Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Compliance
• Human Resources
• Social Contribution
• Environmental Protection

Environmental Achievements

• Achieved ISO14001 certification across 48 companies within the Marubeni Group.
• Set targets for energy reduction (7% by 2012), recycling rate (80% by 2012), and green purchasing ratio (85% by 2012) in major offices.
• Contributed to over 70 million tons of greenhouse gas reduction through various projects by May 2008.

Social Achievements

• Established the Marubeni Foundation in 1974, providing 100 million yen annually to social welfare facilities.
• Introduced Family Support Leave (5 days annually) and expanded Special Sick Leave for childcare and caregiving.
• Implemented a fair employment system, eliminating discrimination in recruitment and promoting diversity.

Governance Achievements

• Established the Internal Control Committee and the Disclosure Committee in April 2008.
• Strengthened compliance measures with the establishment of a Compliance Committee and a reporting/consultation system.
• Implemented a new personnel system based on merit and job roles in April 2006.

Climate Goals & Targets

Environmental Challenges

• Uncertainty in the global economic situation, including the downturn in the US economy.
• Meeting the greenhouse gas emission reduction targets set by the Kyoto Protocol.
• Maintaining compliance with increasingly stringent environmental regulations.

Mitigation Strategies

• Implemented strict internal controls and risk management systems.
• Developed alternative sourcing strategies and actively pursued new environmental businesses.
• Strengthened compliance systems, including employee training and a reporting/consultation system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Requests for cooperation on environmental protection activities from major suppliers and contractors.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of renewable energy and environmental businesses.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines (G3), Ministry of the Environment's Environmental Reporting Guidelines (2005)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Renewable energy projects (biomass, solar, wind, hydropower)
• Recycling and resource recovery businesses
• Biodiesel fuel production in Brazil

Awards & Recognition

• Tokyo Stock Exchange Disclosure Award (2007)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• CSR
• Environmental Preservation

Environmental Achievements

• Introduced an environmental management system (EMS) based on the ISO 14001 standard.
• Expanded recycling operations.
• Secured emissions credits in excess of 70 million tons.
• Secured approximately 390,000 hectares of sustainable forestland.

Social Achievements

• Expanded social contribution activities.
• Strengthened compliance structure.
• Implemented various reforms in its human resources system.
• Expanded scholarship programs in the ASEAN region.

Governance Achievements

• Strengthened corporate governance.
• Enhanced internal control system.
• Improved compliance structure.
• Established Internal Control Committee and Disclosure Committee.

Climate Goals & Targets

Environmental Challenges

• Slowdown in the U.S. economy.
• Surges in natural resource prices.
• Food-supply crises.
• Rise of environmental problems.
• Worsening economic conditions worldwide.
• Increased competition in EPC sector.
• Surging energy prices.
• Turmoil in the global financial market.

Mitigation Strategies

• Established a rigorous risk management system.
• Expanded prime asset portfolio.
• Pursued higher asset efficiency.
• Implemented Integrated Risk Management.
• Strengthened compliance training for overseas operations.
• Enhanced portfolio management.
• Revised investment and loan follow-up system.
• Implemented measures to enhance internal control systems.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Emissions credit trading

Sustainable Products & Innovation

• Biomass ethanol
• Bio-diesel
• Wind- and solar-power generation
• Solar modules

Awards & Recognition

• 2007 global “Sponsor of the Year” by Project Finance International magazine

Environmental Metrics

ESG Focus Areas

• Human Rights
• Diversity & Inclusion
• Work-Life Balance
• Employee Well-being
• Compliance
• Social Contribution
• Fair Employment Practices

Social Achievements

• Implemented various initiatives to promote work-life balance, including extended childcare and eldercare leave, family support leave, and spouse relocation leave.
• Established a diversity management team to further support the diverse workforce.
• Achieved 100% maternity leave uptake rate.
• Introduced a fair employment system and actively promoted open entry.
• Obtained the 'Kurumin' mark for its commitment to childcare support.
• Reduced overtime hours through various initiatives.
• Established Marubeni Office Support Co., Ltd. to promote employment of people with disabilities.
• Implemented mental health support measures, including e-learning courses, stress checks, and EAP.

