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1、EnvironmentSocialGovernance2022SUSTAINABILITY REPORTAs of February 28,2023Please refer to the Sustainability Website for the latest information.Top Commitment 5Message from Executive Vice President5Philosophy and Approach Related to Sustainability 7Philosophy and Approach7The Three Corporate Princip

2、les7Corporate Standards of Conduct8Mitsubishi Corporation Code of Conduct9Mitsubishi Corporation Environmental Charter10Mitsubishi Corporation Social Charter10MC Group Vision11Value Creation Process12Materiality 13Overview of Materiality 14Integrating Materiality into Management 15Relevance of MCs M

3、ateriality to the SDGs 16Materiality Identification Process 17Materiality Details 18Contributing to Decarbonized Societies18Related SDGs Themes18Action Plan Regarding this Material Issue18Conserving and Effectively Utilizing Natural Capital 25Related SDGs Themes 25Action Plan Regarding this Material

4、 Issue 25Promoting Stable,Sustainable Societies andLifestyles28Related SDGs Themes28Action Plan Regarding this Material Issue28Utilizing Innovation to Address Societal Needs32Related SDGs Themes32Action Plan Regarding this Material Issue32Addressing Regional Issues and Growing Togetherwith Local Com

5、munities38Related SDGs Themes38Action Plan Regarding this Material Issue38Respecting Human Rights in Our BusinessOperations44Related SDGs Themes44Action Plan Regarding this Material Issue44Fostering Vibrant Workplaces That Maximizethe Potential of a Diverse Workforce47Related SDGs Themes47Action Pla

6、n Regarding this Material Issue47Realizing a Highly Transparent and FlexibleOrganization54Related SDGs Themes54Action Plan Regarding this Material Issue54MCs Sustainability Promotion Framework58MCs Sustainability Promotion Framework58Sustainability Initiatives58Companywide Sustainability Framework59

7、Promoting Sustainability Through Business60Cycle for Integrating Sustainability into Business Strategy60Sustainability Promotion Framework in Each Business Group60Incorporating Sustainability into Individual Projects61Disclosure(about the Sustainability Website)62Collecting Sustainability Informatio

8、n on a Consolidated Basis63Dialogue with Stakeholders(Incorporating External Perspectives)64Dialogue with Stakeholders in FY202164Sustainability Advisory Committee65Participation in Initiatives 67Support for the UN Global Compact 67WBCSD 68Task Force on Climate-related Financial Disclosures（TCFD）68C

9、limate Change 70Our Approach70Introduction and Mission70Creating MC Shared Value71Partnerships with Stakeholders73Governance75New Activities Based on the Roadmap to aCarbon Neutral Society and Midterm CorporateStrategy 2024-Creating MC Shared Value77Roadmap to a Carbon Neutral Society77Sustainabilit

10、y as a Growth Lever771.5 Scenario Analysis79Approach to Scenario Analysis79The 1.5 Scenario Used in FY202279Influences and Considerations for the FY2022 1.5C Scenario81Results of the 1.5C Scenario Analysis andRelevant Implications82Identification of Businesses Subject to Analysis82Climate Risks82Cli

11、mate Opportunity89Summary91Physical Risks92Physical Risk Assesment Process92Physical Risk Assessment Results94Key GHG Metrics and Disclosure Highlights95Targets 95Our Footprint(Scope 1&2)97Independent Practitioners Assurance 99Scope 3 Category 11 100Avoided Emission 101Policy on Coal-fired Power Gen

12、eration Businesses(IPP and EPC)104Mitigation and Adaption Initiatives(FY2022)105Japanese Offshore Wind Power Generation Business105New Service Model Aimed at the Spread of EVs106Smart Charging Platform in the Mobility Area107Studies on the Production and Use of Hydrogen at New ChitoseAirport Area107

13、Participation Agreement for Carbon Sequestration Project inLouisiana107Award of Greenhouse Gas Assessment Permit in Western Australia 108Launch of New Startup Accelerator Program to Promote Decarbonization 109Joint Feasibility Study Aimed at Commercializing SAF and Other Next-generation Fuels in Jap

14、an 109Beyond Materials Corporation,a Specialized Strategy and Engineering Service Provider to Support Materials Suppliers Area 110Mitigation and Adaption Initiatives(Before FY2021)111Renewable Energy 111Electric Vehicles(EVPHEV)/Battery 116Ammonia Fuel/Hydrogen Energy 118CCUS 121Carbon Credit 125Oth

15、er Low-Carbon/Decarbonized Businesses(Green Logistics,Green Buildings,etc.)127Other Data and Report137Other Reference Data137Climate Reports138TCFD Reporting138Natural Gas and LNG-related Data139Equity Share of Oil and Gas Upstream Production139Involvement in LNG Projects140Renewable Energy Related

16、Data143List of Renewable Energy Projects143List of Power Transmission Businesses Related to Offshore WindPower Generation Projects144EnvironmentEnvironmentSustainability Report 2022Mitsubishi CorporationContents1External Collaboration189Marunouchi Ecoben Project189Japan Foreign Trade Council189Perfo

17、rmance190Toxic Waste Emissions190NOx,SOx,VOC Emissions190Efficient Use of Resources 191Policy191Structure191Risk Management191Targets192Initiatives193Recycling and Closed-Loop Business Initiatives(Livestock Feed Production Business)193Recycling and Closed-Loop Business Initiatives(Livestock Business

18、)194Recycling and Closed-Loop Business Initiatives(“NAGIE”BrandMitsubishi Corporation Fashion Co.,Ltd.)195Participation in the PET Chemical Recycling Business196Performance197Paper Consumption(Non-Consolidated)197Recycling Volume197Water Discharge198Waste Emissions199Independent Practitioners Assura

19、nce199Environmental Management 145Policy145MCs Environmental Policy145Green Procurement Policy146Structure 147Environmental Management Systems(EMS)Promotion Framework 147Status of ISO 14001 Acquisition 148Environmental Audits 151Environmental Communications151Initiatives 152Procurement of CO2-Free E

20、lectricity for the Head Office Building 152Relevant Data153Number of Environmental Reports and Corrective Measures153Water Resources 154Policy154Targets154Structure155Risk Management155Initiatives157Initiatives to Maximize Water Efficiency157Initiatives to Reduce Water Consumption157Initiatives in W

21、ater-Stressed Regions160Providing Solutions through our Business Activities161External Collaboration163Responding to CDP163Participation in the Water Project of the Ministry of theEnvironment of Japan163Collaboration with NGOs163Performance164Water Withdrawal164Water Consumption164Water Recycling Vo

22、lume and Rate165Independent Practitioners Assurance165Biodiversity 166Policy166Targets166Structure167Risk Management167Identifying and Responding to Dependencies and Impacts onNature Using the TNFD Beta Framework168Initiatives171Examples of Protection/Conservation Activities throughBusiness Operatio

23、ns171External Collaboration176Status of Participation in the Round Table on Responsible SoyAssociation(RTRS)176Compliance with the Soy Moratorium(Moratria da Soja)176Participation in CDP176Cermaq Initiatives177Examples of Collaboration with Government Bodies178Examples of Collaboration with Internat

24、ional Organizations andNGOs179Foundation and Fund Activities181Examples of Collaboration with Other Companies181Performance182Results of Social Contribution Activities182Prevention of Pollution 183Policy183Targets183Structure184Risk Management184Initiatives 185Initiative to Reduce Waste Production(N

25、on-Consolidated Basis)185MC Fashions“THE ME”Business 186Initiatives with Lawson,Inc.to Reduce Waste Losses187Initiatives to Reduce Waste Production(Mitsubishi Shokuhin Co.,Ltd.)187Application of Life Cycle Analysis in our Salmon Farming Business 188Initiatives to Prevent Oil Spills 188Climate Change

26、 70Our Approach70Introduction and Mission 70Creating MC Shared Value 70Partnerships with Stakeholders 73Governance 75New Activities Based on the Roadmap to a Carbon Neutral Society and Midterm Corporate Strategy 2024-Creating MC Shared Value 77Roadmap to a Carbon Neutral Society 77Sustainability as

27、a Growth Lever 771.5 Scenario Analysis79Approach to Scenario Analysis 79The 1.5 Scenario Used in FY2022 79Influences and Considerations for the FY2022 1.5C Scenario 81Results of the 1.5C Scenario Analysis andRelevant Implications 82Identification of Businesses Subject to Analysis 82Climate Risks 82C

28、limate Opportunity 89Summary 91Physical Risks92Physical Risk Assesment Process 92Physical Risk Assessment Results 94Key GHG Metrics and Disclosure Highlights95Targets 95Our Footprint(Scope 1&2)97Independent Practitioners Assurance 99Scope 3 Category 11 100Avoided Emission 101Policy on Coal-fired Pow

29、er Generation Businesses(IPP and EPC)104Mitigation and Adaption Initiatives(FY2022)105Japanese Offshore Wind Power Generation Business 105New Service Model Aimed at the Spread of EVs 106Smart Charging Platform in the Mobility Area 107Studies on the Production and Use of Hydrogen at New Chitose Airpo

30、rt Area 107Participation Agreement for Carbon Sequestration Project in Louisiana 107Award of Greenhouse Gas Assessment Permit in Western Australia108Launch of New Startup Accelerator Program to Promote Decarbonization 109Joint Feasibility Study Aimed at Commercializing SAF and Other Next-generation

31、Fuels in Japan 109Beyond Materials Corporation,a Specialized Strategy and Engineering Service Provider to Support Materials Suppliers Area110Mitigation and Adaption Initiatives(Before FY2021)111Renewable Energy 111Electric Vehicles(EVPHEV)/Battery 116Ammonia Fuel/Hydrogen Energy 118CCUS 121Carbon Cr

32、edit 125Other Low-Carbon/Decarbonized Businesses(Green Logistics,Green Buildings,etc.)127Other Data and Report137Other Reference Data 137Climate Reports 138TCFD Reporting 138Natural Gas and LNG-related Data139Equity Share of Oil and Gas Upstream Production 139Involvement in LNG Projects 140Renewable

33、 Energy Related Data143List of Renewable Energy Projects 143List of Power Transmission Businesses Related to Offshore Wind Power Generation Projects 144Human Rights 201Policy201Basic Approach on Human Rights201Policy on Childrens Rights204Policy on Indigenous Peoples Rights204Policy on the Appointme

34、nt of Armed Security204Structure205Consultation Desk Framework206Dialogue with Stakeholders206Human Rights and Environmental Due Diligence 207Human Rights and Environmental Risks 207Initiatives209Employee Training209Support for Vulnerable Children and At-Risk Youth210Friendship Camp for Mothers and

