• Obsolescence of existing business models resulting from the emergence of new technologies, such as IoT and AI.
• Labor shortage in developed countries, loss of excellent human resources in businesses in which efficiency improvement is delayed.

• Creation of new markets and provision of innovative services.
• Utilizing new technologies for optimizing human resources and logistics, increasing competitiveness by promoting work style reform.

Transition Risk

• Reduction in demand for fossil fuels due to business restrictions on greenhouse gas emissions.

Physical Risk

• Damage to business due to the increase in abnormal weather (e.g., droughts, flooding, typhoons and hurricanes).

• Increase in renewable energy and other business opportunities which will contribute to alleviating climate change.
• Retention and acquisition of customers by strengthening supply structures that can adapt to abnormal weather.

• Decline in labor productivity, loss of excellent human resources, missed business opportunities, increase in health-related expenses, and other events that would result from failure to take appropriate measures.

• Improvement of labor productivity, health and motivation, securing of excellent human resources, enhanced capability of responding to changes and business opportunities, and other events that will result from providing a motivating workplace environment.

• Business delay or business continuity risk resulting from the occurrence of a human rights problem in business activities that expands (geographically).
• Decline in credibility that may result from defects in the social infrastructure services we provide.

• Stabilization of business or securing of excellent human resources resulting from harmonious coexistence with local communities.
• Establishment of safe, stable supply system for product enabled by the consideration of human rights and improvement of work environment in the supply chain.

• Decline in credibility that would result from the occurrence of consumers and service users’ safety or health issues.
• Impact on business of destabilization of the market or social security system based on policy change.

• Increase in demand for food safety, security and health improvement.
• Expansion of information, financial and logistics services resulting from an increase in consumer spending or penetration of the internet.

• Impact of opposition movement resulting from the occurrence of an environmental problem and worsening relationship with local communities.
• Structural exhaustion of the overall industry caused by the occurrence of price competition, mainly in the consumer-related sector.

• Increase in resource demand attributed to an increase in population and improvement of living standard in emerging countries.
• Winning customer trust or creating new businesses with a stable supply of environmentally friendly resources and materials.

• Occurrence of business continuity risk or unexpected loss resulting from the malfunction of corporate governance or internal control.

• Improvement of transparency in decision-making, appropriate response to changes and establishment of a stable basis of growth enabled by the establishment of a firm governance system.

• Promote DX, and improve productivity and operational efficiency of the entire industry.
• Leverage new technologies (such as Fintech, IoT, AI, and remote technology, etc.) and business models, and promote the creation of new businesses and the provision of innovative services utilizing consumer contact points.

• Comply with the Japanese government’s target, achieve “virtually zero” GHG emissions by 2050. Furthermore, aim for “zero offset” by 2040 through the active promotion of businesses that reduce emissions, and contribute to reducing the impact of climate change.

• Promote integrated projects including the development, operation, and fuel supply of ammonia-fueled vessels, and contribute to net zero emissions of GHGs in the marine and shipping sectors.
• Develop, own, and operate renewable energy power plants so as to realize a stable supply of renewable energy, and contribute to mitigating the effect of climate change.
• Provide a stable supply of AI storage batteries that help optimize the balance of power supply in household regions and contribute to mitigating the effect of climate change.
• Promote sales of electric vehicles (EVs) and hybrid vehicles (HVs), and contribute to global warming countermeasures in the transportation sector.
• Promote environmentally friendly energy use in regional heat supply, and contribute to mitigating the effect of climate change.

• Diversify origin and development of local industries so as to hedge weather risks, and reduce the impact of extreme weather and global warming in food, forestry sectors.

• Promote efforts to completely withdraw from fuel coal mine interests, and contribute to mitigating the effect of climate change.
• Work with specialized companies on resource development projects that take into account GHG reduction (Transition Fuel), and contribute to mitigating the effect of climate change.

• Continue to invest in the development of technologies that contribute to the reduction of greenhouse gas emissions, such as CCS (CO₂ storage) and CCU (CO₂ utilization), and contribute to mitigating the effect of climate change.
• Promote businesses related to the stable supply of materials necessary for the production and supply of fuels such as hydrogen and ammonia, raw materials such as nickel and PGM, and storage batteries, and contribute to mitigating the effects of climate change.
• Expand the use of sustainable by-products as an alternative to cement, which is indispensable for civil engineering and construction, and contribute to mitigating the effect of climate change.

