Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable corporate value (economic, societal, and environmental value)
• Climate change
• Biodiversity
• Sustainable use of resources
• Pollution and accident prevention
• Human and labor rights
• Rights of indigenous people

Environmental Achievements

• Reduced CO2 emissions by 7.2% (non-consolidated, Japan)
• Mitsubishi Shoji Building certified as a top-level office for global warming countermeasures by Tokyo metropolitan government
• Global consolidated CO2 emissions approximately 1.83 million tons

Social Achievements

• Established the Mitsubishi Corporation East Japan Earthquake Recovery Fund with a contribution of ¥10.0 billion
• Dispatched approximately 1,200 employee volunteers to disaster-stricken areas
• Provided 30 i-MiEVs to affected areas
• Provided emergency water supplies and restored water-related infrastructure in disaster-stricken areas
• Made donations to public welfare, educational and environmental NPOs or foundations based on a system of virtual “tokens”.

Governance Achievements

• Established a hybrid corporate governance framework incorporating the advantages of both the corporate auditor system and committee systems
• Established an International Advisory Committee
• Implemented a transparent compensation system for directors and corporate auditors linked to corporate value creation

Climate Goals & Targets

Environmental Challenges

• Global macroeconomic conditions (commodity price fluctuations, economic slowdown)
• Market risks (commodity market risk, foreign currency risk, stock price risk, interest rate risk)
• Credit risk
• Country risk
• Business investment risk
• Risks related to specific investments (Mitsubishi Motors Corporation)
• Compliance risks
• Risks from natural disasters

Mitigation Strategies

• Hedging strategies (forward contracts, etc.)
• Internal rating system and credit limits
• Country Risk Committee and country risk countermeasure system
• Investment guidelines and exit rules
• Compliance Committee and Chief Compliance Officer
• Business Continuity Planning (BCP)
• ALM (Asset Liability Management) Committee

Supply Chain Management

Supplier Audits: Environmental reviews of 10 commodity trading operations and 12 business investees in 2011

Responsible Procurement

• CSR Action Guidelines for Supply Chains

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and technologies
• Renewable energy development

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001 (Environmental Management Systems)

Environmental Metrics

ESG Focus Areas

• Transitioning to a Low-carbon Society
• Procuring and Supplying in a Sustainable Manner
• Tackling Evolving Regional Issues
• Addressing the Needs of Society through Business Innovation
• Conserving the Natural Environment
• Growing Together with Local Communities
• Fostering Our Employees' Maximum Potential

Environmental Achievements

• Reduced CO2 emissions (non-consolidated) from 18.8 thousand t-CO2 in 2017 to 9.3 thousand t-CO2 in 2021.
• Reduced CO2 emissions (consolidated) from 9,788 thousand t-CO2e in 2017 to 9,185 thousand t-CO2e in 2021.
• Achieved a water recycling rate of 78% at the Los Bronces copper mine in 2019.
• Eliminated reliance on subterranean aquifers at the Escondida Copper Mine by constructing a desalination plant.
• Reduced water consumption at its Head Office.
• Reduced waste production at its Head Office.
• Recycled 96.8% (2,520 tons) of the 2,602 tons of waste produced in 2020.

Social Achievements

• Launched MC Fashion’s “THE ME” business, producing clothes only when ordered.
• Implemented initiatives with Lawson, Inc. to reduce food waste using AI.
• Contributed to the community through an aluminum smelting project in Mozambique.
• Supported educational courses for children with impairments in Vietnam.
• Held the Friendship Camp for Mothers and Children since 1974.
• Improved work-life balance through various systems and initiatives.

Governance Achievements

• Established Corporate Standards of Conduct and Code of Conduct.
• Adopted Environmental Charter and Social Charter.
• Established Sustainability Advisory Committee.
• Participated in the UN Global Compact and WBCSD.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business activities.
• Sustainable procurement and supply of resources.
• Geopolitical risks and regional issues.
• Food waste.
• Water shortages in certain regions.
• Biodiversity loss.
• Maintaining employee health and safety.

Mitigation Strategies

• Transitioning to a low-carbon society through various initiatives.
• Implementing sustainable procurement and supply chain management.
• Addressing geopolitical risks and contributing solutions to regional issues.
• Utilizing AI and digital marketing to reduce food waste.
• Implementing water efficiency measures and investing in desalination plants.
• Biodiversity conservation through business operations and philanthropy.
• Promoting occupational health and safety through various measures.

