Sumitomo Forestry : WBCSD Releases a Roadmap towards Nature-PositiveSumitomo Forestry the only Japanese company to take part in formulation

December 9, 2022

For immediate release Sumitomo Forestry Co., Ltd.

WBCSD Releases a Roadmap towards Nature-Positive

Sumitomo Forestry the only Japanese company to take part in formulation

Sumitomo Forestry Co., Ltd. (President and Representative Director: Toshiro Mitsuyoshi;

Headquarters: Chiyoda-ku, Tokyo; hereinafter Sumitomo Forestry) took part as the only Japanese company in formulating the Forest Sector Nature-Positive Roadmap released by the World Business Council for Sustainable Development (Headquarters: Genova, Switzerland; hereinafter WBCSD).

WBCSD, a global, CEO-led community working toward attaining sustainable development, was founded by the world's business leaders in 1995, following the Earth Summit held in Rio de Janeiro, Brazil in 1992. WBCSD has a membership comprising approximately 220 of the world's leading sustainable businesses and engages in a wide variety of actions as a global organization, such as formulating guidelines and proposing policies to promote the

shift toward a sustainable society. WBCSD works on both national and regional levels, and entered into partnership with Keidanren in Japan in 2003.

The roadmap was developed by the Forest Solutions Group (hereinafter FSG), an internal initiative of the WBCSD comprised of 15 global companies in the forest sector. Sumitomo Forestry has been a member of the FSG since January 2019 and participated in the development of the Forest Sector SDG Roadmap (July 2019) to achieve the Sustainable Development Goals (SDGs) as well as the Forest Sector Net Zero Roadmap (November 2021) for a low carbon economy.

The goal of the latest roadmap is to attain zero net loss of nature from 2020 and net positive by 2030. To achieve this goal, the roadmap urges each business in the forest sector to not only maintain and expand sustainable working forests but also build a circular business model by maximizing the recovery and recycling of materials and products. Case examples featured in the roadmap include Sumitomo Forestry's use of water-level management technology in tropical peatlands in West Kalimantan, Indonesia. The reforestation project of the Company is pesticide, chemical fertilizer free operation that takes into consideration the surrounding river basin.

FSG began formulating the roadmap in January 2022 in recognition of the fact that the forest sector, which benefits from forests, is both responsible for and able to bear substantial contribution to forest conservation and restoration amid the on-going ecosystem deterioration resulting from climate

change, agricultural land development, and other factors. FSG consulted with approximately 30 stakeholders, including international organizations and private companies, during the formulation process to integrate third parties' opinions into the roadmap with the aim of providing guidance for the forest sector toward achieving nature-positive. Following the formulation of the roadmap (phase one), FSG will start considering how to develop and implement further effective measures, such as those with quantitative targets.

Sumitomo Forestry is also preparing to address the Task Force on Nature-related Financial Disclosures (TNFD)*1and the Science Based Targets for Nature (SBTN)*2. The company also supports and endorses global initiatives including the United Nations Global Compact*3, Task Force on Climate-related Financial Disclosures (TCFD)*4, Science Based Targets (SBT)*5, and RE100*6. It is working with the international community to realize a sustainable society that needs to be addressed on a global scale.

The Sumitomo Forestry Group announced "Mission TREEING 2030," a long-term vision that incorporates the Group's future vision into a long-term business concept in preparation for the SDGs target year of 2030, in order to realize a decarbonized society. The Group is working on its medium- term management plan, "Mission TREEING 2030 Phase 1" (2022 - 2024), and will confirm striving to further integrate business and ESG to realize a sustainable society.

*1 TNFD has been developed on the framework of TCFD and is planned to be introduced in 2023.

*2 SBTN is SBT for nature, an initiative aimed at setting science-based targets. Its initial guidance, the SBTs for Nature, was released in September 2020. SBTN plans to release version 1 in 2023.

*3 The United Nations Global Compact is based on globally-established agreements including the Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. The 10 principles of the Global Compact include support and respect for the protection of human rights, elimination of forced and compulsory labor, and abolition of child labor, among others. Sumitomo Forestry has been participating in this initiative since December 2008.

*4 Under the Financial Stability Board's instruction, TCFD was established in April 2015. It presents a framework for voluntary disclosures of information on climate-related risks and opportunities for businesses. Sumitomo Forestry endorsed TCFD in July 2018 and started the scenario analysis in accordance with TCFD's proposal in the same year.

*5 SBT is an initiative that was established by the United Nations Global Compact, CDP, World Resources Institute, and World Wide Fund for Nature in 2015 with the aim of promoting science-based GHG emissions reduction targets for limiting temperature increases from pre-industrial levels. In June 2017, Sumitomo Forestry declared its intention to develop an SBT to SBTi and established a new Group-widelong-term GHG emissions reduction target.

*6 RE100 is a global initiative managed by two international environmental NGOs, The Climate Group and CDP. In March 2020, Sumitomo Forestry joined the RE100 initiative, which aims for 100% renewable energy for electricity used in business operations, and aims to achieve 100% renewable energy for electricity used in the Group's business activities and fuel used in its power generation business by 2040.

Detailed information about WBCSD https://www.wbcsd.org/

Detailed information about FGS of WBCSDhttps://www.wbcsd.org/Sector-Projects/Forest-Solutions-Group

Detailed information about WBCSD Forest Sector Nature-Positive Roadmap https://www.wbcsd.org/Sector-Projects/Forest-Solutions-Group/Resources/Forest-Sector-Nature-Positive-Roadmap

Detailed information about Sumitomo Forestry Group's activities towards the achievement of a sustainable society, "Sustainability Report 2022" https://sfc.jp/english/sustainability/

Sumitomo Forestry Group's participation in and endorsement of initiatives https://sfc.jp/english/sustainability/management/vision.html