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Contributing to Decarbonized Societies

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Contributing to Decarbonized Societies

Contribute to the realization of decarbonized societies by striving to reduce greenhouse gas (GHG) emissions, while providing products and services that support decarbonization during the transition period.

Related SDGs Themes

  • 7 AFFORDABLE AND CLEAN ENERGY
  • 13 CLIMATE ACTION

Action Plan Regarding this Material Issue

We regard achieving a decarbonized society as one of our important corporate issues that should be challenged, and we are promoting carbon reduction and decarbonization through our business activities with “Contributing to Decarbonized Societies" as one of our materialties. By leading this transformation and "connecting" it to our own business growth, we will create MC Shared Value. In addition to promoting our own decarbonization (Halve by FY2030 (compared to FY2020) and net zero by 2050), we will contribute to the decarbonization of society by creating avoided emissions through EX-related investments on a scale of 1.2 trillion yen over the three-year period of Midterm Corporate Strategy 2024.

Doubling Renewable Energy Power Generation Capacity

MC is expanding its renewable energy business in Japan and abroad to achieve a decarbonized society. In connection with this initiative, MC is moving ahead with the goal of doubling its renewable energy equity generation capacity from 3.3 GW in FY2019 to 6.6 GW in FY2030.

Current generation capacity (net equity basis), including assets under construction, is 3.9 GW (as of the end of September 2023).

Doubling Renewable Energy Power Generation Capacity

Doubling Renewable Energy Power Generation Capacity

Major Progress

Implementation of Next Generation Energy Supply Chains

MC is focusing on the practical implementation of hydrogen in society and the commercialization of ammonia, an excellent means of transporting and storing hydrogen. MC is proceeding with joint testing with our partners at each stage of the value chain, “production,” “transportation” and “usage.” We are also promoting the societal implementation of Sustainable Aviation Fuel (SAF) in the area of aviation fuel, where electrification and hydrogenation are difficult.

Major Progresses

Supply of Mineral Resources to Promote an Electrified Society

Mineral resources such as copper are essential products which are used for renewable energy and electrification and are vital to achieving a decarbonized society. MC aims to expand our copper business through organic growth opportunities in existing assets, which boast some of the world’s largest copper reserves, increasing our interest in existing assets, acquiring new assets and utilizing new technologies to improve resource recovery.

Supply of Mineral Resources to Promote an Electrified Society

Supply of Mineral Resources to Promote an Electrified Society
Major Progress

CCUS Initiatives

MC, as a company aiming to contribute towards achieving the goals of the Paris Agreement, recognizes that CCUS will play a major role in achieving those goals. The International Energy Agency (IEA) has stated that CCUS must be used to reduce roughly 1.5 billion tons of CO2 emitted in 2050 in order to achieve the 1.5°C target (the remaining amount to be reduced through renewable energy and energy-saving technology), and the Intergovernmental Panel on Climate Change (IPCC) has also emphasized the role that technology should play. CCUS is a field that spans multiple industries, from those that are the source of CO2 emissions, to those that produce end-products such as fuel and chemical materials. Therefore, MC recognizes CCUS as a business opportunity to demonstrate its collective capabilities as a company that interacts with many industries. To take advantage of this business opportunity, MC will promote the commercialization of CCUS by establishing a task force spanning multiple business groups as well as a liaison committee.

CCUS Initiatives

Main Progresses

Here are our representative low-carbon and decarbonization related projects that contribute to the realization of this Action Plan.

Further details regarding MC's initiatives on climate change are available here.

サステナビリティ部(PQ), 電力ソリューショングループ(EZ), 化学ソリューショングループ(CT), 金属資源グループ(KZ), 産業インフラグループ(MV), 自動車・モビリティグループ(UV), Next-Generation Energy Business Group

Conserving and Effectively Utilizing Natural Capital

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Conserving and Effectively Utilizing Natural Capital

Recognizing the Earth itself to be our most important stakeholder, strive to maintain biodiversity and conserve natural capital, and work to create circular economies while reducing our environmental footprint.

Related SDGs Themes

  • 7 AFFORDABLE AND CLEAN ENERGY
  • 12 RESPONSIBLE CONSUMPTION AND PRODUCTION
  • 14 LIFE BELOW WATER

Action Plan Regarding this Material Issue

Every business in our company is built on the foundation of the natural capital benefits that the ecosystem provides. Therefore, we recognize that the conservation and effective utilization of this natural capital are indispensable to achieving sustainable growth together with society. MC is committed to realizing a circular economy by taking advantage of business opportunities while trying to diminish our negative impact on the global environment.

Promotion of a Circular Economy

MC considers the realization of a circular economy to be a pillar of our EX initiatives. To achieve this, it is essential to make effective use of limited resources and ensure they are able to circulate as efficiently as possible. MC is committed to the environmentally friendly materials manufacturing business through the recycling of materials by utilizing new technologies, bio-carbon recycling, new businesses related to product recycling, and materials and products that support a low-carbon, decarbonized society.

Promotion of a Circular Economy

PET Chemical Recycling Business with Thai Shinkong

MC entered the PET chemical recycling business through an investment in Thai Shinkong Industry Corporation Ltd., which produces PET resins for beverage bottles with a new production line having started operation in June 2023. PET is highly recyclable mono-material with a wide range of applications, including in food and beverage containers as well as in textiles, thanks to its excellent transparency, barrier properties, and well-established collection and recycling systems. As the transition to a circular economy progresses worldwide, we will expand our capacity for producing PET resins, for which demand is expected to grow in line with the shift towards mono-materials, and by introducing chemical recycling technologies through our participation in the PET chemical recycling business with the aim of “Conserving and Effectively Utilizing Natural Capital”.

