Climate Change (Information Disclosure Based on TCFD Recommendations)

In May 2019, ITOCHU Corporation announced our support for the TCFD* recommendations in recognition of the importance of climate-related financial disclosures. Since then, we continue working to provide information disclosure based on TCFD recommendations.

  • TCFD: The Task Force on Climate-related Financial Disclosures established by the Financial Stability Board (FSB).

Policy and Basic Concept Concerning Climate Change

We recognize that climate change is one of the most urgent global environmental issues, therefore ITOCHU Group, which operates globally, considers climate change and other global environmental issues as one of the most important management issues. We support international policies and standards, including the Paris Agreement, the contribution determined by the Japanese government (NDC), climate change-related laws and regulations (such as the Act on Rationalizing Energy Use and the Act on Promotion of Global Warming Countermeasures) and various governmental policies, and we will view adaptation to changes in the business environment due to climate change as an opportunity for further growth and incorporate these into our policies and specific initiatives.

We define our initiatives related to climate change in the ITOCHU Group Environmental Activities Policies “2. Response to Climate Change: We shall reduce greenhouse gas emissions and increase the efficiency of energy use within our own operations, as well as externally provide products and services that contribute to the mitigation and adaptation to climate change.” In March 2021, our Board of Directors approved the inclusion of greenhouse gas (GHG) emissions reduction targets for 2030, 2040, and by 2050 as core targets for our Medium-term Management Plan, Brand-new Deal 2023. These targets are in line with Japan NDC, which we aim to achieve by reducing avoidable emissions and actively promoting businesses that contribute to reductions.
Under our corporate philosophy of the “Sampo-yoshi” approach, we will respond to climate change risks and opportunities in collaboration with the stakeholders to increase our corporate value.

Governance

ITOCHU views responding to climate change and other sustainability issues as an important management issue. Our Board of Directors gives due consideration to response policies for climate change-related risks and opportunities and GHG reduction targets and initiatives, and incorporates these policies into deliberations and decisions on annual budgets, business plans, and other core matters.

The ITOCHU Sustainability Committee is the body delegated with general management responsibilities concerning the proposal and implementation of the various policies that will enable us to respond to climate change and other sustainability matters. This Committee ascertains, manages, and evaluates climate change-related targets, the implementation status of transition plans, and current environmental and social risks and opportunities. ITOCHU’s Chief Administrative Officer (CAO) is the director responsible for climate-related issues and is also a member of the Headquarters Management Committee (HMC). The CAO also serves as chair of the Sustainability Committee. The CAO provides a report to the Board of Directors approximately twice per year on matters deliberated and decided by the Sustainability Committee in addition to a report on the status of major sustainability promotion activities. This creates an organization that allows the Board of Directors to appropriately supervise business and financial strategies (including reviewing strategy and making divestment and asset replacement decisions) for responding to environmental and social risks and opportunities while giving proper consideration to matters deliberated and decided by the Sustainability Committee. As the executive level, management from each company and administrative division also serving as ESG Officers participate in Sustainability Committee meetings as core members. The Sustainability Committee receives reports on climate-related matters from the Sustainability Management Division and ESG Managers from each company and administrative division. We use these reports towards progress management and monitoring for each policy and various initiatives.

In 2021, our Board of Directors approved the inclusion of growth strategy and GHG emissions reduction targets in our Medium-term Management Plan, Brand-new Deal 2023. This decision reflects our commitment to the climate-related issues impacting our Company and we believe this will enable us to lead the industry in realizing a decarbonized society in enhancing our contribution to and engagement with the SDGs through business activities. Based on this decision by the Board of Directors, the Sustainability Committee deliberates specific policies and targets related to decarbonized initiatives. Each business division works continuously to implement these policies and initiatives approved by the CAO, the director in charge, and progress is reviewed by the Sustainability Committee. Our Board of Directors has further resolved to continuously respond to social demand by aiming to balance both sustaining the basic policies outlined in the previous medium-term management plan and to promote businesses that contribute to emissions reduction and reflected it in the Management Policy “The Brand-new Deal” formulated in 2024.

The chair of the Sustainability Committee and management from each company and administrative division (ESG Officers) meet with external experts (a Sustainability Advisory Board) once a year to engage in dialogue towards making continuous improvements to our climate change response. Through this dialogue, we promote climate change countermeasures based on an understanding of society’s expectations and demands on ITOCHU.

Governance System Concerning Climate Change (As of April 2024)
  • CEO: Chief Executive Officer
    COO: Chief Operating Officer
    CAO: Chief Administrative Officer
    HMC: Headquarters Management Committee

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Climate-related Meetings Held by the Board of Directors and Committees Frequency of Meetings and Reports Main Items Deliberated or Reported on
(FYE 2019 to FYE 2024)
The Board of Directors
  • Periodic reports are made at least once a year
  • Results
    • Once in FYE 2019
    • 2 times in FYE 2020
    • Once in FYE 2021
    • Once in FYE 2022
    • 3 times in FYE 2023
    • 4 times in FYE 2024
  • FYE 2019
    • Announcement of support for the TCFD recommendations
  • FYE 2020
    • Disclosure based on the TCFD recommendations, calculation of Scope 3 GHG emissions
  • FYE 2021
    • GHG reduction target, Disclosure based on the TCFD recommendations
  • FYE 2022
    • Creation of Medium-term Management Plan, Brand-new Deal 2023. (Growth strategy and GHG emissions reduction targets towards leading the industry in realizing a decarbonized society in enhancing our contribution to and engagement with the SDGs through business activities.)
    • Report on ITOCHU SDGs/ESG initiatives
  • FYE 2023
    • Confirmation of the Material Issues
    • Policy for GHG emissions reduction
    • Monitoring of Scope 1/2/3 results
  • FYE 2024
    • Status of GHG emissions reduction roadmap
    • Results and forecast of avoided emissions
Sustainability Committee
  • Usually held 1 ～ 2 times a year
  • Results
    • Once in FYE 2019
    • 2 times in FYE 2020
    • Once in FYE 2021
    • 2 times in FYE 2022
    • 3 times in FYE 2023
    • 3 times in FYE 2024
  • FYE 2019
    • Announcement of support for the TCFD recommendations
  • FYE 2020
    • Disclosure based on the TCFD recommendations, calculation of Scope 3 GHG emissions
  • FYE 2021
    • GHG reduction target, Disclosure based on the TCFD recommendations
  • FYE 2022
    • Confirmation of Scope 1/2/3 results, status of progress on reduction targets
  • FYE 2023
    • Confirmation of the Material Issues
    • Policy for GHG emissions reduction
    • Monitoring of Scope 1/2/3 results
  • FYE 2024
    • Status of GHG emissions reduction roadmap
    • Results and forecast of avoided emissions

Strategy

ITOCHU applies the Policy and Basic Concept Concerning Climate Change to analyze scenarios based on TCFD recommendations (analysis of transition and physical risks and opportunities associated with climate change). We use the results of these analyses to realign our business strategy and portfolio.

Climate Change-related Risks and Opportunities

ITOCHU is engaged in various businesses in locations around the world. Each business is impacted by various short-, medium-, and long-term climate change transition risks and physical risks. As such, ITOCHU globally identifies, evaluates, and manages risks and opportunities with the possibility to have a material financial impact on our business, supply chain, and strategy. We conduct such analysis and evaluation throughout each business proposal management process and in our environmental and social risk management processes, which includes climate change.

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Material Climate Change-related Risks and Opportunities (risk criteria)
Climate-Related Risks and Opportunities Impact of Climate-related Risks and Opportunities on the Organization’s Business, Strategy, and Financial Planning Impact Timeline* Impacted Value Chains Related Businesses
Transition Risks and Opportunities Policy and Legal Systems
  • If countries around the world take a more aggressive approach in their GHG emissions reduction targets and subsequently strengthen laws and regulations regarding corporate emissions, fossil fuel demand may see a sharp decrease.
  • Increased operating costs due to carbon pricing (carbon tax, etc.) or business regulations
 Medium-term
Long-term		 Upstream, ITOCHU Group Power generation business, Fossil fuel business, Iron ore business, Automobile business, Chemicals business
Technical Innovation Business opportunities that contribute to mitigation to climate change are expected to increase (e.g., renewable energy, energy storage systems, low-carbon fuels, low-carbon emission steelmaking raw materials, etc.) Short-term
Medium-term
Long-term		 ITOCHU Group Renewable energy, energy storage system businesses, Low-carbon fuel business, New material business, Iron ore business
Changes in Market Conditions Demand for certain products and services may decrease due to market risks related to public policy, laws and regulations, or technological advancements (e.g. clean technology) Short-term
Medium-term
Long-term		 Upstream, ITOCHU Group Fossil fuel business, Chemicals business, Automobile business, Renewable energy, energy storage systems businesses, New material business, CCUS/emissions credit-related businesses
Physical Risks and Opportunities Acute Physical Risks and Opportunities Operations may be impacted or damaged by increased occurrences of abnormal weather patterns (e.g., droughts, floods, typhoons, hurricanes, etc.) Short-term
Medium-term
Long-term		 Upstream, ITOCHU Group, downstream Food business, Forestry-related businesses, Mining business
We may be able to strengthen customer retention and/or attraction by strengthening our supply chain resilient to extreme weather patterns and promoting stable supply as a value proposition Short-term
Medium-term
Long-term		 Upstream, ITOCHU Group, downstream Food business, Forestry-related businesses
Chronic Physical Risks and Opportunities Our capability to maintain and increase the quantity of agricultural and forestry-related harvests, as well as products manufactured using these yields, may be impacted by climate-related changes such as increasing temperatures and likelihood of droughts. Medium-term
Long-term		 Upstream, ITOCHU Group, downstream Food business, Forestry-related businesses
  • Short-term: less than 1 year, medium-term, up to 3 years, long-term: 4 or more years

Scenario Analysis

Scenario Selection

We categorized our businesses with climate impact, such as GHG emissions volume on the vertical axis and climate-related financial impact on the horizontal axis and analyzed our businesses with priority given to those mapped in a zone where both dimensions are high. Based on this, we designated the following businesses as targets for scenario analysis: “Power Generation,” “Energy,” “Coal,” “Iron Ore,” “Automotive,” and “Chemicals” as businesses with significant transition risk impacts, including policy and legal risks, and “Dole,” “Feed and Grain Trade,” and “Pulp” as businesses with significant physical risk impacts from climate change. The above nine businesses are included in the four non-financial sectors (energy, transportation, materials and buildings, and agriculture, food, and forest products) designated by the TCFD as potentially highly affected by climate change.

