Environmental Management
1. Policy and Basic Approach
Sojitz recognizes that sustainability is one of our top management priorities, and we are actively undertaking initiatives aimed at conserving the environment in all aspects of our business activities.
To this end, we have introduced an environmental management system (EMS) based on ISO 14001 and headed by Sojitz’s president. The aims of Sojitz’s EMS are as follows:
- Ensure implementation of our environmental policies
- Elevate employee awareness
- Actively implement risk management, such as through compliance with laws and regulations
- Carry out smooth communication with stakeholders
In our EMS, management first sets a company-wide policy, and each department sets targets in line with the policy and its associated risks and opportunities after examining the external trends, internal issues, and risks and opportunities for the company that contributed to the determination of the policy. Management then monitors these targets, and each department implements a PDCA cycle for continuous improvement after undergoing internal environmental audits and audits by external organizations.
1-1. Risks and Opportunities for the Materiality(Key Sustainability Issues) Set by Sojitz
| Materiality(Key Sustainability Issues) | Sustainability Challenge | Departmental Goal Type | SDGs | Risks and Opportunities for Sojitz | |
|---|---|---|---|---|---|
| Risks | Opportunities | ||||
| Human Rights | Human Rights | Initiatives to protect human rights |  |
Incidents of human rights violations in our company and in our supply chains impact our reputation and business transactions | Strengthening the sustainability of the business region through consideration for human rights, including in supply chains |
| Environment | Decarbonization | Company-wide decarbonization measures |  |
Introduction and strengthening of environmental regulations, carbon taxes, and emissions trading | Strengthening resilience to environmental regulations by reducing CO2 emissions |
| Businesses contributing to decarbonization |  |
"Shrinking market (for carbon-dependent products and services) E.g., Coal-fired power generation market, etc." |
"Market expansion (of low-carbon and decarbonized products and services) E.g., Renewable energy market" |
||
| Rethinking businesses to promote decarbonization | |
Stranded assets (carbon-dependent factories) | Construction and business participation (low-carbon and carbon-free factories) | ||
| Measures to address climate change risks | |
Occurrence of water risks such as floods, droughts, etc., frequent wildfires, changes in crop growing regions | Strengthening business resilience through risk response | ||
| ---- | Environmental measures other than decarbonization (climate change) |  |
"Environmental pollution in our companies and in our supply chains affects our reputation and business dealings Violations of environmental laws and regulations" |
Strengthening the sustainability of the business region through prevention of pollution, including in supply chains | |
| Resources | --- | Creation of business opportunities that contribute to resource recycling and efficient resource usage | |
Shrinking market for disposable products and services | Expanding market for recyclable products and services |
| In-house initiatives for resource recycling, compliance with laws and regulations | |
Increasing disposal costs Deviation from rules related to resource recycling" |
Increased business resilience resulting from the promotion of '3Rs+Renewables' and resource recycling | ||
| Securing food resources |  |
Insufficiency of food resources due to future population and economic growth around the world | Expanding demand for food and of food markets | ||
| Securing water resources |  |
Impact of water shortages on operations at project sites | Increased demand for securing water resources | ||
| Securing fishery resources |  |
Fishery resource depletion due to overfishing, reputational risks, and business continuity concerns | Increased demand for recycling-based fisheries and aquaculture | ||
| Securing forest resources |  |
Reputational risk due to depletion and denunciation of forest resources | "Certified wood Recycling-oriented businesses" |
||
| Local Communities | --- | Contribution to social themes in emerging countries |  |
Decreased business opportunities due to developmental constraints in emerging countries | "Infrastructure-related business opportunities Business opportunities to introduce advanced technology and culture" |
| --- | Contribution to social themes in developed countries |  |
"Low birthrate, aging population, depopulation of rural areas, decline of primary industries Damage to the business environment and reduced business opportunities due to the inability to resolve issues in developed countries" |
Global expansion of business opportunities through solving issues in developed countries | |
| --- | Responding to disasters occurring on a global scale | --- | Supply chain disruptions, rising resource prices, changes in regulations and policies in countries around the world | Medical-related business opportunities | |
| Governance | --- | Contribution to the transparency of company disclosures | --- | Damage to reputation caused by negative external evaluations of the company | Increased efficiency in securing funding as a result of improved external evaluations |
1-2. Reflection of Environmental Targets in Performance Evaluations
Sojitz evaluates its efforts in these areas from both qualitative and quantitative perspectives, and reflects them in the performance evaluation of each business division.
