Stance on Sustainability

Sustainability Promotion Structure
Global Code of Conduct & Ethics (COCE)

Toyota Tsusho has positioned its corporate philosophy of "Living and prospering together with people, society, and the planet to be a value-generating corporation that contributes to the creation of prosperous societies" as its highest unchanging concept, which should be handed down through the generations. The company has enhanced its corporate value by engaging in environment-friendly businesses and developing human resources who are valuable to and contribute to society.

The world today is facing such problems as abnormal weather related to climate change, forest destruction, resource exhaustion, and human rights issues. When conducting business activities, the environment and society do not simply need to be "considered," rather, they are "prerequisites" for engaging in business, essentially making them targets for our business today. For companies, environmental and social issues are both risks and opportunities. In this context, Toyota Tsusho is developing its conventional corporate social responsibility (CSR) activities and enhancing its initiatives aimed at realizing a sustainable society with a long-term perspective based on ESG viewpoints.

For Toyota Tsusho, sustainability is synonymous with good management. In striving toward the manifestation of our corporate philosophy, our sustainability management is defined as our continuous and sustainable growth, enhancing value created for society and the environment, and value created by Toyota Tsusho with its customers.

While engaging in sustainable management, Toyota Tsusho identified Key Sustainability Issues (Materiality*) that it will address with priority. Focusing on these six material issues, we are tackling various social issues to achieve our corporate philosophy by pursuing our Global Vision to "Be the Right ONE" and become a one-and-only, essential presence.

Sustainability Promotion Structure

Promotion Structure

As shown in the diagram below, in Toyota Tsusho's sustainability management promotion structure, the president & CEO (Chairperson) convenes the Sustainability Committee under the supervision of the Board of Directors meeting, and reports the discussions and decisions of the committee to the Board of Directors meeting. In addition, members of the Board have abundant competence and experience in ESG-related issues, and a system is in place to ensure appropriate supervision by the Board of Directors meeting. Furthermore, each relevant meeting body^*1 discusses specific themes related to sustainability, and in particular, climate change is discussed at the Carbon Neutrality Promotion Meeting, which is chaired by the president & CEO and meets monthly to discuss strategies for the transition to a decarbonized society.

Under the supervision of the CSO (Hiroshi Tominaga, member of the Board), who is the officer in charge of sustainability, the Sustainability Management Group of the Corporate Planning Department serves as the secretariat and implements sustainability promotion measures in cooperation with each sales division, Administrative Unit, and group company.

The planning department of each sales division appoints a staff member responsible for sustainability who collaborates as appropriate with the Sustainability Management Group. In April 2021, we established the Sustainability Administrative Unit Subcommittee to strengthen cooperation among related departments in the Administrative Unit. The subcommittee meets once every two months to share information and discuss various issues at the General Manager level and take prompt action.

Sustainability Committee

The Sustainability Committee meets annually. The committee is chaired by the president & CEO and includes executive vice presidents, sales division CEOs, and relevant Administrative Unit officers as well as four outside members of the Board as advisors and the chairman of the Board and Audit & Supervisory Board members (full-time) as observers.
The committee determines important sustainability-related policies, then discusses and decides on social trends and the company's response to them.
The main agenda for the committee meeting in December 2024 is listed below, and a report on the deliberations was presented at the Board of Directors meeting held in December 2024.

[Main Topics Discussed at the Sustainability Committee]

Confirmation of Toyota Tsusho's basic stance on sustainability
Necessity of initiatives that expand scope from the Toyota Tsusho Group to suppliers
Reporting and responding to issues specific to overseas sites

[Main Comments from the Committee Chair and Outside Members of the Board]

Communicate appropriately to stakeholders that elements of sustainability are incorporated into the growth strategy
Advance sustainability initiatives that extend to suppliers
Work with suppliers from the same perspective, with an attitude of partnership
Continue to promote initiatives with an awareness of external requirements and the quantification of impacts on society

[Future Initiatives]

Identify issues related to human rights and the environment in the supply chain and implement measures to mitigate risks
Ensure appropriate information disclosure and strengthen dialogue with internal and external stakeholders
Continuously review materiality KPIs in light of changes in the external environment

In addition, an Administrative Unit subcommittee meeting is held once every two months for the heads of departments related to the Administrative Unit to steadily address sustainability issues, including matters discussed and decided by the committee.

Spreading Awareness Among Employees

At Toyota Tsusho, management communicates policies with a sense of storytelling so that employees can feel that they are contributing to sustainability through their own work. In addition, "Contribution to Communities, Society, and the Future" is reflected in personnel evaluations to encourage changes in awareness and behavior.
In the fiscal year ending March 31, 2025, we established the "Carbon Neutral Award" in addition to the existing recognition system. Furthermore, to raise understanding and awareness, we promoted cross-departmental dialogue, video training, and briefing sessions on themes such as human rights due diligence and compliance.

Global Code of Conduct & Ethics (COCE)

Toyota Tsusho Corporation established the Global Code of Conduct & Ethics (COCE) in July 2016, following a resolution by the Board of Directors in April of the same year, as a concrete and easy-to-understand expression of the Behavioral Guidelines that supports the Corporate Philosophy. The COCE was formulated by pooling the wisdom of Group employees in Japan and overseas. To ensure that the COCE is well-known and ingrained throughout the entire Group, we have built a global network. Together with the global members of this network, we continuously carry out various awareness activities, including the distribution of the President's COCE message, the publication of the COCE booklet in 23 different languages, the annual COCE pledge activities that we conduct every year, and training sessions for executives and employees at different levels. By ensuring that every executives and employee of the Toyota Tsusho Group around the world thoroughly understands and practices the COCE, the Group's common code of conduct, we seek to realize our Corporate Philosophy, Mission and Global Vision.

