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Policy

For MC, as a global company involved in businesses across a wide range of products and services, ensuring sustainable supply chains is a key issue. MC has established the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, which outlines MC’s actions to address human rights, labor rights and environmental issues in the supply chain. This policy serves to convey MC’s fundamental perspective to all its suppliers.

Basic Policy

Since its foundation, MC has adhered to the Three Corporate Principles which have guided its corporate philosophy and which place considerable emphasis on the importance of its corporate social responsibilities. Moreover, our Corporate Standards of Conduct outline our commitment to comply with all relevant laws and international regulations and to act responsibly with respect to the highest social standards. Our Corporate Standards of Conduct further elaborate on our commitment to preserving the global environment and pursuing sustainable development through all aspects of our business activities.

Sustainable Supply Chain Management

1. Policy

For MC, as a global company involved in businesses across a wide range of products and services, ensuring sustainable supply chains is a key issue. MC has established the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, which outlines MC’s actions to address human rights, labor rights and environmental issues in the supply chain. This policy serves to convey MC’s fundamental perspective to all its suppliers.

(1) Forced Labor
Suppliers shall employ all employees of their own free will with no employee being subject to forced or bonded labor.
(2) Child Labor
Suppliers shall not employ people under the minimum legal working age of the country in question.
(3) Safe and Healthy Working Environments
Suppliers shall work to provide employees with safe and healthy working environments.
(4) Freedom of Association and Collective Bargaining
Suppliers shall respect the right of employees to associate freely and engage in collective bargaining as methods of negotiating working environments, wages and other matters with employers.
(5) Discrimination
Suppliers shall strive to ensure equal opportunities in the work place and shall not engage in discrimination with regard to recruitment and employment practices.
(6) Abuse and Harassment
Suppliers shall respect employees’ human rights and must not tolerate abuse or any form of harassment.
(7) Working Hours
Suppliers shall ensure that employees’ working hours and use of leave entitlements are appropriately monitored and that excessive overtime labor is prohibited, so as not to infringe upon any statutory regulations.
(8) Suitable Remuneration
Suppliers shall pay employees at least the statutory minimum wage, endeavor to pay at least the living wage, and shall not unreasonably reduce wages.
(9) Anti-Corruption
Suppliers shall engage in fair business practices, avoid corruption including bribery and extortion, and comply with applicable laws and regulations.
(10) Environment
Suppliers shall endeavor to protect the environment and consider the impacts of their business activities on local communities and ecosystems, while paying special attention to energy use efficiency, climate change issues such as greenhouse gas emissions, sustainable use of resources, waste reduction, and air, soil and river pollution.
(11) Information Disclosure
Suppliers shall disclose information with respect to the aforementioned matters in a timely and appropriate manner.

2. Monitoring

MC conducts regular surveys to suppliers to monitor the status of their compliance with the Basic Policy and to strengthen communication with suppliers.
Furthermore, MC visits suppliers to confirm the status of their activities when it determines that site visits are necessary based on the regions where suppliers are active and their business activities.

3. Response to Compliance Violations

If a violation of the Basic Policy is confirmed, MC will demand that the relevant supplier implement corrective measures and will provide guidance and assistance to the supplier as necessary.
If MC determines that the supplier is unlikely to implement corrective measures even after providing continuous guidance and assistance, MC will re-evaluate its business relationship with the relevant supplier.

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), コンシューマー産業グループCEOオフィス(HI-F), 食品産業グループCEOオフィス 経営計画ユニット(LI-F)

Individual Guidelines

MC has formulated individual guidelines for certain products.

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)

Green Procurement Policy

As MC conducts office activities in line with its Environmental Policy, MC is taking the following actions in order to proactively show consideration for the environment through all types of procurement activities with the aim of reducing its impact on the environment. These actions are based on the Green Purchase Guidelines, which lay out in writing green purchase methods.

