Our Approach to Sustainability and Management Framework
Policies and Basic Approach
Mitsui & Co.'s corporate mission as defined in its Mission, Vision, Values (MVV) is to realize a better tomorrow for earth and for people around the world and to "Build brighter futures, everywhere." Based on the MVV, we regard sustainability initiatives as important management issues, and, in accordance with the Mitsui & Co. Group Conduct Guidelines —With Integrity, this policy and sustainability-related policies, place a strong emphasis on sustainability in our corporate management. Our Group will take on the challenge of addressing global issues and contributing to the realization of a sustainable society and economic growth through our business activities.
Identification of Materiality and Promotion of Initiatives
For the sustainable growth of both society and the company, we identify important business issues that impact the company and its stakeholders as material issues ("Materiality"). We put this policy into practice by formulating our business policies and strategies, including medium-term management plans and business plans, based on our Materiality, given that each material issue may become a significant source of both risks and opportunities in the medium to long term.
Role of the Board of Directors
The Board of Directors appropriately supervises the Company's sustainability initiatives, striving to enhance the Company’s corporate value in the medium to long term. Decisions on important issues related to sustainability are subject to final approval by or report to the Board of Directors, following a review by the Sustainability Committee and Corporate Management Committee.
Stakeholder Engagement and Information Disclosure
We regard dialogue with stakeholders as highly important. We strive to implement appropriate disclosure of information and respond sincerely and faithfully to the trust and expectations of our stakeholders.
This policy was approved by the Board of Directors.
Formulated November 2021
Relationship of corporate policies
Mitsui & Co.'s Core Values
The former Mitsui & Co.* which was established in 1876, was disbanded as part of the dissolution of Japan's zaibatsu (industrial conglomerates) shortly after the end of World War II. The current Mitsui was founded by employees of the former Mitsui that shared the values of the original company: "Challenge and Innovation," "Open-Mindedness," and "Focus on Human Resources." The Mitsui of today continues to contribute to the creation of new value for society. The way we work and the way we think are still very much based on the values espoused by Takashi Masuda, the first president of the former Mitsui, and are reflected in our stance toward our work. The principles of Mitsui's approach to sustainability as social responsibility have always reflected its founder's values, a way of thinking unchanged to this day.
* Legally speaking, there has been no continuation between the former Mitsui & Co. and the current Mitsui & Co.
"Let not short term gains tempt your mind, seek only enduring prosperity by embracing grand aspirations."
"I started Mitsui with the goal of realizing trade on a large scale, not in pursuit of money, but from the desire to work."
"Mitsui has a pool of very talented individuals. This is Mitsui's most important asset."
Takashi Masuda, the first president of the former Mitsui
Sustainability Governance and Oversight
In the fiscal year ended March 2005, Mitsui & Co. established the CSR Promotion Committee (currently the Sustainability Committee) under the Corporate Management Committee to develop Mitsui's internal framework with respect to sustainability, and to work to raise sustainability awareness among employees. We established the Sustainability Committee in May 2017, in order to further clarify our unchanging stance toward creating new value for society through business activities and to pursue further mutual sustainability between society and the company. As a subcommittee of the Corporate Management Committee, the Sustainability Committee plans, drafts and proposes basic management policies, business activities and corporate policies and strategies relating to sustainability and ESG. With the Sustainability Committee playing a central role, Mitsui promotes sustainability-related activities based on cross-organizational collaboration to meet the needs and expectations of society in relation to companies' social values and initiatives.