35、Children210Examples of External Collaboration211Examples of Collaboration with International Organizations211Participation in Initiatives211Labor Practices 2121.Labor Standards,Labor Environmentand Related Matters212Policy212Basic Approach to Human Resources212Policy on Labor Practices213Structure21

36、4Risk Management214Initiatives215（1）Conducting Fair Recruitment Activities and Providing JobOpportunities215（2）New Work Styles Befitting MC216（3）Respect for Human Rights216Relevant Data217SocialSocialSustainability Report 2022Mitsubishi CorporationContents2Human Rights201Policy201Basic Approach on H

37、uman Rights 201Policy on Childrens Rights 204Policy on Indigenous Peoples Rights 204Policy on the Appointment of Armed Security 204Structure 205Consultation Desk Framework 206Dialogue with Stakeholders 206Human Rights and Environmental Due Diligence 207Human Rights and Environmental Risks 207Initiat

38、ives209Employee Training 209Support for Vulnerable Children and At-Risk Youth 210Friendship Camp for Mothers and Children 210Examples of External Collaboration211Examples of Collaboration with International Organizations 211Participation in Initiatives 211Labor Practices2121.Labor Standards,Labor En

39、vironment and Related Matters212Policy212Basic Approach to Human Resources 212Policy on Labor Practices 213Structure 214Risk Management 214Initiatives215（1）Conducting Fair Recruitment Activities and Providing Job Opportunities 215（2）New Work Styles Befitting MC 216（3）Respect for Human Rights 216Rele

40、vant Data2172.Employee Relations218Policy(Freedom of Association and Collective Bargaining)218Basic Approach218Policy on Freedom of Association and Collective Bargaining 218Collective Bargaining218Structure219Risk Management219Initiatives220Performance221Agreement on Collective Bargaining221Diversit

41、y Management 222Policy222A Flexible and Powerful Organization Capable of Adapting toChanging Business Environments222Structure224Initiatives224Supporting Employees with Family Responsibilities224Supporting Womens Careers at MC228Engaging the Senior Workforce230Diverse Employment Opportunities for Pe

42、rsons with Impairments 231Engaging a Global Workforce231Relevant Data232Data on Employees Using MCs Various Systems(As of March31 Each Year)232Percentage of Women in Management-Level Positions andGender Composition of Board Members234MC Women Overseas(As of April 2022)235Employment Rate of Persons w

43、ith Impairments236Independent Practitioners Assurance236Evaluation by Society237Key Certifications237Well-being(Health&Productivity Management,Occupational Safety and Health)239Policy239Management Message239MC Group Occupational Safety and Health(OSH)Policy239Fostering Vibrant Workplaces That Maximi

44、ze the Potential of aDiverse Workforce and Reducing Health Risks240Supply Chain Initiatives240Policy to Proactively Address Global Health Issues(HIV/AIDS,Tuberculosis,Malaria)240Targets241MC Group241MC241Structure242Employee Participation244Loan and Investment Screening244Risk Management(Risk Assess

45、ment)245Reporting of Workplace Accidents245Initiatives246Initiatives on a Non-Consolidated Basis246Employee Health Management247Initiatives on a Consolidated Basis252Performance Data255Occupational Safety and Health Data(Consolidated and Non-Consolidated Basis)255Other Data258Independent Practitione

46、rs Assurance260Human Resource Development 261Policy261Principles of Human Resource Development261Targets262Priority Targets and Current Status262Structure264MC Group HRD Program Structure264Initiatives265Introduction of Human Resource Development Programs265Performance272Human Resource Development a

47、nd Training Data272Customer Responsibility 274Policy274Responsible Advertising and Marketing274Policy and Approach Related to Food Products Businesses 275Access to Better Nutrition and Medical Care275Targets278Initiatives278Initiatives on a Non-Consolidated Basis278Initiatives in the Food Science Bu

48、siness279Response to Issues Related to the Food Products Business 280Nutritious Product Initiatives284Initiatives for Better Access to Medical Care286Corporate Philanthropy287Participation in External Initiatives289Global Multi-Stakeholder Partnerships-UN Global Compact ActionPlatform for Sustainabl

49、e Ocean Principles289Seafood IndustrySeaBOS289Salmon Aquaculture Industry Global Salmon Initiative(GSI)289Community 290Policy290Basic Approach290Policy on Community Investment290Policy on Local Employment and Procurement290Policy on Mine/Site Decommissioning291Structure291Risk Management291Corporate

50、 Philanthropy Activities292Employee Volunteer Activities292Examples of Initiatives301Urban Development Projects to Enhance Urban Value in Indonesia 301HEREs DX Business302Local Procurement in the MDP Business303Mine Closure Initiatives303Community Investment304Other Reference Data308Donation Amounts

51、308Supply Chain Management 309Policy309Basic Policy309Individual Guidelines311Animal Welfare Policy for Suppliers312Bluefin Tuna Sustainable Sourcing Policy312Structure313Risk Management314Initiatives322Employee Training322External Collaboration322Participation in Supply Chain Initiatives322Cermaq I

52、nitiatives324Mitsubishi Corporation Packaging Ltd.Initiatives325Lawson,Inc.325Princes326MC FOODS Ltd.Initiatives326Olam327Related data329Data on RSPO-Certified Palm Oil329Data on ASC-Certified Products329Data on FSC CoC-Certified Products329Sustainability Report 2022Mitsubishi CorporationContents3Di

53、rectors and Audit&Supervisory Board Members Remuneration:Total Amounts and Number of Eligible Persons in the Fiscal 379Names,Titles,Total Amounts of Consolidated Remuneration and Amount by Type of Remuneration for Each Director and Audit&Supervisory Board Member 381Significant Employee Salaries of D

54、irectors and Audit&Supervisory Board Members Serving Concurrently as Employees 382Employee Salaries 382Compliance 383Policy383Structure 384Investigations of Compliance Violations and Response Systems 384Monitoring System 388Initiatives389Initiatives for Preventing Corruption389Initiatives in Selecti

55、ng and Managing Agencies,Intermediaries,etc.390Mitsubishi Corporation Groups Anti-Corruption Guideline390Cases of Corruption390Internal Whistleblowing System391Supervision by the Board of Directors393Performance394Results of Compliance Training394Number of Compliance Violations394Provisions Concerni

56、ng Legal Violations and Litigation395Tax Transparency395Risk Management 396Policy396Risk Management System396Overview396Responding to Business Investment Risk398Crisis Management on a Consolidated Basis/Business Continuity Management(BCM)399Structure and Concept399Status of Initiatives in Normal Con

57、ditions400Business Continuity Management(BCM)401Implementation Status Monitoring403Information Security and Cyber Security Measures404Independent Auditors404MCs Primary Stakeholders 405Customers and Partners406Examples of Engagement406Employees406Examples of Engagement406Shareholders,Investors and C

58、reditors407Examples of Engagement407Local Communities407Examples of Engagement407NGOs408Examples of Engagement408Governments and Local Authorities408Examples of Engagement408External Evaluations 409Independent Practitioners Assurance Report 411Corporate GovernanceBoard of Directors and Shares,etc.33

59、1MCs Basic Policy on Corporate Governance331Board of Directors 332Composition and Size of the Board of Directors and the Policyand Process for Appointing Nominated Directors 332Skills Matrix of Directors and Audit&Supervisory Board Members 333Composition of the Board of Directors335Matters Deliberat

60、ed by the Board of Directors341Board of Directors Advisory Bodies342Governance,Nomination and Compensation Committee342International Advisory Committee343Independent Directors and IndependentAudit&Supervisory Board Members345Selection Criteria for Independent Directors and IndependentAudit&Superviso

61、ry Board Members348Enhancing the Monitoring Function of the Board ofDirectors350Briefing Sessions Before Board of Directors Meetings350Meetings of Independent Directors and Independent Audit&Supervisory Board Members 350Discussion between Independent Members of the Board and Officers and Employees 3

62、51Dialogues with and Site Visits to Business Subsidiaries and Affiliates 351Orientation upon Assumption of Office 351Evaluation of the Effectiveness of the Board of Directors 352Review Midterm Corporate Strategy 2021/Formulation for Midterm Corporate 353Initiatives on Japans Corporate Governance Cod

63、e 354MCs Stance on Acquisition,Holding,and Reduction in ListedShares 354MCs Pension Management Structure355Policy and Procedures for Appointment and Dismissal of Management Executive and Appointment of Nominated Directors and Audit&Supervisory Board Members 355Details of Retired Executives Currently

64、 Serving in Advisory Positions 357Policy of Dialogue with Shareholders 357Corporate GovernanceAudit&Supervisory Board and Audit 360Audit&Supervisory Board Members/Audit&Supervisory Board360Audit Plans362Audits of Management Performance363Enhancing the Effectiveness and Auditing Activities of the Aud

65、it&Supervisory Board(Members)365Enhancement of Tripartite Audits366Audit367Audit&Supervisory Board Member Audits367Internal Audits367Accounting Audits368Mutual Cooperation among Audit&Supervisory Board MemberAudits,Internal Audits and Accounting Audits,and theirRelationship with Internal Control Dep

66、artments368Corporate GovernanceDirectors and Audit&Supervisory Board Members Remuneration,etc.369Directors and Audit&Supervisory Board MembersRemuneration369Basic Approach to the Package369The Process for Setting Remuneration for Directors and Audit&Supervisory Board Members371Calculation Method for

67、 Performance-Linked Remuneration 373Conceptual Image of Payment Mix for Remuneration of ExecutiveDirectors377Guideline for Share Ownership(Standard)377Deliberation Process Regarding the Revision of RemunerationPackage for Executive Directors378GovernanceGovernanceSustainability Report 2022Mitsubishi

68、 CorporationContents4Mitsubishi Corporation(MC),since its establishment,hasheld the Three Corporate Principles as its core philosophy,and aims to contribute to the sustainable development ofsociety by conducting its global business activities withintegrity and fairness in line with these principles.

