Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Preservation
• Safety and Quality
• Human Assets
• Social Contributions
• Corporate Governance

Environmental Achievements

• 72% reduction in port crane power consumption using ultra-fast charging battery
• CO2 emissions declined by approximately 5% from the previous year.
• Water consumption was down approximately 4% from the previous year.

Social Achievements

• Delivery of the Miyama City Biomass Center Facility to recycle food and human waste as a biomass resource
• Acquisition of Kurumin Logo certification, which is granted to companies supporting the development of the next generation
• Initiatives to increase employee motivation and strengthen engagement through surveys and various measures.

Governance Achievements

• Shifting to a pure holding company structure on April 1, 2018
• Establishment of the Group Management Committee and the Management Committee
• Improved corporate governance with the separation of supervision and execution, and by ensuring fairness and transparency through the establishment of the Personnel and Compensation Advisory Committees.

Climate Goals & Targets

Environmental Challenges

• Significant damage to financial base due to large-scale losses in overseas engineering, procurement and construction (EPC) projects.
• Declining profits in existing businesses such as shipbuilding and engineering.
• Sluggish shipping and shipbuilding markets due to uncertainties relating to the intensifying trade war between the U.S. and China, a sharp decline in shipments due to mine dam collapse of a major Brazilian resource company, and fast approaching, stricter environmental regulations.

Mitigation Strategies

• Formulated the Mitsui E&S Group Business Revival Plan in May 2019.
• Measures for strengthening the financial and profit structure (asset sales, cost reduction).
• Measures for reforming the business structure (withdrawal from unprofitable businesses, concentration of resources in growth businesses).

Supply Chain Management

Responsible Procurement

• Mitsui Administration Manual (MAM) for fair and equitable dealings with business partners
• Rules and Ethics for Material Procurement

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Growth in renewable energy market

Reporting Standards

Frameworks Used: Ministry of the Environment, Environmental Reporting Guidelines, GRI, Sustainability Reporting Guidelines Version 4, ISO 26000, Ministry of Economy, Trade and Industry, Guidance for Collaborative Value Creation

Certifications: ISO 14001

Sustainable Products & Innovation

• Energy-saving ships
• Gas turbine co-generation systems
• Floating mobile power plants
• Small and midsize gas carriers
• Decommissioning robots

Awards & Recognition

• Ministerial Commendation for Local Revitalization Support Tax System

Environmental Metrics

ESG Focus Areas

• Creating a decarbonized society
• Resolving issues of a society with a shrinking population
• Diversity and Inclusion

Environmental Achievements

• CO2 reduction through the launch of environmentally friendly products onto the market
• CO2 reduction resulting from the Mitsui E&S Group’s production activities (66% reduction compared to FY2019, 17% reduction compared to FY2019)
• Delivered the first Near Zero-emission (NZE) Transtainer® to Kobe International Container Terminal (KICT)

Social Achievements

• Established the Mitsui E&S Group Health Management Declaration to help maintain and improve the physical and mental health of each Group employee
• Formulated General Employer Action Plans based on the Act on Advancement of Measures to Support Raising Next-Generation Children
• Increased the number of employees taking childcare leave

Governance Achievements

• Redefined the Group’s Company Philosophy and Vision in view of the quick shift to a sustainable society and other environmental changes
• Established a system to enable transparent, fair, prompt, and decisive decision making
• Improved the impartiality and transparency of the management of our business through the establishment of the Personel Advisory and Compensation Advisory Committees

Climate Goals & Targets

Environmental Challenges

• Lingering impact of COVID-19
• Quick shift to a sustainable society
• Destabilization of the global political balance
• Significant damage to our financial foundation
• Severe business environment defined by the impact of COVID-19, the rise of materials and equipment prices and other factors

Mitigation Strategies

• Implemented its Business Revival Plan
• Improved our financial and earnings positions and with business restructuring which includes our withdrawal from unprofitable businesses
• Sold many assets and businesses and obtained nearly 120 billion yen in capital
• Formulated Mid-Term Business Plan 2023 one year earlier
• Took capital measures totaling approximately 17 billion yen for greater soundness of our financial position and growth investments

Supply Chain Management

Responsible Procurement

• Green procurement that considers the reduction of environmental impact in pursuit of a sustainable society

Climate-Related Risks & Opportunities

Physical Risks

• Damage due to abnormal weather (e.g. typhoons, tornadoes, floods, heavy rain)

Transition Risks

• Introduction of carbon pricing
• Carbon emission targets and policies
• Widespread adoption of renewable energy and energy-saving technologies
• Change in reputation among customers

Opportunities

• Widespread adoption of low-carbon (renewable energy) technologies
• Customers’ environmental awareness increases

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation, Sustainability Reporting Standards

Certifications: ISO 14001, ISO 9001

UN Sustainable Development Goals

• Goal 7
• Goal 13

Mitsui E&S Holdings agrees with the SDGs (Sustainable Development Goals), an international goal set by the United Nations to solve global issues.

Sustainable Products & Innovation

• Near Zero Emission (NZE) Transtainers®
• Ammonia fuel engines
• Hydrogen fuel cranes
• Engines for new fuels (LNG and ammonia)

Awards & Recognition

• Ministerial Commendation for Local Revitalization Support Tax System