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Environment

Climate Change

Policies and Basic Approach


How we respond to climate change and increasingly frequent and severe natural disasters – whether through initiatives such as the Sustainable Development Goals (SDGs), the ratification of the Paris Agreement at the United Nations, or other initiatives – is one of the most pressing issues of our time. Businesses must also play their part, and it is becoming increasingly important for companies to act responsibly in supporting the creation of a sustainable society.

Mitsui has identified "secure sustainable supply of essential products", "enhance quality of life", and "create an eco-friendly society" as Materialities, and our Environmental Policy stipulates that we will pursue the kinds of business that will help us act to reduce greenhouse gas (GHG) emissions, as well as mitigate and adapt to climate change. We have positioned climate change as one of the key themes of our sustainability management in our Medium-term Management Plan 2023 and have set targets that aim to contribute to the goals of the Paris Agreement and Japan's own medium-term GHG emission reduction targets. Moreover, through our global and wide-ranging business activities, we will contribute to the development of economies and societies in many countries across the world and to solutions to the global challenges we face, such as mitigating and adapting to climate change.

Mitsui presented its climate change initiatives and "Roadmap to Net-Zero Emissions" at the Mitsui & Co. ESG Day held on December 3, 2021. Please refer to the link below for more information.


Roadmap to Net-Zero Emissions (PDF 2.65MB)

Disclosure Based on TCFD Recommendations

Disclosure Policy


In December 2018, Mitsui declared its support for the Task Force on Climate-related Financial Disclosures (TCFD). In accordance with the recommendations of the TCFD and as a responsible company operating globally, we actively promote information disclosure with an awareness of stakeholder demands.


Disclosure Based on TCFD Recommendations (PDF 815KB)

Governance


Governance System for Climate Change Response

We have positioned addressing climate change as a key management issue. Basic management policy, business activities, and corporate policies and strategies that concern climate change are planned developed, and advised on by the Sustainability Committee, an organization under the Corporate Management Committee.

The Sustainability Committee is structured so that its activities are appropriately supervised by the Board of Directors, and matters discussed by the Sustainability Committee are regularly discussed and reported to the Corporate Management Committee and the Board of Directors.

Sustainability Committee

Officer in Charge Makoto Sato (Representative Director, Executive Managing Officer, Chief Strategy Officer (CSO), Chairperson of the Sustainability Committee)
Administrative Office Corporate Sustainability Div., Corporate Planning & Strategy Div.

Governance System for Climate Change Response

Climate Change-Related Discussions

There were 13 major climate change-related discussions by the Sustainability Committee over the past three years.

Major Climate Change-Related Discussions by the Sustainability Committee over the Past Three Years (FY Mar/2020)

  • Discussion on climate change scenario analyses
  • Discussion on key priorities established in relation to sustainability
  • Discussion on the introduction of internal carbon pricing system
  • Discussion on establishment of GHG-related targets

Major Climate Change-Related Discussions by the Sustainability Committee over the Past Three Years (FY Mar/2021)

  • Discussion on establishment of GHG-related targets
  • Discussion on climate change scenario analyses
  • Report on investigations into GHG emissions
  • Progress reports and discussions on the progress of initiatives such as the internal carbon pricing system and building of a GHG emissions database

Major Climate Change-Related Discussions by the Sustainability Committee over the Past Three Years (FY Mar/2022)

  • Free discussion and report on roadmap for achieving long-term GHG targets
  • Report on development of GHG reduction contribution calculation tools
  • Free discussion on introduction of ESG assessment in executive remuneration
  • Report on climate change/review of internal systems and policies, and deliberations on future response policy

Sustainability Advisory Board

We have established the Sustainability Advisory Board (formerly the Environmental and Societal Advisory Committee), a group comprising external experts in societal and environmental topics such as climate change. The Sustainability Committee uses information and advice from Sustainability Advisory Board members in their deliberations. In fiscal year ended March 2022, the Committee held a total of four meetings to discuss climate change initiatives.

Please refer to the links below for more information on Mitsui's Sustainability Management Framework and the activities of the Sustainability Committee.


Reflecting Climate Change Responses in the Executive Remuneration Plan

The company decided to introduce a new performance-linked restricted stock remuneration plan from the fiscal year ended March 2023, which was approved at the Ordinary General Meeting of Shareholders on June 22, 2022. The renumeration plan has been introduced to incentivize the company to fulfill our social responsibilities and to continuously improve our medium-to long-term performance and corporate value. As one of the management evaluation indicators, ESG elements, including our response to climate change are included. For more information, please see "4. Corporate Information, 4. Corporate Governance, (4) Remuneration of Directors and Audit & Supervisory Board Members" in the Annual Securities Report for the fiscal year ended March 31, 2022.


Annual Securities Report for the fiscal year ended March 31, 2022

Strategy


Scenario Analysis Policy and Process

Since declaring our support the TCFD recommendations in December 2018, we have been engaged in a step-by-step scenario analysis process to enhance the resilience of our strategy by responding flexibly to changes in the global business environment. Traditionally, business units have analyzed risks, countermeasures, quantitative impact, etc. for their selected businesses and discussed them at the Sustainability Committee, however in response to its growing importance, we have integrated scenario analysis into the formulation process for the business plan starting the fiscal year ending March 31, 2023. By incorporating scenario analysis into the business planning process, which is approved by the Board of Directors after reporting and deliberation by the Corporate Management Committee, the results of scenario analysis are confirmed and deliberated by management and reflected in the business plan and business portfolio strategy.

Selected Scenarios

We are conducting scenario analysis in short- (0-1 year), medium- (1-10 years), and long-term (10-30 years) timeframes up to the year 2050. We conduct scenario analysis of transition risks*1 and opportunities with reference to the scenarios set out in the World Energy Outlook (WEO) published by the (International Energy Agency) IEA. In addition, with reference to the RCP (Representative Concentration Pathway) used by the IPCC (Intergovernmental Panel on Climate Change), Mitsui has conducted analysis of investment assets above a certain value by surveying the impact of physical risks*2 based on natural disasters that have occurred over the last five years.

*1. "Transition risks" refer to risks caused by changes in policy/legal regulations, technology development, market trends, market evaluation, etc.
*2. "Physical risks" refer to the risk of physical damage caused by increases in natural disasters and abnormal weather arising from climate change.

  • IEA Stated Policies Scenario (STEPS): Scenario that reflect the current policy targets of each country
  • IEA Sustainable Development Scenario (SDS): Scenarios needed to uphold the Paris Agreement, which seeks to keep global warming within 2.0°C (and further pursue efforts to limit the temperature increase to 1.5°C) of the pre-Industrial Revolution level
  • IPCC RCP 8.5 scenario: Scenario in which the world's average temperature rises by around 4.0°C by 2100

We are considering expanding our analysis and disclosure to the 1.5°C scenario, in addition to the 2.0°C scenario outlined above.

