P.43 Initiatives for Disclosure

43 02. Foundations for Accelerating Transformation

Annual Financial Report｜ https://www.sumitomocorp.com/-/media/Files/hq/ir/report/yuho/2025/202603yuho.pdf?sc_lang=en ▶

Initiatives for Disclosure

Initiatives for disclosing sustainability information

We are working to enhance our sustainability-related disclosures based on international disclosure frameworks. In FY2025, we began conforming with Japanʼs sustainability disclosure standards developed by the Sustainability Standards Board of Japan (SSBJ), which are consistent with the international standards developed by the International Sustainability Standards Board (ISSB). Specifically, we are progressively disclosing information in line with the Theme-based Sustainability Disclosure Standard No. 1 “General Disclosures” and the Theme-based Sustainability Disclosure Standard No. 2 “Climate-related Disclosures.” Based on these standards, we identify businesses that are material from a financial impact perspective and analyze the financial impacts, strategies, and mitigation measures associated with the selected risks and opportunities. At the same time, we are strengthening our governance and risk management frameworks to ensure that these risks and opportunities are addressed in a timely and effective manner. We are also steadily advancing our natural capital disclosures by building on our TNFD-based reporting and beginning to prepare disclosures in anticipation of future SSBJ disclosure requirements. Going forward, we will strengthen our intelligence capabilities to accurately capture social trends, deepen dialogue with our stakeholders, and pursue approaches to disclosure that foster the sustainable enhancement of corporate value.

Initiatives to date

• Climate change:
• Identified opportunities and confirmed business strategies for wide-ranging sectors significantly affected by changing business conditions
• Boundary of Scenario analysis:

Expanded to 22 businesses in 6 sectors to disclose

• Disclosed financial impact indicators for selected sectors
• Coal-fired power generation:

Investment/guarantee balances

• LNG upstream interests: Exposure
• Thermal coal and coking coal upstream interests: Exposure
• Completed Scope 3 calculations
• Nature: Early adoption of TNFD and trial disclosure
• Human rights: Conducted human rights due diligence and disclosed progress
• Built and strengthened information-gathering processes related to the above

Initiatives toward FY2026

• Identify important businesses and grasp individual risks and opportunities from a financial impact perspective
• Disclose sustainability information with significant impact on our businesses (including financial impacts)
• Assess and compile information on the financial impacts,

strategies and mitigation measures, and metrics and targets for identified risks and opportunities

• Strengthen risk management and governance frameworks to ensure timely and appropriate execution of the above

Climate-related disclosures ahead of mandatory

reporting under the SSBJ Standards To appropriately identify climate-related risks and opportunities and incorporate them into our business activities, we endorsed the recommendations of the TCFD in March 2019. We are now enhancing our disclosures in preparation for mandatory disclosure requirements under the SSBJ Standards. For further details, please refer to our FY2025 Annual Financial Report.

Governance

The Board of Directors is responsible for making key management decisions and supervising business execution, taking into account risks and opportunities related to climate change. In accordance with the Companyʼs internal regulations, the Management Council and Executive Officers evaluate and manage climate-related risks and opportunities across the business portfolio and individual businesses. They also make decisions and execute business operations based on those assessments.

Strategy

In light of the global consensus reflected in the Paris Agreement, we established our Policies on Climate Change Issues to support societyʼs transition to carbon neutrality, and we promote our business activities accordingly. In February 2026, we updated our carbon neutrality targets to align with emission categories in the GHG Protocol in order to strengthen accountability, reflecting progress in the calculation and disclosure of Scope 3 emissions and in anticipation of adopting the SSBJ standards. Taking into account the business model of each Group business, we identify climate- related risks and opportunities that could reasonably be expected to affect the Groupʼs outlook (see the following page for details).

Risk management

We identify and assess various physical risks, such as reduced crop yields and operational disruptions due to flooding. We also identify transition risks, such as business contraction associated with the transition to a decarbonized society, as well as the financial impacts of carbon pricing and rising energy prices. We regularly report the monitoring results, response measures, and implementation status for such climate-related risks to the Management Council and the Board of Directors. These risks are also discussed and managed appropriately in accordance with the Companyʼs internal regulations.

Metrics and targets

Based on its Policies on Climate Change Issues and the Material Issues, the Group has set a goal of achieving carbon neutrality by 2050. Covering Scope 1, Scope 2, and Scope 3 (Category 13 and 15), we have also established an interim target of reducing total emissions by at least 30% by FY2035 (compared with the FY2024 baseline level).