One of MC’s Materialities
y is “Addressing Regional Issues and Growing Together with Local Communities,” through which MC strives to contribute to regional development through its business and corporate philanthropy initiatives and grow together with the regions and communities where it operates.
In identifying "Addressing Regional Issues and Growing Together with Local Communities" as one of its Materialities, MC recognizes the value of building relationships with communities for the success of its businesses. Furthermore, by growing together with communities through job creation, promoting community development and procuring raw materials from local communities, MC also strives to minimize negative impacts. Growing together with local communities is equally as important as advancing MC’s businesses and generating financial return. This represents the true spirit of MC, which seeks to simultaneously generate economic, environmental, and societal value.
MC appreciates that local employment and procurement have an important role to play in building positive relationships with and contributing to the sustainable development of the countries and regions in which it operates (as outlined in ISO26000, etc.). MC understands that hiring employees and procuring goods and services from the local areas near to project operations contributes to the sustainable development of the region through local human resource development and through social and economic growth. As a company with business operations in many countries and regions across the globe, MC will endeavor to make economic contributions through its business by way of local employment and procurement, as well as social contributions through various philanthropic efforts, with the aim of growing together with local communities.
MC believes in the importance of minimizing impact on the environment and society when carrying out decommissioning for mining and for oil and gas projects. When carrying out these projects, in order to ensure that measures for future decommissioning are undertaken smoothly and appropriately, MC will, from initial project planning through to operation, carry out environmental impact assessments in accordance with the laws of the countries and regions in which it operates as well as with international principles＊. In addition, MC will engage in dialogue with governments, local communities and other stakeholders in order to develop appropriate decommissioning plans and implement necessary measures such as rehabilitation in order to minimize impact on the environment and communities.
＊ The ICMM (International Council on Mining & Metals) 10 Principles, etc.
|Officers in Charge||Yutaka kashiwagi (Member of the Board, Executive Vice President, Corporate Functional Officer, CDO, CAO, Corporate Communications, Corporate Sustainability & CSR)|
(A subcommittee under the Executive Committee, a management decisionmaking body)
|Sustainability & CSR Committee
Important matters related to communities deliberated by the Sustainability & CSR Committee are formally approved by the Executive Committee and put forward or reported to the Board of Directors based on prescribed standards.
|Departments in Charge||Corporate Sustainability & CSR Dept.|
When reviewing and making decisions on loan and investment proposals, MC not only takes economic factors into consideration, but also places importance on ESG as well. We also take into account revitalization of the local society and economy, the status of the surroundings such as indigenous people and cultural assets, and related factors. Besides screening new investment and exit proposals, MC also strives to make improvements to existing business investments by monitoring their management practices.
In keeping with our belief that MC’s sustainable growth cannot be achieved without realizing a sustainable society, we address our Materiality through both business and philanthropy activities. MC engages in philanthropic activities that are in line with three overarching themes: “Realizing an Inclusive Society,” “Empowering the Next Generation” and “Conserving the Environment.” In addition, MC also provides support for regions affected by natural disasters, which includes recovery efforts for the Great East Japan Earthquake.
Each of our philanthropy activities is conducted with a focus on long-running initiatives in which our employees can take part and which highlight the unique strengths of our company. These contribute to MC’s overall pursuit of businesses that generate value for societies.
MC places great emphasis on deepening employee awareness of the importance of giving back to society. We therefore have taken steps to encourage employee participation in volunteer activities, for example, by establishing a volunteer leave system and by holding in-house volunteer programs during lunch hours. In addition, MC launched a series of relief activities in the immediate aftermath of the Great East Japan Earthquake in 2011, and as of March 31, 2021, a total of 4,958 employees had participated in those activities as volunteers.
MC donates to NPOs, foundations and other organizations that engage in public welfare, educational and environmental initiatives based on a virtual token system. Employees earn tokens by participating in volunteer activities, with each token worth a corporate donation of ¥500. Tokens are awarded not only for volunteer work organized by MC, but also for activities undertaken independently by employees during their private time outside of work. Employees can take up to five days of leave each year to participate in volunteer activities.
Due to the impact of COVID-19, the number of employees taking volunteer leave as well as the total number of volunteer leave days taken in the year ended March 2020 decreased significantly compared to past years. (Past results : 138 employees taking volunteer leave and 166 days of volunteer leave taken in the year ended March 2019, 181 employees taking volunteer leave and 220 days of volunteer leave taken in the year ended March 2018.)
