Environment
Natural Capital
Policies and Basic Approach
Because our business activities largely depend on natural capital, conserving nature and preventing loss from it are key issues. Through our business, we will contribute to the global target of achieving Nature Positive* by 2030, which was adopted under the Kunming-Montreal Global Biodiversity Framework.
* To halt and reverse biodiversity loss by reducing our dependency and impact on nature through our value chain, and by restoring and regenerating ecosystems.
To this end, we will identify and analyze our dependency on and impact on nature and the associated risks and opportunities, integrate natural capital perspectives into our existing environmental and social risk management processes. By promoting businesses that can reduce nature-related dependencies and negative impacts, and avoiding excessive burdens (impacts) on nature, we aim to achieve the sustainable use of nature while enhancing our business portfolio.
We consider the conservation of natural capital to be an important management issue, and are promoting initiatives aimed at realizing a sustainable society. Our policies and basic approach regarding biodiversity, pollution prevention, and water resources, which are included in the environmental issues related to business activities as stated in our Environmental Policy, are as follows.
Biodiversity
Under our Environmental Policy, we have stipulated that we will assess the environmental impact of our business activities and work to conserve biodiversity.
Our business activities are dependent on ecosystem services, which are generated through connections between a diverse range of living beings. Accordingly, we aim to minimize the negative impact our business activities have on the environment.
For example, we will work to ensure the sustainable use of natural resources, such as forests and ocean (fisheries) resources, and prevent any environmental impact on areas adjacent to our operational sites. We will also identify business areas that have a relatively high impact on biodiversity and work to conserve biodiversity. In addition, we will endeavor to protect biodiversity through initiatives such as Mitsui's Forests.
Water Resources
Water is the source of all life on earth, as well as being an invaluable resource that serves as the survival foundation of all socio-economic systems. As a consequence of global population growth and advancing climate change, water resource problems are arising on a global scale.
We recognize that access to safe and sanitary water is one of the important rights for all people. Also, water resources are essential for business continuity as well as for the residents in the communities where we operate. We have stipulated in our Environmental Policy that we will endeavor to conserve water resources by reducing water consumption and improving the efficiency of the water resources used.
We operate around the world, including in regions subject to high water stress, and recognize that large-scale development and the vast consumption of water resources have caused problems with water resources. Accordingly, we will carry out water risk assessments to respond appropriately to these problems, and work to promote the conservation and sustainable use of such resources. In addition, we will develop businesses such as seawater desalination and water pumping, and will help to resolve water-related issues through them.
Furthermore, Mitsui's Forests aim to maximize the value provided to society, including public functions such as recharging water sources, and biodiversity and ecosystem services, through appropriate forest management according to the characteristics of each forest. Approximately 15,000 hectares of these, equivalent to around 30% of our company-owned forests, have been officially designated as Water Conservation and Water Safety Forests. They, as forests in important regions for basin conservation, help regulate river flow, mitigate flooding, and secure water for various uses.
In addition, we will work to reduce our water use at our offices, such as by treating and reducing effluent.
Pollution Prevention
Under our Environmental Policy, we have stipulated that we will act to reduce hazardous waste and pollutants and ensure the proper handling of any such materials, and strive to prevent air, water, ocean and soil pollution. We recognize that it is a vital issue for us to strive to improve the environmental value by reducing their environmental burden. This includes pollution control and protecting the environment. We will comply with laws, regulations and ordinances related to air pollution, water pollution, soil pollution, and rules covering other hazardous substances. We will also work to reduce the emission of pollutants and contaminated substances that are not subject to current laws, regulations and ordinances. We promote initiatives that lead to the reduction of water, ocean and soil pollution and a reduced quantity of chemical substances released into the atmosphere.
Disclosure Based on TNFD Recommendations
Disclosure Policy
In March 2025, Mitsui declared its support for the Taskforce on Nature-related Financial Disclosures (TNFD), and registered as a "TNFD Adopter". In accordance with the recommendations of the TNFD and as a responsible company operating globally, we actively promote information disclosure with an awareness of stakeholder expectations.
Disclosure Based on TNFD Recommendations (December 2025) (PDF 1.47MB)
General Requirements
The general requirements for this disclosure are as follows.
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Application of materiality
Based on the concept of double materiality*, we disclose information related to nature by considering two aspects: the financial impact of nature-related issues on Mitsui (financial materiality), and Mitsui’s effect on nature (environmental and social materiality).
* The concept of considering importance from two perspectives: the financial impact of the environment and society has on a company, and the impact of corporate activities on the environment and society.
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Scope of disclosures
Given the global and diverse nature of our business operations, we first conducted a high-level assessment of the dependencies and impacts across the entire value chain of our business operations. Based on this, we then carried out a detailed analysis of dependencies, impacts, risks, and opportunities based on the LEAP approach for the following three business segments with significant dependencies and impacts: "Development and Mining of Mineral and Metal Resources," "Desalination," and "Crop Protection and Agri-inputs." For "Development and Mining of Mineral and Metal Resources" and "Desalination," the analysis focused on direct operations, while for the "Crop Protection and Agri-inputs," the analysis covered the entire value chain. Additionally, in the fiscal year ended March 31, 2026, we assessed risks and opportunities through scenario analysis across all of the group's businesses, including these operations. We evaluated priority regions based on the criteria outlined in the TNFD guidance, targeting 644 key business sites and assets across our Group.
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Location of nature-related issues
We recognize the importance of considering information about locations that interact with nature when assessing our dependency and impact on it, as well as risks and opportunities. Therefore, we have evaluated priority regions based on location information for our 644 major business sites and assets, and assessing our dependency, impact, risks, and opportunities using the LEAP approach as a reference.
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Integration with other sustainability-related disclosures
We recognize that social issues are diverse, including climate change, natural capital, and human rights, and that they are interrelated and sometimes difficult to resolve. For this reason, we will help to achieve a sustainable society by leveraging our functions as a global investment and trading company to the fullest extent, collaborating proactively with various stakeholders, and creating value in a manner unique to Mitsui. In considering and promoting initiatives related to nature-related issues, we will also take action based on their relationships with other issues.
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The time horizons considered
In this disclosure, short-term is defined as up to the following fiscal year ending March 31, 2028, the medium term as through 2030, and the long term as through 2050.
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Engagement with indigenous peoples, local communities and affected stakeholders
We value our involvement and dialogue with society. For this reason, we ascertain the impact our diverse and global business activities have on natural capital and society, identify and recognize the relevant stakeholders, and then engage in dialogue with them.
Governance
Governance Structure for Natural Capital Response
We have identified "Create a community coexisting with nature" as one of our material issues for our business management (Materiality), and regard natural capital as a key issue in our management. Under the supervision of the Board of Directors, we have established a governance framework for nature-related issues centered on the Sustainability Committee, a subordinate organization under the Executive Committee. Furthermore, in advancing our contributions to nature-positive outcomes through our business activities, we engage in dialogue with all stakeholders who may be indirectly affected by how our operations and supply chains impact nature. We respect human rights, including those of indigenous peoples and local communities, and aim to realize sustainability for both society and our company.
Sustainability Committee
We regard natural capital as a key issue in our sustainability management, along with climate change and business and human rights. The Sustainability Committee, which works under the Executive Committee, plans, formulates and provides proposals on basic management policies, business activities, and corporate policies and strategies related to natural capital, including the assessment of nature-related dependencies, impacts, risks, and opportunities. The Sustainability Committee is structured so that its activities are appropriately supervised by the Board of Directors, which is composed of members with expertise and experience in environment/society. Matters discussed by the Sustainability Committee are regularly submitted for discussion and reported to the Executive Committee and the Board of Directors.
| Officer in Charge | Representative Director, Executive Vice President, Chief Strategy Officer (CSO), Chairperson of the Sustainability Committee |
|---|---|
| Administrative Office | Corporate Sustainability Div., Corporate Planning & Strategy Div. |
Please refer to the links below for more information on Mitsui's Sustainability Management Framework and the activities of the Sustainability Committee.
Our Approach to Sustainability: Sustainability Governance and Oversight
Our Approach to Sustainability: Sustainability Committee Details
Natural Capital-Related Discussions
There were 5 major natural capital-related agendas by the Sustainability Committee over the past three years.
FY March 2024
- Report on Natural Capital: Report on Risk and Opportunity Identification and LEAP Analysis*1
- Report on Natural Capital: LEAP Analysis Results and Their Utilization/Japanese OECM*2 Site Registration Policy in Mitsui's Forests
*1 The processes of Locate, Evaluate, Assess, and Prepare to identify and assess nature-related issues.