PET Chemical Recycling Business with Thai Shinkong

Partnership with Honda

MC and Honda Motor Co., Ltd. (Honda) have signed a memorandum of understanding to begin discussions toward the creation of new businesses with an aim of leveraging the strengths of both companies to build sustainable business models, with a focus on expanding EV adoption in a decarbonized society. Moving forward, the two companies will strive to increase the value offered to customers through their EV and EV battery businesses. Details about the commercialization of these businesses are explained below.

1. Battery Lifetime Management Business
This new business aims to maximize the value of batteries installed in Honda electric light motor vehicle  models, that are scheduled to go on sale in Japan in 2024. By employing sophisticated battery-monitoring functions, the new business would manage and maximize the value of batteries throughout their lifetime by repurposing them from powering EVs (in-vehicle use) to then using them as stationary energy storage (stationary use).

Battery Lifetime Management Business

2. Smart-charging*1Smart-charging systems automatically adjust the timing of EV charging to avoid peak load periods and optimize energy consumption.*1 and V2G*2Vehicle to Grid:
In a V2G system, EVs will not only be charged with  electricity from the grid but will also supply electricity to the grid itself to help meet local electricity needs.
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Energy Management Business
This new business helps EV users optimize their electricity costs by offering access to smart-charging, V2G services, and green (renewable) power through advanced control technologies.

Smart-charging and V2G Energy Management Business

Major Progress

Identifying and Responding to Nature-related Issues

Almost all MC businesses interact with the environment and depend upon the benefits ecosystems can provide. In order to ensure the future continuity of our business activities, MC needs to understand the extent of our environmental dependencies and impacts, analyze risks and opportunities, minimize excessive reliance and negative impact on the natural environment, and pursue initiatives that contribute to environmental recovery.

Trial Analysis Using the TNFD Framework

From this perspective, MC conducted a trial analysis based on the TNFD framework recommendations from FY2022 to FY2023. In the future, we will utilize the knowledge obtained from the trial analysis in the management of individual businesses and continue to identify and respond to nature-related issues using the TNFD framework, thereby improving the MC Group's sustainability and corporate value.

More details regarding MC’s initiatives on biodiversity are available here.

サステナビリティ部(PQ), 自動車・モビリティグループ(UV)

Promoting Stable, Sustainable Societies and Lifestyles

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Promoting Stable, Sustainable Societies and Lifestyles

Promote sustainable societies and lifestyles of the future through businesses in a diverse range of countries and industries, while fulfilling our responsibility to provide a stable supply of resources, raw materials, products, services, etc., in line with the needs of countries and customers.

Related SDGs Themes

Action Plan Regarding this Material Issue

Ensuring the stable lives of people is one of our company’s greatest mandates, and we believe it is important to fulfill this in a sustainable manner through our business. While continuing to provide the goods and services necessary for maintaining the operation of the current societal system, we will promote businesses which move society forward towards a more sustainable future.

Fulfilling Our Responsibility for Ensuring a Stable Energy Supply to Support the Transition Period

Global energy demand is expected to increase mainly due to population growth and economic development. While the switch to renewable energy is expected to progress in the power sector in the future, dramatic technological innovation is essential to supplement renewable energy sources in terms of intermittency, location and other factors. Therefore, to meet the world’s growing energy demand and at the same time realize a carbon-neutral society, it is essential to decarbonize fossil fuels.

MC is committed to fulfilling its responsibility to provide a stable supply of natural gas and LNG, which will support the transition period with its relatively low environmental impact among fossil fuels, as well as reduce GHG emissions throughout the value chain via improvements in operational efficiency, CCUS and other methods.

Fulfilling Our Responsibility for Ensuring a Stable Energy Supply to Support the Transition Period

Tangguh LNG Project Initiatives

Tangguh is the largest gas-producing project in Papua Barat Province of Indonesia, accounting for around 20% of the country’s gas output. MC is participating in the project as a joint venture with bp, the project operator. Tangguh LNG Project began operations in 2009 and has safely delivered more than 1,500 cargoes to global markets including Indonesia and Japan. In October 2023, the expansion of a third LNG train added 3.8 million tons per year of LNG production capacity to the existing 2 trains (production capacity: 7.6 million tons per year), increasing the total LNG production capacity of the Tangguh LNG Project to 11.4 million tons per year.

In addition, we are planning the next phase of development including CCUS project, which is based on a Plan of Development approved by SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities Republic of Indonesia) in 2021. Once the CCUS project is implemented, which is subject to a final investment decision by Tangguh Partners, it will remove up to 90% of the reservoir-associated CO2 which represents nearly half of Tangguh’s LNG emissions, making Tangguh one of the lowest GHG intensity LNG plants in the world.

Tangguh LNG Project Initiatives

Ensuring a Stable Supply of High-quality Metallurgical Coal

Since steel is a basic material that is difficult to replace, its demand is expected to remain strong over the long term in line with global economic growth. In the steel industry, the ironmaking process (blast furnace method), which uses primarily iron ore as raw materials, emits a high amount of GHG emissions. Therefore, it is expected that the use of electric furnaces, which mainly use steel scrap, and the use of hydrogen in the ironmaking process will expand in the future. However, it will take considerable time to realize the necessary technological innovations and switching of production facilities. Therefore, decarbonization of the blast furnace ironmaking process, which is currently the mainstream process, will be an important issue for the time being. MC will continue to contribute to the decarbonization of the steel industry by fulfilling our responsibility to provide customers with a stable supply of high-quality metallurgical coal as one of raw materials for the blast furnace ironmaking process, one of MC’s major commodities, and contribute to the decarbonization of the existing blast furnace method.

