Climate Change

Action Plan

Materiality SDGs Targets Issues to Address Business Area Commitment Specific Approach Performance Indicators Degree of Progress
Machinery Company
Address climate change (contribute to realization of low-carbon society)
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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. We achieved a renewable energy rate of 12.5% through capital alliances with Winch Energy, which is a company in the U.K. that is involved in small-scale solar power generation and distribution systems in non-electrified areas such as Africa, and VPP Japan, which is a company involved in the solar distribution power business in Japan.
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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. 1) We have been participating in a small electric truck demonstration experiment since January 2019 in Japan.
2) We are deepening efforts with two companies into which we invested in FYE 2019 in China where electric vehicles are spreading rapidly - Dishangtie Car Rental, an electric commercial vehicle rental and maintenance service, and Zhicheauto Technology (Singulato Motors), an emerging electric vehicle manufacture.
3) We have invested in a ride sharing service called Via (2019). This is a convenient and cost-effective means of transportation. At the same time, it also contributes to alleviating urban congestion and reducing CO2 emissions.
Metals & Minerals Company
Address climate change (contribute to realization of low-carbon society)
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Taking countermeasures against climate change
  • Mining business
  • Environmental business
  • Material-related business
  • We will realize stable energy supply as our social mission and responsibility while fully considering its environmental impact.
  • We will contribute to reducing greenhouse gases through businesses related to lighter-weight vehicles and Electric Vehicles (EVs).
  • Continue to be involved in the development of technologies that contribute to the reduction of greenhouse gases emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
  • Aim to develop an appropriate portfolio of coal assets by fully considering its environmental impact.
  • Strengthen initiatives in businesses that contribute to the development of lighter-weight vehicles and shift to EVs (aluminum, copper, and other businesses).
  • Contribution to the development of a low-carbon society by committing to technologies that help reduce greenhouse gases emissions.
  • Development of an optimal asset portfolio by fully considering social requirements, including those related to the shift to a low-carbon society.
  • Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs.
  • We are working to start an overseas demonstration project to culture Euglena together with euglena Co., Ltd. This project will help promote Carbon dioxide Capture and Utilization (CCU) technologies.
  • This project has potential to be applied over existing thermal power plants and manufacturing plants that emit carbon dioxide and is expected to be rolled out to a wide range of industries.
  • We have properly reviewed our asset portfolio to see if it is duly in line with our policy announced in February 2019 (1) not to acquire any new thermal coal mining interest and (2) regarding the existing thermal coal mining business, we will continue to review it and contribute to the development of a sustainable society while responding to the social demands of stable supply of energy to domestic and overseas customers.
  • As a result the review, following on from the sale of our interests in the Rolleston thermal coal mine in the previous fiscal year, we have concluded this year an agreement for acquiring the interests in a new coking coal mine (Longview coking coal mine) in December 2019.
  • The amount of transactions for aluminum castings/die-cast materials for vehicles has increased by 10% in FYE 2020 over FYE 2019, contributing to the development of light-weight vehicles.
Energy & Chemicals Company
Address climate change (contribute to realization of low-carbon society)
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Taking countermeasures against climate change Oil & Gas LNG (Liquefied Natural Gas) Projects Development and production of natural resources with consideration in the reduction of greenhouse gases. Partnering with experienced operators with high technical strength in the development and production of natural resources. Pursuing opportunities to take part in LNG projects (i.e. LNG or natural gas emits less greenhouse gases than the other fossil fuels). We are holding concrete discussions with regards to participation in new LNG projects.
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Efforts to optimally and continuously supply renewable energy Storage battery related power and environmental solutions
  • We will continue to stably supply the storage batteries that are the key to the efficient and optimal utilization of renewable energy.
  • We will aim to strengthen our storage battery business chain and establish a circular model through the battery recycling business in particular.
We will continue to sell storage batteries 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
* Because of new commitment, review will be conducted from the next fiscal year.
Food Company
Address climate change (contribute to realization of low-carbon society)
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Taking countermeasures against climate change Fresh food field We will examine and promote measures that contribute to tackling climate change. We will utilize green energy in our processed food business. Utilization as a source of renewable energy for processed food manufacturing plants by generating biogas power using pineapple leftovers generated in the manufacturing process of the Dole processed food business. We are currently building biogas power plants at two plants in the Philippines. These are scheduled to be completed in the first half of FYE 2021.
General Products & Realty Company
Address climate change (contribute to realization of low-carbon society)
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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 efforts on creating demand, especially in developing countries, with the aim of establishing continuous, stable business.
  • We expect a 65% increase year-on-year in the amount we handle to developing countries.
  • We are currently in discussions concerning investment and participation in the slag business.

Policy and Basic Concept

Climate change is one of the most pressing global issues today. Lack of urgency and commitment to addressing climate change concerns can potentially threaten not only the earth's ecosystems, but also the survival of humankind . Given the global nature of our operations, it is a top management priority for us to address these issues such as climate change. As stipulated in item (2) of our Environmental Policy, 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. And as such, ITOCHU will fulfil its social responsibility by promoting responses to climate change.

