MC recognizes the importance of striving to create and enhance environmental value, as stated in the Environmental Charter, by undertaking conservation activities and reducing our environmental footprint, including through the prevention of pollution. Moreover, in terms of company-wide management of compliance with environmental laws, regulations, etc., MC takes responsibility as a business that produces waste. To ensure rigorous compliance with laws and regulations related to preventing pollution as well as the reduction, reuse and recycling of waste within MC, internal notifications are sent out, as well as announcements and alerts about meetings and other related events. Furthermore, MC has formulated guidelines and standards for responding to oil spills and soil contamination and disseminates this information internally to ensure thorough understanding.
MC conducts an environmental performance survey for all MC Group companies in order to manage pollution prevention as well as waste reduction, reuse and recycling initiatives on both a non-consolidated and an MC Group-wide basis. On a non-consolidated basis, we set and monitor sustainable and effective reduction targets related to the volume of waste produced in conjunction with Head Office activities, in order to reduce, reuse and recycle waste through operation of environmental management systems (EMS).
| Items | FY2022 targets | FY2022 results | FY2023 targets |
|---|---|---|---|
| Pollution prevention | Select projects and conduct oil spill risk survey biannually | -(Oil spill risk survey conducted biannually) | Select projects and conduct oil spill risk survey biannually |
| Waste production*1Waste produced: Waste produced in conjunction with Head Office activities*1 | Continue waste emission reduction activities and grasp emission amount*4Due to the COVID-19 pandemic, MC mainly focused on qualitative targets based on the office activity manual.*4 | 485.4 tons (+12.6% increase from 2022.3 results) |
Continue waste emission reduction activities （Recycling rate of 96％ or more） |
| Toxic waste emissions*2The emission amount of specially controlled industrial waste under the Waste Management Law （Non-consolidated）*2 |
Accurately grasp the emission amount and continue proper treatment and disposal of the specially controlled industrial waste under the Waste Management Law | 159.8tons Recycled 100% of infectious waste emitted from in-house clinic, and disposed PCB waste properly and sequentially within legal deadline |
Reduce the emission amount from previous year and continue proper treatment and disposal of the specially controlled industrial waste under the Waste Management Law |
| Use of raw materials*3Use of raw materials: Volume of copy paper used at the Head Office*3 | Continue paper reduction and other efforts, as well as an accurate grasp of reduction figures*4Due to the COVID-19 pandemic, MC mainly focused on qualitative targets based on the office activity manual.*4 | 14,192thousand sheets (+14.3% increase from 2022.3 results) |
Continue paper reduction and other efforts(3% reduction from previous year) |
| Officer in Charge | Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO) |
|---|---|
| Deliberative Body (A subcommittee under the Executive Committee, a management decisionmaking body) |
Sustainability Committee Important matters related to preventing pollution deliberated by the Sustainability Committee are formally approved by the Executive Committee and put forward or reported to the Board of Directors based on prescribed standards. |
| Department in Charge | Sustainability Dept. |
When reviewing and making decisions on loan and investment proposals, MC conducts a comprehensive screening process which considers not only economic aspects, but ESG factors including pollution prevention as well as the reduction, reuse and recycling of waste. Besides screening new investment and exit proposals, MC also strives to make improvements to existing business investments by monitoring their management practices. Regarding oil spills in particular, oil spill risk surveys are conducted regularly, confirmations are made that oil spill accident prevention and risk management frameworks have been established, and training is conducted to ensure the thorough dissemination of information on these topics. Through these measures, MC is ensuring appropriate risk management to prevent oil spills from occurring.
〈Office Management〉
〈Business Activities〉
The Japanese clothing market has shrunk in scale from about ¥15 trillion at the start of the 1990s to about ¥8-9 trillion today. Conversely, the supply of clothing is said to have doubled from 2 billion to 4 billion items. In addition, the unit purchase price and unit import price have fallen to around 60% of their 1991 levels.*Understanding of the environment based on the data released by the Japanese Ministry of Economy, Trade and Industry (METI).*
Although many improvements have been made in supply chains relative to the 1990s, the balance between production, supply, sales, purchase and end use has seen changes. While consumers are now able to purchase products at low prices and have a wealth of choices, society is questioning the environmental impact and mass waste associated with the increased supply of goods throughout the industry.