69、The need to find solutions to the challenges facing theglobal environment and society is becoming more urgent,and expectations upon the private sector to be part ofthose solutions to societal issues such as climate change,human rights,and biodiversity are increasing year by year.In Oct 2021,MC formu

70、lated its“Roadmap to a Carbon Neutral Society”which sets out our steps towardsachieving a carbon neutral society,fulfilling our responsibility as an active player in industries including resourcesand energy by maintaining stable energy supply while providing decarbonization solutions.In this Roadmap

71、,in addition to committing to halve GHG emissions by FY2030&achieve Net Zero by 2050,wehave also established“Integrated EX(Energy Transformation)/DX(Digital Transformation)initiatives to Create aNew Future”as a common theme for company-wide business promotion.Furthermore,Midterm Corporate Strategy 2

72、024 sets forth MC Shared Value(MCSV)as the continuous creationof significant shared value by enhancing the MC Groups collective capabilities in order to address societalchallenges.Through our efforts to create MCSV,we aim to continue to grow together with society by linking the growth ofour employee

73、s with the development of the company.In addition,with the aim of creating MCSV,we also announced the redefinition of our previous Key SustainabilityIssues in the form of eight Materiality as the crucial societal issues that the MC Group will prioritize through ourbusiness activities,and our intenti

74、on to utilize these issues as concrete measures for achieving our Roadmap to aCarbon Neutral Society.ESG has become an indispensable perspective for long-term corporate growth in recentyears,making the formulation of management strategies which incorporate environmental and social impacts animperati

75、ve.Through proactive dialogue with our stakeholders,including by expanding information disclosure in line with therecommendations of the TCFD1,MC will work to grasp the needs and expectations of society,and in addition tosupporting the United Nations Global Compact2,we will fulfill our responsibilit

76、ies as a member of the globalcommunity.The MC Group,which has achieved growth by boldly shifting our business models in line with societal changes,will continue to help provide solutions,including with respect to global agenda items such as responding toclimate change,through our business.Top commit

77、mentMessage from Executive Vice PresidentSocialEnvironmentGovernance51 Voluntary disclosure framework formulated by the TCFD(the Task Force on Climate-Related Financial Disclosures,launched by the UN Financial Stability Board)stipulating information that companies and other entities should discloset

78、o financial markets,with the aim of helping those markets to appropriately evaluate the risks and opportunitiespresented by climate change.2 A United Nations initiative for businesses and other organizations to support 10 universal sustainability principles in thefields of human rights,labor standar

79、ds,environment and anti-corruption.MC declared its support for this initiative in2010.Yutaka KashiwagiMember of the BoardExecutive Vice PresidentCorporate Functional Officer,IT,CAO,Corporate Communications,Corporate Sustainability&CSRSocialEnvironmentGovernance6Contributing to Society through Busine

80、ss Firmly Rooted in Principles of Integrity andFairnessThe Three Corporate Principles Corporate Responsibility to Society,Integrity and Fairness,and GlobalUnderstanding Through Business have served as MCs core philosophy since MCs inception,inspiring us toconduct fair and sound business activities a

81、t all times.We have constantly endeavored to enhance our complianceinitiatives.Measures have included establishing the Corporate Standards of Conduct to set forth our expectationswith regard to how business should be conducted,in conjunction with developing various compliance-relatedinternal rules,i

82、ntroducing a compliance officer system,and expanding and upgrading risk managementframeworks.The Mitsubishi Corporation Code of Conduct requires employees to conduct business in compliancewith laws and regulations as well as global standards such as the Universal Declaration of Human Rightsestablish

83、ed by the United Nations(UN)and the core labor standards of the International Labor Organization(ILO).It also requires officers and employees(including full-time and part-time employees,secondees andtemporary staff;hereinafter only referred to as officers and employees)to act in a socially responsib

84、le mannerby complying with the highest ethical standards,and to acknowledge commitment to the Mitsubishi CorporationCode of Conduct.MC adopted the Environmental Charter and Social Charter in accordance with the ThreeCorporate Principles,and we commit to increase our corporate value as well as to con

85、tribute to the sustainabledevelopment of society,as a globally integrated business enterprise.MC Group companies share a commonhistory and philosophy as they continue to grow together and learn from one another.The Three Corporate Principles,Corporate Standards of Conduct,Code of Conduct,Environment

86、al Charter,and SocialCharter are shared with all MC Group employees globally via a portal site for MC Group companies as well as throughvarious internal training programs.Philosophy and Approach Related toSustainabilityThe Three Corporate PrinciplesCorporate Standards of ConductMitsubishi Corporatio

87、n Code of ConductMitsubishi Corporation Environmental CharterMitsubishi Corporation Social CharterMC Group VisionValue Creation ProcessPhilosophy and ApproachThe Three Corporate PrinciplesSocialEnvironmentGovernance71.Aim of Corporate Business ActivitiesThrough its business activities,Mitsubishi Cor

88、poration will endeavor to increase its value.At the same time,MC will strive to enrich society in all ways,developing and offering its customers the best services andproducts,with the highest regard for safety.2.Fairness and Integrity in Corporate Business ActivitiesMitsubishi Corporation will conti

89、nue to develop its business activities in compliance with all relevant laws,international regulations and internal rules.MC will act responsibly and will respect the highest socialstandards.3.Respect for Human Rights and EmployeesMitsubishi Corporation will respect human rights and will not engage i

90、n any discrimination.MC will preserveand improve its corporate strengths through the development of its employees,all the while respecting thecharacter and individuality of each employee.4.Information Security and DisclosureWhile Mitsubishi Corporation will continue to develop,implement and improve

91、the effectiveness of itsinformation security management system,at the same time MC will disclose information accurately and in atimely fashion,so as to maintain transparency and be correctly understood by both its stakeholders and thegeneral public.5.Consideration for Environmental IssuesMitsubishi

92、Corporation understands that an enterprise cannot continue to prosper without consideration forits environmental performance,and will strive to protect and improve the global environment and pursuesustainable development through all aspects of its business activities.6.Contribution to SocietyAs a re

93、sponsible member of society,Mitsubishi Corporation will actively carry out philanthropic programs inan effort to promote the enrichment of society.Moreover,MC will support efforts of its employees tocontribute to society.Corporate Standards of ConductSocialEnvironmentGovernance8All officers and empl

94、oyees of Mitsubishi Corporation(the“Company”)must comply with all applicable laws,rulesand regulations where they operate,international standards and rules,and all internal corporate rules andpolicies.In addition,all officers and employees of MC must act in a socially responsible manner by complying

95、 withthe highest ethical standards in the conduct of their business.1Respect human rights,and do not discriminate on any basis or engage in any form of harassment.2Maintain a high regard for environmental considerations in conducting our business operations,and ensurethat our business is conducted i

96、n an environmentally sustainable manner,and comply with treaties,laws andregulations concerning the environment.3Promote fair business practices and comply with trade rules,regulations,and internal corporate rules andpolicies.4Comply with the rules and regulations of international trade.5Protect and

97、 properly use confidential and proprietary information,protect the rights of MC and respect therights of others.6Do not engage in insider trading.7Avoid conflicts of interest with MC;maintain a distinction between corporate and private business.8Record and report accounting and financial information

98、 timely and accurately.9Maintain proper legal and ethical standards with respect to gifts and entertainment.10Resolutely oppose any organization,group or individual engaged in unlawful activities and do not providemoney or other types of economic benefits to them.11Promptly report to or consult the

99、superiors,the Group Compliance Officers,the relevant departments,theSecretariat for the Compliance Committee,or the outside counsel in charge of Compliance upon discoveringor committing any violations of this“Code of Conduct.”Mitsubishi Corporation Code of ConductBasic PolicyBasic PrinciplesSocialEn

100、vironmentGovernance9At Mitsubishi Corporation we consider the Earth itself to be our most important stakeholder and are continuallyworking towards the realization of a sustainable society through our business activities.We will strive to reduce greenhouse gas emissions by continually implementing ne

101、w efficiency measures andembracing new technologies.We will promote the sustainable use of natural resources including energy,minerals,food stocks and waterthroughout our global business operations.We recognize the critical importance of what ecosystems can provide and are committed to protectingeco

102、systems and mitigating any potential impacts on biodiversity.We will strive to create and enhance environmental value through environmental conservation andenvironmental impact reduction measures including pollution prevention.We will continue to actively engage and work with our various stakeholder

103、s openly and transparently anddisclose information on the environmental impacts of our business operations in an appropriate and timelymanner.We will conduct all of our activities in compliance with environmental laws while adhering to international rulesand social standards.Mitsubishi Corporation s

104、trives to achieve sustainable societal value though our business operations by contributingtowards lasting solutions to the wide spectrum of sustainability challenges facing todays global society.We will work to address local societal challenges in the regions and communities in which we operate,con

105、tributing towards lasting and sustainable development through our business activities.We will continue our wide-ranging philanthropic commitments while regularly adapting our approach in linewith ever-evolving societal needs and challenges.We will fully respect human rights and indigenous peoples ri

106、ghts.We will fully respect fundamental labor rights and endeavor to ensure the provision of proper workingenvironments with consideration for safety,health,and other aspects.We will not engage in corruption of any kind and will take appropriate preventative measures to safeguardagainst such practice

107、s.We will continue to actively engage and work with our various stakeholders openly and transparently anddisclose information on the social impacts of our business operations in an appropriate and timely manner.Mitsubishi Corporation Environmental CharterMitsubishi Corporation Social CharterSocialEn

108、vironmentGovernance10Achieving Sustainable Growth for the MC Group and SocietyThe MC Group aims to deliver sustainable growth by adapting to changes in the business environment andfulfilling societal needs in due consideration for the United Nations Sustainable Development Goals(SDGs).Toachieve this

109、 aim,the MC Group shall rely on three core strengths,namely its collective capabilities to adopt aholistic view of industry,the foresight to identify new seeds of growth,and its execution skills to germinate them.Mission&Corporate PhilosophyThe Three Corporate Principles serve as the MC Groups core

110、philosophy and underpin its commitment tofair,responsible,and global business practices.By pooling its collective capabilities,the MC Group strives to fulfill societal needs and meet stakeholderexpectations by simultaneously generating economic,societal and environmental value.AdaptabilityThe MC Gro

111、up prides itself in adapting to our ever-evolving world,anticipating and responding to changes ingeopolitical,economic and industrial landscapes,the last two of which are being increasingly driven byinnovations in technology.Consolidated Growth StrategyThe MC Group includes approximately 1,700 enter

112、prises,and as the MC Group works to raise theirconsolidated earnings,it remains equally committed to growing their individual corporate value,whilesimultaneously generating three values.By leveraging the diverse expertise found throughout its network of Group companies and more than 130Business Unit

113、s,MC shall continue to innovate and inspire global industries.MC shall optimizes its portfolio by dynamically allocating management resources based on its level ofengagement in each business.Sizeable growth investments are companywide commitments to develop next-generation earnings drivers.The MC Gr

114、oup is dedicated to rearing the highest quality of management professionals,ehically groundedleaders with the foresight to identify new seeds of growth and the execution skills to germinate them.Regardless of how our world evolves,there will always be opportunities to deliver goods and services that

115、meet societal needs and improve our quality of life.This recognition is the very foundation of MCsconsolidated growth strategy.MC Group VisionSimultaneously Generating Economic Value,Societal Value andEnvironmental Value through Our BusinessesSocialEnvironmentGovernance11MCs businesses are underpinn