The TCFD* Recommendations published in June 2017 encouraged companies to effectively disclose climate-related financial information in a consistent, comparable, reliable and clear manner to promote appropriate investment decisions by investors. This comes from the observation that climate change related risks and opportunities will increase in the future. ITOCHU regards climate change as one of the most important issues facing the world. In May 2019, we publicly announced our commitment to support the TCFD recommendations. As such, we are undergoing a comprehensive review of our climate change initiatives along the core elements outlined in the TCFD recommendations: governance, strategy, risk management and business evaluation metrics (Indicator) and targets (Goal). Where possible, we are continuously updating our climate-related information disclosure to better align with the recommendations.
This undertaking is providing us with insight into what climate-related risks and opportunities are material to ITOCHU Group as a whole. Moving forward, we will leverage the TCFD recommendations and its recommended tools such as scenario analysis to prioritize climate change actions and initiatives, as well as consider strategic directions on how we wish to evolve and adapt our portfolio.

  • TCFD stands for the Task Force on Climate-related Financial Disclosures. The TCFD was established by the Financial Stability Board (FSB) at the request of the G20 to examine how to best disclose climate-related information and how financial institutions should address climate-related risks and opportunities.

Governance

At ITOCHU Corporation, the Sustainability Committee, which is one of our core internal committees, is assigned the highest level of executive responsibility regarding climate change issues. The Committee, chaired by our Chief Administrative Officer (CAO), deliberates and makes decisions on important items such as our policy and strategy on climate-related risk and opportunity management, greenhouse gas (GHG) emissions reduction targets, and other relevant initiatives. The CAO sits on the Board of Directors, and regularly reports on developments in our sustainability program to the Board, allowing the Board to have oversight of our social and environmental sustainability initiatives. The CAO also participates in the HMC and the Investment Consultative Committee, providing climate-related input into the business strategies and investment strategies we pursue.

ITOCHU Corporation's climate-related policies and company-wide action plans are planned and drafted by the Sustainability Management Division, and following the CAO's approval, is finalized upon deliberation at the Sustainability Committee. The Committee also assigns relevant responsibilities to the ESG Officers and Managers in each unit to carry out aspects of the plan.
We furthermore regularly engage in dialogue with internal and external stakeholders such as through the Sustainability Advisory Board to gain a better understanding stakeholder expectations and general trends. Feedbacks received through these engagements are leveraged in updating our climate change program.

Committee and Reporting to the Board of Directors Frequency of Meetings and Reports Main Items Deliberated or Reported on
(FYE 2019 to FYE 2020)
Sustainability Committee
  • Usually held 1 ~ 2 times a year
  • Results
    Once in FYE 2019
    2 times in FYE 2020
  • FYE 2019
    Announcement of support for the TCFD recommendations
  • FYE 2020
    Disclosure based on the TCFD recommendations, calculation of Scope 3 GHG emissions
Reporting to the Board of Directors
  • Periodic reports are made at least once a year
  • Results
    Once in FYE 2019
    2 times in FYE 2020
  • FYE 2019
    Announcement of support for the TCFD recommendations
  • FYE 2020
    Disclosure based on the TCFD recommendations, calculation of Scope 3 GHG emissions

Strategy

ITOCHU considers the climate change problems as one of the important challenges facing the world. Accordingly, we are examining the transition and physical risks concerning climate change. We then utilize scenario analysis of the TCFD recommendations as a tool when examining our business strategies and portfolio reorganization.
We analyze scenarios in the following steps.

Climate Change-related Risks and Opportunities

Major Climate Change-related Risks and Opportunities
Short, Medium and Long-term
Climate-Related risks and Opportunities
Impact of Climate-related Risks and Opportunities on the Organization's Business, Strategy, and Financial Planning
Transition Risks and Opportunities Policy and Legal Risks 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
Technology Risk Business opportunities that contribute to combatting and adapting to climate change are expected to increase (e.g. renewable energy)
Market Risk 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)
Physical Risk Acute Risk Operations may be impacted or damaged by increased occurrences of abnormal weather patterns (e.g. droughts, floods, typhoons, hurricanes, etc.)
We may be able to strengthen customer retention and/or attraction by strengthening our supply chain resilience to extreme weather patterns and promoting stable supply as a value proposition
Chronic Risk 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.

Scenario Analysis

Scenario Selection

We conducted a scenario analysis for our business segments that are likely to be heavily affected by regulatory and physical climate change impacts, regardless of the size of the segment business. Selection of business segments with high climate-related risk exposure was conducted by referencing the TCFD recommendations' list of non-financial industries potentially most affected by climate change and the transition to a lower-carbon economy (i.e. energy, transportation, materials and buildings, and agriculture, food, and forest products).
Following the first round of scenario analyses we conducted in FYE 2019, which were conducted for the coal business and the power generation business, in FYE 2020 we decided to cover the oil and gas upstream development business due to its exposure to transition risks (i.e. public policy and legal risks). In addition, in FYE 2020, we newly selected the Dole business and the pulp business as projects subject to scenario analysis due to their high exposure to climate-related physical risks.

Definition of Scenario Groups

We established the two scenarios below with reference to the International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC) when examining scenario analysis.

Scenario 4℃ <2℃
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.