*2 Please refer to the links below for more information.
FY March 2025
- Report on Policy for Natural Capital Initiatives
- Deliberations on Adopting TNFD Recommendations
FY March 2026
- Report on Status of fiscal year ended March 2026 Initiatives and Future Policy
Sustainability Advisory Board/Collaboration with External Experts
We have established a Sustainability Advisory Board, which is composed of external experts with knowledge of environmental and social issues including natural capital, and utilizes information and advice provided by its members in deliberations by the Sustainability Committee. In addition to Sustainability Advisory Board members, we also engage in communication with external experts to help ensure that we appropriately address climate change.
In the fiscal year ended March 2026, we held discussions with Sustainability Advisory Board members on the progress of our natural capital initiatives and our future direction.
Stakeholder Engagement
We emphasize interacting with and engaging in dialogue with society. For this reason, we carefully assess the effects of our diverse and global business activities on natural capital and society, and identify and acknowledge stakeholders of particular interest.
In particular, we are committed to the development of relationships based on mutual trust with a diverse range of stakeholders, including local communities, business partners and consumers, NPOs and NGOs, employees, shareholders and investors, and government bodies, through proactive information disclosures and regular dialogue with our stakeholders.
We recognize the importance of engagement with stakeholders, not only within our own operations but also across our supply chain, particularly those of indigenous peoples and local communities who are closely tied to natural capital. Accordingly, we established our Human Rights Policy in August 2020. The Board of Directors of Mitsui & Co., Ltd. is responsible for overseeing the adherence to this Policy, and the Executive Committee makes material decisions regarding its execution. The Sustainability Committee, a subordinate body of the Executive Committee, is in charge of deciding detailed plans based on this Policy, as well as planning and developing measures, and building and maintaining a framework for Policy implementation.
Please refer to the links below for more information on Mitsui & Co.'s Human Rights Due Diligence.
When conducting our business activities, we comply with all laws of the applicable country or region, and strive to respect the human rights and cultures of indigenous people in each country and region in accordance with international standards, such as the United Nations Declaration on the Rights of Indigenous Peoples, the Convention Concerning Indigenous and Tribal Peoples in Independent Countries (ILO Convention: C169), and the principle of "free, prior and informed consent (FPIC)". For example, in our forest resources business in Australia, we have obtained forest certification that requires regular audits by an independent third-party certification body, and we operate the business with due respect for the traditional rights of Indigenous Peoples. In addition, Mitsui Australia, in cooperation with its consolidated subsidiaries in Australia, is engaged in a range of initiatives to ensure respect for the rights of indigenous people in Australia. These include not only business activities, but also training for employees, Acknowledgement of Country (a statement of respect for indigenous peoples) at major events and meetings, and the planning of new initiatives through regular information exchanges among staff from each branch and subsidiary in Australia.
In Japan, we conduct forest management in Mitsui's Forests with respect for the traditions and culture of indigenous people. In Hokkaido Saru Forest, where a part of Mitsui's Forests is located, Mitsui has entered into agreements with the Biratori Ainu Association and with the town of Biratori to cooperate in activities to protect and pass on traditional indigenous culture through the conservation of forests.
Through interactive communication with stakeholders, each of Mitsui's employees and officers is endeavoring to acquire an understanding of what society expects from and requires of Mitsui, and thereby contribute to realizing a sustainable society.
Strategy
Many of our business activities both depend on and impact natural capital. With the recognition that changes in the natural environment could significantly impact our business portfolio over the medium to long term, we regard natural capital as one of our key issues in our sustainability management. In addition, based on the fundamental concept of creating both social value and economic value through our business activities, we will seek to achieve the sustainable enhancement of corporate value by integrating nature-related opportunities and risks into our portfolio management.
Based on this approach, in accordance with the TNFD recommendations, we have been identifying and assessing nature-related issues since the fiscal year ended March 31, 2024, while also working to integrate them into our business strategy, advance related initiatives, and enhance our disclosures. In line with the LEAP approach recommended by the TNFD, we have conducted assessments while gradually expanding the scope of analysis. In March 2025, we became a TNFD Adopter, and in June of the same year, we published our first TNFD Report.
Roadmap
We are advancing our natural capital initiatives in stages. In the fiscal year ended March 31, 2026, we expanded the scope of our analysis to cover all of our businesses and conducted scenario analysis incorporating natural capital. The analysis indicated that nature-related dependencies, impacts, risks, and opportunities differ in their characteristics across our businesses, highlighting the need to establish business-specific metrics. It also confirmed the importance of reflecting risk mitigation and opportunity creation in business management and in enhancing the quality of our business portfolio.
Going forward, we will identify priority businesses and further develop specific metrics, while steadily advancing our response to nature-related risks and opportunities and further integrating these considerations into our portfolio management.
*1: 10 key businesses: 4 businesses with significant nature-related dependencies: Crop protection and agri-inputs; forestry, production of wood-related products; livestock and dairy farming; and aquaculture. 6 businesses with significant nature-related impacts: Development and mining of mineral and metal resources; oil and gas exploration, development, extraction and production; ports and terminals; thermal power generation; petrochemical production; and production of machinery, automotives, automotive components, etc.
*2: 7 VCs: Iron and Steel, Non-ferrous Metals, Energy Supply, Power Generation, Chemicals, Food, Forest Resources.
Identification of Nature-related Issues Based on the Leap Approach
At the main business sites of our group, including the 10 important nature-related businesses, we referred to the priority area assessment indicators set out in the TNFD guidance to narrow down the businesses to be included in the LEAP analysis, and then conducted analysis and evaluation.
Outline of the LEAP Approach
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Locate
The Interface With Nature
- Scope of the business model and value chain
- Dependency and impact screening
- Interface with nature
- Interface with sensitive locations
- Consider in which areas of the entire value chain dependency on and impacts on nature are important
- Understanding the ecosystems involved and the locations of activities at our sites and in areas of the value chain where dependencies/impacts are important
- Evaluate ecologically sensitive areas and areas where dependencies and impacts are important
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Evaluate
Dependencies & Impacts
- Identification of environmental assets, ecosystem services and impact drivers
- Identification of dependencies and impacts
- Dependency and impact measurement
- Impact materiality assessment
- Identify what ecosystem services each location depends on and impacts through the value chain
- Evaluate key dependencies/impacts using a variety of indicators
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Assess
Risks & Opportunities
- Risk and opportunity identification
- Adjustment of existing risk mitigation and risk and opportunity management
- Risk and opportunity measurement and prioritization
- Risk and opportunity materiality assessment
- Identify and evaluate the significance of nature-related risks and opportunities based on the nature of each dependency/impact
- Identify high-priority risks and opportunities
- Examine processes for managing risks and opportunities
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Prepare
To Respond & Report
- Strategy and resource allocation plans
- Target setting and performance management
- Reporting
- Publication
- Consider what response strategies to take based on what you have evaluated
- Examine ways to set target
- Consider the content of information disclosure
Outline of Nature-related Dependency and Impact
- Scoping
Given the global and diverse nature of our business operations, we utilized the international analysis tool ENCORE* to understand the relationship between each business sector and nature. We assessed the content and significance of nature-related dependencies and impacts across our business sectors, took a comprehensive view of the entire value chain in which we are involved, and organized the findings in the form of dependency and impact heatmaps (see below).
* An online tool jointly developed by the United Nations Environment Programme, the Natural Capital Finance Alliance (UNEP-NCFA), and other organizations, with the aim of understanding the extent of nature-related dependency and impact of private companies.
Our Approach Based on the LEAP Framework
| 1. Gaining an Overview of Nature-related Dependencies and Impacts |
|---|
After mapping the key value chain processes across our business areas, we used ENCORE to assess the significance of nature-related dependencies and impacts at each stage in the form of a heat map. Based on this assessment, we identified 10 important businesses from a nature perspective.
