Mitsui : Mazda and Mitsui Conclude Sales and Purchase Agreement for J-Credits Generated by Forests in the Chugoku Region

Mazda Motor Corporation (Head Office: Hiroshima Prefecture , President: Masahiro Moro, "Mazda") and Mitsui & Co., Ltd. (Head Office: Tokyo, President and CEO: Kenichi Hori, "Mitsui") have concluded a sales and purchase agreement covering J-Credits ("the Credits") generated through appropriate forest management targeted toward the creation of a carbon-neutral society. The Credits are certified by the Japanese government under the J-Credit Scheme.

The Credits will be generated through a joint project*1 between Mitsui and Okayamanomoriseibikousha*2 (Okayama Corporation), a public interest incorporated association engaged in forest development in Okayama Prefecture. Digital technologies employed in Mitsui's Forests in Japan, including aerial surveying and satellite data, will be used to monitor forests to generate J-Credits. Some of the income provided by the Credits will be used through the joint project to develop and manage forests and enhance natural disaster preparedness. As the first company to use the Credits, Mazda will purchase credits based on the absorption of CO2 through forest conservation over an eight-year period from fiscal 2022 to fiscal 2029.

Mazda has declared its commitment to the achievement of carbon neutrality throughout its supply chains by 2050. To that end, it will pursue attaining carbon neutrality across its global network of plants by 2035through implementing initiatives for energy conservation, shift to renewable energies, and introduction of carbon-neutral fuels. If energy sources cannot be converted to alternative fuels, Mazda will use the J-Credit Scheme to accelerate CO2 absorption through forest conservation and regeneration in the Chugoku region and other locations. Mazda decided to purchase the Credits to contribute to CO2 absorption and decarbonization in the Chugoku region, where the company is based, while also protecting and nurturing regional forest resources, developing industries, and maintaining employment.

Mitsui has adopted "Creating Sustainable Futures" as the theme for its Medium-term Management Plan 2026. It has taken up the challenge of solving global-scale issues through the business activities of the group, while contributing to the realization of a sustainable society and the achievement of economic growth. The joint project with Okayama Corporation is Mitsui's first large-scale business initiative to create J-Credits through appropriate forest management in Japan as part of its efforts to provide industrial solutions to climate change. Mitsui plans to extend this initiative into other regions so that it can continue to contribute to the maintenance of abundant forest resources by channeling funds back into domestic forests.

Mazda and Mitsui will continue to contribute to the reduction of CO2 emissions and the achievement of carbon neutrality and sustainable economic development in regional communities through forest conservation and regeneration initiatives in the Chugoku region.

*1 The "Okayamanomoriseibikousha Forest Management Project"
*2 A public interest incorporated association engaged primarily in profit-sharing forestry activities in Okayama Prefecture