Major Risks and Opportunities Associated with Climate Change

Mitsui is engaged in a wide range of business in countries and regions around the world, and we view the diverse risks and opportunities presented by climate change as important factors that we must consider when formulating our business strategies. We are identifying the short-, mid-, and long-term risks and opportunities that accompany climate change, and we review them periodically. We also review each segment in response to changes in the macroenvironment and trends, and adjustments in our business portfolio, along with other changes in the internal and external environment, and reflect them in our business strategy in a timely manner.

Transition Risks Policy and Legal Risks
  • Shift to the use of low-carbon-emission or decarbonized energy due to various national and regional policies (changes in energy and power mix)
  • Government-imposed restrictions on greenhouse gas emissions, with carbon taxes and cap-and-trade emissions-credit schemes
Technology Risks
  • Changes in supply and demand in markets for existing commodities and services or the obsolescence of existing production equipment and facilities accompanying the introduction of new technologies geared toward climate change or the development and dissemination of alternative products
Market Risks
  • Changes in demand for fossil fuel-related products and services and deterioration in value of Mitsui's ownership interests
  • Fund procurement risks due to the adoption of low-carbon/decarbonization policies by financial institutions and insurance companies
Physical Risks Acute Risks
  • Interruption of the operations of project companies in Australia and the United States, etc., due to cyclones and hurricanes
Chronic Risks
  • Impact of global warming on agricultural and marine products or impediments to operations accompanying rising sea levels

Further, for each of our segments we have analyzed the internal and external environment and identified risks and opportunities.

Segment Risks Opportunities
Mineral & Metal Resources
  • Decrease in demand for raw materials (iron ore, metallurgical coal) due to increase in Electrical Arc Furnace usage in anticipation of efforts to reduce GHG
  • Increase in the cost of environmental measures and carbon taxes
  • Increase in the difficulty for obtaining environmental permits
  • Expansion of recycling businesses in response to circular economy
  • Increase in demand for raw materials for secondary batteries, copper, and aluminum accompanying the spread of vehicle electrification
Energy
  • Decrease in demand for fossil fuel
  • Increase in the cost of environmental measures
  • Expansion of market for LNG and gas businesses that have a relatively low environmental impact
  • Expansion of CCS/CCUS* business
  • Expansion of market for biofuel, hydrogen/ammonia fuel, and other next-generation energy
  • Expansion of business for Energy Solutions Business, including emissions credits and energy management businesses
Machinery & Infrastructure
  • Change in the social conditions surrounding coal-fired thermal power businesses
  • Change in the supply and demand of existing businesses accompanying the creation of new technologies and new markets
  • Impact of extreme weather on cargo transportation volumes
  • Development of renewable energy generation businesses
  • Increase in demand for storage batteries that help address increased volatility in power grids
  • Circular economy and sharing
  • Expansion of business related to the shipping business using next-generation fuels
Chemicals
  • Change in demand for fossil fuel-derived chemicals
  • Change in industrial structures due to strengthening of environmental restrictions
  • Expansion of recycling business in anticipation of a recycling-based society
  • Increase in demand for biochemicals and energy-saving materials
  • Increase in demand for forests as a source of absorption and emission credit businesses
Iron & Steel Products
  • Decrease in demand for materials and drilling equipment for the energy sector
  • Reform of steel production, processing and supply chains responding to low-carbon/decarbonized society
  • Increase in demand for maintenance businesses to contribute to extending life of infrastructure
  • Increase in demand for lighter vehicles and highly efficient motors accompanying spread of electric vehicles
Lifestyle
  • Change in food-producing regions accompanying global warming, etc.
  • Impact on supply chains of extreme weather
  • Rising need for securing food resources and securing stable food supplies
Innovation & Corporate Development
  • Increase in insurance claims accompanying a rise in physical risks
  • Increase in demand for insurance accompanying a rise in physical risks
  • Increase in business opportunities in relation to environmental derivatives

* CCS = Carbon Capture and Storage; CCUS = Carbon Capture, Utilization and Storage

Transition Risk Assessments

We use multiple climate change scenarios for the selected business to assess the impact of transition risks on financial planning and business strategies, and use the results to investigate necessary countermeasures.

Selection of Business for Scenario Analyses

In consideration of scale of business operations and climate change impact, upon categorizing business as "high", "medium" or "low" priority, we have selected "high" priority business as targets for scenario analyses.

Selection of Business for Scenario Analyses

Results of Scenario Analysis

The results of scenario analysis for the ten businesses selected for this study are shown below. The scenarios referred to in the scenario analysis are organized into Current Policy and Transition Scenarios as follows.

  • Current Policy Scenario: A scenario in which current climate related initiatives of each country are maintained, demand (mainly in emerging countries) for fossil fuels and other resources that emit GHGs remains to a certain extent, and business practices which could impact climate change continue, resulting in higher risk of severe disasters and the need to respond to such risk (STEPS, etc.).
  • Transition Scenario: A scenario in which there is a slowdown in demand for fossil fuels and other resources that emit GHGs, and growth in demand for corporate activities that contribute to building a sustainable society, such as an increase in demand for renewable energy and other resources, as a result of the international development of advanced initiatives and systems to address climate change. The risk of severe disasters remains to a certain extent (SDS, etc.).

The impact of the Current Policy Scenario and the Transition Scenario on the business between now and 2050 is shown in the following three levels.

  • Positive : Positive impact on business
  • No change : No change or slight impact on business
  • Negative: Negative impact on business
Upstream Oil and Gas Business and LNG Business

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Awareness of Business Environment Under Each Scenario Impact on Businesses Countermeasures
Current Policy Scenario:
Growth in oil demand is expected to gradually slow, with demand peaking in the mid-2030s and then leveling off toward 2050. Demand for natural gas is expected to grow steadily for the power and industrial sectors in emerging Asian countries, centered on China and India.

Transition Scenario:
Oil demand is expected to decline by half through to 2050 amid progress towards a low-carbon society, mainly through electrification of the transportation sector in developed countries, and natural gas demand is expected to remain firm in the medium term for the next 5 to 10 years as a substitute for coal-fired power generation. By 2050, however, demand is expected to decline to about two-thirds, centered on the power generation sector, due to the spread of renewable energies. Meanwhile, new demand for hydrogen feedstock and other applications is expected to grow over the long term.

