Global Environment & Climate ChangeApproaches to Global Environment & Climate Change

Basic Approach

Climate change is becoming an issue with significant impact across a wide range of areas, including global warming, changes to the natural environment, and an increase in natural disasters.
As we engage in global businesses, the Marubeni Group acknowledges that the climate change issue is a serious risk, while also recognizing that it may offer business opportunities. The Marubeni Group considers our contribution in the areas of both mitigation and adaptation of climate change as our priority subject. We will take initiatives for contribution through our businesses.

Business Policies Pertaining to Sustainability
(In Relation to Coal-Fired Power Generation Business and Renewable Energy Generation Business)

Marubeni Corporation (hereinafter, “Marubeni”) recognizes that climate change is a major issue shared by all of humanity. It is a problem that threatens the co-existence of the global environment and society, a problem that has an enormous effect on Marubeni’s business and its shareholders, and a problem that Marubeni believes must be dealt with swiftly. Therefore, as part of Marubeni’s promotion of sustainable management, and in order to contribute fight global climate change, Marubeni has established new business policies (hereinafter, “Policies”) regarding its coal-fired power generation business and its renewable energy generation business.

1. The Process of Pulling Out of Coal-Fired Power Generation
As a global player in the power business, Marubeni will reduce its greenhouse gas emissions volume from its power generation portfolio. By 2030, Marubeni will cut its FY2018 coal-fired power net generation capacity of approximately 3GW in half. Additionally, Marubeni will deploy innovative technologies to increase the efficiency of its portfolio assets, and proactively promote the reduction of its environmental impact.

2. The Policy on New Coal-Fired Power Generation Business
As a general principle, Marubeni will no longer enter into any new coal-fired power generation business. However, Marubeni might consider pursuing projects that adopt BAT (“Best Available Technology”, which at present is USC: “Ultra-supercritical steam generating technology) and are compliant with the policies and measures of the Japanese government and any country in which the project will be executed (e.g. energy supply stability, poverty and employment measures and economic growth policies). Nevertheless, even if Marubeni does make an exception to take on a project like this, Marubeni will make proposals on the creation of a low-carbon society, efficient power generation systems and the diversification of energy sources; Marubeni will make efforts to contribute to the resolution of local issues in the country and/or region in which the project is executed.

3. Proactive Involvement in Renewable Energy Generation Business
Looking forward to the expansion of the renewable energy generation business, Marubeni will strive to expand the ratio of power generated by renewable energy sources in its own net power supply from approximately 10% to approximately 20% by 2023. Furthermore, Marubeni will contribute to the transition towards a low-carbon society by promoting the expansion of the handled volume of renewable energy sources pertaining to energy trading. An example of this is SmartestEnergy Ltd.*, a wholly-owned subsidiary located in the United Kingdom that manages approximately 3GW of total energy, which is purchased from independent generators; about 80% of that 3GW is generated by renewable energy sources.



Moving toward the achievement of these Policies, Marubeni will work to properly communicate and cooperate with its diverse stakeholders, and also proactively disclose updates on Marubeni’s progress in reaching these goals. Additionally, given the changes to the external environment, Marubeni will refer to the various international guidelines, beginning with the OECD Export Credits Arrangement, diligently monitor measures taken by different countries in terms of coal-fired and renewable energy generation business, as well as the international state of affairs, and use this information to periodically review and rework its own policies from the standpoint of climate change counter measures.

In April 2018, Marubeni launched the Sustainability Management Committee (hereinafter, “the Committee”) under the supervision of the President and CEO, with the aim to strengthen the company’s sustainability initiatives. Since its launch, and while soliciting the opinions of external parties, the Committee has discussed a number of basic policies and measures pertaining to Marubeni’s sustainability initiatives, beginning with identification and periodic review of the materiality. Policies and measures considered as a result of these discussions will be announced as part of Marubeni’s ESG related data once it has been compiled.

SmartestEnergy Ltd., established by Marubeni in the U.K. in 2001,purchases power from small to medium sized independent generators, and resells on the wholesale market or to retail customers.
https://www.smartestenergy.com/

Cooperation and Collaboration with Various Organizations

Marubeni is committed to proactively and appropriately engaging in diverse climate change countermeasures through cooperation and collaboration with various stakeholders, regardless of the level of influence of the stakeholder or affiliated industry group.

Industry Groups

As a member of the Japan Foreign Trade Council (JFTC), Marubeni agrees with the Low-Carbon Society (Plan for achieving the post-Kyoto Protocol Targets) proposed by Nippon Keidanren (“Keidanren”), and takes part in the working groups and public meetings on climate change held by Keidanren and JFTC.
Marubeni takes climate change countermeasures in accordance with the policies of Keidanren’s Low-Carbon Society. We have set the goal of reducing the energy use (electricity and gas) at the Tokyo Head Office and the Osaka Branch by 10.5% in the fiscal year ended March 2021 relative to the fiscal year ended March 2010, by introducing energy-saving facilities etc. (Marubeni takes initiatives for climate change countermeasures regardless of the level of influence of the affiliated industry group.)

Marubeni also takes part in discussions related to environmental initiatives of trading companies, as a member of the Global Environment Committee of the Japan Foreign Trade Council (JFTC).
At the Committee, we make plans for the Voluntary Action on the Environment (Commitment to a Low Carbon Society) for the trading company industry, grasp energy consumption, promote the 3R (reduce, reuse, recycle) activity, and incorporate new energy through our business activities.


Government and Government Offices

Marubeni actively participates in subcommittees and workshops on climate change held by the Ministry of Economy, Trade and Industry (METI) and the Ministry of the Environment. In the year ended March 31, 2019, we became a working-group member of the METI Study Group on Implementing TCFD Recommendations for Mobilizing Green Finance through Proactive Corporate Disclosure (Study Group on Implementing TCFD Recommendations), and have discussions with other group-member companies on the best approach to disclosure of the financial impact of climate change.

Other

Marubeni supports the activities of the international environmental protection group, World Wide Fund for Nature. Marubeni participates in certification systems in areas such as wood products, seafood, and vegetable oil. Additionally, the Marubeni subsidiary Mibugawa Power Company takes part in the Japan Climate Initiative and promotes renewable energy projects with the aim of creating a society that leaves a minimal carbon footprint.

Implementation System

The Sustainability Management Committee plays the main role in our approach related to climate change by making activity plans and promoting various measures.
The Committee is chaired by the Chief Financial Officer (currently Senior Managing Executive Officer, Member of the Board). Committee members consist of advisors including External Directors and External Audit & Supervisory Board Membes, in addition to representatives from our CS Group and Business Divisions.
Committee meetings include extensive discussion of our company-wide commitment, outcomes, and how we approach to businesses contributing to climate change countermeasures and activities contributing to local communities and residents through our businesses.
These initiatives are reported to the Board of Directors on a regular basis, and are ultimately managed under the supervision of the Board of Directors.

Climate scenario analysis

Marubeni Group is conducting scenario analysis to analyze the impact that climate change is likely to have on its businesses and finances. The Marubeni Group will analyze the risks, opportunities and impacts on its businesses from climate change based on a Current Policies Scenario and a 2.0°C Scenario, and will use the results in considering business plans and strategies.
In feed ingredients procurement in the Food Division, taking into account the possibility of increases in product prices and transportation costs due to a decrease in production volume in the agriculture and livestock industries resulting from climate change, the Marubeni Group is actively responding to the risks that accompany climate change by viewing them as opportunities. This response includes geographic diversification of suppliers and customers, cultivation of new production regions, research and development of alternative and new products, and acquisition of new partners.