At the group's major business sites, including these 10 important businesses, we conducted LEAP analysis as outlined below, using the TNFD guidance's assessment criteria for priority locations as a reference. |
| 2. Locate: Assessing Priority Locations Across Major Business Sites |
| We assessed 644 major business and asset locations across the group to identify priority locations from a nature perspective. Referring to the assessment criteria set out in the TNFD guidance, we evaluated each location using multiple indicators, including biodiversity importance, ecosystem integrity, and water stress. |
| 3. Evaluate/Assess: Assessing Dependency and Impact Across Business Areas and Conducting Scenario Analysis of Risks and Opportunities |
| We organized our business activities into 7 value chains, including the 10 important nature-related businesses, and considered the nature-related dependencies and impacts at each stage of those value chains. In addition to the assessment results generated using ENCORE, we evaluated the characteristics and significance of these dependencies and impacts with reference to the TNFD sector guidance, SASB industry-specific standards, the GRI Standards, and other relevant frameworks. Among the 10 important nature-related businesses, we conducted LEAP Analysis on 3 businesses—Development and Mining of Metal Resources, Desalination, and agricultural materials and agrochemicals—in advance in the fiscal year ended March 31, 2024 In the fiscal year ended March 31, 2026, we also assessed nature-related risks and opportunities across the 7 value chains using the scenario analysis methodology recommended by the TNFD. |
| 4. Prepare: Developing Responses Based on the Analysis Results |
| Based on the findings from our LEAP-based analysis to date, we have strengthened our review framework by incorporating natural capital-related criteria into our existing environmental and social risk assessment process for new investment and financing projects. Going forward, based on the results of our scenario analysis, we will continue to identify priority business areas and key natural capital elements, while considering appropriate responses to nature-related risks and opportunities and developing effective metrics. |
Details for each item are as follows.
1. Gaining an Overview of Nature-related Dependencies and Impacts
After mapping the key value chain processes across our business areas, we used the international analysis tool ENCORE to assess the significance of nature-related dependencies and impacts at each stage in the form of a heat map. Based on this assessment, we identified 10 important businesses from a nature perspective. The heat map below illustrates the dependencies and impacts of our major businesses.
Dependency Heat Map
Impact Heat Map
Based on the significance and substance of the dependency and impact organized in the heatmap above, and further by considering the amount of capital invested in the business and the size of its revenue (sales), the following 10 businesses were identified as important nature-related businesses.
- 4 businesses with significant nature-related dependencies: Crop protection and agri-inputs; forestry, production of wood-related products; livestock and dairy farming; and aquaculture.
- 6 businesses with significant nature-related impacts: Development and mining of mineral and metal resources; oil and gas exploration, development, extraction and production; ports and terminals; thermal power generation; petrochemical production; and production of machinery, automotives, automotive components, etc.
*1 Dependence: Ecosystem services on which an organization (incl. companies) relies on in order to do business. Only the main dependencies of each business area are shown as examples
*2 Impact: A change in the state of nature that results from an organization's (incl. companies) business activities. Only the main impacts of each business area are shown as examples
2. Locate: Assessing Priority Locations Across Major Business Sites
- Locate
We assessed 644 major business and asset locations across the group to identify priority locations from a nature perspective. Referring to the assessment criteria set out in the TNFD guidance, we evaluated each location using multiple indicators, including biodiversity importance, ecosystem integrity, and water stress.
|
Evaluation Perspective |
Referenced Indicator |
Indicator Description |
|---|---|---|
| High ecosystem integrity | Biodiversity Intactness Index | Biodiversity Intactness Index (expressed as a percentage, a measure of how much more or less common a species is, relative to its predicted abundance if the human footprint were minimal) Data source: Newbold et al. (2016) |
| Decline in ecosystem integrity | Loss of tree cover | Ratio of area with declining tree cover around business sites Data source: Global Forest Watch |
| Importance of biodiversity | Proximity to protected areas and Key Biodiversity Areas (KBA) | Evaluation of whether protected areas and Key Biodiversity Areas (KBAs), designated under international conventions and Key Biodiversity Areas (KBAs) selected under global standards, exist within a 500m radius of each site Data source: The World Database on Protected Areas, IBAT (Integrated Biodiversity Assessment Tool) |
| STARt metrics (Species Threat Abatement and Restoration) | STARt metric (an indicator that quantifies the potential for species threat- reduction actions in a given area to help reduce the risk of the threat to the species' global extinction risk. This metric is weighted according to the IUCN Red List and the sum of the percentages of the range of each species that the location occupies) Data source: IBAT |
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| Physical water risk | Water stress | Water stress (ratio of water consumption to water supply in a watershed) Data source: WRI (World Resources Institute) Aqueduct Water Risk Atlas |
As a result of our analysis, we found that approximately 34% of our assessed sites, including a copper mine in Chile (business in development and mining of mineral and metal resources), are located in regions with high water stress. Additionally, around 14% of the sites are situated within 500 meters of protected regions or key biodiversity areas.
3. Evaluate/Assess: Assessing Dependency and Impact Across Business Areas and Conducting Scenario Analysis of Risks and Opportunities
- Evaluate
- Assess
Scenario Analysis across the Company's Key Value Chains
We organized our business activities into 7 value chains, including the 10 important nature-related businesses, and considered the nature-related dependencies and impacts at each stage of those value chains. In addition to the assessment results generated using ENCORE, we evaluated the characteristics and significance of these dependencies and impacts with reference to the TNFD sector guidance, SASB industry-specific standards, the GRI Standards, and other relevant frameworks.
In the fiscal year ended March 31, 2026, we expanded the scope of the LEAP approach to cover our company-wide key value chains, including the 10 important nature-related businesses. We conducted a natural capital scenario analysis to assess material dependencies and impacts, as well as related risks and opportunities. We developed four scenarios for this assessment by drawing on the 1.5°C and 4°C climate scenarios used in our climate change scenario analysis, together with the TNFD guidance.
*This axis indicates whether nature-related market and economic trends and non-market developments (such as regulations and societal dynamics) are aligned toward nature positive. Greater alignment represents a scenario in which a coordinated transition toward nature positive advances.
Of the four scenarios above, we selected two—Scenario #1: Nature Positive Scenario and Scenario #3: Nature Loss Scenario—to identify and assess risks and opportunities from a natural capital perspective, while also taking into account issues common to both climate change and natural capital. For further details, please refer to "Methodology for Assessing Dependencies, Impacts, Risks and Opportunities" below.
Scope of Value Chain Analysis
As we operate a broad range of businesses across diverse countries and regions, we narrowed the scope of our analysis based on whether a business met a certain scale threshold in terms of investment amount, net profit, and other indicators, as well as whether natural capital-related factors could have a significant impact on the business.
For this analysis, we organized the scope into 7 value chains, including the 10 important businesses described above, and assessed each stage of these value chains for their dependencies on and impacts on nature.
The following value chains were assessed as part of the nature-related scenario analysis.
|
Value Chain |
Business Processes |
| Iron and Steel | Raw material extraction and procurement / iron and steel production / use, disposal, and recycling in the iron ore, metallurgical coal, and ironmaking raw materials value chains |
| Non-ferrous Metals | Raw material extraction and procurement / manufacturing and processing / use, disposal, and recycling in the non-ferrous metals value chain |
| Energy Supply | Raw material extraction and procurement for oil, gas development, and LNG businesses / production for next-generation fuel businesses |
| Power Generation | Power generation from thermal power and renewable energy |
| Chemicals | Chemical production / ports and terminals (including tank terminal operations) |
| Food | Agriculture and agricultural inputs / livestock and dairy farming / aquaculture / food processing |
| Forest Resources | Forest management / manufacturing and processing / sales |
Methodology for Assessing Dependencies, Impacts, Risks and Opportunities
Dependencies and impacts were analyzed for each key process across the selected value chains. In conducting the assessment, we comprehensively evaluated the nature and significance of these dependencies and impacts, drawing on the ENCORE assessment results as well as the TNFD sector guidance, SASB industry-specific standards, GRI Standards, and other relevant reference materials.
Key Dependencies and Impacts, Risks and Opportunities Across Each Value Chain
1. Iron and Steel VC / Non-Ferrous Metals VC
2. Energy Supply VC
3. Power Generation VC
4. Chemicals VC
5. Food VC
6. Forest Resources VC
4. Prepare: Determining Responses Based on Analysis Results
- Prepare
Based on the findings of the LEAP approach analysis conducted to date, we have strengthened our review framework by incorporating natural capital criteria into our existing environmental and social risk assessment process for new investment and financing projects. In addition, the key dependencies, impacts, risks, and opportunities identified for each major value chain serve as the starting point for reviewing existing metrics and targets, as well as the direction of business-specific management and engagement. The linkages are presented in the "Metrics and Targets" section below.