Business for Scenario Analyses

Definition of Scenario Groups

When considering our scenario analysis, we referenced materials published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC). These materials are highly recognized internationally for the credibility, are referenced in TCFD recommendations, and cover a broad range of business domains. As a result, we set the following three scenarios.

As the reduction targets of various countries, international guidelines, and investor demands are mainstreaming the goal of limiting the increase to 1.5℃ above pre-industrial levels, we will continuously review the risks, opportunities, and mitigation measures based on the parameters and business environment approximately every 1 to 2 years.

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Scenario 4℃ <2℃ 1.5℃
Image of society

The policies of countries, such as the Intended Nationally Determined Contributions (INDC) established in accordance with the Paris Agreement, are implemented. Nevertheless, the average temperature at the end of this century rises by 4℃. This is a society in which there is a high likelihood climate change (e.g., a rise in temperature) will impact business.

The average temperature rise is kept below 2℃ until the end of this century. Bold policies and technological innovation are promoted. This is a society in which social changes due to the transition to a de-carbonized society are highly likely to impact business.

Bold policies and technological innovations will be promoted to limit the average temperature increase to 1.5℃ until the end of the century and achieve sustainable development. This is a society in which social changes due to the transition to a de-carbonized society are highly likely to impact business.
Reference scenarios Transition aspects
  • Stated Policies Scenario
    (IEA WEO2023)
  • Stated Policies Scenario
    (ETP WEO2020), etc.
  • Sustainable Development Scenario
    (IEA WEO2019)
  • 2℃ Scenario
    (IEA ETP2017), etc.
  • Net Zero Emissions by 2050 Scenario
    (IEA WEO2023)
  • Announced Pledges Scenario (IEA WEO2023), etc.
Physical aspects
  • RCP8.5 (IPCC AR5), SSP5-8.5 (IPCC AR6), etc.
  • RCP2.6 (IPCC AR5), etc.
  • RCP2.6 (IPCC AR5), SSP1-1.9, SSP1-2.6 (IPCCAR6), etc.
Risks and opportunities

Risks and opportunities in terms of physical aspects will be more likely to surface

Risks and opportunities in terms of transition aspects will be more likely to surface

Risks and opportunities in terms of transition aspects will be more likely to surface
  • The IEA WEO 2019 Sustainable Development Scenario is the following scenario: The world works to keep the rise in temperature to less than 2℃ – if possible, 1.5℃. At the same time, this is a scenario in which the targets of everyone being able to use energy and improving air pollution are achieved.
  • IEA WEO 2023 “Net Zero Emissions by 2050 Scenario” is a scenario that shows a possible path for the global energy sector to achieve net zero GHG emissions by 2050 and limit temperature rise to 1.5℃ above pre-industrial levels.

Scenario Analysis and Results

For the scenario analysis, we did not limit the timeline range to the short-term. We also added medium- and long-term axes for 2030 and beyond when organizing and evaluating the factors of latent risks and opportunities that could have a significant qualitative or quantitative financial impact for each business. We identified risk and opportunity factors from the perspective of procurement, business operations, and markets’ demand for the subject business, and then organized and evaluated factors of high importance. For particularly important factors, our scenario analysis was based on finance models that reflect defined parameters. We defined these parameters by identifying variables that significantly impact transition and physical risks and opportunities. For the analysis of financial impact level, we measured the latent impact level of climate change and analyzed the financial impact level, including the effect of risk and opportunity measures.

The quantitative information used in our scenario analysis reflects judgments made by ITOCHU based on scenarios prepared by sources such as the IEA. While we worked to increase analysis precision, the analysis does include numerous uncertainties.

1. Businesses for Which Transition Risks Are the Main Issues

The main issues for following 5 business are transition risks in the 1.5℃ scenario.

Timeframe By 2040
Temperature Band Scenario 1.5℃ Scenario
Main risks and opportunities Transition
  • Risk: Decrease in thermal power station earnings due to effects such as an increase in carbon dioxide emission costs.
  • Risk: Decline in demand for thermal power generation.
  • Opportunity: Improvement in profitability due to an expansion in renewable energy business opportunities, technological advances and cost reductions.
  • Opportunity: Increase in earnings due to the increased use of hydrogen/ammonia co-firing power generation, CCUS and other technologies.
Physical
  • Risk: Damage to power generation facilities by natural disasters (abnormal weather).
Business environment under the scenario
Business impact assessment

Earnings may decrease due to an increase in carbon dioxide emission costs and a decline in demand for thermal power generation in the transition scenario. On the other hand, earnings are expected to increase overall due to an expansion in new energies including renewable energy power generation, hydrogen/ammonia co-firing power generation and CCUS.

Analysis according to the EBITDA indicator (%)*

  • Earnings before interest, taxes, depreciation and amortization (This refers to earnings calculated by adding interest expenses and depreciation expenses to earnings before tax.)
  • Adaption/mitigation measures & policies
  • Business opportunities
  • We aim to have a renewable energy ratio of over 20% (equity interest basis) by FYE 2031. We will reflect this aim in our future initiatives.
  • We will not develop new coal-fired power generation projects to contribute to the building of a sustainable society.
Financial information
  • Profit in segment of applicable business (gross profit): 65.2 bn yen (Plant Project, Marine & Aerospace Division / FYE 2024 Results)
  • Total assets in segment of applicable business: 869.3 bn yen (Plant Project, Marine & Aerospace Division / March 2024)
Timeframe By 2040
Temperature Band Scenario 1.5℃ Scenario
Main risks and opportunities Transition
  • Risk: Countries may introduce regulations (e.g., carbon taxes) to realize a decarbonized society. This may cause global demand for oil to decrease. Demand for natural gas and LNG is also expected to shrink after 2030, but a certain level of demand for LNG as a transition fuel is expected to remain, especially in Asia.
  • Opportunity: Demand for new energies (e.g., hydrogen, ammonia and renewable fuel) may increase as alternatives to fossil fuels.
  • Opportunity: Business opportunities may increase for carbon dioxide capture, utilization and storage (CCUS) to reduce greenhouse gases.
Physical
  • Risk: Production facilities could be damaged in a natural disaster (abnormal weather).
Business environment under the scenario
Business impact assessment

Under the 1.5℃ scenario, we expect global demand for oil to diminish and demand for natural gas and LNG to contract after 2030, but we aim to maintain and increase earnings by capturing opportunities to trade alternative fuels and develop new environmental businesses, such as CCUS. Although production facilities could be damaged due to natural disasters (abnormal weather), the impact of damage is expected to be limited due to disaster countermeasures taken in cooperation with partner companies.

Analysis according to the profit after tax (%)
  • Adaption/mitigation measures & policies
  • Business opportunities
  • We will focus our efforts on new energy, CCUS and other environmental businesses, and aim to restructure our energy business portfolio in line with the industrial structure in the decarbonization scenario.
  • Although demand for natural gas and LNG is expected to decline in the long term, we will continue to participate in projects and seize trade opportunities whilst taking into account societal needs, including the importance of natural gas as a raw material for hydrogen and a transitional fuel. As for our upstream petroleum-related assets, we will look to replace them and improve their efficiency in line with the decarbonization scenario.
Financial information
  • Profit in segment of applicable business (gross profit): 117.8 bn yen (Energy Division / FYE 2024 Results)
  • Total assets in segment of applicable business: 804.9 bn yen (Energy Division / March 2024)
Timeframe By 2030
Temperature Band Scenario 1.5℃ Scenario
Main risks and opportunities Transition
  • Risk: Introduction and increase of carbon tax
  • Risk: Decrease in demand for virgin plastic due to widespread adoption of recycling
  • Opportunity: Increase in demand for low-carbon / decarbonization-related materials and products
  • Opportunity: Increase in demand for clean fuels and chemical raw materials
Physical
  • Risk: Damage to facilities / inventories and shutdown of operations caused by typhoons, floods, etc.
  • Opportunity: Increase in demand for chemical materials and products related to production increase, preservation and stockpile of food.
Business environment under the scenario
Business impact assessment

Under the transition scenario, while the introduction and increase in carbon tax will increase costs and lower demand for virgin plastics will result in lower sales and profits, our chemical business will be able to increase earnings by capturing opportunities in environmental businesses such as recycled plastics, bioplastics, clean ammonia and methanol, where demand is expected to increase.

