Securing and procuring a stable supply of resources is one of the most important functions of a trading company. However, the earth’s resources are limited, and we must therefore develop, supply, and use resources in a sustainable manner. Furthermore, in recent years there is a growing focus on the shift towards a circular economy in which reusing, reducing, and recycling limited resources enables the effective use of resources. Sojitz’s efforts to realize a circular economy are crucial, not only from the perspective of combating the global issue of climate change and contributing to the reduction of CO2 emissions from product manufacturing and waste incineration, but also because these initiatives for resource recycling create business opportunities for Sojitz.

To accomplish this aim, Sojitz has set “Resources” as one of its Key Sustainability Issues (Materiality) and pursues the development, supply, and use of sustainable resources (energy, mineral, food, water, forest, marine and other resources).We also strive to conserve resources, propose suitable energy mixes, and provide a stable supply of resources.

Furthermore, Sojitz Group’s Environmental Policy states that Sojitz will engage in curbing the use of natural resources such as energy and water, and the reducing and recycling of waste; and that it will promote initiatives for the stable supply of resources and realization of a suitable energy mix.

In the course of discussing Sojitz’s roadmap to a decarbonized society, we have identified technological and world trends for each decade and then determined our response and approach for each. In these discussions, we have positioned our contributions to the construction of a circular economy as an opportunity for Sojitz.

In April 2021, we changed the name of our Metals & Mineral Resources Division to the Metals, Mineral Resources & Recycling Division. Through this division, we will promote reforms of existing resource-related businesses and strengthen our recycling business initiatives.

Roadmap for Decarbonization

ご参照Sojitz Group Environmental Policy

ご参照Key Sustainability Issues (Materiality)

Targets for Sojitz’s Business Activities

In Sojitz’s Medium-term Management Plan 2023 which was announced in April 2021, Sojitz chose circular economy as one of three focus areas and committed to the following aim:

●We will pursue recycling and recycling-related businesses arising from shifting mass-consumption needs as well as pursue bio-materials businesses.

Focus Areas in MTP2023

Targets for Office Activities

Sojitz Corporation (Tokyo HQ, Osaka office) set a target to “continuously maintain a recycling rate of 90% for the recycling rate of office waste from FY2020 onward. We already achieved a rate of 95% in FY2016. Moving forward, we are committed to retaining and raising this level.

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 (including for the sustainable use of resources), 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(Current as of January 1, 2023)

Asterisk (*) indicates a Representative Director

Committee Chair	CEO*
Members	Executive Vice President* CFO Executive Management of General Accounting, Business Accounting, Finance, IR, Financial Solutions Executive Vice President*, Advisor to the President Executive Management of Business Group (Automotive, Aerospace & Transportation Project, Infrastructure & Healthcare), and East Asia region Executive Vice President, CISO Executive Management of Legal, Internal Control Administration, ERP Transition Senior Managing Executive Officer, Executive Management of Business Group (Metals, Mineral Resources & Recycling, Chemicals, Consumer Industry & Agriculture Business, Retail & Consumer Service) Managing Executive Officer, COO, Human Resources Department Executive Officer, CCO COO, Legal Department, Internal Control Administration Department Executive Officer, COO, PR Department, Risk Management Department Executive Officer, COO, IR Office Executive Officer, COO, Corporate Planning Department, Corporate Sustainability Office, Portfolio Transformation Office
Observers	Corporate Auditor General Manager, Corporate Planning Dept.
Secretariat	Corporate Sustainability Office

Systems to Promote and Implement Sustainability

ご参照Systems for Enacting Corporate Sustainability

In addition, we monitor resource sustainability within the framework of our environmental management systems. Based on the risks and opportunities we have identified for each Key Sustainability Issue (Materiality), our divisions and departments set targets for the creation of businesses that contribute to the recycling and efficient use of resources.

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.

New Investment Projects

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.

Sojitz has set “resources” as one of its Key Sustainability Issues (materiality), and 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.

Examples of Sojitz’s Main Activities from FY2018

Circular Business (Recycling)	・Low-carbon material recycling model study business (Japan) ・Investment in a circular renewable resource platform start-up (Japan) ・Chemical recycling business partnership (Japan) ・Investment in a non-petroleum based chemical development venture (Japan)

Participation in IT Asset Reuse and Recycling Businesses

In January 2021, Sojitz acquired a stake in TES-AMM JAPAN K.K., the Japanese branch of TES Group, one of the largest global IT asset disposition service providers. Through this investment, we look to promote the normalization of reuse and recycling of IT equipment in order to contribute to the realization of circular economies. In addition, TES Group is moving forward with the development of a lithium-ion battery recycling business that utilizes Sojitz’s network.

Acceleration of Chemical Recycling Initiatives

The Chemicals Division has been accelerating initiatives in the plastic recycling market, which is expected to continue growing over the next 10 years or more, as part of its efforts to address environmental issues. Areas of focus in this regard include the capacity for processing mixed plastics comprising multiple types of plastic, the ability to use the naphtha created by refining said plastics in existing petrochemical facilities, and the potential for the production of recycled plastic with a level of quality on par with conventional plastic. With these areas of focus, we have been moving ahead with the development of waste plastic chemical recycling processes that utilize thermal decomposition oil production technologies.

Trial of a Circular Renewable Resource Platform

Sojitz has formed an alliance with Recotech Co., Ltd., Nissho Electronics Corporation, and NTT Communications Corporation to begin a trial of a circular renewable resource platform that realizes a circular economy through visualizing the type and volume of recyclable resources such as plastics—which have previously been disposed of—and creating a place where the resources can be traded between users and suppliers.

This project has been published as a noteworthy case in J4CE (Japan Partnership for Circular Economy)’s “Initiatives on the Circular Economy by Japanese Companies.”

News Releases

ご参照Sojitz Invests in Green Earth Institute to Begin Development and Commercialization of Non-Petroleum Based Green Chemicals Using Biomass

ご参照Sojitz Concludes Contract with Kawasaki City, Kanagawa Prefecture for Low-Carbon Material Recycling Model Study

ご参照Sojitz Invests in Japanese Branch of TES Group, one of the Largest Global IT Asset Disposition Providers

ご参照Sojitz Invests in Recotech, the Developer of a Circular Renewables Platform which Enables a Circular Economy

ご参照Trial Begins for Circular Renewables Platform Providing an Effective System to Match Supply and Demand for Plastics and other Recyclable Resources to Promote a Circular Economy

United Nations Food Systems Summit (FSS)*1(*1)

Sojitz supports the United Nations Food Systems Summit (FSS), which will launch concrete actions to transform food systems*2 to be more sustainable as part of the UN’s efforts to achieve all Sustainable Development Goals (SDGs).

“Sojitz will contribute to the realization of greater sustainability in food systems through its initiatives to provide a stable supply of food resources.”

Goals and Commitments

ご参照Sojitz Tuna Farm Takashima

Waste Discharge Data

A)　Sojitz Corporation’s Waste Discharge and Recycling Rates

1) Data and Results　(FY2016－FY2020)

2) Scope of Data

B)　Sojitz Group’s Waste Discharge

1) Data and Results

2) Scope of Data

Water Consumption Data

Water withdrawal by source(㎥)

Amount of wastewater discharged according to discharge site(㎥)

Recycle Rate for Water Used

FY2016	FY2017	FY2018	FY2019	FY2020
14%	13%	16%	9%	8%

(Amount of water recycled divided by total usage)

Paper Consumption

A)　Sojitz Corporation’s Paper Usage

1) Data and Results　(FY2016－FY2020)

2) Scope of Data