Risk and Impact Management
Risk Management
We identify company-wide material risks across organizational boundaries and implement a wide range of initiatives to avoid, mitigate and control risks. For this purpose, Mitsui has established an integrated risk management system that manages company-wide risks centrally through the Executive Committee and its advisory body, the Portfolio 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. The Sustainability Committee, a subordinate body of the Executive Committee, plans, formulates and provides proposals on basic management policies, business activities, and corporate policies and strategies related to natural capital.
Please refer to the links below for more information on Risk Management.
Enhancement of Environmental and Social Risk Assessment based on a Natural Capital Perspective
Based on the analysis results regarding nature-related issues using the LEAP approach and scenario analysis, we are strengthening our assessment system by incorporating criteria based on a natural capital perspective into our existing environmental and social risk assessment procedures for all new investments and loans. Specifically, we added indicators obtained through the LEAP approach and scenario analysis to the list of assessment items, and evaluated nature-related dependencies and impacts when assessing risks and opportunities. Furthermore, to utilize this information when forming and assessing projects, we have created a database of regions of high importance in terms of water risk (water stress, etc.) and biodiversity (relationship with protected regions, etc.), and have prepared a water and biodiversity risk map, and are conducting risk analysis on natural capital.
Metrics and Targets
We have established the following goals related to natural capital. Among the significant nature-related issues identified through the LEAP approach and scenario analysis are deforestation and land-use change associated with forest-related commodities, dependence on forest ecosystem services, and impacts such as biodiversity loss across the value chain. To address the resulting procurement constraints, tighter regulations, stakeholder expectations, and reputational risks, we have established procurement and conservation targets related to forest-related commodities, water resources, and biodiversity, which we use to manage nature-related dependencies, impacts, risks, and opportunities.
Going forward, we will explore initiatives in line with TNFD recommendations and set measurement indicators and targets based on analyses of nature-related dependencies, impacts, risks, and opportunities.
Goals and Targets
Sustainable Use of Commodities that are Crucial to Biodiversity
- Aim to procure natural rubber, palm oil, timber, and paper products that have zero connection to deforestation.
- Increase the ratio of sustainable certified palm oil procurement, including RSPO-certified, to 100% by 2030.
This target helps to manage the adverse impacts on forest ecosystems by avoiding and reducing deforestation and land-use change, which are key drivers of nature loss, and supports the management of medium- to long-term supply, regulatory, and reputational risks associated with dependence on forest ecosystem services.
This target contributes to reducing the negative impacts of the palm oil value chain on forests and ecosystems, enhancing supply chain transparency, and maintaining and expanding opportunities for sustainable procurement.
For further details, please refer to the links below.
Conserving Biodiversity
- Maintain and manage Mitsui's Forests that have been designated as Biodiversity Conservation Forests (approximately 10% of our company-owned forests), and other specified areas, by carrying out regular ecosystem monitoring with an awareness of the need to conserve biodiversity.
- Contribute to the creation of national and international frameworks for biodiversity conservation through our proactive participation in social initiatives to conserve biodiversity, such as the TNFD Forum and the 30by30 Alliance
This target contributes to maintaining biodiversity and ecosystem services, including water resource regulation, through monitoring the condition of forest ecosystems and implementing appropriate conservation and management.
Conservation of Water Resources and Identification of Water Risks
- Conserve water resources related to our businesses, identify water risks in our businesses, and consider countermeasures.
- Utilize sustainability due diligence checklists and implement a risk assessment in advance using the water-related checklist items when planning new business or when expanding or withdrawing from operations. Make efforts to understand in advance the risks related to water resources for businesses and investment projects where water resources are particularly important such as beverages, agriculture, and mining in water-stressed regions.
Reduction of water consumption and improvement of utilization efficiency
- Reduce water consumption at Mitsui & Co. (non-consolidated) to less than the amount used in the previous fiscal year, and improve the efficiency of water use.
Prevention of Environmental Pollution
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New business projects
- Utilize sustainability due diligence checklists and environmental-social risk maps for each business to assess the impact of each new project.
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Existing business projects
- Mitsui & Co. (non-consolidated): Manage environmental and social risks based on the international environmental management standard ISO 14001.
- Consolidated subsidiaries: Identify high-priority subsidiaries based on their industry and environmental impact, and require such subsidiaries to obtain ISO 14001 certification or operate on an equivalent standard.
Compliance with Environment-Related Laws and Regulations
- Implement measures to deepen understanding of compliance with environment-related laws and regulations and ensure thorough compliance.
Promoting Awareness Building
- Enhance awareness of environmental issues among employees and officers through periodic seminars and training on environmental-related laws and regulations.
Resource Conservation and Promotion of a Circular Economy
- Increase the waste recycling rate at Mitsui & Co. (non-consolidated) to over 90% by FY March 2030.
- Reduce paper consumption at the Head Office and branches and offices in Japan, of Mitsui & Co. (non-consolidated) by 50% or more (compared to FY March 2020) by FY March 2030.
Initiatives
Detailed Analysis of Nature-related Dependencies, Impacts, Risks, and Opportunities for 3 Selected Businesses
- Evaluate
- Assess
- Prepare
Among the 10 important nature-related businesses, we selected 3 businesses based on the assessment of priority areas-and assessed key dependencies, impacts, risks, and opportunities with reference to the TNFD's LEAP approach.
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Development and Mining of Mineral and Metal Resources/Desalination
As a result of conducting a survey focusing on the TNFD sector guidance and environmental impact assessment reports for the subject projects, the particularly significant dependencies and impacts on nature, as well as the risks and opportunities, are listed in the table below
Dependencies
Please scroll horizontally to look at table below.
| Project phase | Ecosystem services | Category | Details of dependencies |
|---|---|---|---|
| Mine and related facility construction to operation | Regulating & maintenance services | Global climate regulation, soil and sediment retention | Climate-related hazard mitigation in construction, development, and operations, including wind, flood, and sediment disasters |
| Mine operation | Provisioning services | Water Supply | Mining and development, use of water supply in mining and development, extraction and processing of minerals |
| Desalination plant operation | Regulating & maintenance services | Cleanup of contamination | Diffusion/purification of environmental impact substances and concentrated seawater through atmospheric and water circulation |
Impacts
Please scroll horizontally to look at table below.
|
Project phase |
Impact Driver |
Direction of impact*1 |
Impact |
|---|---|---|---|
| Mine and related facility construction to site rehabilitation | Land use |
|
Impacts on habitats, species, and cultural services such as historic sites due to land alteration and occupation during development, construction, and operation of mine and related facilities, soil degradation due to excavation, etc.*2 |
|
|
Natural recovery through rehabilitation, replanting, etc. | ||
| Mine operation | Water use |
|
Water supply use in mining and development, mineral extraction and processing |
| Pollution |
|
Environmental impact from the use of heavy equipment for hauling, mining, etc. associated with the operation, as well as impacts on species and local communities from wastewater discharges | |
| Desalination plant operation | Water use |
|
Reduction of freshwater resources, mitigation of water supply use |
*1 Positive impact on nature is indicated as 
and negative impact is indicated as
*2 Prior to development, it is necessary to obtain approval from environmental authorities, ensuring that measures to minimize impact and protect archaeological sites are fully addressed and approved. The project is carried out while maintaining dialogue with authorities, etc.
Risk and Opportunities
|
Categories of risks and opportunities |
Risks and opportunities |
|
|---|---|---|
| Physical risk | Acute and chronic | Impact of reduced water supply on operations (mining) Impact of wind, flood, and sediment disasters on construction and operations (mining and desalination) |
| Transition risk | Reputation & liability | Damage, etc. due to emissions of environmentally impactful substances (mining) Criticisms of adverse impacts on flora and fauna, landscape, cultural services, etc., including land modification associated with development and operations, emissions of environmentally impactful substances into the atmosphere, and consumption of water supplies (mining) |
| Policy & markets | Increased cost of using water supply due to stricter regulations (mining) | |
| Opportunity | Products & services Markets |
Mitigation of the impact of the project on water supply, vegetation, animals, etc., and expansion of the project (possible expansion of business opportunities in response to water withdrawal restrictions in the mining industry, agricultural business, etc.) (desalination) |
Based on the analysis of dependencies and impacts, we compiled a list of nature-related risks and opportunities and organized them in accordance with the categories presented by the TNFD. The table above shows part of this assessment, which revealed that impacts on water resources from mine development and operations, as well as impacts on ecosystems from land conversion and use, are particularly significant. On the other hand, our desalination projects contribute to mitigating negative impacts on water resources. Through these projects, we are helping to reduce water-related impacts in our copper mining businesses.
