Two Types of Values
The Sojitz Group, by conducting business activities based on its Corporate Statement, creates two types of value.
One is value for Sojitz. This includes the earnings generated by our businesses and the partnerships we build with other companies. The other is the value our businesses create for our various stakeholders: shareholders and investors, business partners, local communities, consumers, governments, non-governmental organizations, future generations, and Sojitz Group employees. One example of this social value is supply of energy with a low environmental impact.
Clearly delineating value for Sojitz and value for society allows us to distinguish between the corporate perspective of pursuing greater business competitiveness and the perspective of society, which places expectations such as local economic development and environmental responsibility on corporations. We believe that pursuing value shared between these two spheres will create future value and prosperity.
Creating Value through the Sojitz Group’s Business
Functions and Particular Strengths
Underpinning the creation of new value are the Sojitz Group’s business functions and particular strengths.
Through its trading operations, business investments and resource interests, the Sojitz Group builds global value chains and conducts community-based business activities with local partners in a wide range of business sectors. Our business activities include specialized functions in our Machinery, Energy & Metal, Chemicals and Consumer Lifestyle Business Divisions, as well as general functions such as finance, logistics, information, marketing, planning and risk management.
The Sojitz Group’s core strengths include (1) partnerships with a variety of stakeholders, including companies, governments and communities around the world, (2) responsiveness to change, enabled by a diverse portfolio of businesses in every stage of the value chain that allows us to anticipate and adapt to changes in the business environment, and (3) the multiple business functions of a general trading company combined with the specialized expertise of operating companies through group management.
These strengths come from our people, who leverage Sojitz’s functions to create value together with our various stakeholders around the world.
Creating Two Types of Value (Case Studies)
Sojitz creates two types of value by exercising its capabilities to meet needs. In this section, we use representative businesses to illustrate how the value created by Sojitz is returned to society, and the value that Sojitz gains for itself.
■IPP Business in the Middle East
The IPP business is a stable source of earnings for Sojitz. Backed by strengths such as our network of strong partners and plant construction expertise, we have built a track record in Saudi Arabia, Oman and elsewhere. The IPP business is helping diversify energy sources and increase the efficiency of energy use in consideration of the future decline in oil and gas resources in the Middle East.
With demand for energy growing globally, particularly in emerging countries, diversifying and expanding the range of energy sources to support industry and lifestyles in countries worldwide is an increasingly important social issue. Associate company LNG Japan Corporation primarily handles Sojitz’s LNG business, which is integrated from production to supply. By handling LNG, which is more environmentally friendly than other fossil fuels, we contribute to optimal energy procurement and industrial vitality around the world.
■Marine Chemicals Business
Demand for caustic soda and chlorine is increasing in Asia due to economic growth. In India, demand for potash as a raw material for fertilizer is increasing to meet the rising demand for food. Sojitz’s marine chemicals business uses the natural brine deposits of a marshy region of India as a raw material to produce industrial salt, which is a raw material for caustic soda and chlorine, along with the byproducts of bromine and sulphate of potash, which is used in fertilizer. In this way, the business contributes to the development and expansion of various industries and agriculture.
■Compound Chemical Fertilizer Business
Global population growth has made the establishment of stable food resource supply networks a critical issue, primarily in emerging countries. Sojitz uses its compound chemical fertilizer production capacity and marketing network, among the largest in Southeast Asia, to supply fertilizer formulated according to agricultural producer needs, with the aim of increasing crop yields and quality.