Reference scenarios Transition aspects
  • Stated Policies Scenario
    (IEA WEO2019)
  • Reference Technology Scenario
    (IEA ETP2017)
  • Sustainable Development Scenario
    (IEA WEO2019)
  • 2℃ Scenario
    (IEA ETP2017)
Physical aspects
  • RCP8.5 (IPCC AR5)
  • RCP2.6 (IPCC AR5)
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

  • 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.

Scenario Analysis Results

We identified the mid-to-long term (short-term to beyond 2030) risks and opportunities relevant to each business type, broken down by items pertaining to procurement, business operations, and market demand. We then prioritized these risk and opportunity items by severity of impact. Regarding items of high importance, we identified variables that have a large impact on the transition and physical aspects and conducted a scenario analysis using financial models that reflect the conditions. Financial impacts were analyzed by measuring the potential impacts of climate change, as well as the outcomes of mitigation and counter-measures we plan to implement. The quantitative information referenced in the scenario analysis leverages data from scenario-based forecasts provided publicly such as by the IEA, but in doing so also reflects our own assumptions and expectations. We are committed to upholding the best analytic accuracy where we can, and will continue to improve upon our scenario analysis approach moving forward.

Coal Business

Business Environment under the 4℃ Scenario Business Environment under the 2℃ Scenario
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Under the 2℃ scenario, use of fossil fuels will be reduced as a result of technological innovation and changes in regulatory trends, but demand for high-grade coal, which has a relatively lower environmental impact, will remain at a certain level.

Policy and Initiatives
  • We will not acquire new thermal coal mining interest.
  • Regarding the existing thermal coal mining projects, we will continue to review it and contribute to the development of a sustainable society while responding to the social demands of stable supply of energy to domestic and overseas customers.
  • We will continue to be involved in development of technologies to contribute to reduction of greenhouse gas emissions, including carbon capture and storage (CCS) and carbon capture and utilization (CCU).

Power Generation Business

Business Environment under the 4℃ Scenario Business Environment under the 2℃ Scenario
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Under both the 2℃ and the 4℃ scenarios, we will maintain at least the current level of income.
Under the 2℃ scenario, we can maintain and grow revenue by increasing the number of new renewable energy plants.

Policy and Initiatives
  • We aim to achieve a renewable energy ratio more than 20% (equity interest basis) by FYE 2031 and will reflect this to the future strategy.
  • We will not develop any new coal-fired power generation business, in part to contribute to the development of a sustainable society.

Oil and Gas Upstream Development Business

Business Environment under the 4℃ Scenario Business Environment under the 2℃ Scenario
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Demand for crude oil is expected to shrink across the world under the 2℃ scenario. Nevertheless, we will be able to increase revenue by capturing the opportunities of the global increase in demand for LNG and the increase in demand for new energies (e.g., biofuels).

Policy and Initiatives
  • We will carefully examine an expansion of our crude oil assets.
  • We will aim to stabilize business by participating in excellent projects. We will then examine investment opportunities in gas projects (e.g., LNG).
  • We will examine a business portfolio that anticipates an increase in demand in the new energies field (e.g., the capture of biofuel and hydrogen related business opportunities).

Dole Business

Business Environment under the 4℃ Scenario Business Environment under the 2℃ Scenario
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We expect climate change (the impact on the amount of harvest per unit area due to the increase in the average temperature) to have the impact of reducing revenue under both the 4℃ and 2℃ scenarios. Nevertheless, we will be able to increase revenue by dispersing risks with diversification of production areas (e.g., Sierra Leone) and by striving to improve our cultivation technologies and cultivation efficiency.

Policy and Initiatives
  • We will diversify production areas (expand production in Sierra Leone).
  • We will increase the yield by researching and selecting varieties and by improving production methods (e.g., by improving seedling cultivation methods).
  • We will contribute to a low-carbon society through the promotion of biogas power generation utilizing pineapple dregs and solar power generation utilizing factory rooftops. We will aim to further improve the Dole brand and product superiority with the support of highly environmentally-conscious consumers.
  • We will implement irrigation as necessary.
  • We will examine production optimization by using drones and other ICT (e.g., early identification of agricultural chemical application points, yield prediction, and timely and accurate fertilization with monitoring).

Pulp Business

Business Environment under the 4℃ Scenario Business Environment under the 2℃ Scenario
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We will increase revenue due to an increase in pulp production output in some afforestation areas where production output is expected to expand under the 4℃ scenario. Nevertheless, our analysis shows that our revenue will decrease due to the impact of the reduction in production output in afforestation areas overall with the rise in the average global temperature.
We will maintain production output at a certain level in afforestation areas with the suppression in the rise of the average temperature under the 2℃ scenario. If the carbon prices are introduced in pulp manufacturing factories using biomass energy, we will be able to curtail costs. In addition, we will be able to increase profit by increasing revenue with an increase in our pulp production output in afforestation areas where production output is expected to expand.

Policy and Initiatives
  • We will examine a selection of varieties to respond to climate change.
  • We will conduct on-site monitoring to examine measures before the impact of climate change becomes significant.