We are further advancing our initiatives by evaluating these results alongside nature-related indicators proposed by the TNFD, and applying them in our engagement with investees. In addition, we engage in projects that help to reduce specific negative impacts, such as desalination projects, positioning them as opportunities for natural capital. In doing so, we remain mindful of other potential environmental and social impacts.
Crop Protection and Agri-inputs
With regard to the agricultural production value chain, we reviewed relevant literature, including the TNFD sector guidance, SASB Standards, and GRI Standards, to identify key dependencies, impacts, risks, and opportunities. Because the heat map analysis results showed that the agricultural production value chain is highly dependent on various ecosystem services, we focused on the crop protection and agri-inputs business, which has the potential to mitigate negative effects on nature and create positive impacts, with the aim of identifying business opportunities. Furthermore, through mapping the nature-related impacts of each solution provided through our crop protection and agri-inputs business, the key dependencies, impacts, risks, and opportunities are summarized in the table below.
Dependencies
Please scroll horizontally to look at table below.
|
Business |
Ecosystem services |
Category |
Details of dependencies |
|---|---|---|---|
| Agricultural production (Conventional) | Provisioning services | Water supply | Use of water supplies such as surface water and groundwater |
| Regulating & maintenance services | Pollination | Pollination by insects | |
| Maintaining water quality/water flow regulation | Maintaining water cycle and maintaining water quality, including recharging water sources | ||
| Soil conditioning | Microbial adjustment of soil quality | ||
| Global climate regulation/flood and windstorm mitigation/Soil and sediment retention | Maintaining a stable climate and environment suitable for production and disaster mitigation | ||
| Pest control | Control of crop diseases and pests |
Impacts
Please scroll horizontally to look at table below.
|
Business |
Impact driver |
Direction of impact* |
Impact |
|---|---|---|---|
| Agricultural production (Conventional) |
Land use | |
Terrestrial ecosystems use and adverse effects due to land clearing, land use for agricultural production and related activities, soil compaction, etc., conversion of natural ecosystems and habitat change |
| Water use | |
Use of groundwater and surface water for production and irrigation | |
| Climate change | |
GHG emissions from agricultural land conversion, plowing and cultivation, fertilizers, agrochemicals, etc. | |
| Pollution | |
Effects on air, soil, and water quality due to excessive use of agrochemicals and fertilizers |
| Business | Impact driver | Direction of impact* | Impact | Related Mitsui solutions and businesses |
|---|---|---|---|---|
| Crop protection and agri-inputs | Land use Climate change |
|
Reduced land use through increased productivity Reduction of GHG emissions from farmland conversion, tillage and cultivation |
Agri-inputs materials business (crop protection, fertilizers, vegetable seed, biostimulants, biological crop protection, drip irrigation, plant factories, regenerative agriculture, etc.) |
| Water use | |
Reduce water supply needs and dependency on water resources by providing new solutions | Vegetable seed business, biostimulants, drip irrigation, plant factories, regenerative agriculture | |
| Pollution | |
Promoting proper use of fertilizers and crop protection through farming advice, deploying less toxic crop protection, and providing solutions, such as biostimulants and plant factories to reduce impacts on air, soil, and water quality. | Agri-inputs business | |
|
Effects on air, soil, and water quality associated with excessive use of chemical crop protection and fertilizers | Fertilizers, crop protection |
* The evaluation is based on a baseline of natural conditions in agricultural production (conventional), with when negative impacts are mitigated or positive impacts are created, and when negative impacts are further increased.
Considering business location, we evaluated which countries have particularly high negative impacts based on the global distribution of production areas by crop and data on the degree of water stress and excess nutrients. In countries with high negative impacts, Mitsui's crop protection and agri-inputs business has strong potential to help reduce negative impacts and increase positive ones. This can be considered an important factor that must be taken into account when formulating business strategies, and we will use it as an analysis method when considering business opportunities that feature natural capital as a component.
Risks and Opportunities
By evaluating our dependency and impact, we were able to clarify the dependency and effects of our crop protection and agri-inputs business on nature. In particular, in terms of impact we identified various positive contributions such as reductions in water supply requirements and GHG emissions through agricultural land conversion, including carbon sequestration in soils. These types of projects are also considered opportunities that fall under natural capital. Thus, we indicated that initiatives which reduce negative impacts and enhance positive ones have the potential to meet growing demand and expand business opportunities, driven by changes in policy and market conditions.
Based on these studies, we have identified two types of natural capital opportunities: reducing negative impacts on nature and creating positive effects on nature in the value chains of businesses, and have confirmed that such opportunities are expanding as potentially viable markets. As specific business examples, we are promoting controlled environment agriculture (CEA) businesses, regenerative agriculture projects, and solutions businesses such as biostimulants and biological crop protections products. These all help to cut dependency and impact on water supplies and ecosystems. In this way, we will continue to promote businesses that reduce negative effects on nature or create positive impacts, thereby improving the quality of our business portfolio in terms of natural capital.
Column: Contribution to the 30by30* Target (Nationally Certified Sustainably Managed Natural Sites)
What Are "Nationally Certified Sustainably Managed Natural Sites"
Nationally Certified Sustainably Managed Natural Sites are areas outside protected areas such as national parks that are certified by the Japanese government as contributing to biodiversity conservation through private-sector initiatives and other voluntary efforts. Certified areas are registered in an international database as OECMs*1, excluding portions that overlap with existing protected areas, and contribute to the achievement of the 30by30 target*2.
- Mitsui's Forests
As of March 2026, five forest properties within Mitsui & Co.'s Forests—the Soya Forest and Ishii Forest (both in Hokkaido), the Kaname Forest (Yamagata Prefecture), the Tashiro Forest (Fukushima Prefecture), and the Kiyotaki Forest (Kyoto Prefecture)—have been certified as Nationally Certified Sustainably Managed Natural Sites.
These forests each possess distinct natural environments and regional characteristics and were recognized for meeting a broad range of the nine value criteria for certification, including biodiversity, ecosystem services, rare species, cultural value, and ecological connectivity with existing protected areas. The certification also confirmed that Mitsui & Co.'s Forests constitute a diverse and unique natural capital asset.
- Yatsuda Restoration Project
Since 2007, Mitsui & Co. has collaborated with the nonprofit organization Asaza Fund on the Yatsuda Restoration Project, an initiative to restore a degraded yatsuda (traditional valley paddy field) area in Ushiku City, Ibaraki Prefecture through activities such as pesticide-free rice cultivation. More than 3,700 Mitsui & Co. employees and their family members have participated in the project to date, providing opportunities to experience firsthand the importance of natural cycles. In recognition of its long-standing efforts to restore satoyama landscapes and conserve biodiversity, the project was certified as a Nationally Certified Sustainably Managed Natural Site in fiscal 2024 (the fiscal year ended March 2025). Beginning in 2025, as part of activities under the Nationally Certified Sustainably Managed Natural Sites initiative, biodiversity monitoring experiences will be incorporated into employee participation programs. By continuously observing and recording changes in biodiversity and the recovery of the natural environment, participants themselves will help visualize and track the progress of the project's nature restoration efforts.
＊1 (Other Effective area-based Conservation Measures): /Areas that are not designated protected areas, such as national parks, but are nevertheless recognized as effectively conserving biodiversity.
＊2 30by30 Target: An international biodiversity-related target that aims to conserve and protect 30% of the world's terrestrial and marine areas by 2030. It is one of the key elements of the Kunming-Montreal Global Biodiversity Framework, adopted in December 2022.
Initiatives Related to Biodiversity
Initiatives in the Forest Resource Business
Together with business partners, Mitsui is engaged in the forestry business in Australia and Chile (approximately 14,000 hectares in total as of March 31, 2026) with the aim of ensuring the stable supply of wood chips, the raw material for paper. The business manages forestry resources responsibly, including carrying out measures in consideration of biodiversity protection, and has acquired international forest certification from organizations such as FSC®. In addition, in our forestry business, we are promoting the generation of emission credits through the conversion to tree species that are expected to increase the GHG (greenhouse gas) reduction effect.
