Sustainability Action Plans

As a concrete initiative to address the material issues we have identified, we embed these issues into the Sustainability Action Plan for each business sector. Each company deduces the risks and opportunities associated with critical sustainability issues in each business sector, formulates a Sustainability Action Plan that stipulates the approach and success indicators to achieve their medium- and long-term commitments, and holds semi-annual review meetings for each unit affected by the plan. This implementation of the PDCA cycle advances sustainability.
In addition, each unit—headquarters administrative divisions, domestic branches and offices, overseas locations, etc.—formulates a Sustainability Action Plan according to its business and function, the goal being to further entrench the foundations supporting business activities.

After the Materiality is identified, we reflect it in sustainability action plans in each business area as specific measures for contributing to the solution of social issues.
We promote sustainability by defining the Commitment, which shows how we achieve medium- and long-term growth and provide value to society, and specific approach and performance indicators for achieving the Commitment.

Narrow down by Materiality

Narrow down by Sections

Evolve businesses through technological innovation

Risks Opportunities
  • Obsolescence of existing business models resulting from the emergence of new technologies, such as IoT and AI.
  • Labor shortage in developed countries, loss of excellent human resources in businesses in which efficiency improvement is delayed. And others.
  • Creation of new markets and provision of innovative services.
  • Utilizing new technologies for optimizing human resources and logistics, increasing competitiveness by promoting work style reform. And others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Next-generation business Development Textile Company State-of-the-art technologies (IoT) We will build a production IT infrastructure that will be a common platform of the supply chain and strive to improve added value and promote sustainable industrialization. Introduce the production IT infrastructure to the main bases of the Group and contribute to the improvement of Product, Lifecycle and Management. Visualize the supply chains of the overall Group to reduce costs, improve quality, and reduce lead time, thereby developing a supply system that can cater to market needs. We were aiming to start operation in June 2019. However, the installation work and system training took time. Therefore, we actually started operation in January 2020. IPA Hong Kong has started utilizing this with business that utilizes the production background of IPA Vietnam. We plan to roll this out in other areas in sequence.
State-of-the-art technologies (IC tag, RFID, and EC businesses) We will utilize next-generation technologies, such as Radio Frequency IDentification (RFID) tags, to contribute to improved efficiency, not only in the apparel industry but also in the associated logistics industry. Improve production and sales efficiency by making use of AI, and in addition, accelerate the dissemination of RFID tags in the clothing industry, in an effort to increase the trading volume. Make use of AI and disseminate the use of RFID tags, thereby improving production and operating efficiency in the supply chain, traceability, and sales capabilities. We sold 60 million RFID tags in FYE 2020. We gave proposals to improve operational efficiency (e.g., supply chain optimization and an improvement in the accuracy of understanding inventory). We have started examining a partnership with an overseas company concerning the tag material to introduce eco-friendly goods that do not require garbage separation.
Food Company Overall food-related businesses
  • We will aim to improve productivity and efficiency by utilizing RPA and AI proactively.
  • We will aim to create innovative services and new business by integrating resources and new technologies of the ITOCHU Group.
  • We will improve productivity and optimize operations by introducing and utilizing new technologies in the distribution field in which labor shortages are becoming more serious.
  • We will create unique new value by combining the wide ranging product lineup, functions and expertise of our group based on retail customer needs.
  • Promotion of further business processing re-engineering utilizing RPA and AI.
  • Promotion of the development of new products and new services through the food wholesale business developed by the ITOCHU Group.
  • We are working to improve productivity and to optimize business. For example, we are proactively introducing RPA in the group - including in subsidiaries and associated companies.
  • We are promoting the optimization of distribution centers and the computerization of paper information to save labor. In addition, we are working to reduce delivery vehicles by continuously optimizing delivery routes.
  • We are providing marketing tools that improve the convenience of consumers to retail customers through our group food wholesale company.
ICT & Financial Business Company Business incubation through venture investment, focused on FinTech, IoT, AI and etc. We will try to create new industries with acquiring cutting-edge innovations and business models such as IoT, AI, and FinTech. Seeking chance to invest in and make partnerships with startups, in order to develop new businesses. Realization of new service and business developments. Continuing from the previous fiscal year, we have increased new overseas VC investments (e.g., in new technology and healthcare fields). We have made over ten investments. We are currently working with these companies to develop new businesses. In particular, this fiscal year, we plan to develop fintech-related services. This will contribute to developing new solutions and increasing profits, by improving operational efficiency of retailers and e-commerce operators.
The 8th Consumer related business We will aim to create innovative services and new business by integrating assets and new technologies of the ITOCHU Group. Increase contact with consumers by promoting the retail business in our efforts to understand consumer behaviors, and combine the wide range of products, functions, and expertise of the Group to create unique new value that will be profitable for consumers and communal society. Aim to develop new businesses and cultivate new customers by taking full advantage of the business foundations possessed by the ITOCHU Group. We are currently promoting a digital strategy in FamilyMart - the subsidiary. We released the FamiPay smartphone app with barcode payment in July 2019. We have achieved labor savings in FamilyMart stores. For example, register service time has been reduced to one third of what it was before.
In addition, we have already promoted inbound business and released a capital and business alliance with a startup that has independently developed a humanoid AI agent with advanced recognition technology.