116、ed by financial and other capitals which exist both internally and externally.We invest the capitals into businesses to address social challenges through our businesses and continuouslycreate significant shared value.The created shared value strengthens the capitals and becomes a source offurther va

117、lue creation.By repeating this cycle,we aim to achieve sustainable growth.For more details of Value Creation Process,please refer to our Integrated Report(Integrated Report/AnnualReport|Mitsubishi Corporation).Value Creation ProcessSocialEnvironmentGovernance12Based on the Three Corporate Principles

118、,which have served as MCs core philosophy since its inception,MCidentified a set of Key Sustainability Issues in 2016 as mileposts for proactively realizing“triple-value growth”through the simultaneous generation economic,societal and environmental value.While responding to therequests of all stakeh

119、olders,MC has worked to address various societal issues through its business activities andhas contributed towards the sustainable development of society as well as value creation.Six years have passed since the Key Sustainability Issues were identified,and stakeholder expectations ofcompanies regar

120、ding issues such as climate change have grown even higher,while the issues that companiesmust address also continue to evolve.Against this backdrop,in order to further raise our corporate value over themedium to long term,we conducted a review of our Key Sustainability Issues from the perspective of

121、 theirimportance to our business activities.The revised Materiality was announced in Midterm Corporate Strategy2024 as a set of crucial societal issues that we will prioritize through our business activities,towards thestrategys goal of continuous creation of MC Shared Value.Out of the eight redefin

122、ed material issues,the six that we will pursue through our business activities arecategorized as“Realizing a Carbon Neutral Society and Striving to Enrich Society Both Materially and Spiritually”,while the two that we will pursue through organizational management are grouped as“Striving to Serve as

123、aPlatform for Generating Triple-Value Growth”.Guided by our Materiality,we will continue to strengthen our effortstoward sustainable corporate growth.MaterialitySocialEnvironmentGovernance13IssuesOverviewRealizing a Carbon Neutral Society and Striving to Enrich Society Both Materially and Spirituall

124、yStriving to Serve as a Platform for Generating Triple-Value GrowthOverview of MaterialityContributing toDecarbonized SocietiesContribute to the realization of decarbonizedsocieties by striving to reduce greenhouse gas(GHG)emissions,while providing products andservices that support decarbonization d

125、uring thetransition period.moreConserving andEffectively UtilizingNatural CapitalRecognizing the Earth itself to be our mostimportant stakeholder,strive to maintainbiodiversity and conserve natural capital,andwork to create circular economies while reducingour environmental footprint.morePromoting S

126、table,Sustainable Societiesand LifestylesPromote sustainable societies and lifestyles ofthe future through businesses in a diverse rangeof countries and industries,while fulfilling ourresponsibility to provide a stable supply ofresources,raw materials,products,services,etc.,in line with the needs of

127、 countries andcustomers.moreUtilizing Innovation toAddress Societal NeedsCreate businesses that help to address societalneeds while working to spur major industryreforms that are supported by businessinnovation.moreAddressing RegionalIssues and GrowingTogether with LocalCommunitiesStrive to contribu

128、te to the development ofeconomies and societies by addressing issuesfacing countries and regions,while seeking togrow together and collaborate with diversestakeholders,regions and communities.moreRespecting HumanRights in Our BusinessOperationsRespect the human rights of all stakeholdersinvolved in

129、promoting our diverse operationsworldwide,and pursue solutions for value chain-related issues,while considering the localconditions in each country.moreFostering VibrantWorkplaces ThatMaximize the Potentialof a Diverse WorkforceRecognizing that our human resources are thegreat assets of our business

130、es,foster a diverseand versatile talent pool that drives efforts togenerate triple-value growth throughout ourorganization,and also seek to develop anorganization where diverse human resourcesshare common values and grow together whilefurthering their connections and inspiring oneanother to excel.mo

131、reRealizing a HighlyTransparent andFlexible OrganizationWhile swiftly responding to changes in thebusiness environment,strive to realize effectivegovernance on a global,consolidated basis andmaintain/strengthen a sound organization that istransparent and flexible.moreSocialEnvironmentGovernance14MC

132、regards its Materiality as a navigating principle for the continuous creation of significant MC Shared Value,aswe aim to create this value by strengthening the MC Groups collective capabilities to address societal challenges.To effectively achieve this target,each Division and Business Group establi

133、shes“Action Plans”,which serve asmid-term plans related to the relevant material issues for each business or initiative,and tracks their progressthrough annual reviews.MC has thereby established a mechanism to confirm how our Materiality serves ourbusiness strategies,initiatives and organizational m

134、anagement that lead to the creation of MCSV.Here is a typical example of such an Action Plan.Integrating Materiality into ManagementSocialEnvironmentGovernance15By leveraging its collective capabilities and engaging in a variety of businesses,our company will contribute toaddressing a wide range of

135、societal challenges and ensure sustainable growth.We believe that promotingbusinesses based on our material issues will also help to achieve the Sustainable Development Goals(SDGs)related to each key issue.IssuesOverviewRealizing a Carbon Neutral Society and Striving to Enrich Society Both Materiall

136、y and SpirituallyStriving to Serve as a Platform for Generating Triple-Value GrowthRelevance of MCs Materiality to the SDGsContributing toDecarbonized SocietiesmoreConserving andEffectively UtilizingNatural CapitalmorePromoting Stable,Sustainable Societiesand LifestylesmoreUtilizing Innovation toAdd

137、ress Societal NeedsmoreAddressing RegionalIssues and GrowingTogether with LocalCommunitiesmoreRespecting HumanRights in Our BusinessOperationsmoreFostering VibrantWorkplaces ThatMaximize the Potentialof a Diverse WorkforcemoreRealizing a HighlyTransparent andFlexible OrganizationmoreSocialEnvironmen

138、tGovernance16Materiality Identification ProcessSocialEnvironmentGovernance17Contribute 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.We regard achieving a

139、 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 toDecarbonized Societies as one of our materialties.By leading this transformation and connecting it to

140、 our ownbusiness growth,we will create MC Shared Value.In addition to promoting our own decarbonization(Halve byFY2030(compared to FY2020)and net zero by 2050),we will contribute to the decarbonization of society bycreating avoided emissions through EX-related investments on a scale of 1.2 trillion

141、yen over the three-yearperiod of Midterm Corporate Strategy 2024.Materiality DetailsContributing to Decarbonized SocietiesConserving and Effectively Utilizing Natural CapitalPromoting Stable,Sustainable Societies and LifestylesUtilizing Innovation to Address Societal NeedsAddressing Regional Issues

142、and Growing Together with Local CommunitiesRespecting Human Rights in Our Business OperationsFostering Vibrant Workplaces That Maximize the Potential of a Diverse WorkforceRealizing a Highly Transparent and Flexible OrganizationContributing to Decarbonized SocietiesRelated SDGs ThemesAction Plan Reg

143、arding this Material IssueSocialEnvironmentGovernance18MC is expanding its renewable energy business in Japan and abroad to achieve a decarbonized society.Inconnection with this initiative,MC is moving ahead with the goal of doubling its renewable energy equitygeneration capacity from 3.3 GW in FY20

144、19 to 6.6 GW in FY2030.Initiatives in Europe for the Proliferation of Renewable Energy(Eneco)Eneco,a Dutch integrated energy company and MC subsidiary,operates power generation businesses,power andgas trading businesses,power and gas retail businesses,and district heating businesses focused in theNe

145、therlands,Belgium,and Germany with renewable energy at its core.With a solid customer base that is thethird largest in the Netherlands,Eneco has approximately 1,800MW of renewable energy assets.Since 2007,Eneco has developed renewable energy ahead of its competitors and has established a position as

146、 a green brandby providing consumers with 100%green energy(including the use of green certificates)since 2011.Eneco is aninnovative company that has set customer-focused services as an objective since an early stage.In addition,in2021,Eneco announced its updated One Planet Plan,which aims to achieve

147、 carbon neutrality by 2035,coveringCO2 emissions not only from its own activities(Scope 1/2)but across its value chain(Scope 3)as well,whichincludes electricity,gas retailing and heat retailing to businesses and households.Eneco is also recognized bothdomestically and internationally as a company ac

148、tively working toward measures to address climate change.Doubling Renewable Energy Power Generation CapacitySocialEnvironmentGovernance19MC is focusing on the practical implementation of hydrogen in society and the commercialization of ammonia,anexcellent means of transporting and storing hydrogen.M

149、C is proceeding with joint testing with our partners ateach stage of the value chain,“production,”“transportation”and“usage.”Advanced Hydrogen Energy chain Association fortechnology DevelopmentImplementation of Next Generation Energy Supply ChainsSocialEnvironmentGovernance2 0Hydrogen EnergyMC parti

150、cipated in the New Energy and Industrial Technology Development Organization(NEDO)-subsidizedDemonstration of Unused Energy-Based Hydrogen Supply Chain Using Organic Chemical Hydride Method project,which came to a successful conclusion in December 2020,and we have now entered the commercial projectd

151、evelopment phase.MC is currently proactively working to establish an international hydrogen value chain.In March 2020,MC,along with five private Singaporean companies and Chiyoda Corporation signed amemorandum of understanding(MOU)aimed at the realization of a sustainable hydrogen economy in Singapo

152、rein the presence of Singapore government officials.In addition,MC signed an MOU in July 2021 with the Port ofRotterdam Authority,Koole Terminals and Chiyoda for the joint study of commercial-scale imports of hydrogen tothe Port of Rotterdam.In October 2021,MC signed an MOU with Sembcorp and Chiyoda

153、 to establish a strategicalliance aimed at exploring the feasibility and implementation of a commercial-scale,decarbonized hydrogensupply chain in Singapore,and have been engaged in specific discussions and studies.As a result,in October2022,a new agreement was reached to further examine the technic

154、al and commercial aspects of the hydrogensupply chain business and to accelerate detailed studies toward a final investment decision,including a conceptualplant design.Chiyoda Corporations hydrogen storage and transportation technology(SPERA Hydrogen)is expected to play akey role in MCs aforemention

155、ed initiatives.MC continues to discuss,consider and take concrete steps towards therealization of a cost-effective,international hydrogen energy supply chain together with the above companies andothers who have shown significant interest in SPERA Hydrogen technology and related business opportunitie

156、s.SocialEnvironmentGovernance2 1Ammonia FuelFor the“production”stage of the fuel ammonia,MC is currently assessing the production process with acombination of fossil fuels and Carbon Capture,Utilization and Storage(CCUS).MC is considering this as apractical option both from a technical and economic