Governance Achievements

• Revised the Compliance Manual to include stricter measures against sexual harassment.
• Established a sexual harassment prevention policy.
• Implemented a transparent and fair evaluation system.
• Strengthened information disclosure practices and established a disclosure committee.
• Received the Tokyo Stock Exchange's Listed Company Disclosure Award.

Climate Goals & Targets

Environmental Challenges

• Maintaining a balance between work and life for employees.
• Promoting diversity and inclusion in the workplace.
• Preventing sexual harassment.
• Ensuring fair employment practices.
• Maintaining a healthy work environment.

Mitigation Strategies

• Various work-life balance initiatives (extended leave, family support leave, etc.).
• Establishment of a diversity management team.
• Revised Compliance Manual and sexual harassment prevention policy.
• Fair employment system and open entry.
• Mental health support measures (e-learning, stress checks, EAP).

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Tokyo Stock Exchange's Listed Company Disclosure Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Social Contribution
• Human Rights
• Human Resources
• Governance
• Compliance

Environmental Achievements

• Reduced CO2 emissions by 23.9% from 2005.
• Achieved 82.2% recycling rate.
• Developed and implemented a sustainable pulp business using 100% acacia plantation wood.
• Developed renewable energy projects in various countries (hydropower, wind power, geothermal).

Social Achievements

• Launched the Marubeni Fund, providing ¥100 million annually to social welfare facilities.
• Established scholarship funds in several ASEAN countries.
• Implemented various community development initiatives in project areas (e.g., school construction, infrastructure development).
• Launched a social contribution banana, "BRAVO," with 1% of sales donated to support women and children in poverty.

Governance Achievements

• Strengthened corporate governance, internal controls, and compliance systems.
• Established a compliance committee and issued a compliance manual.
• No major compliance violations reported in 2009.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (implied)
• Maintaining sustainable practices in a volatile global economy.
• Ensuring compliance across diverse global operations.

Mitigation Strategies

• Developed alternative sourcing strategies (implied)
• Continued commitment to CSR and environmental initiatives despite economic downturn.
• Strengthened compliance systems and training programs.

Supply Chain Management

Responsible Procurement

• CSR guidelines for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Renewable energy development

Reporting Standards

Frameworks Used: GRI G3, Japanese Ministry of the Environment's Environmental Reporting Guidelines (2007)

Certifications: ISO 14001 (67 companies within Marubeni Group)

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Indoor vegetable factory
• Next-generation white LED

Awards & Recognition

• Energy Management Excellent Factory Award (West Japan Feed Co.)
• New Energy Foundation Chairman's Award (Minobugawa Power Co.)

Environmental Metrics

ESG Focus Areas

• Human Resources and Human Rights
• Diversity and Inclusion
• Work-Life Balance
• Mental Health Support
• Senior Citizen Employment
• Disability Employment
• Compliance
• Fair Hiring Practices
• Stakeholder Engagement
• Labor Relations

Social Achievements

• Implemented a three-pronged approach to human resource development focusing on experience, compensation, and training.
• Revised work-life balance policies.
• Launched a mental health support program.
• Introduced a life event support program with a focus on caregiving needs.
• Established a system for promoting dynamic personnel transfers and rotations.
• Increased the number of female executives.
• Continued employment system for employees aged 60 and above.
• Established Marubeni Office Support Co., Ltd., a special subsidiary for employing people with disabilities.
• Received the 'Kurumin' mark for its commitment to supporting childcare.
• Strengthened sexual harassment and power harassment prevention measures.

