Environmental Policy・Environmental Targets・Achievements

Environmental Policy

Basic Philosophy

Recognizing that efforts to address environmental problems are an important responsibility to be fulfilled for society, Sumitomo Mitsui Finance and Leasing Co., Ltd. hereby establishes the following Environmental Policy.

Environmental Policy

• Through our business, we will actively work to harmonize global environmental preservation and pollution prevention with our corporate activities, and contribute to society and the economy.
• We actively engage in the leasing and rental of equipment that reduces environmental impact, as well as the reuse and proper disposal of equipment whose lease terms have expired. We support our customers' efforts to address environmental issues by providing information and solutions.
• We will strive to reduce our environmental impact by conserving resources and energy, and by reducing, reusing and recycling waste.
• We will comply with environmental laws and regulations.
• To achieve this policy, we will set environmental objectives and targets, reviewing them periodically to ensure the continuous improvement of our environmental management system.
• We will strive to ensure that all employees are fully aware of this policy, and will disclose it in writing broadly outside the Company.

SMFL Group Sustainability Action Plan

SMFL Group has its Environmental Policy, clearly articulating its commitment to contributing to the resolution of global environmental issues. In April 2020, the SMFL Group further positioned becoming a company "Chosen for its commitment to SDGs" as one of the Our Vision statements under the SMFL Way, and has since implemented a wide range of related initiatives.
In April 2026, the SMFL Group newly formulated the SMFL Group Sustainability Action Plan, an environmental plan aligned with the Paris Agreement. Under this Action Plan, the SMFL Group has set gross GHG reduction targets aimed at achieving carbon neutrality by 2050. By declaring its commitment to carbon neutrality in 2050, the SMFL Group will promote ambitious, backcasting-based initiatives across the entire group.
At the same time, the SMFL Group has also established targets to contribute to the reduction of Scope3 emissions and GHG emissions in society, and will accelerate initiatives that contribute to reducing Scope3 emissions throughout the entire supply chain.

GHG Emissions Data

In addition to the measurement and disclosure of Scope1 and Scope2 emissions, society is demanding the disclosure of Scope3 emissions, which cover indirect emissions from sources other than a company itself. SMSL has been calculating data for certain categories within Scope3 (refer to the following table) since FY2023. Moving forward, we will work on expanding both the categories and the scope of disclosure.

Assurance

Energy Consumption

Estimates of Avoided Emissions

Targets related to Japan's Act on the Promotion of Plastic Resources Circulation

In response to the Act on Promotion of Resource Circulation for Plastics, which came into effect in April 2022, SMFL set two key targets. The first target, announced in June 2023, focuses on reducing the disposal of plastic office supplies used in business activities, and the second target, announced in March 2024, addresses the reprocessing of properties at the end of their leases.

• Recycle 100% of used clear files by FY2025
• Ensure that 100% of newly purchased clear files are made from non- plastic materials by FY2025

• Resource recycling ratio ※ Maintain the 92.8% result achieved in FY2022

• ※The resource recycling ratio is the sum of the re-leasing rate for lease agreements, the ratio of end-of-lease properties sales, and the recycling ratio of end-of-lease properties. This indicator is aimed at promoting resource circulation by maximizing the reuse and recycling of leased properties.

In-house initiatives