Global Environment & Climate ChangeEnvironmental Initiatives

Marubeni Group’s Environmental Initiatives

Establishment of Environmental Goals

At the beginning of each fiscal year, Marubeni identifies the issues specific to each group regarding environmental risk management, Marubeni Group company administration, environmental business promotion, energy conservation, resource conservation, and other related matters using the Environmental Plan/Check Sheet. Marubeni then establishes environmental goals for each group and conducts related activities to achieve them.

Assessment of Environmental Performance

Inspection

Each group at Marubeni formulates environmental action plans at the beginning of each fiscal year and self-checks its progress against the plan in September and February using the Environmental Plan/Check Sheet.

Auditing

Internal auditors perform annual environmental audits on Marubeni Corporation and subsidiaries with multi-site certifications scheme.
In addition, our environmental performance is subject to audits twice a year by Lloyd's Register Quality Assurance Ltd. (LRQA), an ISO 14001 certification and registration organization.
In the year ended March 31, 2018, the LRQA assessment found no significant issues in our EMS.

Compliance with Environmental Laws and Regulations

Each department at Marubeni and subsidiaries list applicable environmental laws, regulations, standards, and rules, and perform periodic reviews to ensure compliance with the regulatory requirements.
During the year which ended on March 31, 2018, Marubeni conducted an assessment to determine whether its 102 departments and 106 Marubeni Group companies were in compliance with the Waste Management and Public Cleansing Act.
Marubeni also conducted an e-learning training program on the Waste Management and Public Cleansing Act for all executives and employees, including temporary employees. At the same time, seminars were held on the same topic at the Tokyo Head Office and major domestic branches (Osaka, Nagoya, Hokkaido and Kyushu), where outside experts provided pertinent guidelines and information. 579 Marubeni Group employees in total participated in the training program. Likewise, the corresponding groups conducted more practical and hands-on forms of training.
As a result of these and other initiatives, there were no serious violations of environmental laws or regulations by the Marubeni Group in the year ended on March 31, 2018.

Environmental Management System/Number of Reported Cases/Corrective Actions

We have an established system to report/correct cases related to administrative guidance and non-compliance with laws/ordinances in the operation of the Environment Management System. These cases are shared across the company, and measures are taken to prevent recurrence.

Number of Reported Cases/Corrective Actions
  Fiscal Year Ended March 2018
Number of reported cases 3
Number of corrective actions 3 (of which 3 include fines/penalties)
Total fines JPY 9 million*

*Converted to yen by the median rate for end of March, 2018

Environmental Education and Training

Marubeni provides environmental education to its employees to help raise their awareness of relevant issues. In the year ended March 31, 2018, the CSR/Global Environment e-learning Training Program was conducted for all executives and employees, including temporary employees. Approximately 3,000 executives and employees participated in the training program. Marubeni organizes a variety of programs, including environmental training designed for new employees. Other specific programs include: the Environmental Officers e-learning Training Program and the ISO 14001 Internal Environmental Auditors Training Program. In addition, personnel who perform a leading role in the implementation and operation of the EMS must receive ISO Environmental Auditors Training, which is conducted by external training organizations.

Environmental Training Programs and Seminars in the Year Ended March 31, 2018
Training Program/Seminar Number of Participants
ISO 14001 Internal Environmental Auditors Training Program (Tokyo, Osaka) 75
Seminar on the Waste Management and Public Cleansing Act (Tokyo, Osaka, Nagoya, Hokkaido, Kyushu) 579
CSR/Global Environment Training Program (e-learning) 2,729
Training on the Waste Management and Public Cleansing Act* (e-learning) 3,089
Group-Specific Training on the Waste Management and Public Cleansing Act 175

Environmental Assessment of Development Projects and Financing/Investment

Before launching a development project or financing or investing in a new business, Marubeni assesses the project's conformity with environmental laws and the levels of possible adverse impact on the environment in the event of an accident or some other emergency using the “Environmental Evaluation Sheet.” The complete evaluation sheet is used as part of making the final decision on whether or not the project should be implemented.
Follow-up evaluation is also conducted for projects considered to have potential environmental risks as a result of the initial assessment. Follow-up is continued until all concerns have been dispelled. In the year ended March 31, 2018, we assessed 45 projects with environmental risks, including projects for natural resources and energy development, real estate development and others.
We also conduct assessments such as regular survey visits that take into account the business details, location, and the situation of facilities, not only for our potential new operations or projects, but also for our existing operations and projects. We try to grasp the environmental impact, and share the information for improvement.

