Resource Circulation

Policy and Basic Concept

ITOCHU stipulates the following in the ITOCHU Group Basic Policy on Promotion of Sustainability that we revised in 2018. We shall strive to understand the situation concerning the use of resources (e.g., the atmosphere, water, soil, food, minerals, fossil fuels, and animals and plants) and the situation concerning consideration for human rights and labor in our business investments and in the supply chain of the products we handle. We shall ask our business partners to understand and put into practice our concept toward sustainability. The aim of this is to build a sustainable value chain. In addition, we specified material sustainability issues which incorporate the viewpoint of the Environmental, Social and Governance (ESG) in April 2018. We consider ensuring stable procurement and supply to be a critical issue. We work to effectively utilize and to ensure stable procurement and supply of resources (including water) according to demand in each country with consideration for the environment (e.g., biodiversity). In doing this, we are aiming for a recycling-oriented society.
With regard to water resources, we understand that water stress and shortages of potable water supply are an increasing global concern. About 97.5% of earth's water resources come from the ocean, leaving less than 0.01% to be potable water. Potable water resources are also at risk of decrease given the exacerbation of natural conditions due to climate change. Nonetheless, the demand for water supply will increase along with the growing global population, mainly around emerging economies, putting a lot of strain on existing water supply.
Water resources are however critical to the sustained execution of ITOCHU Corporation's vast range of global business activities. In order to adapt to the changing environment and contribute to the sustainability of water supplies around the world, we are committed to limiting our water consumption to what is necessary, recycling and reusing water, improving efficiency, and reducing water consumption.

Given these global circumstances, ITOCHU Corporation has identified its water-related business as a material area. As such, we are committed to enhancing our global capability regarding our seawater desalination business and our water supply and sewerage concession businesses, which we have been engaging in since 2014. We believe that these efforts will allow us to contribute to solving water stress and shortage issues around the world.

Targets

ITOCHU sets numerical targets for the reduction of the waste we discard, the promotion of recycling, and the reduction of our paper and water consumption.

ITOCHU develops water and hygiene infrastructure, and appropriately treats and effectively utilizes water and waste. Through this, our water resource related business contributes to improving the hygiene environment, developing economic activities and conserving the global environment. We are promoting the appropriate use and treatment of water, and the effective utilization of resources through expansion of our water and environmental business. In this way, we are working to reduce our environmental impact.

In our Tokyo Headquarter building, we are implementing resource saving measures to recycle water through creation of reclaimed water. This allows us to improve our water consumption efficiency in the office. Targets and indicators we track to manage our performance are noted in the table below.

  FYE 2019 (Results) Single Year Target Target for the Fiscal Year Ending March 31, 2021
Volume of waste discarded by our Tokyo Headquarters

Reduction of 35% compared to FYE 2011

Reduction of 10% compared to FYE 2011

Reduction of 20% compared to FYE 2011

Recycling rate in our Tokyo Headquarters

93%

90%

90%

Paper consumption in our Tokyo Headquarters

Reduction of 16% compared to FYE 2011

Reduction of 3% compared to FYE 2011

Reduction of 3% compared to FYE 2011

Water consumption in our Tokyo Headquarters (water supply)

Reduction of 14.1% compared to FYE 2011

Reduction of 10% compared to FYE 2011

Reduction of 15% compared to FYE 2011

Targets for realty business

Item Reduction target Short-term target Long-term target
Water usage

No increase

Annual consumption rate basis
No increase

  • Residence portofolio:5 years (FYE 2018-FYE 2022)/No increase on consumption rate basis
  • Logistics portofolio:5 years (FYE 2020-FYE 2024)/No increase on consumption rate basis
Waste volume

No increase

Annual consumption rate basis
No increase

  • Residence portofolio:5 years (FYE 2018-FYE 2022)/No increase on consumption rate basis
  • Logistics portofolio:5 years (FYE 2020-FYE 2024)/No increase on consumption rate basis