Supply Chain Management

Responsible Procurement

• Mitsubishi Corporation Policy for Sustainable Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods, cyclones (metallurgical coal business)
• Droughts, water shortages (copper business)
• Rising sea temperatures and sea levels (salmon farming business)

Transition Risks

• Regulations, technologies, market shifts affecting fossil fuel businesses.
• Carbon pricing mechanisms.

Opportunities

• Renewable energy, electric vehicles, CCUS, hydrogen-related projects.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, OHSAS 18001, ISO 45001

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

Sustainable Products & Innovation

• Low-sodium seasoning alternatives
• Food formulations for easier swallowing
• Low-protein food formulations
• CHUO A-PET GREEN (C-APG) plastic containers

Awards & Recognition

• Indonesian SDGs Award 2018 (PT Donggi-Senoro LNG)
• 2017 Supply Chain Innovation Award (Mitsubishi Shokuhin)
• GRESB Green Star awards (JRF, IIF, MCUBS MidCity)
• Cogeneration Grand Prix (Kohjin Life Sciences)

Environmental Metrics

ESG Focus Areas

• Transitioning to a Low-carbon Society
• Procuring and Supplying in a Sustainable Manner
• Tackling Evolving Regional Issues
• Addressing the Needs of Society through Business Innovation
• Conserving the Natural Environment
• Growing Together with Local Communities
• Fostering Our Employees' Maximum Potential
• Human Rights

Environmental Achievements

• Reduced CO2 emissions by 28.6% from 2020.3 results to 2021.3 results (Head Office)
• Reduced paper consumption by 56.8% from 2020.3 results to 2021.3 results (Head Office)
• Achieved 85% water recycling rate at Los Bronces Copper Mine in 2020 (+7% compared to 2019)
• Eliminated reliance on subterranean aquifers at Escondida Copper Mine through desalination plant investment
• Achieved approximately 20% reduction in water consumption per ton at Olam International in FY2020 compared to the previous year
• Plan to double renewable power generation capacity by FY2031 compared to FY2020 (from 3.3 GW to 6.6 GW)

Social Achievements

• Launched “THE ME” business model to address overproduction and waste in the clothing industry
• Implemented initiatives with Lawson, Inc. to reduce food waste using AI
• Supported vulnerable children and at-risk youth through the Anh Dao Special Education Center in Vietnam
• Held Friendship Camp for Mothers and Children (cancelled in 2022 due to Covid-19, but provided craft kits instead)
• Improved work-life balance systems, resulting in 55% annual paid leave utilization rate in FY2021 (non-consolidated)

Governance Achievements

• Established the Sustainability Advisory Committee to incorporate external perspectives
• Implemented a screening process for loan and investment proposals that considers ESG factors
• Set greenhouse gas emission reduction targets, aiming for net-zero by 2050 and halving emissions by 2030

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business activities
• Sustainable procurement and supply of resources
• Evolving regional issues and geopolitical risks
• Food waste reduction
• Water scarcity in certain regions
• Biodiversity conservation
• Maintaining a healthy and productive workforce

Mitigation Strategies

• Scenario analyses to assess climate-related risks and opportunities
• Sustainable supply chain management initiatives
• Proactive engagement with stakeholders
• Digital transformation initiatives to reduce food waste
• Water efficiency improvements and desalination projects
• Biodiversity conservation initiatives and partnerships
• Work-life balance programs and health management initiatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Mitsubishi Corporation Policy for Sustainable Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Extreme heat
• Water stress

Transition Risks

• Regulatory changes
• Market shifts
• Carbon pricing

Opportunities

• Renewable energy
• CCUS
• Hydrogen
• Ammonia

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, Platinum Kurumin Certification, L-boshi Certification

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

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CHUO A-PET GREEN
• TALFA
• MAPKA
• BioCT
• BioCF
• Ever Value

Awards & Recognition

• Subroto Prize (PT Donggi-Senoro LNG)
• Eco Mark Award (Chuo Kagaku)
• Cogeneration Grand Prix (Kohjin Life Sciences)
• GRESB 5-Star rating (Japan Metropolitan Fund Investment Corporation)
• GRESB Sector Leader (DREAM Private REIT Inc.)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Human Rights
• Supply Chain Management
• Corporate Governance
• Diversity, Equity & Inclusion (DE&I)
• Stakeholder Engagement
• Regional Revitalization