Moreover, we started work in FYE 2020 on organizing climate-related risks and opportunities in our apparel and ICT businesses – businesses which may potentially be affected by transition and physical risks concerning climate change – from the perspective of raising awareness of climate change and promoting our response to it on a company-wide basis. We have identified risk and opportunity factors with a high level of importance in the medium to long term. We plan to work on further analysis toward the next fiscal year.

Apparel Business

Currently, we assume the following will be the risks with a high level of importance: a reduction in the production output of raw materials (e.g., cotton) and an increase in costs due to a rise in emission prices. On the other hand, we assume that we can have expectations for the provision of products responding to climate change (e.g., low-carbon products) in terms of opportunities.

ICT Business

Currently, we assume the following will be the risks with a high level of importance: an increase in costs due to rising emission prices, an increase in power prices because of the introduction of a high carbon tax, an increase in information system facility damage from natural disasters (e.g., typhoons and floods) and a strengthening of CO2 emission regulations in countries and regions accompanying climate change. On the other hand, we assume that we can have expectations for an expansion in the development and spread of energy-saving and highly efficient IT and data analysis technologies and an expansion in investment and lending that will contribute to a suppression of CO2 emissions in terms of opportunities.

Impact on Existing Strategies and Future Initiatives

As a result of the scenario analyses we conducted on projects likely to be subject to high climate-related risks, we identified no critical impacts that warrant drastic changes in our business strategy. We are also aware that the scope of our scenario analysis comes with limitations, and that we engage in various other business activities subject to climate-related risks worldwide. However, in the current social and environmental climate, we believe that the impact of risks associated with these individual business activities on the Group's overall performance is limited.

Moving forward, we plan to analyze the transition and physical risks of climate change on all projects in our company. We will then further identify and prioritize businesses and projects where particularly significant impacts are anticipated. Based on findings from this exercise, we plan to devise specific measures and initiatives to address climate-related risks across ITOCHU as a whole, including seven existing companies and the eighth newly established company.

Risk Management

As a global company, ITOCHU continuously monitors the risks and opportunities relevant to its business. This requires following the developments of climate change-related public policies in various countries, abnormal weather conditions around global business sites, and long-term changes in average temperatures. Climate change risks and opportunities are identified mainly by the Sustainability Committee based on information on climate change regulations, abnormal weather, and other information obtained through risk analysis tools within the Group, including internal companies. Identified climate change risks are incorporated into the overall risk management framework. The risks are analyzed and aligned to our 18 key risks (e.g. Market, Credit, and Investment Risks) and managed accordingly. In addition, the identified climate change risks are used to evaluate ESG risks (opportunity) as an assessment criteria when making investment decisions.

Identification of Climate Change Risks

At ITOCHU Corporation, the Sustainability Management Division and each company collects information on climate-related risks and opportunities in our relevant geographies such as those related to regulatory changes, abnormal weather, technology trends and clean tech market trends. Findings are shared with internal companies, Group companies, and subsidiaries in the supply chain to assess the potential size and scope of the risks and opportunities. Finally, we engage with the Sustainability Advisory Board to receive advisory input, and finally report on our overall findings to the Sustainability Committee, which identifies key climate-related risks upon deliberation.

Corporate Risk Management

The ITOCHU Group is exposed to various risks (e.g. market risk, credit risk, and investment risk) due to the wide-ranging nature of its business. In order to manage these risks, we have established various internal committees and departments. We have also developed an enterprise risk management system and relevant protocols to manage risks comprehensively and individually, such as investment standards, risk and transaction limits, and reporting and monitoring systems.

As part of risk management at the corporate level, the Sustainability Committee engages with other internal committees and responsible departments on the identified climate change risks, such as those related to natural disasters, and ESG investments. The Committee focuses on gathering input on the company's climate change policy, its response plan, its awareness and assessment of climate change impacts on its enterprise risks (e.g. market risks, credit risks, investment risks, etc.), and the cultural integration of risk management systems. Based on deliberations at the Committee regarding the input it gathered, the Sustainability Committee chairman (the CAO) reports to the Board of Directors on major developments more than once a year.

Please click here for risk management relating to company-wide business including climate change.

Business Investment Management

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 HMC (Headquarters Management Committee) and the Investment Consultative Committee. In all cases, ESG risk assessments, including climate change risk, are incorporated into considerations when making investment decisions in the business investment process, which includes climate change risks.

As a member of the HMC and the Investment Consultative Committee, the CAO (Chief Administrative Officer), who chairs the Sustainability Committee, participates in the screening of projects that exceed the authority of the 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.

Details are here.

Metrics and Targets

ITOCHU sets target values for a reduction in our electricity consumption. The targets are as below. ITOCHU has set a target of reducing our energy consumption by at least 1% on average annually. We are working to reduce our GHG emissions.

Energy Consumption Reduction Targets

  FYE 2020 Results Single Year Target Target for the Year Ended March 2021
Electricity Consumption of Tokyo and Osaka Headquarters, Branches in Japan and Other branches and business facilities in Japan

Reduction of 2.3% compared with FYE 2019 levels

Reduction of at least 1% annually

Reduction of 30% compared with FYE 2011 levels

Reduction of 44% compared with FYE 2011 levels

ITOCHU Group's Clean-tech goals

ITOCHU has set the following targets for 2030 for the ITOCHU Group's clean tech-related businesses and projects.