Governance Achievements

• Established an HR Strategy Council chaired by the president to address changes in the business environment and business model diversification.
• Appointed HR managers in each business division, corporate staff division, and overseas region.
• Developed and distributed the 'Marubeni Recruitment Manual' to ensure fair hiring practices.
• Implemented open entry system for job applications.
• Established a grievance mechanism through a consultation desk in the HR department and the 'Door of Courage' compliance consultation desk.

Climate Goals & Targets

Environmental Challenges

• Concerns about caregiving needs among employees.
• Need to further promote work-life balance.
• Need to improve mental health support.

Mitigation Strategies

• Revised work-life balance policies.
• Launched a mental health support program.
• Implemented a life event support program with a focus on caregiving needs.
• Conducted a survey on caregiving needs.
• Offered e-Learning for self-care training.
• Provided individual consultations and improved systems and soft measures.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Special Award from the Chilean Mining Society (SONAMI)
• Raul Saez Award from the Chilean Institute of Mining Engineers (IIMCh)
• Benjamin Teplizky Lijavetzky Award from the Chilean Ministry of Mining
• Excellent Award for 'M-SPIRIT' and Overall Award for 'MS+' in the Keidanren Recommended In-house Newsletter

Environmental Metrics

ESG Focus Areas

• Human Resources
• Risk Management
• CSR
• Environmental Protection
• Supply Chain Management

Environmental Achievements

• Achieved a 34.4% reduction in energy usage at major offices compared to the 2006 level.
• Waste recycling rate at Tokyo Head Office reached 93.2%.
• Green procurement rate at major offices reached 87.2%.

Social Achievements

• Implemented a top management-led human resources strategy.
• Established an HR Strategy Committee chaired by the CEO.
• Launched various volunteer programs (Mt. Fuji cleanup, Okutama Forest Thinning, Arakawa Clean Aid).
• Provided ¥500 million in special assistance for earthquake recovery efforts.

Governance Achievements

• Established an executive officer system to separate supervisory and executive functions.
• Established various committees (Investment and Credit, Compliance, Compensation Consultative, CSR & Environment, Internal Control, Disclosure).
• Appointed two outside directors and three outside corporate auditors to enhance oversight.

Climate Goals & Targets

Environmental Challenges

• Lingering impact of the Great East Japan Earthquake and Europe's sovereign debt problem.
• Yen appreciation and other negative factors affecting financial results.
• Challenges in the overseas IPP business due to climate change, economic growth in emerging markets, and shifts in societal awareness.
• Supply chain challenges in developing countries (forced labor, child labor, environmental degradation).

Mitigation Strategies

• Strengthened financial base and upgraded risk management.
• Aggressively pursued new investment opportunities.
• Implemented integrated risk management, measuring maximum risk and limiting it within the scope of equity.
• Implemented a Basic Supply Chain CSR Policy and Supply Chain CSR Guidelines.
• Conducted employee training and site evaluations of business partners.

Supply Chain Management

Responsible Procurement

• Basic Supply Chain CSR Policy
• Supply Chain CSR Guidelines

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• CSR
• Environmental Protection
• Supply Chain Management
• Social Contribution
• Human Resources
• Human Rights

Environmental Achievements

• Reduced CO2 emissions by 45.8% versus the level in the year ended March 31, 2006
• Achieved a waste recycling rate of 92.2% at Tokyo Head Office
• Achieved a green product purchase rate of 86.8% at major offices

Social Achievements

• Launched various social contribution activities including donations to social welfare organizations and volunteer programs
• Established overseas scholarship funds in several countries
• Implemented a three-pronged HR strategy emphasizing practical experience, assessment and incentives, and training
• Promoted work-life balance initiatives

Governance Achievements

• Enhanced corporate governance by separating supervision and execution functions
• Established a compliance system based on the Company Creed and Corporate Principles
• Implemented a basic internal control policy
• Appointed outside directors and corporate auditors