Analysis according to the profit after tax (%)
  • Adaption/mitigation measures & policies
  • Business opportunities
  • Accelerate progress toward a decarbonized society through energy saving measures, procurement of renewable energy, etc.
  • Taking the initiative in realizing resource circulation by providing a 3R platform and sustainable cycle.
  • Restructuring our chemical business portfolio by accelerating our efforts in environment-related businesses, such as sourcing of environmentally friendly raw materials.
Financial information
  • Profit in segment of applicable business (Profit After Tax): 134.2 bn yen (Chemical Division / FYE 2024 Results)
  • Asset in segment of applicable business: 656.6 bn yen (Chemical Division / March 2024)
Timeframe By 2050
Temperature Band Scenario 1.5℃ Scenario
Main risks and opportunities Transition
  • Opportunity: The stable supply of low-carbon emission steelmaking raw materials
  • Risk: Increase in cost of fuels and materials due to the introduction of a carbon tax
  • Opportunity: Creation of a new low-carbon emission steelmaking raw materials business
Physical
  • Risk: Increase in procurement costs due to the increased frequency of severe weather events and worsening water scarcity
  • Risk: Disruption of iron ore supply chain due to frequent weather disasters
Business environment under the scenario
Business impact assessment

The introduction of a carbon tax is expected to increase the cost of fuel, materials, and other items. Nevertheless, the impact on earnings will be limited due to strengthened relationships with blue-chip business partners and improvement of operational efficiencies.
Further growth is expected by focusing on the production of high-grade ore, for which demand is expected to increase due to the acceleration of the shift to decarbonization, and steadily seizing business opportunities in iron ore and related fields, such as creation of businesses related to low-carbon emission steelmaking raw materials.

Analysis according to the profit after tax (%)
  • Adaption/mitigation measures & policies
  • Business opportunities
  • We will closely monitor trends in low-carbon emission steelmaking technologies and promote initiatives to ensure a stable supply of low-carbon emission steelmaking raw materials.
  • Promote initiatives to reduce GHG emissions by strengthening relationships with business partners.
Financial information
  • Profit in segment of applicable business (gross profit): 195.9 bn yen (Metals & Minerals Company / FYE 2024 Results)
  • Asset in segment of applicable business: 1,403.5 bn yen (Metals & Minerals Company / March 2024)
Timeframe By 2030
Temperature Band Scenario 1.5℃ Scenario
Main risks and opportunities Transition
  • Risk: The number of internal combustion engine vehicles we handle may decrease.
  • Opportunity: The number of electric vehicles we handle may increase.
  • Opportunity: New business may expand with the spread of electric vehicles.
  • Risk: Transportation costs may rise due to the introduction of carbon taxes.
Physical
  • Risk: There is a risk the factories of our business partners may suffer damage and suspend operations.
Business environment under the scenario
Business impact assessment

The automobile industry is expected to shift from internal combustion engine vehicles to electric vehicles. Our customers are found all over the world. That means we can expect automobile demand to remain firm despite the expectation there will be a gradual shift in the vehicles we handle from internal combustion engine vehicles to electric vehicles in line with the regulations of each country.
It is also expected that the introduction of carbon taxes may lead to an increase in transportation costs in some regions. We will continue to maintain competitiveness by working with our partners to reduce costs.
We will aim to obtain further earnings by strengthening our storage battery and other related businesses with the spread of electric vehicles.

Analysis according to the Gross trading profit indicator (%)
  • Adaption/mitigation measures & policies
  • Business opportunities
  • We will continue to expand business by ascertaining demand trends by region based on the electric vehicle development and production situation of automobile manufacturers and trends in electric vehicle-related regulations in the countries where we sell our products.
  • We will strengthen relationships with business partners who are reducing greenhouse gases in regard to freight forwarders and marine transportation companies.
  • We will develop and expand business by linking up with partners who are mainly automobile manufacturers to expand our electric vehicle-related business.
Financial information
  • Profit in segment of applicable business (gross profit): 185.1 bn yen (Automobile, Construction Machinery & Industrial Machinery Division / FYE 2024 Results)
  • Asset in segment of applicable business: 1,114.2 bn yen (Automobile, Construction Machinery & Industrial Machinery Division / March 2024)
Initiatives in Coal-related Business

The business environment and response measures under the 2℃ scenario for the coal-related business is as follows.

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Business environment under the scenario Under the 2℃ scenario, business could be impacted by technological innovation, regulatory trends, and global energy demand but, overall, thermal coal usage volume will decrease over the medium- and long-term.
Measures and policies
  • In February 2019, we adopted a policy outlining not developing new coal thermal power plants or acquiring thermal coal mine businesses.
  • Decided on the withdrawal from thermal coal mine interests to reflect commitment to leading the industry in realizing a decarbonized society. This is in line with the basic policies in the Medium-term Management Plan from FYE 2022: enhancing our contribution to and engagement with the SDGs through business activities. In April 2021, we sold our Drummond interests in Colombia, completing our withdrawal from interests in coal mines that only produce thermal coal. In March 2022, we also sold our interests in Ravensworth North in Australia, which produced both coking coal and thermal coal.
  • We will strongly promote efforts toward technological development and social implementation to contribute to a reduction in greenhouse gas emissions. This includes carbon capture and storage (CCS) and carbon capture and utilization (CCU). On the other hand, there will continue to be a need for thermal power generation as regulated power supplies and backup power supplies for the time being for the large-scale spread of renewable energy. Therefore, we will continue to fulfill our duty to stably supply resources through thermal coal trading.
Financial information
  • Profit in segment of applicable business (gross profit): 195.9 bn yen (Metals & Minerals Company / FYE 2024 Results)
  • Total assets in segment of applicable business: 1,403.5 bn yen (Metals & Minerals Company / March 2024)
2. Businesses for Which Physical Risks Are the Main Issues

The main issues for agriculture- and forestry-related businesses are physical risks in the 4℃ scenario.

Timeframe By 2030
Temperature Band Scenario 4℃ Scenario
Main risks and opportunities Transition
  • Opportunity: Enhance the adoption of renewable energy solutions, such as solar power generation and biomass boilers, and the biogas power generation using in-house organic resources including residues from pineapple, banana and other fruit-base wastes.
Physical
  • Risk: Reduction in harvest volumes due to extreme weather (floods, typhoons and droughts etc.) in banana and pineapple plantations in the Philippines.
Business environment under the scenario
Business impact assessment

The decrease in harvest volumes attributable to extreme weather events can be mitigated by improving the unit yield through the development of resistant varieties and production methods (cultivation and irrigation etc.). We will diversify production areas and procurement sources (Sierra Leone and Vietnam etc.) for preparation against weather risks, and expand our portfolio of high value-added products. The above initiatives will make it possible to increase earnings.

Analysis according to the EBITDA indicator (%)*

  • Earnings before interest, taxes, depreciation and amortization (This refers to earnings calculated by adding interest expenses and depreciation expenses to earnings before tax.)
  • Adaption/mitigation measures & policies
  • Business opportunities
  • We will diversify producing areas and procurement sources in preparation for weather risks (Sierra Leone and Vietnam etc.).
  • We will increase unit yield by implementing advanced production methods, including the developing resistant varieties, improving seedling cultivation methods, and installing irrigation equipment.
  • We will use drones and ICT (agricultural chemical spraying location identification, yield prediction, and timely and accurate fertilization) to increase the efficiency of production.
  • We will contribute to low carbonization and water resource protection, capture the support of environmentally-conscious consumers and increase our brand value by expanding the introduction of recycling-based clean energies and renewable energies such as solar power.
  • We will expand our portfolio to include a diverse range of high value-added product offerings.
Financial information
  • Dole International Holdings net profit: 1.5 bn yen (FYE 2024 Results)
  • Total assets in segment of applicable business: 2,420.9 bn yen (Food Company / March 2024)
Timeframe By 2030
Temperature Band Scenario 4℃ Scenario
Main risks and opportunities Transition
  • Risk: Risk of the diversion of the use of timber to products other than paperboard products (competition in demand for timber).
  • Opportunity: Improvement in competitive advantage if the cost of carbon tax increases because we already use 100% biomass energy in pulp manufacturing.
  • Opportunity: Preference for renewable and non-fossil resource-derived raw materials (timber).
Physical
  • Risk: Change in the suitable areas for growing trees for each species due to the temperature rise. Decrease in the amount produced depending on the species and region (pine trees throughout Finland and spruce trees in the south of the country).
  • Risk: Impact on procurement and production from rainstorms, droughts, floods, forest fires, pests, frozen soil thawing and other issues.
Business environment under the scenario
Business impact assessment

The amount produced is expected to decrease in some areas due to the rise in the global average temperature. Nevertheless, we can continue to improve earnings by increasing the amount of pulp we produce with the augmentation of facilities in afforestation regions where the amount produced is expected to increase.