Ensuring a Stable Supply of High-quality Metallurgical Coal

MDP Initiatives

Mitsubishi Development Pty Ltd. (MDP) which conducts exploration, development, production, and sales of mineral resources, jointly operates its metallurgical coal business, BMA, together with its partner. BMA operates one of the world’s largest metallurgical coal operations, with an annual production volume of approx. 60 million tons and a share of approx. 30% of seaborne trade volume. BMA is fulfilling its responsibility to provide a stable supply of high-quality metallurgical coal that contributes to the decarbonization of the blast furnace method of steelmaking. In October 2023, MDP and BHP agreed to sell some of its coal mines and promoted further consolidation of its high-grade/quality mines.

Also, while staying aware of changes in the business environment, MDP will strive to reduce GHG emissions from BMA’s production processes. Furthermore, together with its metallurgical coal business partner BHP, MDP is working to support research that contributes to reducing emissions throughout the entire metallurgical coal value chain. In October 2022, MDP entered into a collaboration agreement with ArcelorMittal, Mitsubishi Heavy Industries, Ltd. and BHP regarding the application of CO2 capture technology in the field of steel making and will jointly conduct demonstration tests for the application of CO2 capture technology at ArcelorMittal's steel works.

MDP Initiatives

Sustainable Food Supply

With demand for food rising in line with global population growth, and an increased interest in sustainability, the establishment of a sustainable production and supply system is becoming increasingly important. MC is working to develop sustainable production, processing and sales business model, as well as increasing products that have international fishing/farming certifications such as MSC/ASC, and promoting transactions with suppliers that comply with our Policy for Sustainable Supply Chain Management.

Global Salmon & Trout Supply-Demand Outlook

Cermaq Initiatives

Cermaq is one of the major salmon (including coho) farming, processing and sales companies in the world which became a subsidiary of MC in 2014. Cermaq produces salmon in Norway, Chile and Canada for a total production quantity of around 200 thousand metric tons per year and supplies sustainable, safe and secure farmed salmon to consumers around the world.

Cermaq, has identified biodiversity protection as a key part of its license to operate in all the countries where it has operations. Cermaq works actively in cooperation with local stakeholders to protect wild salmonids in all areas where they are present, removes marine litter and tracks bird and marine mammal mortalities at its sites in compliance with all laws the countries where they operate and regulations of requirements set by the ASC standard. In its feed supplier Code of Conduct, Cermaq mandates that no fish meal or fish oil used in the feed for its fish shall originate from IUU (Illegal, unreported, unregulated) fisheries.

Cermaq Initiatives

Major Progress
サステナビリティ部(PQ), 天然ガスグループ(NX), 食品産業グループ(LI)

Utilizing Innovation to Address Societal Needs

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Utilizing Innovation to Address Societal Needs

Create businesses that help to address societal needs while working to spur major industry reforms that are supported by business innovation.

Related SDGs Themes

  • 7 AFFORDABLE AND CLEAN ENERGY
  • 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE

Action Plan Regarding this Material Issue

We recognize that innovation has great potential to enable us to solve societal and industrial issues and to considerably enrich people’s daily lives. MC will achieve sustainable growth by dynamically transforming our current businesses, whilst approaching business opportunities that are generated by innovation.

Building a Cross-industry Digital Ecosystem

MC has many physically based businesses that require DX-driven solutions. By providing DX functions to these businesses, we will optimize logistics and improve productivity, increase business value, and contribute to the development of the industry as a whole and the realization of vibrant local communities.

By developing cross-industry DX functions that leverage our broad business knowledge and then providing them as services, MC will help to improve the value of industries themselves. Toward this end, we aim to improve the productivity of industry and society as a whole and create sustainable value by building a “cross-industry digital ecosystem” in which industries, companies, local communities and others can organically connect and coexist.

In FY2023, to accelerate the development and realization of further projects, MC narrowed down the focus of its DX projects from a longlist which included over 100 candidate projects.

Building a Cross-industry Digital Ecosystem

Activity at MC Digital

MC develops business in a wide range of industries, but there are areas where further value can be added by utilizing cutting-edge IT. MC Digital's mission is to update business models by leveraging technology, and the company will utilize the latest technology, such as AI, to generate innovative solutions to issues in all the industries that MC conducts business in. MC Digital will also collaborate with overseas innovation ecosystems, as well as academic and administrative institutions, while striving to develop new businesses and provide solutions for various fields.

Activity at MC Digital

Major Progress

Reduction of Food Waste

Food waste in Japan has been calculated to be 5,700,000 tons (2019), and the scale of this food waste is equivalent to 1.4 times the amount of the WFP's (World Food Programme) world food aid (2020). Additionally, around 54% of Japan’s total food waste is comprised of commercial food waste that is disposed of during the distribution and production process. This is recognized as a key issue to be solved for the food distribution industry.

MC is proceeding with initiatives to reduce food waste using digital technology, including AI. Some of MC’s subsidiaries and affiliates have set a goal of reducing food loss by 50% by 2030 through initiatives such as improving distribution efficiency.