157、perspective.However,at the same time,MC is alsoproceeding with reviewing more environmentally-friendly methods such as hydrogen and ammonia productionderived from renewable energies and hydrogen production that utilizes photocatalytic technology.For the“transportation”stage,it is assumed that large-

158、scale transportation and storage of ammonia fuel will benecessary,so MC will respond by utilizing its expertise in logistics cultivated through its existing businesses.Forthe“usage”stage,MC will leverage our relationships with energy industry players that we have cultivatedthrough our existing busin

159、esses.MC has also begun detailed studies for the joint full-scale introduction at eachcompany.As a concrete example,MC has reached an agreement with the Texas-based independent energy companyDenbury Inc.(“Denbury”)on the key term-sheet of CO2 transport and storage operations,via Denburys whollyowned

160、 subsidiary Denbury Carbon Solutions LLC.The business is in line with MCs aim to commence productionof fuel-use ammonia in the US Gulf of Mexico.The estimated CO2 volume to be captured from the ammoniafacility is maximum 1.8 million metric tons per annum.Under the terms of our agreement with Denbury

161、,thecaptured CO2 will be either sequestered underground via Denburys EOR(Enhanced Oil Recovery)or CCS,whichDenbury plans to develop in the future.The term sheet contemplates an initial period of 20 years,with the abilityto extend further.SocialEnvironmentGovernance2 2Mineral resources such as copper

162、 are essential products which are used for renewable energy and electrificationand are vital to achieving a decarbonized society.MC aims to expand our copper business through organic growthopportunities in existing assets,which boast some of the worlds largest copper reserves,increasing our interest

163、in existing assets,acquiring new assets and utilizing new technologies to improve resource recovery.Quellaveco Copper Project InitiativesQuellaveco is a large-scale,highly cost-competitive copper mine in Southern Perus Moquegua Region,jointlydeveloped by MC and Anglo American plc,which is adopting a

164、dvanced technologies and eco-conscious initiatives.MC is one of Japans largest copper producers,with a present attributable equity production of around 250,000tons per annum.After the mine starts full-scale production,the equity copper production is expected to beapprox.320,000-370,000 tons.It is th

165、e first mine in the country to deploy autonomous mining equipment suchas trucks and drills focusing on digital transformation(DX).Also,the operation is powered by 100%renewableenergy.Copper is essential for decarbonization,as it plays a crucial role in developing electric vehicles and renewableenerg

166、y infrastructures such as wind and solar farms.Consequently,mid-to-long-term demand for copper isexpected to continue to rise.However,declining ore grades and environmental restrictions are increasing hurdlesto developing new mines,making stability of supply a significant concern.Quellaveco is a min

167、e which integrates the Energy Transformation(EX)and DX initiatives of MCs MidtermCorporate Strategy 2024.MC intends to grow its copper portfolio to respond to global demand and sustainabilityof supply,thereby helping societies achieve carbon neutrality.Supply of Mineral Resources to Promote an Elect

168、rified SocietySocialEnvironmentGovernance2 3MC,as a company aiming to contribute towards achieving the goals of the Paris Agreement,recognizes that CCUSwill play a major role in achieving those goals.The International Energy Agency(IEA)has stated that CCUS mustbe used to reduce roughly 1.5 billion t

169、ons of CO2 emitted in 2050 in order to achieve the 1.5C target(theremaining amount to be reduced through renewable energy and energy-saving technology),and theIntergovernmental Panel on Climate Change(IPCC)has also emphasized the role that technology should play.CCUS is a field that spans multiple i

170、ndustries,from those that are the source of CO2 emissions,to those thatproduce end-products such as fuel and chemical materials.Therefore,MC recognizes CCUS as a businessopportunity to demonstrate its collective capabilities as a company that interacts with many industries.To takeadvantage of this b

171、usiness opportunity,MC will promote the commercialization of CCUS by establishing a taskforce spanning multiple business groups as well as a liaison committee.Application in the field of Building MaterialsCarbonCure Technologies Inc.is a Canadian company that possesses technology for fixing CO2 into

172、 concretebuilding materials.MC has made an equity participation in CarbonCure and has a business partnership to expandbusinesses related to CarbonCures technology.CarbonCures carbon recycling technology fixes and utilizes CO2into fresh concrete during production,reducing CO2 emissions by reducing th

173、e amount of cement used.Thestrength and dependability of CarbonCures concrete is the same as traditional concrete,and it is currently widelyused commercially,mainly in North America.Further details regarding MCs initiatives on climate change are available here.CCUS InitiativesSocialEnvironmentGovern

174、ance2 4Recognizing the Earth itself to be our most important stakeholder,strive to maintain biodiversity and conservenatural capital,and work to create circular economies while reducing our environmental footprint.Every business in our company is built on the foundation of the natural capital benefi

175、ts that the ecosystemprovides.Therefore,we recognize that the conservation and effective utilization of this natural capital areindispensable to achieving sustainable growth together with society.MC is committed to realizing a circulareconomy by taking advantage of business opportunities while tryin

176、g to diminish our negative impact on the globalenvironment.Conserving and Effectively Utilizing Natural CapitalRelated SDGs ThemesAction Plan Regarding this Material IssueSocialEnvironmentGovernance2 5MC considers the realization of regional circular economies rooted in“local production for local co

177、nsumption”to bea pillar of our EX initiatives.To achieve this,it is essential to make effective use of limited resources and ensurethey are able to circulate as efficiently as possible.MC is committed to the environmentally friendly materialsmanufacturing business through the recycling of materials

178、by utilizing new technologies,bio-carbon recycling,new businesses related to product recycling,and materials and products that support a low-carbon,decarbonizedsociety.PET Chemical Recycling Business with Thai ShinkongMC entered the PET chemical recycling business through an investment in Thai Shink

179、ong Industry CorporationLtd.,which produces PET resins for beverage bottles.PET is highly recyclable mono-material with a wide range ofapplications,including in food and beverage containers as well as in textiles,thanks to its excellent transparency,barrier properties,and well-established collection

180、 and recycling systems.As the transition to a circular economyprogresses worldwide,we will expand our capacity for producing PET resins,for which demand is expected togrow in line with the shift towards mono-materials,and by introducing chemical recycling technologies throughour participation in the

181、 PET chemical recycling business with the aim of“Conserving and Effectively UtilizingNatural Capital”.Promotion of a Circular EconomySocialEnvironmentGovernance2 6Almost all MC businesses interact with the environment and depend upon the benefits ecosystems can provide.Inorder to ensure the future c

182、ontinuity of our business activities,MC needs to understand the extent of ourenvironmental dependencies and impacts,analyze risks and opportunities,minimize excessive reliance andnegative impact on the natural environment,and pursue initiatives that contribute to environmental recovery.Trial Analysi

183、s Using the TNFD BetaFrom this perspective,MC conducted a trial analysis based on the beta version of the TNFD recommendations inFY2022,ahead of the release of the final recommendations.The analytical methods employed to measure levelsof business dependency and impact on the environment are still at

184、 the development stage,therefore we willcontinue to refine and enhance our analysis methods and strive to incorporate the latest frameworks and analysismethods,including the TNFDs final recommendations.More details regarding MCs initiatives on biodiversity are available here.Assessment on Environmen

185、tal Dependencies and ImpactsSocialEnvironmentGovernance2 7Promote sustainable societies and lifestyles of the future through businesses in a diverse range of countries andindustries,while fulfilling our responsibility to provide a stable supply of resources,raw materials,products,services,etc.,in li

186、ne with the needs of countries and customers.Ensuring the stable lives of people is one of our companys greatest mandates,and we believe it is important tofulfill this in a sustainable manner through our business.While continuing to provide the goods and servicesnecessary for maintaining the operati

187、on of the current societal system,we will promote businesses which movesociety forward towards a more sustainable future.Promoting Stable,Sustainable Societies and LifestylesRelated SDGs ThemesAction Plan Regarding this Material IssueSocialEnvironmentGovernance2 8Global energy demand is expected to

188、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,dramatictechnological innovation is essential to supplement renewable energy sources in terms of intermittency,locationand other factors.Th

189、erefore,to meet the worlds 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 supportthe transition period with its relat

190、ively low environmental impact among fossil fuels,as well as reduce GHGemissions throughout the value chain via improvements in operational efficiency,CCUS and other methods.Tangguh LNG Project InitiativesTangguh is the largest gas-producing project in Papua Barat Province of Indonesia,accounting fo

191、r around 20%ofthe countrys 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 1,450 cargoes to globalmarkets including Indonesia and Japan.It has two LNG production trains with

192、a combined capacity of 7.6 milliontons of LNG a year,with a third LNG train currently under construction.Tangguh Train 3 will increase the projectsproduction by approximately 50%.In addition,we are planning the next phase of development including CCUS project,which is based on a Plan ofDevelopment a

193、pproved by SKK Migas(Special Task Force for Upstream Oil and Gas Business Activities Republic ofIndonesia)in 2021.Once the CCUS project is implemented,which is subject to a final investment decision byTangguh Partners,it will remove up to 90%of the reservoir-associated CO2 which represents nearly ha

194、lf ofTangguhs LNG emissions,making Tangguh one of the lowest GHG intensity LNG plants in the world.Fulfilling Our Responsibility for Ensuring a Stable Energy Supply to Supportthe Transition PeriodSocialEnvironmentGovernance2 9Since steel is a basic material that is difficult to replace,its demand is

195、 expected to remain strong over the longterm 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 expectedthat the use of electric furnaces,which main

196、ly use steel scrap,and the use of hydrogen in the ironmaking processwill expand in the future.However,it will take considerable time to realize the necessary technological innovationsand switching of production facilities.Therefore,decarbonization of the blast furnace ironmaking process,which iscurr

197、ently the mainstream process,will be an important issue for the time being.MC will continue to contribute tothe decarbonization of the steel industry by fulfilling our responsibility to provide customers with a stable supplyof high-quality metallurgical coal as one of raw materials for the blast fur

198、nace ironmaking process,one of MCsmajor commodities,and contribute to the decarbonization of the existing blast furnace method.MDP InitiativesMitsubishi Development Pty Ltd.(MDP)which conducts exploration,development,production,and sales ofmineral resources,jointly operates its metallurgical coal bu

199、siness,BMA,together with its partner,BHP.BMAoperates one of the worlds largest metallurgical coal operations,with an annual production volume of approx.63million tons and a share of approx.30%of seaborne trade volume.BMA is fulfilling its responsibility to provide astable supply of high-quality meta

200、llurgical coal that contributes to the decarbonization of the blast furnace methodof steelmaking.Also,while staying aware of changes in the business environment,MDP will strive to reduce GHG emissions fromBMAs production processes.Furthermore,together with its metallurgical coal business partner BHP