MC launched the DREAM AS ONE. Project in 2014 in order to enhance a long-running program aimed at making sports more accessible for people with impairments. During the fiscal year ended March 2022, roughly 10 different events were conducted, including sports classes for children with impairments, online para-sports classes with para-athletes and online seminar by par-athletes. In addition, six para-athletes belong to MC. MC is also providing scholarships to one student para-athlete, who is continuing their activities to pursue their dreams.
In 2008 MC established the Mitsubishi Corporation Art Gate Program as its corporate philanthropy activities. Until 2020, MC held internal and external exhibitions and charity auction to create opportunities for presentations and support their careers for young artists, who have graduated within the last three years, and MC also provided scholarships for them.(MC has held total of 47 auctions, purchased and sold total of 2,467 works, and has provided scholarships to a total of 160 students for 12 years from 2008 to 2020.)
With the changes in society represented by new lifestyles, artists' production themes and styles are diversifying, in 2021, MC have renewed the Mitsubishi Corporation Art Gate Program, which actively support the growth and creative activities of artists by providing not only financial support but also opportunities to learn and mentoring in accordance with varying stages of their careers of artists.
|Foundations and Funds||Activities||Year of establishment and paid-in capital (cumulative)|
Disaster Relief Foundation
|The Mitsubishi Corporation Disaster Relief Foundation promotes recovery activities in areas affected by the Great East Japan Earthquake through provision of scholarships and grants, as well as industry revitalization and job creation.||Established in 2012
(Including donations through the Mitsubishi Corporation East Japan Earthquake Recovery Fund)
|Mitsubishi Corporation Foundation for the Americas (MCFA)||The MCFA supports NGOs and other organizations engaged in ecosystem preservation, sustainable development, environmental justice, and environmental education in the Americas.||Established in 1991
|Mitsubishi Corporation Fund for Europe and Africa (MCFEA)||The MCFEA supports NGOs and other organizations involved in environmental conservation, related research and education, and poverty alleviation in Europe and Africa.||Established in 1992
MC created a ¥10 billion fund to provide financial support to reconstruction activities during the first four years following the Great East Japan Earthquake, and has undertaken a variety of activities in line with the local needs and conditions in affected areas. In spring 2012, we established the Mitsubishi Corporation Disaster Relief Foundation, which took over the scholarship program and support recovery grants from the original fund while also working to support industrial revitalization and job creation in the affected areas. During the fiscal year ended March 2016, MC decided to donate an additional ¥3.5 billion to fund additional activities. We are continuing our original initiatives and pursuing new projects such as our Fukushima Winery Project, which offers support for the fruit farming industry in Koriyama City, Fukushima Prefecture, through an innovative, vertically integrated business model.
＊ Total financial amounts including the activities of the Mitsubishi Corporation East Japan Earthquake Recovery Fund
MC International Scholarship奨学金授与式・交流会
WCSによるアマゾン・ウォーター・イニシアチブ対象地域 ©Wildlife Conservation Society
MC’s activities in the fields of industry revitalization and job creation involve providing financial support (investment and loans). This money must be repaid; an obligation that creates an appropriate sense of tension which we believe contributes to business continuity. However, a key difference of this system from ordinary financing is that payment for the principal and interest is not paid for up to 10 years until the business gets on track. If the business starts to make a profit, MC receives a portion as a distribution of profits. This profit distribution is not retained in the foundation, but is instead donated to regional governmental organizations and other recovery support funds in line with our basic policy, so that it can be reused for activities to support the recovery of areas impacted by the disaster. By establishing a system to recirculate the recovery funds, MC is promoting further progress towards independence for the regional economies.
Through the Mitsubishi Corporation Foundation for the Americas (MCFA) and the Mitsubishi Corporation Fund for Europe and Africa (MCFEA), MC supports a wide range of initiatives focusing on environmental conservation, education and poverty alleviation. The MCFA is a foundation that seeks to address environmental and societal issues in the Americas. It provides support to NGOs and others engaged in activities related to conservation of biodiversity, sustainable development, environmental justice, and environmental education. Since its establishment in 1991, the MCFA has spent approximately US$12.8 million. Projects supported to date include the US-based Wildlife Conservation Society Initiative’s fisheries improvement and wildlife management initiative in the Amazon river basin, as well as climate change-related research activities. The MCFEA is a fund that seeks to address environmental and societal issues in developing countries in Europe and Africa. The MCFEA supports NGOs and others engaged in activities related to environmental conservation, environmental education and research, and poverty alleviation. Since its establishment in 1992, the MCFEA has spent approximately GBP5.9 million. Currently, the MCFEA supports initiatives including a sustainable cocoa farming project by Rainforest Alliance in the Ivory Coast.