Structures and Systems

We assess in advance the impact on the market, society and the environment by business investment projects in Japan and overseas engaged in by ITOCHU and our Japanese subsidiaries. We do this with the ESG Checklist for Investment. (The assessment items are related to climate change risks and also include the energy consumption and CO2 emissions situation.) We have been operating this revised checklist since FYE 2014. The revision to the checklist means it now contains 33 check items including elements of the seven core subjects in ISO26000 (organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, and community involvement and development). We make requests to external specialist organizations to conduct investigations in advance for projects requiring a professional point of view. The project is then only undertaken upon confirming that there are no problems in the results of those investigations.
ITOCHU has reorganized and integrated our environmental management structure into a structure to promote sustainability in the same way as with the Environmental Policy since April 2018. This has led to the establishment of a new structure to promote sustainability. You can find this from here.
ITOCHU considers ensuring stable procurement and supply to be a critical issue. We work to effectively utilize and to ensure stable procurement and supply of resources (including water) according to demand in each country with consideration for the environment (e.g., biodiversity). In doing this, we are aiming for a recycling-oriented society.
We recognize that there are risks related to ensuring stable procurement and supply. These include the impact from opposition movements caused by environmental problems and worsening relations with regional communities and structural exhaustion of the industry as a whole is due to competition to reduce prices in the consumer-related field primarily. Meanwhile, we recognize that there are opportunities related to ensuring stable procurement and supply. These include a rise in demand for resources because of the increase in population and improvement in the living standards of emerging nations, and winning the trust of customers and creating new business from the stable supply of environmentally friendly resources and materials.

We manage water resource risks by using the World Resources Institute's (WRI) Aqueduct for manufacturing bases affiliated with our group.

Efforts

Among the environmental conservation costs disclosed in the environmental accounting, associated with water are as follows:

  • Cost for water pollution prevention, wastewater treatment cost, grey water production cost, monitoring measurement cost and management cost 9,456 thousand yen
  • Research and development expenses for water risk aversion (donation to Division of Climate System Research, Atmosphere and Ocean Research Institute, the University of Tokyo) 500 thousand yen

Understanding Water Risks at Manufacturing Bases

ITOCHU uses the Aqueduct tool developed by the World Resources Institute (WRI) to identify areas with high water stress levels at manufacturing bases affiliated with our group. With this, we have quantified the water stress levels at all our manufacturing bases in Japan and overseas and have identified areas with a high level of water stress.

Overall water risk Number of sites
Low risk (0-1)

1

Low to medium risk (1-2)

32

Medium to high risk (2-3)

63

High risk (3-4)

10

Total

106

As in the Environment Conserving Business page, we are striving to solve global environmental problems through the promotion of environment conserving businesses such as seawater desalination business in Victoria, Australia and Oman and seawater desalination plant, and osmosis membrane manufacturing and sales in Saudi Arabia.

Food Recycling

ITOCHU makes regular reports on the amount of food we discard and the amount we recycle in Japan to comply with the Food Recycling Law. We are striving to suppress the generation of waste and to promote recycling (e.g. conversion into feed) in line with the reference rate (recycling rate target).

Food Recycling Rate
FYE 2016 FYE 2017 FYE 2018 FYE 2019
Quantity recycled

Waste volume generated (Unit: t)

959.9

828.2

1,816.9

869.0

Amount of recycling (Unit: t)

567.7

544.9

620.6

454.9

Waste volume (Unit: t)

392.2

283.3

1,196.3

414.1

Target (recycling rate target by individual food related operator)

Reference rate

74.8%

75.8%

76.8%

77.8%

Percentage recycled

Recycling rate

64.3%

70.6%

34.2%

52.3%

  • In FYE 2018, 1,001.0 tons were discarded due to a warehouse fire.
  • FYE 2020 recycling rate target: 78.8%

Number One Trader in the World for the Cement Substitute of Blast Furnace Slag

[Photo]
Structure Made with Blast Furnace Slag

Blast furnace slag is a by-product of the steelmaking process. Mixing and using it with cement as a cement substitute makes it possible to save natural resources (e.g., limestone – the raw material of cement). It is an environmentally friendly product that can reduce the CO2 generated during manufacturing by about 40%* compared with when making concrete only with cement.
It is highly durable against seawater and the steel material in it is less likely to suffer corrosion over a long period of time. Therefore, it is widely used in large civil engineering projects at ports.
We have been selling blast furnace slag produced in Japan and overseas in around 10 countries since about 20 years ago. We handle of volume of blast furnace slag that makes us the number one trader in the world for it. In the future, we will build continuous and stable distribution channels and consider investing and participating in the slag business.

* Calculated at a 55:45 ratio for cement and blast furnace slag

Cooperation with Stakeholders

Compliance with the Containers and Packaging Recycling Law

ITOCHU understands our own manufacturing and import volume of containers and packaging every year to recycle containers and packaging. We then pay a recycling fee to the Japan Containers and Packaging Recycling Association. The aim of this is to contribute to promoting the formation of a recycling-orientated society as a specified business operator prescribed by the Containers and Packaging Recycling Law.

The recycling fee we pay every year is as below.

