Natural Capital SUSTAINABILITY REPORT 2020/2021 Natural Capital Initiatives and Policies of the SuMi TRUST Group The air, water, soil, animals, plants and other wildlife that support our daily lives are called nat- ural capital. How this natural capital is protected, regenerated and used wisely by future gen- erations is the key to ensuring sustainable social and economic development. The SuMi TRUST Group was one of the first financial institutions to address the issue of natural capital, signing the leadership declaration under the Business and Biodiversity Initiative “Biodiversity in Good Company” at the ninth meeting of the Conference of the Parties (COP 9) to the Convention on Biological Diversity held in 2008 in Germany, as well as the Natural Capital Declaration pro- posed by the United Nations Environment Programme Financial Initiative (UNEP FI) in 2012. Against this backdrop, natural capital is increasingly being viewed as the foundation of society and economy and used for community building. In the corporate sector as well, we must learn from such leading examples and promote sustainable national and community building for the next 50 to 100 years. Important Natural Capital The diverse wildlife and the water, soil, and air that nourish it are called Solar power natural capital. Our lives depend on this natural capital and the blessings Air Wildlife it provides (ecosystem services), such as clean water, food, medicine, and Water Soil energy. Natural capital, as the foun- dation of our existence, takes prece- Natural capital dence over everything else and must be protected. Blessings of Nature (Ecosystem Services) •Environmental •Material •Spiritual •Foundation of value value value civilization • Initiatives and Policies of the SuMi TRUST Group ....................................................................2 • Various Challenges that Japan Faces ........................................................................................4 • Building a Sustainable Nation by 2050 ......................................................................................6 Protecting Nature • Amami Oshima: Amami Rabbit Trust ............................................... Mountains - Suburbs 8 • Forestry Trust ...................................................................................... Mountains 10 Improving the Quality of Nature • Japan Habitat Evaluation and Certification Program .......................................... Cities 12 • Mori-no-boen (forest cemetery) in Chonan-cho, Chiba ...................................... Suburbs 14 • Golf Courses that Preserve Biodiversity ................................................................ Suburbs 16 Expanding Nature • Naganuma-cho, Hokkaido: Creating a Town Where Cranes Can Live ...................... Reservoirs and its surroundings 18 • Watarase Reservoir: Building a Community Where Storks and Ibises Fly .... Reservoirs and its surroundings 20 • Sado Island: Creating a Satoyama (seminatural area) Where Ibises Can Coexist ............................................... Seminatural areas 21 • Hii River: The One and Only Mythical Land Where Five Species of Large Waterfowl Live ............... Rivers and their surroundings 22 • Shikoku: Community Building With Storks and Cranes as Indicators ........................................................ Rivers and their surroundings 23 Conserving and Restoring beautiful regenerating satoyama the backwoods (seminatural) areas Conserving andA source of nurturing Restoring beautifulReviving beautiful fresh green regeneratingrivers and oceans • Major Initiatives in the Group’s Businessand autumn leaves to Date ................................................................... 24 Forming an Ecological Network satoyamaPassing on the original the backwoods (seminatural) areaslandscape of Japan A source of nurturing • About the Group, the EcosystemReviving beautiful fresh greenIncrease Conservation in visitors Society-Japan, Creates Regional Attractiveness rivers and oceans and autumn leaves Forming an Ecological Network Passing on the original and Vitality. andRestoration the of National Trust Societylandscape of Japan of Japan ..................................................................................25 sand and gravel Increase in visitors Creates Regional Attractiveness riverbeds Preserving and Vitality. Restoration of countryside forests Renovating sand and gravel Provides a nesting environment riverbeds for storks and crested ibis flumes Preserving When various entities in Restoring ecological Branding of continuity between Installing countryside forests the basin work together Provides a nesting environment products and Renovatingrivers and agricultural fishways for storks and crested ibis to form an ecological net- processed