MC has been offering this scholarship program since 1991 with the aim of assisting international students who are studying at Japanese universities on their own expense and who are expected to become future global leaders. In 2008, MC expanded the scope of this program to cover approximately 100 students each year. As of the fiscal year ended March 2022, a total of 1,704 students had been awarded these scholarships. In addition to the scholarship itself, MC typically provides an annual opportunities for recipients to tour sites related to Mitsubishi, as well as to attend a group gathering with fellow scholarship recipients and a reception with MC employees (held online in the fiscal year ended March 2022). Through these activities, MC provides the students with various opportunities to develop their careers and cultivate a better understanding of Japan.
In addition to the Mitsubishi Corporation International Scholarship for Studies in Japan, MC started the MC International Scholarship in 2000 with the aim of supporting overseas university students. As of the fiscal year ended March 2021, a total of approximately 9,500 students have been awarded these scholarships. Aiming to help nurture the young leaders of tomorrow, MC will continue to provide various support in educational fields around the world.
Since its establishment in 1968, MCʼs wholly owned subsidiary Mitsubishi Development Pty Ltd (MDP) has conducted resource mining operations in Australia, while actively undertaking community-based activities. MDP’s 50% owned BMA metallurgical coal business in Queensland, supports local communities in and around BMAʼs core operations through a local purchase program. The program was established to connect local and indigenous businesses to work opportunities, and has created job opportunities for over 8,000 employees. Furthermore, this program has created goods and service opportunities, which have resulted in approximately A$90 million being spent with over 500 local and indigenous suppliers.
When closing mines, the operators of MC’s jointly owned mines develop responsible mine closure plans that take into account social and environmental factors. While complying with laws and regulations, MC and mine operators strive to minimize the impact on the environment and society by communicating with governments and local residents, developing appropriate mine closure plans, and implementing necessary rehabilitation measures.
MC owns Mozal S.A., an aluminum smelting company in Mozambique, through a joint investment with the government of the Republic of Mozambique, the Australian resources company South32 Limited, and the Industrial Development Corporation of South Africa.
Contribution to Mozambique
Most of the aluminum produced by Mozal is exported from Mozambique to other countries. The aluminum produced at Mozal accounts for around 20–30% of the country’s total exports. Today, aluminum is Mozambique’s number two export. Mozal has contributed significantly to Mozambique’s economy, helping to boost the country’s GDP per capita by more than three- fold over the past 25 years since the end of the civil war. The country’s enormous growth is often referred to as the “Miracle of Mozambique."
Mozal currently employs approximately 1,000 full-time employees. Furthermore, the Mozal project has provided indirect employment opportunities to upwards of 10,000 people including subcontractors and stevedores. Locally hired Mozambicans make up more than 95% of the plant’s workforce. Mozal has been recruiting and providing robust education and training to employees since construction of the plant began in 1998. Notably, Mozal conducts extensive education and job training for all of its employees. This is both in an effort to ensure high product quality as well as to give employees necessary health and safety information. The project endeavors to increase opportunities for employees to discuss these matters, and at the same time has also laid out a smooth reporting system throughout the organizational structure. These initiatives have earned MC a strong reputation for developing skilled employees through its education and training initiatives. In addition, secondary processing companies that process Mozambique’s aluminum within the country have also begun operations since 2014, thereby contributing further to the region’s economic development.
Mozal places great emphasis on social contribution activities. Through annual funding of around ¥200 million, Mozal engages in activities such as supporting small businesses in creating employment opportunities, putting in place mechanisms to support education and public health, and activities in other areas such as sports, culture and infrastructure. Examples include the construction of schools and anti-malaria clinics, as well as the provision of HIV education. Mozal also supports local economic activities through the promotion of local agriculture and the commercial sales of local crafts. Mozal has contributed over ¥4 billion to fund these activities on a cumulative basis. Going forward, Mozal remains committed to contributing to local communities through these initiatives.
Together with British resource company Anglo American plc, MC owns Anglo American Quellaveco (MC’s affiliate), which is developing the Quellaveco Copper Mine in the Republic of Peru.
