Climate Change Data

Environmental Metrics

ESG Focus Areas

• Protection of the Global Environment
• Respect for Human Rights
• Enhancement of Local Industrial Bases & Quality of Life
• Stable Supply of Resources & Materials
• Corporate Governance & Human Resources

Environmental Achievements

• Reduced energy consumption rate by at least 1% annually on average
• Achieved "Good Point" assessment in independent ISO14001 inspection
• Sale of emission trading credits from the old Head Office building
• Renewable energy (including hydroelectric power) accounted for approximately 20% of total generating capacity of 10.4GW as of March 31, 2017
• Obtained FSC® certification for all 74 company-owned forests (approx. 44,000 hectares)
• 10% of Mitsui’s Forests designated as “biodiversity conservation forests”
• Reduced energy use (crude oil equivalent) per unit of product by 84.7% year-on-year at MicroBiopharm Japan
• Acquisition of LEED certification by Acibadem Altunizade Hospital

Social Achievements

• Implemented supplier on-site surveys at a fruit juice processing plant and fruit farms in China
• Undertook forest conservation initiatives in collaboration with environmental NGOs
• Participated in a panel discussion about certified palm oil
• Provided scholarships, implemented extracurricular programs for Brazilian schools in Japan, hosted the “Conference for a Future of the Children”, and provided support for 14 related NPOs
• Participated in the TOMODACHI Initiative
• Donation to the Sakura Namiki Network resulting in the planting of 40 cherry trees
• Introduced new company-wide systems of “annual paid leaves on an hourly basis” and “mobile work”, and also implemented on a trial basis an individual-based staggered working hour scheme

Governance Achievements

• Changed the name of CSR Promotion Committee to the Sustainability Committee and strengthened its functions
• Implemented assessment of the effectiveness of the Board of Directors in response to the adoption of the Corporate Governance Code
• Reinforcement of compliance through the implementation of e-learning programs, questionnaire surveys, and other initiatives
• Formulation and publishing of the MITSUI & CO., LTD. Anti-Corruption Policy
• Established the Health Promotion Committee

Climate Goals & Targets

Environmental Challenges

• Global warming, climate change, loss of biodiversity, energy and water shortage, environmental pollution
• Greater responsibility for human rights in the supply chain
• Ageing infrastructure in developed nations, infrastructure development in emerging countries, food safety and reliability, maintenance of health
• Population increase and expansion of demand for resources and materials, expanded responsibility for environmental and social aspects in supply chains
• Malfunctioning of corporate governance and internal controls, stagnation in productivity due to cookie-cutter working styles, diversification and globalization of human resources

Mitigation Strategies

• Rigorous compliance with environment-related laws, regulations, and treaties; prevention of environmental pollution and curbing greenhouse gas emissions; adaptation to climate change; maintenance of biodiversity
• Strengthening of the ability to ensure stable supply through consideration for human rights across all supply chains
• Developing the infrastructure needed for growth and prosperity; improving basic services, such as healthcare and care for the aged; developing local industries and creating employment
• Working with suppliers, users, and business partners to engage in resource development, production, product distribution, processing, and recycling initiatives; building optimized supply chains
• Maintaining effective governance, ensuring fair business practices, and preventing corruption; reviewing working styles from the perspectives of productivity and efficiency; creating an environment in which diverse individuals can reach their full potential

Supply Chain Management

Supplier Audits: 50 supplier questionnaires and on-site surveys of food material suppliers in FY2017

Responsible Procurement

• Supply Chain CSR Policy
• Supplier questionnaires and on-site surveys
• Obtaining environment-related certifications (FSC®, ASC, MSC)

Climate-Related Risks & Opportunities

Physical Risks

• Climate change and resource constraints

Transition Risks

• Not disclosed

Opportunities

• Expansion of environment-related markets

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, 2013, Environmental Accounting Guidelines (2005 version) established by the Ministry of the Environment of Japan, ISO 26000

Certifications: ISO 14001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

• Goal 2, Goal 6, Goal 7, Goal 8, Goal 9, Goal 11, Goal 12, Goal 13, Goal 15, Goal 16, Goal 17

Initiatives aligned with SDGs are detailed in the report.