Analysis according to the EBITDA indicator (%)*

  • Earnings before interest, taxes, depreciation and amortization (This refers to earnings calculated by adding interest expenses and depreciation expenses to earnings before tax.)
  • Adaption/mitigation measures & policies
  • Business opportunities
  • ITOCHU will utilize our strengths in the paper pulp business to contribute to the elimination of plastics and promote the launch onto the market of new materials which will contribute to sustainability. We invest in Paptic Ltd. in Finland and Transend Packaging Ltd. in the U.K. We continue development of cellulose nanofiber applications. Through such efforts, we will develop new markets in high value-added fields with forest-derived pulp serving as the main raw material.
  • The impact from the rise in temperature on the amount of pulp we produce will differ between northern and southern Finland. Accordingly, we will consider a production structure based on the location of afforestation regions and factories in Finland. We are planning to improve operating rates in northern Finland in particular with our minds focused on increasing the amount of pulp we produce. We made a large capital investment in a pulp factory in northern Finland through Metsa Fibre Oy in 2023 to raise production capacity (approximately 20% increase). We will aim for stable business operation by dispersing geographical risks relating to timber procurement and other areas through the dispersion of factory locations and production capacity.
Financial information
  • Profit in segment of applicable business (gross profit): 194.6 bn yen (Forest Products, General Merchandise & Logistics Division / FYE 2024 Results)
  • Total assets in segment of applicable business: 809.3 bn yen (Forest Products, General Merchandise & Logistics Division / March 2024)
Timeframe By 2030
Temperature Band Scenario 4℃ Scenario
Main risks and opportunities Transition
  • Opportunity: We may capture demand with feed products and other low-carbon-related products which contribute to reducing greenhouse gases.
Physical
  • Risk: Decrease in the amount of crops harvested and logistics disruption due to large hurricanes, droughts and other abnormal weather in countries from where we import crops.
  • Risk: The amount of crops harvested may decrease and transaction prices may increase in countries from where we import crops due to rising temperatures.
  • Opportunity: We may maintain a supply structure by diversifying the countries from where we import crops and capture demand for grain.
Business environment under the scenario
Business impact assessment

The decrease in the amount of crops harvested due to weather disasters and rising temperatures may lead to supply instability and increases in prices. However, we can maintain a supply structure by diversifying the countries from where we import crops and then provide further opportunities for low-carbon-related products.

Analysis according to the Gross trading profit indicator (%)
  • Adaption/mitigation measures & policies
  • Business opportunities
  • We will diversify the countries from where we import crops to prepare for the acute and chronic impacts from climate change.
  • We will engage in new environmental-related business such as feed which leads to a curb on methane emissions.
Financial information
  • Profit in segment of applicable business (gross profit): 380.9 bn yen (Food Company / FYE 2024 Results)
  • Total assets in segment of applicable business: 2,420.9 bn yen (Food Company / March 2024)

Impact on Existing Strategies and Business Transition Plans

During our scenario analysis, we ascertained high-impact negative financial risks associated with not implementing climate change measures such as shifting current business strategy or business regions. As a result, we have been steadily promoting specific business transition plans and financial plans (including divestment and asset replacement) in line with our Management Policy “The Brand-new Deal” based on the basic policy of enhancing our contribution to and engagement with the SDGs through business activities.

Transition Plans for Main Businesses Subject to Transition Risks

In 2021, together with our GHG emissions reduction targets, we announced our management plan to actively promote clean-tech business and other businesses that contribute to GHG emissions reduction as a way to contribute to and strengthen our efforts toward the SDGs. This basic policy is carried over to the Management Policy “The Brand-new Deal” formulated in 2024. Through our own businesses, we aim to achieve a situation where the amount of our avoided emissions exceeds our GHG emissions by 2040.

Businesses Identified as Examples of Contributing to and Strengthening Efforts toward the SDGs
Business Summary
Environmentally Friendly Fibers
  • Contribution to a circular economy through expansion of sustainable materials.
Water and Waste Treatment
  • Developing businesses centered on Europe and the Middle East through collaboration with leading partners.
  • Began construction of the world’s largest energy-from-waste (EfW) project in Dubai.
Renewable Energy
  • Promoting power generation businesses, including wind, solar, and geothermal, mainly in North America, Europe, and Asia.
  • Operating and providing maintenance services for solar power plants at approximately 1,400 locations in North America.
Recycling of Metal Scrap, etc.
  • Developing a wide range of recycling businesses of materials including metal scrap, by utilizing a nationwide network of recycling companies and providing waste management services.
Low-carbon Iron
  • Promoting the construction of a low-carbon iron supply chain that contributes to decarbonization of the steel industry.
CCUS (Carbon Capture, Utilization and Storage)
  • Collaboration with domestic and overseas business partners to commercialize the utilization of mineral carbonation technologies by Australia-based MCi.
  • Participate in a project commissioned by the New Energy and Industrial Technology Development Organization (NEDO), and also conduct R&D and demonstration projects for liquefied CO2 transportation technology.
Energy Storage Systems・Renewable Energy
  • Promoting next-generation power services and environmental value trading by utilizing in-house brand AI-equipped ESSs and distributed solar power generation networks.
  • Developing next-generation batteries and promoting recycling-oriented businesses by reusing batteries for EVs.
  • Promoting renewable energy power sources, such as solar, biomass, and wind power.
Sustainable Aviation Fuel・Renewable Diesel Fuel
  • Selling sustainable aviation fuel (SAF) to airlines for the first time in Japan and promotion of renewable diesel.
Hydrogen and Ammonia
  • Promoting the establishment of a green hydrogen value chain in collaboration with Denmark-based Everfuel A/S.
  • Developing ammonia-fueled vessels and creating a proprietary operation model, developing a bunkering business, utilizing ammonia as an alternative fuel for power generation, and promoting manufacturing and marketing operations in Canada and elsewhere in order to build a value chain for clean ammonia.
Plastic Recycling
  • Developing plastic recycling businesses with leading partners boasting recycling technologies.
  • Product development using marine plastic waste as raw material.
Sustainable Coffee Beans and Vegetable Oil
  • Stably supplying sustainable products and third-party certified products to eliminate child labor and environmental damage.
  • Building raw material supply chains with established sustainability in production, distribution, and processing.
Production and Processing of Fruits and Vegetables・Waste Reduction
  • Reducing low-quality products and residues in the production, distribution, and processing of Dole products.
Sustainable Natural Rubber
  • Participate as a founding member in the global platform for sustainable natural rubber (GPSNR) to promote its production and use.
  • Developing a traceability system using blockchain, involving the entire value chain.
Secondhand Mobile Phone Distribution
  • Entering the secondhand mobile distribution business by taking advantage of market trends such as excessive supply of new mobile phones and increased environmental impact due to mobile phone replacement.
CVS Business (FamilyMart)
  • Improving operational efficiency and reducing food loss through supply chain reforms.
  • Promoting FamilyMart Environmental Vision 2050, including efforts to reduce plastic use and GHG emissions.

Transition Plans for Main Businesses Subject to Physical Risks

In agriculture and forestry businesses, we aim to expand sustainable operations by adopting cutting-edge technologies from a medium- to long-term perspective and promoting the following initiatives.

  • Increase per-unit harvest volume by selecting breeds that are viable in high-temperature climates and improvements to production methods.
  • Expand business into other regions projected to see growth in production volume.

Financial Strategy

The Division Company Management Committee (DMC) conducts annual reviews of business risks and opportunities, including those related to climate change. Each DMC examines business transition plans, and then drafts annual financial plans. The annual financial plans for each company are presented for approval to the HMC, the executive body, and the Board of Directors, the supervisory body, before final approval by the Board of Directors. This final approval is subject to a comprehensive analysis and deliberations from an ESG perspective, including matters related to climate change. In order to facilitate a financial strategy based on our transition plan, we have developed a financing plan that limits the use of funds to projects that contribute to the SDGs.

  1. SDGs Bond

    In March 2021, ITOCHU issued SDGs Bond (Sustainability Bond totaling US$500 million), which was allocated towards capital expenditures, manufacturing, R&D-related investments and procurement costs in climate-related subjects as well as R&D-related investments in procurement of certified food ingredients and costs of utilization of food residuals related to sustainable food systems like those indicated below:

    • Efforts to reduce greenhouse gas emissions: Renewable Energy (generation and storage)
    • Efforts to reduce greenhouse gas emissions in FamilyMart
    • Sustainable Food System: Expanding procurement of certified food ingredients and utilization of food residuals
  2. Green Loan

    In September 2023, ITOCHU entered into the green loan agreement with Sumitomo Mitsui Trust Bank, Limited. The green loan will be used for our qualified projects (renewable energy power generation projects, energy from waste projects, and projects for the circular economy).

    Reference: Sustainable Finance

We confirmed that implementing these types of transition plans and financial strategy will enable us to maintain resilient business operations, even in over the medium- and long-term, for Group businesses, products, and services. Beyond the scope of applicability to this scenario analysis, ITOCHU is engaged in diverse business activities in various regions. Those business activities are also impacted by climate change. However, at this point of time, we have determined that the impact on Group overall earnings caused by risks associated with each individual business activity would be limited.

To confirm the impact of climate change on overall Group business, we will continue to conduct analyses of both transition and physical risks. We will further identify and organize fields susceptible to significant impact and evaluate response policies based on an order of priority given to areas requiring a response.

Risk Management

As a Group engaged in global business operations, ITOCHU constantly monitors climate change policies in each country, the status of abnormal weather around the world, and the business risks associated with changes in average temperatures. In the analysis of risks for our entire Group, we manage climate change risks identified based on an analysis of information concerning climate change measures, including regulatory information and abnormal weather information, as one of the major risks (environmental and social risks) facing our company. Identified climate change risks are also examined and evaluated during our investment decision process. Each department in charge of risk management has established an organization for risk identification, evaluation, information management, and monitoring for the consolidated group.

Identification and Evaluation of Climate Change Risks

ITOCHU considers those that may have a significant impact on the financial position and results of operations of our group in the future as significant risks. We recognize risk management as an important management issue. Referencing the COSO-ERM framework, we outline our basic policy on risk management for ITOCHU and prepare the organizations and methods necessary for risk management.

