● Basic Approach to Climate Change

We, Itochu Enex Group, have been delivering energy and services to people stably for more than 50 years under our Corporate Philosophy, "The Best Partner for Life and Society: with Energy, with the Car, with the Home." We also got involved in environmental business and next-generation energy at an early stage in response to the rapid movement toward a carbon-free society. In 2021, we formulated the Sustainability Policy, and further, identified climate change actions as a material issue that we should prioritize and address. We are implementing an action plan to contribute to the creation of a decarbonized society by accelerating initiatives to solve issues related to sustainability in a Group-wide manner in the medium to long term.
Then, we have recognized the importance of disclosing climate-related financial information and expressed our support for the TCFD* recommendations. Additionally, we will identify the risks and opportunities that climate change affects our business activities, conduct a scenario analyze and disclose them based on the concept of TCFD recommendations. We will continue to enhance our initiatives by maintaining our management strategy of positioning climate change actions as new business opportunities. We will review our disclosures based on the TCFD recommendations appropriately and continue to disclose the information properly.

● Governance

We discuss the climate change problem, including our policies on handling the risks and opportunities related to climate change, our greenhouse gas (GHG) reduction targets, and initiatives for reducing GHG emissions at meetings of the Sustainability Committee where we deliberate overall sustainability issues including issues related to climate change. Chaired by an Executive Director, this committee operates in a way that enables the Board of Directors to monitor important management themes and important matters are reported to the Board of Directors as necessary.

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● Strategy

At the Itochu Enex Group, we view various opportunities and risks associated with climate change
as one of the important perspectives to be applied when formulating our business strategy. We will
incorporate its consideration of the impact of climate change from medium- and long-term
perspectives into its formulation of business plans.

 *See Disclosures Based on the TCFD Recommendations

● Risk management

Itochu Enex Co., Ltd.'s Risk Management Committee is the management advisory committee which
identifies and assesses risks that materially impact our management and businesses as priority risks
under the company-wide risk management framework. We discuss and monitor both climate change
risks and opportunities and deliberate them from the perspectives of both strategy formulation and the
operation of individual businesses, with the Sustainability Committee playing a leading role. The
discussions mainly take place in the Management Advisory Conference, and reports are provided to
the Board of Directors as necessary.

● Metrics and targets

The Itochu Enex Group aims to reduce our GHG emissions by 50% (from the FY2018 level) by
2030 and achieve carbon neutrality by 2050. We also contribute to society as a whole's reduction of
GHG emissions by reducing emissions from the entire supply chain and through our businesses,
aiming for zero offset. Moving forward, we will manage progress in the reduction of GHG emissions,
report it to the Board of Directors, and disclose information about our progress every fiscal year.

● Initiatives Within the Group

・ Reduction of Environmental Impact in Logistics Operations: Responsibility as a specified consignor

ITOCHU ENEX has been designated as a specified consignor based on the revised Act on Rationalizing Energy Use. In compliance with the Act, we have annually reported our energy saving plan and our results to the responsible state minister since FY2008 and formulate and implement plans to reduce CO2 emissions with the goal of reducing our annual average energy consumption by 1% or more over the medium-to-long term in terms of emissions intensity.

・ Eco-activity promoting at office

Our head quarter (27th to 29th floors of the Kasumigaseki Building, Chiyoda-ku, Tokyo) received an "AAA" rating in 2023 as well as in 2022, in the "Evaluation of Global Warming Countermeasures for Specified Tenant Businesses" by the Tokyo Metropolitan Government. This is evaluated with energy saving system and measures of each office tenants in Tokyo, on a 6 level evaluation, and the “AAA” is the second highest rating. We keep promoting eco-activity at all our offices.

・ Reducing Our Environmental Impact: Introduction of Solar power and GTL at Worksites

● Collaboration with Outside Initiatives

・ Participation in the TCFD Consortium

We also participate in the TCFD Consortium that was established as a forum for discussion among companies and financial institutions that support the TCFD recommendations and the Ministry of Economy, Trade and Industry, the Ministry of the Environment, and the Financial Services Agency are involved as observers.

・ Participation in Green × Digital Consortium

We are participating in the Green × Digital Consortium, which aims to achieve carbon neutrality by 2050 through initiatives to digitize environment-related fields and create new business models to optimize Japan's industry and society.

・ Responding to CDP

We actively disseminate information on our sustainability initiatives to various stakeholders. As part of this, we have participated in the CDP (NGO that is widely recognized around the world as a global standard,) and have been responding to climate change questionnaires since FY2019.