Current Policy
Scenario

Positive

Transition
Scenario

No change
We will continue to work on improving asset value, including strengthening the competitiveness of existing business assets, reducing GHG emissions, and low carbon/decarbonization initiatives. For new projects, we will carefully select highly competitive projects, taking into account potential future carbon costs, and build a well-balanced portfolio of business assets, including implementing timely asset recycling. While contributing to the low-carbon and decarbonization of the entire value chain, we will continue to work on upstream development of natural gas, which is a transition energy and can be used as a feedstock for next-generation fuels, and to increase our liquefaction capacity. We aim to realize the earliest commercialization of our CCS/CCUS business utilizing our upstream business know how, our geothermal business, and our hydrogen and ammonia business leveraging our gas upstream assets and our existing customer network.
While faced with the dual challenge of needing to expand quantity and improve quality, renewable energy will steadily expand, and fossil fuels will remain indispensable as a primary energy source for the time being. With oil demand peaking and expected to remain flat or decline in both scenarios, there is a risk that the value of upstream assets will decline. Natural gas is an important transition energy source with relatively low environmental impact and a realistic solution to meet growing demand while addressing climate change challenges, and demand is expected to remain strong in the near term under the Transition Scenario. New business opportunities are expected for geothermal power generation, low carbon/decarbonization initiatives such as CCS/CCUS and CO2-EOR* technologies, and next-generation fuel initiatives such as biofuels, hydrogen, and ammonia.
*CO2-EOR: Enhanced Oil Recovery using CO
Metallurgical Coal Business

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Awareness of Business Environment Under Each Scenario Impact on Businesses Countermeasures
Current Policy Scenario:
In developed countries, demand is expected to gradually decline from the 2030s against a backdrop of declining crude steel production and lower blast furnace ratios due to utilization of ferrous scrap, while demand in India and Southeast Asia is expected to grow from the late 2020s onward due to addition of blast furnaces in the region. Global demand for metallurgical coal is expected to increase moderately from current levels through to 2050.

Transition Scenario:
Demand for metallurgical coal is expected to remain flat over the medium to long term and remain at current levels in 2050, due to further acceleration in the use of ferrous scrap and alternative raw materials in developed countries, as also expected in the Current Policy Scenario.

Current Policy
Scenario

No change

Transition
Scenario

Negative
As demand for metallurgical coal is expected to remain strong over the medium to long term, we will strive to strengthen the competitiveness of our assets while maintaining stable supplies to customers. We will closely monitor changes in the external environment, and strengthen our efforts such as utilizing the methane gas produced and shifting to alternative fuels and raw materials, with a view to realize a low-carbon/decarbonized society together with our business partners.
Under both the current policy and transition scenarios, demand for metallurgical coal is expected to remain flat or increase slightly, and the cost competitiveness of our assets will be maintained, and therefore business profitability is expected to remain strong. Continuous close attention must be paid to the business impact of policies and policy trends of respective countries.
Additionally, we are no longer adding new thermal coal projects to our existing assets.
Thermal Power Generation Business

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Awareness of Business Environment Under Each Scenario Impact on Businesses Countermeasures
Current Policy Scenario:
Fossil fuel-based power generation will gradually decline over the long term. Meanwhile, demand for new power plants is expected to continue in the medium term in some emerging countries where electricity demand will continue to grow and where renewable energy alone is not sufficient to meet supply needs.

Transition Scenario:
Fossil fuel-based power generation is expected to decline at a faster rate in the medium to long term than under the Current Policy Scenario.

Current Policy
Scenario

No change

Transition
Scenario

Negative
Amid the global trend towards low carbon and decarbonization, we will work to transform our portfolio and improve quality in accordance with changes in the environment. Specifically, we intend to reduce our coal-fired thermal power footprint from our power generation capacity over the medium to long term, while increasing the ratio of renewable energy in our power generation portfolio, including hydroelectric power, to over 30% by 2030.
In addition, as a responsible power producer, we will continue to examine ways to improve the efficiency of our existing thermal power assets, including utilizing CCUS, ammonia co-firing, and other low-carbon and decarbonizing technologies.
We will consider new gas-fired power projects, taking into account the need for gas-fired power as a transition energy source and potential future carbon costs, as well as the power supply mix and electricity demand outlook for each region.
The impact of changes in the external environment on our existing business is limited, as most of our power asset portfolio is based on long-term power purchase agreements—in which consideration is paid for the generation capacity rather than for generated volume. However, under the Transition Scenario, the global trend towards low carbon and decarbonization will rapidly accelerate, which may affect the business viability of some assets after power purchase agreements expire, and therefore ongoing verification and monitoring is required.
Iron Ore Business

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Awareness of Business Environment Under Each Scenario Impact on Businesses Countermeasures
Current Policy Scenario:
Although crude steel production in China, the world's largest producer, is expected to decline going forward, this is expected to be offset by increased production in India and Southeast Asia. We predict that global crude steel production will remain steady over the medium to long term.

Transition Scenario:
With higher rates of use of electric furnaces, and an increase in production of direct-reduced iron, which mainly uses high-grade ore, we expect an increase in demand for high-grade ore, and a corresponding increase in premiums/discounts for high-grade iron ore/low-grade iron ore.

Current Policy
Scenario

No change

Transition
Scenario

No change
For the foreseeable future, we will work to strengthen the competitiveness of our assets while providing stable iron ore supplies to customers, and continue to closely monitor the rate at which electric furnace production methods spread as a means of low-carbon and decarbonization in the steel industry, and the speed of change regarding new steelmaking technologies. In addition, we will strengthen efforts towards realizing a low-carbon society together with our business partners, while closely monitoring changes in the external environment.
Although crude steel production is expected to be affected by a peak-out in China in the mid-2020s, India and Southeast Asia are expected to offset the decline in China. Crude steel production and iron ore demand are expected to remain steady over the medium to long term under both the Current Policy and Transition Scenarios. The transition scenario incorporates an increase in premiums and discounts for high-grade and low-grade ore, but the impact on overall earnings will be limited. The business impact of policies and policy trends in each country will need to be continuously examined.
Offshore Oil and Gas Production Facilities Business

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Awareness of Business Environment Under Each Scenario Impact on Businesses Countermeasures
Current Policy Scenario:
Demand will decline over the medium to long term in line with a slowdown in oil demand growth, however the timeline of this will differ by region.

Transition Scenario:
Demand for oil infrastructure will decline earlier than under the Current Policy Scenario due to the promotion of electrification in developed countries.

Current Policy
Scenario

No change

Transition
Scenario

No change
Considering the scenario of declining demand in the medium to long term, we will work to transform our businesses into a field where we can utilize the expertise we have accumulated from our existing business (e.g., floating offshore wind power).
Most of the recent projects related to offshore oil and gas production facilities, such as FPSO facilities and drillships, are based on committed long-term use by customers under long-term contracts. Therefore, the impact of the Current Policy and Transition Scenarios on existing businesses is expected to be limited.
Gas Distribution Business

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Awareness of Business Environment Under Each Scenario Impact on Businesses Countermeasures
Current Policy Scenario:
Demand is expected to increase steadily in line with rising gas demand in emerging countries.

Transition Scenario:
Demand is expected to grow at a slower pace than under the Current Policy Scenario due to the spread of renewable energy.

