ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) announced today that it has concluded an agreement with SUMITOMO RUBBER SINGAPORE PTE. LTD. (headquartered in HarbourFront, Singapore; Ryuichiro Yamazaki, Representative; hereinafter “SRSG”), a natural rubber procurement company of the Sumitomo Rubber Group, regarding the PROJECT TREE1 initiative for improving the sustainability of the natural rubber industry. Going forward, ITOCHU will continue to advance the project in cooperation with SRSG, a new participant in the project.

Natural rubber is a natural resource that is vital in modern society. About 70% of global natural rubber consumption is in the production of tires, but approximately 85% of global production relies on smallholders, mainly in Southeast Asia such as Thailand and Indonesia. The existing agricultural practice used by smallholders have limitations and there are concerns about illegal logging, human rights issues, traditional farming techniques and other concerns.
In Europe, the European Deforestation Regulation (EUDR) has taken effect. It requires that natural rubber products and tires brought to the EU on and after December 30, 2024 must ensure that the products do not contribute to deforestation and forest degradation.
Under these circumstances, it is necessary to improve the traceability and sustainability of natural rubber production. As a solution to these issues, ITOCHU is increasing its human resources engaged in sustainability activities through PROJECT TREE and is building a system for the stable supply of the TREE+ rubber, which is compliant with the EUDR.

The Sumitomo Rubber Group joins PROJECT TREE and seeks to contribute to the environment and society and to improve the traceability and sustainability of supply chains. Through the project, SRSG encourages support for smallholders by, for example, identifying risks related to natural rubber on sustainability, conducting improvement activities and increasing yield capacity. The company will also comply with EUDR through the purchase of the TREE+ rubber.

With SRSG and other companies participating in PROJECT TREE, ITOCHU will contribute to the achievement of SDG #1, no poverty, SDG #8, decent work and economic growth, SDG #9, Industry, innovation and infrastructure, SDG #12, responsible consumption and production, SDG #13, climate action, SDG #15, life on land, and SDG #17, partnerships for the goals.

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