We have invested in New Forests Pty Ltd., one of the world's largest forestry asset management companies, with AUD 12.1 billion (as of June 2025) in natural capital (forestry and agriculture) assets under management. New Forests' vision is to provide long-term and stable investment returns to investors and realize a sustainable future by investing and managing natural capital resources in harmony with the circular economy and local communities. We will work with New Forests to expand our efforts towards the sustainable development of society.
Initiatives to Generate and Sell Emissions Credits Through Regeneration of Vegetation in Native Forests
We have invested in Climate Friendly Pty Ltd., a leading nature-based carbon credit developer in Australia. The company operates "carbon farming" businesses that remove and sequester GHG from the atmosphere through a range of approaches, including vegetation regeneration on farms, afforestation, and soil carbon sequestration in agricultural and pastoral lands. By collaborating with local farmers and landowners to generate and sell high-quality carbon credits, the company contributes to the achievement of national and corporate GHG reduction targets In addition to GHG reductions, these activities also deliver co-benefits to the natural environment, such as biodiversity restoration and improvements in soil health. Through our partnership with Climate Friendly, we will promote nature-based climate solutions and contribute to the conservation of local ecosystems and the realization of a global decarbonized society.
Generation and Sale of Forest Management J-Credits through Proper Forest Management
Mitsui has been working on the generation and sale of J-Credits (Forestry-based J-Credits) by conducting appropriate forest management in Japan as part of our efforts to address the issue of climate change by applying industrial solutions. Since 2019, we have lobbied for regulatory reforms to enable large-scale J-Credit creation using aerial survey data and satellite data, and have commenced commercialization activities by using our company-owned forests across Japan. Currently, we are promoting joint creation projects with several forestry corporations and local governments. We have started making sales since obtaining credit certification and issuance in 2023. We provide these J-Credits as a way for GHG-emitting companies to meet their offset needs for emissions that cannot be reduced through their own GHG reduction efforts, such as energy-saving devices and the adoption of renewable energy sources, to achieve their carbon-neutrality targets. Moreover, by utilizing the revenue from these J-Credits to manage forests appropriately, we aim to enhance the multifaceted value of regional forestry resources, solve forest management challenges through revitalizing the forestry management business, and help to rebuild local economies. We will continue to actively engage in the creation and sale of credits moving forward.
Contributing to the Development of High-Productivity, Sustainable Agriculture through Environmentally-Friendly Biological Crop Protection
At our consolidated subsidiary Certis USA (now Certis Biologicals, hereinafter "Certis Bio") we manufacture and sell biological crop protection. Biological crop protection utilizes the abilities of microorganisms, natural enemies, parasites, plant extracts, and other properties to combat insect pests and weeds, transforming them into agents that are effective and easy to apply. They can be used to create an environment in which insect pests and weeds find it difficult to thrive, and restrict their growth so they do not cause economically significant damage.
In an age where environmental pollution, food safety, and social acceptance have become such major societal issues, regulations on chemical crop protection have been tightened due to their potential impact on the human body and on ecosystems. This has spawned significant demand for safer agricultural methods. Although Certis Bio produces biological crop protection, we do not believe that chemical crop protection should be reduced to zero. Instead, biological pesticides make it possible to prevent pest infestations while also reducing the harm to humans and domestic animals, the environment, and biodiversity. However, they do have disadvantages: they have relatively limited residual efficacy, and it can be difficult to decide the best time to apply them. Chemical crop protection can compensate for these deficiencies because they are often quick-acting and easier to use. On the other hand, excessive use of chemical crop protection can reduce the biodiversity of the microorganisms in the soil, creating an environment that is more conducive to the growth of pathogenic bacteria and insect pests. Therefore, it is important to recognize Integrated Pest Management (IPM), which is the skillful use of both biological and chemical crop protection. By promoting IPM through our crop protection business, we contribute to the development of a highly productive and sustainable agricultural system.
Advancing Sustainable Palm Oil Sourcing through a Landscape Approach
We have been conducting a feasibility study on a landscape approach in a designated area of Sabah, Malaysia, with the aim of ensuring a stable supply of sustainable palm oil.
A landscape approach goes beyond the management of individual plantations by bringing together multiple stakeholders to balance environmental, social, and economic objectives across a defined geographic area that encompasses both the natural environment and local communities.
At the core of this initiative is our collaboration with Wild Asia on supply chain initiatives, including the introduction of regenerative agricultural practices and technologies to reduce environmental impacts at the palm oil mill level, support for smallholder farmers, and enhanced traceability. Building on these efforts, the initiative designates the harvesting area and its surrounding natural environment and local communities as a single landscape, and seeks to work with local governments, relevant organizations, and NGOs to promote sustainable agriculture across the production region, improve the livelihoods of producers, including smallholder farmers, and advance the conservation of the natural environment.
This initiative complements conventional plantation-level approaches, such as certification schemes, by seeking to improve sustainability across the production landscape as a whole. Going forward, we will continue to assess the feasibility and effectiveness of this approach through dialogue with local partners while deepening collaboration with government agencies and business partners in Japan to develop a sustainable supply chain model that integrates climate change, natural capital, and business and human rights considerations.
Operational and Management Initiatives for Mitsui's Forests
Mitsui & Co. and Mitsui Bussan Forest Co. have obtained internationally recognized forest certification.
Forest certification consists of Forest Management (FM) certification, which verifies through third-party assessment that forests are appropriately managed, and Chain of Custody (CoC) certification, which verifies that timber produced from certified forests is properly managed and traceable throughout the distribution process until it becomes a finished product.
Mitsui & Co. holds FM certification, while Mitsui Bussan Forest holds CoC certification. Mitsui Bussan Forest, which manages Mitsui's Forests, develops and implements management plans based on international standards and is engaged in sustainable forest management. In addition, logs and other forest products harvested from these forests are also handled by Mitsui Bussan Forest, a CoC-certified company, thereby maintaining the chain of forest certification throughout the supply chain. Mitsui Bussan Forest uses a unique "zoning" management method in which areas are divided into categories based on various characteristics, such as topography and tree species, and then managed according to these categories. Categories include "Harvest-oriented Sustainable Forests," "Naturally Regenerated Forests," and "Biodiversity Conservation Forests"; each type of forest is managed appropriately based on a management policy for each category. "Biodiversity Conservation Forests" in particular have been identified as forests with high biodiversity value, so they are divided into the four categories of "Special Conservation Forests," "Water and Soil Conservation Forests," "Environmental Conservation Forests," and "Cultural Conservation Forests." Management and forestry operations are carried out in a way that fully takes their biodiversity into account.
Initiatives Related to Water Resources
Initiatives in the Hydroelectric Generation Business
The Madeira River is a tributary of the Amazon River and forms part of the Amazon Basin, a region known for its rich biodiversity. Located on the Madeira River in northern Brazil, the Jirau Hydroelectric Power Plant has been closely watched by many parties, including local communities and NGOs, because of its location, and every possible step is being taken to ensure the plant is operated in an environmentally responsible way. As part of an environmental program, we conducted preliminary surveys to identify every possible impact that could affect the local environment and local communities. We then built hospitals, schools, and new housing to improve the local living environment. Other initiatives include measures to protect flora and fauna, such as fish and mammals. These initiatives are implemented through a total of 28 social and environmental programs covering both environmental and social aspects. These comprehensive efforts have been internationally recognized, with the project obtaining the Hydropower Sustainability Standard Gold certification from the International Hydropower Association (IHA), making it the first project in Latin America and the second in the world to achieve this certification.
Initiatives in Land-based Aquaculture for Salmon
The amount of salmonids being consumed globally is growing year on year, making it one of the three biggest global markets for sea-surface farmed fish. However, there has been less room for sea-surface farming to expand due to the water pollution issues caused by leftover feed and excrement. As such, our consolidated subsidiary FRD Japan Co., Ltd., which owns advanced biofiltration technologies, has developed a proprietary land-based aquaculture system that cultivates trout in a closed water cycle without drawing in seawater from outside. The aim is to create sustainable land-based aquaculture of salmon trout while minimizing the impact on marine environments. We began operating a pilot plant in Kisarazu City, Chiba Prefecture in 2018, selling farmed salmon trout under the brand name "Okasodachi." Also, we started building a commercial plant that will produce approximately 3,500 tons per year in 2023. Through this business, we will work to minimize ocean pollution and contribute to the production and supply of sustainable marine products.