To give a specific example, for our existing business of Creekstone Farms Premium Beef LLC, a Marubeni Group company that deals in beef processing and domestic/overseas sales, we conducted an assessment on the operation’s effects on atmospheric/soil pollution and biodiversity etc. using the “Environmental Evaluation Sheet,” and confirmed that there are no environmental risks. As for the water pollution concern with the expected increase in the number of processed cattle, with advice from specialists, we plan to reinforce the water processing facilities and comply with the effluent quality standards, in our effort to reduce the environmental burden. We will also thoroughly manage the amount of sludge generated during the wastewater treatment process, and use waste disposal companies to continue proper processing.

Number of Environmental Evaluations in the Year Ended March 31, 2018 by Risk Type
Atmospheric Pollution Water Pollution Soil Pollution Noise/
Vibration
Offensive Odor Waste Increase Natural Resource Depletion Global Warming Biodiversity Others Total
16 21 14 17 3 7 5 5 2 0 90

(The total is not equal to the aggregate of environmental assessments conducted 45 as some assessments identified no applicable risks, while others detected more than one risk.)

Promoting Environmental Consideration at Marubeni Group Companies

In an effort to reduce the environmental impact of our overall business operations, Marubeni Group companies are encouraged to support and join environmental conservation activities, which are designed in line with the Marubeni Group Environmental Policy. We also monitor their ISO 14001 status, emergency response measures, and environmental management systems.
In addition, Marubeni Group companies are asked to ensure compliance with regulatory requirements and develop contingency plans for emergencies.

Operating Companies' Environmental Performance Review

Aiming to reduce the environmental impact of its operations across the Group, the Marubeni Group conducts a survey-based annual review of Marubeni Group companies' environmental performance.
This detailed assessment includes identification and status confirmation of elements within our operations that impact the environment, applicable environmental laws and regulations, emergency response measures, and environmental problems.

Site Inspection at Marubeni Group Companies Yet to Acquire ISO 14001 Certification

Marubeni identifies and conducts on-site inspections of subsidiaries engaged in activities that have a relatively high risk of exerting a significant environmental impact. For these on-site inspections, Marubeni personnel visit the plants and offices of the target companies together with auditors from Lloyd's Register Quality Assurance Ltd., to inspect the sites, check systems designed to ensure compliance with environmental requirements, and confirm the companies' environmental risk control status. During the year which ended on March 31, 2018, 25 sites in 21 domestic and overseas companies were inspected. The on-site inspections identified no significant issues at any of the companies. Going forward, Marubeni will continue working to enhance its environmental management system across the Marubeni Group.

Energy Conservation, Natural Resource Conservation, and Waste Reduction Activities

Marubeni has set numerical targets for its energy conservation, natural resource conservation, and waste reduction efforts. The targets and results for the year ended on March 31, 2018 are shown below.

Targets to Achieve by the Year Ending March 31, 2021
  Numerical Targets
in the Year Ending March 31, 2021
Results in the Year Ended March 31, 2018
(1)Energy Consumption at Tokyo Head Office and Osaka Branch Reduce energy usage (electricity and gas) by 10.5% compared to the year ended March 31, 2010 72.5% decrease from the year ended March 31, 2010
(2)Waste Generation at Tokyo Head Office Reduce waste generation by 30% compared to the year ended March 31, 2011 98.5% decrease from the year ended March 31, 2011
(3)Waste Recycling Rate at Tokyo Head Office Achieve a waste recycling rate of 90% or more 22.1%
(4)Water Consumption at Tokyo Head Office Reduce water consumption by 3% compared to the year ended March 31, 2011 95.4% decrease from the year ended March 31, 2011

*After setting target values, Marubeni Corporation, Osaka Branch moved in July, 2015, and the Tokyo Head Office moved to a temporary location in September, 2016 (due to the reconstruction of the permanent headquarters). At the Tokyo Head Office (for the period beginning March, 2018 until reconstruction is completed in 2020), goals commensurate with management methods at its temporary location have been set for waste generation, recycling rate and energy consumption, and efforts are being made to reduce energy usage, recycle more, and waste less.