Current Policy
Scenario

No change

Transition
Scenario

No change
We will continue to work on improving asset value, including GHG emissions reduction and decarbonization. For new projects, we are working in consideration of potential future carbon costs.
Our gas distribution businesses are granted exclusive long term concession rights in each of the concession areas. Therefore, the impact of the Current Policy and Transition Scenarios on existing businesses is expected to be limited.
LNG Shipping Business

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Awareness of Business Environment Under Each Scenario Impact on Businesses Countermeasures
Current Policy Scenario:
Demand for natural gas is expected to grow steadily over the long term for use in the power and industrial sectors in emerging Asian countries, and therefore, demand for operation of ships for natural gas is expected to increase.

Transition Scenario:
Demand for natural gas is expected to continue in the medium to long term as a substitute for coal-fired thermal power generation, and new demand is expected in the long term for hydrogen feedstock and other applications. Therefore, demand for operation of ships is expected to increase.

Current Policy
Scenario

No change

Transition
Scenario

No change
With consideration for medium- and long-term supply and demand and price trends, we will strive to maintain and improve the profitability of individual businesses, as well as working to ensure stable and streamlined operations, and at the same time identify new businesses including the establishment of a hydrogen supply chain and next-generation fuel tankers.
In the LNG shipping business, most of the recent projects have secured earnings based on long-term contracts. Therefore, the impact on the Company's earnings under the Transition Scenario will be limited.
Renewable Energy Business

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Awareness of Business Environment Under Each Scenario Impact on Businesses Countermeasures
Current Policy Scenario:
Demand is expected to increase substantially over the medium to long term in response to global low carbon and decarbonization trends and energy security.

Transition Scenario:
Demand is expected to increase substantially at a faster rate than in the Current Policy Scenario.

Current Policy
Scenario

Positive

Transition
Scenario

Positive
In line with the global trend towards low carbon and decarbonization, we will work to transform and improve the quality of our asset portfolio in response to the changing environment. Specifically, in order to raise the ratio of renewable energy in our power generation portfolio to over 30% by 2030, we will engage in large-scale renewable energy projects including solar power, onshore wind power, and offshore wind power, as well as local production for local consumption type distributed renewable energy projects, to meet local demand.
In addition, in view of the potential for intensified competition among operators, we will aim to capture added value by establishing a renewable energy business cluster, leveraging our comprehensive strengths to engage in peripheral fields including the production and sale of green hydrogen, ammonia, and methanol using renewable energy, clean energy sales, EV infrastructure, and offshore wind power infrastructure.
While the renewable energy industry is expected to experience significant growth in demand, competition is likely to intensify as the number of operators in the segment grows.
Meanwhile, supply-demand balance adjustment needs are expected to expand in some regions in order to cope with grid instability caused by the rapid increase in the rate of renewable energy sources. In addition, the energy solution business utilizing digital technology is also expected to expand.
The Electric Vehicle (EV) market is also expected to grow with the support of government policy in various countries, and demand for clean power is expected to grow.
Next-Generation Energy Business

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Awareness of Business Environment Under Each Scenario Impact on Businesses Countermeasures
Current Policy Scenario:
Demand for biofuels and other next-generation energy is expected to continue to grow strongly over the medium to long term, mainly as a replacement for liquid fossil fuels.

Transition Scenario:
Demand for biofuels is expected to grow rapidly in the medium term, and while the growth rate will slow over the long term, demand for biofuels for aviation and marine transportation is expected to continue to expand. Under this scenario, hydrogen and fuel ammonia are expected to grow rapidly, replacing natural gas in the medium to long term.

Current Policy
Scenario

Positive

Transition
Scenario

Positive
We are working to expand our biofuel business leveraging the technology and expertise of our existing investees. In addition, we are moving forward with initiatives in hydrogen and fuel ammonia, geothermal power generation projects, and other areas, as we view them as realistic solutions for realizing a low-carbon or decarbonized society. While these areas are expected to become next-generation alternative energy sources, further technological innovation is necessary for full-scale expansion. Accordingly, we have formed a specialized in-house team and are accelerating these efforts.
There is a significant expectation that demand for next-generation energy will grow, and promising next-generation energy technologies are in the process of being developed. Along with the development of new government programs, etc. in each country, we expect further accelerated investment in the development of new technologies and lower costs of producing low-carbon and decarbonized energy, stimulating further growth in demand and creating new business opportunities.
Forest Resources Business

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Awareness of Business Environment Under Each Scenario Impact on Businesses Countermeasures
Current Policy Scenario:
Demand for forest resources is expected to grow in line with expansion in paper and housing markets in emerging nations.

Transition Scenario:
Growth in demand is expected for timber, a renewable natural material that absorbs CO2 emissions, and is also a source for generating emission credits.

Current Policy
Scenario

Positive

Transition
Scenario

Positive
We will expand our forest resources business by accumulating assets based on profitability/risk to serve as a foundation for the creation of environmental value and industrial solutions to social issues. We will aim to maximize the value of forest resources not only by expanding paper and housing applications and emission credit creation, but also by developing new needs for timber materials.
Under the Current Policy Scenario, an increase in demand is expected for renewable and natural materials that contribute to climate change response, especially timber. Under the Transition Scenario, demand for emissions trading is expected to increase and the price of emission credits is expected to rise, which we expect to boost profitability.

Physical Risk Assessments

We operate a wide range of businesses in various countries and regions, which may be affected by the manifestation of physical risks if climate change causes an increase in extreme weather events. In order to clarify the impact of physical risks on our business, we conducted analyses that refer to the RCP8.5 scenario and others, and for businesses with investable assets above a certain amount, we conducted research and impact analysis based on climate disasters that have occurred in the past five years. The major physical risks facing assets owned by Mitsui include the potential for localized storms, particularly strong tropical hurricanes and cyclones arising in the Atlantic and South Pacific, which could cause negative impacts on operations in our mineral and metal resources projects. Furthermore, in cases of severe damage to production plants, facilities or infrastructure, such as the roads, railways, and ports used for shipments, there is a risk that production or shipments could be suspended for long periods until these facilities are restored. On top of Mitsui's own investments, in cases where Mitsui suppliers suffer significant damage, there is a possibility of the risk of the overall supply chain failing, including failures to receive supplies of raw materials.

We place the highest priority on protecting human lives in the event of a disaster. In addition, we have established crisis management policies for business continuity that also takes into consideration coexistence with local communities. We have also taken measures to mitigate and adapt to risks, such as securing multiple suppliers, enhancing our facilities, and obtaining insurance coverage as necessary. We will continue to assess the adequacy of our risk management measures on a regular basis.

The major physical risks in our assets are as follows.

Physical Risk Assessments

Risk Management


We identify company-wide material risks across organizational boundaries and implement a wide range of initiatives to hedge and control risks. For this purpose, Mitsui has established an integrated risk management system that centrally manages company-wide risks, through the Portfolio Management Committee under the Corporate Management Committee. Under the integrated risk management system, the Corporate Staff Divisions, which act as the secretariat, manage risks from a company-wide perspective. Material risks we assume include those related to the environment, society and governance, such as risks from climate change, compliance, and infectious disease, disasters, terrorism, etc. We position risks regarding climate change (physical and transition) in particular as second in importance only to business investment and country risks and are taking corresponding measures. For details of our risk management structure, please refer to the following page.


