Environment
Natural Capital
Policies and Basic Approach
Our business activities largely depend on natural capital, making the prevention and preservation of nature's loss one of our key issues. In line with the Kunming-Montreal Global Biodiversity Framework's goal to achieve Nature Positive* by 2030, our Midium-term Management Plan 2026 outlines our commitment.
*To halt and reverse the biodiversity loss by reducing our dependence on and impact on nature through our value chain and by restoring and regenerating ecosystems.
Specifically, we will identify and analyze our dependence on and impact on nature, integrate natural capital perspectives into our existing risk management processes in environmental and social aspects, and promote businesses that can reduce our reliance on and impact on nature, thereby enhancing the quality of our business portfolio.
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.
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 reforestation and the protection of endangered species by providing support through the Mitsui & Co. Environment Fund for activities and research linked to the conservation and use of ecoservices and procurement that enables ecosystems and humans to coexist.
- 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.
Sustainability Governance and Oversight
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, and matters discussed by the Sustainability Committee are regularly discussed and reported to the Executive Committee and the Board of Directors.
| Officer in Charge | Representative Director, Senior Executive Managing Officer, 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
- Effectiveness Evaluation of the Board of Directors 2024: (PDF 177KB)
- Skill Matrix for Board Members: Notice of the 105th Annual General Meeting of Shareholders (PDF 4.78MB)
Collaboration with Stakeholders
Participation in Initiatives
We are promoting and expanding our efforts to address natural capital.
TNFD Forum (Taskforce on Nature-related Financial Disclosure Forum)
The TNFD was launched in June 2021 by the United Nations (UNEPFI/UNDP) and other international NGOs. The TNFD requires companies to disclose both their impact and dependence on nature and the risks or opportunities arising from such dependence or impact according to a four-pillar framework similar to that of the TCFD, and is working to establish international standards for the disclosure of information on natural capital.
The TNFD Forum is positioned as a group of stakeholders who support the TNFD discussions.
Adopting TNFD disclosure recommendations
Mitsui has registered to TNFD recommendations as a "TNFD Adopter"* in March 2025. We will continue to disclose information in line with the recommendations.
*Companies and organizations that have adopted the disclosure information based on the TNFD recommendations.
For other details on working with stakeholders and stakeholder dialogue on natural capital, please refer to the following links.
Initiatives
Consideration of nature-related dependencies/impacts, LEAP approach
We regard natural capital as a key issue in our sustainability management, and based on the TNFD recommendations, to which we have adopted, we have been progressing with the analysis of the nature-related dependencies and impacts of our business with a view to integrating nature-related elements into our strategy, promoting initiatives, and disclosure information.
Scoping for LEAP analysis (understanding dependency and impact)
Referencing TNFD guidance and leveraging existing analytical tools (ENCORE*), we have comprehensively assessed and organized the nature-related dependencies and impacts of Mitsui's business activities in the form of a dependency heatmap and impact heatmap.
*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 dependence and impact of private companies.
Dependency Heat Map
Impact Heat Map
Based on the significance and substance of the dependency and impact organized in the heat map 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.
- Four businesses with significant nature-related dependencies: Agricultural production; afforestation, production of wood-related products; livestock and dairy farming; and aquaculture.
- Six businesses with significant nature-related impacts: Development and mining of metal resources; oil & gas exploration, development, extraction and production; ports and terminals; thermal power generation; petrochemical production; and production of machinery, automobiles, automobile components, etc.
Considering that locations in contact with nature are also an important factor in terms of nature-related risks and opportunities, for each of our business locations, we also analyzed the importance of ecosystem integrity*1 and biodiversity*2 and water stress (ratio of water consumption to water supply in a watershed), with reference to the criteria for priority areas in the TNFD Guidance. We also conducted an analysis that took into account regional characteristics. As a result, we found that about 30% of all business sites have high water stress and about 10% of them are located within 500m of protected areas or important biodiversity areas. Three businesses were selected for the LEAP approach analysis recommended by TNFD, which involves the processes of Locate, Evaluate, Assess, and Prepare to identify and assess nature-related issues.
- Projects with high water stress factors: Copper mining and agricultural production projects (agrochemicals and agricultural materials business)
- Projects leading to alleviation of water stress: Desalination projects
*1 Ecosystem integrity in the area. The analysis made use of the "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 was minimal).
*2 The analysis made use of the "Protected Areas/KBAs" (evaluated based on protected areas and KBAs (Key Biodiversity Areas) within a 500m radius of each site) and "STARt (Species Threat Abatement and Restoration) Metric" (an indicator that quantifies the potential for species threat reduction actions in a given area to contribute to reducing species' global extinction risk. This metric is weighted according to the International Union for Conservation of Nature (IUCN) Red List and the sum of the percentages of the range of each species.).
Based on the results of this analysis, we have enhanced 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 have strengthened our risk assessment function by adding indicators obtained through the LEAP approach analysis to the list of assessment items to evaluate nature-related dependencies and impacts. Furthermore, to utilize this information in project formation and assessments, we have created a database of areas of high importance in terms of water risk (water stress, etc.) and biodiversity (relationship with protected areas, etc.), and have made a water and biodiversity risk map available internally for use in natural capital risk analysis. Going forward, we will also expand the evaluation of projects that provide opportunities to reduce nature-related dependence and impact.