Climate Goals & Targets

Environmental Challenges

• Weak global economic recovery
• Fluctuations in commodity prices and exchange rates
• Slowdown in economic growth in emerging markets
• Supply chain risks related to labor standards and environmental issues
• Risks associated with investments in new businesses
• Credit risks from business partners

Mitigation Strategies

• Rigorous risk management including integrated risk management and Value at Risk (VaR) calculations
• Strengthened internal control systems
• Established the “Door of Courage” compliance reporting hotline
• Revised the Basic Supply Chain CSR Policy
• Implemented supply chain management training and on-site inspections
• Developed a three-pronged HR strategy to develop globally viable human resources

Supply Chain Management

Supplier Audits: 2

Responsible Procurement

• Basic Supply Chain CSR Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Forestry
• Human Rights & Co-Development with Communities
• Sustainable & Resilient Value Chains

Environmental Achievements

• Cut FYE 3/2019 coal-fired power net generation capacity of approximately 3GW in half by 2030.
• Aim to double the ratio of power generated by renewable energy sources in our own net power supply by 2023.
• Aim to grow green revenue from roughly ¥700 billion to around ¥1.3 trillion by FYE 3/2024.

Social Achievements

• Established a Russian-Japanese health checkup and prevention center in Russia.
• Established a pharmaceutical product wholesaler in China.
• Revised Basic Supply Chain CSR Policy and formulated a new Basic Supply Chain Sustainability Policy.

Governance Achievements

• Flattened the chain of command from four layers to three.
• Established the Next Generation Business Development Division.
• Achieved a net DE ratio of 0.90 times, an improvement by 0.14 points from the previous fiscal year-end.

Climate Goals & Targets

Environmental Challenges

• Climate change, deforestation, extreme climate events, and natural disasters.
• Nearly half of the global population subsists on less than $5.50 per day and 4.3 million children are reportedly ensnared in forced labor.
• Weather/fire risks to tree farming business
• Pulp business’s sensitivity to market price fluctuations
• Changes in political or economic conditions in end-market countries (country risk)
• Risk of natural disasters such as crop failures due to abnormal weather
• Trade in petrochemical and other products highly sensitive to market price changes
• Downturn in trade due to political or economic risks in the U.S. and/or China
• High volatility of fuel energy and/or natural resource prices
• Weather variation risks that would affect the power supply-demand balance
• Changes in sales channels due to shift in LNG demand toward Asia
• Market fluctuations such as resource prices and shifts in geopolitical trends
• Changes in energy demand structure in developed countries
• Infrastructure development/replacement demand in both developing and developed countries
• New PPP business opportunities utilizing private capital
• Increasingly stringent environmental regulations and growing environmental consciousness
• New infrastructure business opportunities arising from technological innovation
• Decreased business opportunities due to slowdown in economic growth
• National policies and regulations that affect investment, EPC and trade opportunities
• Event risk, including the risk of terrorism, regional conflicts, war, epidemics or other changes in international conditions and resultant increases in jet fuel prices
• Fluctuation in newbuild ship pricing and/or marine freight rates
• U.S. economic slowdown; rising U.S. interest rates
• Temporary slowdown in growth in passenger traffic due to, e.g., terrorism or regional conflict
• Slowdown in middle-class growth due to, e.g., emerging market currency depreciation

Mitigation Strategies

• Adopted a target of doubling the ratio of power generated by renewable energy sources in our own net power supply by 2023.
• Aim to grow green revenue from roughly ¥700 billion to around ¥1.3 trillion by FYE 3/2024.
• Revised Basic Supply Chain CSR Policy and formulated a new Basic Supply Chain Sustainability Policy.
• Conducting human rights due diligence on business projects.
• Strengthening cash flow management.
• Maintaining financial discipline and further strengthening our financial foundation by achieving three-year cumulative positive free cash flow of at least ¥100 billion after delivery of shareholder returns, and use it to pay down debt.
• Stringently adhere to our new “SPP” business policies irrespective of the business model involved, strictly maintain investment discipline and strategically screen new investments based on a thorough understanding of their risk/return profiles.
• Implementing various health management initiatives.
• Upgrading internal control systems.

