External Environment

The impacts of climate change are becoming increasingly severe year after year. Climate change is now having a significant impact on the environment, society and people’s daily lives as well as on corporate business activities. The Paris Agreement was adopted to promote the global reduction of greenhouse gas emissions, and it was also announced that the EU, the United States and Japan would target net-zero emissions by 2050, and China by 2060. The agreement has heightened expectations not only for countries and governments to fulfill key roles in mitigating climate change, but also for the private sector as well. Companies are expected to implement measures to achieve a low-carbon/decarbonized society through their business activities. There have also been stronger calls for companies to provide disclosure of climate change-related information stemming from the TCFD, an initiative led by institutional investors. As a result, opportunities for dialogue on climate change between companies and investors are expanding, including the institutional investor initiative Climate Action 100+ and the TCFD Consortium launched in Japan in 2019. The purpose of these initiatives is to encourage the disclosure of information that will enable investors and other stakeholders to properly monitor and evaluate the climate-related risks of companies.

* The Task Force on Climate-related Financial Disclosures (TCFD) set up by the Financial Stability Board. In June 2017, the TCFD announced its recommendations on climate-related financial disclosures in order for investors to be able to make appropriate investment decisions. Please see the details in the column below. The General Manager of MC’s Corporate Sustainability & CSR Department is a TCFD member, and mainly through its involvement in the task force’s seminars and meetings, MC is supporting the TCFD’s activities and helping its recommendations to take root throughout the business community.


Our planet and its ecosystems, human beings and corporate activities are highly vulnerable to climate change.
At MC, our belief is that while climate change does pose significant threats, it also presents the MC Group with new business opportunities. Accordingly, MC has identified “Transitioning to a Low-Carbon Society” as one of the key issues for management to address and respond to as MC strives to achieve sustainable growth. MC aims to fulfill its mandate to meet the demand for energy, while at the same time helping to achieve international objectives, such as the UN Sustainable Development Goals (SDGs) and the 2℃ target laid out in the Paris Agreement. To realize that aim, MC works in collaboration with a wide range of stakeholders, including governments, other businesses and industry associations. MC also recognizes the importance of climate-related financial disclosures and supports recommendations made by the TCFD. MC continues to strive to expand its information disclosure in line with the recommendations.


TCFD Recommendations (June 2017)

The Financial Stability Board (FSB) launched the TCFD in recognition of both the likelihood that climate change would result in further risks and opportunities for businesses in the future, and the heightening concerns about it destabilizing the value of assets and financial markets.
To help the markets to properly evaluate those risks and seize the opportunities they present, the TCFD has established a voluntary framework for climate-related financial disclosures.
Reflecting the need for investors to get a clear picture on how climate-related risks and opportunities will affect future cash flows, assets and liabilities of entities receiving investment to facilitate financial decision-making, the report recommends disclosing key pointers on Governance, Strategy, Risk Management, and Metrics and Targets.

Core Elements of TCFD’s Climate-Related Financial Disclosures
Governance The organization’s governance around climate-related risks and opportunities
Strategy The actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning (including analyses of the 2℃ Scenario, etc.)
The processes used by the organization to identify, assess, and manage climate-related risks
Metrics and
The metrics and targets used to assess and manage relevant climate-related risks and opportunities

Reference:TCFD website (

サステナビリティ・CSR部 ステークホルダーエンゲージメントチーム(PQ-E)

Utilizing the TCFD Recommendations to Capture Business Opportunities and Mitigate Risks

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Due to the high degree of uncertainty surrounding the impacts of climate change, MC has adopted a flexible portfolio capable of adapting to medium to long-term changes in its operating environment. MC believes it is vital to capture business opportunities associated with climate change and take appropriate action to mitigate risks. The TCFD provides business entities and investors with guidelines on voluntary climate-related financial disclosures and information useful for their decision making. MC utilizes these TCFD data as benchmarks for verifying its own climate-related action plans, identifying growth opportunities and strengthening risk management in ways that are designed to ensure its sustainable growth. Portions of the TCFD’s recommendations are still in the discussion stages, and others may take several years before action can be taken. Nevertheless, MC will disclose its efforts in a stepwise fashion to strengthen its information disclosure.


Climate change is one of the most important issues acknowledged by MC’s top management. MC’s basic policy on climate change and important matters therein are deliberated and decided upon by its Executive Committee, MC’s officer-level decision-making body. As stipulated in the regulations governing MC's board of directors, the Executive Committee reports its findings regularly (approximately twice a year) to the board, appropriate supervision of which is facilitated by the structure of MC's governance framework.
Before the Executive Committee has addressed basic policy and important matters pertaining to climate change, actions are taken by MC’s Sustainability Advisory Committee and Sustainability & CSR Committee. The former fields opinions and advice from outside experts, and the latter (which reports directly to the Executive Committee) holds extensive hearings with all of the Business Group CEOs. The Business Groups also act independently to address climate change. Group Chief Sustainability Officers and Group Sustainability Managers are appointed within each Group’s department responsible for management strategy in order to oversee sustainability-related initiatives (including climate change) and reflect climate-related opinions and information into their respective businesses and strategies. MC's basic policy on climate change and important matters therein are comprehensively addressed when making decisions on business strategies and screening new loans and investments.

Board of Directors and Executive Committee Deliberations and Reports
Basic Policy on Climate Change Covers climate-related initiatives through MC’s businesses, adoption of TCFD recommendations, details on climate-related financial disclosures, etc.
Important Matters Assessments of climate-change risks and business opportunities (including scenario analyses), greenhouse- gas reduction targets and action plans, etc.
Initiatives to Date

Climate-Change Governance Structure
Board of Directors Supervises MC’s climate-related actions and initiatives Convenes approx. twice a year
Executive Committee Makes decisions regarding MC’s basic policy on climate change
Makes decisions regarding important matters pertaining to climate change
Convenes approx. twice a year
Sustainability & CSR Committee (reports directly to Executive Committee) Deliberates on MC’s basic policy on climate change and important matters therein, and reports findings to Executive Committee Convenes approx. twice a year
Sustainability Advisory Committee Offers advice and recommendations regarding MC’s basic policy on climate change and important matters therein Convenes approx. twice per year
Officer in Charge Akira Murakoshi (Member of the Board, Executive Vice President, Corporate Functional Officer, CDO, CAO, Corporate Communications, Corporate Sustainability & CSR)
Department in Charge Corporate Sustainability & CSR Department

Reference:Diagram of the Sustainability Promotion Framework

サステナビリティ・CSR部 サステナビリティ企画チーム(PQ-C)


MC considers the risks and opportunities associated with climate change to be key variables in establishing its business strategies, and recognizes the possibility that the impact of climate change on its operations will grow over the medium to long term. Accordingly, MC is identifying where the risks and opportunities are likely to reveal themselves up to and even beyond the year 2030. Regular internal analyses and assessments also factor in changing external trends.