Governance: Risk Management

For Mitsui & Co., which operates in countries and regions around the world, the policies of each country and region related to climate change have a significant impact on the profitability and sustainability of each of our businesses. We use the climate-change scenarios published by the IEA and other organizations when we analyze scenarios involving businesses that have significant impacts. In this way, we are gaining an understanding of business impacts both in terms of risk and opportunity. When considering investment projects, M&A, and other business decisions, we take these scenarios into account.

In conducting business, we have put in place a system to ensure that utmost consideration is given to the environment and society in projects at all stages, including at the launch of a new business, during operations, and even at the time of withdrawal from the business. Our Sustainability Committee discusses response policies and measures regarding environmental and social risks (including climate-change risk), then reports to the Corporate Management Committee and the Board of Directors, which then applies them following approval.

Metrics & Targets


GHG Reduction Targets

  • Scope 1 and 2, and Scope 3 Category 15 (Investments) of the Company and its consolidated subsidiaries (including un-incorporated joint ventures):
    Formulating Mitsui's goal to achieve net-zero emissions as our Vision for 2050, and aiming to reduce GHG impact by 2030 to half of what it was in the fiscal year ended March 2020, as the path to achieve the above goal.
  • Scope 1 and 2 of the Company and its consolidated subsidiaries:
    Halving GHG emissions by 2030 compared to the fiscal year ended March 2020.
  • The ratio of renewable energy in our power generation portfolio:
    Raising the ratio of renewable energy to over 30% by 2030, to achieve our goal of halving our GHG impact by 2030.

GHG Reduction Targets

GHG Reduction Targets

GHG impact refers to the amount of our emissions minus the GHG emission reduction contribution amount we achieved through our business activities. We not only focus on reducing our own emissions, but also on contributing to the transition to a low-carbon/ decarbonized society through our business activities. Going forward, we will accelerate our company-wide initiatives by setting specific goals, including our reduction contribution amount.
Net zero emissions in 2050 means to reduce our emissions to effectively zero by subtracting only the amount of absorption and offset from our emissions. The reduction contribution amount is not included in the 2050 target figures, though we will continue to actively contribute to GHG emissions reductions for society as a whole through our business.

We promote emission reduction (Reduction) and reduction contribution (Opportunity & Transition) in a variety of ways, taking advantage of the cross-industrial business structure that only a sogo shosha can offer.

GHG Reduction Targets

Roadmap to Halving GHG Impact by 2030

We aim to halve our GHG impact from 34 million tons in the FY Mar/2020 to 17 million tons in FY Mar/2030.

For the three-year period from FY Mar/2021 to FY Mar/2023, the GHG impact is expected to be approximately 33 million tons.
Although emissions are expected to increase slightly from FY Mar/2024 to FY Mar/2030 due to the start of operations of thermal power generation projects and other factors, we will aim to achieve our goal of halving of the GHG impact in 2030 through a robust combination of emission reduction and reduction contribution projects.

Roadmap to Halving GHG Impact by 2030

Breakdown of Target Base Year GHG Emissions (FY Mar/2020)

Breakdown of Target Base Year GHG Emissions (FY Mar/2020)

Internal Carbon Pricing System

At Mitsui, we introduced the internal carbon pricing system in April 2020 for the purpose of improving the medium to long-term resilience of businesses emitting large volumes of GHG, and to encourage the development of projects that are effective at reducing our, and society's, GHG emissions. Regarding new business projects, in projects with potential risks or opportunities from GHG regulations, etc., we have added analysis of the potential impact of a 2°C scenario to the project screening factors, as well as the adequacy of countermeasures in the event these risks are realized. We are also using the internal carbon pricing system to assess risks in existing projects. The pricing is based on definitions and prices published by the IEA and other external organizations, taking into account the location and time horizon of the assets, and over the period through 2050 we have applied prices generally in the $10 to $200 range for developed countries and $0 to $160 for the rest of the world.

Environmental ("Green") Business Assessment Working Group

As the transition towards a low-carbon or decarbonized society accelerates, we are working to reduce the GHG emissions from our operations while simultaneously engaging in business that contributes to reducing GHG for society. We aim to realize sustainable growth while helping to solve the challenges faced by society. For these reasons, we decided to establish the Environmental ("Green") Business Assessment Working Group, which launched on April 1, 2021. Its role is to carry out comprehensive evaluations as part of the screening process for new projects with the potential to turn climate change responses, such as the development of renewable energy, into opportunities. The evaluations include qualitative factors, such as the strategic significance of initiatives from ESG perspectives.

Other Environmental Indicators/Targets

Aside from our GHG reduction targets, the following environmental indicators and targets have been established and are being monitored on an ongoing basis.

  • Energy consumption:
    • Reduce energy consumption intensity by 1% or higher on average per year at Mitsui & Co., Ltd. and its domestic consolidated subsidiaries.
  • Water Resources:
    • Reduce water consumption at the Head Office and our buildings year on year and improve water use efficiency.
  • Pollution Prevention:
    • Increase the waste recycling rate at the Head Office and our buildings to over 90% by 2030.
    • Reduce paper consumption at Mitsui & Co., Ltd. by 50% or more compared to the fiscal year ended March 2020 by 2030.

For specific performance data, please refer to the following.


Environmental performance data

Collaborating with Stakeholders


Participation in Initiatives

As a responsible global company, we are advancing and expanding our response to climate change by participating in initiatives that encourage appropriate information disclosure to stakeholders and that make contributions which correspond with the Paris Agreement and the achievement of Japan's medium- to long-term targets for reducing greenhouse gas emissions through initiatives based on international frameworks and wide-ranging partnerships with industry organization in Japan. Our decision to participate in each initiative is made once we have confirmed that it is compatible with our basic policy and initiatives concerning climate change.

TCFD (Task Force on Climate-related Financial Disclosures)

In December 2018, Mitsui declared its support for the TCFD (Task Force on Climate-related Financial Disclosures) recommendations, which aim to facilitate companies to recognize financial impacts arising from the risks and opportunities associated with climate change and to disclose such climate-related information.

TCFD Consortium

The TCFD Consortium was established in 2019 to promote unified action between companies, financial institutions, and other organizations that have declared support for the TCFD and as a forum to further discussion on effective and efficient corporate disclosure of information, as well as the use of disclosed information by financial institutions in making appropriate investment decisions. The Ministry of Economy, Trade and Industry, Financial Services Agency, and Ministry of the Environment participate in the consortium as observers. As a member of the consortium, Mitsui will continue to practice appropriate disclosure in line with TCFD recommendations.

CDP (Climate Change)

Since 2011, we have responded to the questionnaire from the CDP Climate Change, a global disclosure program for corporate information on climate change risks. Based on our response to the questionnaire carried out in 2021, we received the score "B" in relation to Climate Change.