201、,MDP isworking to support research that contributes to reducing emissions throughout the entire metallurgical coal valuechain.In October 2022,MDP entered into a collaboration agreement with ArcelorMittal,Mitsubishi HeavyIndustries,Ltd.and BHP regarding the application of CO2 capture technology in th

202、e field of steel making and willjointly conduct demonstration tests for the application of CO2 capture technology at ArcelorMittals steel works.Ensuring a Stable Supply of High-quality Metallurgical CoalSocialEnvironmentGovernance30With demand for seafood rising in line with global population growth

203、,and an increased interest in sustainablesupply,the importance of fish farming in addition to wild-caught fish is ever-increasing.MC is working to developa sustainable production,processing and sales business model,as well as increasing products that haveinternational fishing/farming certifications

204、such as MSC/ASC.Cermaq InitiativesCermaq is one of the major salmon(including coho)farming,processing and sales companies in the world whichbecame a subsidiary of MC in 2014.Cermaq produces salmon in Norway,Chile and Canada for a total productionquantity of around 200 thousand metric tons per year a

205、nd supplies sustainable,safe and secure farmed salmon toconsumers around the world.Cermaq has also identified biodiversity conservation as a key part of its license to operate in all of the countrieswhere it is present.Cermaq works actively in cooperation with local stakeholders to protect wild salm

206、onids in allareas where they are present to conserve the ecosystem,removes litter from the ocean,and tracks bird andmarine mammal mortalities at its sites in compliance with all laws and regulations of the countries in which itoperates.In its feed supplier Code of Conduct,Cermaq mandates that no fis

207、h meal or fish oil used in the feed forits fish shall originate from vulnerable,endangered or critically endangered species.Sustainable Food SupplySocialEnvironmentGovernance31Create businesses that help to address societal needs while working to spur major industry reforms that aresupported by busi

208、ness innovation.We recognize that innovation has great potential to enable us to solve societal and industrial issues and toconsiderably enrich peoples daily lives.MC will achieve sustainable growth by dynamically transforming ourcurrent businesses,whilst approaching business opportunities that are

209、generated by innovation.Utilizing Innovation to Address Societal NeedsRelated SDGs ThemesAction Plan Regarding this Material IssueSocialEnvironmentGovernance32MC has many physically based businesses that require DX-driven solutions.By providing DX functions to thesebusinesses,we will optimize logist

210、ics and improve productivity,increase business value,and contribute to thedevelopment 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 themas services,MC will help to im

211、prove the value of industries themselves.Toward this end,we aim to improve theproductivity of industry and society as a whole and create sustainable value by building a“cross-industry digitalecosystem”in which industries,companies,local communities and others can organically connect and coexist.Acti

212、vity at MC DigitalMC develops business in a wide range of industries,but there are areas where further value can be added byutilizing cutting-edge IT.MC Digitals mission is to update business models by leveraging technology,and thecompany will utilize the latest technology,such as AI,to generate inn

213、ovative solutions to issues in all theindustries that MC conducts business in.MC Digital will also collaborate with overseas innovation ecosystems,aswell as academic and administrative institutions,while striving to develop new businesses and provide solutionsfor various fields.Building a Cross-indu

214、stry Digital EcosystemSocialEnvironmentGovernance33Food waste in Japan has been calculated to be 5,700,000 tons(2019),and the scale of this food waste isequivalent to 1.4 times the amount of the WFPs(World Food Programme)world food aid(2020).Additionally,around 54%of Japans total food waste is compr

215、ised of commercial food waste that is disposed of during thedistribution and production process.This is recognized as a key issue to be solved for the food distributionindustry.MC is proceeding with initiatives to reduce food waste using digital technology,including AI.Reduction of Food WasteSocialE

216、nvironmentGovernance34DX Business in Food DistributionSpecifically,MC has begun developing solutions to enable the prediction of demand and automation of ordering atfood wholesalers.Through the utilization of AI to calculate appropriate order quantities,in order to not causeshortages,while reducing

217、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 tothe reduction of food waste at food wholesalers.In the demonstration experiment,compared to current manualorder

218、ing 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 wholesaleindustry,MC will con

219、tribute to the reduction of food loss in the food wholesale industry.MC will also aim fordistribution optimization and reduction of food waste across the entire foodstuff distribution value chain byproviding solutions for food manufacturers and food retailers.SocialEnvironmentGovernance35Supply chai

220、ns connecting producers and consumers are made possible through effective combinations of storageand transportation-based logistics capabilities.Japans domestic warehousing market is central to those supplychains and worth approximately seven trillion yen.Various negative pressures including labor s

221、hortages,dependencies on specific individuals for certain jobs and lease agreements have resulted in inflexible inventorycapacities,which has in turn contributed to wasteful,inconsistent and burdensome fulfillment practicesthroughout numerous industries.Other countries,such as the US and China,are f

222、acing similar challenges,whichhas prompted innovators to develop new business models such as self-driving warehouse robots and schemesthat allow users to share vacant warehouse spaces.Gaussys Warehouse DX ServicesConsidering that the“Roboware”subscription service allows anyone,regardless of their ba

223、ckground or skills,touse robots to easily manage their warehouse facilities,it presents a viable solution to the labor-shortage andoverreliance problems mentioned above.“WareX”is a similarly straightforward system that anyone can use toshare available warehouse space,thus addressing the problems of

224、limited or excess capacities.Gaussy will offer customers both of these services,the former(Roboware)of which employs six types ofwarehouse robots and has already been rolled out in more than 20 facilities across Japan,and the latter(WareX)of which has more than 1,250 facilities registered on its nat

225、ionwide system.Large,medium and small enterprisesalike have been taking advantage of“WareX,”as it provides them with an efficient way to lease vacant warehousespaces on a pay-as-you-go basis.Driven by its vision to create new opportunities in logistics,Gaussy is committed to developing flexiblemecha

226、nisms that will adapt to evolving warehousing needs and cargo volumes.All of its partners look forward tooffering fulfillment customers with new and unprecedented options for their businesses.Solution to Wasteful,Inconsistent and Burdensome Practices by Optimizingthe Entire Supply Chain through Digi

227、tal TechnologySocialEnvironmentGovernance36Decarbonization is an urgent issue that requires fast-paced initiatives on a global scale.To this end,MC believes itis important not only to develop completely new decarbonization technologies,but also to innovate at the scale-up stage,moving technologies t

228、hat 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 businessessuch as next-generation energy.In order to complement and further accelerate these initiatives,MC will work toscale-up

229、innovative decarbonization technologies through public-private partnerships.Participation in BECMC invested in Breakthrough Energy Catalyst(BEC),a program dedicated to accelerating innovative climatetechnologies,as the first company headquartered in Asia to make a commitment to the fund.BEC creates

230、a framework in which Breakthrough Energy and its public and private sector partners includinggovernments,corporations,and philanthropic organizations will work together to commercialize high-impactdecarbonization technologies and scale them up through measures such as equity investment,grant funding

231、 andofftake agreements.The current focus areas are(1)Clean Hydrogen(and related infrastructure),(2)Long-duration Energy Storage(LDES),(3)Sustainable Aviation Fuel(SAF),and(4)Direct Air Capture(DAC).In the future,the Catalystprogram and its partners may expand its focus to include other hard-to-abate

232、 sectors.MC also considers thesetechnologies vital to its own EX Strategy and Roadmap to a Carbon Neutral Society.By participating in this program,MC is demonstrating a commitment to growing climate technologies and tofurther reducing our carbon footprint.Contributing to the Realization of a Carbon-

233、Neutral Society throughTechnological InnovationSocialEnvironmentGovernance37 We believe that MC can create significant value by leveraging our companys unique collective capabilities andconnections with various industries,and by interconnecting with diverse stakeholders and local communities.Wewill

234、pursue sustainable growth together with local communities by resolving issues that communities are facingand also by approaching peripheral business opportunities.Addressing Regional Issues and Growing Together withLocal CommunitiesRelated SDGs ThemesAction Plan Regarding this Material IssueSocialEn

235、vironmentGovernance38In May 2022,MC announced its new management plan,entitled“Midterm Corporate Strategy 2024 Creating MCShared Value.”The plan details MCs growth strategy to promote regional revitalization through utilizingintegrated EX and DX initiatives.MC has embarked on initiatives to promote

236、specific measures for regionalrevitalization throughout the company,including the creation of new carbon-neutral industries,supporting smoothtransitions to decarbonized societies and developing vibrant communities.Creating self-sustained decentralized communitiesSocialEnvironmentGovernance39Establis

237、hment of New Branches in Akita and ChoshiIn November 2022,MC opened new domestic branches in Japan for the first time in 35 years in both Akita andChoshi.MC was appointed as one of the operators of Japans first,general-sea-area fixed-foundation wind farmswhich are being developed off the coasts.With

238、 the themes of utilizing local energy resources such as renewableenergy,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 byaddressing challe

239、nges facing society and industry through collaboration with various stakeholders includingpartners and local government authorities,while taking advantage of our unique,wide-ranging industrialnetwork.The Akita and Choshi regions are a precedent for this,and MC will continue to work closely with oure

240、lectric power subsidiaries and offshore wind project companies that will develop the offshore wind powerbusiness for more than 30 years to come,with the aim of developing not only offshore wind power,but also ofrealizing MCs goal of promoting regional revitalization through the integrated EX and DX

241、initiatives.Akita BranchChoshi BranchSocialEnvironmentGovernance40Regional Development Agreement with Local GovernmentsIn 2022,MC signed partnership agreements with the three cities of Yatsushiro in Kumamoto Prefecture,Kurashikiin Okayama Prefecture and Nasushiobara in Tochigi Prefecture to resolve

242、regional issues and promote initiativesfor regional development and revitalization.Specific cooperation items cover a wide range of areas,including therevitalization of local and regional communities using digital technology and improvement of civic services such asenergy,mobility,and health.In addi

243、tion,as a first step in the partnership agreement,Yatsushiro City and Nasushiobara City have starteddemonstration projects for the following two services.Community portal apps:Communication tools within the community,such as community associations andPTAs,which are currently paper-based,and informat

244、ion distribution tools from the city and regional operators.Tourism app:A tool to promote tours and consumption for tourists using LINE,and to support relatedpopulation growth.SocialEnvironmentGovernance41The explosive expansion of the middle class and rapid urbanization,particularly in emerging eco

245、nomies,hasincreased the need for development and management of social infrastructure projects that take into accountsocial and environmental values.In the midst of such changes in the external environment,MC aims to contribute to the economic growth of thecountries in which it operates,while also he

246、lping to reduce environmental impacts,by promoting thedevelopment and management of large-scale,high-value-added urban development projects to sustainably createhigh-quality living,working,medical,educational,logistics,and transportation environments.Smart City Management in BSD City in JakartaBased

247、 on the concept of creating Indonesias first Transit Oriented Development,MC is developing a smart city ona new development site of over 100 hectares in BSD City,a suburb of Jakarta.The development will integrateurban functions such as housing,commercial facilities,schools,hospitals,parks,and transp

248、ortation hubs.MC isalso considering the introduction of urban services for the entirety of BSD City,such as AI/IoT data platforms,urban portals,mobility,and energy-related contents.By introducing digital technology,MC will also contribute toaddressing social and environmental challenges in Indonesia

249、,such as by taking measures to alleviate trafficcongestion.Development and Management of Smart CitiesSocialEnvironmentGovernance42In regional communities facing depopulation,there is a growing need for on-demand transportation services thatallow for the streamlining of transportation,and more servic

250、es utilizing digital technology.MC will work to addresssocietal challenges through our mobility services business and aim for further expansion by further strengtheningour business foundation,which includes functions we have developed over many years and our ability to buildcommunity-based networks.