Including its predecessor, our subsidiary Mitsubishi Corporation Fashion Co., Ltd. has been supplying clothing products to apparel companies for more than 30 years. MC Fashion has been working to address overproduction and mass waste caused by gaps between supply and demand, and in July 2020, it launched its in-house brand “THE ME,” opening a showroom-style store in Jingumae, Tokyo.
Rather than mass production, the concept behind “THE ME” is to create clothes to suit each individual. With this in mind, “THE ME” has adopted a unique model of producing only what consumers want to buy and delivering it to a designated location within a short period of time, without holding any product inventory. Moreover, since this is a style of consumption that requires a waiting time forusers after placing an order, "THE ME" also offers new consumer values such as “size correction" and "customization.”
As a result of industry efforts to date, a style of product supply similar to “THE ME” already exists, as represented by made-to-order suits. However, “THE ME” aims to optimize overall supply rather than focus on specific items. As such, it covers all products including T-shirts, dresses, skirts and coats, distinguishing itself by incorporating extensive use of IT, not only at the point of contact with consumers, but also in the supply chain.
With “THE ME,” MC Fashion engages in a series of production, supply, sales and purchasing processes. In doing so, it aims to identify key issues and establish a “single model” by making a series of changes to its business model and through the adoption of IT. The goal behind “THE ME” is to provide this model to as many companies as possible and to play a role in optimizing the supply-demand balance.
Together with its subsidiary Lawson, Inc., MC is implementing initiatives using AI and digital marketing to reduce food waste, which has become a pressing issue in recent years.
Since 2015, Lawson has been implementing semi-automated ordering (an AI-driven system that suggests order volumes based on a store’s sales capabilities) to improve the accuracy of store orders. Going forward, Lawson will also make efforts to sell all purchased inventory while improving accuracy through the use of the latest AI technology. Up to now, discount sales for products approaching the end of their shelf lives heavily relied upon the experience of store staff. However, by using AI for guidance on how much to discount prices by and when to do so based on each store’s daily inventory levels, stores are able to avoid having leftover inventory and to conduct sales more efficiently.
MC subsidiary Mitsubishi Shokuhin Co., Ltd. carries out various efficiency measures to optimize its supply chains through collaboration between the manufacturing, distribution and retail sectors. Working jointly with manufacturers and retailers to enhance logistics efficiency and collaborating with retailers to reduce product return rates and optimize inventory have led to reductions in greenhouse gas emissions and waste production.
Cermaq has tested the EU draft for Product Environmental Footprint Category Rules (PEFCR) for unprocessed marine fish on a case study of farmed salmon. In Canada, a third-party circular economy assessment is conducted to identify measures to improve the score. To date, we have been successful in diverting material generated from decommissioning farms from the landfill through various recycling facilities . Cermaq Canada will continue to implement the identified actions to further reduce waste
MC formulated its Oil Spill Risk Guidelines in 2012. On a Groupwide basis, MC strives to prevent oil spills, giving due recognition of the environmental burden they could cause. MC makes project decisions taking into account matters such as the products handled and location of the enterprise, conducts oil spill risk surveys regularly, confirms that oil spill accident prevention and risk management frameworks have been established, and conducts training to ensure the thorough dissemination of information on these topics. Through these measures, MC is ensuring appropriate risk management to prevent oil spills from occurring. In addition, there are no major leaks as far as MC is aware.
As a member of the Japan Foreign Trade Council (JFTC), an industry association for Japanese trading companies, MC is helping to formulate and execute “The Commitment to a Low-carbon Society” advocated by the Japan Business Federation (Keidanren). Based on this plan, we are actively promoting the installation of energy- saving equipment in order to reduce energy consumption on a non-consolidated basis. In addition, as a member of the Global Environment Committee established within the JFTC, MC actively engages in a variety of initiatives including promoting environmental compliance, improving environmental performance and disseminating information about industry initiatives with the aim of creating a low-carbon society and a recycling-oriented society. It is essential for companies to achieve sustainable growth while considering the environment. The entire trading industry, not limited to MC, recognizes the role it needs to play from a long-term and global perspective, and it is working to contribute through business activities.