Address climate change (contribute to realization of low-carbon society)

Risks Opportunities

Transition risk

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

Physical risk

  • Damage to business due to the increase in abnormal weather (e.g., droughts, flooding, typhoons and hurricanes)
  • Increase in renewable energy and other business opportunities which will contribute to alleviating climate change
  • Retention and acquisition of customers by strengthening supply structures that can adapt to abnormal weather
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Icon
Taking countermeasures against climate change Machinery Company 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.
Icon
Machinery Company 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.
Icon
Icon
Metals & Minerals Company
  • 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.
Icon
Taking countermeasures against climate change Energy & Chemicals Company 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.
Icon
Efforts to optimally and continuously supply renewable energy Energy & Chemicals Company 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.
Icon
Taking countermeasures against climate change Food Company 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 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.

Cultivate a motivating workplace environment

Risks Opportunities
  • Decline in labor productivity, loss of excellent human resources, missed business opportunities, increase in health-related expenses, and other events that would result from failure to take appropriate measures, and others.
  • Improvement of labor productivity and health and motivation, securing of excellent human resources, enhanced capability of responding to changes and business opportunities, and other events that will result from the creation of a workplace that provides job satisfaction, and others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Improving operating efficiency and addressing the issue of long-working hours through work style reform Headquarters Human Resources Affairs We will promote a well-balanced working style and reduce the total number of working hours, aiming to improve employee engagement.

<ITOCHU Corporation>

  • Promote the morning focused working system.
  • Conduct regular monitoring of employees' work situations.
  • Promote work automation with IT tools, including the robotic process automation (RPA), as well as mobile work.
  • Promote projects for improving the operating efficiency at each organization.

<ITOCHU Group>

  • Efficient way of working, appropriate working hours management, and educational and awareness-raising activities at the ITOCHU Group.
  • FYE 2021: Reduce the annual average overtime hours by at least 10% compared to the period prior to the introduction of the morning-focused working system.
  • FYE 2021: Percentage of employees who leave the office building at 20:00 or later at 5% or fewer.
  • FYE 2021: Paid leave acquisition rate at 70% or higher.
  • Rate of positive responses to the "employee engagement" item in the engagement survey: 70% or higher.