Environmental Achievements

• Halved GHG emissions by FY2030 from a FY2020 baseline (target)
• Achieved net zero emissions by 2050 (target)
• Investing 2 trillion yen in EX-related initiatives by FY2030 (target)
• Doubling renewable energy power generation capacity compared to FY2019 levels by FY2030 (target)
• Reducing existing thermal power capacity and switching to zero-emission thermal power, targeting 100% non-fossil by 2050 (target)
• Successfully completed construction of the Quellaveco copper mine on schedule despite the COVID-19 pandemic
• Commenced production of copper concentrate at the Quellaveco copper mine in July 2022
• Launched Natural Climate Solutions (NCS) initiative in FY2022 focusing on rangeland restoration in South Africa
• Successfully reduced inventory at distribution centers by an average of around 30% through AI-driven optimization
• Lowered the overall rate of out-of-stock items in verification testing of food distribution optimization

Social Achievements

• Established the DE&I Working Group (DWG) in March 2023 to promote diversity and inclusion
• Created a new position of Chief Stakeholder Engagement Officer (CSEO) in 2023 to strengthen stakeholder dialogue
• Held the Company’s first MCSV Creation Forum ~ ESG Briefing~ in 2023
• Expanded disclosures in the area of climate change, including Scope 3 Category 11 emissions
• Disclosed “avoided emissions” as a quantitative indicator to measure contribution to GHG emissions reductions
• Made a donation of 600 million yen to Kyoto University to support the establishment of “Kyoto University-Mitsubishi Corporation Startup Catapult”
• Concluded a partnership agreement with Yatsushiro City to expedite its transition to carbon-neutrality
• Introduced a grievance mechanism in February 2023 to handle consultations from external stakeholders regarding human rights and environmental impacts
• Held a human rights seminar for suppliers in FY2022

Governance Achievements

• Established the Global Intelligence (GI) Committee in Midterm Corporate Strategy 2024
• Established the Next-Generation Energy Business Group in April 2023 to reinforce the realization of the EX Strategy
• Revised shareholder return policy from the fiscal year ending March 31, 2024 onward with a goal of approximately 40% total payout ratio
• Increased dividends per share for the fiscal year ending March 31, 2024 to 200 yen
• Announced an additional 200 billion yen in share buybacks in May 2023
• Implemented mechanisms for simultaneously achieving decarbonization and reinforcing the portfolio based on the MC Climate Taxonomy

Climate Goals & Targets

Environmental Challenges

• Global supply chain vulnerabilities following Russia’s aggression against Ukraine
• Historic inflation and monetary tightening in Western countries
• Significant changes in the foreign exchange market
• Unpredictable US-China relations
• Downturn in China’s real estate market
• Declining resource prices
• Labor shortages
• Increased geopolitical risks
• Difficulty in securing environmental permits and social acceptance for resource development
• Scarcity of suitable production areas for salmon farming
• Growing concern regarding sustainability in the salmon farming industry
• Changes in the business and competitive environment of the automotive industry due to technological innovations
• Rapid changes in national tax systems and laws and regulations due to decarbonization
• Supply chain fragmentation due to geopolitical risks
• Decrease in yields and production of agricultural produce due to climate change and natural disasters
• Impact of rising sea levels and ocean temperature on farming businesses
• Depletion of natural resources and difficulty in procurement
• Decrease in domestic demand due to population decline
• Shortage of supply chain workers due to declining birthrate and an aging population
• Tightening supply-demand for logistics
• Changes in regulations, policies, etc., for the electric power business
• Increased profit fluctuations in the electric power business due to increased price volatility in energy markets
• Decline in population and industrial competitiveness in Japan
• Changes in market conditions due to inflation and interest rates increase
• Heightened geopolitical risks such as US-China tensions and the Ukraine conflict

Mitigation Strategies

• Capitalizing on collective capabilities, including accumulated intelligence and industry knowledge
• Maintaining a constant state of preparedness and envisioning a range of possibilities
• Connecting high-quality information from global offices
• Utilizing multifaceted intelligence unique to MC
• Promoting the Value-Added Cyclical Growth Model
• Proactively replacing businesses contributing to earnings within the portfolio
• Reducing the number of low-yield businesses
• Strengthening the portfolio by steadily implementing sustaining investment
• Boosting the competitiveness of existing businesses through increased profitability
• Implementing integrated EX/DX initiatives
• Deepening discussions among EX Task Force and other relevant Business Groups
• Prioritizing EX-related projects over the coming three years
• Building an EX value chain that connects diverse businesses
• Combining stable earnings and capital gains from forward-looking investments
• Strengthening employee engagement and promoting DE&I
• Launching the DE&I Working Group
• Holding town hall meetings with employees
• Engaging in dialogues with employees and partners
• Utilizing industry intelligence to create visions for businesses
• Coordinating with different companies, educational and research institutions, and local municipalities
• Establishing joint ventures to pursue new business opportunities
• Implementing measures designed to improve production efficiency, profitability, and sales
• Using digital technology to reduce environmental impacts, enhance productivity, and reduce costs
• Leveraging integrated knowledge of mobility and energy
• Implementing approaches that combine EX and DX
• Optimizing product deliveries to Lawson stores through AI-driven route optimization
• Reducing GHG emissions due to lower total mileage
• Implementing warehouse DX solutions such as robots
• Expanding renewable energy portfolio in focus regions
• Accelerating next-generation energy businesses
• Enhancing and internalizing power supply-demand adjustment functions
• Promoting the realization of local contribution plan
• Adopting environment-friendly design and construction methods in real estate
• Introducing energy conservation and renewable energy in real estate
• Promoting growth strategies of MC’s affiliates
• Developing and operating high-quality, environmentally sustainable urban infrastructure
• Developing and managing self-sustaining decentralized communities and smart cities
• Conducting annual surveys of suppliers (Sustainable Supply Chain Survey)
• Implementing corrective measures and providing guidance and assistance to suppliers
• Re-evaluating business relationships with suppliers that fail to implement corrective measures
• Conducting human rights and environmental due diligence
• Strengthening Groupwide efforts to respect human rights through employee training and sustainability surveys
• Formulating environmental and human rights due diligence guidelines when implementing investment proposals