Sustainable Products & Innovation

• Environment-friendly textile-related products
• High fuel-efficiency, low-pollution vehicles for car-sharing

Awards & Recognition

• Hiroko Koshino Prize and Hiroshi Yagyu Prize in the 22nd National Geographic Japan Advertising Awards
• Japan Association for Human and Environmental Symbiosis Award for Environmental Activities
• Judging Panel’s Incentive Prize in the Corporate Youth Experience Promotion Awards
• Ranked second in the 18th Nikkei Annual Report Awards
• Ranked first in the “Toyo Keizai CSR Ranking” Wholesale Category
• Ranked first in the “18th Environmental Management Survey” Trading Company category
• Ranked first in the “2014 Award for Excellence in Corporate Disclosure”
• Received the “2014 IR Special Award”
• Received the 20th Nikkei BP Advertising Award’s Excellent Business Expert Award
• Received the Award for Special Merit in the 48th Industrial Advertising Award
• Received the 19th Nikkei BP Advertising Award’s National Geographic Japan Award

Environmental Metrics

ESG Focus Areas

• Protection of the Global Environment
• Enhancement of Local Industrial Bases & Quality of Life
• Stable Supply of Resources & Materials
• Respect for Human Rights
• Corporate Governance & Human Resources

Environmental Achievements

• Achieved ASC certification for two salmon farming sites.
• Maintained FSC® and SGEC certifications for 74 forests.
• Achieved “Good Point” assessment in independent ISO14001 inspection.
• Continued efficient and effective integrated operation of business activities and environmental management in accordance with ISO 14001:2015.
• Implemented climate change risk control methods.
• Implemented environmental law seminars and other environmental training for officers and employees.

Social Achievements

• Held an Investor Day for the first time.
• Engaged in detailed dialogue with the market from the perspective of ESG.
• Conducted supplier on-site surveys.
• Undertook forest conservation initiatives in collaboration with environmental NGOs.
• Participated in the “Sustainable Palm Oil Conference”.
• Implemented Work Style Innovation initiatives, resulting in increased employee motivation and satisfaction.

Governance Achievements

• Established the Sustainability Committee.
• Held discussions on climate change, risk management, and disclosure policies.
• Implemented a global group hotline for reporting compliance concerns.
• Strengthened corporate governance and internal controls.
• Improved compliance programs and responded to specific compliance issues.

Climate Goals & Targets

Environmental Challenges

• Global warming, climate change, loss of biodiversity, energy and water shortage, environmental pollution.
• Risks arising from policies and legal systems related to the transition to a low-carbon economy.
• Risks to companies’ operations from climate events.
• Suspension of business operations and instability in the supply of energy and food resources because of climate change and population growth.
• Disputes or protests concerning human rights issues.
• Malfunctioning of corporate governance and internal controls.

Mitigation Strategies

• Implemented measures to improve energy utilization efficiency to reduce greenhouse gas (GHG) emissions.
• Worked with suppliers, users, and business partners to engage in resource development, production, product distribution, processing, and recycling initiatives.
• Built optimized supply chains.
• Worked to ensure there is no discrimination based on race, belief, gender, social status, religion, nationality, age, or mental or physical abilities.
• Enhanced corporate governance and internal controls.
• Implemented compliance tests and other training activities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supply Chain CSR Policy
• Supplier environmental assessment
• Supplier social assessment
• FSC® certification for forests
• ASC and MSC certification for fisheries

Climate-Related Risks & Opportunities

Physical Risks

• Risks to companies’ operations from cyclones and hurricanes
• Risks to production volumes for agriculture, forestry, and fishery products from abnormal weather

Transition Risks

• Risks arising from policies and legal systems related to the transition to a low-carbon economy

Opportunities

• Expansion of environment–related markets
• Demand for high-efficiency power plants
• Expansion of business domains as a result of energy diversification

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (Core option), UN Global Compact

Certifications: ISO 14001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

• Goal 1, Goal 2, Goal 3, Goal 4, Goal 5, Goal 6, Goal 7, Goal 8, Goal 9, Goal 10, Goal 11, Goal 12, Goal 13, Goal 14, Goal 15, Goal 16, Goal 17

Mitsui's various materiality-related activities are linked to the SDGs.