<ITOCHU Corporation>

  • We have reduced annual average overtime hours by 11% compared to before the introduction of the morning-focused working system (achieved in FYE 2018).
  • We have 5% of employees leaving the building after 8 p.m. (FYE 2019).
  • We have 67% of employees acquiring paid leave (FYE 2019).
  • We plan to complete approximately 100 scenarios in FYE 2019 for RPA. We will also introduce a data analysis tool (HANABI). We are currently running 151 scenarios. (As of February 2020)
  • In FYE 2019, we plan to implement BPR (business improvement) at the organization level in three divisions (Fresh Food Division, Automobile, Construction Machinery & Industrial Machinery Division and Apparel Division).
  • The positive answer rate to the "Employee Engagement" item from the FYE 2019 Engagement Survey was 76%. *We did not conduct a survey in FYE 2020. The latest data is for FYE 2019.
Improving the health of employees Headquarters Human Resources Affairs We will improve the health of employees to create an environment that will enable individual employees to better demonstrate their capabilities. We will build a system that helps employees with cancer or long-term illness to create a balance between treatment and work, thereby fostering a culture of mutual support.
  • Keep the percentage of employees who receive regular medical checkups at 100%.
  • Establish well-equipped in-house clinics and a system for supporting each employee in receiving personalized medical care.
  • Promote measures for helping employees create a balance between cancer treatment and work.
  • Offer healthy dishes in the employee cafeteria.
  • Promote the program for supporting smoking cessation treatment expenses.
  • Utilize health management web tools for employees and continue to provide special programs for employees at a high risk for lifestyle-related diseases.
  • Percentage of employees who receive regular medical checkups: 100%.
  • FYE 2021: Improve health indicators (such as BMI) compared to FYE 2017 values.
  • FYE 2021: Percentage of employees who leave work due to cancer or long-term illness at 0%.
  • FYE 2021: Rate of employees found to have a high level of stress in the stress check at 5% or lower.
  • Regular medical checkup rate: 100% in FYE 2020.
  • Rate of improvement in the health index (e.g., BMI) compared to FYE 2011: -2% in FYE 2019.
  • Support for working while receiving cancer care: Job turnover due to cancer and long-term illnesses continues to be 0%.
  • Rate of those found to have a high level of stress in the stress check: 2.9% in FYE 2020.
  • Health management web tools for employees utilization: We are continuing to run a program for those at a high risk for lifestyle-related diseases among young employees and we expanded the scope to include those who are subject to specific health guidance (a total of 115 participants in FYE 2020). We held a company-wide walking event.
Sustainable development of employees' capabilities Headquarters Human Resources Affairs We will develop training programs on a global basis that respond to the changing times and business needs. We will also utilize training programs to continuously produce excellent human resources.
  • Continue to develop and provide training programs at all jobs levels.
  • Continue and enhance overseas deployment of interns and language trainees.
  • Offer diverse career path options and experience in diverse works through regular rotation.
  • Foster career awareness among employees by enhancing personnel assessment, career vision training, career counselling systems and other programs/systems.
  • FYE 2021: Annual E&D expenses exceeding one billion yen.
  • Rate of positive responses to the "education and training" item in the engagement survey: 60% or higher.
  • FYE 2021: Percentage of career-track employees who acquire business-level English skills in their first eight years at the company at 100%.
  • FYE 2021: Percentage of career-track employees who are deployed overseas in their first eight years at the company at 80% or higher.
  • The positive answer rate to the "Education and Training" item from the FYE 2019 Engagement Survey was 71%. *We did not conduct a survey in FYE 2020. The latest data is for FYE 2019.
  • We have been continually reviewing and developing training programs (e.g., the trial introduction of next-generation related training).
  • We are running a trial to provide video content as part of career vision training with an eye on a learning environment that meets the diverse needs of our employees.

    Below is the outlook current as of February 20 in FYE 2020:

  • Annual E&D expenses forecast ⇒ Over approximately 1.2 billion yen
  • Acquisition rate of business level English skills for career-track employees in up to their eighth year since joining the company ⇒ 100%
  • Overseas dispatch rate for career-track employees in up to their eighth year since joining the company ⇒ 80%
Icon
Icon
Icon
Creating an environment that allows diverse human resources to exercise their potential Headquarters Human Resources Affairs We will prohibit all types of discrimination, including those based on age, gender and nationality, and respect human rights. We will create an environment that will permit the active participation of employees whose work hours are limited due to childcare, nursing care, diseases or similar circumstances.
  • Continue fair and equitable recruitment and promotion.
  • Create a work climate of mutual respect and support.
  • Reasonable accommodations concerning the work environment of people with disabilities.
  • Respond to LGBT considerations and provide employee training on LGBT.
  • Enhance on-site day-care centers and nursing care support services.
  • Enhance individual support for employees provided in accordance with their life stage and career.
  • Promote flexible ways of working by making use of mobile work.
  • Support the active participation of senior human resources over 65 years old.
  • FYE 2021: Percentage of female career-track employees among all career-track employees: 10%.
  • FYE 2021: Percentage of female career-track employees among employees in leadership positions at 10%.
  • FYE 2021: Proportion of our workforce with disabilities at 2.3%.
  • The percentage of female career-track employees among all career-track employees is 9.7% (as of January 2020).
  • The percentage of female career-track employees among those in leadership positions is over 8.1% (as of January 2020).
  • Proportion of our workforce with disabilities: 2.16% as of February 2020 (insufficient by one person)
  • We have been applying to make IHGS applicable as a special subsidiary in our group since February 2020. We achieved the required number of hires as of February 2020 in the three companies of ITOCHU, Uneedus and IHGS. We will continue to promote the employment of those with disabilities over our entire group.