Global Code of Conduct & Ethics (10 creeds)

1.We are committed to "ANZEN" to create a safe and healthy work environment.

The safety and health of all of our members is the foundation of our corporate activities.

Therefore,

We must take appropriate measures to protect the safety and health of each other and any person affected by us in the course of our corporate activities.
We must comply with all safety and health related laws, regulations and internal standards.
We will enthusiastically participate in training and initiatives for safety and health.
We will utilize and develop our safety and health management system.

2.We will comply with all applicable laws and regulations; including anti-corruption, anti-trust and competition law, and trade laws and regulations.

Compliance is a must in all of our corporate activities. A single non-compliant act may severely harm and damage our reputation and corporate value.

Therefore,

We must become familiar with all laws and regulations (including international rules) that govern our area of responsibility and strictly comply with them at all times.
We must seek the advice of our legal department or qualified legal counsel in instances where we are unsure.
We must report any non-compliance through the appropriate channels provided.

A single violation of any anti-corruption, anti-trust and competition law or trade law and regulation may lead to severe penalties, as well as criminal charges and unrecoverable reputational damage to both the individual and the company.

Therefore,

We must fully educate ourselves on all applicable anti-corruption, anti-trust and competition law, and trade laws and regulations, and strictly comply with them at all times.
We must not offer, give or receive gifts, meals, entertainment, donations or contributions for any illegal or unethical purposes.
We must compete fairly in the market and avoid any activities which may lead to the violation of anti-trust/competition laws and regulations.
We must exercise extra caution whenever we meet with competitors and especially avoid any discussions on sensitive information including market share, marketing, price and pricing strategies.
We must acknowledge that certain items or destinations or parties might be embargoed or prohibited and shall take extra care to assure that all international transactions are conducted in accordance with applicable laws and regulations.

3.We are committed to accurate financial reporting.

As a member of a publicly listed company, the accuracy of our financial information is essential both for us and for our stakeholders.

Therefore,

We must take extra care to verify the numbers we provide or submit.
We must follow applicable accounting principles.
We must disclose our financial information in a timely, accurate and non-misleading manner.
We must keep reliable, accurate and verifiable records of all transactions.

4.We are accountable for compliance with all company rules.

We must understand and follow all company rules.
We must account for any breach of company rules, and understand that such breach may lead to disciplinary action.

5.We will act with integrity, honesty and transparency, and protect and develop trust among all stakeholders.

As a good corporate citizen, we commit to honesty, integrity, and transparency beyond the laws and rules. By this commitment, we believe that trust will be fostered with all stakeholders and will serve as the foundation of our corporate activities.

Therefore,

We will not only pursue our profit. We will take into consideration the interest of diverse stakeholders and strive to win trust from them.
We will undertake only those corporate activities that will withstand local and international ethical scrutiny.
We must respect and protect confidential information, personal data, intellectual property and trade secrets of ours and others.
We must not deal with any person that engages in or is connected to any organized crime or unlawful activity.
We must not make false or misleading statements and will not make derogatory behaviors and remarks about others. If there is a mistake, we will correct it immediately.
We must disclose any conflict of interest regarding our responsibilities to the company and must not prioritize personal interests over the company's interests.
We must not use the company's property for purposes other than that of the company.
We will not engage or be involved in insider trading.

6.We will contribute to the sustainable development of society.

We deeply believe that the key to our sustainable success is harmonizing and developing together with the people, the society and the earth.

Therefore,

Working together with local business, community and governmental authorities around the world, we will keep ourselves aware of the local and global needs and contribute to building a sustainable foundation for industrial and economic development.
We will vigorously promote social contribution activities around the world, particularly in education, social welfare and environment.

7. We will promote and pursue environmentally friendly corporate activities.

Harmonizing our corporate activities with the environment is rooted deeply in our fundamental philosophy.

Therefore,

We must strictly comply with local and global environmental laws and standards.
We will develop environmentally friendly technologies, services, products and business models.
We will reduce waste, re-use products and recycle resources in conducting our corporate activities.
We will duly consider environmental impact in conducting our corporate activities.
We will cautiously monitor and assess the impact of our corporate activities on the environment through our environmental management system.

8.We will add value through innovation and "Kaizen" (continuous improvement).

To grow in a sustainable way and contribute to the changing society, it is essential for us to commit to creating new ideas and value for the society and continuously improve our corporate activities.

Therefore,

We will interconnect and share different ideas, technologies and expertise, through our global network and value chains.
We will continuously improve our business models and processes through PDCA and Kaizen activities.
We will enthusiastically expand our innovation and Kaizen throughout our value chain and in new business fields.

9.We will respect human rights.

Respecting people is rooted deeply in our fundamental philosophy. We have no tolerance for any human rights abuses.

Especially:

We must not engage or be involved in any business that is against human dignity.
We must not discriminate based on race, color, gender, religion or national origin.
We must not be involved in any child labor, human trafficking or any other kind of forced or involuntary labor.
We must not tolerate any form of harassment.
We must not deal with any person that engages in or is involved with any human rights abuses.

10.We will embrace diversity and inclusion within our company and society.

We believe that diversity and inclusion are the source of innovation and growth. Our diversity enables us to leverage different perspectives in order to respond to the increasing dynamics of the business environment and customer needs worldwide.

Therefore,

We will promote a diverse workplace where people from different races, national origins, genders and ages actively work together.
We will promote equal opportunity to all members regardless of their race, national origin or gender.
We will promote open communication throughout and between all levels of our members and organizations.
We will enhance our post-merger integration expertise to gain a competitive advantage.