Main Risks and Opportunities Associated with Climate Change

Transition Risks and Opportunities

  • Low-carbon and carbon-free products / proliferation of service-related subsidies
  • Growing operational and systems-related csts due to carbon pricing mechanisms (carbon taxes, etc.) and increasing regulations
  • More new business opportunities due to the development and proliferation of renewable energy sources, electric vehicles and other new technologies or alternative products
  • Obsolescence of products and services that rely on older technologies
  • Shifting demand from fossil-fuel products and services to low-carbon products and services

Physical Risks

Increase in Unusual Weather Patterns
  • Risks of water shortages, floods and other resulting phenomena having an adverse impact on business operations
Climate Change
  • Risk of climate change, rising temperatures, etc. having an adverse impact on businesses
  1. * The impacts of the above transition risks and opportunities and physical risks will depend on both the relevant regions and products.
  2. * With respect to physical risks, it is important to consider environmental changes (or possibilities thereof) on a region-by-region or product-by-product basis. Accordingly, MC’s responses to phenomena such as floods and water shortages are tailored to the on-the-ground characteristics and needs of each of its businesses.
Transition Risks and Opportunities

Scenario Analysis

1) Process
Based on the following process, MC identifies businesses with the largest impact in relation to climate change, and conducts scenario analyses around each of them.
① Selecting Climate Scenarios
2℃ climate scenarios set out by the IEA (International Energy Agency) and other organizations (World Energy Outlook Sustainable Development Scenario, Energy Technology Perspectives Sustainable Development Scenario, etc.) are selected for this analysis to objectively assess both new opportunities and the resilience of MC's business in cases where climate change causes significant deviations from Business as Usual (BAU).
MC is currently in consideration to conduct analysis using the 1.5°C scenario, based on the premise that decarbonization will proceed further than the 2°C Scenario, and this will be considered going forward.
② Identification of Businesses Most Affected by Climate Change
Industries in which MC is involved where financial and non-financial factors have significant impacts are identified. In addition, those industries most affected by climate change are also identified, taking into account the TCFD’s four sector classifications*1 (However, industries where both financial and non-financial factors have low impact to MC are excluded from the scope).
③ For the Industries Selected in ②, Identification of the Applicable Industry Risks and Opportunities
Based on the evaluation aspects*2 recommended by TCFD, commonly projected climate-related risks and opportunities under the 2℃ Scenario are identified at each stage within MC’s selected industry-specific value chains.
The risks and opportunities identified are divided into “impact on demand” and “impact on earnings”, and climate change impacts are plotted for the categories detailed above and classified into three levels of low, medium and high.
④ Determining Projects to be Monitored
Lastly, from among the businesses exposed to a high level of industrial impact (both risks and opportunities), the target businesses that should be monitored for climate change impacts going forward are qualitatively determined, taking into account aspects such as strategic impacts.
2) Results of the Analysis
The results of the scenario analyses for the seven businesses selected through the process detailed above (power generation (fossil fuels), metallurgical coal, natural gas, vehicles (passenger cars), ships, power generation (renewable energy) and copper) are as follows:
Scenarios are based on past data and are not forecasts. Instead, they are virtual models based on possible outcomes with high levels of uncertainty. The scenarios and business environment written here represent MC’s understanding of the main scenarios disclosed by international organizations such as the IEA (International Energy Agency), and do not represent MC’s medium to long-term outlook. Outlooks for possible outcomes in the medium to long-term take into account a number of potential risks, uncertainties and assumptions, and in actuality, may differ significantly from each scenario due to fluctuations of key factors.
How to view the charts

Name of Selected Business

  STEPS Scenario*1 2°C Scenario (SDS)*2

The trajectory forecast from the present to 2040-2050*3 for the global supply and demand related to the selected businesses under the STEPS scenario in publications such as the IEA’s World Energy Outlook and Energy Technology Perspectives is expressed in seven levels (significant decrease, decrease, slight decrease, flat, slight increase, increase, significant increase).

The trajectory forecast from the present to 2040-2050*3 for the global supply and demand related to the selected businesses under the 2ºC scenario in publications such as the IEA’s World Energy Outlook and Energy Technology Perspectives is expressed in seven levels (significant decrease, decrease, slight decrease, flat, slight increase, increase, significant increase).
Awareness of the
Business Environment
Introduction of the general awareness of the business environment as expressed in the STEPS scenario, etc. (BAU scenario) Introduction of the general awareness of the business environment under the 2ºC (SDS) Scenario.
Policies and Initiatives Based on the Awareness of the Business Environment
Analysis of the impact to MC’s business based on the awareness of the business environment detailed in both scenarios above, and related policies and initiatives.
  • *1 STEPS Scenario
    One of the primary scenarios of the World Energy Outlook 2019 and Energy Technology Perspectives 2020 published by the IEA. It is a scenario based on each country’s reduction targets and climate change mitigation measures post-2020 as pledged in the Paris Agreement.
  • *2 SDS Scenario
    One of the primary scenarios of Energy Technology Perspectives 2019 and Energy Technology Perspectives 2020 published by the IEA. It is a scenario based on mitigation of climate change while taking into account the stable supply of energy.
  • *3 For “ships,” up to 2070.
サステナビリティ・CSR部 サステナビリティ企画チーム(PQ-C)

Power Generation (Fossil Fuels)

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  STEPS Scenario 2°C Scenario (SDS)
Awareness of the
Business Environment
In order to respond to an increase in electricity demand, opportunities are anticipated for businesses such as renewable energy and clean gas-fired power generation. However, given the nature of power generation being produced locally for local consumption, MC feels it is important to continue managing businesses by responding to the policies, etc. of each country and region. Business opportunities are expected to decline in line with the reduction of fossil fuel power generation amount from the 2020s, which will exert downward pressure on profits. Also, in the 2030s, it is anticipated that the strengthening of restrictions and regulations could increase the cost of existing thermal power plants, and the profit structure will further change as gasfired power generation shifts to a dispatchable source of power. Moreover, from the 2040s, thermal power plants used for regulating supply and demand may also be required to reduce their CO2 emissions, which could necessitate further reductions in operating hours.
Policies and Initiatives Based on the Awareness of the Business Environment
As the global trend towards carbon reduction / decarbonization becomes more pronounced, MC recognizes that the resulting decline in cost competitiveness due to restrictions and tighter regulations on fossil fuel-based power generation businesses could make it difficult to withdraw from existing projects in the future.
Accordingly, MC has disclosed specific policies in relation to coal-fired power generation businesses. In the gas-fired power generation business as well, by conducting a risk analysis based on the impacts of climate change, MC aims to achieve a 100% non-fossil power generation portfolio by 2050.

Policy on Coal-fired Power Generation Businesses (IPP and EPC)