Respect human rights

Risks Opportunities
  • Business delay or business continuity risk resulting from the occurrence of a human rights problem in business activities that expands (geographically).
  • Decline in credibility that may result from defects in the social infrastructure services we provide. And others.
  • Stabilization of business or securing of excellent human resources resulting from harmonious coexistence with local communities.
  • Establishment of safe, stable supply system for product enabled by the consideration of human rights and improvement of work environment in the supply chain. And others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Textile Company Supply chain management We will promote information-sharing in the overall Group and establish a safe, secure supply chain, thereby helping customers with risk reduction and contributing to sustainable economic development. Make Group-wide efforts to review the social and environmental safety of the supply chain and make improvements as necessary, thereby promoting the establishment of a safe, secure commodity supply system. FYE 2024: Establish and visualize the supply chain of the overall Group, from material procurement to sales, to ensure a responsible procurement policy. We implemented this in 50 companies in Southwest Asia (e.g., Vietnam and Indonesia) compared to the 80 companies that was our target in FYE 2020. Separately, we conducted a fact-finding investigation questionnaire on the status of compliance with the Labor Standards Act and Industrial Safety and Health Act for foreign technical intern trainees in 211 sewing plants in Japan.
Icon
Icon
Improving water and hygiene infrastructures Machinery Company Water and environmental projects We will contribute to improving the hygiene environment, the development of economic activities, and the protection of the global environment through the appropriate treatment and effective use of water and waste. Expand water and environment projects to promote the appropriate use and treatment of water and the effective utilization of resources, and reduce the environmental impact. Expand and diversify the investment portfolio in the water and environment field.

Water Field

We own a water supply service business in the U.K. and Spain and a seawater desalination business in Australia and Oman. We are continuing to work to expand our seawater desalination and water supply/sewerage business.

Environment Field

We operate four waste incineration and power generation business projects in the U.K. In addition to this, we entered into a financing contract for a public-private partnership (PPP) waste disposal power generation project in Belgrade, Serbia in September 2019. We are aiming for operation in 2022.
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Machinery Company Overall electric power and plant projects We will contribute to improving the quality of life of all stakeholders in the supply chain and business investment destinations. Set rules on due diligence related to social and business environmental safety for suppliers and business investment destinations based on the distinctive characteristics of each business, implement due diligence, and strengthen monitoring continuously. FYE 2020: Aim to implement the due diligence described on the left in all new development projects. We are continuing operations to check the core subjects in the guidelines on social responsibility using the company-wide ESG checklist in all development projects where we are investing for the first time. We are conducting due diligence on individual development projects to check their social and environmental safety based on the unique characteristics of each business prior to investment.
Icon
Icon
Sustainable mine development that reflects consideration of the risks in occupational safety and health and environmental risks, and that contributes to local communities Metals & Minerals Company Mining business
  • We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which we operate.
  • We will improve local infrastructure such as medical care and education.
  • Ensure the thorough application of the EHS guidelines.
  • Contribute to local communities through activities for improving medical care, education and infrastructure.
  • Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • Donations to medical care, education and build infrastructure in local communities.
  • We held internal EHS (Environment, Health and Safety) training courses for supervisors and company employees belonging to sections engaged in resource development. The attendance rate of those subject to this training was 100%.
  • We checked the proper compliance to the EHS guideline by one new project and eight existing projects in our mining business, and also by one another resource-related project.
  • We carried out activities that contribute to the local community as part of each project we invest in.
  • As a special initiative, our Australian subsidiary, ITOCHU Minerals & Energy of Australia Pty. Ltd., together with other local group companies, contributed A$200,000 in total to the Australian Red Cross Society as support to recover from the damage caused by the Bushfires.
Icon
Establishment of an energy resources development system that goes well with local society and environment Energy & Chemicals Company Exploration & Production of Oil & Gas Contributing in the development of local society by advancing exploration & production projects that accommodate social and environmental concern. Implementation of projects in compliance with the laws and regulations of the respective government and internationally-recognized administrative body.
  • Be compliant with HSE (Health, Safety and Environment) standards in the respective government and the ones set by internationally-recognized administrative body.
  • Reduction of HSE issues that involve serious damage to human beings and/or environment.
  • We are appropriately complying with the HSE management standards of the government and management body in each country.
  • We are managing the number of incidents, their severity and content monthly in accordance with in-house regulations. (There have been no serious operational incidents as of the end of January 2020 in this fiscal year.)
Icon
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Food Company Provisions field We will develop a procurement structure compliant with third-party body certification and supplier-specific codes of conduct.
  • We will promote procurement compliant with supplier-specific codes of conduct in coffee bean producing countries.
  • We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
  • We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.
  • Coffee beans: Promotion of procurement compliant with supplier-specific codes of conduct in our bases in producing areas in cooperation with suppliers.
  • Palm oil: Promotion of progress information disclosure upon also clarifying the KPI indicators by publishing our procurement policy.
  • We are currently giving guidance to producers in each producing area country to meet the certification standards. The aim of this is to expand transactions for certified coffee beans (e.g., those of the Rainforest Alliance and C.A.F.E Practice).
  • We have published our procurement policy with our started target of switching all the palm oil we procure to sustainable palm oil supplied from supply chains compliant with RSPO/MSPO/ISPO by FYE 2026. We are promoting the construction of procurement and supply structures in light of industry trends and the situation in suppliers.
Fresh food field We will contribute to increased employment and an improved living environment by fostering local industries. We will cultivate new producing areas. We will do this to expand employment and improve the living environment through diversification of producing areas in light of weather risks and through the development of local industries in our Dole business. Aim for the start of the commercial production and export of pineapple processed foods in FYE 2022 by cultivating pineapples in Sierra Leone as the cultivation of a producing area followed by the development program in the Philippines. We are promoting the expansion of a pineapple farm and the construction of a pineapple processed food manufacturing plant in Sierra Leone.
Icon
Urban development in the Jingu Gaien district Headquarters Rebuilding of our Tokyo headquarters by participating in the Jingu Gaien District City Area Redevelopment Project We will strive to contribute to the community through the realization of prosperous complex urban development focused on sports, culture and communication. Communicate appropriately with stakeholders and acquire permissions  in the redevelopment study process. Submit the necessary applications and acquire the necessary permissions (e.g., plan proposal, execution permission application and redevelopment execution permission). We appropriately communicated with stakeholders in the examination of the redevelopment and conducted negotiations to obtain the necessary permissions. We plan to submit the application and acquire the permissions from FYE 2021 to FYE 2024.