Reduction of Food Waste

DX Business in Food Distribution

Specifically, MC has begun developing solutions to enable the prediction of demand and automation of ordering at food wholesalers. Through the utilization of AI to calculate appropriate order quantities, in order to not cause shortages, while reducing the stock amount at food wholesalers and then connecting this to actual orders, the “purchasing of the necessary amounts of necessary items” will become possible. Therefore, MC can contribute to the reduction of food waste at food wholesalers. In the demonstration experiment, compared to current manual ordering processes, it was possible to reduce stock volume while also reducing the probability of stock shortages. This solution is anticipated to display sufficient efficacy.

Going forward, by popularizing this solution that MC is currently developing throughout the entire food wholesale industry, MC will contribute to the reduction of food loss in the food wholesale industry. MC will also aim for distribution optimization and reduction of food waste across the entire foodstuff distribution value chain by providing solutions for food manufacturers and food retailers.

Mitsubishi Shokuhin, which operates a core function in the food distribution business, has completed the introduction of an inventory optimization solution that utilizes AI demand forecasting into all Lawson centers and is aiming to reduce food waste by 50% in 2030 compared to FY2016 levels.

DX Business in Food Distribution
DX Business in Food Distribution

Solution to Wasteful, Inconsistent and Burdensome Practices by Optimizing the Entire Supply Chain through Digital Technology

Supply chains connecting producers and consumers are made possible through effective combinations of storage and transportation-based logistics capabilities. Japan’s domestic warehousing market is central to those supply chains and worth approximately seven trillion yen. Various negative pressures including labor shortages, dependencies on specific individuals for certain jobs and lease agreements have resulted in inflexible inventory capacities, which has in turn contributed to wasteful, inconsistent and burdensome fulfillment practices throughout numerous industries. Other countries, such as the US and China, are facing similar challenges, which has prompted innovators to develop new business models such as self-driving warehouse robots and schemes that allow users to share vacant warehouse spaces.

Solution to Wasteful, Inconsistent and Burdensome Practices by Optimizing the Entire Supply Chain through Digital Technology

Gaussy’s Warehouse DX Services

Considering that the “Roboware” subscription service allows anyone, regardless of their background or skills, to use robots to easily manage their warehouse facilities, it presents a viable solution to the labor-shortage and overreliance problems mentioned above. “WareX” is a similarly straightforward system that anyone can use to share available warehouse space, thus addressing the problems of limited or excess capacities.

Gaussy will offer customers both of these services, the former (Roboware) of which employs six types of warehouse robots and has already been rolled out in more than 25 facilities across Japan, and the latter (WareX) of which has more than 1,400 facilities (as of December 2023) registered on its nationwide system. Large, medium and small enterprises alike have been taking advantage of “WareX,” as it provides them with an efficient way to lease vacant warehouse spaces on a pay-as-you-go basis.

Driven by its vision to create new opportunities in logistics, Gaussy is committed to developing flexible mechanisms that will adapt to evolving warehousing needs and cargo volumes. All of its partners look forward to offering fulfillment customers with new and unprecedented options for their businesses.

Gaussy’s Warehouse DX Services

Contributing to the Realization of a Carbon-Neutral Society through Technological Innovation

Decarbonization is an urgent issue that requires fast-paced initiatives on a global scale. To this end, MC believes it is important not only to develop completely new decarbonization technologies, but also to innovate at the scale-up stage, moving technologies that have already completed R&D to implementation as quickly as possible.

In order to realize a carbon neutral society, MC is already promoting the development of EX-related businesses such as next-generation energy. In order to complement and further accelerate these initiatives, MC will work to scale-up innovative decarbonization technologies through public-private partnerships.

Contributing to the Realization of a Carbon-Neutral Society through Technological Innovation

Participation in Breakthrough Energy Catalyst Program to Accelerate the Application of Decarbonization Technologies in Society

MC is the first company in Asia to participate in Breakthrough Energy Catalyst (BEC), a program dedicated to accelerating the application of innovative decarbonization technologies in society.

BEC is a brand new model that was launched as part of Breakthrough Energy, a network of initiatives founded in 2015 by global philanthropist Bill Gates. The BEC program provides investment and other support for individual projects based on new decarbonization technologies for which research and development have already been completed.

MC is active in the renewable energy field and has begun to explore the introduction of next-generation energy sources, such as hydrogen, ammonia, and methanation. We recognize the need to use new technologies and innovations to meet the global challenge of transitioning to a carbon-neutral society.

In addition, BEC acts as a ‘Catalyst’, organically linking funds from private sector partners and philanthropic organizations, product off-take support for consumers of green products, and assistance from government agencies. Through these activities, BEC is establishing a framework to support the scaling up of projects based on innovative decarbonization technologies that are nearing commercialization, contributing to the realization of a carbon-neutral society.

The current five focus areas for BEC are (1) clean hydrogen production (and related infrastructure), (2) long-duration energy storage (LDES), (3) sustainable aviation fuels (SAF), (4) direct air capture (DAC), and (5) green manufacturing industries (steel, cement, plastics, etc.). In the future, BEC may expand its focus to include other technologies that are also important for decarbonization. MC also considers these technologies vital to its own EX Strategy and its Roadmap to a Carbon-Neutral Society.

Our participation in BEC will allow us to support the adoption of innovative technologies that will accelerate the transition to a carbon-neutral world and contribute to further reductions in environmental impact without compromising people’s well-being.

MC will contribute to the transition to a carbon-neutral society by making full use of the expertise and networks that it has cultivated in Japan and throughout Asia to collaborate with other BEC partner companies who represent a broad range of industries, including steel, aviation, and finance.