Analysis of Individual Businesses
For the three identified businesses, an analysis was conducted with reference to the LEAP approach for the identification of significant dependencies/impacts and risks/opportunities.
Outline of the LEAP Approach
-
Locate
The interface with nature
- Span 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 dependence on and impacts on nature is important
- Understanding of the ecosystems involved and the locations of activities at our sites and in areas of the value chain where dependency/impact is important
- Evaluate ecologically sensitive areas and areas where dependency/impact is important
-
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
-
Assess
Risks & opportunities
- Risk and opportunity identification
- Adjustment of existing risk mitigation and risk and opportunity management
- Risk and opportunity measurement and prioritisation
- Risk and opportunity materiality assessment
- Identify and evaluate the significance of nature-related risks and opportunities based on the nature of the dependency/impact
- Identify high-priority risks and opportunities
- Examine processes for managing risks and opportunities
-
Prepare
To respond & report
- Strategy and resource allocation plans
- Target setting and performance management
- Reporting
- Presentation
- Consider what response strategies to take based on what you have evaluated
- Examine ways to set target
- Consider the content of information disclosure
Development and Mining of Metal Resources/Desalination
The following table shows the results of the Locate, Evaluate, Assess, and Prepare processes for the development and mining of metal resources that have been identified as projects with significant impact on nature.
Locate
Considering that locations in contact with nature are also an important factor in nature-related risks and opportunities, we have analyzed the critical (ecologically sensitive) areas for each of our metal resource development and mining operations, with reference to the criteria for priority locations in the TNFD Guidance.
The analysis identified the following key details
- Among the approximately 30% of sites with high water stress factors, in the development and mining of metal resources, the copper mine in Chile is located in an area of "Extremely high water stress."
Taking into account the significance of the impact on water resources in metal resource development and mining operations, we conducted an analysis to identify key dependencies, impacts, risks, and opportunities for two projects in Chile where water stress is a significant concern: the Chilean copper mining operations (Los Bronces Mine) and a desalination operation that supplies fresh water to copper mines in the same country.
Evaluate and Assess
We conducted a survey focusing on the TNFD sector guidance and environmental impact assessment reports for the subject projects to identify dependencies and impacts on nature and risks/opportunities. As a result, the significant dependencies/impacts and risks/opportunities are listed in the table below.
Dependencies
| Ecosystem Services | Category | Dependence |
|---|---|---|
| Provisioning services | Water supply | Mining and development, use of water supply in extraction and processing of minerals (mining) |
| Regulating & maintenance services | Cleanup of contamination | Diffusion/purification of environmental impact substances and concentrated seawater through atmospheric and water circulation (mining and desalination) |
| Global climate regulation, soil and sediment retention | Climate-related hazard mitigation in construction, development, and operations, including wind, flood, and sediment disasters (mining and desalination) |
Impacts
| Impact driver | Direction of impact* | Impact |
|---|---|---|
| Water use |  (Mining) (Desalination) |
Water supply use in mining and development, mineral extraction and processing Mitigation of water supply use |
| Land use | (Mining) |
Impacts on habitats, species, and cultural services such as historic sites due to land alteration and occupation during development, construction, and operation, soil degradation due to excavation, etc. (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.) |
| (Mining) |
Natural recovery through rehabilitation, replanting, etc. | |
| Pollution | (Mining) |
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 |
*Positive impact on nature is indicated as and negative impact is indicated as .
Risks and opportunities
| Major nature-related risks | Category | Risks and opportunities |
|---|---|---|
| Physical risk | Acute and chronic | Impact of reduced water supply on operations (mines). 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 (mines). 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 dependency and impact analysis, we have listed nature-related risks and opportunities and organized them according to the classifications presented by TNFD. The above is a partial list, but we found that the impacts on water supply in the development and operation of mines and the impacts on ecosystems, such as land modification and use, are significant. On the other hand, desalination projects mitigate negative impacts on water supply, and in the case of Chile, for example, policy changes in the mining industry (e.g., restrictions on groundwater use) may provide opportunities for further business expansion.
Prepare
We will further promote our efforts while organizing and evaluating the results of our analysis of copper mining projects in Chile and nature-related indicators provided by TNFD, and promote initiatives to enhance the resilience of our business and utilize them in our engagement with copper mining projects and other business investments. In addition, we will actively promote projects that contribute to the reduction of negative impacts, such as desalination projects, as they are positioned as opportunities for natural capital.
Agricultural production value chain
The following is a summary of the results of the Locate, Evaluate, Assess, and Prepare processes for the agricultural production value chain, identified as critical to the dependence of the business on nature.
Locate
While Mitsui's businesses are involved in various areas in the value chain of agricultural production, we selected the agricultural materials business because it is considered to be particularly important in terms of its contribution to mitigating negative impacts and creating positive impacts on nature through its businesses. Based on the LEAP approach, an analysis was conducted with the aim of connecting it to business opportunities. In considering business location, since dependence and impact on nature in the region is important, we evaluated which countries have particularly high negative impacts from agricultural production 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 agricultural materials business has a high potential to contribute to reducing negative impacts and increasing positive impacts, and can be considered as a method of analysis when considering businesses that use natural capital as an opportunity.