1-3. Various Policies in Sojitz’s Environmental Management Systems (EMS)
The various policies that we emphasize in our EMS are as follows.
1-3-1. Key Sustainability Issues (Environment, Resources, Local Communities, Human Rights)
In our environmental management systems (EMS), we set targets related not only to the environment, but also for our Key Sustainability Issues such as resources, local communities, and human rights. Sojitz also monitors and provides direction for achieving these targets.
| Themes | Contents |
|---|---|
|
Environment |
Sojitz strives to preserve the environment and create businesses that are both highly competitive and environmentally friendly by pursuing environmental sustainability in its businesses. We work to minimize our environmental burden with initiatives that include preventing climate change, reducing CO2 emissions and preserving biodiversity. |
|
Resources |
Sojitz pursues the development, supply, and use of sustainable resources. We strive to conserve resources, propose suitable energy mixes and provide a stable supply of resources. * Includes energy, mineral, food, water, forest, marine and other resources |
|
Communities |
Sojitz promotes businesses that grow together with local communities. We work to reduce environmental and social burden on local communities through our businesses. Through ongoing communication with local communities, we strive to achieve business sustainability, address local problems and support children’s education. |
Human Rights |
Sojitz respects the human rights of people involved in its businesses. This applies not only to Sojitz employees, but also to everyone affected by its businesses throughout its supply chains. Should there be any instances of child labor or forced labor, we will rectify them. |
1-3-2. 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.
- Comply with environmental laws and regulations
In the course of our business operations, we will comply with laws and regulations concerning the environment, international treaties, and agreements to which we subscribe. - Minimize environmental burden
We will work to minimize the environmental impact of our businesses through initiatives that protect biodiversity, conserve water resources, and contribute to a decarbonized society through the reduction of greenhouse gas emissions and other efforts to address climate change. - Conserve resources and reduce/recycle waste
We will engage in curbing the use of natural resources such as energy and water, and the reducing and recycling of waste. - Consider the environment in new businesses
When starting new businesses and expanding or further developing existing businesses, we will work to reduce the burden on the environment and prevent pollution. - Pursue sustainable resources
We will promote initiatives for the stable supply of resources and realization of a suitable energy mix. - Disclose information and engage with stakeholders
In order to ensure the transparency of our operations, we will publicly disclose information regarding our environmental policies and initiatives while also engaging in proactive communication with our diverse range of stakeholders. - Continuously improve our environmental management system
Under our environmental management system, we will establish and periodically review environmental objectives and aim for constant improvement, in order to enhance our environmental performance. - Educate and promote awareness on the environment
In addition to ensuring that all of our officers and employees are notified of this policy, we will implement educational activities to ensure widespread awareness.
2. Goals and Targets
2-1. Sojitz Group CO2 Reduction Targets
2-1-1. Scope 1 and Scope 2 Targets
| Scope1+2 | Reduce emissions 60% by 2030; achieve net-zero emissions by 2050 *1 For Scope2: Net-zero emissions by 2030 *2 |
|---|---|
| Coal-fired power generation | No current projects nor future projects planned |
*1 *2 Reductions from base year of FY2019, scope includes Sojitz Corporation (non-consolidated), consolidated subsidiaries, and unincorporated joint ventures subject to reporting based on Sojitz approach toward control of management
2-1-2. Scope 3 Targets
| Thermal coal interests | Reduce interests to half or less by 2025 zero interests by 2030 *3 |
|---|---|
| Oil interests | Zero interests by 2030 |
| Coking coal interests | Zero interests by 2050 |
*3 FY2018 serves as the base year, and targets are based on the book value of assets in coal interests. In May 2019, Sojitz announced its original goal of reducing thermal coal interests to half or less by 2030.