Each Company and the Sustainability Management Division cooperate regularly to gather information to assess risk importance. This information includes trends in climate change policy and regulations, which mainly consists of existing and new regulations related to climate change in the countries in which we operate, climate change-related technology, and clean-tech business. We also gather information on global abnormal weather and average temperature increases. Importance is identified and assessed using specific indicators and from the perspective of ascertaining the substantive financial or strategic impact that climate risk may have on the Company. For example, for non-consolidated businesses, we identify an important risk as a risk that would cause a 10% change compared to previous fiscal year revenues, a 20% change in average net income for the most recent past five years, or a 30% change in net assets from the end of the previous year. For consolidated businesses, we would use a change of 10% from previous fiscal year revenues or a 3% change in total capital from the end of the previous year.

ITOCHU organizes the information we gather on climate change risks and opportunities into our Material Climate Change-related Risks and Opportunities (risk criteria), with analysis for both transition and physical risks. We use risk criteria to identify and assess climate change risks in the risk management process for each phase of business, including the start of a new business, existing businesses, handled products, supply chains, Group company business management, and business strategy reviews.

Climate change risks gathered during the risk assessment process are deliberated by the Sustainability Committee and other relevant committees to ensure we continuously review risk criteria and the risk identification process. During these deliberations, the relevant committees incorporate opinions received form the Sustainability Advisory Board, which promotes dialogue concerning sustainability between ITOCHU management and external stakeholders.

Integrating Climate Risk Management into the ITOCHU Group Risk Management System

Due to the nature of our broad-based operations, ITOCHU is subject to various risks, including market risks, credit risks, and investment risks. In addition to establishing various internal committees and designated responsible departments, we have created a risk management organizational structure and management methods necessary to address these risks. This organizational structure includes outlining management regulations, investment standards, risk limits, and transaction limits, as well as establishing structures for reporting and monitoring to enable integrated Group risk management.

Climate change risks are one of the major environmental and social risks subject to Group risk management. We incorporate this risk management into the assessment methods for each business phase shown in the table below, which can broadly cover our business activities as a general trading company including management of investment, trading products, logistics, Group companies, supply chain, business strategy, and portfolio, etc.

Climate-related Risk Management Procedures and Evaluation Methods for Each Business Phase

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Business Phase Evaluation Method
Business start
  • Environmental and social risk assessments including climate change risks for new investment project (45 cases for FYE 2024)
  • Shadow pricing for carbon tax costs, etc., and stress test (internal carbon pricing)
Business management
  • Environmental risk assessments for handled products (LCA evaluation for overall supply chain)
  • Group company environmental status survey (2, 3 companies per year)
  • Supply chain sustainability surveys (ITOCHU and consolidated subsidiaries)
  • Internal environmental audits based on ISO14001 (ITOCHU Corporation, 3 applicable Group companies)
  • Scope1/2/3 aggregation and year-on-year assessment
  • Internal carbon pricing impact assessment (e.g., US$205/t-CO2 in the case of power generation project (US))
Review business strategy Consider business strategy, asset replacement

If risks and opportunities are identified via the evaluation methods at each business phase, we use the tool shown below in Risk Assessment & Management Activities to assess the impact of risks and opportunities on business. Risk Assessment & Management Activities include quantitative evaluations such as scenario analyses and stress tests, and qualitative evaluations such as assessments of compliance with investment policy and GHG reduction targets. Quantitative information for risks and opportunities not related to climate change is added to climate change risk and opportunity information that has been quantitatively assessed. This information is then used to analyze the level of contributions to earnings.

Risk Assessment & Management Activities

The TCFD scenario analysis identified the following risk and opportunity factors, as well as assessment and management activities.

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Managed Factor Risk and Opportunity Factors (example) Evaluation & Management Activities (example)
Market
  • Decreased demand due to adoption of a carbon tax on energy (crude oil, gas, LNG) development projects
  • Increased LNG demand and increased demand for renewables and other new energy
  • Scenario analysis
  • Policy on climate change in relation to investment decisions
  • Conformity to ITOCHU GHG emissions reduction targets
  • Compliance with policy on investment and growth in new energy solutions
  • Earnings contributions
Regulations
  • Carbon tax on international transactions for energy and fuel
  • Adopt volume reduction requirements and emissions trading scheme (cap and trade scheme) in country of operation
  • Increased thermal power generation costs at power plants due to carbon tax and CCUS requirements
  • Scenario analysis
  • Portfolio stress test
  • Regulatory monitoring
  • Carbon prices
  • Conformity to ITOCHU GHG emissions reduction targets
Technology
  • Mobility electrification
  • Renewable energy and storage battery/lithium battery technology
  • CCUS, hydrogen/ammonia and other low carbon technologies
  • Digitized big data
  • Monitoring technological trends related to risk factors
  • Increased investment in new energy solutions, CCUS, and new low-carbon technologies
  • Digitization roadmap
Physical risks
  • Chronic effects (e.g., sea level rise, water scarcity increase)
  • Acute effects (e.g., more frequent extreme weather events)
  • Regular updates to meteorological and oceanographic data for new business development / existing business risk assessments
  • Updates to physical impact data on food products
Reputation
  • Maintaining company appeal in terms of personnel hiring
  • Investor awareness of climate change countermeasures
  • Climate-related lawsuits
  • Impact on acquiring licenses needed for business
  • Governance for climate change issues
  • Ensuring transparency of performance disclosure
  • Communication with stakeholders (investors, initiatives, NGOs, business affiliates)

Refer to: Our risk management, including climate change, related to Company operations

Climate Change Risk Management Organization

Business Start Phase

ITOCHU has established a multilayered decision-making process that seeks to realize swift decision-making by delegating discretionary power to each internal company, while pursuing investment returns and controlling investment risks. Depending on the size and terms of a project, a review is conducted at the internal company level or by the Investment Consultative Committee and the HMC (Headquarters Management Committee).

As a member of the HMC and the Investment Consultative Committee, the CAO, who chairs the Sustainability Committee, participates in the screening of projects that exceed the authority of the division company president. This system reflects the content of deliberations at the specific stage of climate change risk and at the assessment stage of climate change risk for company-wide risk management.

Refer to: Our business investment management

Business Management Phase

ITOCHU evaluates and manages risks such as climate change, natural disasters, and ESG investment identified in the business start stage and the business management stage through collaboration between responsible committees such as the Sustainability Committee and Internal Control Committee and a system of periodic monitoring and review of Group companies. Environmental and social risks, including climate change, are summarized as one of the major risks subject to centralized management. Each year, the Sustainability Management Division serves as the executive unit in charge of organizing this information and issuing reports to the Internal Control Committee along with information on the other major risks to integrate the risk information into company-wide risk management system. The Sustainability Committee also deliberates on policies and measures related to climate change risk and how to promote the risk management system, etc. The director serving as chair of the Sustainability Committee reports on the content of deliberations to the Board of Directors approximately twice per year.

As part of our specific climate-related risk management procedures, we compile the results of Scope1/2 and Scope3 for each of 8 Division Companies every year. The results are compiled in a form that allows for an assessment over time, and are reported to the Sustainability Committee and the Board of Directors after being approved by each Division Company. This process enables the Board of Directors to oversee progress toward achieving GHG emissions reduction targets from a medium- to long-term perspective, and is also used to review new business strategies.

In order to achieve our GHG emissions reduction targets, we promote climate change initiatives through dialogue with suppliers, sales clients, contractors, and business partners in its value chain.

Review Business Strategy

Reviews of business strategy related to climate change are conducted by the Division Company Management Committee (DMC), and then by the HMC via the Investment Consultative Committee on which the CAO, who serves as the chair of the Sustainability Committee, also participates as a key member. Final decisions are made following deliberation by the Board of Directors. Scenario analysis based on TCFD recommendations is also used as a tool when considering business strategies and asset replacement. In our analysis, we analyze short-term, medium-term, and long-term climate-related risks and opportunities once a year for their impact on organization business, strategy, and financial planning.

Metrics and Targets and Action Plan

ITOCHU has set the following targets for GHG emissions, electricity usage, and clean-tech business as part of our response to climate change risks and opportunities. When setting these metrics and targets, we reference, among others, the Paris Agreement, Japan NDC and IEA materials, which are highly recognized internationally and can cover a wide range of business areas.

GHG Emissions Reduction Targets

  • Metrics (aggregation range): Scope 1/2/3 (consolidated subsidiaries), fossil fuel business and interests (consolidated subsidiaries, equity, general investments)
  • Targets:
    • Achieve net zero GHG emissions by 2050.
    • Achieve 75% reduction from 2018 levels by 2040, aim for “offset zero”* through aggressive promotion of businesses with avoided emissions.
      • Offset zero: When avoided emissions exceed company GHG emissions
    • Achieve 40% reduction from 2018 levels by 2030.

Refer to: Trends in our GHG emissions

Scope1/2 Short-term Reduction Targets

ITOCHU has set a target of 30% reduction in power consumption at Japanese Bases of ITOCHU Corporation by FYE 2023 compared to the FYE 2011, and has been working to save electricity by upgrading facilities, such as by switching to LED lights. As a result, we achieved a 51.8% reduction in FYE 2023 compared to FYE 2011, far exceeding the initial target. In light of the fact that considerable progress has already been made in reducing Scope1/2 emissions, including electricity consumption, we have set a new short-term target of reducing Scope1/2 emissions at our Japanese Bases. We have registered such target with the GX League, a group of companies challenging the green transformation led by Japan’s Ministry of Economy, Trade and Industry in collaboration with the Japanese government and academia. We also participate in the Carbon Credit Market of Tokyo Stock Exchange, which will be used in the GX League, and contribute to the decarbonization of our own and other companies.