Contribute to healthier and more enriched lifestyles

Risks Opportunities
  • Decline in credibility that would result from the occurrence of a problem related to the safety or health of consumers and service users.
  • Impact on business of destabilization of the market or social security system based on policy change. And others.
  • Increase in demand for food safety and security and health improvement.
  • Expansion of information, financial and logistics services resulting from an increase in consumer spending or penetration of the Internet. And others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Promoting good health among people Machinery Company Sales of Cutting-Edge medical devices and provision of medical services We aim to improve quality of life by providing cutting-edge medical devices and advanced medical services in the field of medical care, where technologies are innovated rapidly. Promote sales of advanced medical devices, such as MRI-guided radiation therapy systems, and the business of supporting the operation of designated regional cancer care hospitals. Increase the penetration of advanced medical devices in Japan, such as MRI-guided radiation therapy systems. Currently operating at National Cancer Center and Edogawa Hospital. More than 300 patients are treated including intractable cancer (ex. pancreatic cancer). Since the technology is promising, Edogawa Hospital is now upgrading the system, which expected to operate in December 2020. With joint research with the National Cancer Center, we are on the way to establish the standard procedure to cure intractable cancers.
Energy & Chemicals Company Pharmaceutical products Contributing to the improvement of people’s health and working environment through accelerating the development of pharmaceuticals and other products in fields with significant needs including cancer-related fields. Actively promoting to support the development and marketing of new pharmaceutical and other products. Aiming to obtain approvals in Asia and North America for new pharmaceutical and other products of which we are engaged in supporting the development, and to launch them into the market.
  • We started selling a non-absorptive liquid to protect against oral mucositis (a liquid that controls and relieves the pain of oral mucositis caused by chemotherapy or radiotherapy when treating diseases such as cancer) in group companies (from May 2018 in Japan, from July 2019 in China and scheduled for sale in the future in Korea).
  • We started full-scale sales with FDA approval in North America of a pain reliever through group companies (from March 2018).
  • We started the sale in China of a percutaneous absorption 5-HT3 receptor antagonist (therapeutic medication for nausea and vomiting during cancer treatment) (from March 2019). This drug has been newly listed as a treatment choice in the Guidelines for the Treatment of Nausea and Vomiting During Cancer Treatment (published by the Chinese Society of Clinical Oncology in June 2019).
ICT & Financial Business Company
  • Support pharmaceutical development projects
  • Business of providing health care management solutions for individuals
We will provide value-added services for pharmaceuticals and medical sites, and will contribute to improvement of people's Quality Of Life (QOL) by utilizing cutting-edge ICT tools. We will optimize healthcare utilizing medical data.
  • Realization of new services and business development relating to medical data
  • Expansion of existing business (number of people subject to health checkup data management to reach 1 million by the end of FYE 2021)
  • With the interest to maintain and promote health continuing to grow in company employees, the number of persons subject to health checkup data management is steadily increasing. We expect this to reach 750,000 persons by the end of FYE 2020.
  • We have carried out investments including, SaaS for dispensing pharmacies, dentistry-related data, genomic data and pharmaceutical data. We will contribute to improve the quality of life with highly efficient operations by utilizing the aforementioned data.
Supplying safe, secure food Food Company Overall food-related businesses We will select and concentrate on suppliers who are capable of manufacturing and supplying safe, secure food stably. Increase the number of persons with international certifications/qualifications related to audit the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers. Promotion of the appropriate appointment of the auditors in each sales division under the guidance of the ITOCHU food safety management organization. The number of people who have acquired the assistant auditor increased by one in FYE 2020. We plan to increase this by two people in FYE 2021. We expect the total number of qualified persons over our entire group to reach nine.
Icon
Maintenance of industrial, logistics, and transportation infrastructure ICT & Financial Business Company ICT infrastructure construction business We will contribute to realize safe secure, and highly convenient social infrastructure through providing various ICT solutions. Continue to enhance the value of ICT solutions with maximizing new product/service sourcing functions. Increase the number of procurement partners. We have newly located seven sourcing companies which provide ICT solutions and RPA to reinforce information security this fiscal year (e.g., in systems management field).
Icon
Providing financial services ICT & Financial Business Company Domestic and overseas retail finance business We work on expanding and creating the retail financial market and providing financial services to individuals to contribute to enriching people's lives. Increase the number of customers and loan balance by expanding and creating the retail financial market. Increase the number of customers and loan balance.

