One of MC’s Materialities 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*The ICMM (International Council on Mining & Metals) 10 Principles, etc.*. 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.
Officers in Charge | Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO) |
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Deliberative Body (A subcommittee under the Executive Committee, a management decisionmaking body) |
Sustainability Committee Important matters related to communities 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. |
Departments in Charge | Sustainability 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 philanthropic 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 philanthropic activities is conducted with a focus on long-running initiatives in which our employees can voluntarily take part and which highlight and respect 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, not only for MC-organized activities, but also for personal activities outside of the Company.
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 FY2023, roughly 17 different events were conducted, including sports classes for children with impairments, para-sports classes with para-athletes. In addition, currently MC employs six para-athletes and also provided a scholarships to 8 student(A total of 10 students) para-athlete, all of whom are continuing their activities to pursue their dreams. Furthermore, as a new initiative, MC will become a co-creation partner of the Next Para-Athlete Scholarship(NPAS) program, a scholarship sponsered by the Paralympians Association of Japan, to provide programs that contribute to personal growth and improvements in athletic performance.For FY2024, 3 Scholars were selected. We also actively hold classes with para-athletes on para-sports and increase understanding of impairments at elementary, junior and senior high schools as well as local governments across Japan.
Foundations and Funds | Activities | Year of Establishment and Paid-in Capital (Cumulative) |
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Mitsubishi Corporation 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 Approximately JPY13.5 billion (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 Approximately USD14 million |
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 Approximately GBP6 million |
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 (now concluded) and support recovery grants from the original fund while also working to support industrial revitalization and job creation in the affected areas. During FY2015, 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.
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 urgency 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, environmental education and research, and poverty alleviation. The MCFA provides support to organizations committed to advancing biodiversity conservation, sustainable development, environmental justice, and environmental education and since its establishment in 1991, the MCFA has donated approximately US$14 million. One example is the Amazon Waters Initiative led by US-based Wildlife Conservation Society (WCS), which has seen improvements in fisheries and has strengthened wildlife habitat management and monitoring in the Amazon River basin, as well as climate change-related research activities. The MCFEA is a fund that has focused on addressing similar challenges in the Europe and African regions, and since its establishment in 1992, the MCFEA has spent approximately GBP 6 million. In recent years, the MCFEA has supported non-profit entities such as African Leadership Academy which seeks to transform Africa by providing an educational programe for youth to nurture future leaders in Africa, and Farm Africa which contributes to the long-term conservation and reforestation of forest ecosystems in Ethiopia.
MC has supported an annual study abroad scholarship program for high school students through AFS Japan since FY2019. This program is based on a curriculum where students attend school and stay with host families for approximately 10 months. The goal is for students to deepen their cross-cultural understanding and develop appreciation and empathy for others. Through the scholarship, MC aim to open doors to high school students from all over the country who are interested in studying abroad but are unable to do so due to financial circumstances, and also to nurture future global talent. We offered 20 scholarships in the first year of the program, which has since expanded to 70 in 2024.
MC is exploring an urban management project and promoting a large-scale urban development project in collaboration with Sinar Mas Land (SML), one of the largest real estate developers in Indonesia.
MC signed an MOU with SML in March 2020, initiating a joint execution of urban management as well as the implementation of smart and digital solutions (urban services) in BSD City (6,000 hectares). This partnership between MC and SML aims to implement urban services throughout BSD City, including an AI/IoT data platform, city portal, mobility, and energy-related content, in collaboration with various MC Group companies and partners across different business sectors.
After the signing of the MOU, we initiated the first trial operation of autonomous electric vehicles (AEVs) in Indonesia, followed by the sharing service experiment designed to promote a shift in behaviour from “owning” to ”renting”. Furthermore, we have recently embarked on another experiment involving a mobile convenience store operated by electric vehicle. Through these initiatives, we have been actively exploring different city service experiments and implementations aimed at addressing social issues while promoting city sustainability.
At the same time, in the same city, MC is working with SML on a large-scale development. This project is the first transit-oriented development*Urban development based on public transit, aiming for a society that is not dependent on automobiles.* in Indonesia, and it will develop a smart city that combines urban functions such as residential units, commercial properties, schools, hospitals, parks, and public transportation nodes on a new development site of over 100 hectares.
By encouraging a modal shift towards expanding and promoting the use of public transport, we aim to contribute not only to the economy, but also to society and the environment by helping to address issues such as traffic congestion and air pollution. Another goal is to create convenient, safe, and secure urban developments through the implementation of urban services such as AI/IoT data platform, city portal, mobility, and energy-related content.
