- Climate Change
- Disclosure in line with the recommendations of the TCFD
- Sustainable Forestry
- Conservation of Biodiversity and Habitats
- Water Management
- Environmental Management System (ISO14001)
- Environmental Data
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.*1, 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.
1SmartestEnergy 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.
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.
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.
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.
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 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.
Adaptation to Climate Change in Feed Material Procurement
Climate change has significant impact on the procurement of raw materials for the feed mixtures for livestock and fisheries, and Marubeni acknowledges that adaptation to climate change is a priority issue in our risk management.
If the ways of agriculture and fishery change along with climate change, it may also reduce the production of the farm and marine products that are the protein sources of formula feed, or affect the formula ratio, quality, and other aspects.
Marubeni monitors climate patterns, temperature, and other factors by product and region to mitigate climate change risks, while also considering the potential influences of climate change as part of our management strategy.
Additionally, as part of our countermeasures for climate change risks, we are actively working on research and innovations in developing substitutes for animal protein material derived from fish and livestock.
Utilization of Life-Cycle Assessment
Marubeni utilizes life-cycle assessment (LCA) in the beef cattle rearing project at its consolidated subsidiary in Australia, Rangers Valley Cattle Station PTY. LTD. (hereinafter “Rangers Valley”), and quantitatively analyzes and assesses the social and environmental impact of our business. Rangers Valley promotes effective operation through research such as optimal feed and methods for feeding and fattening. By utilizing the analysis results of LCA in our business, we are working on reducing the social and environmental impact of this project.
Initiatives for Renewable Energy Power Projects
In order to work toward a low-carbon society that mitigates the effects of climate change as part of sustainable development goals, Marubeni is actively pursuing and expanding renewable energy power projects.*2
2Renewable energy power generation currently accounts for approximately 10% of our net generation capacity. We will increase this to approximately 20% by 2023.
Initiatives for Micro-Scale Hydro-Power Generation Business
The Marubeni Group considers micro-scale hydro-power generation as an important business area, and has been conducting operations in this area through Group company, Mibugawa Electric Power Company since 2006. As this business utilizes natural energy sources, consideration for the environment is essential, and we are also actively working on reduction of waste materials, maintenance of water quality, conservation of energy and resources, and other environmental activities.
“Micro-scale hydro-power generation” is a term used to refer to small-scale hydropower generation operations with output of less than 1,000 kW. These operations do not require the use of dams or other facilities that entail large-scale construction projects, but rather generate power by utilizing streams or agricultural irrigation canals, thus minimizing the development footprint. The environmental impact on water quality and the water habitat is exceptionally low, and there is no impact on land features or scenic beauty. Once up and running, these operations emit almost no CO2, thereby offering benefits in terms of minimal impact on biodiversity and environmental conservation. Moreover, micro-scale hydro-power generation can help regions develop more independently as these technologies enable them to generate their own power using their own water resources.
In addition to the Mibugawa Power Station, the Marubeni Group currently operates the following micro-hydro power generation facilities.