  1. 1. Avoid unnecessary procurement
  2. 2. Place emphasis on “environmental consideration” together with function/cost at the time of procurement, and select green products whenever possible which satisfy the following:
    1. (1) Those using primarily recycled/reused raw materials
    2. (2) Those which reduce resource and energy costs and have a lower environmental impact throughout the production/use/disposal lifecycle stages
    3. (3) Those which do not use hazardous chemicals, or are making efforts to reduce such substances
    4. (4) Those with an established recycling system
  3. 3. Make efforts to reduce environmental impact from packing and transport during procurement wherever possible
  4. 4. Strive to reuse materials and curb new procurement

Furthermore, the guidelines also stipulate that when selecting products with special procedures required by law (home electronics, etc.), MC will confirm whether or not the product takes into account environmental considerations by referencing catalogues and other sources. Furthermore, when selecting products such as stationery, printing paper and furniture, MC will also confirm by referencing catalogues and other sources whether the product is certified (with an official mark) as having met environmental regulations/standards.

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)

Animal Welfare Policy for Suppliers

Our consolidated subsidiary Cermaq has established an animal welfare policy and as well as a number of indicators to ascertain whether animal welfare is being upheld. In addition, we believe that the iFarm development project will contribute to the improvement of animal welfare by enabling each individual animal to receive the minimum necessary treatment. For more information, please visit Fish health and welfare - Cermaq Global.

* Using image sensing technology to monitor individual salmon in ocean pens in real time. This is expected to reduce the environmental burden, including fish stress levels and the amount of chemicals and antibiotics used.

食品産業グループCEOオフィス 経営計画ユニット(LI-F)

Bluefin Tuna Sustainable Sourcing Policy

As a corporation playing a major role in the marine products business, MC recognizes the crucial part that we play in conserving marine resources and ensuring a sustainable supply for future generations. To find out more about MC's stance on Bluefin Tuna and the specific measures we are implementing, please refer to our most recent policy below.

Mitsubishi Corporation's Bluefin Tuna Sustainable Sourcing Policy(Updated July 2021)

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)

Structure

Officer in Charge Akira Murakoshi (Member of the Board, Executive Vice President, Corporate Functional Officer, CDO, CAO, Corporate Communications, Corporate Sustainability & CSR)
Deliberative Body
(A subcommittee under the Executive Committee, a management decisionmaking body)
Sustainability & CSR Committee
Important matters related to supply chain management 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.
Department in Charge Corporate Sustainability & CSR Dept.

Reference:Diagram of the Sustainability Promotion Framework

Each year, the methods and results of MC’s supply chain management are reported to the Board of Directors. In addition to key policies being determined by the Executive Committee, MC’s management decision-making body, the Corporate Functional Officer in charge of Corporate Sustainability is regularly briefed on sustainability-related topics including the latest external developments and the status of stakeholder dialogues.

Risk Management
Supply Chain Surveys

MC regularly conducts surveys of suppliers, with a focus on those in industries where social risks including human rights and labor conditions, as well as environmental risks are considered higher such as marine/agricultural products and apparel, in order to monitor their compliance with the Mitsubishi Corporation Policy for Sustainable Supply Chain Management. Products subject to this assessment are determined based on external developments by the two criteria of country/region of origin and product type. MC asks suppliers questions that take into account the specific issues and risks of the products handled by each supplier, with a focus on aspects including “existence of policies, compliance with laws and regulations”, “prevention of forced labor, child labor and discrimination towards workers”, “environmental protection” and “information disclosure”. In addition, MC employs a system to determine suppliers that may have issues or require assistance based on the results of each questionnaire response. Following this, MC considers and decides whether additional surveys or on-site inspections are necessary. Furthermore, in order to improve the convenience and accessibility of the survey for suppliers, we have built a web-based system and conduct the surveys through this system. In April 2020, MC conducted its annual survey for the fiscal year ended March 2020, and replies were received from 417 companies (up 140% from the previous year) in 30 countries and regions including China, Vietnam and Thailand.

Area Number of survey responses The number (%) of suppliers MC is working with to share concerns, solve issues, etc.
Asia / Oceania 388 17(4.38%)
North Central South America 17 0(0%)
Europe / Middle East / Africa 12 0(0%)
Total 417 17(4.08%)

* As of March 2021 (figure excludes the number of suppliers with which MC has already worked to share concerns, resolve issues, etc.)