Initiatives in our Chilean Salmon Business
At Multi X S. A., a Chilean salmon farming, processing, and sales company that is an equity accounted investee of Mitsui we take biodiversity into account by periodically checking cage conditions to prevent damage to local marine ecosystems caused by fish escaping through damaged marine aquaculture nets. As a result, there has not been a single escape in the last few years. We have also installed double-nets to protect the fish and the facility from potential sea lion attacks and prevent any runaway or escape. Furthermore, we feed the fish in a way that fully considers local ecosystems, by introducing a remote-controlled automatic feeding system. This system monitors feeding from below the sea surface using cameras to ensure optimal amounts of feed. We also strive to minimize feed waste that is lost or accumulates on the seabed.
Initiatives in our Shipping Business
To prevent negative effects on the ecosystem caused by transboundary movement of marine creatures in ballast water, which is necessary for cargo transport by ships, we actively promote the adoption of ballast water treatment equipment on vessels in response to the International Maritime Organization's (IMO) Ballast Water Management Convention.
Initiatives in our Solar Marine Salt Production and Sales Business
Shark Bay Salt Pty. Ltd., a Mitsui consolidated subsidiary, owns a solar marine salt field in Shark Bay, Western Australia. It produces and sells some of the world's purest salt while actively working to improve the local ecosystems of Shark Bay, an internationally renowned World Heritage site. With a dedication to maintaining harmony with nature, the company continuously monitors the terrestrial environment and the mangrove ecosystem of both the salt field and the surrounding maritime environment. This is to ensure its operations have no impact on the local ecosystem of the dugong – a species considered highly vulnerable to extinction – and other marine fauna unique to the region. As a result of these efforts, the stability of local wildlife populations has improved. Shark Bay Salt also supports ongoing research activities on dolphins and their ecosystem in the Shark Bay region.
Water Withdrawal in Water-Stressed Regions
Of the 189 nations included in the ranking of countries identified as having high risk levels in relation to water-stressed regions (as identified via Aqueduct, a global water risk map developed by the World Resources Institute (WRI)), we have identified 48 countries with water stress levels classified as either very high-risk (25 countries) or high-risk (23 countries). The following table shows the results of water-drawing surveys conducted at our business sites in Mexico, Chile, Portugal, Italy, Belgium, Oman, India, Thailand and Peru for the fiscal year ended March 31, 2026.
Note 1 In some cases, data was obtained directly from project sites, while in other cases, it was only attainable via the head office (parent company/SPC) of the company or companies involved in the project.
Note 2 Scope of data collection: consolidated subsidiaries and unincorporated joint ventures.
Please scroll horizontally to look at table below.
|
|
|
FY March 2026 |
|---|---|---|
| High risk (40-80%) | Locations |
16 |
| Volume of water withdrawn (thousand m3) |
236,495 |
|
| Very high risk (>80%) | Locations |
9 |
| Volume of water withdrawn (thousand m3) |
896 |
Initiatives in Water-Stressed Regions
Water Desalination and Pumping Business for Copper Mines in Chile
Chile accounts for approximately 30% of the world's copper production. The country's copper mining operations use large amounts of water, especially in the north of Chile, where there is a high concentration of mines. Water stress is high in this region as a whole, with growing concerns about resource shortages. Through Caitan, our 50-50 joint venture with Dragados under Spain's ACS Group, Mitsui has invested in a seawater desalination and pumping service operation for Spence Mine developer Minera Spence, a 100% subsidiary of major mineral resources company BHP. Caitan built, owns, and operates a water desalination plant and a 150-km water pumping facility in the province of Antofagasta (northern Chile) to supply fresh water to Minera Spence over a 20-year period, starting in 2023. Demand for seawater desalination in northern Chile is expected to grow at an annual rate of more than five percent. We will contribute to Chile's development by tapping into the country's rapidly growing demand for water infrastructure and further developing related infrastructure, while addressing the problem of water shortages through our business.
Water Supply and Sewage Infrastructure Business
(As of March 31, 2026)
Please scroll horizontally to look at table below.
|
Business |
Country |
Unit |
Processing Capacity (Total Capacity) |
|---|---|---|---|
| Water Supply | Thailand |
thousand m3/day |
1,028 |
| Water Supply | Mexico |
thousand m3/day |
130 |
| Sewage Treatment | Mexico (4 sites) |
thousand m3/day |
4,284 |
| Desalination and Pumping for copper mines | Chile |
thousand m3/day |
90 |
Efforts to Reduce Water Consumption and Improve the Efficiency of Use
Efforts to Protect Water Resources During Shale Gas and Shale Oil Extraction
Through consolidated subsidiaries, Mitsui is involved in the development and production of shale gas and shale oil. The oil and gas are extracted using hydraulic fracturing (fracking), and Mitsui E&P USA gives due care to water resources by ensuring that water for hydraulic fracturing (fracking water) is properly used (including the recycling of wastewater where applicable), managed, and discharged.
Efforts to Improve Water Usage Rates in the Copper Business
We are engaged in copper mining business in Chile. The country is a high-risk region in terms of water stress levels, and because the operations require a large amount of water, we are promoting the introduction of technologies to maximize the efficiency of water use in the operations of each mine and are working to reduce the amount of new water withdrawal.
At the Los Bronces copper mine (located in Capital Province, central Chile), in collaboration with Anglo American Plc, Codelco, and Mitsubishi Corporation, we reached a water reuse rate of 91% in 2025, mainly due to efforts to extract and reuse water from tailings. Furthermore, from 2026, desalinated seawater equivalent to 500 liters per second, representing approximately 45% of the mine’s water consumption, is scheduled to be supplied to the mine. In addition, 25 liters per second of treated water will be provided to approximately 10,000 residents in neighboring communities. We are also considering further measures, including expanding the use of desalinated seawater, and utilizing industrial effluent and treated sewage water procured from third parties. At the Collahuasi copper mine (located in Tarapaca Province, northern Chile), the second largest copper mine in the world by production volume and operated in partnership with Anglo American and Glencore as partners, the water reuse rate reached 79% in 2025. Going forward, in addition to improving the water reuse rate from the tailings, Collahuasi plans to commence operation of a seawater desalination plant operate from 2026. We will continue to contribute to Chile's development through our business, together with our partners, while striving to conserve its water resources.
Please scroll horizontally to look at table below.
|
2023 |
2024 |
2025 |
||
|---|---|---|---|---|
| Los Bronces Copper Mine* | Water reuse rate (%) |
90% |
92% |
91% |
| Collahuasi Copper Mine | Water reuse rate (%) |
79% |
81% |
79% |
*For Los Bronces Copper Mine, the figures include tailings water procured from third parties, and treated sewage, etc. (Recycle + Reuse).
Water Withdrawals in Projects
Please scroll horizontally to look at table below.
|
Scope |
Unit |
2023 |
2024 |
2025 |
|
|---|---|---|---|---|---|
| Los Bronces Copper Mine | Water withdrawal per ton of ore processed at the copper concentrate processing plant |
m3/t |
0.58 |
0.58 |
0.66 |
| Collahuasi Copper Mine | Water withdrawal per ton of ore processed at the copper concentrate processing plant |
m3/t |
0.45 |
0.44 |
0.50 |
Water withdrawal intensity in sugar manufacturing
KASET PHOL SUGAR
Please scroll horizontally to look at table below.
|
Unit(annual average) |
FY March 2024 |
FY March 2025 |
FY March 2026 |
|
|---|---|---|---|---|
| Per ton of sugar produced (annual average) |
m3/t |
5.4 |
6.0 |
6.9 |
Water Consumption Per Unit of Livestock Processing
Prifoods Co., LTD.
Please scroll horizontally to look at table below.
|
|
Unit(annual average) |
FY March 2024 |
FY March 2025 |
FY March 2026 |
|---|---|---|---|---|
| Per ton of chicken meat processed (annual average) |
m3/t |
13.7 |
14.0 |
13.4 |
Efforts to Reduce Water Consumption and Recycle Effluents - Improving Water Efficiency at Offices
At the Tokyo Head Office, we use 100%-recycled drainage water for toilet flushing to promote reduction in water consumption. In addition, we have set the target of improving water use efficiency by reducing the amount of water used at the Head Office and branches and offices in Japan (non-consolidated) to less than the amount used in the previous fiscal year.