Supply Chain Management

Responsible Procurement

• Basic Supply Chain Sustainability Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events and natural disasters

Transition Risks

• Changes in energy mixes and policies in major countries
• Technological innovations in major power generation equipment such as offshore wind and solar power
• Policy change in liberalized power market-countries
• Changes in the business environment amid the transition to a low-carbon, circular society

Opportunities

• Growth in natural gas/LNG and new energy (e.g., ammonia, hydrogen) businesses amid transition to low-carbon society
• Growth in demand for nonferrous light metals by virtue of advent of IoT society and proliferation of EVs
• Development of business models aligned with trend toward ESG and SDGs, most notably decarbonization and reduction of plastic usage
• Increasingly stringent environmental regulations and growing environmental consciousness
• New infrastructure business opportunities arising from technological innovation
• Growth in opportunities to provide new solutions in response to changes in the everyday environment in the wake of advancements in digital and information technologies
• Development of life science and related businesses set to grow in tandem with population growth
• Entry into solar-power-related businesses that will promote proliferation of renewable energy

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Awards & Recognition

• Inclusion in Health & Productivity Stock Selection
• Certified as a 2019 Health and Productivity Management Outstanding Organization

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Forestry
• Human Rights & Co-development with Communities
• Sustainable & Resilient Value Chains
• Governance for Coexistence with Society

Environmental Achievements

• Avoided emissions from renewable energy power generation: Approx. 1.43 million t-CO2
• Increased the volume of carbon stocks in our forests to approx. 12 million t-CO2 by March 31, 2023 (target 19 million t-CO2 by 2030)
• All Chilean copper mines in which Marubeni participates have completed 100% conversion to renewable energy sources.

Social Achievements

• Established the IR & SR Department in FY ending March 31, 2025 to enhance dialogue with stakeholders.
• Participation rate of employees’ shareholding association: 94.5% as of March 31, 2024
• Eliminated distinction between career-track and administrative-track employees in July 2024.

Governance Achievements

• Established the Sustainability Management Committee, which reports directly to the President.
• Revised remuneration plan for Directors to incorporate incentive systems aligned with the company’s management strategy and medium-to long-term vision.
• Evaluated the effectiveness of the Board of Directors annually since FY ending March 31, 2017.

Climate Goals & Targets

Environmental Challenges

• Rapid expansion of digital technology
• Weaker international cooperation and rising geopolitical risks
• End of global ultra-easy monetary policy
• Addressing social issues for SDGs, rising demands for ESG management
• Fluctuations in commodity prices
• Supply chain disruptions
• Geopolitical risks
• Labor shortages

Mitigation Strategies

• Leveraging its extensive global network to swiftly understand the latest conditions affecting its individual businesses.
• Implementing Business Policies SPP (Strategy × Prime × Platform) for investment discipline.
• Strengthening investment discipline to avoid being misled by invisible synergies.
• Enhancing follow-up system to eliminate negative surprises.
• Implementing periodic evaluations using a PDCA cycle to raise the level of profitability.
• Improving capital efficiency through asset recycling.
• Conducting country risk management.
• Engaging in supply chain management aimed at constructing sustainable and resilient value chains.
• Formulating procurement policies for individual commodities with high sustainability-related risks.

Supply Chain Management

Supplier Audits: Approximately 23,000 Tier 1 suppliers notified of sustainability policies by FY ending March 31, 2023. Surveys conducted on food, metals, and apparel suppliers.