In the event that MC confirms, through additional surveys or on-site inspections, points that should be rectified or improved in relation to the Policy, in addition to requesting the relevant supplier to take corrective measures, MC also provides guidance and assistance as necessary. If MC determines that a resolution is unlikely even after providing continuous guidance and assistance, MC will review its business relationship with the relevant supplier. MC considers revision of the Policy on supply chain management as needed based on discussion with MC stakeholders. The communication with suppliers achieved through the surveys and site visits provides a valuable opportunity to deepen the suppliers’ understanding of MC’s stance on sustainability. Therefore, MC will continue to cultivate better communication with each supplier and provide training and assistance to suppliers as necessary.

Reference: Sustainable Supply Chain Code of Conduct 3. Responding to Violations of Compliance

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)

Supply Chain Surveys

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New Suppliers
New suppliers are provided with the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, and MC confirms compliance by conducting surveys and, when necessary, supplier visits as well.
Existing Suppliers
Together with periodically receiving confirmation of support for the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, MC conducts regular surveys of suppliers to continuously monitor the status of their compliance with this policy and to strengthen communication with suppliers. Furthermore, MC visits suppliers to confirm the status of their activities when it determines that site visits are necessary based on the regions where suppliers are active and their business activities. MC continuously monitors existing suppliers to identify those that pose a high degree of environmental and social risk in line with this policy, for the purpose of verifying the appropriateness of current initiatives. Going forward, MC will incorporate the results of this reevaluation process into its regular assessments of suppliers, with the goal of ensuring the effectiveness of the supplier surveys.
Communication with Suppliers
In the fiscal year ended March 2021, MC employees visited a garment factory in Japan, which supplies apparel products to MC’s subsidiary Mitsubishi Corporation Fashion Co., Ltd., and conducted interviews with employees and company management.
As a result, MC confirmed that: (1) employee rights are respected throughout the employment process, including in recruitment, execution of employment contracts, training and management of working hours; (2) methods have been established to create an environment where on-site managers exchange daily reports with each employee, and employees can submit opinions to management directly; (3) on the environmental side, efforts are made to utilize LEDs for fluorescent lighting in the factory, reuse scrap materials, etc.; (4) information regarding industrial health and safety, such as wearing a mask to prevent inhalation of product particles, etc.; indoor ventilation and evacuation routes is properly displayed; (5) and, although the number of accidents at MC is small at one or two incidents per year, efforts are considered together with employees to prevent accidents, such as using stepladders with handrails and installing handrails on stairs to prevent falls, which are the main causes of accidents. MC aims to achieve continuous improvement in its operations.
Minor issues relating to health and safety were pointed out during the visit, but they were addressed promptly after inspection (for example, thorough installation of hazard-prevention implements such as needle and eye guards on the sewing machines pictured below).
Working in partnership with suppliers, MC will continue to promote sustainable operations throughout its supply chains.
Screening for Loan and Investment Proposals

In order to ensure that loan and investment proposals do not cause or contribute to adverse human rights impacts, they are vetted through an internal screening process which considers not only economic aspects but also ESG factors including human rights. In particular, for proposals to be deliberated by committees such as the Board of Directors and the Executive Committee, by having the General Manager of the Corporate Sustainability & CSR Department participate as a member of the Investment Committee, MC has put in place a screening system that reflects potential environmental and social impacts in decision-making. MC screens for ESG risks taking into account various human rights standards including the International Finance Corporation (IFC) guidelines and the Guidelines for Confirmation of Environmental and Social Considerations published by the Japan Bank for International Cooperation (JBIC). Besides screening new investment and exit proposals, MC also strives to make improvements to existing business investments by monitoring their management practices.

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), コンシューマー産業グループCEOオフィス(HI-F), 食品産業グループCEOオフィス 経営計画ユニット(LI-F)

Initiatives

Employee Training

Many employees at MC have the opportunity to undertake trading activities such as purchasing and sales, or to support such activities at some time in their careers. For this reason, MC strives to deepen the knowledge of all employees as buyers by explaining MC’s corporate philosophy, including respect for human rights in the supply chain. We also integrate the relevant supply chain policy into buyer training such as programs geared toward specific levels of management including those for new employees as well as training on trading practice.