In December 2019, MC concluded a capital and business partnership with HERE International B.V. (HERE*HERE is a global leading location data and service provider with over 6,000 employees in 52 countries. The Company has a strong presence in the automotive industry, and also works with leading companies across a wide range of industries, including transport and logistics, mobility, manufacturing and retail and the public sector.*), and in May 2020, MC invested 15% in HERE. MC will leverage its extensive industry knowledge to collaborate with HERE to accelerate the deployment of their solutions (both automotive and non-automotive) in Japan and Asia-Pacific markets, where HERE is focusing.
Our specific initiatives with HERE are as follows.
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 the Local Buying Program. The program was established to connect local and indigenous businesses to work opportunities, and engages with over 550 local and indigenous suppliers annually, creating job opportunities for approximately 8,000 people. The economic impact of this program is over AUD109 million every year.
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 society and the environment by communicating with stakeholders such as governments and local residents, developing appropriate mine closure plans, and implementing necessary rehabilitation measures.
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.
Over the course of 18 months from 2011, Quellaveco engaged in dialogue with the local stakeholders. As a result, 26 specific commitments were agreed upon in the three areas of water management, environmental care, and social investment. Based on these commitments, which were based on the opinions of local stakeholders, Quellaveco is engaged in various community contribution activities.
To ensure that Quellaveco’s operation does not have a negative impact on the water supplies in our host communities, Quellaveco mainly uses water for mining operations from a river that is not suitable for human consumption and agricultural use. In addition, the Moquegua Region of southern Peru, where Quellaveco is located, has suffered from drought during the dry season, and the water Quellaveco will collect in its dam will be shared with the communities during the dry season, helping to improve the lives of the local stakeholders.
Coexistence with the natural environment is one of Quellaveco’s key values. Environmental care measures are incorporated into 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 and environmental surveys are held periodically with the participation of local stakeholders, providing opportunities to see for themselves that the natural environment of their homeland is being protected.
More than 30,000 jobs have been created at Quellaveco during the development work that began in 2018, and approximately 2,500 jobs are expected to be created during the operational stage that began in July 2022. Furthermore, in order to provide as many job opportunities as possible to the local stakeholders, Quellaveco actively offers vocational training to the people aspiring to acquire the various skills required in mining development and 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. In addition, to help promote local industries, Quellaveco is prioritizing local businesses when procuring goods and services needed for mining development and operations. The project is also promoting the development of agriculture and local industries through the “Quellaveco Fund,” which was launched in 2011.
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, ambulances, medical oxygen production plants and intensive care facilities to support medical institutions dealing with the rapid increase in the number of infected people. Quellaveco is also working with local authorities to promote vaccination in Moquegua.
In Moquegua, Quellaveco has taken the lead in supporting the development of the region. In 2021, Anglo American, the International Finance Corporation (IFC, member of the World Bank Group), the Regional Government of Moquegua, MC, 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 toward the goal of long-term and inclusive development of local society. Specifically, the initiative aims at fostering coordinated action to implement sustainable regional development initiatives that can maximize the potential of the Moquegua region by supporting the planning, implementation, and monitoring of regional public development projects; developing local industries; and sustainable management and use of water and other natual resources. In 2023, this initiative started supporting the formulation of a long-term development plan for the Regional Government of Moquegua to strengthen the public investment process and improve services and infrastructure for communities in the region.
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 approximately 3 million tons of silica sand annually to glassmakers and other customers.
1. Coexisting with traditional owners
The land where CFSM operates is owned by traditional owners. Accordingly, besides compensation, CFSM also prioritizes employment from the local communities, offers to pay for vocational training and apprenticeships, offers funding support to local community infrastructure, and conducts other initiatives in order to coexist with the local communities. Out of CFSM's roughly 100 employees, indigenous people make up one third.
2. Coexisting with nature
CFSM restores vegetation to former mining areas, with some employees devoted to rehabilitation activities, returning these areas to their original states. CFSM collects seeds from plants that grow naturally in the area and then plants and raises them in a designated nursery. After the mining is completed, the plants are planted back in the mining area. By spending 3-4 years to restore the site to its original vegetation levels, CFSM is able to coexist with the natural environment.
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. Going forward, CFSM will continue supporting the proliferation of clean energy by supplying their materials, while taking advantage of its sustainable environment-friendly operations and stable quality and volume of product.
Item | FY2021 | FY2022 | FY2023 |
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Social contributions, etc. | 1,279 | 1,465 | 1,771 |
Recovery support*1Amount includes MC’s contributions to the Mitsubishi Corporation Disaster Relief Foundation and donations to other organizations involved in recovery support. For more information on the activities of the Mitsubishi Corporation Disaster Relief Foundation.*1 | 70 | 75 | 100 |
Political donations*2The amount of political donations made to political party fund management organizations. MC conducts political donations as part of its corporate philanthropy initiatives. MC sets a policy to disclose the amount of political donations for 3 fiscal years on MC's Sustainability Website every year.*2 | 28 | 28 | 28 |