251、Trials of“KnowRoute”in Shiojiri CityMC is part of a consortium that is set to commence trial operations of a mobility-as-a-service(MaaS)project inShiojiri City,Nagano Prefecture.The“Shiojiri Project”is being undertaken as part of an initiative launched byJapans Ministry of Economy,Trade and Industry

252、(METI)to promote new,regional MaaS applications.MCspartners in the consortium include Next Mobility Co.,Ltd.and the municipal government of Shiojiri City.NextMobility is a joint venture between MC and Nishi-Nippon Railroad Co.,Ltd.In FY2022,based on the results of demonstration projects,some service

253、 areas were shifted to full-scaleoperation.Other than rail,the only means of public transportation in Shiojiri City is a community bus service,butit has been hampered by a lack of drivers,a limited fleet and other problems.The city is also aging.About 28%of its roughly 67,000 residents are at least

254、65 years old,which has led to an even greater need for publictransportation.The Shiojiri Project aims to address both of these challenges.Solutions for Regional Transportation Challenges through On-demandMobility ServicesSocialEnvironmentGovernance43Respect the human rights of all stakeholders invol

255、ved in promoting our diverse operations worldwide,and pursuesolutions for value chain-related issues,while considering the local conditions in each country.It is impossible to conduct sustainable business or to increase corporate value without respecting the humanrights of the people we involve in o

256、ur business activities.MC will not only respect human rights when promotingits businesses but will also pursue business opportunities which create added value by tackling human rightsissues.Respecting Human Rights in Our Business OperationsRelated SDGs ThemesAction Plan Regarding this Material Issue

257、SocialEnvironmentGovernance44MCs 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 produc

258、ts and services around the world,we believe in theimportance of identifying and analyzing the negative impacts of our business on human rights and theenvironment in order to ensure that such impacts are avoided/mitigated.MC is conducting human rights andenvironmental due diligence with this in mind.

259、Further details of MCs initiatives on human rights are available here.Procurement based on MCs Policy for Sustainable Supply Chain ManagementIn order to monitor suppliers compliance with our Policy for Sustainable Supply Chain Management,we haveidentified products with high environmental and social

260、risk in 2016 and 2020 with advice from consultants andexternal advisors.MC conducts annual surveys of suppliers(via our Sustainable Supply Chain Survey),with afocus on those industries where social risks including human rights and labor conditions,as well as environmentalrisks,are considered higher.

261、当社100%Mitsubishi Corporation Fashion Co.,Ltd.,a fully owned subsidiary of MC,is working to enhancesustainable procurement of apparel products,strengthen communication and dialogue with suppliers through ourSustainable Supply Chain Survey,and promote the development of a sustainable supply chain.Impl

262、ementing Human Rights Due Diligence for Business ActivitiesSocialEnvironmentGovernance45The MC Group has a global workforce of approximately 86,000 professionals,who we recognize as some of ourmost important stakeholders.In order for the MC Group to continue generating corporate value sustainably,it

263、 isnecessary for diverse human resources,regardless of gender,nationality,etc.to be able to fully demonstrate theirrespective capabilities in response to the further diversification and globalization of business.We believe that thefundamental premise for this is the development of a working environm

264、ent based on respect for human rights,starting with ensuring workplace safety.For further details of initiatives and progress,please also visit here.Ensuring the Safety of EmployeesSocialEnvironmentGovernance46Recognizing that our human resources are the great assets of our businesses,foster a diver

265、se and versatile talentpool that drives efforts to generate triple-value growth throughout our organization,and also seek to develop anorganization where diverse human resources share common values and grow together while furthering theirconnections and inspiring one another to excel.We must continu

266、e to be a dynamic,spirited and vibrant organization that responds promptly to global changesand in our management strategies,while seeking to connect our versatile and diverse workforce that works withpride to address societal challenges.This is the reason why maximizing the value of human capital i

267、s necessary inorder to achieve sustainable growth,and in line with this,we are developing various initiatives to maintain andfoster the value of the human capital within the MC Group.Fostering Vibrant Workplaces That Maximize the Potentialof a Diverse WorkforceRelated SDGs ThemesAction Plan Regardin

268、g this Material IssueSocialEnvironmentGovernance47With the aim of implementing an HR strategy that is able to respond promptly to management strategies,MC ispromoting a number of measures to respond to rapid changes in the operating environment,promote the rightpeople to the right positions,and stre

269、ngthen our ability to respond to changes in the environment so that allemployees can demonstrate their capabilities.Strategic HR Assignments/AppointmentsMC will flexibly structure the organization in response to advancements in the Value-Added Cyclical Growth Modeland management strategies such as i

270、ntegrated EX/DX initiatives,as well as dynamically shift and appoint humanresources across organizations.Shifting human resources to focus areas and promoting the placement of the right people to the right positionsCross-organizational transfers increased significantly due to the foundation of the c

271、ompany-wide cross-functionalFood Industry DX Task Force and Power&Retail DX Task Force.MC will promote collaboration broadly acrossorganizations by allocating and appointing talent from various groups across the company,including the newlyestablished Industry DX Group and the EX Task Force newly est

272、ablished on July 1st,2022.In order to further ensure the placement of the right people in the right positions,MC will promote thevisualization of positions of high importance and difficulty on a consolidated basis and the human resources whoare capable for such role or position.Also,MC will implemen

273、t the visualization of human resources for our HRsubsidiaries to promote the matching of human resources with abilities and motivations to proper dutiesregardless of age,gender,or other factors.HR StrategySocialEnvironmentGovernance48Strengthening our Ability to Respond to Changes in the Business En

274、vironmentIt is important to update our capabilities in response to changes in the business environment,and in particular,MC is focusing on reskilling to enhance the ability of our human resources and organizations to respond to suchchanges.Doing so will allow us to take on the challenge of and imple

275、menting integrated EX/DX initiatives andgrowth strategies as set out in Midterm Corporate Strategy 2024.Reskilling to Adapt to ChangeSpecifically,through a wide variety of HR development programs,MC is working to update leadership skills inresponse to changes in the business environment.MC will embr

276、ace HR diversity to make the most of our diverseand versatile talent pool and strengthen growth support skills.MC believes that employees in Team Leaderpositions play a particularly important role in realizing a“dynamic,spirited and vibrant organizations”,and basedon this,we hold the MC Leadership P

277、rogram for newly appointed Team Leaders,where we conduct exercises tosupport team members growth as well as workshops to self-reflect and formulate workplace action plans basedon the results of 360-degree management reviews.In order to develop human resources who can contribute to increasing corpora

278、te value through EX,based on thethree themes of“proactive”,“defensive”,and“integrated initiatives with DX”,MC is establishing training programson EX-related themes within orientation training for newly hired employees,training for newly appointedmanagerial staff,and training for executive leadership

279、 regardless of Business Group or corporate departmentaffiliation.To accelerate DX,MC has defined“DX Talent Types”,each with expected relevant skills.In FY2022,all executivesand employees have begun taking the MC DX Advancement Program,an on-demand training program that allowseach participant to acqu

280、ire IT/digital skills according to their individual level.In addition,we are working todevelop human resources to lead DX projects through other training programs including programming training forthose in charge of DX promotion and new business launches,a workshop called“MC Innovation Lab”forlaunch

281、ing web services,management courses,CDO training courses,and innovation training.SocialEnvironmentGovernance49“Dynamic and spirited:”MC aims to achieve high employee engagement,and towards this end,will makeimprovements in terms of both people and organization so that employees can work with peace o

282、f mind and asense of attachment to the organization and to their work.Fostering a Corporate Culture That Capitalizes on DiversityMC will encourage connections that transcend organizations,age group,and job titles to foster a corporateculture that capitalizes on diversity.In order to promote active c

283、ommunication between top management andemployees,as well as interconnections between employees,we will expand the opportunities for dialogue,as wellas introduce and utilize IT infrastructure that encourages knowledge and information sharing.Promoting InterconnectionsTo enhance opportunities for dial

284、ogue between top management and employees,MC holds town hall meetingswith the President and CEO in an effort to enhance direct communication with employees.These help to deepeneach employees understanding of management strategies,creating an open organizational culture,and help toimprove engagement.