Environmental Protection at the Tokyo Head Office and Tama Center

Marubeni is taking steps to address the Carbon Reduction Reporting Program based on the Tokyo Metropolitan Ordinance on Environmental Preservation.

Tokyo Head Office
Marubeni submits plans to the Tokyo Metropolitan Government describing its measures to reduce the CO2 emissions volume of the Tokyo Head Office by approximately 17% from the reference value (average emissions from April 2002 to March 2005) during the five years from April 2015 to March 2020.
The emissions volume in the year ended March 31, 2016 was 4,422 t-CO2, a decrease of approximately 36% compared to the reference value.

Tokyo Head Office: Past Submissions of Carbon Reduction Reports
Covering FYE 3/2011-FYE 3/2015 Submitted in November 2011
Covering FYE 3/2011-FYE 3/2015 Submitted in November 2012
Covering FYE 3/2011-FYE 3/2015 Submitted in November 2013
Covering FYE 3/2011-FYE 3/2015 Submitted in November 2014
Covering FYE 3/2011-FYE 3/2015 Submitted in November 2015

The Tokyo Head Office was relocated in September 2016, and notification of the closure of a specified global warming countermeasure site was submitted to the Tokyo Metropolitan Government in October 2016.

Tokyo Head Office: Past Submissions of Carbon Reduction Reports of Specified Tenants, etc.
Covering FYE 3/2016-FYE 3/2020 Submitted in October 2017
Covering FYE 3/2016-FYE 3/2020 Submitted in October 2018

Tama Center
Marubeni submits plans to the Tokyo Metropolitan Government describing its measures to reduce the CO2 emissions volume of the Tama Center, a training center managed by the Tokyo Head Office, by approximately 15% from the reference value (average emissions from April 2005 to March 2008) during the five years from April 2015 to March 2020.
The emissions volume in in the year ended March 31, 2016 was 6,818 t-CO2, a decrease of approximately 47% compared to the reference value.

Tama Center: Past Submissions of Carbon Reduction Reports
Covering FYE 3/2011-FYE 3/2015 Submitted in November 2011
Covering FYE 3/2011-FYE 3/2015 Submitted in November 2012
Covering FYE 3/2011-FYE 3/2015 Submitted in November 2013
Covering FYE 3/2011-FYE 3/2015 Submitted in November 2014
Covering FYE 3/2011-FYE 3/2015 Submitted in November 2015
Covering FYE 3/2011-FYE 3/2020 Submitted in November 2016
Covering FYE 3/2011-FYE 3/2020 Submitted in November 2017
Covering FYE 3/2011-FYE 3/2020 Submitted in November 2018

Specially Controlled Industrial Waste Output

As a single entity, Marubeni Corporation monitors our output of specially controlled industrial waste defined in the Waste Management and Public Cleansing Act. This includes PCB waste etc., such as PCB contaminant and processed PCB, which we dispose in sequence within the legal disposal period.

Specially Controlled Industrial Waste Output (unit: tons)
Fiscal Year Ended March 2018 0
Fiscal Year Ended March 2017 8.6
Fiscal Year Ended March 2016 0

Our domestic subsidiaries each monitor and report the appropriate amount according to the Waste Management and Public Cleansing Act.

Environmental Protection Costs

Environmental protection costs for Marubeni’s six principal offices (Tokyo Head Office and Hokkaido, Chubu, Osaka, Kyushu and Shizuoka branches) for FYE 3/2018 are shown below.

Environmental Accounting for FYE 3/2018* (thousands of yen)
Business area cost 9,500
Upstream/Downstream cost 14,413
Administration cost 195,941
R&D cost 0
Social activity cost 14,558
Environmental remediation cost 0
Total 234,411

* Aggregate data based on the Ministry of the Environment’s Environmental Accounting Guidelines 2005