Climate Change
1. Policy and Basic Approach
Sojitz regards the reduction of its own GHG emissions arising from its business activities (Scope 1 and Scope 2) as a responsibility and will continue to pursue further reductions.
At the same time, Sojitz recognizes high-emission areas within its supply chain (Scope 3) not only as business risks subject to growing decarbonization pressure, but also as business opportunities drive emissions reductions across society. Furthermore, guided by the belief that business creation leveraging Sojitz’s unique network and cross-business collaboration is essential to contributing to a decarbonized society, Sojitz seeks to deliver avoided emissions through its businesses.
To date, Sojitz has enhanced its business foundation by transforming the resolution of social challenges through its business activities into a competitive advantage.
Leveraging this experience, Sojitz will continue to create new value that supports the transition to a decarbonized society, showcasing its distinctive contribution through the integration of initiatives that realize emissions reductions and drive progress beyond conventional frameworks.
2. Goals and Targets
Scope 1・Scope 2 Targets
For businesses in operation as of FY2019, Sojitz aims to reduce energy-related CO2 emissions by 60% by 2030 compared with FY2019 levels, including achieving net-zero for Scope 2.
In addition, for businesses in operation as of FY2024, Sojitz aims to reduce total GHG emissions by 40% by FY2035 compared with FY2024 levels, including achieving net impact zero* for Scope 2. For businesses thereafter, Sojitz aims to achieve net zero by 2050.
* Net impact zero means a concept whereby Sojitz’s own emissions are reduced to zero after deducting carbon removals and offsets, as well as avoided emissions achieved through its businesses.
| Scope1・Scope2 |
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| Coal-fired power generation | Sojitz currently has no coal-fired power generation assets and does not plan to acquire any in the future. |
Scope of reporting: These targets apply to Sojitz Corporation (non-consolidated), all consolidated subsidiaries in Japan and overseas, and unincorporated joint ventures subject to reporting under Sojitz’s management control approach.
*1 Energy-related CO2 emissions, with FY2019 as the base year.
*2 GHG emissions, with FY2024 as the base year.
Scope 3 Targets (Natural Resource Interests)
Scope 3 refers primarily to GHG emissions generated throughout the supply chain. Trading companies are involved in extensive supply chains ranging from upstream to downstream. As of FY2019, if all of Sojitz’s resource interests were combusted, the resulting GHG emissions would amount to approximately 200 million tons, far exceeding the approximately 1 million tons of GHG emissions generated from the Sojitz Group’s own direct energy use (Scope 1・Scope 2).
In recognition of the heightened social responsibility associated with resource interests, we have set out the following policies and targets since 2019.
Targets for Resource Interests Businesses
| Thermal coal interests | Reduce to half or less by 2025; zero by 2030 *3 |
|---|---|
| Oil interests | Zero by 2030 |
| Coking coal interests | Zero by 2030 |
*3 Based on the book value of asset holdings in resource interests, with FY2018 as the base year.
2-1. Progress
As of March 2025, progress toward the 2030 targets shows that Scope 1 and Scope 2 emissions have been reduced by approximately 40%, while thermal coal interests have already been reduced by approximately 90%.
Reduction of Emission in Resource Interests:
2-2. Decarbonization Roadmap
Sojitz has developed a roadmap that outlines technological trends and social developments by decade on the path toward a decarbonized society, and, based on this roadmap, examines and organizes its responses and approach.
The above targets have been formulated taking into account such forward-looking assessments, including the future operating environment and actual business conditions. Accordingly, these targets are based on current future assumptions and will be flexibly reviewed in response to changes in social trends and the pace of technological innovation.
3. Systems
For information on the implementation of our policies and targets, please see:
4. Initiatives
4-1. Endorsement of TCFD
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Sojitz Group is actively working to disclose information and improve transparency by utilizing the TCFD*1 framework regarding risks and opportunities related to climate change.
- In August 2018, Sojitz declared its endorsement of the final recommendations of the TCFD (Task Force on Climate-related Financial Disclosures).
4-2. Minimizing Risk
4-2-1. Reduction Measures for Scope1・Scope2 Emissions
To reduce Scope 1 and Scope 2 emissions, Sojitz is formulating sustainable reduction measures with a view to future technological innovation.
- First, Sojitz will pursue energy conservation and efficiency improvements.
- Next, Sojitz will implement emissions reductions through a transition to renewable energy.
- Over the longer term, Sojitz will consider switching to clean fuels, such as hydrogen, ammonia, and synthetic fuels.
- Furthermore, Sojitz aims to optimize its business portfolio, incorporating decarbonization considerations.
- For residual GHG emissions, Sojitz will consider measures including offsets through certificates as well as removals through forestry initiatives and direct air capture (DAC) projects, while maintaining a policy of minimizing reliance on such measures to the greatest extent possible.
