LY Corporation and TAJIMA FOREST Conclude 10-Year Sales and Purchase Agreement for Forest-Derived J-Credits

LY Corporation (the "Company") and TAJIMA FOREST CORPORATION ("TAJIMA FOREST") have concluded an agreement (the "Agreement") under which the Company and TAJIMA FOREST will trade J-credits^*1 derived from forests owned by TAJIMA FOREST (the "Credits") for ten years and trade 1,500 tons of CO2 absorption every year. 

By purchasing these Credits, the Company will offset^*2 Scope 1 and 2^*3 CO2 emissions, excluding CO2 emissions from electricity use, toward achieving its "2025 Carbon Neutrality Declaration."

TAJIMA FOREST will use the proceeds from these Credits for forest maintenance and reforestation. Through the cultivation of richer forests, the two companies aim to link their efforts to the following environmental conservation initiatives:

1. Sustainable reduction of CO2
By ensuring a 100% reforestation rate after deforestation as well as promoting forest maintenance, the initiative will prevent the loss of trees and contribute to sustainable CO2 emissions reduction.

2. Prevention of landslide disastersThe degradation of forests exacerbates the occurrence of landslide disasters. Fostering healthier forests further contributes to averting such calamities.^*4 In addition to its own forests, TAJIMA FOREST will also purchase mountains that have become difficult to manage, implementing proper practices to contribute to the overall prevention of landslides.

3. Conservation of biodiversity
Near-threatened species of Oita Prefecture, such as Hynobius oyamai and Swertia bimaculata inhabit the forests of TAJIMA FOREST. Through the maintenance of these forests, this initiative will promote the conservation of biodiversity. TAJIMA FOREST is the owner and manager of OECMs in the "30by30"^*5 program promoted by Japan's Ministry of the Environment, and the Company is officially certified as a supporter.

In its Basic Policy on Sustainability, LY Corporation stipulates that it will bring a positive impact to society through its businesses and promote sustainability management that takes responsibility for future generations by addressing social issues, including the global environment and human rights. Furthermore, one of the Company's six identified materialities is "fulfilling responsibilities for the global environment and future generations." The Company is committed to carrying out initiatives on reducing the environmental impact of its business activities, waste management, and conservation of water resources and biodiversity. It also strives to promote global environmental measures by setting medium- and long-term goals in cooperation with the international community in support of international environmental initiatives. The Company has multiple sites in the Kyushu region where TAJIMA FOREST's forests are located, such as the Kitakyushu Data Center, Hakata Office, and Oita Center. The Agreement stems from LY Corporation's appreciation for its connection to Kyushu, alignment with TAJIMA FOREST's principles, and a desire to work together in bridging the Earth's environment to the future.

TAJIMA FOREST upholds the principle of "Uplifting the Charms of the Forest for the Modern Age and Connecting to the Future," safeguarding mountains since the Kamakura period (1185–1333) as dedicated forestry professionals. Japan has set a goal of reducing greenhouse gas emissions ("GHG emissions") by 46% by 2030 (compared to FY2013), of which 2.7% is to be secured through CO2 absorption by forests.^*6 Thus, environmental initiatives for the sustainable use of forests are called for. Under these circumstances, TAJIMA FOREST has maintained a 100% reforestation rate after deforestation. However, the substantial funds required for reforestation efforts underscored the importance of establishing a sustainable business model to continue these activities. As a result, the decision to enter into this Agreement was made to preserve healthy forests through the sale of the credits.

As partners committed to bridging the Earth's environment to the future, LY Corporation and TAJIMA FOREST strive towards realizing a sustainable society.

*1 J-Credit Scheme is a scheme in which the Japanese government certifies as "credits" the amount of greenhouse gas emissions (such as CO2) reduced through the introduction of energy-saving devices and use of renewable energy, and the amount of CO2 absorption through appropriate forest management. Credits created under the scheme can be used for various purposes, such as achieving the targets of Keidanren's Carbon Neutrality Action Plan and carbon offsetting. (Keidanren: Japan Business Federation)
Reference: Ministry of the Environment and the Ministry of Economy, Trade and Industry, "J-Credit Scheme" https://japancredit.go.jp/english/

*2 Carbon offsetting is the concept of compensating for unavoidable GHG emissions such as CO2 emissions in day-to-day living and economic activities by first making efforts to reduce them as much as possible, and then investing in GHG reduction activities and other means that match the amount of unavoidable GHG emitted.
Reference: Ministry of the Environment, "J-Credit Scheme and Carbon Offsetting" https://www.env.go.jp/earth/ondanka/mechanism/carbon_offset.html (Japanese only)

*3 Scope 1 refers to direct GHG emissions from the business operators themselves, and Scope 2 refers to indirect emissions from the consumption of electricity, heat, and steam provided by other companies.
Reference: Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry, "Basic Sustainability Terms You Need to Know — 'Scope 1, 2, and 3,' a Measure of Supply Chain Emissions" https://www.enecho.meti.go.jp/about/special/johoteikyo/scope123.html (Japanese only)

*4 Reference: Forestry Agency, "Landslide Prevention Function/Soil Conservation Function"https://www.rinya.maff.go.jp/j/keikaku/tamenteki/con_2_3.html (Japanese only)

*5 "30by30" is a target to effectively conserve at least 30% of land and sea areas as healthy ecosystems by 2030 with the goal of halting and reversing biodiversity loss (achieving nature positive) by 2030.
Reference: Ministry of the Environment, "Japan's 30by30 Roadmap" https://policies.env.go.jp/nature/biodiversity/30by30alliance/documents/3030emap.pdf

*6 Reference: Ministry of the Environment, "Plan for Global Warming Countermeasures" Cabinet approved on October 22, 2021 https://www.env.go.jp/en/headline/2551.html

About LY Corporation

LY Corporation is one of Japan's largest tech companies formed in October 2023 through the reorganization of Group companies including LINE Corporation and Yahoo Japan Corporation. LY Corporation spans diverse businesses, including search, portal website, e-commerce, communications, and advertising under its mission, "Create an amazing life platform that brings WOW! to our users."
With a workforce comprising over 10,000 individuals from approximately 40 countries and regions, LY Corporation is dedicated to continually delivering inspiring services to its users and contributing to the realization of a more enriching and convenient lifestyle through the power of the Internet.
https://www.lycorp.co.jp/en/

About TAJIMA FOREST CORPORATION

With roots tracing back to the Kamakura period, TAJIMA FOREST CORPORATION stands as one of Japan's foremost dedicated forestry families and companies.^* Anchored by the unwavering principle of "Resolutely Keeping the Forests Sustainable," TAJIMA FOREST has remained vigilant of the pulse of the times, flexibly confronting challenges to pass on the forests across generations. In the face of adversity in the forestry sector, TAJIMA FOREST is expanding into new ventures that harness the diverse capabilities of forests, not only to sustain timber production but also to continue safeguarding TAJIMA's forests and Japan's forests for the future.
https://tajimaforest.co.jp/ (Japanese only)

*Currently, there are less than 10 companies in Japan that own and manage more than 1,000 hectares of forests and make a living solely from forestry. (Survey by TAJIMA FOREST)