2-2. Sojitz Group’s Major Environmental Goals
In addition to the above targets, the environmental targets set by each department based on Sojitz’s policies can be broadly divided into business-related activities and in-office activities. Basically, all business divisions have established goals related to their businesses, while also focusing on in-office activities.
2-2-1. Business-Related Activities
- Renewable Energy Business
We will leverage the knowledge we have gained through the development and operation of solar as well as onshore and offshore wind and biomass power generation projects in Japan and overseas. We aim to further develop businesses in growth markets, and actively supply power to RE100 companies and other customers that require renewable energy, thereby contributing to further business expansion amidst the trend of global decarbonization. - Gas Business
We are developing LNG receiving terminals and natural gas supply businesses in emerging countries and other regions where demand is expected to increase steadily over the long term. In addition to promoting a low-carbon society through the supply of natural gas, we are working to optimize energy use by combining renewable energy and new technologies to achieve decarbonization. -
Circular Economy Business
In light of global decarbonization and resource conservation trends, we will expand our circular economy businesses, including those promoting reuse and recycling. As specific initiatives to date, we have invested in TES-AMM JAPAN K.K., an IT Asset Disposition company; eCycle Solutions Inc., Canada’s largest recycler of household appliances and electronic devices; and PET Refine Technology, Co., Ltd., which promotes chemical recycling of PET (polyethylene terephthalate). In the area of the circular economy, including metal recycling and recycling of plastic and other waste, we will build businesses with a sense of scale and promote efforts to realize a recycling-oriented society.
2-2-2. In-Office Activities
Office recycling target: Maintain a recycling rate of 90% for office waste.
- We previously achieved a recycling rate of 95% for office waste in FY2016. We are committed to retaining and raising this recycling level.
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3. Systems
Sojitz’s president is the chief executive officer heading the company’s environmental initiatives, while the GM of the Investor Relations & Corporate Sustainability Dept. is responsible for the operations of Sojitz’s EMS as the lead environmental management officer of the company. The GM of the Investor Relations & Corporate Sustainability Dept. promotes the EMS by seeking participation from all employees and in cooperation with the relevant staff in each business division and other designated environmental managers.
Through this system, we aim to comply with environmental laws and regulations, prevent environmental risks including those related to climate change, and promote environmentally friendly business practices. In addition, we establish and manage environmental goals by first setting targets related to environmental risk prevention, environmentally friendly businesses, energy and resource conservation, CO2 emission reduction, and other climate change-related risks. We also implement a PDCA cycle to evaluate and analyze our progress and ensure that we achieve the targets we set.
In addition, we have established a Sustainability Committee which is chaired by the president. The Sustainability Committee chair conducts reviews of the environmental management system (EMS) to ensure the ongoing appropriateness, adequacy, and effectiveness of the company’s EMS. The Sustainability Committee reports the results of previous management reviews, external and internal issues, risks and opportunities, achievement status of environmental targets, and the results of internal environmental audits to the chair of the Sustainability Committee. Based on the committee’s report, the chair of the Sustainability Committee announces decisions, provides resolutions, and offers directives in areas such as opportunities for continuous improvement.