<Independent Power Producer (IPP) Business for Coal-fired Power Generation>
  • As of April 2020, MC’s coal-fired power generation capacity (for businesses in which MC serves the role of Independent Power Producer, or “IPP”), including projects under development and construction, is approximately 2.2GW on an equity share basis (roughly 20% of MC’s total capacity as of the same date).
  • MC has adopted a policy to reduce its equity share to approximately one-third by 2030 (compared to 2020 levels) by not entering into any new coal-fired power generation businesses, with the Vung Ang II project in Vietnam being the last, and to exit all existing coal-fired power generation projects by 2050. Furthermore, we will work to reduce CO₂ emissions in our thermal power generation business by taking steps such as converting to alternative fuel sources. We will subsequently aim to achieve a 100% non-fossil power generation portfolio by 2050 by 1) decarbonizing our thermal power generation business by switching to zero-emission thermal power and 2) further expanding our renewable energy business.
<Engineering, Procurement and Construction (EPC) Business for Coal-fired Power Plants>
  • MC will not enter into any new EPC (Engineering, Procurement and Construction) businesses for coal-fired power plants, with the Quang Trach 1 project in Vietnam being the last. However, MC will continue to provide after-sales services for installed plants in cases such as when MC has a contractual obligation with the relevant power generation company, or when it is requested to do so by the power generation company or equipment manufacturer.
  • MC will continue additional construction work and equipment replacement to reduce the environmental impact of existing coal-fired power plants, while assessing the effectiveness of such measures, as an initiative linked to the transition to a low-carbon/decarbonized society.
Metallurgical Coal
  STEPS Scenario 2°C Scenario (SDS)
Awareness of the
Business Environment
Firm demand growth for steel is anticipated, particularly in locations such as India and Southeast Asia. Steel production is divided into the blast furnace method, which uses iron ore and metallurgical coal and the electric furnace method, which mainly uses steel scrap as raw materials. Although new technologies to replace the current blast furnace method are being researched, from an economic perspective the new technologies are not expected to be realized in the short- to medium-term (about 10 years) , and it is believed that the blast furnace method will continue to be the main method of steel production. Although the demand for steel is predicted to steadily increase, with the introduction of carbon pricing, the proportion of steel produced by the electric furnace method, which uses iron scrap as raw material, and low-carbon production methods (e.g. the hydrogen reduction process) are expected to increase. However, with the proliferation of CCUS, equipment to capture CO2 may be attached to the blast furnace, which could allow for high-grade metallurgical coal to continue to be the primary raw material. Together with further efficiency gains in the blast furnace method, it is predicted that demand for high-grade metallurgical coal could increase. In addition to the depletion of existing coalmines, supplies are anticipated to decrease due to factors such as the increasing difficulty to obtain environmental permits and worsening economics, which could increase the relative advantage of existing high-quality coalmines.
Policies and Initiatives Based on the Awareness of the Business Environment
From the outlook that the demand for metallurgical coal will continue to expand steadily based on the demand for steel in the medium to long-term, MC will continue to fulfill its responsibility to provide customers with a stable supply of metallurgical coal.
In the business environment under the 2ºC scenario, carbon pricing is expected to be introduced and the proportion of steel production by the electric furnace method and new low-carbon methods is also expected to increase, and these trends could affect MC’s metallurgical coal business. However, MC expects to maintain its advantage to a certain extent due to the increase in need for high-grade metallurgical coal against the backdrop of increased efficiency in steelmaking using the blast furnace method. MC will continuously monitor and analyze issues including the progress of new technologies (new steelmaking methods, CCUS), electric furnaces and national policies, which could have an impact on metallurgical coal demand, and work to strengthen the competitiveness of its metallurgical coal assets. Furthermore, as a specific initiative toward Transitioning to a Low-carbon Society, MC will work on the ground to reduce greenhouse gas emissions in the BMA metallurgical coal business in Australia through its subsidiary MDP. In collaboration with BHP, our partner in the metallurgical coal business, we are supporting research that contributes towards reducing emissions throughout the entire metallurgical coal value chain.
電力ソリューショングループCEOオフィス (EZ-K), 金属資源グループCEOオフィス(KZ-B)

Natural Gas

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  STEPS Scenario 2°C Scenario (SDS)
Awareness of the
Business Environment
In all regions with the exception of Europe, demand for natural gas is expected to increase (average annual growth of 1.4% between 2018-2040), mainly as fuel for power generation to support the increasing electricity demand that will surpass the deployment of renewable energy, as chemical feedstock and as transportation fuel, among other uses. It is recognized that LNG demand in particular will grow due to its high transportability (at an annual rate of 3.4% from 2018 to 2040). Global gas demand is projected to increase by 8% by 2030 compared to 2018 levels, and then to decrease to 2% below 2018 levels by 2040.*4 By region, gas demand in Asia-Pacific will increase significantly through 2040, primarily in China and India. On the other hand, in North America, Europe and Eurasia, gas demand is expected to decrease from 2040. By industry, demand for gas in power generation and for use in buildings will gradually decline, but demand for alternative fuels and heat sources in hard-to-decarbonize sectors such as large-scale transport and heavy industry is expected to increase. *4 LNG trading volume is expected to increase by 81% in 2040 compared to 2018.
Policies and Initiatives Based on the Awareness of the Business Environment
As the transition to a low-carbon/decarbonized society continues, MC positions natural gas as a vital energy source. In addition to strengthening the foundation of its existing businesses and steadily launching projects that are currently under construction, MC aims to expand its LNG business by participating in new, competitive projects, nurturing demand and strengthening its sales capabilities and developing new markets.
Under the 2°C Scenario, global demand for natural gas is projected to increase up to 2030 and then decrease thereafter. However, by launching new projects to meet demand increases and by carefully selecting highly cost-competitive projects, MC expects to maintain a competitive advantage in its natural gas business. Under this scenario, MC will continue to proactively develop new markets in Asia to capture the huge increase in energy demand anticipated in that region. In addition, MC will continue to monitor international policy developments such as the introduction of carbon taxes, which could be a factor that affects profits under the 2ºC Scenario. MC will also stay up to date on technological trends in hard-to-decarbonize industries that could drive increases in demand for alternative fuel and heat sources to replace oil and coal for use in large-scale transport and heavy industry, and will promote marketing activities and business innovation accordingly. Furthermore, also paying attention to technological developments around CCUS that will increase the viability of the 2ºC Scenario, MC will actively consider and promote initiatives to increase resilience to climate risks and capture opportunities by implementing parallel initiatives connecting to the transition to carbon-neutral natural gas value chains.
Automobiles (Passenger cars, pickup trucks)
  STEPS Scenario 2°C Scenario (SDS)
Awareness of the
Business Environment
With global population growth in the medium to long-term and economic growth in developing countries, the demand for passenger cars and trucks is projected to grow significantly (from 2015, +120% in passenger vehicle demand and +150% in truck demand). Alongside a hike in demand for internal combustion engine vehicles, especially in Southeast Asia, demand for electric vehicles (electric vehicles (EVs), plug-in hybrid EVs (PHEVs), and hybrid vehicles (HEVs)) is also expected to grow in China and Europe, due to tightening global environmental regulations. Moreover, the automotive industry is undergoing a once-in-a-century transformation, driven largely by digitization and the CASE (Connected, Autonomous, Shared/Service and Electric) evolution. Demand for mobility services that take into account the shift from internal combustion engine vehicles to hybrid and electric vehicles is expected to grow, and consumer needs are projected to shift from vehicle owning to shared mobility. Although the overall demand for automobiles is projected to grow to a certain extent, the cost of owning and operating a vehicle may increase due to the revision of automobile-related tax and regulation systems in each country, such as the tightening of environmental regulations for the automotive industry, resulting in a modal shift towards public transit systems. As such, the level of demand expansion is not expected to be as high as in the STEPs Scenario (Demand in 2040 is expected to be +21.9% compared to 2018 [-24.4% compared to STEPS]).
In China and Europe, the shift from internal combustion engine vehicles to electric vehicles is also expected to accelerate. However, due to issues such as installation of power charging infrastructure in emerging markets such as India and Southeast Asia, etc, the demand for internal combustion engines for both passenger and commercial vehicles is expected to be firm.
Policies and Initiatives Based on the Awareness of the Business Environment
In ASEAN, which is positioned as a key market and where further growth can be expected, MC handles Mitsubishi Motors Corporation (MMC) vehicles and Mitsubishi Fuso Truck and Bus Corporation vehicles in Indonesia, and Isuzu Motors vehicles in Thailand. MC will continue to be deeply involved in each stage of the value chain (upstream-midstream-downstream) including production, distribution, financing and after-sales services. In addition to further strengthening the foundations of its businesses in both markets, MC will further expand its value chains in other markets including China, Russia, India, the Philippines and Vietnam, etc. Although it is anticipated that internal combustion engine vehicles will be the primary source of vehicle demand in ASEAN even under the 2ºC Scenario, keeping a close eye on developments around tax and regulations in each country, MC will continue to promote the spread of electric vehicles (EVs) from a sales and manufacturing perspective, primarily in the markets where it handles those vehicles. MC and MMC have been actively working to expand sales of passenger EVs, such as by building up sales of PHEV vehicles mainly in the UK and the Netherlands. In 2019, MC and MMC released the first PHEV in the Indonesian market ahead of other companies in anticipation of further demand growth, leading to further proliferation. MC will also maintain the sustainability of its businesses by helping to address societal issues through its mobility service business, as well as by further strengthening its functions and community-based networks built up over many years.
  STEPS Scenario 2°C Scenario (SDS)
Awareness of the
Business Environment
Shipping already comprises 70-80% of the global logistics (including land transport), and as a key component of the transport infrastructure that is irreplaceable amid an ongoing modal shift, demand for shipping is expected to soar (demand in 2070 will be 260% higher than in 2019). The International Maritime Organization (IMO) has set the goal of improving greenhouse gas emissions per transport unit by 40% by 2030 compared to that of 2008, and halving total greenhouse gas emissions by 2050 compared to 2008. From the late 2020s, the shift to next-generation fuels, mainly low-sulfur and LNG fuels with lower environmental impact, is expected to progress. Although the volume for shipping demand will be lower than STEPS, demand as of 2070 is expected to increase significantly, by 230% compared to 2019. As existing regulations are tightened and new rules are brought in, the use of next generation fuels such as biofuels, hydrogen and ammonia fuels, as well as low-sulfur and LNG fuels will increase exponentially (by 2050, the fuel share of what are now mainstream fossil fuels will have decreased by more than 20% compared to 2019). These changes will compel the shipbuilding industry to develop and build new types of ships using the next generation of fuels as mentioned instead of heavy oil fuels and establish a supply chain network and a supply infrastructure at ports for the same.
Policies and Initiatives Based on the Awareness of the Business Environment
The shift to next generation fuels expected above may generate demand for refurbishment and replacement of vessels owned by MC in the future, but as switching to next generation fuels and developing supply infrastructure will accelerate after 2030, the extra cost borne by MC for such refurbishment and replacement of vessels currently owned by MC is expected to be very limited. We will seek out fresh new business opportunities by monitoring trends in the switchover to next-generation fuels, performance, costs and infrastructure, as well as the price of constructing new ships, freight rates and the state of supply systems. In the bigger business picture, the additional costs associated with the fuel required for operation will remain incumbent on the shipper/operator, which will limit the risk to MC.
In 2020, MC teamed up with six domestic partner companies to establish the e5 Consortium, which aims to set up a new shipping infrastructure service by spearheading various initiatives to develop, realize and promote zero-emission electric propulsion ships. By developing and introducing advanced vessels, we will make our business more sustainable and add value to the coastal shipping industry.
天然ガスグループCEOオフィス (NX-B), 産業インフラグループCEOオフィス(MV-Y), 自動車・モビリティグループCEOオフィス(UV-A)