Micro-Scale Hydro-Power Generation Facilities (as of March 2020)
|Mibugawa Power Station No. 1||Ina City, Nagano Prefecture||23,100kW|
|Mibugawa Power Station No. 2||10,800kW|
|Mibugawa Power Station No. 3||260kW|
|Mibugawa Power Station No. 4||480kW|
|Tateshina Power Station||Chino City, Nagano Prefecture||260kW|
|Tateshina Power Station No. 2||141kW|
|Tateshina Power Station No. 3||93kW|
|Tateshina Power Station No. 4||145kW|
|Shinmiyagawa Power Station||Komagane City, Nagano Prefecture||195kW|
|Hokuto Nishizawa Power Station||Hokuto City, Yamanashi Prefecture||220kW|
|Hokuto City Murayamarokkamuraseki Hydropower Station||320KW|
|Hokuto Kagoishi Power Station||230kW|
|Hokuto Kurabara Power Station||200kW|
|Honmonji Power Station No.1||Fujinomiya City, Shizuoka Prefecture||120kW|
|Honmonji Power Station No.2||140kW|
|Shiroishi Power Station||Shiroishi City, Miyagi Prefecture||95kW|
|Hananosato Power Station||Shimogo, Fukushima Prefecture||175kW|
|Banyagawa Power Station||150kW|
|Himenuma Power Station||Inawashiro, Fukushima Prefecture||160kW|
|Minochigawa Power Station||Hiroshima City, Hiroshima Prefecture||180kW|
|Sagotani Power Station||108kW|
|Toyohira Power Station||Kitahiroshima, Hiroshima Prefecture||112kW|
Mibugawa Power Station has obtained Eco Action 21*3 certification, the first hydro-power facility to do so. Given that the intake of Power Station No. 2, which is located at the highest elevation, is next to a quasi-national park, and the facilities of the Mibugawa Power Station are in a region with high biodiversity value, we strive not only to avoid destruction of nature, but also to preserve it. As part of that effort, in addition to conducting river cleanup activities and facility maintenance and emergency response training to be prepared for possible oil spills, Mibugawa Power Station takes measures for protection of biodiversity by conducting water quality inspections twice a year, not only to determine whether pollutants are present, but also to check whether the water has the oxygen content required by living organisms. The facility also welcomes local elementary and middle school students and over 100 residents each year for tours of the power station, and presents exhibits of hybrid power generation systems (wind, solar and hydro-power). These and other activities help educate people about renewable energy and pass on the region’s traditional culture.
At the Hokuto City Murayamarokkamuraseki Waterfarm*4, we use existing irrigation canals to supply renewable energy while making appropriate adjustments to the volume of water used to ensure adequate supplies of irrigation water for farmland and water for household use.
At the micro-scale hydro-power station in Shiroishi City, Miyagi Prefecture, the elevation difference in water pipes of water supply facilities is used to generate electricity with minimal impact on the surrounding environment.
In addition, in selling power through Marubeni Power Retail Corporation, we are helping to improve biodiversity by allocating a portion of the electricity fees to forest maintenance and management.
The Marubeni Group aims to develop about 40 micro-scale hydro-power generation facilities in Japan by 2025. Across Japan, we are actively working on generation of renewable energy that contributes to conservation of the local environment and biodiversity.
- A system based on guidelines for environmental management systems and environmental reporting set by the Ministry of the Environment
- The four micro-scale hydro-power stations at Murayamarokkamuraseki in Hokuto City (Hokuto Nishizawa Power Station, Hokuto Murayamarokkamuraseki Hydro-power Station, Hokuto Kagoishi Power Station and Hokuto Kurabara Power Station)
Initiatives for Solar and Wind Power Generation
Throughout Japan, in addition to the development of micro-scale hydro-power generation projects, the Marubeni Group is actively working on generation of renewable energy that contributes to conservation of the global environment and biodiversity.
Main Renewable Energy Projects in Japan (as of March 2020)
|Facility||Location||Power Output (Marubeni’s share)||Type of Power Plant|
|Misaki Wind Power||Ikata Town, Ehime Prefecture||20MW (49%)||Onshore wind power|
|Tokachi-Shimizu Power Plant||Shimizu Town, Hokkaido Prefecture||4MW||Solar power|
|Tomakomai Mega-solar||Tomakomai City, Hokkaido Prefecture||7MW|
|Iwanuma-Rinku Mega-solar||Iwanuma City, Miyagi Prefecture||28MW|
|Sekikawa Village Mega-solar||Sekikawa Village, Niigata Prefecture||2MW (50%)|
|Iwaki Mega-solar||Iwaki City, Fukushima Prefecture||2MW (50%)|
|Tsuetsukitoge Mega-solar||Ina City, Nagano Prefecture||10MW|
|Inahiji Mega-solar||Ina City, Nagano Prefecture||1MW|
|Itako Solar Power Station||Itako City, Ibaraki Prefecture||2MW (50%)|
|Oyama Solar Power Station||Oyama Town, Shizuoka Prefecture||2MW (50%)|
|Kisosaki Mega-solar||Kisozaki Town, Kuwana City, Mie Prefecture, and Yatomi City, Aichi Prefecture||49MW|
Initiatives for the Sequestration, Capture, and Storage of Carbon Dioxide
Marubeni is an investor in Japan CCS Co., Ltd., which was established in May 2008, in response to the Japanese government’s call for the development of CCS*5 technologies as a countermeasure to global warming. It was founded by major private-sector firms with expertise in CCS-related fields joining forces to meet the new demands. As a private-sector corporation that brings together and integrates CCS technologies, the company conducts surveys on how to commercialize technologies for the separation, capture, transport, and geological storage of CO2, as well as R&D and testing in these fields.
