P.44 Initiatives for Disclosure

44 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

We identify the time frames over which climate-related risks and opportunities could arise and quantify their potential financial impacts. We recognize that, even if these risks materialize, their impact on the Groupʼs business continuity would be limited because our business portfolio is diversified across a broad range of industries and geographic regions. With respect to transition risks, we believe the Groupʼs business will remain resilient throughout the transition to a decarbonized society, even after taking into account the total estimated financial impact under the Net Zero Emissions by 2050 (NZE) Scenario. Through these disclosures, we aim to enhance transparency and comparability for investors while promoting a better understanding of the effectiveness and progress of our climate change strategy.

Time Horizons/Financial impact

Business	Category	Description	Short term	Medium term	Long term
Natural gas/LNG business (upstream interests)	Transition risks	Risk of business contraction associated with the transition to a decarbonized society; Financial impact of carbon pricing		Slight; Significant	−;
Natural gas/LNG business (trading)	Transition risks; Business opportunities; Business opportunities	Risk of business contraction associated with the transition to a decarbonized society; Opportunity for business expansion associated with the transition to a decarbonized society; Opportunity for shifting to low-carbon products		; Slight; Slight	Slight; Slight; Slight
Offshore oil and gas production facility and chartering business	Transition risks	Risk of business contraction associated with the transition to a decarbonized society	Slight	Slight	Slight

Climate-related risks and opportunities by individual businesses

The climate-related risks and opportunities that could affect our business outlook are as follows. ■ Positive impact ■ Negative impact

Time Horizons/Financial impact

Business	Category	Details	Short term	Medium term	Long term
Tubular products business	Transition risks	Risk of business contraction associated with the transition to a decarbonized society; Financial impact of carbon pricing		Slight; Slight	Moderate; Slight
Shipping business	Transition risks	Risk of business contraction associated with the transition to a decarbonized society		Slight	Slight
Shipping business	Business opportunities	Opportunity for business expansion associated with the transition to a decarbonized society		Slight	Slight
Automotive business	Transition risks	Financial impact of carbon pricing		Slight	Moderate
Retail business	Transition risks	Financial impact of carbon pricing		Slight	Slight
Retail business	Transition risks	Financial impact of rising energy prices		−	−
Food business	Transition risks	Financial impact of carbon pricing		Slight	Slight
Copper business	Transition risks	Financial impact of carbon pricing		Slight	Slight
Copper business	Business opportunities	Opportunity for business expansion associated with the transition to a decarbonized society		+	+
Aluminum business	Transition risks	Financial impact of carbon pricing		Slight	Moderate
Thermal coal and coking coal business	Transition risks	Risk of business contraction associated with the transition to a decarbonized society; Financial impact of carbon pricing	; Slight	Slight;	Slight;
Iron ore business	Transition risks	Risk of business contraction associated with the transition to a decarbonized society		Slight	Slight
Chemicals business	Business opportunities	Opportunity for business expansion associated with the transition to a decarbonized society		Slight	Moderate
Agricultural materials distribution business	Physical risks	Risk of crop yield decline	Moderate	Moderate	Moderate
Power generation business	Physical risks	Operational disruption due to flooding	Moderate	Moderate
Power generation business	Transition risks	Risk of business contraction associated with the transition to a decarbonized society	Slight	Slight	Slight

Notes: 1. A positive impact / a negative impact on the Groupʼs individual business. 2. In cases where “+” or “-” is indicated, this refers to risks or opportunities for which the financial impact has not been calculated.

Time frames

Short term : Through 2026, aligned with the Groupʼs Medium-Term Management Plan (FY2026 is the final year of the current plan) Medium term : Through 2035, aligned with the period covered by the Groupʼs interim emission reduction targets Long term : Through 2050, aligned with the Groupʼs goal of achieving carbon neutrality by 2050

Financial impact on the relevant business (impact on profit for the year attributable

to owners of the parent)* Significant: ±¥30 billion to less than ±¥50 billion; Moderate: ±¥10 billion to less than ±¥30 billion; Slight: Less than ±¥10 billion * The financial impact on the relevant business does not take into account mitigation measures implemented by the Company

Total assets of businesses exposed to climate-related risks and opportunities

(as of the end of FY2025)*

	Amount (millions of yen)	Share of Group total (%)
Physical risk	564,893	4.1
Transition risk	796,029	5.8
Business opportunity	328,956	2.4

* Assets vulnerable to physical risk: Total assets of businesses exposed to physical risks Assets vulnerable to transition risk: Non-current assets of businesses exposed to transition risks Businesses for which the expected financial impact is considered limited are excluded.