Sumitomo Forestry : Makes Climate Change A List for Fifth Consecutive Year Achieves Highest Rating in CDP 2020

December 9, 2020

For immediate release

Sumitomo Forestry Co., Ltd.

Sumitomo Forestry Makes Climate Change A List for

Fifth Consecutive Year

Achieves Highest Rating in CDP 2020

Sumitomo Forestry Co., Ltd. (President and Representative Director: Toshiro Mitsuyoshi; Headquarters: Chiyoda-ku, Tokyo; hereinafter Sumitomo Forestry) announced that it has been selected as a Climate Change A List company for the fifth consecutive year. This is the highest evaluation from CDP *1, a non-governmental organization that aims to realize a sustainable society.

The Climate Change A List comprises companies evaluated as world leaders for conducting exceptional activities in response to climate change. In 2020, the survey targeted approximately 9,500 companies worldwide. Sumitomo Forestry was one of the 53 Japanese companies among the 270 companies worldwide which made the Climate Change A List.

CDP is one of the world's leading environmental, social, and governance (ESG) evaluation organizations in regard to the greenhouse gas emissions of companies and their climate change strategies. CDP evaluates companies' activities to reduce greenhouse gas emissions and measures to alleviate climate change, based on their responses to questionnaires. Since 2016, when the scoring system changed to eight ratings from A to D-, Sumitomo Forestry has been consistently selected in the A List.

Sumitomo Forestry's long-termtargets concerning reduction of greenhouse gas emissions were approved by the Science Based Targets (SBT) initiative as targets with a scientific basis, and the Sumitomo Forestry Group is undertaking initiatives aimed at a 21% reduction in greenhouse gas emissions by 2030 compared with 2017. In March 2020, Sumitomo Forestry also joined the international initiative RE100 that aims to have companies utilize 100% renewable energy for electricity used in their operations by 2040. The Group has also announced its support for the Task Force on Climate-related Financial Disclosures (TCFD)*2. Sumitomo Forestry is also engaged in scenario analysis on the impact that climate change will have on the company and is working to disclose this information.

Going forward, the Sumitomo Forestry Group will continue to undertake measures against climate change through its business activities and contribute to the realization of a sustainable and prosperous society.

1 CDP

CDP is a non-governmental organization established in London in 2000 that promotes the reduction of greenhouse gas emissions, protection of water resources, and conservation of forests by companies and governments. It partners with institutional investors with US$106 trillion in assets to promote the disclosure and management of information relating to environmental impacts by companies with the aim of preventing climate change. W ebsite: https://www.cdp.net

2 TCFD

TCFD is a task force, established under the Financial Stability Board (FSB) at the request of G20 finance ministers and central bank governors, concerned with the private sector -led disclosure of climate-related information. In June 2017, it announced its proposal to understand and disclose the financial impact of risks and opportunities brought by climate change, gaining support from over 1,600 corporate and government bodies worldwide (as of December 2020). W ebsite: https://www.fsb-tcfd.org/