Evaluate and Assess
The dependencies/impacts and risks/opportunities were identified for the agricultural production value chain, which covers agricultural production as well as the agricultural materials business. As a result, important dependencies/impacts and risks/opportunities are summarized in the table below.
Dependencies
Please scroll horizontally to look at table below.
| Business | Ecosystem services | Category | Dependence |
|---|---|---|---|
| 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 |
|---|---|---|---|---|
| Agricultural production (Conventional) | Land use Climate change |
|
Reduced land use through increased productivity Reduction of GHG emissions from farmland conversion, tillage and cultivation |
Agricultural materials business (agrochemicals, fertilizers, vegetable seeds, biostimulants, biopesticides, drip irrigation, plant factories, regenerative agriculture, etc.) |
| Water use | |
Reduce water supply needs and dependence on water resources by providing new solutions | Vegetable seed business, biostimulants, drip irrigation, plant factories, regenerative agriculture | |
| Pollution | |
Promoting proper use of fertilizers and agrochemicals through faming advice, deploying less toxic agrochemicals, and providing solutions such as biostimulants and plant factories to reduce impacts on air, soil, and water quality. | Agricultural materials business | |
|
Effects on air, soil, and water quality associated with excessive use of agrochemicals and fertilizers | Chemical fertilizers, agrochemicals |
*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.
Risks and opportunities
In the evaluation of dependence and impact, we positioned the downstream of the agricultural materials business as the agricultural production business and organized its dependencies and impacts on nature. In particular, in terms of impact, there were various positive impacts such as reductions in water supply requirements and GHG emissions due to conversion of agricultural land. Projects that increase such positive impacts are also positioned as opportunities within natural capital. Thus, we confirmed that projects that reduce negative impacts and increase positive impacts on agricultural production have the potential to increase demand and expand opportunities due to changes in policy and market conditions.
Prepare
Based on these studies, we have identified two types of natural capital opportunities: reducing negative impacts on nature and creating positive impacts on nature in the value chain of businesses, and have confirmed that such opportunities are expanding as potentially viable markets. As specific business examples, we are promoting the following agricultural materials and solutions businesses that contribute to reducing dependence on and impact on water supply and ecosystems. In this way, we will continue to promote businesses that reduce negative impacts on nature or create positive impacts in the value chain of agricultural production.
Initiatives to reduce dependence on and impact on water supply: Plant Factory Business in the Middle East
In March 2022 we became involved in a controlled environment agriculture (CEA) business in the Middle East, a region which, amid a rise in consumption of fresh produce, faces challenges in increasing food self-sufficiency due to the harsh climate environment. Together with retailer Tamimi Markets of Saudi Arabia, and Zero SRL (“Zero”), an Italian CEA business operator, we are promoting the launch of a pilot project to verify the production and sales capabilities of facilities for growing crops in a controlled environment, in anticipation of future large-scale production. We invested in ZERO in April 2023. Through this investment we will develop our CEA business not only in the Middle East but also throughout the world.
CEA facilities can achieve about a 90% reduction in water use compared to open-field cultivation. They also generate 45% less CO2 emissions, and offer stable supplies of produce without being affected by the weather. Due to the close proximity from farm to shelf, food loss during transportation, and CO2 emissions (food mileage) from food transportation can both be reduced.
Due to growth in the world population, it is said that the area of cultivated land per person will decline by around 25%* by the year 2050, compared with 2005, and given the need for low-environmental-impact agricultural production, we will contribute to improving the local levels of food self-sufficiency, quality, and safety and security by enabling the local production and consumption of fresh vegetables and fruit through the CEA business.
*United Nations "World Population Prospects 2019 Edition"; Ministry of Agriculture, Forestry and Industry "World Food Supply and Demand Projections for 2050 (2019)"
Efforts to reduce dependence on and impact on ecosystems: Participation in regenerative agriculture projects
In October 2023, we invested in RRG Nature Based Solutions LLC ("RRG NBS"), a US-based company with an integrated global involvement in regenerative agricultural projects at all stages from project formation through to design and management.
In recent years, there has been an increasing focus on regenerative agriculture* as an approach that contributes to agricultural sustainability, productivity, and profitability by achieving better harmony with nature and regenerating the natural environment, through climate change countermeasures and the conservation of ecosystems and water resources. Of particular significance is the fact that major food and beverage manufacturers are starting to adopt policies calling for a shift to raw materials derived from regenerative agriculture, with the aim of reducing environmental impacts and ensuring reliable access to raw material in the future. Through this investment in RRG NBS, we will contribute to the stabilization of world food production and the conservation of natural capital by combining our accumulated knowledge of agricultural materials with new solutions leading to a transition to regenerative agriculture.
*Regenerative agriculture is an approach to agriculture that seeks to restore the natural environment, including the conservation of water resources and ecosystems, through soil remediation and improvement.