Climate Change Data

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Supply Chains
• Human Rights
• Infrastructure and essential services
• Materials & Circular economy
• Market-oriented approach in growing markets

Environmental Achievements

• Reduce SCOPE1/2 emissions from existing businesses by 60% by 2030 (SCOPE2 net zero by 2030).
• Zero thermal coal interests by 2030
• Zero coking coal interests by 2050
• Net Zero emissions by 2050

Social Achievements

• Development of Mining/Gas Interests and Forest Resources
• Expansion of service-related businesses addressing domestic and overseas market needs
• Enhancement of long-term overseas training program
• Increase in ratio of performance-linked (variable) remuneration

Governance Achievements

• Ratio of Outside Directors to 50%
• Ratio of Women Executives to 23%
• Revision of Officer Remuneration Systems

Climate Goals & Targets

Environmental Challenges

• High risk business areas identified in supply chains (Palm Oil, Oil and Gas, Minerals, Forestry Products, Sugar, Textiles, Chemicals, Food, Communications)
• Potential for land expropriation, deforestation, environmental pollution, and labor issues in supply chains.

Mitigation Strategies

• Ensure full alignment and understanding of issues contained in Sojitz Group Human Rights Policy across group companies
• Run PDCA cycle to maintain focus on high risk business areas; Enhance PDCA cycle through third-party reviews and utilization of cycle in identifying emerging risks
• Addressing high-risk business areas

Supply Chain Management

Responsible Procurement

• Sojitz Group CSR Action Guidelines for Supply Chains

Climate-Related Risks & Opportunities

Transition Risks

• Hydrogen reduction steelmaking
• CCS/CCUS technology
• Electric furnance steelmaking
• Green Hydrogen Production

Opportunities

• Growth of Circular Business
• Green hydrogen production
• Hydrogen Direct Reduction steelmaking

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Environment
• Local Communities
• Resources
• Human Resources
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 27.7% relative to the 2019 base year.
• Achieved ahead of schedule its target of reducing its thermal coal interests to half or less of FY2018 as the base year.
• Reduced thermal coal interests from JPY 49 billion in FY2018 to JPY 10 billion in FY2022.

Social Achievements

• Launched the “Hassojitz” (Sojitz + Ideas) Project in FY2019 to create new sustainable businesses.
• Entered into a capital and business alliance with ASF Co., Ltd. to support the creation of businesses using EVs.

Governance Achievements

• Established board-level oversight of climate-related issues.
• Established the Sustainability Committee, chaired by the CEO, to deliberate on sustainability issues, including climate change.

Climate Goals & Targets

Environmental Challenges

• Transition risks (market shrinkage and rising carbon prices) related to coal interests and power generation businesses.
• Physical risks (floods) impacting assets in Southeast Asia.
• Reducing Scope 3 emissions across the value chain.

Mitigation Strategies

• Scenario analysis using Wood Mackenzie’s and IEA’s data to assess climate-related risks and opportunities.
• Divestment of thermal coal interests.
• Investment in renewable energy projects.
• Implementation of emissions reduction initiatives (e.g., solar PV).
• Development of a company-wide system to address risk management.
• BCP action plans for high-risk regions.

Supply Chain Management

Supplier Audits: 100% of suppliers by procurement spend comply with Sojitz Group CSR Action Guidelines for Supply Chains.

Responsible Procurement

• Sojitz Group CSR Action Guidelines for Supply Chains

Climate-Related Risks & Opportunities

Physical Risks

• Floods

Transition Risks

• Rising carbon prices
• Market shrinkage for coal interests

Opportunities

• Expansion of renewable energy businesses
• Development of low-emission goods and services (e.g., EVs, hydrogen).

Reporting Standards

Frameworks Used: TCFD, UN Global Compact, Greenhouse Gas Protocol

Certifications: ISO 14001

Third-party Assurance: KPMG Azusa

UN Sustainable Development Goals

• Various SDGs

Initiatives contribute to various SDGs.

Sustainable Products & Innovation

• Renewable energy (solar PV, onshore wind)
• Electric vehicles
• Hydrogen

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Platinum Kurumin Plus certification
• Award for Excellence at NIKKEI Integrated Report Award 2023