• Work with local specialized companies in Europe and the Middle East, promote waste disposal and waste power generation projects, and contribute to mitigating the effect of climate change.

• Work with local specialized companies mainly in Europe and the Middle East, promote water treatment business, and promote effective use of water resources and contribute to reducing the environmental impact.

• Prohibit all forms of discrimination, create an environment in which employees with childcare, nursing care, or illness can also play an active role, and support the activities of diverse human resources.
• Enhance occupational health services and health & safety management system, and promote employees’ health and safety.
• Penetrate labor standards, work style reform, enhancing employee benefits, and promote improvement of labor productivity and employee engagement.
• Develop training programs for all levels from a global perspective, develop and utilize personnel systems based on management by objectives, and promote the development of excellent human resources.

• Establish and conduct fair recruitment, harassment prevention, human rights training, and grievance hotlines, and reduce the negative impact on human rights.

• Give due consideration to the environment, health and occupational safety (EHS) and coexistence with local residents, and promote sustainable mining operations.
• Contribute to medical care and education for local communities in the areas where we operate our mines.

• Improve supply chain transparency in the procurement of raw materials for wood, palm oil, natural rubber, food, etc., and prevent negative impacts on forests, the environment and local residents.

• Continuously conduct surveys on human rights, society, and the environment of new businesses, business investments and major suppliers, and reduce negative impacts of human rights, society and the environment throughout the value chain.
• Conduct human rights due diligence, and reduce negative human rights, society and environment throughout the value chain.

• Promote social contribution activities for local communities, and realize a symbiotic community where sports and cultural exchange are possible.

• Select and concentrate on suppliers to ensure stable procurement of safe and secure food products, and provide safe products to our customers.
• Work with suppliers, provide products with food information and nutritional balance, and contribute to the promotion of people’s health.

• Provide advanced medical equipment and advanced medical services, develop safe pharmaceuticals and other product, and contribute to the improvement of people’s health.

• Expand financial services that support people who need financing for their daily lives and business continuity (low-income people, etc.), and contribute to a healthy and prosperous life.

• Increase supply chain transparency in the procurement of raw materials for wood, palm oil, natural rubber, food, fiber, etc., and prevent negative impacts on forests, the environment and local residents.

• Work with brand owners, supply environmental-friendly materials such as bioplastics, establish recycling and reuse programs, and contribute to solving social problems such as marine plastics and waste plastics.

• Reduce impacts on biodiversity through ESG risk assessment focusing on biodiversity in investment projects (electric power, mines, oil and gas fields, etc.).

• Diversify production areas to hedge weather risks, cultivate new production areas through the development of local industries, and contribute to the stable supply of agricultural products.
• Work with key partners, maintain a value chain of mining resources and next-generation fuels (hydrogen and ammonia) that reinforces existing achievements, and contribute to the stable supply of resources.

• Strengthen communication on the respect for human rights and environmental management with major suppliers of natural resources, and prevent negative impacts of suppliers on the economy, environment, and people.
• Further expand and increase the handling of sustainable materials, and contribute to the stable supply of textile products.

• Contribute to the promotion of the effective use of resources and the reduction of adverse environmental impact in our own offices and business activities such as waste disposal and food.
• Comply with relevant chemicals laws and regulations, and minimize the adverse effects on human health, the environment and the stable supply of chemicals.

• Promote the efficient use of water in our own offices and business activities, promote water treatment projects in water-stressed areas, and contribute to the promotion of effective use of water resources and reduction of environmental impact.

• Provide highly effective supervision of management, increase the transparency of decision-making, ensure appropriate and efficient business execution, and meet the expectations of our stakeholders through sustainable growth.
• Establish a group risk management system, maintain continuous performance, and meet the expectations of our stakeholders.
• Further foster awareness among employees that compliance at all times constitutes a contribution to the company and society, and mitigate adverse impacts on the economy (competition practices, procurement practices, etc.