5CCS is an acronym for Carbon Capture and Storage and refers to the capture and storage of carbon dioxide (CO2). Specifically, it involves technologies for capturing CO2 emitted by factories, power plants and the like before it is released into the atmosphere, transporting it to underground geological strata suited to storing it, and storing it in a stable manner over long periods of time.
Large-Scale CCS Demonstration Project
Marubeni is working on a project to verify the establishment of an international supply chain to liquify hydrogen produced with unused lignite (i.e. “brown coal”) from Victoria, Australia, and transport it to Japan. For the future commercialization of liquified hydrogen made with this technology, it will be necessary to use CCS technologies to capture, and store the CO2 generated in the hydrogen production process. In part because of this, Marubeni regularly visits the Tomakomai CCS Demonstration Project Center, which is a facility in the city of Tomakomai, Hokkaido, operated by Japan CCS Co., Ltd., to observe the work done there. The demonstration project has been running for nine years, from FY2012 to FY2020, and is slated to store a cumulative total of 300,000 tons of carbon dioxide underground.
Initiatives for Reducing Environmental Impact (Koa Kogyo)
As a resource conservation measure, Marubeni’s consolidated subsidiary Koa Kogyo Co., Ltd. is working to reduce the amount of water resources it uses in the production process.
Since large quantities of water are needed in papermaking operations, Koa Kogyo secures the necessary water from both industrial and well water sources and recycles water in the manufacturing process. In waste water, strict water quality standards are met by using activated sludge tanks to reduce chemical oxygen demand (COD) and biochemical oxygen demand (BOD) and by purifying water.
Koa Kogyo is also working to reduce waste volume. By pulping waste paper using a high-consistency pulper, Koa Kogyo can recycle paper that was previously incinerated because it could not be processed. Furthermore, all combustible garbage is disposed of utilizing high-temperature incinerators, and the thermal energy is recovered and used for thermal recycling. Because it processes waste at high temperatures of 900–1,000°C, this incinerator emits virtually no toxic dioxins and meets environmental standards for NOx, SOx and CO2 emissions.
In addition, Koa Kogyo collects waste paper and office waste to be recycled and reused as paperboard. By doing so, the company has established a closed recycling system with customers and is reducing the burden on the environment.
Initiatives for Environmentally Friendly Pulp Manufacturing
To reduce its impact on the environment, the pulp mill of our subsidiary in Indonesia employs elemental chlorine-free (ECF) bleaching pulp manufacturing process.
Use of Green Power
Marubeni and the Palace Hotel used green power at the venue of Marubeni's 96th Ordinary General Meeting of Shareholders at the Palace Hotel Tokyo on June 19, 2020. By purchasing certified green power (1,500kWh) issued by Mibugawa Power Company, a green power operator and 100% Marubeni-owned subsidiary, the Palace Hotel used green power at the venue of the Ordinary General Meeting of Shareholders.
This is the 11th time that Marubeni has used green energy at its Ordinary General Meeting of Shareholders.
Green power refers to electricity that is generated by natural energy such as hydropower, wind power, biomass, solar power, and geothermal power. Unlike power generated by fossil fuels such as oil and coal, green power has environmental value because it has low levels of CO2 emissions and a small impact on the environment.
Marubeni will continue promoting its environmental efforts in various forms going forward.