  • In the power generation business as a whole, we aim to increase the ratio of renewable energy based on equity capacity from 12.5% in FYE 2020 to over 20% by FYE 2031.
  • By the end of FYE 2031, we aim to sell (Energy Storage System: ESS) a power storage system that functions as a regulator in stabilizing renewable energy supply, with a total electric power capacity of 22 times that of FYE 2020, on a 850,000 kWh scale.

Details are here.

Initiatives

Initiatives in Business tackling Climate Change

Toward Sustainable Plantation Operation in Response to Climate Change

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Banana Field

We acquired the Asian fruits and vegetables business and processed foods business, which supplies canned food and beverages around the world, from Dole Food Company in the U.S. in April 2013.

Since this acquisition, typhoons, drought, and damage from disease and harmful insects have struck the Philippines – the largest production base of major products. The production volume of bananas was 440,000 tons in FYE 2017; this was a 40% decrease compared with before the acquisition. We looked to restore and expand this production volume. To that end, we introduced irrigation facilities for bananas. We also aggregated and expanded farmland and took measures against damage from disease and harmful insects. In addition, we invested in facilities for plantations and reviewed cultivation methods for pineapples to improve productivity. We are also promoting the diversification of production areas to prepare for the risk of unpredictable weather. Furthermore, we have improved management (e.g., the selection and concentration of businesses and products, and the disposal of unprofitable businesses).
In the future, we will aim to become the largest agricultural produce integrator in Asia. We will achieve this by developing a structure to increase production to 800,000 tons of bananas and 1 million tons of pineapples in the Philippines. We believe that people, the environment and society are important resources for the survival and development of the company. Accordingly, DOLE again focused initiatives on activities to contribute to local societies in the Philippines, Thailand, Japan, South Korea, China, North America and other countries in FYE 2019. For example, we spent approximately 2.5 million dollars to donate textbooks, desks, chairs and PCs to schools in various areas, construct and maintain school buildings, provide scholarships, and supply educational opportunities for children with disabilities. We also provided daily necessities and medical assistance to areas affected by natural disasters, donated blood, held hygiene education and provided food assistance to work on maintaining and promoting health.

Utilization of Solar Power Generation in a Joint Venture with Teys in Australia

Teys Australia Condamine introduced 1,034 solar panels in 2015. This has made it possible to generate approximately 506,000 kWh of power annually. Accordingly, approximately 50% of the power used in this facility comes from renewable energy. The introduction of solar power generation has reduced CO2 emissions by approximately 395 tons. Consequently, a reduction in CO2 emissions of approximately 49% has been realized compared with before the introduction of solar power generation.
We also procure beef to be slaughtered and processed from Teys – our joint investment partner in Australia. This firm has formed sustainable operations. It extracts methane gas generated in the slaughter process and reuses it as heat for its factory.

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

Details are here.

Contributing to Emissions Reductions in the Value Chain through Projects and Investments

Renewable Energy Initiatives

ITOCHU is working to resolve social issues through investments in power generation assets and storage batteries utilizing renewable energy sources such as geothermal and wind power, which are expected to grow in the future as key players in energy supply. Please refer to this page for details.

CCS (Carbon Dioxide Recovery and Storage)

We recognize that CCS is an indispensable technology for achieving a low carbon society. We have invested in Japan CCS Co., LTD. which is conducting a demonstration test in Tomakomai, and are pursuing the commercialization of CCS technology. (As of the end of June 2020, cumulative CO2 injection volume was approximately 300,000 tons.)

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 approximately 15% from the reference value (average value from FYE 2003 to FYE 2005) over five years from FYE 2016 to FYE 2020 based on the Ordinance on Environmental Preservation. Our emissions in FYE 2019 were 6,168 t-CO2. This is an approximately 42% reduction compared to the reference value.

The documents we have submitted to the Tokyo Metropolitan Government so far are 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.

Cooperation with Stakeholders

Participation in TCFD Consortium

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In May 2019, ITOCHU Corporation announced its support for the TCFD, which encourages companies to disclose financial information related to climate change. We also participated in the TCFD Consortium established on May 27, 2019 by Ministry of Economy, Trade and Industry (METI), Ministry of the Environment (MOE), and the Financial Services Agency (FSA) as a body for promoting discussion and deliberation among companies and financial institutions supporting the TCFD mission. By participating in this Consortium, we will engage in the appropriate disclosure of ITOCHU business opportunities and risks associated with climate change.

Initiative Participation (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 in the Global Environment Committee of the Japan Foreign Trade Council. We are striving to build a low-carbon society, construct a recycling-orientated society, and to support environmental related laws and regulations. Climate change-related targets set out in the Global Environment Committee are as follows.

2030 Reduction Targets for Domestic Business Activities (Trading Industry)

  • In FYE 2031, we will strive to reduce unit power consumption (Electric power consumption per floor area for the entire company) by 15.7% from FYE 2014 level. (Reestablished July 2018)
  • If we decide the direction regarding such as climate change in various industry groups we participate, we express an opinion in line with our Basic Policy on Sustainability in the decision process, and when it is different from our policy, we will strive to be in line with our policy.