Maersk Mc-Kinney Moller Center for Zero Carbon Shipping

Reducing emissions is a global issue for the shipping industry. In April 2021, Mitsui became a Strategic Partner of the Maersk Mc-Kinney Moller Center for Zero Carbon Shipping (MMMCZCS), a not-for-profit international research and development center dedicated to the decarbonization of the shipping industry.

Japan Business Federation (Keidanren)

Mitsui is a member of various Keidanren committees, including the following:

  • Committee on Responsible Business Conduct & SDGs Promotion, which works to make the Charter of Corporate Behavior well known, disseminate and promote "Society 5.0 for SDGs", and promote corporate social contribution activities
  • Committee on Energy and Resources, which promotes energy policies that provide a balance of S+3E (Safety + Energy Security, Economic Efficiency, and Environment)
  • Committee on Overseas Development Cooperation, which aims to coordinate with national governments and international institutions for the purpose of developing infrastructure overseas, in particular, in emerging countries
  • Committee on Environment and Safety, which works on countermeasures to deal with climate change, formation of a circular society, and improvements in environmental regulations and systems

Japan Foreign Trade Council

As a member of the Global Environment Committee of the Japan Foreign Trade Council Inc., Mitsui is actively involved in activities in the field of climate change. In particular, we monitor energy use for all trading companies and promote reduce/reuse/recycle (3Rs) activities. We also gather information about new energy technology through our business activities, and contribute to the formulation of the Long-term Vision for Climate Change Measures. Mitsui also engages in activities as a member of the Japan Foreign Trade Council's Sustainability Promotion Committee, which studies Sustainability/CSR-related issues and conducts surveys and research about trends in Japan and overseas.

GX League Basic Concept

In February 2022, Mitsui endorsed the GX (Green Transformation) League Basic Concept published by the Ministry of Economy, Trade and Industry.
The GX League calls for companies to actively work on GX and acts as a forum for discussing the transformation of the overall economic and social system and creating new markets accordingly for achieving carbon neutrality in Japan and the world.
We will actively participate, together with other endorsing companies, in discussions of detailed design and empirical demonstration working towards the implementation of GX League.

Initiatives


Initiatives as Part of Business Activities

Making Electricity Use Carbon Neutral across All Business Locations in Japan (Using Renewable Energy-Derived Credits)

As one of the concrete measures aimed at realizing our 2050 vision, all power supplied to our new Head Office, which we relocated to in May 2020, meets RE100* criteria. This has been achieved by mainly procuring energy from the Fukushima Natural Gas Power Plant (Shinchi, Soma, Fukushima Prefecture), a facility which has Mitsui as one of its main investors, and by applying renewable energy-derived credits generated by the biomass power generation of our affiliate company Konan Utility Co., Ltd. ("Konan Utility"). We have also applied credits generated by Konan Utility and Mitsui’s Forests to the electricity used in all offices and training centers in Japan, enabling us to make all business locations in Japan carbon neutral.

* RE100 is an international initiative whereby member companies aim to procure 100% of energy consumed in business operations through renewable energy sources. The RE100 criteria defines the amount of electricity that can be accounted for as renewable energy, taking into account the systematic differences between countries.

Investment in Totam, a Netherlands-Based Tomato Seed Company (Adaptation Initiative for Climate Change)

We have invested in Totam Seeds B.V. ("Totam"), a Netherlands-based company engaged in the development, breeding, and sale of tomato seeds.
Tomatoes represent the largest crop segment in the vegetable seed market and Totam has a proven track record in developing tomato seeds in the fast-growing active greenhouse segment. Active greenhouses offer climate control that enables year-round production and stable supply while minimizing labor, which is an issue for the global agriculture industry. As a result, this cultivation style is growing at a rate of about 8% per year.
Mitsui is placing a focus on responding to increased demand for food due to growth of the world's population, as well as ensuring a stable supply of food in adaptation to climate change and addressing increasing demand for vegetables to improve people's health and living standards. The vegetable seed business, which is a potential solution to these challenges, has been positioned as a key strategic area, and through this investment, we will contribute to the improvement of people's diets around the globe.

Environment-Related Business

Our Medium-Term Management Plan and environmental policy call for action on climate change. Our business activities are directed toward both economic development and response to climate change; therefore we engage in renewable energy projects, modal shift projects, and the expansion of other business initiatives as well as diffusion of technology that contribute to the reduction of CO2 emissions and improvement in energy consumption efficiency.

Renewable Energy Projects

In our power generation business we intend to lower coal-fired thermal power as a percentage of our equity share of power generation capacity and increase the percentage of renewable energy (including hydropower) to 30% by 2030. As of March 31, 2021, renewable energy, including hydroelectric power, accounted for approximately 14% of Mitsui's total power generating capacity of 11.1GW. We are aiming to increase the share held by renewable energy to 30% by 2030.

Please scroll horizontally to look at table below.

(As of March 2021)

Energy resources Country/Region Net generation capacity (Mitsui's share) (MW) * Ratio Target
Renewable Energy (total) 1,621 15% More than 30%
Solar Japan 152
U.S. 170
Mexico 104
Jordan 34
India 17
China 16
Brazil 7
UAE 2
Thai 1
Hydropower Brazil 750
Laos 42
Spain 24
Wind Mexico 162
Morocco 35
Argentine 33
Japan 27
Australia 21
Solar thermal Spain 15
Biomass Japan 6
Geothermal Japan 3
Natural gas 7,341 67% Less than 70%
Coal 2,002 18%
Oil 42 0.4%
Total 8,862 100% 100%

* Including assets under construction

Modal Shift

In addition to the railway leasing business that we have been engaging in over many years, we have also been actively launching and operating various railway projects, thereby developing and improving social infrastructure while promoting modal shift to contribute to green logistics. Of the rail networks in whose operation Mitsui participate as of March 31, 2021, the freight railroad network has a total route length of 10,700 kilometers, and the passenger network has a total route length of 2,810 kilometers.

Please scroll horizontally to look at table below.

(As of March 31, 2021)

Main business Country/Region Project size
Freight wagon leasing business U.S. Four global bases (U.S., Brazil, Europe, Russia):
approx. 15,200 Freight wagons, approx. 350 Locomotives
Russia
Freight wagon rental business Brazil
Locomotive leasing business Europe
Freight wagon transportation business Brazil Operating a railway network of approx. 10,700 km, and port terminals
Passenger railway transportation business  
  Rio de Janeiro suburban railway Transportation record: Approx. 350,000 passengers per day (December 2020)
  Rio de Janeiro Light Rail Train Transportation record: Approx. 30,000 passengers per day (December 2020)
  São Paulo metro line no. 4 Transportation record: Approx. 300,000 passengers per day (December 2020)
  East Anglia U.K. Transportation record: Approx. 34,320,000 passengers per day (December 2020)
  West Midlands Transportation record: Approx. 29,570,000 passengers per day (December 2020)
Car sharing business Singapore Fleet of cars: Approx. 280

ZEV (Zero Emission Vehicle) Bus Operations in Europe

In December 2017 we invested in Caetano Bus, S.A. of Portugal. This company has been involved in the development of electric buses since 2010. In 2016 they began the sale of ramp buses used to transport passengers within airports, and in 2017 the company started commercial production and sales of electric transit buses in Europe. We are using our global network to help in the expansion of sales of the company’s buses. As an example of Caetano's global expansion, a total of 34 single-deck electric buses were delivered to two London routes in the spring of 2020. The company also completed the development of an FC (fuel cell-powered) transit bus at the end of 2020. Beginning with Germany and Saudi Arabia, we have started selling FC buses that use Toyota fuel cell systems. In our partnership with Caetano Bus, we will continue looking to provide the optimal solutions suitable for operations seeking to achieve a carbon-free society.