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(Unit: t-CO2e)

FYE 2022
(Base Year)		 FYE 2024-2026
Total (Target)		 FYE 2026
(Target)
Scope1

77

223

74
Scope2

5,946

17,308

5,711
Scope1+2 Total

6,022

17,531

5,785
  • The scope of calculation is based on the “the Rules for Phase 1 in the GX-ETS” and does not match Scope1/2 for Japanese Bases of ITOCHU Corporation as a whole.

Clean-tech Business Metrics and Targets (Action Plans)

We set the following metrics and targets (Action Plans) in ITOCHU Clean-tech Business as one of the main metrics (benchmarks) for climate-related risks and opportunities.

  • In the power generation business, increase project development towards the goal of increasing our rate of renewable energy (equity interest basis) to over 20% by FYE 2031.
  • Build a next-generation fuel value chain based on hydrogen and ammonia.
  • Create distributed power supply platform using AI storage batteries boasting the No. 1 sales in Japan.
    (Aim for scope exceeding cumulative power storage of 2 GWh by FYE 2031.)

Refer to: Our clean-tech business

Action Plan

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Materiality SDGs Targets Impact Classification Issues to Address Business Area Commitment Specific Approach Performance Indicators Degree of Progress
Machinery Company
Address Climate Change (Contribute to a Decarbonized Society)
Climate Change Opportunities Taking countermeasures against climate change Overall power generation business We will develop power plants with a good balance between renewable energy power generation and conventional power generation, thereby contributing to the development of countries and regions in a sustainable manner that is optimized for each. Pursue opportunities to invest aggressively in renewable energy power generation through analyses of countries and regions. FYE 2031: Target to achieve a renewable energy ratio more than 20% (equity interest basis) and reflect this to the future strategy.
  • Tyr Energy Development Renewables, LLC (“TED”), established in 2022, is currently developing 26 assets, approximately 4 GW of solar power plants.
  • NAES Corporation, another wholly-owned subsidiary of ITOCHU and the world’s largest independent provider of O&M services for power plants, extends its expertise to asset management and maintenance services in the renewable energy sector. Currently, NAES oversees approximately 1,400 solar power plants with a capacity of 2GW, as well as wind power plants with a capacity of 1.1GW.
  • In June 2023, we launched a fund dedicated to investing in renewable energy generation assets across North America.
  • The renewable energy ratio, calculated on an equity interest basis, stands at 17.1% as of March 2024.
  • Address Climate Change (Contribute to a Decarbonized Society)
  • Evolve Businesses through Technological Innovation
  • Climate Change Opportunities
  • Innovation
  • Taking countermeasures against climate change
  • Next-generation business development
 Ships/Shipping field We will contribute to decarbonization in the shipping and maritime sectors through the promotion of an “integrated project” encompassing the development, ownership and operation of ammonia-fueled ships, the development of fuel supply chains, and fuel procurement. In addition to the joint development of ammonia-fueled vessels with the Japanese consortium and the ownership and operation of these vessels, ITOCHU will take the lead in the development of supply chain of an ammonia bunkering and fuel procurement, aiming for early materialization of the pilot project. After 2027, promote the spread of ammonia-fueled vessels and the establishment of a supply chains to contribute to the decarbonization of the maritime industry.
  • To contribute to decarbonization in the shipping sector, we are developing an “integrated project” aimed at: (i) developing ammonia-fueled vessels, (ii) owning and operating ammonia-fueled vessels, (iii) establishing fuel supply chains, and (iv) procuring/producing clean ammonia.
  • As a pilot initiative, discussions are underway with stakeholders for the development of the first ammonia-fueled vessels, initially targeting large bulk carriers with a projected completion date of 2027. Concurrently, discussions have commenced for container ships and car carriers to adopt ammonia as their primary fuel.
  • In addition, we are actively progressing the development of ammonia bunkering facilities in Singapore, followed by Algeciras in Spain and the Suez Canal in Egypt.
  • In March 2024, we secured support from the Green Innovation Fund for the development of various technologies related to ammonia handling, in collaboration with Fuji Electronic.
  • We have established an international framework for conducting a “Joint Study” on the risk assessment of ammonia fuel and safety standards, and have also formed a “Container Ship Joint Study.” These frameworks were concluded as of March 2024 to transition into the commercialization phase.
  • Address Climate Change (Contribute to a Decarbonized Society)
  • Evolve Businesses through Technological Innovation
  • Climate Change Opportunities
  • Innovation
  • Taking countermeasures against climate change
  • Next-generation business development
 Sales of passenger cars and commercial vehicles We will achieve the eco-friendly mobility society by strengthening businesses of electric vehicles (EVs), hybrid vehicles (HVs), vehicles with a reduced environmental impact, and those related. Contribute to spread of eco-friendly vehicles by increasing business of eco-friendly and high-efficiency products, such as EVs, HVs, vehicles with a reduced environmental impact, and related parts. Expand sales of eco-friendly products in response to the expanded lineup of EVs, HVs, vehicles with a reduced environmental impact, and similar vehicles from automakers as our business partners.
  • As a partner in “EVision,” Isuzu’s total solution program for EVs, we have expanded our efforts to promote commercial EVs and have actively provided consultations to users encountering challenges related to EV introduction.
  • In November 2022, we commenced demonstration and operations with a prototype developed and manufactured as part of the “Combination of developing battery-exchangeable EVs and utilizing renewable energy Sector coupling demonstration project,” commissioned by the Ministry of the Environment. By the end of December 2023, we had achieved a cumulative delivery distance exceeding 20,000km.
Address Climate Change (Contribute to a Decarbonized Society)
  • Water Resources
  • Pollution Prevention and Resource Recycling
 Improving water and sanitation infrastructures Water and environmental projects We will contribute to improve the sanitary conditions, the development of economic activities, and the protection of the global environment through the appropriate treatment and effective use of water and waste. Expand water and environment projects to promote the appropriate use and treatment of water and the effective utilization of resources, and reduce the burden on the environment. Expand the investment portfolio in the water and environment field which contribute to social demands for the environment and the promotion of a circular economy.

Water Field

  • We are promoting seawater desalination business in Australia and Oman.