Sustainable Products & Innovation

• ATOUN Powered Wear
• Environmentally-friendly textile-related products
• Custom-blended fertilizer

Awards & Recognition

• RobecoSAM Sustainability Awards 2018 (Gold Class)
• Selected for the Dow Jones Sustainability Indices (World and Asia Pacific Indices)
• FTSE4Good Index Series
• FTSE Blossom Japan Index
• MSCI Japan Empowering Women Index
• Competitive IT Strategy Company Stock Selection (four years in a row)
• Nadeshiko Brand company
• Eruboshi (L Star)

Environmental Metrics

ESG Focus Areas

• Stable supply of resources & materials
• Enhancement of local industrial bases & quality of life
• Protection of the global environment
• Respect for human rights
• Corporate governance & human resources

Environmental Achievements

• Reduced annual energy consumption by 1% or more at the Company and its domestic subsidiaries
• Increased renewable energy share to 16% of total power generating capacity (target of 30% by 2030)
• Mitsui’s forests accumulate and absorb roughly 560,000 tons of CO2 per year

Social Achievements

• Increased female managerial staff and female employees dispatched overseas
• Strengthened the effectiveness of the Board of Directors by increasing diversity and improving skill set balance of Board members
• Shifted corporate staff to business frontline
• Launched in-house entrepreneur system

Governance Achievements

• Improved transparency and accountability
• Clarified the separation of management oversight and execution
• Established Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Climate change
• Partial globalization
• Expanding populations and improving living standards in emerging nations
• Technological innovation
• Growing importance of data capital

Mitigation Strategies

• Identified "Protection of the Global Environment" as a material issue
• Targeting increasing renewable energy to 30% by 2030
• Engaging in a pilot project in the supply chain for hydrogen
• Undertaking initiatives toward new technologies, including carbon capture and storage technologies
• Promoting digital transformation activities throughout the group

Supply Chain Management

Responsible Procurement

• Ensure compliance with laws and regulations, respect for human rights, and maintenance of safe and sanitary working conditions; reduce environmental load; and give consideration to securing the safety and reliability of our products and services

Climate-Related Risks & Opportunities

Physical Risks

• Impediment of operations due to cyclones and hurricanes

Transition Risks

• Decrease in demand for fossil fuels
• Adverse impact on profitability due to changes in energy and power source mix
• Adverse impact on supply and demand due to new technologies
• Risks that affect procurement of funds due to low-carbon policies

Opportunities

• Expansion of environment-related markets
• Creation of new business models through circular economy and sharing
• Expansion of business domains (renewable energy, etc.)

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative), Sustainability Reporting Standard, Ministry of the Environment, Japan, Environmental Accounting Guidelines 2005, ISO 26000 (Guidance on social responsibility), IIRC (International Integrated Reporting Council), International Integrated Reporting Framework, Ministry of Economy, Trade and Industry, Japan, Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation

Certifications: FSC® (license number: FSC®C057355), SGEC

Awards & Recognition

• Top award in the commerce industry category at the 2017 Awards for Excellence in Corporate Disclosure
• RobecoSAM Sustainability Award (Gold Class)

Environmental Metrics

ESG Focus Areas

• climate change
• business and human rights
• circular economy

Environmental Achievements

• Achieved carbon neutrality for electricity use at its Head Office and all business locations in Japan since July 2020.
• Reduced power consumption in the Bussan Building by around 19% compared with the previous fiscal year.
• Increased the ratio of sustainable certified palm oil procurement to 5.0% in FY2020.

Social Achievements

• Formulated a Human Rights Policy in August 2020.
• Conducted on-site surveys at two apparel factories in Vietnam, confirming compliance with human rights and labor standards.
• Launched the Women Leadership Initiatives to develop female leadership.

Governance Achievements

• Introduced an internal carbon pricing system in April 2020.
• Revised its sustainability-related policy structure for clarity and effective implementation.
• Established the Health Promotion Committee in February 2017.