ZEV (Zero Emission Vehicle) Bus Operations in Europe

360° BUSINESS INNOVATION: FULL CHARGE AHEAD: Assembling an EV value chain for the smart-city era

Supply of Carbon-Neutral LNG to Hokkaido Gas

In March 2021, we supplied carbon-neutral LNG to Hokkaido Gas' Ishikari LNG Base. This is the first time that carbon-neutral LNG has been received in Hokkaido, and also the first time for Mitsui to supply it. The carbon-neutral LNG cargo that we supplied to Hokkaido Gas in March 2021 is one of those which we supply under the long-term LNG sale and purchase agreement concluded in October 2017. We have used carbon credits to offset the CO2 emissions produced throughout its life cycle, including feed gas production, liquefaction, and combustion. We purchased the carbon credits covering this project from an international forest conservation project, and they were generated based on rigorous standards and verified by a reliable third-party. We are engaged in forest planting projects in Australia and other countries, as well as carbon credit generating projects involving initiatives such as forest conservation activities in Cambodia, and we will continue to maintain and develop forests and other carbon sinks.

Participation in the CCS Business

CCS stands for Carbon Capture and Storage. We have invested in CCS company Storegga Geotechnologies Limited (“SG”) of the UK. SG, through its wholly owned subsidiary Pale Blue Dot Energy Limited, is developing the Acorn CCS project to capture, transport, and store CO2 emitted from the UK and neighboring countries, to reduce CO2 emissions and achieve CO2 Net-zero emissions by 2050, a target that has been set by the UK government. The Acorn CCS project will use depleted oil and gas fields where production has ceased as reservoirs for the storage of CO2. In this way, the project will reutilize existing infrastructure and will achieve cost competitiveness. SG is also working to commercialize its Direct Air Capture technology to extract CO2 directly from the atmosphere. We will use our knowledge of upstream oil and gas businesses and our extensive business network to help SG strengthen its business base through management participation and business alliances. Utilizing our comprehensive abilities together with the knowledge gained in the UK and Europe where development of governmental rules and regulations of Carbon Capture, Utilization, and Storage (“CCUS”) businesses is advanced, we aim to develop a global CCUS business that will include Asia and will provide CO2 reduction solutions to the world.

Hydrogen Station Business in California

California is an area that is famous for pioneering environmental initiatives and as of 2020, there were over 9,000 fuel cell vehicles (“FCEV”) being used in the state, around twice as many as in Japan. Mitsui was quick to take notice of this, and we have launched a business collaboration with FirstElement Fuel, Inc. (“FEF”), the largest hydrogen station developer and operator in California. FEF currently operates 23 hydrogen stations and it will continue this development into the future in order to facilitate the further spread of FCEV. Following on from passenger vehicles, from 2024, operators of commercial vehicles such as buses and trucks in California will be required to transition to zero-emission vehicles, so we plan to build a hydrogen refueling framework, including hydrogen stations, to ensure that important commercial vehicles can continue to operate over sufficient distances and with appropriate cargo capacities. As another example of our FCEV-related business, in 2016 we invested in Norway’s Hexagon Composites ASA, the world leading manufacturer of lightweight pressure cylinders, and we are working with the company to develop trailers for transporting hydrogen using pressure cylinders. Together with FEF, we will use these trailers to launch a framework for lower-cost distribution of hydrogen to hydrogen stations.

CCU — Producing Methanol in the U.S. that Effectively Uses CO2

Our affiliate, Fairway Methanol LLC, decided in March 2021 to expand its facilities to increase methanol production (approximately 130,000 tons per year) by purchasing and effectively utilizing by-product carbon dioxide (CO2) from surrounding plants (up to approximately 180,000 tons per year) as the source. The decision to expand its facilities was made to maximize the effective capacity of the existing plant, and carbon dioxide sourced from neighboring plants will be used as the raw material for the plant's newly added capacity. This is a CCU (Carbon Capture and Utilization) initiative, which involves separating and effectively utilizing carbon dioxide. Under this concept, CO2 is considered a resource that can be reused as a material or fuel, thus realizing carbon recycling to reduce emissions into the atmosphere.
Demand for methanol is expected to grow steadily in the future as a basic raw material for a variety of industries, including housing and construction materials, high-performance resins for automobiles and electronics, and pharmaceuticals. Recently, methanol has also been attracting attention as a key chemical substance that can be sourced from carbon dioxide. Mitsui has been engaged in the methanol trading business for many years. In addition to the business in North America where this expansion will take place, Mitsui is also involved in a methanol production business in Saudi Arabia.
Through the stable supply of methanol, Mitsui is supporting the development of a wide range of industries and contributing to the realization of a sustainable society. Furthermore, to achieve Net-Zero Emissions by 2050, which is the target set in our Medium-term Management Plan, we will make use of our existing businesses and the know-how we have accumulated through them to promote initiatives to realize a decarbonized society.

Forest Carbon Sinks and Carbon Credit Business

A forest plantation asset managed by New Forests in Australia. A forest plantation asset managed by New Forests in Australia.

We have invested and participate in New Forests Pty Limited ("New Forests") in Australia, which is engaged in the forestry asset management business in Oceania, Asia, and North America (Asset under management totaling approximately ¥470 billion and approximately 790,000 hectares). New Forests manages forest assets that store 170 million tons of CO2 equivalent (tCO2e) and generated 7.5 million tCO2e carbon credit in 2020. Mitsui is committed to the supply of sustainable forest resources and will continue to contribute to the prevention of global warming through forestry fund management businesses that create forest carbon sinks and generate carbon credit.

Green Buildings

We aim to invest in environmentally friendly buildings and make energy use in our existing buildings more efficient through environmental and energy-saving measures, in order to build a portfolio of properties that has a low environmental impact.

Japan Logistics Fund, Inc.

Listed REIT Japan Logistics Fund, Inc. (“JLF”), which is operated by our subsidiary Mitsui & Co., Logistics Partners Ltd., has acquired DBJ Green Building certification(*1) at 15 of its properties and has also received certification under the BELS(*2) and CASBEE(*3) evaluation systems. Also, in order to further advance its environmental efforts, in April 2021 the fund issued a green bond. Its green finance framework also received a Green 1 (F) rating from the Japan Credit Rating Agency, Ltd. (“JCR”), the highest rating under the JCR Green Finance Evaluation system.

