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.
In terms of water resources, approximately 97.5% of the water on the earth is seawater. Only 0.01% of water can be used by humans. On the other hand, global water demand is continuing to increase. This is due to economic development and the increase in population focused on emerging nations as well as changes in precipitation patterns due to climate change. ITOCHU considers our water related business to be a priority field. We are deploying seawater desalination business, water treatment business and concession agreement business, which we have been working on since 2014, on a global basis. This is to contribute to solving water problems 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.

  FYE 2018 (Results) Single Year Target Target for the Fiscal Year Ending March 31, 2021
Electricity consumption in our Tokyo and Osaka Headquarters, branches in Japan, other branches and business facilities

Reduction of 2.1% compared to FYE 2017

Reduction by an average of at least 1% a year

Reduction of 30% compared to FYE 2011

Volume of waste discarded by our Tokyo Headquarters

Reduction of 33% compared to FYE 2011

Reduction of 10% compared to FYE 2011

Reduction of 20% compared to FYE 2011

Recycling rate in our Tokyo Headquarters

94%

90%

90%

Paper consumption in our Tokyo Headquarters

Reduction of 9% 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 20.6% 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

5 years (FYE 2018-FYE 2022)/No increase on consumption rate basis

Waste volume

No increase

Annual consumption rate basis

5 years (FYE 2018-FYE 2022)/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.

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 4,510 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

Realty business: Water Usage and Waste Volume

Item Unit FYE 2015 FYE 2016 FYE 2017 FYE 2018 (Reference year) Coverage
(%, FYE 2018)
Water usage

Total amount
(Unit: m3)

140,987

154,546

193,347

199,285

24.7%

Consumption rate
(Unit: m3/m2)

0.1557

0.1628

0.2027

0.2048

Waste volume

Total amount (Unit: t)

2

5,934

6,436

64.9%

Consumption rate
(Unit: t/m2)

0.0000

0.0062

0.0066

Recycling rate (Unit: %)

0.0

13.4

17.7

  • 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)
      ①Data collection range is the floor area of the data collected.
      ②The maximum possible data collection range is the total floor area of the applicable properties.

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 Reference: FYE 2018 (Without the Fire)
Quantity recycled

Waste volume generated (Unit: t)

959.9

828.2

1,816.9

815.9

Amount of recycling (Unit: t)

567.7

544.9

620.6

620.6

Waste volume (Unit: t)

392.2

283.3

1,196.3

195.3

Target (recycling rate target by individual food related operator)

Reference rate

74.8%

75.8%

76.8%

76.8%

Percentage recycled

Recycling rate

64.3%

70.6%

34.2%

76.1%

  • In FYE 2018, 1001.0 tons were discarded in our rice and barley wholesale and cereal wholesale businesses due to a warehouse fire. We have also given the numerical figures with the impact of this fire excluded for reference.
  • FYE 2019 recycling rate target: 77.8%

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

Efforts in water-stressed regions

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.

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 Financial 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

Fuel consumption of the ITOCHU Group.

Results From April 2017 to March 2018
Kerosene (Unit: kL)

4,001.145

Light oil (Unit: kL)

35,577.67

Gasoline (Unit: kL)

10,774.21

Heavy oil A (Unit: kL)

25,699.25

Heavy oil B and C Unit: (kL)

11,711.7

Coal (Unit: t)

341,192.93

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

6,321.939

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

2,454.347

Petroleum hydrocarbon gas (Unit: 1,000 m3)

2,247.578

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

1,645.845

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

5,762.7

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

204,481.7

Other gas (Unit: 1,000 m3)

0.017

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 2015 to FYE 2018. 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 2015 FYE 2016 FYE 2017 FYE 2018
City water usage by the Tokyo headquarters★

45,501

46,922

52,248

43,039

Gray water production by the Tokyo headquarters★

36,658

35,729

30,736

33,830

Wastewater discharge by the Tokyo headquarters★

64,329

62,857

63,446

58,129

Wastewater discharge by group companies in Japan*

1,042,686

981,549

846,700

14,628,762

Wastewater discharge by overseas offices*

9,679

5,932

5,722

5,863

Wastewater discharge by Overseas group companies*

339,543

205,394

207,267

11,831,598

  • 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

Scope of Aggregation

○:in scope of aggregation

  Electricity consumption CO2 emissions from business facilities 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 12 in FYE 2015, eight in FYE 2016, eight in FYE 2017 and six in FYE 2018.
  3. The group companies in Japan cover consolidated subsidiaries directly invested in by ITOCHU (as of March 31, 2017) for FYE 2015 to FYE 2017. The number of such companies was 73 in FYE 2015, 70 in FYE 2016 and 65 in FYE 2017. All consolidated subsidiaries are covered for FYE 2018 (coverage 100%). The number of such companies was 208.
  4. The overseas offices cover major business offices overseas. The number of such offices was 16 in FYE 2015, 16 in FYE 2016, 16 in FYE 2017 and 15 in FYE 2018.
  5. The overseas group companies cover consolidated subsidiaries directly invested in by ITOCHU (as of March 31, 2017) from FYE 2015 to FYE 2017. The number of such companies was 49 in FYE 2015, 44 in FYE 2016 and 46 in FYE 2017. All consolidated subsidiaries are covered in FYE 2018 (coverage 100%). The number of such companies was 299.

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 CO2 emissions of non-manufacturing site offices with 10 or fewer employees are quantitatively insignificant. Accordingly, they are not included in the scope of the data.

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 2015 to FYE 2018 (This is for the Tokyo Headquarters from FYE 2015 to FYE 2016 and for the total of all ITOCHU bases in Japan from FYE 2017 to FYE 2018). 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 2015 FYE 2016 FYE 2017 FYE 2018
Copy paper consumption

34,575

31,896

34,940

32,949

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 2015 to FYE 2018. 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 2015 FYE 2016 FYE 2017 FYE 2018
Tokyo headquarters building★ Waste volume
(Unit: t)

654

711

674

698

Recycling rate
(Unit: %)

95

95

94.3

93.8

Group companies in Japan* Waste volume
(Unit: t)

21,825

23,470

21,947

177,526

Overseas offices Waste volume
(Unit: t)

7

9

33

5

Overseas group companies Waste volume
(Unit: t)

14,271

14,569

10,016

141,392

  • The waste volume of the Tokyo Headquarters includes the amount sold as valuables.

There were no water related accidents, troubles or lawsuits such as regulations on water quality in our company.