Power Generation: Renewable Energy

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  2°C Scenario (SDS)
Awareness of the
Business Environment
Under a 2ºC Scenario, it is believed that policies to capture renewable energy as a main power source will become mainstream. It will be necessary to promote deregulation and technological innovation to construct an energy system that is not only sound environmentally, but economically and socially as well. Regarding this point, MC understands the need for multifaceted initiatives involving technologies that support the expansion of renewable energy while maintaining safe and stable supplies of power (energy storage, hydrogen, transmission technology, supply and demand adjustment technology, and energy trading) and anticipates that these markets will expand.
As the expansion of renewables progresses together with the proactive deployment of renewable technologies in each region around the world, starting with offshore wind in Europe, the grid configuration and supply of power will change. As a result, opportunities are anticipated for energy transmission and businesses that regulate the supply and demand for power such as battery storage, services using storage batteries, and VPP (virtual power plant) businesses.
In the renewable energy generation business, as is the case for thermal power generation, given the nature of power generation being produced locally for local consumption, MC feels it is important to continue managing businesses by responding to the policies, etc. of each country and region. On the other hand, as the market expands and commoditization progresses, cost competition is expected to intensify.
Furthermore, MC recognizes that trends towards decentralization of the energy system driven by the spread of renewable energy, batteries and other technologies along with movements around thermal power generation, including next-generation types, may vary greatly in terms of timing and content depending on the status of government regulation and technological innovation, as well as the country or region.
Policies and Initiatives Based on the Awareness of the Business Environment
In line with the expansion of renewable energy and accompanying policies, MC will optimize its portfolio throughout the electric power value chain while taking into account the characteristics of each country and region.
In the renewable energy business, in addition to aiming to double renewable power generation capacity by the fiscal year ending March 2031 compared to the fiscal year ended March 2020 (from 3.3GW to 6.6GW), MC is promoting businesses that support the proliferation of renewable energy, including energy transmission and storage-related businesses. In Europe, where the active deployment of renewable energy continues to progress, nearly all of MC’s power generation activities involve renewable energy, with a focus on offshore wind. Moreover, MC proactively engages in new business opportunities including a virtual power plant (VPP) business that utilizes Lawson convenience stores as well as an off-grid distributed renewable energy project in Africa.
Under the 2ºC Scenario, looking towards transitioning to a low-carbon/decarbonized society, with increasing demand for renewable energy (solar and wind) and structural changes to the power business (growing need for grid stabilization accompanying an increase in VRE*5), services using batteries, electric vehicles (EV) and plugin hybrid vehicles (PHV) are also expected to expand. In light of this, MC will promote renewable energy and businesses that support renewable energy. In the medium- to long-term, MC will appropriately grasp the outlook for energy demand taking into account factors such as electrification and energy efficiency, as well as technological trends toward zero carbon intensity, and work to provide new added value including on the demand side with demand response*6 initiatives (battery storage, EV, hydrogen, etc.)
  1. *5 Variable renewable energy sources such as solar and wind power that have fluctuating output.
  2. *6 To achieve a stable electricity supply by balancing demand (consumption) and supply (generation) of electricity, a system that reconfigures how electricity is consumed so that consumers curb usage when electricity tariffs are set or incentives paid.
  2°C Scenario (SDS)
Awareness of the
Business Environment
Under the 2°C Scenario, MC anticipates an acceleration globally in the spread of EV (including hybrids) with low CO2 emissions as well as renewable energy generation, mainly wind and solar power, primarily in Europe and North America. Accordingly, MC expects a further increase in copper demand due to high amounts of copper usage, given its high conductivity and low transmission loss compared to equipment in conventional gasoline vehicles and thermal power plants. Meanwhile, on the supply side, many mines face difficulties in expanding or developing, so MC anticipates a further tightening of supply and demand for copper.
Policies and Initiatives Based on the Awareness of the Business Environment
Currently, MC participates in copper projects in Chile and Peru and retains a production share of 250,000 tons/year. Going forward, MC will position copper together with metallurgical coal as one of the pillars of its mineral resources business. By working to improve the quality of our existing assets while investigating opportunities to develop new quality projects, we will fulfill our responsibility to provide a stable supply of copper to customers.
Under the 2°C Scenario, MC anticipates a further tightening of supply and demand for copper. MC will steadily capture business opportunities associated with increased copper demand from the spread of EVs (including hybrids) and renewable energy.
In addition, as a measure to reduce environmental impact, we are in the process of switching to renewable energy for all electricity used by copper mining operations in which we are invested.
Thermal coal has been excluded from this analysis, given that MC sold all of its thermal coal interests as the result of a review conducted from the perspective of strengthening its business portfolio.
3) Incorporation into business strategy
Out of the seven businesses subject to monitoring mentioned above, for those that are exposed to a high level of transition risks, MC considers the 2°C Scenario as a low-carbon scenario when establishing business strategies and incorporate it into the strategies accordingly.
電力ソリューショングループCEOオフィス (EZ-K), 金属資源グループCEOオフィス(KZ-B)

Physical Risks

Physical climate risks (e.g. floods, droughts and water shortages, sea temperature and sea level rises) could affect the operations of some of the MC Groupʼs businesses.
Countermeasures are being implemented at the business level, taking into account the characteristics of each business. Specifically, MC is taking the following actions for its metallurgical coal, copper and salmon farming businesses, which are considered to have particularly high exposure to physical climate risks among MC’s businesses.