We have started new efforts in retail finance business in the Philippines and the P2P lending business in Indonesia since the previous fiscal year. We have improved the number of customers and loan balance, which are also our KPI in our other existing businesses.

Growth rate of outstanding lendings:
(Changes from end of December 2018 to end of December 2019)

  • UAF: 107%
  • EasyBuy: 106%
  • FRF: 114%
  • ACF: 722% *Operations initiated in FYE 2019
  • PDP: 481% *Operations initiated in FYE 2019
Icon
Energy use that takes into consideration local communities and the environment Headquarters District heating and cooling We will promote efforts toward environmentally friendly regional energy use. Communicate appropriately with neighboring stakeholders in the Jingu Gaien district. Submit a plan proposal that gives our specific energy plan in the redevelopment to the Tokyo Metropolitan Government. We started discussions with the relevant stakeholders to spread and promote district heating and cooling to neighboring areas.
Icon
Energy & Chemicals Company Maintain the stable operations of district heating and cooling in the Jingu Gaien district and promote the spread of it to neighboring areas. We have started discussions with the relevant stakeholders to spread and promote district heating and cooling to neighboring areas.

Ensure stable procurement and supply

Risks Opportunities
  • Impact of opposition movement resulting from the occurrence of an environmental problem and worsening relationship with local communities.
  • Structural exhaustion of the overall industry caused by the occurrence of price competition, mainly in the consumer-related sector. And others.
  • Increase in resource demand attributed to an increase in population and improvement of living standard in emerging countries.
  • Winning customer trust or creating new businesses with a stable supply of environmentally friendly resources and materials. And others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Stable supply of industrial resources and materials Textile Company Environmentally friendly materials (sustainable materials) such as recycled fibers We will accelerate initiatives for the recycled fiber business, not only to create new businesses but also to help solve the global problem of apparel waste and reduce petroleum-derived materials. Work aggressively on the recycled fiber business and lead the industry in promoting the use of sustainable materials. Commercialize the recycled fiber business as soon as possible. Increase the ratio of sustainable materials to materials we trade. We strengthened the supply chain from raw materials to products with a focus on sustainable raw materials. We launched the RENU project and are currently expanding the marketing of recycled polyester globally.
Metals & Minerals Company Mining business We will contribute to the stable operation of various industries by maintaining and developing reliable supply chains for essential raw materials and fuels. Acquire equity interests in superior projects to secure resources to form the basis for the steady supply of raw materials and fuels. Acquisition of superior resource projects to pass on to the future generations, in addition to maintaining and expanding our existing portfolio of highly resilient mining projects.
  • For the purpose of acquiring superior interests that will lead to the next generation, we have decided to invest in the Longview coking coal mine in the U.S. owned by North Central Resources, LLC.
  • This coal mine will produce high-quality coking coal at strong cost competitiveness.
Provision of commodities that help achieve a sustainable lifestyle Textile Company Brand marketing business We will contribute to increasing the visibility of a sustainable lifestyle by taking advantage of our strengths as a marketing company. Raise awareness of an ethical, sustainable lifestyle through brand business, thereby promoting awareness-raising not only in the overall industry but also among consumers. FYE 2021 : Take initiatives with new brands. Have a sustainable lifestyle understood and instilled more widely. We have not entered into a contract with a new brand. However, we have realized cases using the fabric of FOOD TEXTILE that reuses ingredients scheduled to be discarded as dyes in our main brand of CONVERSE shoes.
Efforts leading to solutions to social problems Energy & Chemicals Company Plastic-related environmental response We will aim to establish a recycling and reuse model. We will supply recycled resin in collaboration with brand owners. Establishment of a recycling program and sales of recycled resin. * Because of new commitment, review will be conducted from the next fiscal year.
Icon
Using sustainable forest resources General Products & Realty Company
  • Wood products & materials
  • Pulp
  • Woodchips
We deal in sustainable forest resources to reduce the impact on the environment and prevent the increase of greenhouse gases.
  • Continue to request suppliers who have yet to obtain certifications to obtain them.
  • Conduct sustainability surveys of suppliers and visit them.
FYE 2026: Aim to achieve a rate of 100% for certified or under high-level management materials that we handle.
  • Wood products & materials: We are continuing to encourage and review suppliers. We established a path to achieving ahead of schedule a rate of 100% for certified or under high-level management wood products & materials that we handle in FYE 2021.