Responsible Procurement

• Basic Supply Chain Sustainability Policy
• Procurement policies for individual commodities (natural rubber, seafood products, livestock products, forest-derived products, palm oil, beef, coffee beans)

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Changes in energy policy
• Shift to renewable energy
• Carbon pricing
• Regulatory changes

Opportunities

• Expansion in renewable energy
• Development of emission reduction projects
• Growth in demand for copper and aluminum

Reporting Standards

Frameworks Used: TCFD

Certifications: Copper Mark

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly products
• Recycled textile materials
• Recycled carbon black
• Biodegradable plastics
• Sustainable Aviation Fuel (SAF)
• e-methane

Awards & Recognition

• Best Motivation Company Award 2024
• Shukatsu Kuchikomi Awards 2024 (5th overall)
• Health & Productivity Stock Selection 2024
• Eruboshi and Platinum Kurumin certifications

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Forestry
• Human Rights & Co-Development with Communities
• Sustainable & Resilient Value Chains
• Human Capital with High Social Value

Environmental Achievements

• Avoided emissions from renewable energy generation: Approximately 1.12 million t-CO2
• Halved net generation capacity in coal-fired power generation business (by 2025)
• Expanded ratio of power generated by renewable energy sources to approximately 21% (by March 31, 2023)
• Operation of afforestation projects in Indonesia and Australia (totaling about 130,000 hectares)

Social Achievements

• Launched "Female Empowerment at Work 2.0" initiative
• Increased employee engagement score
• Increased average training hours per employee
• Established a grievance mechanism (redress) related to human rights

Governance Achievements

• Revised compensation system for directors to enhance linkage with medium- to long-term corporate value
• Increased percentage of Outside Directors
• Strengthened supervisory functions of the Board of Directors
• Implemented Business Policies SPP (Strategy × Prime × Platform) and Marubeni Group Governance Policy

Climate Goals & Targets

Environmental Challenges

• Changes in the Global Economy and Industrial Structure
• Credit Risks Regarding Business Partners
• Investment Risk
• Ability to Procure Funds and Funding Cost
• Market Risks
• Risks Associated with Long-lived Assets
• Laws and Regulations
• Significant Lawsuits
• Environmental and Social Risks
• Risks from Natural and Other Disasters
• Country Risks
• Risks Related to Information Systems and Information Security
• Fluctuations in commodity prices
• Supply chain disruptions

Mitigation Strategies

• Integrated risk management
• Country risk management policy
• Commodity position management
• Investment discipline
• Sustainable and resilient value chains
• IT security governance framework
• Marubeni Group Anti-Corruption Policy
• Progressive dividend policy
• Strengthening existing business domains
• Green Strategy

Supply Chain Management

Supplier Audits: 23,000 Tier 1 suppliers notified of sustainability policies (FYE 3/2023)

Responsible Procurement

• Basic Supply Chain Sustainability Policy
• Procurement policies for individual commodities (coffee beans, forest-derived products, palm oil, beef)

Climate-Related Risks & Opportunities

Transition Risks

• Changes in business environment due to shift to renewable energy and low-carbon energy
• Decline in demand for fossil fuels

Opportunities

• Growth in demand for non-ferrous metals driven by digitalization of society and the adoption of renewable energy and electric vehicles (EVs)
• Growing business opportunities related to decarbonization and circular economy

Reporting Standards

Frameworks Used: IFRS Foundation: International Integrated Reporting Framework, Ministry of Economy, Trade, and Industry (METI) Guidance for Collaborative Value Creation, Global Reporting Initiative (GRI) Sustainability Reporting Standards, ISO26000 Guidance on Social Responsibility, TCFD

Certifications: ISO 26000, FSC®, Copper Mark

Sustainable Products & Innovation

• Biodiesel made from waste cooking oil
• Eco-friendly food products
• Low-carbon ammonia

Awards & Recognition

• Hyakumeisha Marunouchi Area Gold Award
• Link and Motivation Inc.’s Best Motivation Company Awards 2023 (Third Place)
• Health & Productivity Stock Selection
• Health and Productivity Management (White 500) category (six consecutive years)