Metallurgical coal business / Australia

In Queensland, Australia, where MC’s metallurgical coal business is located, floods or large waves caused by cyclones have the potential to disrupt operations. Measures have been taken to help mitigate against these risks and improve the operation's resilience to cyclonic events.
At the coal terminal, its latest port berth infrastructure has been installed designed to withstand a 1 in 1000 year wave event factoring in rises in sea levels and cyclone impacts due to climate change. An addiotional project is currently underway to upgrade an older berth to the same design standard. 
At the coal mines, investments have been made to improve resistance of the sites to flooding since the last flood events in 2011. These include the installation of floods levees to prevent flood water entering pits, pumping and water pipeline systems to move surplus water around and between mine sites and water storage locations, and additional excess water discharge infrastructure. All the mine sites undertake annual preparation audits prior to the onset of the wet season to ensure readiness and regularly review actual water storage levels against protocols.

Copper business / South America

In the event that droughts or water shortages occur in South America, where MC’s copper operations are located, operations could be affected due to shortages of fresh water from rivers or groundwater. Accordingly, MC is making efforts to reduce its dependency on fresh water intakes from rivers or groundwater supplies through measures such as investing in desalinization plants and improving water reuse efficiency.

Salmon farming business (Europe / South America / North America)

In the event sea temperatures and sea levels rise globally, areas suitable for aquaculture could be affected, and production costs and fish mortality could increase due to more frequent outbreaks of diseases and algae blooms. At MC’s aquaculture subsidiary, salmon farming is conducted with attention to the possibility that the value of investments could be negatively impacted by rises in sea temperatures and sea levels. Accordingly, salmon farming operations are conducted in areas that are more resilient to rises in sea temperature (such as Northern Norway and southernmost Chile).
Taking account of potential physical risks, besides monitoring water temperature and quality data on a site-by-site basis, research about measures to deal with problems associated with rising sea temperatures, such as diseases, is also being conducted.

In order to comprehensively understand the potential physical risks that climate change poses to the MC Group’s business, MC has started an assessment based on the following process. MC will disclose the results of the assessment upon completion.


MC has a large global portfolio of companies with diverse and widespread assets. To determine which of the MC Group’s assets are potentially most exposed to the physical impacts of climate change, MC is undertaking the following systematic process:

  • Phase 0: Identification of material assets
    To determine MC Group assets that are material to the operational performance of MC, MC first identified a subset of subsidiaries/affiliates that have the greatest potential to have a material financial impact on MC using financial metrics such as profits and total asset values. Each of these subsidiaries/affiliates then identified assets that are material to their business.
  • Phase 1: Screening
    MC engaged an independent specialist consultant to conduct a climate hazard screening exercise to identify high-risk assets that should be analyzed in Phase 2. This assessment focused on 74 assets across 38 MC subsidiaries/affiliates located in 13 countries, identified in Phase 0 to evaluate exposure of each asset to the hazards through to 2030* using observational data and climate model projections.
    * The coastal flooding assessment considered exposure to sea level rise through the year 2050
    <Assets included in Phase 1>
    • Coastal flooding (storm surges, sea level rise)
    • Stormwater flooding
    • Wildfires
    • Extreme heat
    • Tropical cyclones
    • Water stress
    Intergovernmental Panel on Climate Change (IPCC)’s Representative Concentration Pathway (RCP) 8.5 scenario
    <Time horizons>
    <Rating system for Phase 1>
    Each asset was assigned a numerical exposure score for each climate hazard. Each asset was then given a qualitative exposure rating (‘High’, ‘Medium’, or ‘Minimal’) based on the asset’s overall numerical hazard exposure score.
    Hazard Exposure Rating Description
    High Overall hazard score greater than 30
    Medium Overall hazard score 15-30
    Minimal Overall hazard score less than 15
  • Phase 2: Detailed analysis
    On the basis of the Phase 1 results, 18 of the high ranked assets located in 8 countries were selected for a more detailed climate hazard analysis in Phase 2. The purpose of the Phase 2 analysis was to perform a more detailed analysis of the current and anticipated physical climate hazards for each asset through to 2080, using observational data, climate model projections and information such as previously experienced impacts due to physical climate hazards.
    IPCC’s RCP 8.5 scenario and RCP 4.5 scenario
    <Time horizons>
    2030, 2050, 2080
    <Rating systmen for Phase 2>
    The potential severity of climate hazards at each asset were ranked by considering the probability that the climate hazard will occur, the magnitude of the hazard’s impact on the asset and the likelihood of the impact occurring and were ranked on a 5-level color scales (red, orange, yellow, green and gray) which indicates the priority for action in developing adaptation strategies.
    Hazard Rating Description of Hazard Severity and Level of Recommended Action
    4 Present-day hazards causing material impacts. Adaptation strategies should be evaluated and deployed.
    3 Imminent hazards likely to result in material impacts during the planning time horizons. Adaptation strategies should be developed in the near future.
    2 Lower likelihood or lower impact hazards which may occur during the asset hold period but are unlikely to cause material impacts and/or for which more information is required. Impacts should be monitored but may not need action at this time.
    1 Hazards currently modeled to have minimal impact and/or to occur after the planning time horizons; may be re-evaluated in the future.
    0 Site is not exposed to this hazard.
  • Phase 3: Consideration of improvement plans
    Based on the results of this assessment, MC will evaluate existing adaptation/resilience measures already in place and consider improvement plans as necessary.

Incorporation into Business Strategy

The above assessment will allow MC to identify assets that are most exposed to climate hazards and will enable MC to prioritize adaptation measures and incorporate them into business strategy.

サステナビリティ・CSR部 サステナビリティ企画チーム(PQ-C)

Risk Management

MC regularly assesses which climate-related risks and opportunities warrant the most attention through both regular internal and external surveys, and makes official determinations and assessments at the Sustainability & CSR Committee, which consists of Group CEOs from each of MC’s Business Groups. The specified risks and opportunities are applied under MC’s sustainability promotion framework from two perspectives: Strategic Planning and Project-by-Project Business Management.

Screening Process for Loan and Investment Proposals

When reviewing and making decisions on loan and investment proposals, MC has adopted a process in which the Investment Committee deliberates all proposals to be discussed by the Board of Directors and the Executive Committee comprehensively based not only on economic aspects, but on ESG factors as well. By having the General Manager of the Corporate Sustainability & CSR Department take part in Investment Committee meetings as a committee member, MC has put in place a screening process to facilitate decision-making that takes into account environmental and social impacts. Besides screening new and exit proposals, the Investment Committee also strives to help make improvements to existing business investees by monitoring their management practices. From the perspective of climate change-related transition risks and opportunities, review of proposals and decision-making takes into consideration quantitative data such as greenhouse gas emissions as well as national policies and industry trends.