Reference:Slavery and Human Trafficking Statement
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), 石油・化学グループCEOオフィス(CT-A), コンシューマー産業グループCEOオフィス(HI-F), 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

Cermaq Initiatives

Cermaq, an MC consolidated subsidiary, is committed to ensuring high standards related to the social and environmental impact of its business. MC has established a Supplier Code of Conduct, taking into account the principles of MC’s Policy for Sustainable Supply Chain Management, to ensure responsible practices throughout the supply chain, and which describes the minimum standards that all Cermaq’s suppliers are expected to uphold. Cermaq expects its suppliers to request similar standards for their suppliers and subcontractors. Cermaq expects all its suppliers to comply with requirements in the areas of national legislation, human rights, labor rights, health and safety, anti-corruption, the environment, food quality and safety, management systems, and implementation. In the area of the environment, adverse impact from the operations of the supplier on the community, the environment, and natural resources are expected to be minimized while safeguarding the health and safety of the public. Adverse impact may include pollution, use of limited resources, deforestation, release of chemicals and other materials to the ground, sea or air and which pose a hazard if released into the environment. To minimize the risk, including reducing chemical use in fish farming, suppliers are expected to identify, monitor and control the environmental impact of their operations.

Reference:Participation in Cermaq’s External Initiatives

食品産業グループCEOオフィス 経営計画ユニット(LI-F)

Mitsubishi Corporation Packaging Ltd. Initiatives

Mitsubishi Corporation Packaging Ltd. (MP), an MC consolidated subsidiary, handles Forest Stewardship Council®‐ (FSC®)-certified products (corrugated board, printing and communication paper, white paperboard, etc.). MP confirms whether or not its paper suppliers have obtained this certification, which requires third-party audits, in order to ascertain the level of social and environmental risk.
MP also aims to differentiate itself from competitors by obtaining FSC Chain of Custody (CoC) certification and by adhering to its requirements to procure and sell FSC-certified products.

License Code:FSC®‐C007960

コンシューマー産業グループCEOオフィス(HI-F)

Lawson, Inc.

Lawson, Inc., an MC consolidated subsidiary, provides freshly brewed coffee in Lawson convenience stores under the MACHI café brand. MACHI café’s coffee is made exclusively*2 from beans from Rainforest Alliance*1 Certified™ farms. Lawson also conducts activities to popularize and raise awareness such as participating in the Rainforest Alliance Consortium, which was set up through a collaboration between the Rainforest Alliance and companies that offer Rainforest Alliance Certified™ products. Lawson, as a member of this Consortium, runs promotional retweet campaigns.

  1. *1 Established in 1987, Rainforest Alliance is an international non-profit organization devoted to environmental protection. The Rainforest Alliance Certification is granted only to farms that satisfy strict criteria, including criteria for environmental conservation and improving the livelihoods of farm workers.
  2. *2 Excludes Single Origin Series and Decaffeinated Series.
Reference:Lawson’s Corporate Website
Lawson’s SDGs Handbook (Japanese)
コンシューマー産業グループCEOオフィス(HI-F)

Princes

Princes, an MC consolidated subsidiary, continues to work collaboratively with global suppliers, customers and leading ethical trading organisations to improve the lives of workers in their supply chains. Princes continues to hold a Board seat on the Ethical Trading Initiative since 2019, as well as retaining membership of the Food Network for Ethical Trade and the Stakeholder Forum of Supplier Ethical Data Exchange (SEDEX), which is the supply chain management and sharing platform.

In 2020, Princes has published its supply chain map for all finished goods, announced a partnership with a leading UK-based scheme called Bright Future, offering paid work placements and jobs in food manufacturing for victims of modern slavery and also achieved international recognition through being listed on the Cooperate Ethics Register of Chartered Institute of Procurement & Supply (CIPS), which is the global body for the procurement and supply profession.

Princes notes that the opportunity in 2021 and beyond is to work with suppliers to address the challenges around the identification and elimination of illegal hiring of workers, particularly those who cross borders to find employment – something Princes has developed a bespoke Policy to address.

Reference:Princes' Corporate Website


Organizations of which Princes is a member, etc.