The Sustainability Committee is structured so that its activities are appropriately supervised by the Board of Directors, and matters discussed by the Sustainability Committee are regularly discussed and reported to the Corporate Management Committee and the Board of Directors. The number of cases related to management strategy, sustainability, and governance that were discussed by or presented to the Board of Directors in the fiscal year ended March 2023 was 26 out of a total of 79. In addition to conducting regular biannual reports on activities to promote sustainability at Board of Directors meetings, the directors and corporate auditors, including external directors, also held free discussions on the theme of "Climate Change Responses," and engaged in lively debate.
|Committee Chair||Makoto Sato (Representative Director, Senior Executive Managing Officer, Chief Strategy Officer (CSO))|
|Vice Chairs||Yoshiaki Takemasu (Representative Director, Executive Vice President, Chief Human Resources Officer, Chief Compliance Officer)
Tetsuya Shigeta (Representative Director, Senior Executive Managing Officer, Chief Financial Officer)
|Members||The GMs of Corporate Sustainability Division, Corporate Planning & Strategy Division, Human Resources & General Affairs Division, Legal Division, Investment Administrative Division, Global Controller Division, Finance Division, Investor Relations Division, and two Chief Operating Officers of Business Unit, each of whom shall be appointed.|
|Administrative Office||Corporate Sustainability Div., Corporate Planning & Strategy Div.|
The committee has the following duties
- Develop basic policies on the company's sustainability management and fundamental plans for activities to promote sustainability.
- Review and make proposals on the company's management policies, business activities, as well as policies and strategies of corporate divisions from the perspective of sustainability.
- Present proposals on company-wide policies and actions related to environmental (climate change, circular economy, environmental pollution, biodiversity, etc.), social (human rights, supply chain management, social contribution activities, etc.) or governance issue.
- Make proposals on sustainability-focused business activities (understanding risks and opportunities involved in business).
- Deliberate and establish the basic policy of the effective disclosure of information to stakeholders.
- Consider and present proposals relating to progress reviews and monitoring required for management.
- Configure and establish the internal structure for promoting sustainability management of the company.
- Identify the material issues to focus on each year for promoting sustainability management of the company and ensure progress on these.
- Respond to issues related to sustainability management, both internal and external to the company.
- Approve important matters (basic policies, business plans, etc.) relating to the Mitsui & Co. Environment Fund stipulated in Basic Policy of the Mitsui & Co. Environment Fund.
- Select proposals from applicants for the Environment Fund grants.
- Decide and report whether to support an exceptional acquisition of forests or the disposal of company owned forests, which is out of the scope of the guidelines on the acquisition of a new forest and disposal of company owned forests, based on Rules on the Management of Company Owned Forests.
Main Discussions at Sustainability Committee Meetings in the fiscal year ended March 2023
1st Meeting (April 13, 2022)
- Report on Expanding Climate Change Disclosures under the TCFD
- Free Discussion on Consolidated Sustainability Management at Mitsui & Co. Group
2nd Meeting (June 14, 2022)
- Deliberations on SG-linked Officers' Remuneration/Climate Change Assessment Item
- Report on Sustainability Information Disclosure Update
- Deliberations on Mitsui & Co. Co-creation Fund: System Design Framework and Implementation of Trial Projects
3rd Meeting (August 10, 2022)
- Report on External Environment and the Challenges Facing Mitsui & Co. in Relation to Climate
- Report on Business and Human Rights: Action Plans for Next Medium-Term Management Plan
- Report on Sustainability Information Disclosure Update
4th Meeting (October 12, 2022)
- Report on Stakeholder Communications
- Report on Natural Capital (Biodiversity/Water Resources) Progress and Our Response Plan
- Report on Progress with Scope 3 and Scenario Analyses
- Report on Materials of the Investor Day "Path to Green Transformation" presentation
5th Meeting (December 14, 2022)
- Report on ISSB-related Trends and Mitsui & Co.'s Response Policy/System for Collecting Non-Financial Information
- Free Discussion and Deliberations on Update and Further Utilization of Internal Carbon Pricing
- Report and Deliberations on Mitsui & Co.'s Response Policy for the Revision of the Energy Conservation Act (2023 Revised Energy Conservation Act)
6th Meeting (February 14, 2023)
- Report on Our Policy for Natural Capital
- Report on Plan to encourage the management of Business and Human Rights by Business Units
- Free Discussion on Sustainability Committee's Operating Policy for the Next Term
7th Meeting (March 3, 2023)
- Report on Review and Future Response Policy for ESG Information Disclosure/ESG Evaluation
- Report on Sustainability Management Promotion Activity -Activity Report for FY March/2023 and Action Plan for FY March/2024
Sustainability Advisory Board
*Honorific titles omitted
In order to address a broad range of sustainability-related issues, the Sustainability Committee decided to establish the Sustainability Advisory Board (the former Environmental & Societal Advisory Committee), made up of external experts on environmental and social themes. In the fiscal year ended March 31, 2023, 9consultations and exchanges of opinions were conducted on important themes in sustainability management.
