SocialSupply Chain Sustainability Survey

Development of sustainability assessment methods

The Marubeni Group is developing methods for assessing the potential risks from a business sustainability perspective as part of managing the risks involved in building supply chains that are sustainable, resilient and respect human rights. Incorporating the advice of an external consultant with specialized knowledge in the field, the definition of risk evaluation criteria takes into consideration relevant laws and regulations, international standards, and case studies taken from similar businesses.

Specifically, the approach involves evaluating the degree of potential risk for each type of risk in the three categories of “Environmental,” “Occupational Health and Safety,” and “Social,” taking into account (1) the sector and type of each business and (2) the country/region where each business has its operations. The degree of risk is judged based on the impact due to specific factors such as scale, range and difficulty of remedy.

Risk assessment items by category
Environment Climate change / Environmental pollution / Biodiversity / Resource management / Mitigation measures and administrative procedures of environment
Occupational Health and Safety Mechanical safety / Fires and explosions / Toxic substance exposure / Infection / Hazardous operations / Mitigation measures and administrative procedures of occupational health and safety
Social Forced labor and human trafficking / Child labor / Working hours / Wages and employment contracts / Discrimination / Harassment at work and disciplinary measures / Respect for Diversity / Freedom of association/ Land issues / Negative societal impact on effects of local communitiesy impacts / Indigenous people and cultural heritage / Conflict minerals / Privacy / Animal welfare / Responsible marketing / Mitigation measures and administrative procedures (supply chain)

Sustainability surveys for consolidated subsidiaries

The Marubeni Group consolidated subsidiaries around the world are the starting point for the supply chains with which we provide products and services. We recognize that safeguarding the sustainability of these business operations is a first step and a critical element of building sustainable and resilient supply chains.

With this recognition, the Marubeni Group has instituted sustainability surveys for our consolidated subsidiaries in the fiscal year 2019. All of the Group's consolidated subsidiaries, which are approximately 400, are included in the subject of the survey, and of these, approximately 200 subsidiaries, which are considered that they are necessary to have detailed confirmation of the potential risks, are surveyed. For these 200 subsidiaries, we first assessed the potential risk level of each company using the sustainability assessment method. After, taking into account the characteristics of subsidiaries' industries, we selected those consolidated subsidiaries with a certain level of potential risk or higher, as candidates for the on-site survey, while we conducted a written survey of the other consolidated subsidiaries. In fiscal 2019, we visited four of our domestic consolidated subsidiaries together with an external consultant with specialized knowledge to conduct on-site investigations to confirm that the business is operated appropriately in terms of environmental, occupational safety and health, and social aspects. As a result of the document and on-site investigations, we did not identify problems that require immediate action.

Sustainability surveys for consolidated subsidiaries

【On-site inspection at Chiba Terminal of Marubeni Ennex Corporation in February, 2020】

On-site inspection in progress
On-site inspection in progress

Our on-site inspection of the Chiba terminal of Marubeni Ennex Corporation, which operates distribution terminals in Japan for petroleum products, LPG and petrochemicals, was done with an external consultant. The inspection was conducted to ascertain the management status of the business in terms of its environmental, occupational health and safety, and social aspects by interviewing managements and employees in Marubeni Ennex Corporation, and by a tour of the site while in operation. Through the inspection which lasted for three days, we were able to confirm the continuous good efforts of Marubeni Ennex Corporation on environmental management, occupational health and safety management, and disaster preparedness. We have also organized follow-up items and discussed opportunities for improvement.