Participation in CDP (Climate Change)

ITOCHU is actively providing information on ESG initiatives to various stakeholders around the world. As part of these initiativess, we participate in the CDP, an NGO that is recognized worldwide as a global standard for corporate environmental information disclosure. Since FYE 2014, we have been responding to the CDP's climate change questionnaire.

Participation in COOL CHOICE

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ITOCHU participates in the Ministry of the Environment-led COOL CHOICE climate change campaign aimed at realizing a low-carbon society. We are striving to adjust our air conditioning in the summer and winter and to switch off unnecessary electricity. We also conduct environmental conservation activities from the things that all employees can do in their daily lives. For example, we encourage separation of waste in offices and promote recycling.

Performance Data

Scope of Aggregation

○:in scope of aggregation

Energy Consumption GHG Emission
Energy Consumption in the Japanese Bases of ITOCHU Energy Consumption Attributable to Business Facilities Electricity Consumption Heat and Steam Consumption Fuel Consumption GHG Emissions from Business Facilities Scope1 Total Emissions Breakdown by Greenhouse Gas Type (6.5 Gases)
Tokyo headquarters

Osaka headquarters

Branches and business facilities in Japan*1 The number of offices including domestic branches:
FYE 2016: 13, FYE 2017: 13, FYE 2018: 11, FYE 2019: 13, FYE 2020: 12

Group companies in Japan*2 The number of target companies: FYE 2016: 70, FYE 2017: 65, FYE 2018: 208, FYE 2019: 220, FYE 2020: 238

Overseas offices The number of overseas offices: FYE 2016: 16, FYE 2017: 16, FYE 2018: 15, FYE 2019: 30, FYE 2020: 29

Overseas group companies*2 The number of target companies: FYE 2016: 44, FYE 2017: 46, FYE 2018: 299, FYE 2019: 282, FYE 2020: 286

Exclusion Companies expected to be sold within the next five years held for investment management purposes are not included in the scope of the data. Moreover, non-manufacturing site offices with 10 or fewer employees are quantitatively insignificant. Accordingly, they are not included in the scope of the data.
  1. The other business facilities cover business facilities owned or leased by ITOCHU (except facilities for residences).
  2. The group companies in Japan and overseas cover consolidated subsidiaries directly invested in by ITOCHU (as of March 31, 2017) for FYE 2016 to FYE 2017. All consolidated subsidiaries are covered since FYE 2018 (coverage 100%).

Energy Consumption

Energy Consumption in the Japanese Bases of ITOCHU
  FYE 2016 FYE 2017 FYE 2018 FYE 2019 FYE 2020
Purchased and consumed non-renewable fuel (Unit:MWh)

805

765

610

525

691

Purchased non-renewable power (Unit:MWh)

25,955

30,282

29,558

29,306

28,747

Other purchased non-renewable energy (e.g., steam, heat and cooling water) (Unit:MWh)

11,286

8,299

8,206

7,605

7,385

Generated renewable energy (solar power generation*) (Unit:MWh)

87

58

58

51

54

Energy consumption cost total (Unit:million yen)

580

564

576

404

537

  • Solar Power Generation
    ITOCHU has installed solar panels on the roof of our Tokyo Headquarters and the roof of the adjacent ITOCHU Garden (ex CI PLAZA). These panels started generating power in March 2010. The power generation capacity of the solar panels installed is a total of 100 kW. This is equivalent to the power for 30 regular houses (calculated at approximately 3.0 kW per house). All the clean energy generated is used in our Tokyo Headquarters. This is equivalent to an amount of power used in lighting 3.5 floors in our Tokyo Headquarters (during instantaneous maximum power generation).

(Unit:GJ)

Energy Consumption Attributable to Business Facilities
  FYE 2016 FYE 2017 FYE 2018 FYE 2019 FYE 2020
Tokyo headquarters

129,084

134,076

130,977

127,824

126,135

  • The figures for the Tokyo Headquarters are calculated based on the Tokyo Metropolitan Ordinance on Environmental Preservation.

Electricity Consumption

Our electricity consumption and CO2 emissions attributable to business facilities in FYE 2016 to FYE 2020 are as follows. We have been introducing energy saving facilities (e.g., air conditioner inverters and desktop LED stands). At the same time, all employees are switching off unnecessary lighting and office machines. We also started a trial of a morning-focused working system for regular employees working in headquarters and branch offices in Japan from October 2013. The formal introduction of this in May 2014 has led to a reduction in our electricity consumption.

(Unit:Thousand kWh)

  FYE 2016 FYE 2017 FYE 2018 FYE 2019 FYE 2020
Tokyo headquarters

9,169

9,331

9,200

9,178

9,055

Osaka headquarters

442

434

409

396

384

Branches and business facilities in Japan

1,626

1,561

1,476

1,440

1,319

Total of domestic bases of ITOCHU corporation❖

11,237

11,326

11,084

11,014

10,759

Group companies in Japan

484,755

471,432

798,054

878,025

1,204,830

Overseas offices

3,424

3,087

2,224

2,118

2,098

Overseas group companies

147,665

143,485

500,777

590,175

447,462

Grand total of ITOCHU Group◆

647,081

629,329

1,312,139

1,481,382

1,665,148

  • This data has been calculated based on the Ordinance on Environmental Preservation for the Tokyo Headquarters and based on the Act on the Rational Use of Energy for the Osaka Headquarters, branches in Japan, other branches and business facilities. However, companies expected to be sold within the next five years held for investment management purposes are not included in the scope of the data. Moreover, non-manufacturing site offices with 10 or fewer employees are quantitatively insignificant. Accordingly, they are not included in the scope of the data.

