Policy and supply chain management initiatives among suppliers of Mitsui and consolidated subsidiaries, as well as employees of Mitsui and consolidated subsidiaries engaged in procurement, in March 2022, we invited an external speaker from the international conservation NGO WWF Japan (World Wide Fund for Nature Japan) to hold an online training session on environmental and human rights issues concerning the natural rubber, palm oil, timber and paper products businesses. A total of 130 employees from Mitsui and suppliers participated in the training and were required to understand and implement initiatives to reduce environmental impact, including conserving biodiversity and eliminating deforestation, and to promote human rights due diligence, including protecting the customary rights of indigenous and local peoples, and improving labor environments.

In the fiscal year ending March 2023, we invited Daisuke Takahashi, an attorney at Shinwa Sohgoh Law Offices who supervised the "Sustainable Supply Chain Management Handbook," to give an online training to Mitsui's business partners and employees, and those of Mitsui's consolidated subsidiaries. The training explained Mitsui's human rights policy and initiatives and how to conduct due diligence related to human rights in supply chain management. Approximately 250 business partners and employees participated in the training, gaining a deeper understanding of these issues. We plans to continue providing regular training to suppliers and employees involved in procurement.

We consider interactive communication with our suppliers to be very important, so we work to build relationships of trust and strengthen our supply chain management by working jointly on ideas for improvements with our partners, wherever needed. For this reason, since the fiscal year ended March 2012, we have been conducting surveys targeting the suppliers of Mitsui and our subsidiaries to confirm the status of their business in regard to social issues such as climate change, biodiversity, environmental management, human rights, labor practices, and occupational health and safety, and to provide correction if necessary. In the fiscal year ended March 2020, we began surveying suppliers that handle products in high-risk business domains as part of human rights due diligence.
In addition to the surveys, since the fiscal year ended March 2015, we have been regularly carrying out on-site audits of suppliers by external experts. Additionally inspecting compliance with our Sustainable Supply Chain Policy using a checklist, we also employ independent experts to participate in conducting interviews with persons in charge and carrying out observations of manufacturing plants and related facilities. When required, we also provide advice and guidance following the on-site surveys.

Our auditing efforts did not detect any major environmental problems or human rights violations, but there were cases in which understanding of the Guiding Principles on Business and Human Rights, as well as international norms and local laws and regulations, was insufficient and we also found suppliers who did not have clear policies, such as an approach to occupational health and safety or to human rights. We improved the understanding of these suppliers regarding international norms and other matters by reiterating the content of our Sustainable Supply Chain Policy, alongside other actions such as proposing the formulation of policies.

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Starting from the fiscal year ended March 2021, we are carrying out internal supply chain management surveys of our subsidiaries in order to ensure they properly understand our Sustainable Supply Chain Policy and that it is implemented by their suppliers. The surveys investigate matters such as how well the group's policies are understood and what criteria are being used to check suppliers. Feedback is provided to subsidiaries together with explanations of policy details aimed at improving understanding.

For the fiscal year ended March 2022 survey, we selected Mitsui Norin Co., Ltd. ("Mitsui Norin") and Mitsui Kaset Phol Sugar Limited ("KPS"), a Thailand-based sugar manufacturing company, and conducted online surveys. Through interviews with managers and employees, we explained our approach to supply chain management and reiterated our requirement that our policies be accepted and implemented, while at the same time checking aspects such as to what degree our Sustainable Supply Chain Policy is understood, the status of sending the policy to suppliers, standards for selecting new suppliers and accompanying management frameworks, and whether companies have internal regulations and policies.

Through our survey of Mitsui Norin, we confirmed various ESG-related initiatives, including the formulation of an environmental policy, supply chain management through the use of a dedicated tea plantation system, employee training, and initiatives to set and achieve targets at factories. Through our survey of KPS, we confirmed various ESG-related initiatives, including the formulation of a code of conduct and sustainable supply chain policy, supply chain management through contracted sugarcane farmers, CSR activities including communication with neighboring residents, and employee training. We recommended that Mitsui Norin and KPS from here on address supply chain management in relation to human rights in addition to quality control, which is their primary objective.

Surveys carried out to date have confirmed that affiliated companies are practicing supply chain management based on our Sustainable Supply Chain Policy. However, it was also revealed that the policy had not yet been sent to some suppliers, so we responded by belatedly sending the policy to these suppliers and requesting that they understand and implement it.

We continuously carry out awareness raising activities and training for employees regarding the importance of human rights and labor issues and the details of our policies in order to raise sensitivity to issues, including human rights and labor issues, and to prevent problems before they can happen.

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*As of October 2022

• Human Rights: Human Rights Training
• Compliance and Integrity: Compliance Education and Training