Progress against targets
Please scroll horizontally to look at table below.
|
Target |
Scope |
Unit |
FY March |
FY March |
FY March |
Achievement status/initiatives |
|
|---|---|---|---|---|---|---|---|
| Reduce water withdrawal at Mitsui & Co. (non-consolidated) to less than the amount used in the previous year Target values FY March 2024 ≦70,000 m3 FY March 2025 ≦77,000 m3 FY March 2026 ≦83,000 m3 |
Water withdrawal | Mitsui & Co. (non-consolidated) |
thousand m3 |
77 |
83 |
84 |
A year-on-year increase due to increased office attendance. Through regular seminars and training on environmental laws and regulations, we strive to raise awareness of environmental issues among executives and employees. |
Compliance with Environmental Laws and Regulations Related to Water Resources
In the FY March 2026, there were no environmental accidents at Mitsui or its consolidated subsidiaries.
Initiative Related to Pollution Prevention
Saving Resources and Promoting Resource Circulation
- Increase the waste recycling rate at Mitsui & Co. (non-consolidated) to over 90% by FY March 2030.
- Reduce paper consumption intensity at the Head Office and branches and offices in Japan, of Mitsui & Co. (non-consolidated) by 50% or more (compared to FY March 2020) by FY March 2030.
Please scroll horizontally to look at table below.
|
Target |
Scope |
Unit |
FY March |
FY March |
FY March |
|
|---|---|---|---|---|---|---|
| Increase the waste recycling rate to over more than 90% by FY March 2030. | Waste recycling rate | Mitsui & Co. (non-consolidated) |
% |
91.2 |
91.4 |
90.8 |
| Reduce the paper consumption intensity by 50% or more compared to FY March 2020 by FY March 2030. FY March 2020: 7.18 Target: 3.59 |
Paper consumption intensity | Paper consumption at the Head Office and branches and offices in Japan, of Mitsui & Co. (non-consolidated) per employee |
thousand sheets (A4 size equivalent)/employee |
2.63 |
2.08 |
1.77 |
Prevention and Reduction of Air Pollution
- Mitsui & Co. Plastics, one of our consolidated subsidiaries, is a distributor for AdBlue®. This product breaks down the nitrogen oxides (NOx) contained in exhaust gases from trucks and buses, then converts them into harmless water and nitrogen. The company is building and expanding its nationwide network of logistics locations and infrastructure, to help detoxify exhaust gas.
- In the ship trading and ownership business, we are working to reduce air pollution by promoting the replacement of ships, including increasing orders for vessels with low-carbon fuels that contribute to the energy transition.
Prevention and Reduction of Water Pollution
At iron ore, copper, and metallurgical coal mines in which we have invested, we ensure proper treatment of water used in mining, monitor and manage water quality in mining and surrounding areas, and minimize water discharge by maximizing water recycling.
Initiatives in our Chemicals Business
Chemical Safety Management in our Chemicals Business
In our Chemicals Segment, we position chemical substance management as an important aspect of trade compliance alongside security trade control. The aim is to guard human health and safety, and to protect the global environment, specifically water, soil, air, and the ecosystems that support fauna and flora. While taking into consideration the laws and regulations governing adjacent areas of business such as pharmaceuticals and food products, we will update the information we have about chemical substance management laws and regulations so that we can keep abreast of increasingly tightening Japanese and international regulatory trends. Regarding each Business Unit's projects, we consider their impact on the environment in advance, including measures to control toxic emissions, and take sufficient steps before proceeding with new business.
Voluntary Efforts to Comply with Regulations Related to Chemical Substance Management and Safety Management of Chemical Substances
Chemicals can be dangerous or hazardous to the human body and the environment. In our Chemicals Segment, we comply with the following specific laws and regulations: the Act on the Evaluation of Chemical Substances and Regulations of Their Manufacture, etc. (CSCL); the Industrial Safety and Health Act; the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof (laws concerning Pollutant Release and Transfer Register/PRTR); the Poisonous and Deleterious Substances Control Act; and the Fire Service Act. We also comply with a wide range of environmental management systems.
We comprehensively identify all chemicals used by using the Globally Harmonized System (GHS) of Classification and Labeling of Chemicals.
We evaluate all raw materials from suppliers to understand if they need to be registered with government bodies, such as the Environmental Protection Agency (EPA) in the United States, and the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) program in the European Union, and take necessary actions to ensure such registrations.
We have disclosed all registrations and uses related to laws and regulations. We have prepared management and operational procedure manuals as part of our in-house regulations. Based on the provisions of each law and regulation, we inform our supply chain of chemical hazard information by providing safety data sheets (SDS) for all chemical products we distribute, and display this information on labels to ensure that people are properly notified.
In addition, in our Chemicals Segment, we have obtained certifications related to quality and safety management (e.g., ISO 9001) at all of our production sites in consolidated subsidiaries.
Scope of Chemicals that We Plan to Gradually Phase Out
In our chemicals business, we have phased out all chemicals that are subject to phase out, ahead of regulatory requirements, and no longer handle any "substances that need to be phased out". We are contributing to the creation of codes of conduct for the chemical industry regarding the handling of chemical substances that need to be phased out. One specific example of this was our involvement in prior consultations on the revision of the 2018 amended Ozone Layer Protection Law (amendment to the quantity allocation aimed at the reduction of manufacturing and amount of import of HFC substitutes) with the Fluoride Gases Management Office, Chemical Management Policy Division, Manufacturing Industries Bureau of the Ministry of Economy, Trade and Industry (which has jurisdiction over this Law) in the Trade Control Committee (comprising companies with large import and export transaction values for chemical products) of the Japan Chemical Exporters and Importers Association with which we cooperate.
Substitutes with Chemicals for Substances of Concern
There are no specific records of introducing substitutes for substances of concern by Mitsui or its consolidated subsidiaries.
Conducting Internal Training to Ensure Compliance in the Chemicals Business
Evaluation of the hazards and toxicity of chemical substances is a social responsibility of all businesses that handle chemical substances, including Mitsui & Co. All products and raw materials that we handle are subject to such evaluations. We continue to recognize that the responsibility of a non-manufacturing importer of chemicals distributed in the Japanese market is exactly the same as that of a chemical manufacturer.
All consolidated and non-consolidated subsidiaries handling chemicals are provided with regular training on laws and regulations related to the management of chemical substances, and on the Waste Management and Public Cleansing Law to ensure appropriate waste management practices. Through bimonthly training sessions, we explain the importance of proper chemical substance management by emphasizing the need, as a chemical importer, to appropriately communicate hazard and toxicity information throughout the supply chain. Many people voluntarily participate in each session in our endeavor to communicate the importance of proper chemical substance management. By holding frequent in-house training sessions on the laws affecting the chemicals business and on other topics, we continue to promote awareness of evaluating the hazards and toxicity of chemical substances, as well as appropriate labeling and display of information on such substances.
Management System for Responding to Emergencies and Accidents
There were no reports of any significant violations of environmental laws and regulations, or any fines or sanctions imposed during the fiscal year ending March 2026.
Training Seminars on Environmental Laws and Regulations
As we work to accelerate environmental initiatives across the Group globally, raising the environmental awareness of each of our officers and employees of Mitsui, its subsidiaries, and its affiliated companies at all levels is vital. We use initiatives such as holding regular seminars and training sessions on environmental law to do so.
Lectures and Training Seminars Held in FY March 2026
|
Title |
Number of Participants |
Target Participants |
|---|---|---|
| Training Seminars on Environmental Laws and Regulations |
Approx. 71 |
Officers and employees of Mitsui |
| Sustainability Management e-Learning: Practical Course "Environmental Management" |
711 |
Officers and employees of Mitsui |
| Training on business laws and specific environmental issues: Laws Affecting Chemicals Businesses/Waste Management and Public Cleansing Act (7 times) |
Approx. 1400 |
Officers and employees of Mitsui and affiliated companies consolidated subsidiaries underin the Chemicals Segment |
Measures for the Waste Disposal Law
Mitsui operates in compliance with the Waste Management and Public Cleansing Law (also referred to as the "Waste Disposal Law" or "Waste Law"). To properly manage the disposal of industrial waste generated through logistics operations and general waste from business activities, we have formulated a workflow for handling industrial waste and general waste from business activities, and have prepared FAQ documents. Such tools and documents are used to increase internal awareness of how to select waste management subcontractors, issuing and managing manifests and proper waste disposal practices.
For other environment-related laws and regulations, please refer to the link below.
Collaborating with Stakeholders
Participation in Initiatives
We are promoting and expanding our efforts to prevent pollution and manage natural capital, including water resources, by joining various initiatives. Investment in each one is decided after checking whether it is consistent with our basic policy and initiatives for preventing pollution.