Environmental Field

  • UK: Our operations encompass four municipal solid waste incineration and power generation facilities (waste-to-energy plants), processing 1.3 million tons of waste annually. This accounts for 10% of the UK’s waste incineration market and provides electricity for 160,000 British households.
  • Serbia: We have initiated an integrated waste management business, including an Energy-from-Waste (EfW) project in the City of Belgrade. The project anticipates a reduction of approximately 210,000 tons of greenhouse gas emissions and has received Certification of Carbon Credit from the Gold Standard.
  • UAE: The first Energy-from-Waste (EfW) project in Dubai, we are advancing the construction of the world’s largest EfW plants. These facilities are designed to process half of the Dubai’s municipal solid waste annually (1.9 million tons).
  • Saudi Arabia: We are actively engaged in integrated hazardous waste management services in Jubail Industrial City.
Metals & Minerals Company
  • Address Climate Change (Contribute to a Decarbonized Society)
  • Evolve Businesses through Technological Innovation
  • Climate Change Opportunities
  • Capital Introduction
  • Innovation
 Taking countermeasures against climate change
  • Resource recycling business
  • Mining business
  • Environmental business
  • Materials-related business
  • We will realize stable resource supply as our social mission and responsibility while fully considering its environmental impact.
  • We will contribute to climate change issues through businesses that help to reduce greenhouse gases (e.g., lighter-weight vehicles and electric vehicles (EVs)) and the stable supply of essential materials.
  • Take the lead in developing recycling-orientated business.
  • Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g. steel and power).
  • Promote businesses to contribute to the stable supply of nickel, PGM and other materials necessary in the manufacture and supply of hydrogen, green materials and energy, and storage batteries.
  • Continue to be involved in the development of technologies that contribute to the reduction of greenhouse gas emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
  • Promote initiatives to completely withdraw from thermal coal mine interests while continuing to realize stable resource supply as our social mission and responsibility through trading in regards to our coal business.
  • Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).
  • Promote recycling-orientated business.
  • Promote initiatives for the social implementation of hydrogen and ammonia, etc. as resources and raw materials that contribute to the decarbonization in client industries (e.g., steel and power).
  • Promote examination toward technological development and commercialization to contribute to a reduction in greenhouse gas emissions, including hydrogen, green material and energy production, and carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
  • Strive to withdraw from thermal coal mine interests.
  • Realize initiatives in businesses that contribute to developing lighter-weight vehicles and shifting to EVs (e.g., aluminum and copper).
  • Together with JFE Steel, Emirates Steel Arkan, and others, we have promoted detailed feasibility studies for the establishment of a supply chain of ferrous raw material for green ironmaking with low carbon emission, which contribute to the decarbonization of the steel industry.
  • We are contributing to the effective utilization of limited resources and the supply of environmental materials by promoting 3R+W (reduce / reuse / recycle + waste management). Specifically, we are steadily promoting initiatives in venous industries. This includes the reuse and recycling of store facilities and fixtures, the expansion and increase in sophistication of metal scrap and waste treatment through the use of a nationwide network of recycling companies, and strengthening of cooperation with the TRE HOLDINGS CORPORATION general recycling company we invested in FYE 2020.
  • We agreed with Nel ASA (Norway), who is the world’s largest manufacturer of electrolysers that are essential for green hydrogen production, to create a strategic partnership in the hydrogen industry. We and Nel are jointly exploring hydrogen business opportunities.
  • We have invested in Everfuel (Denmark), who conducts the design, EPC, and operation of green hydrogen production facilities, distribution assets, and operation of hydrogen stations by using water electrolysis equipment, as well as the sale of hydrogen. In collaboration with Everfuel, we are promoting the construction of a green hydrogen value chain for local production - consumption in Europe.
  • We are promoting the Platreef project and others in the PGM (platinum group metals)/nickel business where demand is expected to grow significantly due to the worldwide spread of electric vehicles and fuel cell vehicles, and also expanding trade activities of such materials.
  • We continue to conduct a commercialization survey of a by-product hydrogen project in northern Kyushu with partners for the social implementation of hydrogen.
  • We have an investment into Australia-based MCi, who possesses mineral carbonation technologies. We are promoting the technology for the Japanese market. In July 2022, we signed an MOU with TAISEI CORPORATION to verify the use of this calcium carbonate as raw materials for concrete.
  • Together with HIF Global, JFE Steel, and Mitsui O.S.K. Lines, Ltd., we agreed to jointly conduct a wide-ranging feasibility study covering on establishment of a comprehensive supply chain for synthetic fuel (e-fuel), to transport CO2 from Japan to Australia to produce e-fuel.
  • Agreement was signed with KOKO Networks, a Climate Technology Company Operating in Kenya, to support the generation of high quality carbon credits.
  • In order to expand emissions credits trading, we formed a business partnership with CF Partners, a UK-based company engaging in the sale of emissions credits in Europe.
  • We decided to withdraw from thermal coal mine interests with a perspective of strengthening contribution and initiatives to SDGs. We already divested our Drummond mine interests in Colombia that had accounted for the majority of the ITOCHU’s thermal coal interests and also divested Ravensworth North coal mine interests in Australia producing both thermal and coking coal.
  • Steadily promoted aluminum trade business that contributes to automobile weight reduction and electrification. We have traded approx. 500,000 tons in FYE 2024, and promoted sales of environmentally friendly raw materials for aluminum.
Energy & Chemicals Company
Address Climate Change (Contribute to a Decarbonized Society)
  • Transition Risk
  • Stable Supply of Resources
 Stably supplying energy taking into account climate change and the environment Oil/gas interests and liquefied natural gas (LNG) projects We will produce resources (transition fuels) taking into account a reduction in greenhouse gases. We will provide a stable supply of energy to contribute to the development of industry and the construction of infrastructure. Work on resource development projects in collaboration with superior partners who have advanced technical capabilities and abundant experience. Pursue opportunities to participate in gas projects with a relatively low environmental burden in fossil fuels and as raw material source of the low-carbon fuel while keeping in mind the stable supply of energy in the transition phase toward the realization of a sustainable society. To realize a sustainable society through the stable supply of energy, we continue to discuss with competent partners ways to participate in new upstream projects and collaborate on decarbonization as raw materials for a transition fuel.
Address Climate Change (Contribute to a Decarbonized Society)
Climate Change Opportunities Energy use that takes into consideration local communities and the environment District heating and cooling We will promote initiatives toward environmentally friendly regional energy use. Communicate appropriately with neighboring stakeholders in the Jingu Gaien district. Maintain the stable operations of district heating and cooling in the Jingu Gaien district and promote the district heating and cooling to neighboring areas. We are continuing discussions with the relevant stakeholders to spread and promote district heating and cooling to neighboring areas.
Address Climate Change (Contribute to a Decarbonized Society)
Climate Change Opportunities Efforts to optimally and continuously supply renewable energy
  • Energy Storage System
  • Power & Environmental Solution
  • We will continue to stably supply the Energy Storage System that are the key to the efficient and optimal utilization of renewable energy.
  • We will aim to strengthen our Energy Storage System business chain and establish a circular model through the battery recycling business in particular.
 We will continue to sell Energy Storage System equipped with optimal charging/discharging software based on machine learning (AI) and we will establish a recycling and reuse business with repurposed batteries from EV.
  • Number of storage batteries sold.
  • Use of recycled and reused batteries.
  • Sold a cumulative total of approximately 60,000 units (588 MWh) of energy storage systems, as of the end of March, 2024.
  • Continuing to promote recycling and traceability demonstrations with partners in Japan and overseas, with the aim of building a high-value-added supply chain through the implementation of recycling chains and traceability.
  • Working on the structuring battery storage facilities (3 projects) and the sale of large storage batteries (4 projects). Have sold a total of 100MWh of grid storage batteries, including those currently under construction.
  • In the process of establishing Japan’s first fund dedicated to grid storage batteries in cooperation with the Tokyo Metropolitan Government.
  • Address Climate Change (Contribute to a Decarbonized Society)
  • Ensure Stable Procurement and Supply
  • Stable Supply of Resources
  • Capital Introduction
 Working on new fuel initiatives toward the realization of a carbon-neutral society / recycling-orientated low-carbon society
  • Production and supply of hydrogen and fuel ammonia, and procurement and supply of renewable fuels
  • Working on new energy initiatives
 We will aim to build a production and supply structure for new fuels to contribute to the reduction of greenhouse gases on a life cycle assessment basis toward the realization of a sustainable society and to improve energy efficiency. Work on hydrogen and ammonia which are expected to serve as next-generation energies and fuels that do not emit carbon dioxide when burned. Also work on renewable fuels (derived from waste oils) to contribute to the reduction of greenhouses gases emitted from aircraft and large vehicles that are difficult to convert from internal combustion engines. Build a new fuel value chain to be able to realize production, efficient transportation and supply by utilizing collaboration with superior partners and our track record in development and trading.

Hydrogen and Ammonia

  • To realize a decarbonized society, we concluded a Memorandum of Cooperation (MOC) with Hive Hydrogen South Africa to collaborate in the field of green ammonia.

Renewable Diesel (RD) and Sustainable Aviation Fuel (SAF)

  • In 2022, ITOCHU was selected by the Civil Aviation Bureau (Ministry of Land, Infrastructure, Transport and Tourism) to carry out an “Imported Neat SAF Model Demonstration Project”. ITOCHU established a domestic blending supply chain by importing neat SAF from Neste OYJ in cooperation with a partner company. Following successful SAF supply arrangements for Haneda and Narita airports, ITOCHU has begun supplying SAF to Central Japan International Airport.
  • ITOCHU and its partners were selected for the “Program Supporting the Commercialization of Biofuel Utilization”, a Tokyo Metropolitan Government public procurement. The members of the association aim to increase biofuel use by using RD in land transport vehicles and airport work vehicles.

New Energy

  • ITOCHU will acquire shares of Blue Laser Fusion Inc. (BLF), a fusion energy-related startup, through a third-party allotment, while simultaneously concluding a strategic and business alliance agreement with BLF for fusion energy and other related businesses in which laser technology developed by BLF will be used.
Address Climate Change (Contribute to a Decarbonized Society)
Capital Introduction Working on initiatives in carbon dioxide capture and storage (CCS) business toward the realization of a carbon-neutral society and inclusive and sustainable economic growth Building of CO2 capture chains using CCS We will aim to build CO2 capture chains to contribute to the reduction of greenhouse gases toward the realization of a sustainable society. Refine CO2 storage technologies - an application of petroleum development technologies - and enhance access to CO2 capture chains (e.g., collection and transportation) to link them to CO2 storage technologies. Build a CO2 transportation and storage business model by uncovering CO2 capture needs at places where CO2 is emitted in client industries across our companies. Together with ITOCHU Oil Exploration Co., Ltd., we joined the Geological Carbon Dioxide Storage Technology Research Association, which researches and develops technologies for underground sequestration of carbon dioxide. In FYE 2024, the Tohoku Region West Coast CCS initiative was publicly selected by the Japan Organization for Metals and Energy Security to study the feasibility of a Japanese Advanced CCS Project. We are also studying with our consortium partners the feasibility of a CCS value chain project using ship transportation.
Address Climate Change (Contribute to a Decarbonized Society)
Climate Change Opportunities Working on initiatives to optimally and continually supply renewable energy Renewable energy independent power producers (IPPs) / renewable energy-related materials procurement / dispersed power source initiatives
  • We will realize a stable supply of renewable energies through the development, ownership and operation of renewable energy power plants (solar power, biomass and wind power).
  • We will stimulate renewable energy power generation inside and outside of Japan through renewable energy-related materials procurement.
  • We will realize a world where renewable energy is commonplace by spreading solar power generation as an independent power source that does not rely on the power gird through the deployment of solar power dispersed power sources.
 Expand the scale of our renewable energy assets with the stable operation and new development of renewable energy plants and establish dispersed power sources in Japan with a focus on the conversion to virtual power plants (VPP).
  • Scale of our renewable energy assets
  • Scale of our dispersed power sources
  • We have expanded the third party-owned distributed power supply using renewable energy, by operating approximately 850 on-site photovoltaic power plants(combined output is appx 200,000kW) across Japan through i Grid Solutions Co., Ltd.
  • We have expanded the third party-owned distributed power supply using renewable energy, by operating approximately 1,200 off-site photovoltaic power plants(combined output is appx 100,000kW) across Japan through Clean Energy Connect, Inc.
Food Company
Address Climate Change (Contribute to a Decarbonized Society)
GHG Emissions Taking countermeasures against climate change Fresh food field We will examine and promote measures that contribute to tackling climate change. Dole will utilize green energy in our processed food business.
  • Situation of operation of biogas plant at Dole Philippines.
  • Status of introduction of other clean energy sources, etc.
  • Result of utilization of processed pineapple residue: 155,558MT in FYE 2024.
  • Result of GHG reductions from utilization of clean energy: 97,445t-CO2e in FYE 2024.
General Products & Realty Company
  • Address Climate Change (Contribute to a Decarbonized Society)
  • Ensure Stable Procurement and Supply
Forest Using sustainable forest resources
  • Pulp
  • Woodchips
  • Wood products & materials
 We deal in sustainable forest resources to reduce the impact on the environment and prevent the increase of greenhouse gases. We handle certified or high-level management confirmed materials. Ensure a 100% handling ratio of certified or high-level management confirmed materials. In FYE 2024, 100% of our Pulp, Woodchips and Wood Priducts & Materials transactions were handled as certified material or were intensively managed.
  • Address Climate Change (Contribute to a Decarbonized Society)
  • Ensure Stable Procurement and Supply
  • Capital Introduction
  • Pollution Prevention and Resource Recycling
 Taking countermeasures against climate change Cement substitute material such as slag We plan to expand the use of sustainable byproducts (slag) as a substitute material for the cement which is vital for construction and civil engineering. Establish continuous, stable business between Steelworks as the supplier of slag and users. Consider investment, participation, etc. in the slag business and focus initiatives on creating demand, especially in developing countries, with the aim of establishing continuous, stable business.
  • We are currently in discussions concerning investment and participation in the slag business.
  • In FYE 2024, global slag transactions amounted to 1.75 million tons.