Heat and Steam Consumption

Heat and Steam consumption of the entire Group is as follows.

(unit: GJ)

  FYE 2018 FYE 2019 FYE 2020
Industrial steam

513,564

494,035

541,932

Non-industrial steam

1,015

889

890

Hot water

8,446

2,965

2,974

Cold water

95,685

69,684

64,090

Fuel Consumption

Fuel consumption of the entire Group is as follows.

FYE 2018 FYE 2019 FYE 2020
Kerosene (Unit:kL)

4,001

4,468

2,609

Light oil (Unit:kL)

35,577

39,362

41,790

Gasoline (Unit:kL)

10,774

12,598

12,759

Heavy oil A (Unit:kL)

25,699

18,289

20,432

Heavy oil B and C (Unit:kL)

11,711

16,551

25,942

Coal (Unit:t)

341,192

333,176

315,148

Petroleum gas Liquefied petroleum gas (LPG) (Unit:t)

6,321

6,614

11,966

Liquefied petroleum gas (LPG) (Unit:1,000 m3)

2,454

496

472

Liquefied petroleum gas (LPG) (Unit:kL)

186

Petroleum hydrocarbon gas (Unit:1,000 m3)

2,247

1,860

340

Combustible
natural gas
Liquefied petroleum gas (LPG) (Unit:t)

1,645

3,161

5,698

Other combustible natural gas (Unit:1,000 m3)

5,762

14,565

14,115

Town gas etc. Town gas (Unit:1,000 m3)

204,481

33,552

26,692

Other gas (Unit:1,000 m3)

0.017

158

242

Greenhouse Gas (GHG) Emissions

GHG Emissions Attributable to Business Facilities

(Unit:t-CO2e)

FYE 2018 FYE 2019 FYE 2020
Total of all Japanese bases in ITOCHU❖ Scope1

98

91

151

Scope2

7,174

6,969

6,740

Scope1+2

7,272

7,060

6,891

ITOCHU Group◆ Scope1

1,299,390

1,213,395

1,202,508

Scope2

617,818

771,204

835,916

Scope1+2

1,917,209

1,984,599

2,038,424

(Unit:t-CO2e)

  FYE 2016 FYE 2017 FYE 2018 FYE 2019 FYE 2020
Tokyo headquarters

6,229

6,459

6,307

6,168

6,089

Osaka headquarters

235

221

208

172

135

Branches and business facilities in Japan

872

821

757

720

667

Total of domestic bases of ITOCHU corporation❖

7,336

7,501

7,273

7,060

6,891

Group companies in Japan

369,775

340,559

1,280,241

1,174,507

1,526,279

Overseas offices

1,907

2,238

1,674

2,769

1,523

Overseas group companies

102,372

98,427

628,021

800,263

503,731

Grand total of ITOCHU Group◆

481,389

448,725

1,917,209

1,984,599

2,038,424

  • GHG emissions of the ITOCHU Group are calculated according to the Management Control Standards (the control approach).
  • The data has been calculated based on the Tokyo Metropolitan Ordinance on Environmental Preservation for the Tokyo Headquarters and based on the Act on the Rational Use of Energy and the Act on Promotion of Global Warming Countermeasures for the Osaka Headquarters, branches in Japan, other branches and business facilities and group companies in Japan. (We have calculated this data by employing the basic emissions coefficients of the power companies.)
  • From FYE 2020, the data has been calculated based on the CO2 conversion coefficient according to the data of 2017 by country of the International Energy Agency (IEA) for overseas offices and overseas group companies. The data before FYE 2019 has been calculated based on the average of the CO2 conversion coefficient between 2010 and 2012.
  • From the FYE 2019 data, 6.5 gases, which are greenhouse gases other than CO2 from energy consumption, are also included. 6.5 gases from group companies that emit more than 3,000 t-CO2e per year are aggregated and disclosed.
  • The calculation of GHG uses the GHG protocol developed by WRI (World Resources Institute) and WBCSD (World Business Council for Sustainable Development).

Intensity Figures

CO2 Emissions from ITOCHU's Domestic Sites (Intensity Unit)

(Unit:t-CO2e)

  FYE 2016 FYE 2017 FYE 2018 FYE 2019 FYE 2020
Per employee
(Total of domestic bases of ITOCHU corporation)

1.714

1.737

1.660

1.622

1.596

Per one square meter of all floor space
(Total of domestic bases of ITOCHU corporation)

0.063

0.064

0.063

0.061

0.068

Per MWh of Electricity Consumption
(Grand total of ITOCHU group)