Major Progresses
MC SIM事務局, サステナビリティ部(PQ), IR・SR部(PI), 天然ガスグループ(NX), コンシューマー産業グループ(HI), Next-Generation Energy Business Group, VZ-Z

Addressing Regional Issues and Growing Together with Local Communities

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Addressing Regional Issues and Growing Together with Local Communities

Strive to contribute to the development of economies and societies by addressing issues facing countries and regions, while seeking to grow together and collaborate with diverse stakeholders, regions and communities.

Related SDGs Themes

Action Plan Regarding this Material Issue

We believe that MC can create significant value by leveraging our company’s unique collective capabilities and connections with various industries, and by interconnecting with diverse stakeholders and local communities. We will pursue sustainable growth together with local communities by resolving issues that communities are facing and also by approaching peripheral business opportunities.

Creating self-sustained decentralized communities

In May 2022, MC announced its new management plan, entitled “Midterm Corporate Strategy 2024 – Creating MC Shared Value.” The plan details MC’s growth strategy to promote regional revitalization through utilizing integrated EX and DX initiatives. MC has embarked on initiatives to promote specific measures for regional revitalization throughout the company, including the creation of new carbon-neutral industries, supporting smooth transitions to decarbonized societies and developing vibrant communities.

Creating self-sustained decentralized communities

Establishment of New Branches in Akita and Choshi

In November 2022, MC opened new domestic branches in Japan for the first time in 35 years in both Akita and Choshi. MC was appointed as one of the operators of Japan’s first, general-sea-area fixed-foundation wind farms which are being developed off the coasts. With the themes of utilizing local energy resources such as renewable energy, creating new carbon neutral industries, and creating vibrant communities by addressing regional issues, MC aims to create a new future through the fostering of new industries and regional revitalization, such as by addressing challenges facing society and industry through collaboration with various stakeholders including partners and local government authorities, while taking advantage of our unique, wide-ranging industrial network. The Akita and Choshi regions are a precedent for this, and MC will continue to work closely with our electric power subsidiaries and offshore wind project companies that will develop the offshore wind power business for more than 30 years to come, with the aim of developing not only offshore wind power, but also of realizing MC’s goal of promoting regional revitalization through the integrated EX and DX initiatives.

Akita Branch
Akita Branch
Choshi Branch
Choshi Branch
Regional Development Agreement with Local Governments

MC signed partnership agreements with the five cities by 2023:Yatsushiro in Kumamoto Prefecture, Kurashiki in Okayama Prefecture, Nasushiobara in Tochigi Prefecture, Choshi in Chiba prefecture and Chitose in Hokkaido prefecture, to resolve regional issues and promote initiatives for regional development and revitalization. Specific cooperation items cover a wide range of areas, including the revitalization of local and regional communities using digital technology and improvement of civic services such as energy, mobility, and health.
As a first step with the agreement with Nasushiobara City, we have started two services.

① Community portal apps: This app. digitally consolidates communication from all local communities (such as schools and neighborhood associations) and public announcements from local governments in order to provide residents with essential daily life information. Currently, we are in the process of building a public relations creation system using generative AI to streamline the information distribution tasks of the local government and to ensure that residents can receive the information they desire.

② Regional Data Platform: To provide a data platform for Nasushiobara City, ensuring secure data integration with high extensibility. Moreover, the IDs of the services are integrated into a shared ID, which is connected with My Number, a digital ID assigned to each resident by the Japanese government.

Regional Development Agreement with Local Governments

Major Progresses

Development and Management of Smart Cities

The explosive expansion of the middle class and rapid urbanization, particularly in emerging economies, has increased the need for development and management of social infrastructure projects that take into account social and environmental values.

In the midst of such changes in the external environment, MC aims to contribute to the economic growth of the countries in which it operates, while also helping to reduce environmental impacts, by promoting the development and management of large-scale, high-value-added urban development projects to sustainably create high-quality living, working, medical, educational, logistics, and transportation environments.

Urban Management and Urban Development Projects to Enhance Urban Value in Indonesia

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 developmentThis 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.

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Urban Development Projects to Enhance Urban Value in Indonesia
Major Progresses

Solutions for Regional Transportation Challenges through On-demand Mobility Services

In regional communities facing depopulation, there is a growing need for on-demand transportation services that allow for the streamlining of transportation, and more services utilizing digital technology. MC will work to address societal challenges through our mobility services business and aim for further expansion by further strengthening our business foundation, which includes functions we have developed over many years and our ability to build community-based networks.

Solutions for Regional Transportation Challenges through On-demand Mobility Services

Trials of “KnowRoute” in Shiojiri City

MC is part of a consortium that has commenced trial operations of a mobility-as-a-service (MaaS) project in Shiojiri City, Nagano Prefecture. The “Shiojiri Project” is being undertaken as part of an initiative launched by Japan’s Ministry of Economy, Trade and Industry (METI) to promote new, regional MaaS applications. MC’s partners in the consortium include Next Mobility Co., Ltd., a joint venture between MC and Nishi-Nippon Railroad Co., Ltd., and the municipal government of Shiojiri City. 

Based on the successful results of the demonstration project, we are now shifting to full-scale operation and expanding certain service areas. Other than rail, the only means of public transportation in Shiojiri City is a community bus service, but it has been hampered by problems such as a lack of drivers, and a limited fleet. The city is also aging. About 28% of its roughly 67,000 residents are at least 65 years old, which has led to an even greater need for public transportation. To address both of these needs, the consortium that MC is participating in will work to solve the problems facing public transportation in Shiojiri City through promotion of the “Shirojiri Project”.