Supply Chain Management

Supplier Audits: 1,016 supplier companies in 50 countries and regions (FY2021)

Responsible Procurement

• Mitsubishi Corporation Policy for Sustainable Supply Chain Management
• Human rights and environmental due diligence
• Regular communication with suppliers
• Site visits of suppliers
• Corrective measures and guidance for suppliers
• Re-evaluation of business relationships with non-compliant suppliers

Climate-Related Risks & Opportunities

Transition Risks

• Decline in demand for metallurgical coal
• Changes in supply chains due to heightened geopolitical risks
• Changes in the business and competitive environment of the automotive industry
• Rapid changes in national tax systems and laws and regulations due to decarbonization
• Supply chain fragmentation due to geopolitical risks
• Decrease in yields and production of agricultural produce due to climate change and natural disasters
• Impact of rising sea levels and ocean temperature on farming businesses
• Changes in regulations, policies, etc., for the electric power business
• Increased profit fluctuations in the electric power business due to increased price volatility in energy markets
• Decline in population and industrial competitiveness in Japan
• Changes in market conditions due to inflation and interest rates increase

Opportunities

• Increased demand for copper and raw materials for batteries due to EV development and the popularization of renewable energy power generation facilities
• Growth of automobile demand due to motorization in emerging countries
• Potential to build a total mobility service business
• Potential to enter new businesses by leveraging collective capabilities
• Spread and expansion of renewable energy across the world
• Introduction of national policy regulatory packages to support decarbonization
• Increased efforts by customers to procure renewable energy
• Increasing needs for supply-demand adjustment functions
• Emergence of cross-industry business opportunities utilizing green hydrogen
• Increasing demand for urban development and urban services
• Expansion of new technologies and solutions to achieve a carbon-neutral society
• Urbanization due to economic and population growth

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation, GRI, TCFD, TNFD

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

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

Initiatives contribute to these goals through decarbonization efforts, renewable energy development, sustainable supply chains, responsible procurement, human rights due diligence, community engagement, and partnerships with various stakeholders

Sustainable Products & Innovation

• Green hydrogen
• Ammonia
• Sustainable aviation fuel (SAF)
• E-methane
• Biomass plastics
• Recycled PET
• Environment-friendly cement
• Ready-mixed concrete
• Resin building materials
• Functional materials for weight reduction and electrification
• AI-driven on-demand bus service
• Autonomous driving services

Awards & Recognition

• Best Paper Award by the International Coral Reef Society

Environmental Metrics

ESG Focus Areas

• Climate Change (GHG Emissions)
• Natural Capital (Biodiversity)
• Human Rights (Occupational Safety and Health)
• Decarbonized Societies
• Sustainable Societies and Lifestyles
• Innovation
• Regional Issues
• Human Rights
• Workforce Diversity
• Corporate Governance

Environmental Achievements

• Reduced Scope 1 & 2 emissions by 13% from FY2020 baseline in FY2023 (22.08 million t-CO2e)
• Avoided emissions of approximately 3 million t-CO2e per year through renewable energy initiatives
• Avoided emissions of approximately 50 million t-CO2e (lifetime) through copper supply

Social Achievements

• Established a company-wide DE&I working group and implemented various initiatives to foster a diverse and inclusive workplace
• Reduced Lost Time Injury Frequency Rate (LTIFR) every year
• Increased percentage of annual paid leave days taken from 60% to 71%

