MC's Three Corporate Principles call upon us to "strive to enrich society, both materially and spiritually, while contributing towards the preservation on the global environment".
In recent years, expectations and demands for companies to address various societal challenges have been increasing. Guided by our Materiality, a set of crucial societal issues that we will prioritize through our business activities, we aim to continue to grow together with society by continuously creating MC Shared Value, as set forth in Midterm Corporate Strategy 2024.
Furthermore, in order to increase our corporate value in line with the ever-changing demands of society, we have established an effective promotion framework that recognizes the importance of dialogue with our stakeholders and a cycle of business strategy execution based on this dialogue.
Cycle of Dialogue and Business Strategy Execution
In MC’s management framework, sustainability initiatives are overseen by the Corporate Functional Officer in charge of Sustainability. The Sustainability Department plans and drafts related policies and measures. Following deliberations by the Sustainability Committee, which convenes approximately twice a year, items are put forward or reported to the Executive Committee and the Board of Directors.
Main Discussion Themes for the Sustainability Committee
In order to continuously create societal and environmental value through our business activities, we have established a framework through which both Corporate StaffDepartments as well as Business Groups proactively promote sustainability.
We believe that the cycle of disclosing our sustainability initiatives in a timely and appropriate manner based on the requests of our stakeholders, gaining their understanding, and reflecting their feedback on our initiatives is crucial. We will continue to proactively disclose sustainability-related information based on the recognition that this cycle contributes to enhancing our corporate value over the medium to long term.
Disclosures are made through the Sustainability Website after approval by the Corporate Functional Officer in charge of Sustainability and after reporting to the Disclosure Committee, a subcommittee of the Executive Committee.
The website was established with the aim of centralizing ESG-related information disclosed separately through such channels as the Integrated Report and the ESG Data Book, and of responding in a timely manner to the increasingly complex requirements of ESG evaluation bodies and disclosure standards. The website is primarily aimed at stakeholders who have a strong interest in ESG investment. Referring to multiple ESG reporting guidelines, it has been organized according to ESG topic for easier reference. Disclosures can also be downloaded in a conventional report format as a PDF.
Looking ahead, we will continue striving to ensure that our ESG disclosure serves as an effective communication tool that contributes to constructive stakeholder dialogue by improving the clarity of our reporting based on the valued feedback we receive from our stakeholders.
To fully grasp qualitative and quantitative information around sustainability, MC annually conducts environmental and occupational health and safety surveys targeting all consolidated companies. The aggregated results are reported to management and used as basic information for planningsustainability initiatives and other measures.
Target companies are determined by the Sustainability Department and the relevant Section/Business Groups. In principle, the survey covers all consolidated companies, including subsidiaries affiliates, joint operations and joint venture.
Survey items include greenhouse gas(GHG) emissions, water, waste, occupational health and safety data, expenditures for philanthropic activities, environmental management measures and other management policies.
The survey results are reported to the Sustainability Committee, the Executive Committee and the Board of Directors.
A portion of the data has received independent practitioner’s assurance from Deloitte Tohmatsu Sustainability Co., Ltd. to improve data reliability, and is disclosed on the Sustainability Website, in our Sustainability Report and our annual response to CDP.
MC places great importance on its ability to identify and appropriately address the ever-changing demands of society. We engage in direct dialogue with investors including shareholders and NGOs, and hold discussions with local communities on individual projects. In addition, MC carries out supply chain surveys as part of its supply chain management. We see constructive dialogue with all of our stakeholders and the reflection of input from that dialogue in our policies and actions as being vital to the achievement of sustainable medium- to long-term improvement in our corporate value.
Moreover, to better understand global environmental and societal trends, MC has established sustainability departments in Europe, the Americas, Southeast Asia and other regions to share and coordinate information. MC is also a signatory of the UN Global Compact and a member of organizations such as the World Business Council for Sustainable Development (WBCSD). In addition, the Sustainability Advisory Committee, which MC established in 2008, is working to incorporate external perspectives into its sustainability activities. The committee meets twice a year to provide advice and recommendations.
In FY2022, MC held approximately 40 direct dialogues with shareholders on the topic of sustainability. MC also conducted 85 direct dialogues with NGOs, including 9 in Japan, 32 in Europe and 44 in the Americas. These meetings provided valuable insights into stakeholders’ perspectives, including expectations in relation to our strategies toward the transition to a low-carbon/decarbonized society, as well as policies around individual fossil fuel projects. MC will consider the suggestions received and will strive to provide timely and appropriate disclosure of the response measures and policies it formulates.
MC established the Sustainability Advisory Committee in 2008, consists of three external experts representing the perspectives of MC’s diverse stakeholders. The Committee acts as an advisory body to the Corporate Functional Officer (CSEO) and meets twice a year. MC conveys its thinking on sustainability policies to Committee members and, with the aim of improving stakeholder engagement, receives advice and recommendations from them. Moreover, MC conducts tours of business sites for Committee members in order to deepen their understanding of MC’s businesses. At the Sustainability Advisory Committee meeting held inJune 2023, MC received feedback on the following topics:
Miwa Yamada:
Director-General
Inter-disciplinary Studies Center
Institute of Developing Economies
Japan External Trade Organization (IDE-JETRO)
Tokutaro Nakai:
Executive Advisor
Nippon Steel Corporation
Soichi Noguchi:
CEO
Mirai Space Co., Ltd
Astronaut
In the fall of 2023, MC’s Sustainability Advisory Committee members visited the Tomakomai CCS Demonstration Project, in which we participate as an investor, and Hokkaido Airports Co., Ltd. (Hokkaido Airports), the operator of New Chitose Airport, established by a consortium of which MC is a member.
The Tomakomai CCS Demonstration Project is the first large-scale CCS demonstration test in Japan aimed at commercial scale CCS. Through the tour, we deepened our understanding of the effectiveness and safety of CCS and exchanged opinions on issues to be addressed to make CCS commercially viable.
Hokkaido Airports Co., Ltd., the operating company of New Chitose Airport and other airports in Hokkaido, informed us about the latest issues for the industry and local communities. In addition, we heard about the feasibility studies conducted by the New Energy and Industrial Technology Development Organization (NEDO) on the production and use of hydrogen at New Chitose Airport and surrounding areas. We were also able to exchange opinions on the future possibilities of utilizing renewable energy with consideration for the airport as a starting point for this.