(Unit:Yen)

Fiscal Year Recycling Fee / Contribution Fee Glass Bottles PET Bottles Paper Containers and Packaging Plastic Containers and Packaging Total
Colorless Brown Other Colors
FYE 2017

Recycling

814,414

708

18,306

631,798

1,465,226

Contribution

0

68

168

47,052

47,288

Total amount

814,414

776

18,474

678,850

1,512,514

FYE 2016

Recycling

770,179

158,548

30,825

292,375

1,251,927

Contribution

0

0

315

13,395

13,710

Total amount

770,179

158,548

31,140

305,770

1,265,637

FYE 2015

Recycling

754,732

16,016

25,416

339,157

1,135,321

Contribution

0

0

107

11,896

12,003

Total amount

754,732

16,016

25,523

351,053

1,147,324

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 including water management). 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.

Participation in the CDP

We participate in the CDP. This is an NGO with the largest database in the world related to environmental information (e.g., water security management of companies). We do this as part of our work to proactively disseminate information about our efforts on ESG for various stakeholders around the world. We have been answering the written inquiries of CDP Water Security to assess water management in the supply chain of companies since FYE 2014.

Performance Data

Scope of Aggregation

○:in scope of aggregation

  Waste volume Paper consumption Water consumption and wastewater discharge
Tokyo headquarters

Osaka headquarters

Branches in Japan*1

Other branches and business facilities in Japan*2

Group companies in Japan*3

Overseas offices*4

Overseas group companies*5

  1. The branches in Japan cover all five domestic branches (Hokkaido, Tohoku, Chubu, Chugoku & Shikoku, and Kyushu).
  2. The other business facilities cover business facilities owned or leased by ITOCHU (except facilities for residences). The number of offices including domestic branches was eight in FYE 2016, eight in FYE 2017, six in FYE 2018 and eight in FYE 2019.
  3. The group companies in Japan cover consolidated subsidiaries directly invested in by ITOCHU (as of March 31, 2017) for FYE 2016 to FYE 2017. The number of such companies was 70 in FYE 2016 and 65 in FYE 2017. All consolidated subsidiaries are covered since FYE 2018 (coverage 100%). The numbers of such companies was 208 in FYE 2018 and 220 in FYE 2019.
  4. The numbers of overseas offices covered was 16 in FYE 2016, 16 in FYE 2017, 15 in FYE 2018, and 30 in FYE 2019.
  5. The overseas group companies cover consolidated subsidiaries directly invested in by ITOCHU (as of March 31, 2017) from FYE 2016 to FYE 2017. The number of such companies was 44 in FYE 2016 and 46 in FYE 2017. All consolidated subsidiaries are covered since FYE 2018 (coverage 100%). The numbers of such companies was 299 in FYE 2018 and 282 in FYE 2019.

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, the non-manufacturing site offices with 10 or fewer employees are quantitatively insignificant. Accordingly, they are not included in the scope of the data.

Water Consumption and Wastewater Discharge

The table below gives the water consumption, gray water production volume and wastewater discharge in the Tokyo Headquarters as well as the wastewater discharge in group companies, overseas offices and overseas group companies from FYE 2016 to FYE 2019. Our Tokyo Headquarters has set a target of reducing its water consumption by 10% compared with FYE 2011 levels. We are reducing our water consumption by introducing devices to save water by using gray water for the water used to flush toilets.

(Unit:m3)

  FYE 2016 FYE 2017 FYE 2018 FYE 2019
City water usage by the Tokyo headquarters★

46,922

52,248

43,039

46,573

Gray water usage by the Tokyo headquarters★

35,729

30,736

33,830

31,225

Wastewater discharge by the Tokyo headquarters★

62,857

63,446

58,129

58,779

Wastewater discharge by group companies in Japan*

981,549

846,700

14,628,762

51,913,278

Wastewater discharge by overseas offices*

5,932

5,722

5,863

5,366

Wastewater discharge by Overseas group companies*

205,394

207,267

11,831,598

34,380,149

  • If we do not know the wastewater discharge, we have calculated it assuming that it is the same as the volume of tap water consumption
  • Due to the increase in the number of companies subject to aggregation, the figure for FYE 2019 has increased significantly compared to FYE 2018.

Effective Utilization of Water Resources

Gray water production facilities have been installed in the Tokyo Headquarters since the time when its construction was completed in 1980. These facilities use kitchen wastewater, rainwater, spring water, and non-fecal wastewater from washbasins and office kitchenettes as raw water. This processed gray water is then used for the flushing water of toilets to effectively utilize water resources.
Changes occur every year in the volume of gray water that can be secured from rainfall. Therefore, when there is not much rainfall, tap water is increasingly used. For that reason, we are striving to save tap water by newly installing equipment to save on the water when washing hands in washbasins in toilets and equipment to automatically save on the water flushed in toilets.