4-2-2. Measuring and Tracking Scope3 Emissions
Scope 3 refers primarily to GHG emissions generated throughout the supply chain. However, as trading companies are involved in extensive supply chains from upstream to downstream, it is difficult to accurately and comprehensively grasp all such emissions.
Accordingly, Sojitz will identify business areas that have a significant impact on the Company’s growth and business performance, as well as on society, and will conduct measurement and monitoring starting with those areas, while considering appropriate response policies.
As a first step, Sojitz Group has focused on its coal interests. If all of the coal interests (thermal coal and coking coal) held by the Company as of 2019 were burned, the resulting CO₂ emissions would amount to approximately 200 million tons. Given the extremely large potential volume of emissions, Sojitz has established a policy to reduce its interests in thermal coal used for power generation—which can already be substituted with renewable energy—to zero by 2030.
At the same time, Sojitz has set a policy to reduce its interests in coking coal, which is used as a reductant in steel production, to zero by 2050, assuming that alternative reductants such as hydrogen and ammonia will become widespread from the 2040s onward.
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| Policy(*) |
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(*)Approach to reducing interests
Setting FY2018 as the base year, Sojitz plans to reduce its total interests in thermal and coking coal at a rate that exceeds the reduction rate in seaborne trade of coal as described in the 1.5℃ scenario.
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4-3. Seizing Business Opportunities
4-3-1. Opportunities under Avoided Emissions
Sojitz Group regards Scope 3 not only as a business risk, but also as an opportunity to create new businesses through avoided emissions across the entire supply chain, and promotes initiatives linked to the Company’s growth.
Going forward, through these initiatives, Sojitz will continue to increase the amount of avoided GHG emissions (avoided emissions) generated through its business activities.
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| Action |
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Approach To Our Power Generation Business
Sojitz will limit CO2 emissions efficiency to below the level required by the 1.5℃ scenario.
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*＜Limiting Our Emissions Factor＞
The emissions factor is the amount of CO2 per amount of electricity generated. Formula: Emissions factor = CO2 emission quantity / electricity generated.
The green line below shows the decreasing emissions factor requirement under the 1.5℃ scenario over time. Sojitz will keep the value of its own emissions factor below the requirements of the 1.5℃ scenario.
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We will continue to create renewable resource power generation projects for the benefit of society.
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＜Accumulation of Avoided Emissions＞
For example, in the case of renewable energy businesses, the difference between the average CO2 emissions from electricity generation in a country (unit = CO2 volume / kwh), and the CO2 emissions of our renewable energy business (zero) is the amount of avoided emissions.
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Calculation method: (CO2 emissions per kwh in the country – CO2 emissions per kwh in the Sojitz project ) × amount of power generated by the Sojitz project
＜Avoided Emissions in the Power Sector＞
| Avoided emissions type | Avoided emissions amount (Unit:t-CO2) |
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|---|---|---|
| 1 | High-efficiency gas-fired power generation | 1,720,000 |
| 2 | Power generation from renewable resources* | 830,000 |
- Power generation from renewable resources includes the generation of solar, wind, and biomass power.
Asset Transformation
Increasing “Green” Portion of Assets
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＜Approach＞
Reduce share of carbon-heavy Brown businesses, increase share of Green Businesses that contribute to GHG reduction in society and “Transition Businesses” which support the transition, so as to make overall business portfolio greener. Global debate still ongoing on definitions of green, brown, and transition. Developments to be monitored, including the most-advanced EU taxonomy.
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＜Promotion System＞
To promote these initiatives, under the Medium-term Management Plan 2026, Sojitz established the cross-organizational Energy Transformation Department to accelerate the creation and expansion of projects and businesses in the fields of new energy and decarbonization.
In addition, Sojitz has consolidated its resources in the areas of “Environment (including power generation businesses incorporating renewable energy in Japan and overseas),” “Other Energy,” and “Healthcare” into the Energy & Healthcare Division, with the aim of expanding the scale of its businesses.
4-3-2. Initiatives and Case Studies
For details on our initiatives, please see:
4-4. Analysis of Scope3 and avoided Emissions across the Supply Chain
Sojitz analyzes and identifies its risks and opportunities both qualitatively and quantitatively by using a matrix in which the horizontal axis represents industries in which the Sojitz Group is involved that have high GHG emissions, and the vertical axis represents each stage of the supply chain.
Risks (Scope 3):
Areas with higher GHG emissions are shown in darker shades of orange. Such areas are generally more exposed to pressures to reduce GHG emissions and to the risk of substitution.
Opportunities (avoided emissions):
The bottom row represents opportunities for new substitute businesses, which Sojitz will build up and quantify as avoided emissions.
4-5. Collaborating with Stakeholders
Sojitz participates in METI’s GX League, a forum for cooperation between companies, government, and academic bodies to achieve METI’s strategy for carbon neutrality by 2050. Sojitz is also a member of a GX Business Working Group under the same organization.