Main content of consultations and exchanges of opinions and the number of times in the fiscal year ended March 2023
|Strengthening Internal Sustainability Management
Structures and Platform
|Implement company-wide e-learning program||1|
|Climate Change||Climate change initiatives||1|
|Business and Human Rights||Import/Export regulations and economic sanctions related on human rights
Effective human rights due diligence system
Remediation Guidance to suppliers with human rights issues
|Social Contribution Activities||Mitsui & Co. Co-creation Fund||3|
Corporate Sustainability Div.
In April 2019, we established the Corporate Sustainability Division, whose role is to promote and drive company-wide sustainability management and to accelerate various initiatives on a global group basis. The Corporate Sustainability Division strives to raise sustainability awareness and share values at the Mitsui & Co. global group level, with the aim of contributing to the achievement of sustainable social and economic development in various countries and regions around the world, while also contributing to solving global environmental problems such as climate change.
Sustainability Promotion Officers
The Sustainability Promotion Officers have taken the initiative in organizing various sustainability awareness-raising programs, such as in-house sustainability seminars and lectures by speakers from partner companies and external experts, as well as workshops regarding sustainability within the actual business. In the fiscal year ended March 31, 2023, we held online Sustainability Promotion Officers meetings on a quarterly basis, where we shared the policies and important matters related to new sustainability initiatives discussed and formulated by the Sustainability Committee, as well as other sustainability related topics.
Materiality Action Plans
Each Business Unit has a Materiality Action Plan that outlines specific initiatives to address the Materiality identified by the company and manages the progress of these initiatives. The Materiality Action Plan defines the content of each Business Unit's response plans, targets, and status of initiatives based on the recognition of issues and major risks and opportunities for each Materiality. It also shows how our business activities contribute to the SDGs, and identifies the SDGs that are highly relevant to each Materiality.
By regularly managing the progress of this Materiality Action Plan, we will implement the PDCA cycle to promote our Materiality initiatives and our efforts to achieve the SDGs.
Raising Awareness on Sustainability Management
We have established Sustainability Month and implement a variety of programs designed to encourage all employees to learn and think about sustainability and then put it into practice. The focus for the fiscal year ended March 2023 was to consider sustainability management together with team members at each site. We released a message to all employees from the CSO (Chairperson of the Sustainability Committee), conducted an Experiential Sustainability Program that included employee participation, a roundtable discussion on the use of company-owned forests, "Mitsui's Forests" for business purposes, and a webinar on the newly-established Mitsui & Co. Co-creation Fund.
Approximately 4,000 people participated in the Experiential Sustainability Program, mainly at the Head Office and branches in Japan. During the program, participants watched interviews with local stakeholders such as producers and suppliers, deepened their understanding of social issues in the supply chain through simulated visual experiences, and gained insight into how to achieve sustainability in their respective operations through discussions with their colleagues.
At Mitsui & Co., we hold introductory training for new employees to explain our sustainability-related policies, including the Sustainability Policy, as well as our ESG initiatives and policy-specific targets. On an ongoing basis, we hold briefings for corporate divisions, business units, regional business units, and affiliates on the external environment related to their divisions and the sustainability management issues to be considered in the future. In addition to our own environmental and social challenges, we also provide training on the importance of environmental and social issues within our supply chain, including our Sustainable Supply Chain Policy and related initiatives. Please refer to the link for more information.