サステナビリティ部(PQ), 総務部(PH), 複合都市開発グループ(SX), 化学ソリューショングループ(CT), 金属資源グループ(KZ), 自動車・モビリティグループ(UV), 食品産業グループ(LI), VZ-Z

Respecting Human Rights in Our Business Operations

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Respecting Human Rights in Our Business Operations

Respect the human rights of all stakeholders involved in promoting our diverse operations worldwide, and pursue solutions for value chain-related issues, while considering the local conditions in each country.

Related SDGs Themes

Action Plan Regarding this Material Issue

It is impossible to conduct sustainable business or to increase corporate value without respecting the human rights of the people we involve in our business activities. MC will not only respect human rights when promoting its businesses but will also pursue business opportunities which create added value by tackling human rights issues.

Implementing Human Rights Due Diligence for Business Activities

MC’s current activities have expanded far beyond its traditional trading business to include project development, production and manufacturing operations, working in collaboration with our trusted partners around the globe. Furthermore, since MC handles a wide range of products and services around the world, we believe in the importance of identifying and analyzing the negative impacts of our business on human rights and the environment in order to ensure that such impacts are avoided/mitigated. MC is conducting human rights and environmental due diligence with this in mind.

Further details of MC's initiatives on human rights are available here.

Implementing Human Rights Due Diligence for Business Activities

Procurement based on MC’s Policy for Sustainable Supply Chain Management

In order to monitor suppliers’ compliance with our Policy for Sustainable Supply Chain Management, we have identified products with high environmental and social risk in 2016 and 2020 with advice from consultants and external advisors. MC conducts annual surveys of suppliers (via our Sustainable Supply Chain Survey), with a focus on those industries where social risks including human rights and labor conditions, as well as environmental risks, are considered higher. In addition, MC has formulated individual procurement guidelines for each product as needed. Most recently, in January 2024, we formulated our Soybean Procurement Guidelines.

Mitsubishi Corporation Fashion Co., Ltd., a wholly-owned subsidiary of MC, is working to enhance sustainable procurement of apparel products, strengthen communication and dialogue with suppliers through our Sustainable Supply Chain Survey, and promote the development of a sustainable supply chain.

Procurement based on MC’s Policy for Sustainable Supply Chain Management

Ensuring the Safety of Employees

The MC Group has a global workforce of approximately 86,000 professionals, who we recognize as some of our most important stakeholders. In order for the MC Group to continue generating corporate value sustainably, it is necessary for diverse human resources, regardless of gender, nationality, etc. to be able to fully demonstrate their respective capabilities in response to the further diversification and globalization of business. We believe that the fundamental premise for this is the development of a working environment based on respect for human rights, starting with ensuring workplace safety.

For further details of initiatives and progress, please also visit here.

サステナビリティ部(PQ), 総務部(PH)

Fostering Vibrant Workplaces That Maximize the Potential of a Diverse Workforce

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Fostering Vibrant Workplaces That Maximize the Potential of a Diverse Workforce

Recognizing that our human resources are the great assets of our businesses, foster a diverse and versatile talent pool that drives efforts to generate triple-value growth throughout our organization, and also seek to develop an organization where diverse human resources share common values and grow together while furthering their connections and inspiring one another to excel.

Related SDGs Themes

  • 5 GENDER EQUALITY
  • 8 DECENT WORK AND ECONOMIC GROWTH

Action Plan Regarding this Material Issue

Our human capital is most powerful and vital asset and the source of all value creation at MC. To continue creating MC Shared Value (MCSV) in a rapidly changing business environment, we recognize that the most important factor is remaining a dynamic, spirited and vibrant organization in which human capital, which is the source of all value creation, can work to overcome challenges with a sense of motivation and pride and to bring out our collective capabilities while interconnecting with members of our diverse and versatile talent pool. Based on this belief, we have been developing initiatives that are designed to maximize the value of human capital.

Strengthen Engagement

Employee Engagement — KPIs Relating to the Success of a Diverse Workforce

We see employee engagement as the most important factor in our efforts to develop a dynamic spirited, and vibrant talent pool and organization through HR policies linked to our management strategies. We have therefore increased the frequency of Employee Awareness Surveys from once every three years to annually and also established quantitative KPIs. Employees receive feedback about the survey results so that they can use this information to make improvements in their own organizations. At the management level, we analyze and discuss these survey results, identify issues that need to be addressed on a companywide level, and reflect our findings in policies.

>Employee Engagement — KPIs Relating to the Success of a Diverse Workforce

Initiatives to Strengthen Engagement

We are working to foster a corporate culture that capitalizes on diversity by encouraging communication across organizational, occupational, and generational lines. We are also creating an environment in which people in our diverse and versatile talent pool can realize their full potential and develop their own careers. Through these efforts, we aim to enhance employee engagement and contribute to MC’s sustainable growth.

Initiatives to Strengthen Engagement

DE&I Initiatives

MC is working to maintain and increase diversity by appointing employees based on their abilities and performance, ensuring to assign the right person in the right position, regardless of age, gender or nationality or any other irrelevant factors. In particular, in order to increase the number of women in managerial positions (target of 15% or more by FY2025) and to accelerate their appointment to key positions, we are promoting career support tailored to women such as a mentorship programs for women in managerial positions. MC is also focusing on initiatives aimed at 100% utilization of childcare-related systems by men. Establish a company-wide working group directly under MC’s President and promote the development of an environment and organizations where all employees can flourish by fully demonstrating their individual strengths. Proceed to study/implement initiatives that empower employees to succeed by respecting/accepting their individuality and leveraging our versatility.

