Independent Practitioner’s Assurance

Environmental performance indicators marked with a star (★) for FY2025 (the year ended March 2026) have received independent practitioner’s assurance from KPMG AZSA Sustainability Co., Ltd.

Independent Assurance Report

Reporting Boundary

• For “GHG Emissions”, the boundary has been on a consolidated basis and included Sumitomo Corporation, consolidated subsidiaries and joint operations, based on operational control approach in the GHG Protocol (2004) since FY2023. The same boundary is applied to environmental indicators such as “Energy Consumption”, “Electricity Consumption”, “Water Withdrawal”, “Water Discharge”, and “Waste Emissions”.
  Thus, we include all emissions from businesses only when we have operational control over the businesses from FY2023 instead of the method that we applied until FY2022, which we include emissions from joint operations corresponding to the investment ratio as of the end of March.
• The boundary of “Non-consolidated (in Japan)” under “Environment (Resources and Waste)” and “Environment (Others)” include the head office, domestic branches, and sub-branches.

Environment (Climate Change)

GHG Emissions (Scope 1, 2)

• Scope 1 includes emissions from both energy-related CO2 and non energy-related CO2 and GHGs other than CO2.
• GHG emissions quantification is subject to uncertainty when measuring activity data, determining emission factors, and considering scientific uncertainty inherent in the Global Warming Potentials.
• CO2 emission factors for electricity: (market based method)
  (Non-consolidated in Japan) Basic emission factors of individual power companies (adjusted for non-fossil power sources) have been used since FY2024. Adjusted emission factors were used from FY2021 to FY2023.
  (Consolidated subsidiaries in Japan) The average emission factors of all power companies.
  (Overseas) Emission factors from electricity generation are based on the latest country-specific statistics provided by the IEA (International Energy Agency). For FY2025 results, the factors are derived from 2023 data listed in "Emissions Factors 2025". A power generation company has been using emission factors published by its country of location since FY2024.
• CO2 emission factors other than those from electricity generation are based on a manual for GHG emissions accounting, reporting, and disclosure systems published by Japan’s Ministry of the Environment.
• The breakdown of 7,284 thousand t-CO2e from Scope 1 and Scope 2 in FY2025 by business activity is 659 thousand t-CO2e for business other than power generation and 6,626 thousand t-CO2e for power generation.

GHG Emissions（Scope 1 <Non energy-related CO2 and GHGs other than CO2>）

• Until FY2022, we had been calculating Scope 1 (other than energy-related CO2) including our subsidiaries’ emissions on the condition that they emitted more than 3,000 t-CO2e in total of each GHG in accordance with “Calculation, Reporting, and Disclosure System” of Ministry of the Environment of Japan. We abolished the 3,000 t-CO2e threshold in FY2023 and have calculated all emissions except for minor emission since then.

GHG Emissions（Scope 3）

For GHG emissions (Scope 3), please refer to the following link.

GHG emissions (Scope 3)

Energy Consumption, Electricity Consumption

• Energy consumption has included energy derived from biomass fuels since FY2023, but did not include it before FY2022.
• Energy consumption from biomass fuel used at biomass power plants is calculated by using the higher heating value (HHV) in FY2025, while it was calculated by using the lower heating value (LHV) before FY2024. For comparability, the total energy consumption in FY2025 would be approximately 89,352 thousand GJ if we used LHV.
• Energy conversion factor from electricity consumption: 3.6 (MJ/kWh).
• Energy conversion factors from other than electricity consumption are based on the Act on Rationalizing Energy use and Shifting to Non-fossil Energy in Japan.
• Within the boundary of environmental data, electricity consumption includes the electricity purchased from power generation companies and generated from renewable energy sources (excluding biomass) which is consumed in-house.
• The amount of electricity consumption purchased from other companies and the amount of electricity generated in-house which was derived from renewable energy sources (excluding biomass fuels for self-generated and self-consumed use) was 160,221 MWh in FY2025.
• The main reason for the decrease in electricity consumption in FY2025 compared to FY2024 is a revision in the treatment of electricity consumption at data centers. For further details, electricity consumption derived from equipment over which data center users have legal right of energy management (housing/colocation services) is excluded from our electricity consumption. For comparability, electricity consumption in FY2025 would be 1,391,418 MWh if we applied the same calculation methodology as in FY2024. GHG emissions derived from the excluded electricity consumption is newly included in our Category 13 of Scope 3, as it is related to our activities.

Environment (Water Resources)

Water Withdrawal

• Of the 1,624,946 thousand m³ of water withdrawal in FY2025, we obtained third-party assurance for 1,605,917 thousand m³★ of water withdrawal excluding the withdrawal for 25 companies in Europe and Americas fresh produce business, for which partial estimates have been adopted.
• ”Components of Water Sources” is not subject to assurance engagement.

Water Withdrawal in Water-Stressed Areas (Components of Water Withdrawal)

•  ”Water Withdrawal in Water-Stressed Areas” is aggregated locations with a water risk level of 3 (High) or higher as water-stressed areas on the World Resources Institute (WRI)'s "WRI Aqueduct".
• ”Water Withdrawal in Water-Stressed Areas” is not subject to assurance engagement.

Water Discharge

• ”Water Discharge” is not subject to assurance engagement.

Environment (Resources and Waste)

• Waste emissions are for general waste from business operations; industrial waste and valuable resources are not included.

Environment (Others)