0.524

0.506

0.524

0.502

  • The denominators of Intensity figures per one square meter of all floor space are as follows:
    FYE 2016 116,585m2, FYE 2017 116,528m2, FYE 2018 115,905m2, FYE 2019 115,842m2, FYE 2020 101,545 m2
CO2 Emissions by Beverage Manufacturing Companies (Intensity Unit)
Business Profile Company Name (Boundary) Unit FYE 2018 FYE 2019 FYE 2020
Beverage Manufacturing

Clear Water Tsunan Co., Ltd.
(Soft drink manufacturing and sales business)

(CO2e/production capacity kL)

Non-consolidated

0.091

0.081

Scope1 Total Emissions Breakdown by Greenhouse Gas Type (6.5 Gases)

(Unit:t-CO2e)

Global Warming Potential (GWP) FYE 2019 FYE 2020
Scope1 Total emissions

-

1,213,395

1,202,508

Energy consumption carbon dioxide(CO2)

-

1,161,002

1,158,283

Total 6.5 gases (t-CO2e)

-

52,393

44,225

Breakdown non-energy consumption carbon dioxide (CO2)

1

0

0

methane (CH4)

25

0

1,459

dinitrogen monoxide (N2O)

298

17,932

18,439

hydrofluorocarbon (HFCs)

7,390~10,300

34,461

24,327

perfluorocarbon (PFCs)

-

0

0

sulfur hexafluoride (SF6)

-

0

0

nitrogen trifluoride (NF3)

-

0

0

  • 6.5 gases from group companies that emit more than 3,000 t-CO2e per year are aggregated and disclosed.
  • 6.5 The global warming potential (GWP: Global Warming Potential) for the calculation of gas is based on GWP 100 of the IPCC 4th Assessment Report (AR4).
  • Greenhouse gas emissions other than CO2 have several tens to several tens of thousands of times of greenhouse effect compared to CO2, and t-CO2e is used as a unit for expressing that greenhouse effect equivalent to CO2.
  • In addition to the above 6.5 gases, Group companies emit 8,967 t-CO2e as HCFCs, etc.

Costs Associated with Climate Change

Among the environmental conservation costs disclosed as a part of our environmental accounting, costs associated with climate change (FYE 2020) are as follows:

  • Administrative costs of the power generator installed in the Tokyo Headquarters: 1,770 thousand yen
  • Research and development (R&D) expenses for climate change risk aversion (donation to Division of Climate System Research, Atmosphere and Ocean Research Institute, the University of Tokyo): 500 thousand yen

Initiatives Toward Environmental Distribution

ITOCHU is engaged in green distribution to reduce our environmental impact. This is to comply with the Act on the Rational Use of Energy (Energy Conservation Law).

Carbon Dioxide Emissions from Distribution

The carbon dioxide emissions generated due to contracted transport as shippers of ITOCHU is as follows.

CO2 Emissions Attributable to Distribution◆
[Graph]

Energy Saving Measures for Distribution

We have established a company-wide common energy saving measures policy as below in regards to energy saving measures for distribution. On top of that, we have formulated concrete measures for each division company.

Transportation Method Selection

Promotion of the use of railroads and domestic shipping

Measures to Improve Transportation Efficiency

Use of transportation with the freight of multiple shippers on one vehicle and mixed loading
Selection of appropriate vehicle types
Increase in the size of vehicles
Optimal transportation routes
Improvement in the loading ratio

Cooperation with Freight Transportation Operators and Recipients of Freight

Review of transportation plans and frequency

Concrete Measures
  1. Transportation Method Selection
    • We will survey and analyze the conditions of long-distance truck transportation. We will then consider a change to the transportation method from business that can be switched to railroad and domestic shipping transportation that has a relatively low environmental impact.
  2. Measures to Improve Transportation Efficiency
    • We will survey the conditions of transportation. We will then consider the selection of appropriate vehicle types and the selection of appropriate transportation routes to further improve loading efficiency and to reduce the energy consumption rate.
  3. Cooperation with Freight Transportation Operators and Recipients of Freight
    • We have decided to check the initiatives toward environmental distribution with internal criterion concerning the appointment of distribution companies. We recommend the appointment of certified companies.
    • We are building a cooperative system together with our suppliers in addition to distribution companies to realize (1) and (2) above.

Independent Assurance

Independent Assurance Report (1.5MB)[PDF]: The data below marked with a ❖ is independently assured through KPMG AZSA Sustainability Co., Ltd. This assurance conforms to the International Standard on Assurance Engagements (ISAE) 3000 and 3410 of the International Auditing and Assurance Standards Board (IAASB).
❖: Total electricity consumption and total CO2 emissions attributable to the domestic bases of ITOCHU corporation (business facilities of the Tokyo Headquarters, the Osaka Headquarters, branches in Japan, domestic branches and other business facilities), and the waste volume, waste non-recycled, waste recycled, recycling rate, water consumption, gray water production volume and wastewater volume for the Tokyo Headquarters.

Independent Assurance Report (1.5MB)[PDF]: The data below marked with a ◆ is independently assured through KPMG AZSA Sustainability Co., Ltd. This assurance conforms to the International Standard on Assurance Engagements (ISAE) 3000 and 3410 of the International Auditing and Assurance Standards Board (IAASB).
◆: Total electricity consumption and GHG emissions attributable to ITOCHU Group in total, and CO2 emissions attributable to distribution of ITOCHU Corporation.