Percentage of Women in Management-Level Positions (Non-Consolidated)

Percentage of Women in Management-Level Positions

Percentage of men using paternity leave, Percentage of men using childcare-related system

  1. *1 The number of employees who began taking the type of leave during each fiscal year.
  2. *2 Percentage of men working at the Head Office or MC domestic offices as of the end of the fiscal year
    whose spouse gave birth in the relevant fiscal year and who used childcare-related systems including childcare leave and spousal childbirth leave.
Occupational Health and Safety Initiatives

In creating safe working environments for employees and contractors (safety, health, labor management, risk management, etc.), MC aims to build and operate management systems that go beyond simply meeting the legal requirements in the countries where we operate to provide support that is more substantial. Within the MC Group, there are companies with OSH management systems that have acquired ISO45000 and OHSAS18001, the international standards for occupational health and safety management systems. Furthermore, in order to promote OSH management throughout the entire MC Group, we will are working to develop an organizational framework, clarify responsibilities and continuously monitor progress in order to refine, maintain and further improve our activities.

In addition, MC aims to steadily reduce the number of workplace accidents and maintain and promote health through continuous monitoring of KPIs such as reducing the frequency rate of workplace accidents compared to the previous year and ensuring a 100% health check-up rate for domestic (Japan-based) employees.

Lost Time Injuries Frequency Rate*Lost time injury frequency rate is the number of lost time injuries per 1,000,000 actual working hours and refers to the frequency of workplace accidents. Lost time injuries refers to occupational accidents that involve one or more days of lost work. Lost time injury frequency rate is employed in MC's KPIs.*

(This data includes Subsidiaries and joint operations, any other group companies like Affiliates, which contains production business sites)

Lost Time Injuries Frequency Rate

Strategic Development through Diverse Experiences

MC’s Basic Policy on HR Development

The individuals that make up our diverse and versatile talent pool consistently use their foresight, their aspirations, and their ability to anticipate future needs to tackle the challenge of finding solutions to societal challenges. We believe that this talent pool is our greatest asset and the very source of value creation at MC.

MC’s Basic Policy on HR Development

We continue to produce human resources with a management mindset and a commitment to increasing the value of the business by providing employees with opportunities to accumulate a variety of experience in stages through both on-the-job training (OJT) and off-the-job training (Off-JT) according to their career stage.

Specifically, we ensure that employees can steadily gain experience according to their career stage and gain the qualities that they will need to support the future success of MC, including leadership development and global experience. We also take steps to strengthen adaptability to changes in the business environment, including reskilling.

Matching Talent to Business Strategies through Talent Visualization

Contributing to Value Enhancement through Business Management Backed by High Aspirations

Approximately 700 people with a wide-range of experiences made possible by MC hold key positions and perform vital roles*Including Officers, Division COOs and General Managers of MC, heads of business sites in Japan and overseas, as well as management executives of MC Group companies for which our employees are responsible.* on a consolidated basis. Through those roles, which include business management activities in various regions and at sites and Group Companies in Japan and overseas, these people contribute to the realization of management strategies, such as the Value-Added Cyclical Growth Model and the integration of EX and DX initiatives. We have prioritized the visualization of these extremely important and challenging duties and the talent needed to perform them as the basis for a matching process designed to promote the placement of the right people to the right positions.

Visualization of Duties

Optimizing Human Resource Placement through Talent Visualization

We have equipped an HR subsidiary with the capacity to visualize the talent required for key positions and created a team of seven full-time assessors with backgrounds at MC to drive the visualization process. These assessors carry out individual interviews and provide interviewees with personalized feedback and dialogue based on various data, such as aptitude test results. To date, approximately 350 interviews have been completed. We will continue to pursue this process with the aim of matching people with tasks based on their abilities and motivation, regardless of age or gender. The resulting data resources will also be analyzed and used to develop the next-generation of leaders as well.

Process for the Visualizaion of Talent

Disclosure of HR Data

MC discloses data including regarding diversity and human resource development.

  • Initiatives and data regarding diversity management are available [here].
  • Initiatives and data regarding human resource development are available [here].
  • Initiatives and data regarding wellbeing (occupational health and safety, health and productivity management) are available [here].
サステナビリティ部(PQ), 人事部 (PJ)

Realizing a Highly Transparent and Flexible Organization

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Realizing a Highly Transparent and Flexible Organization

While swiftly responding to changes in the business environment, strive to realize effective governance on a global, consolidated basis and maintain/strengthen a sound organization that is transparent and flexible.

Related SDGs Themes

Action Plan Regarding this Material Issue

In this era of rapid transformation, it is essential to have the mobility to promptly adapt to the changes in the world while having a broad perspective in order to realize sustainable growth. In addition, we recognize strengthening corporate governance on an ongoing basis as an important management issue, as it is the foundation for ensuring sound, transparent and efficient management, all of which are integral for sustainable growth. From this perspective, our chief initiatives are as follows.

Incorporating Global Intelligence into Management

As MC engages in a global network of business operations across all regions and industries, MC has accumulated intangible assets in the form of intelligence and industry expertise. Through the efficient and effective division of functions among our Head Office, global offices and subsidiaries, as well as group companies, we are constantly collaborating to enhance our ability to respond to change and generate the next source of significant growth.