Climate Goals & Targets

Environmental Challenges

• Supply failures of resources due to climate change and COVID-19.
• Reputational damage from safety and health problems.
• Compliance violations due to lack of integrity awareness.

Mitigation Strategies

• Building optimal supply chains.
• Implementing human rights due diligence.
• Strengthening compliance framework and providing training.

Supply Chain Management

Supplier Audits: 11 suppliers surveyed in FY2020; on-site surveys conducted at two apparel factories in Vietnam.

Responsible Procurement

• Sustainable Supply Chain Policy
• Supplier questionnaires and on-site surveys
• Company-wide uniform supplier communication forms

Climate-Related Risks & Opportunities

Physical Risks

• Localized storms, hurricanes, and cyclones impacting mineral and metal resources projects.
• Damage to production plants and infrastructure disrupting operations.

Transition Risks

• Tighter policies and regulations for low-carbon transition.
• Impact of new technologies on existing businesses.

Opportunities

• Expansion of markets for environment-related businesses (renewable energy).
• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative) Sustainability Reporting Standards (Core option), TCFD (Task Force on Climate-related Financial Disclosures)

Certifications: ISO14001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

Mitsui's initiatives contribute to these goals through renewable energy projects, infrastructure development, sustainable supply chains, climate change mitigation, and collaborations with various stakeholders.

Sustainable Products & Innovation

• Biopesticides (Certis USA)
• Environmentally-friendly packaging materials (Vendor Service Co., Prime Evolue Singapore Pte.)
• Biodegradable plastic compounds and products

Awards & Recognition

• Nadeshiko Brand (six consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Business and Human Rights
• Circular Economy

Environmental Achievements

• Increased the waste recycling rate at buildings owned by Mitsui & Co. to 93.8% in FY Mar/2022 (from 85.6% in FY Mar/2021)
• Reduced paper consumption (per employee) by 0.3% in FY Mar/2022
• All electricity procured for the Collahuasi copper mine in Chile has been switched to renewable energy.

Social Achievements

• Published statement on the UK Modern Slavery Act in FY Mar/2022
• Introduced a global group talent management system
• Created a Sustainable Supply Chain Management Handbook

Governance Achievements

• Revised the executive remuneration plan for FY Mar/2023, linking executive remuneration to climate change response from FY Mar/2023
• Selected as a constituent stock of the FTSE Blossom Japan Sector Relative Index and MSCI Japan ESG Select Leaders Index
• Received a Bronze Class rating in S&P Global Sustainability Award 2022

Climate Goals & Targets

Environmental Challenges

• Supply failures of resources due to climate change and COVID-19
• Reputational damage from safety and health problems
• Compliance violations

Mitigation Strategies

• Improving production and supply capacity
• Establishing traceability and responsible marketing
• Strengthening compliance structures and carrying out compliance education and training

Supply Chain Management

Supplier Audits: Surveys of 44 suppliers in high-risk areas in FY Mar/2022; planned surveys of all major suppliers by FY Mar/2023

Responsible Procurement

• Sustainable Supply Chain Policy
• Individual procurement policies for specific commodities (natural rubber, palm oil, timber, paper products)

Climate-Related Risks & Opportunities

Physical Risks

• Cyclones, hurricanes, rising sea levels, extreme weather impacting operations and supply chains

Transition Risks

• Policy and legal risks, technology risks, market risks related to the shift to a low-carbon economy

Opportunities

• Expansion of renewable energy, CCS/CCUS, next-generation fuels, and other green businesses

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative) Sustainability Reporting Standards (Core option)

Certifications: ISO 14001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

• All 17 SDGs

Mitsui aligns its Materiality with the SDGs and reports on how its initiatives contribute to each goal.