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3-1. Sojitz Environmental Management System (EMS) Chart (ISO14001)
3-2. ISO14001 Certification
Sojitz Corporation and the following companies have acquired ISO14001 certification and are subject to Sojitz’s EMS.
| Certification Body | JIC Quality Assurance Ltd. |
|---|---|
| Certification Number | E1436 |
| Scope of Certification*1 | Sojitz Corporation Head Office, Kansai Office Sojitz Kyushu Corporation Head Office Sojitz Pla-Net Corporation Tokyo Head Office, Osaka Branch Sojitz Foods Corporation Head Office, Kansai Branch, Northern Japan Branch Sojitz Fashion Co., Ltd. Head Office, Tokyo Branch Sojitz Machinery Corporation Tokyo Head Office, Osaka Office, Nagoya Office |
| Date of Certification | March 16, 2006*1 |
| Date of Recertification | January 24, 2025 |
| Date of Expiry | January 23, 2028 |
- *1ISO14001 approval was acquired on August 20, 1999. As of March 16, 2006, the company's ISO 14001 registration was transferred to a new registrar, as a result of the business integration of certification bodies
3-3. ISO14001 Certification within Sojitz Group
The Sojitz Group companies that have obtained ISO14001 certification are as follows.
| Companies that have obtained ISO14001 certification (as of June 30th, 2025) | |
|---|---|
|
|
19 companies in total, including both in and outside of Japan
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3-4. Risk Management
As a general trading company, Sojitz conducts business activities on a global scale. In effort to coexist with local communities and the environment, we require the preparation of an "Environmental and Social Risk Checklist" to prevent environmental and social risks at the planning stage of new investment and financing projects, and conduct environmental impact assessments that take into account the entire project life cycle.
3-5. Environmental Audits
In accordance with ISO14001, we conduct internal environmental audits every year in addition to undergoing external audits conducted by JICQA. We confirm whether each division and group company is implementing the EMS effectively, and report the audit results to Sojitz’s CEO, who holds the ultimate responsibility for the environmental initiatives of the company.
3-6. Environmental Communication
When customers or external stakeholders request information about Sojitz's environmental activities, we disclose the information after following the process required by the ISO14001 standard. The information required by the standard includes questionnaires and certified copies of ISO certifications. In FY2024, we responded to 158 questionnaires and submitted 23 certification copies.
4. Initiatives
Environmental Education
In order to implement our EMS, we hold a company-wide briefing session on the ISO14001 standard at the beginning of each fiscal year. In addition, we conduct trainings for internal environmental audit personnel, e-learnings for select employees on environmental laws and regulations concerning topics such as industrial waste disposal, and departmental education activities twice a year for all employees in all our organizations in order to raise awareness and impart specialized knowledge. Sojitz continues to encourage employees to take the Certification Test for Environmental Specialists (Eco Test), a certification test administered by the Tokyo Chamber of Commerce and Industry. In total, 164 Sojitz employees have received the certification.
Environmental Education Trainings in FY2024 (for employees at Tokyo HQ and select Group companies)
| Training | Target employees | Number of participants |
|---|---|---|
| Environmental education (held departmentally twice a year) | All employees | Approx. 3,100 |
| E-learning course on waste management laws | Employees involved in waste management and regulatory reporting | 1,120 |
| Trainings for internal environmental audit personnel | Candidates for internal environmental audit roles | 41 |
4-2. Initiatives by Sector
4-2-1. Environmental Sector Initiatives
Formulating Policies for Decarbonization while Pursuing Low-Carbon Businesses and Participating in Recycling Businesses
Based on a survey of CO2 emissions in our business activities and on the 1.5℃ scenario analysis of our thermal power generation and coal interests, we have formulated a new policy to promote decarbonization taking into account risks and opportunities that climate change poses to our businesses. We have accelerated the development of decarbonization projects such as renewable energy businesses and coal-to-gas fuel conversion projects, as well as low-carbon businesses with an eye towards decarbonization. In addition, we have established a framework for the formation of a recycling-based society by participating in recycling projects in multiple sectors.
4-2-2. Initiatives in the Resources Sector
Promoting Environmentally and Socially Responsible Materials and Contributing to the Realization of a Sustainable Food System
In the lumber sector, we have increased the ratio of environmentally and socially responsible timber in accordance with our Wood Procurement Policy. In the food sector, we are contributing to the realization of a sustainable food system by beginning to handle fish sourced from full-life cycle aquaculture, among other measures.