Sojitz Group Environmental Policy

As a global company, Sojitz Group considers environmental issues a crucial topic to be addressed in management. Striving for a sustainable society, we will work to preserve the environment and prevent pollution in our business activities, while creating businesses that are both highly competitive and environmentally friendly.

Sojitz Group Environmental Policy

 

Relative Policies

Sojitz Group CSR Action Guidelines for Supply Chains

Wood Procurement Policy

Target

Key Sustainability Issues	Sustainability Goal	Business Area	Planned Approach
Resources	Produce and supply resources at risk of depletion in the future	Food resources	We are contributing to securing food resources with a focus on future population growth, principally in the feed production and sales business, which require stable production and quality minantenance, and feed plant construction business.
		Water resources	Focused on developing countries with an expected increase in demand for water resources, we will strive to establish and expand businesses that provide a stable supply of domestic water.
		Marine product resources	Making use of the expertise acquired through the marine products business, we will take on the challenge of "whole cultivation," raising adult fish from artificially bred juvenile fish.
		Forestry resources	Strive for 100% traceability of the wood we handle by FY2020, and in the future, we will aim to ensure that 100% of the wood we handle is produced through suitable, environmentally/socially-conscious forest management.

 

Systems

The Sustainability Committee aims to support sustainable growth at the Sojitz Group by establishing company-wide sustainability-related policies and goals, constructing frameworks for implementation, organizing, and working to monitor and promote progress for each policy.

The Corporate Sustainability Office is a specialized department that serves as the Secretariat of the Sustainability Committee, cooperating with related departments within the Group to promote sustainability-related initiatives at the Sojitz Group.

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.

Deliberation by the Sustainability Committee
Sojitz has established six Key Sustainability Issues (Materiality) (human rights, environment, local communities, resources, human resources, and governance) which all organizations are expected to address, as well as accompanying CSR policies. In establishing these focus areas and policies, we referenced international standards—such as the SDGs to be met by 2030—and identified issues facing our business in the long term, including environmental issues like climate change.
Specifically, the Sustainability Committee deliberates policies related to response to environmental and social risk, climate change countermeasures, promotion of supply chain CSR, ESG disclosure, environmental ISOs, promotion of the Sojitz Wood Procurement Policy, social contribution activities, and other CSR topics.

(As of July 1, 2020)

* Representative Director

Committee Chair	CEO*
Members	Executive Vice President*, CFO Executive Management of General Accounting, Business Accounting, Finance, Structured Finance, IR, M&A Management Office, Controller Office Oversight Executive Vice President*, 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 Senior Managing Executive Officer, Executive Management of Business Group (Chemicals, Foods & Agriculture Business, Retail & Lifestyle Business, Industrial Infrastructure & Urban Development) Oversight Executive Officer, COO, General Accounting Department, Business Accounting Dep artment, Finance Department, IR Office, Controller Office Executive Officer, COO, Legal Department, PR Department Executive Officer, COO, Human Resources Department, General Affairs & IT Operation Department COO, Corporate Planning Department, Corporate Sustainability Office
Observers	Corporate Auditor General Manager, Corporate Planning Dept. General Manager, Public Relations Dept. General Manager, Investor Relations Dept.
Secretariat	Corporate Sustainability Office

Monitoring

We have adopted ISO14001 as the basis for our environmental management. Generally, ISO14001 monitors activities related to the environment. We, however, utilize the monitoring framework and information routes provided by ISO14001 to broadly monitor progress on sustainability goals, including those goals which relate to human rights and local communities. We then report the results of this monitoring to the Sustainability Committee.

Sojitz Environmental Management System(EMS) Chart

Risk Assessment（Wood Procurement）

From among Sojitz Group’s approximately 1,500 wood-related suppliers, we narrowed our scope (*1) to wood from countries with high country risk (*2) or from suppliers from whom Sojitz Group has purchased the most wood in terms of monetary value. This wood was then checked under the supervision of WWF Japan (*3) for 1) whether it could be traced back to its place of origin and 2) suitability of forest management (whether the forest is subject to environmentally/socially-conscious forest management).

 

Initiatives

IoT and AI Verification Tests for Sojitz Tuna Farm Takashima’s Aquaculture Business

Sustainable Water Usage

Efforts within the Supply Chain

Supply Chain CSR

 

Data

＜Wood Procurement Policy : Results of 2018 Survey＞

Our percentage of wood classified as Level B or above reached 66% for 2018, with wood for which only traceability can be confirmed (Level C) totaling 34%. We also reached our target for wood lacking traceability (Level D), having fully eliminated it from our procurement. We will continue to work towards raising the percentage of Level A/B wood we procure and keep Level D wood out of our procurement.

Category	Definition	Results for FY2016		Results for FY2017		Results for FY2018		Target
Level A	Wood confirmed to be certified wood (*4) or which is subject to strict management equivalent to that of certified wood.	42%	59%	46%	65%	49%	66%	← Aim to achieve 100% Level A/B wood in the future.
Level B	Wood which has not been certified, but for which we have verified both traceability and suitability of forest management (i.e. that the forest is subject to environmentally/socially conscious forest management）	17%		19%		17%
Level C	Traceable wood	20%		27%		34%
Level D	Wood lacking traceability	21%		8%		0%		← Eliminate Level D wood by FY2020.
Total		100%		100%		100%