Systems for Enacting Corporate Sustainability
In order to advance sustainability-oriented management and operations, Sojitz has established a Sustainability Committee with the CEO of Sojitz serving as its Committee Chair, as well a dedicated Corporate Sustainability Office.
The Sustainability Committee's activities include establishing company-wide sustainability-related policies and goals, constructing frameworks for their implementation, and monitoring various measures that utilize the ISO 14001 environmental management system standard.
Additionally, the Finance & Investment Deliberation Council is checking individual proposals for their relevance in terms of environmental or social risks and sustainability.
Sustainability Committee Members
(As of July 1, 2020)
* Representative Director
Executive Management of General Accounting, Business
Accounting, Finance, Structured Finance, IR, M&A Management Office, Controller Office Oversight
Advisor to the President Executive
Management of Business Group (Automotive, Aerospace & Transportation Project, Machinery & Medical Infrastructure, Energy & Social Infrastructure, Metals & Mineral Resources) Oversight East Asia
Executive Management of Business Group (Chemicals, Foods & Agriculture Business, Retail & Lifestyle Business, Industrial Infrastructure & Urban Development) Oversight
COO, General Accounting Department, Business Accounting Dep artment, Finance Department, IR Office, Controller Office
COO, Legal Department, PR Department
COO, Human Resources Department, General Affairs & IT Operation Department
Systems to Promote and Implement Sustainability
Deliberation by the Sustainability Committee
In addition to discussing areas of focus and future courses of action for the company in the mid- and long-term, including Key Sustainability Issues (Materiality) and related sustainability goals, the Sustainability Committee also deliberates concrete policies concerning responses to environmental and social risk, climate change countermeasures, promotion of supply chain CSR, promotion of the Sojitz Wood Procurement Policy , ESG disclosure, environmental ISOs, social contribution activities, and other topics.
Managing Environmental & Social Risk
Risk Management by the Sustainability Committee / Reports Submitted to the Board of Directors (Supervisory Body)
Sojitz Group classifies and defines the many risks associated with our businesses according to our Basic Code of Corporate Risk Management, and we establish a risk management policy and management plan for these risks each year, based on a resolution by the Board of Directors.（See this page for details.）Among these risks, countermeasure policy and initiatives regarding environmental and social risk (including risk related to climate change) are deliberated by the Sustainability Committee. These policies and initiatives may then be put into action following a report to the Management Committee and Board of Directors.
Conducting Scenario Analysis
One of the ways we confirm climate change risk is by conducting scenario-based assessments of our coal interests and power generation businesses, as important business areas in our portfolio and ones at high risk of impact from environmental regulations
Imagining and analyzing the impact on our company based on multiple scenarios by 2040 including the 2°C scenario has enabled us to develop a forecast for how we can respond to changing conditions in the future. For all scenarios, we came to the conclusion that any impact on our business would be limited.
In addition to examining a project’s business plan, deliberation on all business investments and loans require projects to be analyzed and evaluated for risks to the environment (climate change-related risks) and risks to society (the risk of impacting local residents, labor safety-related risks, etc.) A project’s value must be confirmed from a sustainability perspective prior to resolution.
Establishing Action Plans for Departments and Offices
The policies and items resolved by the Sustainability Committee and reported to the Management committee and Board of Directors are made known to employees not only through the company intranet, but also through regularly held briefing sessions with each department, organized by the Sustainability Committee secretariat.
Items resolved by the Sustainability Committee are established by each department and office at the beginning of the period. These consist of 1) environmental impact of business activities around the world, and an analysis of related laws and regulations; and 2) goal setting and action plans to mitigate these environmental impacts, including those related to climate change. These items are reviewed by each department and office every six months, and the results of these reviews are evaluated by the Sustainability Committee and reported to the Management Committee at the beginning of the following year.
Sojitz has established the Sojitz Group Compliance Program to outline steps for ensuring thorough compliance, and the Sojitz Group Code of Conduct and Ethics as an action guide for employees. Sojitz also works to promote thorough understanding of compliance by distributing a booklet of case studies and a hotline card to all executives and employees to supplement the Code manual.Moreover, as thorough understanding of compliance requires steadily and consistently reinforcing policies, Sojitz conducts a variety of training programs for Group employees and officers such as e-learning and compliance training.
In addition, to prevent corruption, Sojitz has established the Sojitz Group Anti-Corruption Policy and the Sojitz Group Anti-Corruption Guidelines, and is also implementing corresponding regulations at overseas Group companies and bases.