Social
Local Communities
Policies and Basic Approach
We have identified "Enhance quality of life" as one of our material issues for our business management (Materiality). We also aim to establish sustainability for both society and our company by contributing to the betterment of living standards and the development of local industries through our business activities and social contribution activities, and by doing so, fostering trust in local communities.
Basic Approach to Local Communities
In the sense of relevance to our business activities as well as our contribution to society, we make efforts to contribute to local communities and revitalize regional economies, while also promoting community investments. Our aims are to encourage investment and regional development, and create employment at the regional level.
Approaches to Local Employment and Procurement
We are building good relationships with the countries and local communities in which we do business and are helping in the sustainable development in local regions. We strive to contribute to the sustainable regional development by revitalizing human resource development, and the local community and economy through local employment and the procurement of local goods and services. In conducting our business in countries and regions around the world, we aim for coexistence and mutual prosperity with local communities through economic contributions such as local employment and local procurement, based on this approach.
Mine Closure Policy
Upon closing a mine after its operational life, our policy is to comply with laws and regulations and to follow proper procedures according to a plan to minimize impact on the environment and society in adjacent areas.
In our mining activities, we formulate business plans which incorporate future mine closures including sufficient funding and rehabilitation plans. Environmental impact is thoroughly assessed during the project formation stage as well as during mine operation. We also seek reviews from the authorities and relevant experts in order to not only comply with laws and regulations but also to minimize impact on communities and the local environment.
Goals and Targets
- Promote sustainable development that considers local communities through our business in various countries and regions.
- Contribute to the development of national and regional economies in collaboration with project partners, local governments, and local communities.
Sustainability Governance and Oversight
Sustainability Committee
The Sustainability Committee works under the Executive Committee to plan, formulate and provide proposals on basic management policies, business activities, and corporate policies and strategies related to local communities.
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 | Makoto Sato (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.
Risk Management and Impact Assessment Using an ESG Due Diligence Checklist for Local Communities
When investigating new projects, we place importance not only on the economic side but also on ESG (Environmental, Social, and Governance) aspects. We take into consideration the vitalization of the local communities and economies, the indigenous people, cultural heritages, and other peripheral circumstances and how to respond to these. We use an ESG due diligence checklist that is based on the World Bank Group's IFC Performance Standards that is an international standard for taking environmental and social factors into account. The ESG due diligence checklist includes compliance with the United Nations Guiding Principles on Business and Human Rights and the implementation status of the principles of Free, Prior and Informed Consent (FPIC). We then thoroughly evaluate the impact and discuss and consider the project. In addition to reviewing new projects and ones we have already withdrawn, we also monitor the business management of investees and strive to contribute to their improvement.
Collaborating with Stakeholders
Initiatives
Initiatives as Part of Business Activities
Efforts to Improve Health and Sanitation for Local Residents in Brazil (Combating Infectious Diseases such as Malaria)
In the Jirau hydropower generation business in Brazil, under a public-private partnership, the project company has been implementing a social contribution and environmental action program since 2009 with the aim of improving the health and sanitary environment for local residents. With a particular focus on measures to combat malaria, the project company has been working to build hospitals and basic healthcare facilities and provide mobile floating hospitals (vessels) to secure access to medical examinations and treatment. It has also implemented healthcare education and seminars for disease prevention. Its contribution to vector control efforts includes donation of extermination materials and research equipment, dispatch of researchers, exterminators, and other experts and implementation of vector control works, thereby contributing to a reduction in the number of malaria cases in the region, which has earned considerable international recognition. In recent years, to meet the health and hygiene demand from neighboring residents, the project company constructed a social health care facility and donated medical equipment and facilities. The facility provides medical, dental, and other services to six neighboring municipalities in partnership with social assistance office.
Contributing to the livelihoods and economic development of people in off-grid and power vulnerable areas of India through mini-grids
As global energy demand increases, especially in Asia, where economic growth continues, we are developing our distributed power supply business worldwide, providing power and related services close to end consumers. About 700 million people* in the world still do not have access to electricity, and although electrification is being promoted in various regions in India, frequent and prolonged power outages continue to be a major social issue. On the other hand, the penetration rate of cell phones and 5G networks is rapidly increasing in these countries and regions, and stable power supply for data communication is becoming more important. In 2017, we invested and participated in OMC Power Private Limited (hereinafter referred to as "OMC"), which is engaged in the business of "local production for local consumption" distributed power supply, stably supplying power mainly through a combination of solar power generation and storage batteries to mobile base stations as its basic customers, as well as to nearby businesses and residents. OMC currently owns more than 400 power generation sites, which support nearby cell phone base stations, more than 25,000 local facilities, banks, schools, and other businesses, as well as local residents. In recent years, we have also diversified our business to meet customer demand by launching a rooftop solar power generation business for government agencies. Together with OMC, we will continue to work on the creation of a sustainable mechanism to deliver electricity to as many off-grid and vulnerable areas as possible and enrich the lives of the local people.
* Source: World Bank etc. "2023 Tracking SDG7 Report"
Rehabilitation Project Following the Closure of a Coal-fired Power Station and its Adjacent Coal Mine in Australia
With the shutting down of the Hazelwood Power Station and mine in Latrobe Valley near Morwell, Victoria, Australia, we have been working since 2017 with our partner ENGIE S.A. on the demolition of the office buildings and plant, and the subsequent closure (rehabilitation). In accordance with our mine closure policy, we began preparations prior to implementing the demolition work, evaluating the impact on the environment and local community through expert reviews, and then carrying out the work in accordance with laws, regulations, and permits, and holding regular discussions with stakeholders such as government officials and residents. Moreover, we have created and published a concept master plan for the effective utilization of the site, which will contribute to the development of the region following the closure.
Thailand: Doi Tung Development Project
The Doi Tung Development Project is a social contribution initiative launched by the Thai Royal Family in 1988, providing vocational training in agriculture and handicrafts to the hill tribe people who were involved in opium production in the mountainous areas along the Myanmar border in Chiang Rai Province, northern Thailand, as a way of helping them become self-sufficient. Mitsui has invested in and participated in a project promotion company led by the Mae Fah Luang Foundation, which was established by a member of the royal family. The project's production of commodity crops such as coffee and macadamia nuts has led to the alleviation of poverty among farmers and the sustainable self-sufficiency of the local population. The project has now expanded its scope of activities to include coffee roasting and sales, coffee shop management, and the manufacture and sale of clothing and crafts, making a significant contribution to local communities.
Mitsui & Co. Co-creation Fund: Healthcare innovation hub development project in Africa
In Africa, a variety of infectious diseases, including the three major infectious diseases of HIV/AIDS, tuberculosis, and malaria, still persist, and the threat of non-communicable diseases such as cancer and lifestyle-related diseases is also rapidly increasing. Although private researchers, research institutions, and companies, as well as public institutions, have a major role to play in the research and diagnosis of these diseases, there is a lack of facilities and equipment to conduct research and diagnosis, as well as a lack of support for the commercialization of research activities.
CA Medlynks Kenya Limited ("CAML"), a Kenyan subsidiary of healthcare start-up company Connect Afya Corporation (Hyogo Prefecture), provides testing infrastructure and diagnostic services in Africa. CAML aims to develop disease research and diagnostic services in Africa by building an ecosystem in collaboration with local medical institutions, researchers, and research organizations to address the above issues.