285、Strengthening EngagementSocialEnvironmentGovernance50DE&I InitiativesMC is working to maintain and increase diversity by appointing employees based on their abilities andperformance,ensuring to assign the right person in the right position,regardless of age,gender or nationality orany other irreleva

286、nt 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 promotingcareer support tailored to women such as a mentorship programs for women in managerial positions.MC is alsofoc

287、using on initiatives aimed at 100%utilization of childcare-related systems by men.Establish a company-wideworking group directly under MCs President and promote the development of an environment and organizationswhere all employees can flourish by fully demonstrating their individual strengths.Proce

288、ed to study/implementinitiatives that empower employees to succeed by respecting/accepting their individuality and leveraging ourversatility.SocialEnvironmentGovernance51Occupational Health and Safety InitiativesIn creating safe working environments for employees and contractors(safety,health,labor

289、management,riskmanagement,etc.),MC aims to build and operate management systems that go beyond simply meeting the legalrequirements in the countries where we operate to provide support that is more substantial.Within the MCGroup,there are companies with OSH management systems that have acquired ISO4

290、5000 and OHSAS18001,theinternational standards for occupational health and safety management systems.Furthermore,in order topromote OSH management throughout the entire MC Group,we will are working to develop an organizationalframework,clarify responsibilities and continuously monitor progress in or

291、der to refine,maintain and furtherimprove our activities.In addition,MC aims to steadily reduce the number of workplace accidents and maintain and promote healththrough continuous monitoring of KPIs such as reducing the frequency rate of workplace accidents compared tothe previous year and ensuring

292、a 100%health check-up rate for domestic(Japan-based)employees.Health Checkup Rate for Domestic(Japan-based)Employees(Non-Consolidated Basis)FY2019FY2020FY2021Health checkup rate for domestic(Japan-based)employees100%100%100%Talent Management That Leverages IndividualityMC will strive to improve empl

293、oyee engagement while respecting diverse individual work styles and values andexpanding our efforts to support career autonomy,to ensure that our diverse and versatile talent pool can engagein their work with satisfaction and pride and continue to grow and play an active role while making use of the

294、irabilities to the fullest.Expanding Initiatives to Encourage Career AutonomyBased on individual career aspirations along with skills and qualities that employees want to develop in the future,MC will promote Career Choice System(open recruitment and transfer system to emporwer employees transferfor

295、 the positions they wish to take on,Dual Career System(in-house dual work assignments system whichprovides opportunities for skill acquisition and growth),and Sabbatical Leave System(Educational Leave).SocialEnvironmentGovernance52In order to confirm the effectiveness of various initiatives in terms

296、 of our HR Strategy and”StrengtheningEngagement”,MC is developing a foundation for the collection,analysis and observation of various human capital-related data.Expansion of Effectiveness Evaluations and DisclosureMC will collect,analyze,and survey human capital-related data,and demonstrate our comm

297、itment to internal andexternal stakeholders through disclosure,while at the same time promoting various HR policies with greatereffectiveness.Disclosure of HR DataMC discloses data including regarding diversity and human resource development.Initiatives and data regardingdiversity management are ava

298、ilable 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.Data UtilizationSocialEnvironmentGovernance53While swiftly responding to changes in t

299、he business environment,strive to realize effective governance on aglobal,consolidated basis and maintain/strengthen a sound organization that is transparent and flexible.In this era of rapid transformation,it is essential to have the mobility to promptly adapt to the changes in theworld while havin

300、g a broad perspective in order to realize sustainable growth.In addition,we recognizestrengthening corporate governance on an ongoing basis as an important management issue,as it is thefoundation for ensuring sound,transparent and efficient management,all of which are integral for sustainablegrowth.

301、From this perspective,our chief initiatives are as follows.Realizing a Highly Transparent and Flexible OrganizationRelated SDGs ThemesAction Plan Regarding this Material IssueSocialEnvironmentGovernance54As MC engages in a global network of business operations across all regions and industries,MC ha

302、s accumulatedintangible assets in the form of intelligence and industry expertise.Through the efficient and effective division offunctions among our Head Office,global offices and subsidiaries,as well as group companies,we are constantlycollaborating to enhance our ability to respond to change and g

303、enerate the next source of significant growth.Establishment of the Global Intelligence(GI)CommitteThrough our global network developed over many years,MC possesses multifaceted intelligence and know-how inmacroeconomics,industry and geopolitics.In order to connect this diverse intelligence and furth

304、er strengthen ourability to respond to changes in the external environment,MC has newly established the Global Intelligence(GI)Committee.By incorporating the analysis of the GI Committee into the MC Shared Value(MCSV)Forum,whichdiscusses and formulates cross-industry companywide strategies,we will s

305、trengthen the driving force of ourBusiness Groups and collaboration across all industries.Incorporating Global Intelligence into ManagementSocialEnvironmentGovernance55MC has always been flexible in adapting its businesses and systems to match the changing times.The need forsuch flexibility is great

306、er than ever in these turbulent times,requiring companies to be even more agile.We willcontinue to flexibly reshape our organizational structure and human resources in order to respond rapidly tochanges in the business environment and management strategies,and to create shared value.Organizational C

307、hange for the Next GenerationFollowing the announcement of our Roadmap to a Carbon Neutral Society in October 2021,in which MC set forthIntegrated EX/DX Initiatives to Create a New Future,MC established the EX Task Force in FY2021 and theIndustrial DX Group in FY2022 to accelerate these efforts.In J

308、anuary 2023,in order to further promote our EXstrategy,MC announced the establishment of a new Next-Generation Energy Business Group effective as of April1,2023.Also in January 2023,a new Chief Stakeholder Engagement Officer(CSEO)was appointed to integrate IR/SRactivities that had previously spanned

309、 multiple departments with the aim of providing thorough explanations offinancial and non-financial initiatives and information to stakeholders.MC will continue to modify its organizational structure in order to adapt appropriately to the ever-changingexternal environment.Flexible Organizational Res

310、tructuringSocialEnvironmentGovernance56The Board of Directors is responsible for making decisions concerning important management issues andoverseeing business execution.In-house Directors utilize their rich experience of working within MC,andIndependent Directors utilize their practical,objective,a

311、nd professional perspectives to ensure appropriatedecision-making and management oversight.Initiatives to Enhance the Effectiveness of the Board of DirectorsIn recent years,MC has reviewed the regulations and operations of the Board of Directors and is continuouslyworking to improve the content of i

312、ts deliberations,so that the Board of Directors can fulfill its role andexpectation to indicate the major direction of business strategies and monitor their implementation.In an effortto enhance the effectiveness of the Board,prior to each Board of Directors meeting,briefing sessions are held forInd

313、ependent Directors and Independent Audit&Supervisory Board Members to carefully explain strategicpositioning and the key points of each project,to help them deepen their understanding of the agenda items.Inaddition to the above,dialogue opportunities and small group meetings for Independent Director

314、s andIndependent Audit&Supervisory Board Members are routinely organized,including with the Business GroupCEOs and division managers,with the Executive Vice Presidents,as well as opportunities for dialogue with juniorand mid-level employees.Through such efforts,MC strengthens the connections between

315、 the IndependentMembers of the Board and employees,ensuring the effectiveness of the Board of Directors.In the Successor Selection Process,careful deliberation regarding the succession plan was carried out by theGovernance,Nomination&Compensation Committee,of which the majority is composed of Indepe

316、ndentDirectors.Furthermore,Independent Members of the Board engaged in thorough dialogue and discussionmultiple times outside of committee meetings.More details about MCs corporate governance are available here.Transparent and Effective Operation of the Board of DirectorsSocialEnvironmentGovernance5

317、7MCs Three Corporate Principles call upon us to strive to enrich society,both materially and spiritually,whilecontributing towards the preservation on the global environment.In recent years,expectations and demands for companies to address various societal challenges have beenincreasing.Guided by ou

318、r Materiality,a set of crucial societal issues that we will prioritize through our businessactivities,we aim to continue to grow together with society by continuously creating MC Shared Value,as setforth in Midterm Corporate Strategy 2024.Furthermore,in order to increase our corporate value in line

319、with the ever-changing demands of society,we haveestablished an effective promotion framework that recognizes the importance of dialogue with our stakeholdersand a cycle of business strategy execution based on this dialogue.Cycle of Dialogue and Business Strategy ExecutionDetermination of policyExec

320、ution led by each Business GroupDisclosureDialogue with stakeholdersMCs Sustainability Promotion FrameworkMCs Sustainability Promotion FrameworkCompanywide Sustainability FrameworkPromoting Sustainability Through BusinessDisclosure(about the Sustainability Website)Dialogue with Stakeholders(Incorpor

321、ating External Perspectives)MCs Sustainability Promotion FrameworkSustainability InitiativesSocialEnvironmentGovernance58In MCs management framework,sustainability initiatives are overseen by the Director/Corporate FunctionalOfficer in charge of Corporate Sustainability and CSR.The Corporate Sustain

322、ability&CSR Department plans anddrafts related policies and measures.Following deliberations by the Sustainability&CSR Committee,whichconvenes approximately twice a year,items are put forward or reported to the Executive Committee and theBoard of Directors.Reference:Sustainability Advisory Committee

323、Main Discussion Themes for the Sustainability&CSR Committee in FY2021Climate changeGHG emissions management and reductions(e.g.,portfolio decarbonization and reinforcement mechanisms inMidterm Corporate Strategy 2024)Management of climate risks/opportunitiesMaterialitySupply chain managementStakehol

324、der engagementCorporate philanthropy activitiesCompanywide Sustainability FrameworkSocialEnvironmentGovernance59To continuously create societal value and environmental value through our business activities,we haveestablished a framework through which not only Corporate Departments,but also Business

325、Groups proactivelypromote sustainability.Following deliberations by the Sustainability&CSR Committee,the President and each Group CEO will holdfurther Business Strategy Meetings to discuss future strategy.In these meetings,policies for businesses that are deemed to be most affected by climate change

326、 are checkedagainst the results of a 1.5 scenario analysis.To further promote Business Group initiatives,management personnel responsible for promoting businessstrategy in each Business Group have been appointed as Chief Sustainability Officers.To promote collaboration,MC holds meetings for Group Su

327、stainability Managers as needed to shareinformation and explain measures related to sustainability.Promoting Sustainability Through BusinessCycle for Integrating Sustainability into Business StrategySustainability Promotion Framework in Each Business GroupSocialEnvironmentGovernance60Framework for p

328、utting forward proposal applicationsMC confirms the significance of each business against our Materiality when screening investment and loanproposals.Environmental and societal risks and opportunities(including scenario analysis and carbon pricingimpact analysis)are mandatory checks.System for Scree

329、ning ProposalsWithin the Corporate Sustainability&CSR Department,dedicated staff are appointed for each Business Groupand are tasked with providing support and checks on both environmental and societal risks and opportunitiesfor individual proposals based on the latest external trends,stakeholder de

330、mands,and internationalstandards.In addition,by having the General Manager of the Corporate Sustainability&CSR Departmentserve as a member of the Investment Committee,MC has put in place a screening system to facilitate decisionmaking that takes into account specialized insight on environmental and

331、social impacts.Incorporating Sustainability into Individual ProjectsSocialEnvironmentGovernance61We believe that the cycle of disclosing our sustainability initiatives in a timely and appropriate manner based onthe requests of our stakeholders,gaining their understanding,and reflecting their feedbac

332、k on our initiatives iscrucial.We will continue to proactively disclose sustainability-related information based on the recognition thatthis cycle contributes to enhancing our corporate value over the medium to long term.Disclosures are made through the Sustainability Website after approval by the C

333、orporate Functional Officer incharge of Corporate Sustainability&CSR and after reporting to the Disclosure Committee,a subcommittee of theExecutive Committee.The website was established with the aim of centralizing ESG-related information disclosed separately throughsuch channels as the Integrated Report and the ESG Data Book,and of responding in a timely manner to theincreasingly complex requirem