  • Pulp and woodchips: We achieved a rate of 100% for certified or under high-level management materials that we handle.
Icon
Icon
Realization of sustainable supply of natural rubber General Products & Realty Company Natural Rubber We shall use our best efforts to establish measures to identify any suppliers developing on High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland, in order to avoid procuring rubber from them. We will establish a traceability system to make uncertain raw material procurement supply chain tranceparet. We aim to procure raw materials with traceability and sustainability ensured in natural rubber processing business. We are developing a traceability system using blockchains. We plan to introduce this around the second quarter of FYE 2021.
Icon
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Textile Company Supply chain management We will promote information-sharing in the overall Group and establish a safe, secure supply chain, thereby helping customers with risk reduction and contributing to sustainable economic development. Make Group-wide efforts to review the social and environmental safety of the supply chain and make improvements as necessary, thereby promoting the establishment of a safe, secure commodity supply system. FYE 2024: Establish and visualize the supply chain of the overall Group, from material procurement to sales, to ensure a responsible procurement policy. We implemented this in 50 companies in Southwest Asia (e.g., Vietnam and Indonesia) compared to the 80 companies that was our target in FYE 2020. Separately, we conducted a fact-finding investigation questionnaire on the status of compliance with the Labor Standards Act and Industrial Safety and Health Act for foreign technical intern trainees in 211 sewing plants in Japan.
Icon
Icon
Sustainable mine development that reflects consideration of the risks in occupational safety and health and environmental risks, and that contributes to local communities Metals & Minerals Company Mining business
  • We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which we operate.
  • We will improve local infrastructure such as medical care and education.
  • Ensure the thorough application of the EHS guidelines.
  • Contribute to local communities through activities for improving medical care, education and infrastructure.
  • Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • Donations to medical care, education and build infrastructure in local communities.
  • We held internal EHS (Environment, Health and Safety) training courses for supervisors and company employees belonging to sections engaged in resource development. The attendance rate of those subject to this training was 100%.
  • We checked the proper compliance to the EHS guideline by one new project and eight existing projects in our mining business, and also by one another resource-related project.
  • We carried out activities that contribute to the local community as part of each project we invest in.
  • As a special initiative, our Australian subsidiary, ITOCHU Minerals & Energy of Australia Pty. Ltd., together with other local group companies, contributed A$200,000 in total to the Australian Red Cross Society as support to recover from the damage caused by the Bushfires.
Establishing a supply chain reflecting consideration for human rights and the environment Food Company Provisions field We will develop a procurement structure compliant with third-party body certification and supplier-specific codes of conduct.
  • We will promote procurement compliant with supplier-specific codes of conduct in coffee bean producing countries.
  • We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
  • We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.
  • Coffee beans: Promotion of procurement compliant with supplier-specific codes of conduct in our bases in producing areas in cooperation with suppliers.
  • Palm oil: Promotion of progress information disclosure upon also clarifying the KPI indicators by publishing our procurement policy.
  • We are currently giving guidance to producers in each producing area country to meet the certification standards. The aim of this is to expand transactions for certified coffee beans (e.g., those of the Rainforest Alliance and C.A.F.E Practice).
  • We have published our procurement policy with our started target of switching all the palm oil we procure to sustainable palm oil supplied from supply chains compliant with RSPO/MSPO/ISPO by FYE 2026. We are promoting the construction of procurement and supply structures in light of industry trends and the situation in suppliers.
Fresh food field We will contribute to increased employment and an improved living environment by fostering local industries. We will cultivate new producing areas. We will do this to expand employment and improve the living environment through diversification of producing areas in light of weather risks and through the development of local industries in our Dole business. Aim for the start of the commercial production and export of pineapple processed foods in FYE 2022 by cultivating pineapples in Sierra Leone as the cultivation of a producing area followed by the development program in the Philippines. We are promoting the expansion of a pineapple farm and the construction of a pineapple processed food manufacturing plant in Sierra Leone.