Reflecting Climate Change Issues in the Remuneration System

To enhance the link between management strategy and executive compensation structure, ITOCHU has incorporated climate change and ESG/SDGs response into the evaluation of each executive since FYE 2021. Director remuneration is determined according to factors that include degree of contribution to ITOCHU Corporation, including addressing climate change, ESG and SDGs, based on a standard amount for each position. In addition, Group ESG Officers and Group ESG Managers in each organization set individual annual goals for business creation and operational improvement related to contribution to the SDGs and ESG promotion, and their achievements are also evaluated as individual performance.

Refer to: Corporate Officer Remuneration System

Initiatives

Efforts to Withdraw from Interests in Thermal Coal

In the future coal related businesses will likely be subject to carbon tax. Also, countries will introduce energy diversification policies, which will lead to the promotion of renewable energy and energy saving technology. The changing and more competitive prices of renewable energy risks decreased profits from coal-related businesses, causing these assets to become impaired or fixed.

Based on this risk analysis, in 2019 ITOCHU announced that we will not develop a new coal-fired power plants or acquire thermal coal mine businesses. In 2019, we sold all interests in the Rolleston thermal mine. In 2021, we declared through our Medium-term Management Plan that we will lead the industry in realizing a decarbonized society. As part of this initiative, we sold off interests in Drummond and Ravensworth North.

We continue to focus on expanding our business to contribute to the reduction of GHG emissions while responding to the societal demands for stable energy supply to domestic and overseas consumers.

Reducing the Environmental Burden of Logistics Operations

Basic Concept

ITOCHU aims to be carbon-neutral by 2050, and will promote the adoption of logistics methods and initiatives that have a low environmental burden with respect to outsourced logistics. By collecting basic data on logistics, we will investigate, analyze, and verify businesses with low transportation efficiency, and shift to initiatives with the lower environmental burden to the extent possible. We will also work on the development and diffusion of transportation modes powered by clean energy as a business, and contribute to the reduction of logistics-related GHG emissions.

Plan for Energy Saving in Logistics

As a specified consigner under the "Act on Rationalizing Energy Use", we annually submit a "medium- to long-term plan" to the government, which includes the following company-wide plan for the rationalizing energy use.

Qualitative Target

  • We conduct status surveys focusing on mode of transportation with low efficiency that have room for improvement, and select appropriate mode of transportation and appropriate transportation routes, etc, for improving loading efficiency and promoting reduction of specific energy consumption (SEC).
  • In order to achieve the above target, we strengthen cooperation with freight forwarders.

Quantitative Target

GHG emissions generated by outsourced logistics for which ITOCHU is the consignor are as follows. Through our efforts to reduce the environmental loads, we aim to reduce the average SEC by 1% or more per year over a five-year period, which is a non-binding target under Act on Rationalizing Energy Use.

1,000t-CO2 2019 2020 2021 2022 2023 5-year average rate of change in SEC
Logistics-related GHG emissions
(1,000t-CO2e)		 13 12 10 12 10
SEC (crude oil equivalent kl/1,000t-kｍ) 0.020 0.021 0.020 0.019 0.020
year-on-year 97.6% 107.0% 93.0% 94.0% 107.2% 100.1%

Specific Initiatives

  • Promoting efficient transportation route setting and improved loading methods in cooperation with logistics providers and suppliers to optimize logistics at the time of order receipt and delivery.
  • Improvement of loading rate by devising product shape and packaging.
  • Selecting appropriate types of vehicles according to transportation volume (use of large vehicles and mixed loading shipment whenever possible).
  • Conversion of long-distance truck transportation to rail transportation.
  • Planning and promoting of joint delivery business in local areas.
  • Providing EV truck users with charging solutions and leasing services that take into account battery degradation forecasts.
  • Promoting of ammonia fueled ships development project.

Full Switchover to Real CO2-free Electricity at Tokyo Head Office

ITOCHU is sourcing its real CO2-free electricity, together with a Non-Fossil Fuel Energy Certificate showing the environmental value of not emitting CO2, to the Tokyo Head Office since January 2020. The Non-Fossil Fuel Energy Certificate includes the tracking information (information about type of energy sources and power plant location) of Maebashi Biomass Power Plant (Maebashi, Gunma Prefecture), which is operated by a subsidiary of Kandenko Co., Ltd. This initiative can also be used to prove compliance with “RE100,” a global initiative of businesses committed to 100% renewable electricity, in response to the global trend towards decarbonization.

Refer to: Press release regarding full switchover to real CO2-free electricity at Tokyo Head Office

Initiatives for the Tokyo Metropolitan Government Program to Prevent Global Warming

ITOCHU submitted a plan to the Tokyo Metropolitan Government to reduce the CO2 emissions in our Tokyo Headquarters by 25% from the reference value (average value from FYE 2003 to FYE 2005) over five years from FYE 2021 to FYE 2025 based on the Ordinance on Environmental Preservation. Our energy consumption CO2 emission in FYE 2023 was 5,723t-CO2. This is an approximately 46% reduction compared to the reference value.

The document we have submitted to the Tokyo Metropolitan Government is as follows.

  • In addition to the Tokyo Headquarters, the adjacent commercial facility of Itochu Garden is also subject to the Greenhouse Gas Emission Reduction Plans submitted to the Tokyo Metropolitan Government.

Collaboration with Outside Initiatives

Activities Through Business and Industry Groups

We are participating in the Global Environment Subcommittee of the Committee on Environment and Safety — an environment and energy related committee of the Japan Business Federation (Keidanren). We are working to realize an environmental policy compatible with the economy (e.g., through promotion of voluntary action plans, and measures for global warming, waste and recycling and environmental risks). We are also participating as a committee member in the Environment Working Group under the Sustainability Promotion Committee of the Japan Foreign Trade Council (JFTC), a nation-wide association of Japanese trading firms. We are striving to build a low-carbon society, construct a recycling-orientated society, and to support environmental related laws and regulations. We continue to support the JFTC’s FYE 2031 Reduction Targets for Domestic Business Activities and Long-term Vision for Climate Change Measures, which are consistent with our policies and goals.

When the industry and trade associations in which we participate decide on the new directions of climate change, etc., we will express our opinions in line with the ITOCHU Group Sustainability Policy in the decision-making processes. We participate in meetings of our industry associations to discuss their policies, and make proposals from the drafting stage, taking into account not only our own thinking but also the thinking of investors, customers, and the international community. In the event that the policies of such organizations become significantly weaker than or contradict from our policies, we will strive to align them with our policies. We will report any new policies of various industry associations to the head of our relevant industry-related departments or functional departments and obtain their approval. Furthermore, if those new policies may have gap between our company-wide policies, we report to the CAO, who chairs our Sustainability Committee, and the Sustainability Committee and other committees decide to review our company policies in line with new policies of industry associations.

FYE 2031 Reduction Targets for Domestic Business Activities (Trading Industry)

  • In FYE 2031, we will strive to reduce unit CO2 Emissions (CO2 Emissions per floor area for the entire company) by 60% from FYE 2014 level. (Reestablished April 2024)

Long-term Vision for Climate Change Measures of the Japan Foreign Trade Council

To create a carbon-neutral society, the JFTC aims to effectively utilize its links with other industries and organizations, cooperate in implementing their long-term visions, and contribute to achieving the long-term goals for 2050 set out in the Paris Agreement. Based on this vision, JFTC member companies will position the investigation and implementation of measures to mitigate and adapt to climate change as key business issues and strive to generate new businesses and solutions.

We have flexibly evolved our businesses according to changing times and diverse needs. Shosha (trading firms), which operate worldwide and conduct business in cooperation with various players in a wide range of industries, are able to fully exercise their capabilities in contributing to solutions for the global challenge of climate change.

Refer to: Long-term Vision for Climate Change MeasuresPDF file

Participation in TCFD Consortium

Refer to: Participation in Initiatives

Participation in CDP (Climate Change)

Refer to: Participation in Initiatives

Participation in the GX League

Refer to: Participation in Initiatives

Participation in Japan Climate Initiative (JCI)

Refer to: Participation in Initiatives