Establishment of the Global Intelligence (GI) Committe

Through our global network developed over many years, MC possesses multifaceted intelligence and know-how in macroeconomics, industry and geopolitics. In order to connect this diverse intelligence and further strengthen our ability to respond to changes in the external environment, MC has newly established the Global Intelligence (GI) Committee in 2022. By incorporating the analysis of the GI Committee into companywide strategies, we will strengthen the driving force of our Business Groups and collaboration across all industries.

Establishment of the Global Intelligence (GI) Committe

Flexible Organizational Restructuring

MC has always been flexible in adapting its businesses and systems to match the changing times. The need for such flexibility is greater than ever in these turbulent times, requiring companies to be even more agile. We will continue to flexibly reshape our organizational structure and human resources in order to respond rapidly to changes in the business environment and management strategies, and to create shared value.

Reorganizations to enable the creation of MC Shared Value on a larger scale

MC has announced “Midterm Corporate Strategy” in May 2022.  Under Midterm Corporate Strategy 2024, MC has set the goal of creating MC Shared Value (MCSV). More specifically, this refers to the continuous creation of significant shared value by elevating the MC Group’s collective capabilities in order to address societal challenges. To this end, we are promoting a number of growth strategies, namely our Energy Transformation (EX) Strategy, Digital Transformation (DX) Strategy and Creating a New Future (Fostering New Industries/Regional Revitalization). In this way, we are strengthening the capabilities of each Business Group and working to develop cross-industry businesses that transcend the boundaries of business domains.

As a result of these efforts, MC has come to the following conclusions.

  • MC is seeing tangible progress resulting from collaboration among our 10 Business Groups as well as the Industry Digital Transformation Group and Next Generation Energy Business Group. MC is gradually seeing developments emerge in the form of new industry value chains, growth stories and new business combinations. In order to accelerate businesses capitalizing on these fresh “connections,” MC will look to augment our internal organizations based on “new integration” of businesses that are well positioned to execute our strategies more powerfully than before.
  • The Next-Generation Energy Business Group and Industry Digital Transformation have been working with our Business Groups and serving as drivers of our EX and DX Strategies. Consequently, MC is gaining a clearer vision of each Business Group's business strategies going forward and themes to focus on in the future.

Considering the circumstances, MC has announced to modify organizational framework in December 2023 to enable the creation of MCSV on a larger scale by restructuring our organizations to support optimal progress in line with these business strategies and themes.

Reorganizations will also be implemented to bolster the functions of the Corporate Staff Section and MC’s regional offices around the world.

Please see “Mitsubishi Corporation Announces Reorganizations for FY2024” for more details.

MC will continue to modify its organizational structure in order to adapt appropriately to the ever-changing external environment.

Transparent and Effective Operation of the Board of Directors

The Board of Directors is responsible for making decisions concerning important management issues and overseeing business execution. In-house Directors utilize their rich experience of working within MC, and Independent Directors utilize their practical, objective, and professional perspectives to ensure appropriate decision-making and management oversight.

Initiatives to Enhance the Effectiveness of the Board of Directors

In recent years, MC has reviewed the rules and operations of the Board of Directors and is continuously working to improve the content of its deliberations so that the Board of Directors can fulfill its role and expectation to indicate the broad direction of business strategies and monitor implementation. In an effort to enhance the effectiveness of the Board, prior to each meeting of the Board of Directors, briefing sessions are held for Independent Directors and Independent Audit & Supervisory Board Members to carefully explain the strategic positioning and key points of each project, which helps them deepen their understanding of the agenda items to be discussed. In addition to the above, dialogue opportunities and small group meetings for Independent Directors and Independent Audit & Supervisory Board Members are routinely organized, including with the General Managers in the Corporate Staff Section, Business Group CEOs and Business Division COOs,  Executive Vice Presidents, as well as opportunities for dialogue with mid-level and younger employees. Through such efforts, MC aims to strengthen the connections between the Independent Members of the Board and its employees, ensuring the effectiveness of the Board of Directors.

MC has established the Governance, Nomination and Compensation Committee as an advisory body to the Board of Directors, which actively engages and deliberates on matters related to governance, nomination and compensation. The majority of the committee members are Independent Members with various expertise and experience, thereby ensuring objectivity and transparency. The Chairman of the Board chairs the committee and leads deliberations in an impartial manner, taking into account the realities of the executive side, allowing for a more thorough deliberation.

The content of the deliberations includes, in terms of governance, various issues such as confirmation of the roles and functions of the Board of Directors and Directors (both in-house and independent), and the Appointment Policy. In terms of nomination, requirements for the President and CEO are deliberated on an ongoing basis to ensure that a careful selection process for the position is implemented. During the Successor Selection Process, careful deliberation is carried out by the Governance, Nomination & Compensation Committee, and after several exchanges of opinions with Independent Directors and Independent Audit & Supervisory Board Members outside of the Committee, the President and CEO are selected.

With respect to compensation, appropriate remuneration packages for Directors and Audit & Supervisory Board Members are deliberated on an ongoing basis. Most recently, in June 2023, following deliberations by the Committee, new sustainability factors were added as performance-linked indicators to the KPIs used to calculate performance-linked bonus (medium to long term). Following this change of remuneration, the subcommittee of the Governance, Nomination and Compensation Committee will comprehensively evaluate initiatives related to maximizing the Value of Human Capital and Contributing to Decarbonized Societies.

More details about MC’s corporate governance are available here.

サステナビリティ部(PQ), 総務部(PH)