Paper

Paper Consumption

The table below gives our paper consumption for FYE 2016 to FYE 2019 (This is for the Tokyo Headquarters in FYE 2016 and for the total of all ITOCHU bases in Japan from FYE 2017 to FYE 2019). Our Tokyo Headquarters has set a target of reducing its paper consumption by 3% compared with FYE 2011 levels. We are working on reducing our paper consumption by going paperless and ending the use of unnecessary paper.

(Unit: Thousand sheets (A4 equivalent))

  FYE 2016 FYE 2017 FYE 2018 FYE 2019
Copy paper consumption

31,896

34,940

32,949

30,711

Waste

Waste Volume

The table below gives the waste volume generated in the Tokyo Headquarters, group companies in Japan, overseas offices and overseas group companies from FYE 2016 to FYE 2019. ITOCHU promotes the separation of garbage. Our Tokyo Headquarters has set a single year target of reducing its waste volume by 10% compared with FYE 2011 levels. We are working to reduce our waste volume through initiatives such as 2-in-1 and double-sided printing. The Tokyo Headquarters won the Minato Ward Waste Reducing Business Operator Commendation in FYE 2015.

  FYE 2016 FYE 2017 FYE 2018 FYE 2019
Tokyo headquarters building★ Waste volume (Unit: t)

711

674

698

680

Waste non-recycled

36

38

43

48

Waste recycled

675

636

655

632

Recycling rate (Unit: %)

95

94.3

93.8

92.9

Group companies in Japan Waste volume (Unit: t)

23,470

21,947

177,526

4,707,364

Overseas offices Waste volume (Unit: t)

9

33

5

17

Overseas group companies Waste volume (Unit: t)

14,569

10,016

141,392

3,118,634

  • The waste volume of the Tokyo Headquarters includes the amount sold as valuables.
  • Due to the increase in the number of companies subject to aggregation, the figure for FYE 2019 has increased significantly compared to FYE 2018.

Fuel consumption of the ITOCHU Group

FYE 2018 FYE 2019
Kerosene (Unit: kL)

4,001

4,468

Light oil (Unit: kL)

35,577

39,362

Gasoline (Unit: kL)

10,774

12,598

Heavy oil A (Unit: kL)

25,699

18,289

Heavy oil B and C Unit: (kL)

11,711

16,551

Coal (Unit: t)

341,192

333,176

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

6,321

6,614

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

2,454

496

Petroleum hydrocarbon gas (Unit: 1,000 m3)

2,247

1,860

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

1,645

3,161

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

5,762

14,565

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

204,481

33,552

Other gas (Unit: 1,000 m3)

0.017

158

Independent Assurance

Independent Assurance Report (846KB)[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 business facilities of the Tokyo Headquarters, the Osaka Headquarters, branches in Japan, domestic branches and other business facilities, CO2 emissions (attributable to distribution), and the volume of waste discarded, recycling rate, water consumption, gray water production volume and wastewater volume for the Tokyo Headquarters.

Independent Assurance Report (846KB)[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 business facilities of the Tokyo Headquarters, Osaka Headquarters, branches in Japan, domestic branches, other business facilities, group companies in Japan, overseas offices and overseas group companies and the ITOCHU Group in total.

Realty business: Water Usage and Waste Volume

Item Unit FYE 2015 FYE 2016 FYE 2017 FYE 2018 (Reference year) FYE 2019
Actual Apples-to-apples comparison Coverage (actual)
Water usage

Total amount
(Unit: m3)

140,987

154,546

193,347

199,537

208,277

201,383

25.0%

Consumption rate
(Unit: m3/m2)

0.1557

0.1628

0.2027

0.2051

0.2136

0.8400

Waste volume

Total amount (Unit: t)

2

5,934

6,436.4

6,837.4

6,759.6

65.1%

Consumption rate
(Unit: t/m2)

0.0000

0.0062

0.0066

0.0070

0.0069

Recycling rate (Unit: %)

0.0

13.4

17.7

17.6

17.6

  • Data collection period
    The data collection period is from April to March, and the results are updated annually in principle.
  • Calculation method
    1. The consumption rate is calculated as total usage or emissions/total floor area (m2).
    2. Coverage is calculated as follows:
      Coverage (%) = (1) Data collection range (m2)/(2) Maximum possible data collection range (m2)
      1. Data collection range is the floor area of the data collected.

      2. The maximum possible data collection range is the total floor area of the applicable properties.

    3. Comparison under the same conditions:
      1. This is the comparison of energy consumption, GHGs, water consumption and weight of waste for properties we have managed continuously for two years or properties for which we could obtain data for two years in our portfolio.

      2. This comparison does not include properties which we have acquired or disposed of in the past two years, properties which we have developed or refurbished on a large-scale basis, or properties with variations in the data acquisition rates for each reporting year in our portfolio.