Sustainable Products & Innovation

• Recycled polypropylene resin, clean hydrogen, biofuels, sustainable seafood

Awards & Recognition

• Bronze Class rating in S&P Global Sustainability Award 2022

Environmental Metrics

ESG Focus Areas

• Climate Change
• Stable supply of essential products
• Enhance quality of life
• Create an eco-friendly society
• Develop talent leading to value creation
• Build an organization with integrity

Environmental Achievements

• GHG Reduction Contribution 2.7 million tons/year
• Consolidated GHG Impact reduction from 38,183 to 34,280 thousand t-CO2e
• Established Circular Pet (CPET) to build a PET bottle recycling plant with a capacity of approximately 25,000 tons per year

Social Achievements

• Launched Mitsui Engagement Survey 2022 with 72% employee engagement
• Increased percentage of female managers to 18.8% (consolidated), 8.5% (non-consolidated)
• Conducted 329 social contribution activities in 38 countries
• Made major domestic food service company AIM Services a wholly owned subsidiary

Governance Achievements

• Improved Board Diversity with the appointment of new non-Japanese members
• Increased the number of female Non-Executive Directors on the Board
• Established the Sustainability Advisory Board, made up of external experts on environmental and social themes

Climate Goals & Targets

Environmental Challenges

• High levels of inflation and monetary tightening
• Repercussions from the geopolitical situation
• Continuing impact of COVID-19
• Trend toward a decarbonized society
• Supply chain disruptions
• Increasing complexity of global risks (geopolitics, supply chains, ESG, cybersecurity)
• Shortage of transportation capacity in the logistics industry

Mitigation Strategies

• Strengthened earnings base
• Incorporated highly sustainable businesses as growth investments
• Implemented integrated risk management
• Portfolio reconfiguration through asset recycling
• Developed alternative sourcing strategies
• Introduced Control Self-Assessment (CSA) for 522 affiliated companies
• Developing transportation services using autonomous driving technology

Supply Chain Management

Supplier Audits: Questionnaire surveys of major suppliers in high-risk fields

Responsible Procurement

• Individual procurement policies for natural rubber, palm oil, lumber, and paper products
• Human rights clause in contracts
• Sustainable Supply Chain Policy sent to 4,430 new suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Hurricanes
• Wildfires

Transition Risks

• Decline in demand for fossil fuels
• Increase in demand for renewable energy
• Changes in supply chain

Opportunities

• Development of energy-efficient products
• Next-generation fuels manufacturing businesses
• Low-carbon operations throughout the iron ore business value chain
• Low carbon metallics and iron making business
• Green hydrogen production

Reporting Standards

Frameworks Used: Integrated Reporting Framework (IFRS Foundation), Guidance for Collaborative Value Creation (Ministry of Economy, Trade and Industry of Japan), Sustainability Reporting Standard (GRI), ISO 26000

Certifications: FSC® (Forest Stewardship Council®)

Sustainable Products & Innovation

• Recycled PET pellets
• Low-carbon metallics and iron making materials
• Green hydrogen
• Clean ammonia
• Sustainable aviation fuel
• Hydrotreated vegetable oil
• Renewable natural gas
• Next-generation fuels

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Finance
• Sustainable Development

Climate Goals & Targets

Environmental Challenges

• Latin America's vulnerability to climate change due to geographic factors, social structures, and economic frameworks.
• Need for massive investment (US$2.1-2.8 trillion by 2030) to address climate change.
• Disproportionate investment in mitigation vs. adaptation measures.
• Uneven distribution of financing sources, concentrating investments in low-risk countries.
• Deforestation contributing significantly to GHG emissions.
• Insufficient protected land and marine areas.
• Challenges in data coordination for green taxonomy interoperability.
• Need to address social issues alongside environmental concerns for inclusive growth.

Mitigation Strategies

• Development of green taxonomies to attract private investment.
• Promotion of renewable energy and low-carbon transportation.
• Establishment of early warning systems.
• Efforts to eliminate illegal logging.
• Expansion of protected areas.
• Development of a common green taxonomy framework for Latin America and the Caribbean.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Extreme weather events
• Droughts
• Flooding
• Landslides
• Heat waves
• Cyclones
• River flooding
• Coral bleaching
• Coastal erosion

Transition Risks

• High financing costs due to interest rate and foreign exchange risks, currency depreciation, and high uncertainty of returns.