Reference:For information on measures to address various ESG-related risks, please see the risk management information provided in each section.

サステナビリティ・CSR部 ステークホルダーエンゲージメントチーム(PQ-E), サステナビリティ・CSR部 サステナビリティ企画チーム(PQ-C)

Metrics and Targets

MC has set the following climate-related targets to capitalize on opportunities and mitigate risks on a consolidated basis.

Target 1:Greenhouse Gas (GHG) Emissions Reduction Targets
  • Net zero GHG emissions by 2050, and a new FY2030 target with a detailed reduction plan.
  • Emissions halved by FY2030 through portfolio replacement driven predominantly by divestment of thermal power assets.

  1. *1 The above figures represent the Scope 1 and Scope 2 emissions of MC and its consolidated companies, including affiliates, based on the equity share approach (however, general investments are not included).Furthermore, (1) base year figures include a total 2.71 million tons CO₂e from thermal power generation and natural gas projects, which comprises (i) assumed peak emissions from pre-operational committed projects and (ii) projected full-capacity emissions for partially-operational projects; and (2) Scope 2 emissions are calculated using the market-based method and, following a review of the GHG Protocol’s scope definitions, no longer include Scope 1 and Scope 2 emissions of franchisees. (Based on (2) above, the previously announced Scope 1 and Scope 2 emissions total of 9.19 million tons CO₂e, calculated under the GHG Protocol’s financial control approach, would be equivalent to 7.93 million tons CO₂e.)
  2. *2 FY2020 is set as the new baseline, as it provides the most accurate affiliate data that was previously unavailable, e.g. Scope 2 market-based method emissions. The data are currently under detailed examination and may be subject to minor revisions.
  3. *3 Any residual emissions, after reduction efforts have been made, will be neutralized using internationally-accepted offsetting methods including carbon removal.
  1. ◆ Management and disclosure of Scope 3 emissions of particularly large emission categories, including those of affiliated companies’ emissions as described in *1 above, will be considered in tandem with future international debate and frameworks.
  2. ◆ The specific reduction plan and measures for the GHG emissions reduction targets will be adjusted as required in line with progress of technological developments, economic viability and policy/institutional support.
  • Target 2:Non-fossil %
    Aim to reduce existing thermal power capacity and switch to zero-emission thermal power, targeting 100% non-fossil by 2050.
  • Target 3: Renewable Energy
    Doubling MC's renewable energy power generation capacity by the fiscal year ending March 31, 2031 (compared to the fiscal year ended March 31, 2021 level).

Reference:For the relevant data, please see the Initiatives, Performance Data and Additional Reference Data sections, and the Water Resources section.

サステナビリティ・CSR部 サステナビリティ企画チーム(PQ-C), 電力ソリューショングループCEOオフィス (EZ-K)


Carbon Reduction / Decarbonization Projects

MC considers transitioning to a low-carbon society to be one of the key issues for management to address and respond to, and through its businesses, MC is working to reduce and eliminate carbon in a variety of fields.
In particular, under the name of Energy Transformation (EX), we are taking on the challenge of reforming the energy field with a view to a low-carbon / decarbonized society, and evolving our energy-related business portfolio in the process. By addressing the common issue of decarbonization across all industries in this way,
we aim to both meet environmental challenges and fulfill our social mission of providing a stable supply of energy, which will lead to the sustainable growth for MC over the medium- to long-term.

サステナビリティ・CSR部 ステークホルダーエンゲージメントチーム(PQ-E), サステナビリティ・CSR部 サステナビリティ企画チーム(PQ-C), 食品産業グループCEOオフィス 経営計画ユニット(LI-F)

Greenhouse Gas Emission Reduction Activities

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【IIF野田ロジスティクスセンター(産業ファンド)】/CASBEE、DBJ Green Building認証

Theme thumb  %e3%83%9f%e3%83%a5%e3%83%bc%e3%82%b6%e5%b7%9d%e5%b4%8e


Theme thumb  %e5%a4%a7%e9%bb%92%e7%94%ba %e8%88%aa%e7%a9%ba%e5%86%99%e7%9c%9f


MC has set greenhouse gas reduction targets on a consolidated basis and works with MC Group companies on emissions reduction initiatives. Each of MC’s Business Groups (including the Corporate Staff Section) establish their own emission reduction plans utilizing EMS (Environmental Management System), thereby ensuring that measures to reduce emissions are uniquely tailored to each business. MC will continue to confirm progress on a regular basis, make policy improvements and share best practices.

MC, which has approximately 1,700 group companies, is working to ascertain and reduce greenhouse gas emissions at the Group company level. Every year, each Business Group identifies priority subsidiaries and affiliates, checks their reduction plans and follows up on their progress. In the year ended March 2021, a major update of the environmental performance survey was conducted, expanding the survey’s scope. Through this and other means, we are continuously striving to improve the accuracy of both qualitative and quantitative data on greenhouse gas reduction activities and to obtain a timely understanding of the results.


MDP, one of MC’s consolidated subsidiaries, is promoting the reduction of greenhouse gases in metallurgical coal business (BMA) in Australia together with its partner, BHP. BMA is considering various reduction initiatives such as renewable energy procurement, methane gas reduction and diesel displacement. In 2020, BMA signed a five-year contract to switch half of the electricity demand of the entire mine to electricity derived from low-carbon power sources such as renewables, and plans to reduce its Scope 2 emissions of the project by about 50% by 2025. The cumulative reduction amount would be approximately 500,000 tons (MDP portion). The contract will support the development of new solar and wind farm in Queensland as well as contribute to transition to sustainable energy use and new job opportunities in the region.

Mitsubishi Corporation Life Sciences Limited

Mitsubishi Corporation Life Sciences (MCLS), an MC subsidiary, is contributing to society by working to achieve sustainable development that takes the environment into account. MCLS has taken steps to reduce its environmental impact. At its main production site, the Saiki Plant, belonging to the wholly-owned subsidiary Kohjin Life Sciences, it has introduced an innovative method called gas turbine combined cycle, which combines gas turbine cogeneration with existing steam turbines. This initiative received an award for excellence in the industrial category at the Cogeneration Grand Prix in the fiscal year ended March 2021, hosted by the Advanced Cogeneration and Energy Utilization Center.
In June 2021, Kohjin Life Science's cogeneration project was registered under the J-credit system in accordance with its implementation guidelines.

Reference:J-Credit Scheme

Major reduction activities at MC Group companies

Reference:CDP Climate Change 2021 Response

Stage of development Number of initiatives Estimated total annual savings in CO2 equivalent emissions (CO2/tons)
Under investigation 3 -
To be Implemented 3 467,693
Implementation Commenced 5 832
Implemented 3 764


Participation in a low-carbon society promotion campaign

We support the Ministry of the Environment's "Fun to Share" and "Cool Choice" campaigns, promote our greenhouse gas reduction efforts, and widely disclose the details of our efforts.

複合都市開発グループCEOオフィス(SX-C), 金属資源グループCEOオフィス(KZ-B), 食品産業グループCEOオフィス 経営計画ユニット(LI-F)

External Collaboration

Collaboration with Various Organizations

MC recognizes the necessity of collaborating with a wide range of stakeholders including governments, companies and industry associations in order to achieve the transition to a low-carbon / decarbonized society.
Accordingly, MC proactively participates in a number of initiatives with external stakeholders.