goodsflumes waterways When various entities in Restoring ecological Water-filled work, it is expected to not Promoting production and Branding of continuity between Winter floodingInstalling* paddy field the basin work together sales Adding value and only enrich the naturalproducts and rivers and agricultural Installation offishways Eh* boosting sales to form an ecological net- waterways Enhancing the biodiversity environment of the region,processed goods Water-filled River work, it is expected to not of agricultural land Water-filled but also to have variousPromoting production and paddy field Winter flooding* sandbankpaddy field sales Adding value and only enrich the natural Installation of Eh* Developing benefits for regional develboosting- sales Installing fishways in Enhancing the biodiversity nature-rich Ecological Network Creation environment of the region, Water-filled River Promoting opment and economic of agriculturalthe land paddy field Conserving and paddy field reservoirssandbank Restoring beautifulecotourism but also to have various Restoring ecological continuity between regenerating revitalization. rivers and agricultural waterwaysDeveloping satoyamacentered on benefits for regional devel- Installing fishways in the backwoods nature-rich Reservoir (seminatural)Promotinglarge areas waterfowl the paddy field A source of nurturing opment and economic reservoirs Reviving beautiful freshspecies green Restoring ecological continuity between rivers and oceans ecotourismand autumn leaves River lagoon Improving biodiversity in Realizing economic benefits revitalization. Forming an Ecological riversNetwork and agricultural waterways centeredPassing on onthe original waterfront areas from increased tourism Increase in the number of Reservoir large landscapewaterfowl of Japan Increase in visitors Creates Regional Attractivenessspecies and population Cultivating crops using species River lagoonPondsImproving and biodiversityIncrease in thein number of Realizing economic benefits large waterfowl migrating and nesting organic and reduced swamps waterfront areas Restoration of from increased tourism and Vitality. Increase in the number of agricultural chemicals Conserving and species and population sandEnhancing and gravel the biodiversity of Old stream channel Cultivating crops using Restoring beautiful Ponds and Increase in the number of riverbedsagricultural land regenerating Crescentic lake organic and reduced Preserving satoyama swamps large waterfowl migrating and nesting the backwoods agricultural chemicals countryside forests (seminatural) areas A source of nurturing Reviving beautiful fresh green Initiatives in the river Renovating Enhancing the biodiversity of Provides a nesting environment Old stream channelPreserving and restoring Ponds and rivers and oceans and autumn leaves (River administrator) flumes agricultural land for storks and crested ibis Crescentic lake old stream channels Forming an Ecological Networkswamps Passing on the original When various entities in Restoring ecological Community Conserving good ponds Revitalization landscape of Japan Initiatives in the levee area and crescentic lakes Branding of Installing the basin work together continuity between and swamps Increase in visitors Initiatives in the river(Local governments, rivers and agricultural Creates Regional Attractiveness Preserving and restoring products and Regenerating fishways Ponds and Conserving sites where geese (River administrator)agriculture-related personnel,to form an ecological net- waterways River lagoon old stream channels processed goods river lagoons swamps and swans rest in groups at night NPOs, schools, companies, etc.) We aim to protect and enrichWater-filled Conservingbiodiversity good ponds and revitalizeRestoration communities of by and work,crescentic it is expectedlakes to not Promoting production and Winterand flooding Vitality.* Initiatives in the levee area paddy fieldand swamps sand and gravel (Local governments,Expected benefits sales Adding value and only enrich the natural Regenerating Installation of Eh* Conserving sites where geese agriculture-related personnel, boosting sales riverbeds river lagoons River lagoon Enhancing the biodiversity making theand swansmost rest in groups of at night their nature. Preserving NPOs, schools, companies, etc.) environment of the region, Water-filled River Providing opportunities of agricultural land countryside forests but also to have various paddy field sandbank to experience nature and Expected benefits Renovating learn about the environment Provides a nesting environment Developing Restoring for storks and crested ibis benefits for regional devel- Installing fishways in flumes Increasing use of waterfront by local Winter flooding When various entities in nature-rich