Sojitz Corporation

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Environment

Resource Sustainability

Policy and Basic Approach

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

Roadmap for Decarbonization

ご参照Sojitz Group Environmental Policy

ご参照Key Sustainability Issues (Materiality)

Goals and Targets

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

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.

Systems

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 April 1, 2022)

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, General Affairs & IT Operation 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

    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.

    Initiatives

    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.

    Participation in IT Asset Reuse and Recycling Businesses

    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.”

    Trial of a Circular Renewable Resource Platform

    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).

    1. *1:The UN Food Systems Summit is a summit conceived of by United Nations Secretary-General António Guterres as an essential step to transform food systems to become more sustainable and to achieve the UN’s Sustainable Development Goals (SDGs).
    2. *2:Food systems refer to the series of activities involved in the production, processing, transport, and consumption of food.

    “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

    • Sojitz will lead the way in promoting the spread of MSC-certified sashimi tuna around the world in order to pursue sustainable use of natural fishery resources. MSC certification provides proof that the seafood was caught by a responsible fishery in a sustainable manner.
    • In its tuna farming business, Sojitz is committed to sustainable aquaculture and aims to maintain its certification from the Seedling Council for Sustainable Aquaculture (SCSA).
    • Sojitz aims to utilize IoT and AI to industrialize tuna farming in order to improve the efficiency of its aquaculture business.

    ご参照Sojitz Tuna Farm Takashima

    Performance

    Waste Discharge Data

    A) Sojitz Corporation’s Waste Discharge and Recycling Rates

    1) Data and Results (FY2016-FY2020)

    Waste Discharge

    2) Scope of Data
    • Sojitz Corporation: Head office, Osaka Office

    B) Sojitz Group’s Waste Discharge

    1) Data and Results
    FY2016 FY2017 FY2018 FY2019 FY2020
    Waste Discharge 15,911 tons 15,667 tons 17,902 tons 60,485 tons 75,395 tons
    2) Scope of Data
    • FY2016~FY2020
      Sojitz Corporation (including offices and branches), all Group companies in Japan, Group companies overseas.
    • Note 1: The main reason for the increase in emissions from FY2019 is the acquisition of an overseas paper manufacturing company in FY2018. Furthermore, the data for FY2018 does not include emissions from this company.
    • Note 2:Due to the impact of the COVID-19 pandemic, the data for the period ended March 2020 was initially limited to 14 domestic and overseas consolidated subsidiaries with the highest emissions. However, we have finished calculating the emissions for the remaining companies and have restated our emissions totals.

    Water Consumption Data

    Water withdrawal by source(㎥)

      
      FY2017 FY2018 FY2019 FY2020
    Tap water, industrial water 673,727 659,934 3,020,934 3,351,857
    Groundwater 459,526 530,800 521,059 456,654
    Seawater 0 180,516,900 178,401,225 151,920,000
    River water 69,545 62,920 1,220,977 1,213,895
    Rainwater 2,013 2,630 4,048 3,360
    Freshwater total 1,204,812 1,256,284 4,767,018 5,025,766
    Total (including seawater) 1,204,812 181,773,184 183,168,243 156,945,766

    Scope of Data

    ◆FY2017~FY2020
    Sojitz Corporation (including offices and branches), all Group companies in Japan, Group companies overseas.
    Note 1: *Freshwater usage has increased since FY2019, mainly due to Sojitz’s acquisition of an overseas paper manufacturing company in FY2018. Furthermore, the data for FY2018 does not include emissions from this company.
    Note 2: Due to the impact of the COVID-19 pandemic, the data for the period ended March 2020 was initially limited to 14 domestic and overseas consolidated subsidiaries with the highest emissions. However, we have finished calculating the emissions for the remaining companies and have restated our emissions totals.

    Amount of wastewater discharged according to discharge site(㎥)

      FY2017 FY2018 FY2019 FY2020
    River 676,824 596,454 2,741,447 2,827,894
    Ocean 175,867,270 179,770,418 177,677,695 151,275,080
    Sewer 339,915 20,131,366 245,527 166,796
    Underground seepage 13,522 6,214 6,589 5,898
    Other 107,167 97,353 112,954 68,323
    Freshwater total 1,137,429 20,831,387 3,106,517 3,068,911
    Total (including seawater) 177,004,698 200,601,806 180,784,212 154,343,992

    Scope of Data

    ◆FY2017~FY2020
    Sojitz Corporation (including offices and branches), all Group companies in Japan, Group companies overseas.
    Note 1: Freshwater discharge has increased since FY2019, mainly due to Sojitz’s acquisition of an overseas paper manufacturing company in FY2018. Furthermore, the data for FY2018 does not include emissions from this company.
    Note 2: Due to the impact of the COVID-19 pandemic, the data for the period ended March 2020 was initially limited to 14 domestic and overseas consolidated subsidiaries with the highest emissions. However, we have finished calculating the emissions for the remaining companies and have restated our emissions totals.

    Recycle Rate for Water Used

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

    (Amount of water recycled divided by total usage)

    Scope of Data

    ◆FY2016~FY2020
    Sojitz Corporation (including offices and branches), all Group companies in Japan, Group companies overseas.
    Note 1: The recycling rate has been declining since FY2019, mainly due to Sojitz’s acquisition of an overseas paper manufacturing company in FY2018. The data for FY2018 does not include the overseas paper manufacturing company acquired in that year.
    Note 2: Due to the impact of the COVID-19 pandemic, the data for the period ended March 2020 was initially limited to 14 domestic and overseas consolidated subsidiaries with the highest emissions. However, we have finished calculating the emissions for the remaining companies and have restated our emissions totals.

    Paper Consumption

    A) Sojitz Corporation’s Paper Usage

    1) Data and Results (FY2016-FY2020)

    Paper Consumption

    2) Scope of Data
    • Sojitz Corporation: (Head office, satellite office, Osaka Office)

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