Industry Groups: When assessing whether to join or continue membership with an industry group, MC confirms whether the group’s initiatives related to climate change are consistent with MC’s Basic Policy on Climate Change. Through active participation in the discussions of climate change working groups, with a focus on organizations including the Japan Business Federation (Keidanren), the Japan Foreign Trade Council and the World Business Council for Sustainable Development (WBCSD), each of which MC is a member of, MC is promoting initiatives to contribute to the transition to a low-carbon / decarbonized society.
Government/ Public Office: MC supports initiatives that contribute to a low-carbon society such as the expansion of renewable energy, the development and implementation of next-generation technologies such as CCUS and hydrogen, as well as increased disclosure of ESG information, including about climate change. MC participates in training seminars and also engages in individual meetings and discussions on topics related to initiatives backed by Japanese government bodies including the Ministry of Economy, Trade and Industry and the Ministry of the Environment such as expanding utilization of the TCFD guidelines and renewable energy usage.
MC actively participates in activities to support the response of Japanese companies to climate change, in particular starting with the formulation of green investment guidance as a planning committee member company of the TCFD Consortium.

Reference: CDP Climate Change 2021 Response
* Please refer to C12.3

Responding to CDP

MC actively disseminates information regarding its measures related climate change to its various stakeholders around the world. MC engages with CDP, an NGO which holds the world’s largest database of corporate disclosures on climate change initiatives, and since the fiscal year ended March 2004, MC has responded to the CDP Climate Change Questionnaire, which is used for evaluating the climate change management of companies. For further information, refer to MC’s CDP Climate Change 2021 Response.

Reference: CDP Climate Change 2021 Response

サステナビリティ・CSR部 ステークホルダーエンゲージメントチーム(PQ-E)


Environmental Performance (non-consolidated)
  2017.3 2018.3 2019.3 2020.3 2021.3
CO2 Emissions*1*2
(Unit: thousand t-CO2)
18.8 16.5 11.8 11.1 9.3
Energy Consumption*2 (Unit: GJ) 346,170 305,339 221,302 207,159 177,178
Electricity Consumption (Unit: MWh) 28,682 24,724 16,567 15,566 13,067
CO2 Emissions from Logistics*3 (Unit: thousand t-CO2) 57 50 45 40 26

Scope of Aggregation (non-consolidated):
• CO2 emissions, energy consumption, electricity consumption and CO2 emissions from logistics: Head Office, domestic branches and offices, training centers and other facilities

Environmental Performance (consolidated)
  2017.3 2018.3 2019.3 2020.3 2021.3
CO2 Emissions*1*2 (Unit: thousand t-CO2e) 9,788 7,963 7,642 9,437 9,185
CO2 emissions per total assets*1*2*4 (Unit: million t-CO2e/trillion yen) 0.79 0.62 0.57 0.68 0.64
Components Scope 1 emissions (excluding 6.5 gases)*1*2 (Unit: thousand t-CO2) 4,639 4,472 4,195 6,006 5,925
Scope 1 emissions (6.5 gases only)*1*2 (Unit: thousand t-CO2e) 1,322 997 967 878 848
Scope 2 emissions*1*2 (Unit: thousand t-CO2) 3,827 2,494 2,480 2,553 2,411
Energy Consumption (Unit: GJ)*1*2 92,607,818 70,649,565 71,669,148 106,075,971 103,990,961
Electricity Consumption (Unit: MWh)*1*2 5,271,214 4,266,241 4,268,734 4,399,057 4,165,874
Scope 1 Emissions Data for Greenhouse Gases (6.5 gases)*1*2 other than CO2 from Energy Sources from Business Activities
(Unit: thousand t-CO2e)
    2017.3 2018.3 2019.3 2020.3 2021.3
Total amount 1,553 997 967 878 848
Components Carbon dioxide(CO2 53 55 47 8 8
Methane(CH4 1,500 942 920 870 840
Dinitrogen monoxide(N2O) 0.1 0.008 0.01 0.3 0.4
Hydrofluorocarbons (HFCs) 0 0 0 0 0
Perfluorocarbons(PFCs) 0 0 0 0 0
Sulphur hexafluoride(SF6 0 0 0 0 0
Nitrogen trifluoride(NF3 N/A N/A N/A N/A N/A
Emissions by Segment
(Unit: thousand t-CO2e)
  2017.3 2018.3 2019.3 2020.3 2021.3
Natural Gas Group 358 260 263 245 350
Industrial Materials Group 95 128 130 149 125
Petroleum & Chemicals Solution Group 383 368 223 165 123
Mineral Resources Group 5,071 2,889 2,940 2,872 2,782
Industrial Infrastructure Group 13 14 14 83 86
Automotive & Mobility Group 16 17 16 20 15
Food Industry Group 1,106 1,107 1,160 1,195 1,135
Consumer Industry Group 1,299 1,355 1,392 1,523 1,442
Power Solution Group 1,624 1,762 1,486 3,168 3,111
Urban Development Group 48 48 7 6 5
Corporate Staff Section 19 17 12 11 9

Scope of Aggregation (consolidated)
• CO2 emissions, emissions of 6.5 gases, energy consumption, electricity consumption: parent company and consolidated subsidiaries

  1. *1 Effective from the fiscal year ended March 31, 2017, emissions from projects with high communality, including power generation and heat generation (utility business), as well as joint operations (jointly managed projects), were included in the calculations. Furthermore, while emissions from franchises are generally not included in Scope 1 and 2 emissions, MC includes such emissions in cases where it is deemed appropriate for such emissions to be managed as part of MC’s emissions, taking into account the relationship with the relevant company. While the results for the fiscal year ended March 31, 2021 were being compiled, the environmental data for the previous fiscal years was also adjusted.
  2. *2 The following metrics were adopted as the basis for calculating greenhouse gas emissions.
    • Direct CO2 emissions from fuel consumption
    The Greenhouse Gas Protocol (GHG Protocol) “Emission Factors from Cross Sector Tools (Mar 2017)” (WRI/WBCSD)
    • Emissions of greenhouse gases from business activities other than CO2 from energy sources (6.5 gases)
    Greenhouse Gas Emission Calculation and Reporting Manual (Version 4.2) (July 2016, Ministry of the Environment and Ministry of Economy, Trade and Industry)
    • Indirect CO2 emissions from electricity consumption, etc.
    Emissions coefficients by country for the fiscal year ended March 2015 from IEA CO2 Emissions from Fuel Combustion (2016 edition)
  3. *3 Data collected in compliance with the Act on the Rational Use of Energy in Japan. Logistics figures cover domestic (Japan) transport where MC is the cargo owner.
  4. *4 MC adopted a policy which aims to reduce greenhouse gas (GHG) emissions per total assets by 25% compared to fiscal year ended March 2017 levels by 2030. The total assets used for this target represent the numerical values within the emissions reporting calculation range, which differ from the total assets reported in MC’s financial reports.
  5. *5 As stated in *4 above, up to the end of FY2020, MC had set a target to reduce GHG emissions per unit of total assets, and in October 2021, this was replaced with a new target to reduce total emissions. (Reference: Metrics and Targets)
サステナビリティ・CSR部 ステークホルダーエンゲージメントチーム(PQ-E)

Independent Practitioner’s Assurance

ESG Data marked with a star (⋆) for the year ended March 2021 has received independent practitioner’s assurance from Deloitte Tohmatsu Sustainability Co., Ltd.

Reference:Independent Practitioner’s Assurance Report

サステナビリティ・CSR部 ステークホルダーエンゲージメントチーム(PQ-E)

Additional Reference Data

Equity Share of Oil and Gas Upstream Production

MC’s equity share of oil and gas upstream production is as shown below. Burning natural gas results in relatively lower GHG emissions compared to other fossil fuels, and demand for natural gas is forecast to continue to increase in line with the transition to a low-carbon society. Accordingly, MC has positioned natural gas as a core business. Currently, natural gas accounts for approximately 80% of MC’s equity share of oil and gas production.