Governance Achievements

• Transitioned to a Company with an Audit & Supervisory Committee in June 2024 to enhance responsiveness and monitoring
• Linked executive compensation to business performance and sustainability factors
• Strengthened two-way engagement with stakeholders

Climate Goals & Targets

Environmental Challenges

• Rising volatility in market prices for resources due to geopolitical tensions and economic trends
• Declining demand for oil and natural gas due to stricter environmental regulations
• Increased demand for oil and natural gas due to renewed energy security awareness
• Impact on existing businesses caused by soaring construction, raw materials, transportation costs, etc.
• Impact on existing businesses caused by geopolitical risks
• Decrease in supply of agricultural and marine products due to climate change
• Occurrence of societal and environmental challenges in the supply chain
• Destabilization of the food supply network due to conflicts
• Changes in food preferences
• Decrease in domestic demand due to population decline
• Tightening supply chains due to labor shortages
• Decline in consumption due to inflation and rising interest rates
• Changes in regulations, policies, etc., for the power business
• Profit fluctuations due to increased price volatility in energy markets
• Grid capacity shortages due to increased power demand

Mitigation Strategies

• Proactive and strategic portfolio replacement under the Value-Added Cyclical Growth Model
• Disciplined growth investment and risk management
• Strengthening business portfolio through risk management
• Continuous strengthening of corporate governance
• Strengthening stakeholder engagement
• Produce sustainable food resources and establish stable supply systems
• Provide food that contributes to great taste and health
• Utilize cutting-edge technology and innovation
• Promote portfolio management and the Value-Added Cyclical Growth Model
• Enter new service areas and transform the profit model
• Accelerate measures to capture demand from expanding markets
• Differentiate the C2B businesses by using digital technology
• Strengthen the power value chain functions
• Promote the construction and expansion of renewable energy value chains

Supply Chain Management

Responsible Procurement

• Implementing human rights due diligence for business activities
• Supply chain management

Climate-Related Risks & Opportunities

Physical Risks

• Crop failures due to abnormal weather
• Changes in suitable farming areas due to rising ocean temperatures
• Depletion of natural marine resources

Transition Risks

• Decline in demand for steelmaking coal
• Decline in market value of chemicals derived from fossil fuels
• Changes in regulations, policies, etc., for the power business

Opportunities

• Expansion of businesses related to critical minerals
• Creation and expansion of demand for decarbonized products
• New business opportunities for secondary resources
• Spread and expansion of renewable energy
• Increasing needs for supply-demand adjustment functions

Reporting Standards

Frameworks Used: GHG Protocol

Third-party Assurance: Deloitte Touche Tohmatsu LLC

Environmental Metrics

ESG Focus Areas

• Realizing a Carbon Neutral Society
• Conserving and Effectively Utilizing Natural Capital
• Promoting Stable, Sustainable Societies and Lifestyles
• Utilizing Innovation to Address Societal Needs
• Addressing Regional Issues and Growing Together with Local Communities
• Respecting Human Rights in Our Business Operations
• Fostering Vibrant Workplaces That Maximize the Potential of a Diverse Workforce
• Realizing a Highly Transparent and Flexible Organization

Environmental Achievements

• Halve greenhouse gas emissions by FY2030 (FY2020 baseline), Net Zero by 2050
• Established Roadmap to a Carbon Neutral Society
• Introduced mechanisms for simultaneously decarbonizing and reinforcing portfolio
• Investments in decarbonization-related ventures (AP Ventures, Breakthrough Energy Catalyst)

Social Achievements

• Various CSR initiatives under themes: “Realizing an Inclusive Society,” “Empowering the Next Generation” and “Conserving the Environment”
• Support for regions affected by natural disasters
• Employee volunteer activities

Governance Achievements

• Strengthened corporate governance
• Adopted a Company with an Audit & Supervisory Committee
• Established internal rules and regulations, including codes of conduct and whistleblower systems
• Appointed Compliance Officers to each Business Group
• Implemented Business Continuity Management (BCM)

Climate Goals & Targets

Environmental Challenges

• Climate change poses significant business risks
• Need to formulate specific decarbonization policies considering varying regional conditions
• Challenges faced by the Japanese healthcare sector (aging society, increasing medical spending)

Mitigation Strategies

• Formulated Roadmap to a Carbon Neutral Society with net-zero GHG emissions goal by 2050
• Introduced mechanisms for simultaneously decarbonizing and reinforcing portfolio (Scenario Analysis, Transform Discussions, Investment Planning, Evaluation of New Investments)
• MC Healthcare provides solutions for hospital management, medication, and medical equipment

Supply Chain Management

Climate-Related Risks & Opportunities