  • *1. A certification system established by the Development Bank of Japan (“DBJ”) in April 2011 to assess real estate that takes the environment and society into consideration (green buildings).
  • *2. A third-party certification system that indicates the energy efficiency of buildings
  • *3. A system for evaluating the overall environmental performance of a building. It evaluates and rates the environmental performance of buildings based on energy and resource conservation, recycling and other environmental burden reductions as well as interior comfort and landscaping.
Acquiring External Certification

We participate in GRESB*, an annual benchmarking assessment to measure the ESG integration of real estate companies and funds, as well as the name of organization which runs the assessment. In the 2020 assessment, JLF received a "Green Star" designation indicating that it was highly evaluated for both "Management & Policy" and "Implementation & Measurement" with regard to activities for environmental and social consideration and sustainability. The ratio of properties that have received green certification (based on rentable floor area) are as follows.

  • Acquire green certifications in 50% of portfolio in FY 2025.
  • Acquire green certifications in 70% of portfolio in FY 2030.

* An annual benchmarking assessment to measure ESG (Environmental, Social and Governance) integration of real estate companies and funds, as well as the name of organization which runs the assessment.

Please scroll horizontally to look at table below.

Percentage of Portfolio with Green Building Certification (as of July 31, 2021)
Type of certification Number of properties Leasable area (m2) Percentage of portfolio (by area)
DBJ Green Building 15 572,847 44.0%
BELS 3 153,067 11.8%
List of Properties that Have Obtained DBJ Green Building Certification
Certification Year Property
4 Stars 2018 M-6 Funabashi Nishiura Logistics Center
M-12 Yokohama Fukuura Logistics Center
M-13 Yachiyo Logistics Center II
M-19 Souka Logistics Center
M-26 Sagamihara Logistics Center
M-31 ShinKiba Logistics Center II
M-32 Yokohama Machida Logistics Center
2019 M-11 Yachiyo Logistics Center
M-24 Shin-Koyasu Logistics Center
3 Stars 2018 M-5 Urayasu Chidori Logistics Center
M-22 Musashimurayama Logistics Center
2019 M-28 Chiba Kita Logistics Center II
M-25 Misato Logistics Center
M-39 Saitama Kisai Logistics Center
M-40 Kazo Logistics Center
List of Properties that Have Obtained BELS Certification
Certification Year Property
5 stars 2020 M-11 Yachiyo Logistics Center
2021 M-19 Souka Logistics Center
M-22 Musashimurayama Logistics Center
CASBEE

Yachiyo Logistics Center and Ichikawa Logistics Center II (following their redevelopment), and Yokohama Machida Logistics Center, each received an A rating under CASBEE.


Japan Logistics Fund, Inc.:Certification

Mirai Corporation

MIRAI Corporation, a listed REIT operated by Mitsui Bussan & Idera Partners Co., Ltd., which is a Mitsui affiliated company, has also acquired DBJ Green Building certification at six of its properties.

The percentage of environmental certifications in the portfolio is as follows. (As of April 30, 2021)

Based on acquisition price Based on gross floor area
55.0% 62.0%
Certification Year Property
4 Stars 2019 Shinjuku Eastside Square
3 Stars 2018 Shinagawa Seaside Parktower
2019 Rokko Island DC
2020 Tokyo Front Terrace
1 Star 2020 MI Terrace Nagoya-Fushimi
Kawasaki Tech Center

MIRAI Corporation: Third-party Accreditation

Performance

GHG Emissions

Mitsui has carried out GHG emissions surveys domestically since the fiscal year ended March 2006 and in overseas since the fiscal year ended March 2009. Until now we have disclosed Scope 1 and Scope 2 GHG emissions under the GHG Protocol* control standards**. Since the fiscal year ended March 2020, we have also disclosed emissions equivalent to Scope 1 and 2 from energy, mineral and metal resources, and thermal power generation projects not covered under Scope 1 and 2, as well as Scope 1 and 2 emissions from other affiliated company businesses, as Scope 3, Category 15 (indirect emissions associated with investments). We have enhanced the scope of disclosures to promote continuous reviews of our portfolio considering our risk tolerance to climate change. This also takes into account Mitsui's strategy of using our wide range of business activities to take on the challenge of new opportunities in an agile way.
In the fiscal year ended March 2021, our GHG emissions at the Head Office, all offices in Japan and subsidiaries were 0.56 million tons, whereas GHG emissions at un-incorporated joint ventures in mineral and metal and energy resources fields totaled 3.78 million tons. In total, our emissions came to 4.34 million tons. GHG emissions from investments covered by Scope 3, Category 15 came to 0.35 million tons.

* GHG Protocol is a GHG emissions calculation and reporting standard formulated through an initiative led by the WRI (World Resources Institute) and the WBCSD (World Business Council for Sustainable Development).
** Coverage: Head Office and all offices in Japan, all consolidated subsidiaries (100%) and Un-incorporated Joint Ventures.


Environmental Performance Data: Energy Consumption

Environmental Performance Data: Greenhouse Gas (GHG)

Additional Reference Data

Costs Associated with Climate Change

Cost of efforts to manage climate change risk: \20 million to recycle industrial waste from Head Office
Cost of research and development into managing climate change risk (subsidies for research into establishing evaluation methods for measures to support the enhancement of climate change-related reporting in developing countries): \4.5 million (April 2018-March 2021)

Equity share of production and reserve volumes for oil and gas

Equity share of production and reserve volumes for oil and gas

*1. Oil equivalent
Mitsui's equity share of interests of consolidated subsidiaries, affiliates, and non-consolidated interests
*2. Mitsui’s share of sales is applied to certain projects
(Est.) assumes that the impact of the novel coronavirus has not been factored into some figures
*3. According to Mitsui’s assessment standards

Our Company-Owned Forests, "Mitsui's Forests," Absorb and Fixate 160,000 Tons of Carbon Dioxide Annually

Mitsui's Forests

It is estimated that Mitsui's Forests absorb and fixate approximately 160,000 tons of CO2 per year, and that they have accumulated approximately 10 million tons*1. We contribute to the mitigation of climate change risk through sustainable forest management. The public value of Mitsui’s Forests is estimated to be approximately 200 billion yen*2.

*1. Calculation based on the Tier 2 approach in Chapter 4, "Forest Land," in Volume 4 of the "2019 Refinement to the 2006 IPCC Guidelines on National Greenhouse Gas Inventories." In the past, the calculation was based on the Tier 1 approach in the 2006 IPCC Guidelines, but we changed the calculation method in the fiscal year ending March 31, 2021, to improve accuracy.
*2. Calculation based on the “Comprehensive Assessment of Biodiversity and Ecosystem Services” published by the Ministry of Environment


Evaluation by Society