Agreement with local residents
Over the course of 18 months from 2011, Quellaveco engaged in consultation with the local stakeholders to define how Quellaveco could best contribute to the long-term sustainable development of Moquegua, a province in Southern Peru where Quellaveco is located. As a result, 26 specific commitments were agreed upon in the three areas of water management, environmental care, and social investment.
To ensure that Quellaveco’s operations do not have a negative impact on the water supplies in our host communities, Quellaveco will mainly use water from a river that is not suitable for human consumption and agricultural use. In addition, Quellaveco will collect clean water and excess rainwater in its dam, the majority of which will be shared with the communities, increasing their water availability throughout the year. This is expected to contribute to improving the lives of the local people, especially during dry season each year, when the region is often faced with water shortages.
Coexistence with the natural environment is one of Quellaveco’s key values. Environmental care measures are incorporated into development and operation plans, such as protection of wildlife feeding areas and habitats, transplantation and cultivation of plants, dust control through road maintenance and water sprinkling, and recycling (rather than discharge) of all contact water within the Quellaveco site. The effects of these measures are constantly monitored at fixed points, and environmental surveys are held periodically with the participation of local residents, providing opportunities to see for themselves that the natural environment of their homeland is being protected.
More than 10,000 people have been continuously employed at Quellaveco as a result of the development work that began in 2018, and approximately 2,500 jobs will be created after operations begin in 2022. In order to provide as many job opportunities as possible to the local residents, Quellaveco actively offers vocational training to the local people aspiring to acquire the various skills required in mining operations, as well as internships for local students. Focus is also placed on creating employment opportunities for women, and job training programs are conducted specifically for women with the aim of increasing the percentage of female employees at Quellaveco to 33% by 2023. (All figures are as of the end of 2021.)
Local businesses are also benefiting from Quellaveco’s development. To date, Quellaveco has purchased over 200 USD million worth of goods and services from more than 1,700 local companies. In addition, approximately 9 USD million to date has been allocated for the development of agriculture and local industries through the “Quellaveco Fund,” which was launched in 2011, and support is also provided for business planning and fundraising. These social programs have helped more than 300 local entrepreneurs start new businesses in Moquegua.
Quellaveco also launched various emergency relief measures in response to the outbreak of COVID-19. The project quickly procured and delivered much needed supplies such as protective equipment, testing kits, transport and intensive care facilities to support medical institutions dealing with the rapid increase in the number of infected people. Currently, the project is also working with local authorities to promote vaccination in Moquegua.
Promoting sustainable socio-economic development in southern Peru
In 2021, Anglo American, the International Finance Corporation (IFC, member of the World Bank Group), the Regional Government of Moquegua, Mitsubishi Corporation, and M.C. Inversiones Peru (MC wholly-owned subsidiary in Peru) jointly launched “Moquegua Crece” (Spanish for “Development of Moquegua”), an innovative public–private initiative to promote sustainable socio-economic development across the region. Various stakeholders in Moquegua, including the private sector, NGOs, local communities, and the government, are working together around a common vision for the long-term and inclusive development across local communities. Specifically, the initiative aims at fostering coordinated action to implement sustainable and inclusive development initiatives that can strengthen the potential of the region, focusing its support on three areas: strengthening local institutions to improve planning, implementation, and monitoring of regional development projects; strengthening and developing competitive value chains with high potential in the region to generate employment and income opportunities; and sustainable management and use of renewable resources for the benefit of the local communities.
Cape Flattery Silica Mines Pty, Ltd. (CFSM), a wholly owned subsidiary of MC, is located in Queensland, Australia and has supplied silica sand to users in East Asia and Southeast Asia for over 50 years, since its establishment in 1967. Currently one of the world’s largest silica mines, CFSM ships about 3 million tons of silica sand annually to glassmakers and other customers.
Contribution to Local Communities
The main applications for silica sand include glass, foundries and chemicals. However, with environmental issues gaining attention worldwide, CFSM is also responding to market needs by increasing the supply of materials to solar panel glass producers. Given global awareness of sustainability issues related to mining, including damage to the environment and impacts to biodiversity, mining activities are being restricted by strengthened environmental regulations in each country. Despite this trend, CFSM’s strengths are being recognized, demonstrating results with its sustainable operations that pay consideration to the environment, as well as by supplying a stable quality and volume of product. Going forward, CFSM will continue supporting the proliferation of clean energy by supplying their material.
|Social contributions, etc.||1,923||1,256||2,577|