Princes Supply Chain Map

食品産業グループCEOオフィス 経営計画ユニット(LI-F)

Olam

Olam International Limited (Olam), an MC affiliate company, is upholding its corporate philosophy of “Re-imagining Global Agriculture & Food Systems” to define its business growth as being achievable only through providing sufficient value to the environment and society. MC strives for three outcomes: Prosperous Farmers and Food Systems, Thriving Communities, and Re-Generation of The Living World. Olam has selected 10 material areas for achieving these goals and is approaching them by building a framework to achieve impact around 14 of the 17 Sustainable Development Goals (SDGs). For example, MC has developed the Olam Farmer Information System (OFIS) in partnership with farmers. This service collects and analyzes data from small-holder farmers, such as amounts of fertilizers and agrochemicals applied, unit crop yields and agricultural training records, aiming to help farmers improve their yields. In addition, in 2018, MC launched AtSource, a digital platform that directly connects customers with suppliers to offer comprehensive sustainable solutions. This platform has grown to include 20 products and 300,000 small-holder farmers in 30 countries worldwide. With AtSource, more than 150 customers are able to access not only supplier profiles, but also a total of approximately 350 indicators, including environmental data such as amounts of CO₂ emissions linked with purchased raw materials as well as social indicators such as farming yields. It also helps customers organize sustainability projects focused on specific areas. With AtSource, Olam is providing value to in three ways: 1) information on society, the environment and traceability; 2) transparency through real-time monitoring; and 3) positive impacts on farmer livelihoods and the global environment. Moreover, the platform won the 2020 Reuters Responsible Supply Chain Award.

Using nearly 30 years of product expertise, including the above-mentioned tools, Olam has adopted mid- to long-term environmental and social objectives in accordance with each of the SDGs, and have also announced Cocoa Compass in 2019 and Coffee LENS in 2020.

Olam has received a number of awards in recognition of these efforts, including from Fortune Magazine’s Change the World 2016 corporate rankings. Olam’s Founder & Group CEO Sunny Verghese was appointed chairman of the World Business Council for Sustainable Development (WBCSD*), which further demonstrates MC’s high global acclaim for its sustainability efforts.

Coffee_Harvesting
OFIS_Cocoa
AtSource_Cashew Nuts_Farmer
Reference:Please visit the following links for details on Olam’s sustainability initiatives:
Olam Sustainability Framework
Olam Farmer Information System
Olam AtSource
Olam Sustainability in Cocoa (Cocoa Compass)
Olam Sustainability in Coffee (Coffee LENS)
食品産業グループCEOオフィス 経営計画ユニット(LI-F)

MC FOODS Ltd. Initiatives

MC FOODS Ltd., an MC consolidated subsidiary, deals in tea products, handling tea from Rainforest Alliance Certified™ suppliers.

天然ガスグループCEOオフィス (NX-B), 石油・化学グループCEOオフィス(CT-A), コンシューマー産業グループCEOオフィス(HI-F), 食品産業グループCEOオフィス 経営計画ユニット(LI-F)

Related data

Data on RSPO-Certified Palm Oil
(Units: tons)
  2018.3 results 2019.3 results 2020.3 results
Book and Claim method
Mass Balance method 6,130.00 16,350.00 17,880.00
Total volume of palm oil handled 309,300.00 356,000.00 295,770.00
Ratio (%) 1.98 4.59 6.31

Scope: Non-consolidated basis and a portion of business investments

Reference:RSPO ACOP Report
食品産業グループCEOオフィス 経営計画ユニット(LI-F)

Data on ASC-Certified Products

(Units: Thousand tons)
  2018.3 results 2019.3 results 2020.3 results
Production capacity of ASC-certified sites 121 148 187
Actual sales volume of farmed salmon 158 173 184

ASC: Aquaculture Stewardship Council
Scope: MC consolidated subsidiary Cermaq

* Maximum farmed salmon volume as of December 31 for each fiscal year

食品産業グループCEOオフィス 経営計画ユニット(LI-F)

Data on FSC® CoC-Certified Products

  2021. 3 results
Wood pellets with FSC CoC certification, etc. 100%

FSC®: Forest Stewardship Council®
FSC CoC: Certification for processing/distribution process
License Code:FSC®‐C156725

石油・化学グループCEOオフィス(CT-A), コンシューマー産業グループCEOオフィス(HI-F)