Equity Share of Oil and Gas Upstream Production (Annual Average)*1

MC’s Reserves(2P*3

  1. *1 Includes oil equivalent and consolidated subsidiaries and equity-method affiliates
  2. *2 Participating interest equivalent. Includes reserves based on original standards set by MC
  3. *3 Confirmed reserves + estimated reserves
Involvement in LNG Projects
Existing Projects in Production
Project Beginning of
Annual Production Capacity
(Million Ton)
Buyer Seller Shareholding MC’s
Total MC’s share
Brunei 1972 7.2 1.8 25% JERA, Tokyo Gas, Osaka Gas, etc. Brunei LNG Brunei Gov.(50%), Shell(25%), MC(25%) 1969
Malaysia I
1983 8.4 0.42 5% JERA, Tokyo Gas, Saibu Gas, etc. Malaysia
Petronas(90%), Sarawak Gov.(5%), MC(5%) 1978
Malaysia II
1995 9.6 0.96 10% Tohoku Elec., Tokyo Gas,
Shizuoka Gas,
Sendai City Gas Authority, ENEOS Holdings, CPC, etc.
Petronas(80%), Sarawak Gov.(10%), MC(10%) 1992
Malaysia III
2003 7.7 0.31 4% Tohoku Elec., Tokyo Gas, Osaka Gas, Toho Gas, JAPEX, Korea Gas, Shanghai LNG, etc. Malaysia
LNG Tiga
Petronas(60%), Sarawak Gov.(25%), JXTG Holdings(10%), DGN (MC /JAPEX =80:20)(5%) 2000
North West
1989 16.9 1.41 8.33% Tohoku Elec., JERA, Tokyo Gas, Shizuoka Gas., Toho Gas, Kansai Elec., Osaka Gas, Chugoku Elec., Kyushu Elec., Guandong Dapeng LNG, etc. NWS Shell, BP, BHP, Chevron, Woodside, MIMI [MC/Mitsui & Co.=50:50], 1/6 respectively 1985
Oman 2000 7.1 0.20 2.77% Osaka Gas, Korea Gas, Itochu Corp., BP, etc. Oman LNG Oman Gov.(51%), Shell(30%), Total(5.54%), MC(2.77%), etc. 1993
Qalhat 2005 3.3 0.133 4% Osaka Gas, MC, Union Fenosa Gas, etc. Qalhat
Oman Gov.(46.8%), Oman LNG(36.6%), Union Fenosa Gas(7.4%), Osaka Gas(3%), MC(3%), etc. 2006
Russia Sakhalin II Oil: 2008
9.6 0.96 10% JERA, Tokyo Gas, Kyushu Elec., Toho Gas, Hiroshima Gas, Tohoku Elec., Saibu Gas, Osaka Gas, Korea Gas, Shell, Gazprom, etc. Sakhalin
Gazprom(50%+1share), Shell(27.5%-1share), Mitsui & Co.(12.5%), MC(10%) 1994
*PSA execution
2009 7.6 0.75 9.92% Tohoku Elec., Kansai Elec., SK E&S, POSCO, Fujian LNG, Sempra Energy, etc. Tangguh BP(40.2%), MI Berau [MC/Inpex Corporation 56:44](16.3%), KG Berau Petroleum [MIBJ (MC/Inpex Corporation 56:44) 16.5%, Mitsui & Co. 20.1%, JX Nippon Oil & Gas Exploration Corporation 14.2%, Japan Oil, Gas and Metals National Corporation 49.2%](8.6%), etc*2 2001*3
Donggi -
2015 2.0 0.9 44.9% JERA, Korea Gas, Kyushu Elec., etc. PT. Donggi-
Senoro LNG
Sulawesi LNG Development Limited[MC/Korea Gas=75:25](59.9%), PT Pertamina Hulu Energi(29%), PT Medco LNG Indonesia(11.1%) 2007
Wheatstone 2017 8.9 0.28 3.17% Chevron, KUFPEC, Woodside, Kyushu Elec., PEW, etc. Equity
Lifting Model*1
Chevron(64.136%), KUFPEC(13.4%), Woodside(13%), Kyushu Elec.(1.464%), PEW(8%; of which MC holds 39.7%) 2012
Cameron 2019*5 12.0 4.0*4 33.3%*4 MC, Mitsui & Co., Total (Toller) Equity
Sempra Energy(50.2%), Japan LNG Investment [MC/NYK=70:30](16.6%) Mitsui & Co.(16.6%), Total(16.6%) 2012
  Total 88.3 8.12            
  1. *1 LNG is procured and sold by each company according to the ratio of interest / equity in the liquefaction contract.
  2. *2 The quantity of liquefaction that MC outsources to Cameron LNG.
  3. *3 The first train began production in May 2019, the second in December 2019 and the third in May 2020.
Projects under Construction
Project Beginning of
Annual Production Capacity
(Million Ton)
Buyer Seller Shareholding MC’s
Total MC’s share
2022 3.8 0.38 9.92% PLN, Kansai Elec. Tangguh Same as above Same as above
LNG Canada Mid 2020’s 14.0 2.1 15% Shell, Petronas, PetroChina, MC, Korea Gas Equity
Shell(40%), Petronas(25%), PetroChina(15%), MC(15%), Korea Gas(5%) 2010
  Total 17.8 2.48            
*4 Business Contribution: Investment in exploration & development (upstream), Investment in liquefaction plant, Marketing and/or import agent, Shipping
Cogeneration Projects
(As of September 30, 2020)
Country Power plant Fuel Net equity basis
(Net, 10,000 kW)
Japan MCKB Energy Services Gas、Biogas 3.2
Japan MC Kawajiri Energy Services Gas 3.8
Japan MC Shiohama Energy Services Gas、Coal 9.8
Japan MCJ Energy Services Gas 2.2
Japan Gonoike Bioenergy Services Biomass exclusive combustion 1.1
Japan MCM Energy Services Coal、Biomass mixed combustion 5.2
Japan MC Hokuetsu Energy Services Gas 2.0
Japan Mizushima Energy Center Coal 5.6
Gas-Fired Projects
(As of September 30, 2020)
Country Power plant Net equity basis
(Net, 10,000 kW)
USA Frontier 23.2
USA Gateway 23.5
USA Georgia 28.4
USA Alabama I 29.8
USA Wildflower/Indigo 13.9
USA Wildflower/Larkspur 9.3
USA Mariposa 20.0
USA Sentinel 40.0
USA CPV Valley 36.0
USA Westmoreland 35.3
Mexico Tuxpan II 24.8
Mexico Tuxpan V 24.8
The Netherlands Gas generation owned by ENECO 75.4
Jordan IPP-3 20.1
Qatar Facility D 50.4
Philippines Ilijan 26.5
Thailand Gas generation owned by EGCO 19.8
Japan Naoetsu Energy Center 10.7
Coal-fired Power Businesses
(As of September 30, 2020)
Country Power Plant Fuel Net equity basis
(Net, 10,000 kW)
Thailand Coal-fired power projects owned by EGCO Coal 8.9
Taiwan Ho-Ping Coal 26.4
Japan Suzukawa Energy Center Coal 7.8
Japan Nippon Paper Ishinomaki Energy Center Coal
Biomass Co-generation
天然ガスグループCEOオフィス (NX-B), 電力ソリューショングループCEOオフィス (EZ-K)