Maintain rigorous governance structures

Risks Opportunities
  • Occurrence of business continuity risk or unexpected loss resulting from the malfunction of corporate governance or internal control, and others.
  • Improvement of transparency in decision-making, appropriate response to changes and establishment of a stable basis of growth enabled by the establishment of a firm governance system, and others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Ensuring compliance Headquarters Compliance We will make employees more aware that ensuring compliance at any time is our contribution to the company and society. Recognizing attitude of employees identifying issues and ensuring action plans to tackle the issues through periodic compliance attitude survey and direct communications. Continuous direct communication with employees through face-to-face training programs whose contents shall be updated along with monitoring the measures according to risks, expectations from society and issues on site which will change with the time.
  • Registered with the Whistleblowing Compliance Management System (self-declaration of conformity) on April 10, 2019.
  • We monitored all ITOCHU Corporation for bribery and corruption in July and August 2019. We confirmed the application status under the Public Officer and Foreign Public Officer Guidelines, Business Partner Guidelines and Investment Guidelines based on certificates. We found no major problems as a result of that.
  • We conducted compliance attitude survey on 57,781 employees in ITOCHU Corporation and group companies in August and September 2019. The number of employees subject to this survey increased by approximately 14,000 compared to the previous survey (FYE 2018). The response rate was 94.9%. This exceeded the response rate for the previous survey (93.4%).
  • We provided e-learning on dealing with bribery and corruption and organized crime for ITOCHU Corporation employees (January 31 to February 29, 2020).
  • The situation concerning the implementation of training tours in FYE 2020 is as follows.
    For ITOCHU Corporation : Implemented 53 times with 2,198 attendees
    For ITOCHU group companies (implemented in 84 companies): Implemented 195 times with 10,715 attendees
Maintaining and reinforcing a governance system for achieving sustainable growth Headquarters Corporate governance We will implement highly effective supervision over the management from an independent and objective standpoint and ensure the appropriate and efficient execution of business operations by improving the transparency of our decision-making, aiming to our sustainable growth as well as the medium- and long-term improvement of our corporate value.
  • Appoint several outside directors, who have a high level of independence that fulfills our independence criteria and are expected to contribute to the company management with a high level of knowledge in their respective fields.
  • Maintain a highly transparent and objective directors' and officers' remuneration system, which can increase their motivation to contribute to our medium- and long-term improvement of our company's performance and the improvement of our corporate value.
Continue to implement measures to strengthen the supervising function of the Board of Directors, through an annual evaluation of the Board of Directors.

(1) The diversity of the Board of Directors (always a one third or higher percentage of outside directors; currently four out of 10 directors) and the ratio of women (ratio in the previous fiscal year + 10%; currently two out of 10 directors) have improved.

(2) We have increased the number of independent outside members of the Board of Direcrors and outside audit & supervisory Board members in the Nomination Committee to a majority (four out of seven members; +7.1% compared to the previous year). (Four out of eight directors: 50% → Four out of seven directors: 57.1%)

We have almost completed the strengthening of governance in structural terms with the implementation of (1) and (2). From the next fiscal year onward, we will monitor the implementation of our Policy on the Governance of its Listed Subsidiaries formulated in this fiscal year and also deal with listing problems involving ITOCHU and our subsidiaries.

Risk management We will build a system for group risk management and maintain it to manage the risk of loss and ensure the appropriateness of our corporate group's operations. Conduct regular reviews of risk management systems that have been established, including internal committees and risk management departments, various rules and regulations, reporting and monitoring systems, as well as the effectiveness of such systems. Maintain a firm governance system in the medium- and long-term by establishing a PDCA cycle, including development and implementation of action plans by the departments responsible for risk management, and monitoring and reviews by internal committees.
  • We reviewed the progress situation for the action plans in the first half of 2019 with each department responsible for risk management. The Global Risk Management Division assembled and made a report to the Internal Control Committee in October 2019 to the effect that the risk management structure is functioning. This includes the response to events that occurred during the applicable period. It obtained approval for the report from the committee.
  • We reviewed the progress of the second half of FYE 2020 and the action plans of FYE 2021 at the meeting of Internal Control Committee in April 2020 and obtained approval from the committee.

Evolve businesses through technological innovation

Risks Opportunities
  • Obsolescence of existing business models resulting from the emergence of new technologies, such as IoT and AI.
  • Labor shortage in developed countries, loss of excellent human resources in businesses in which efficiency improvement is delayed. And others.
  • Creation of new markets and provision of innovative services.
  • Utilizing new technologies for optimizing human resources and logistics, increasing competitiveness by promoting work style reform. And others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Next-generation business Development Textile Company State-of-the-art technologies (IoT) We will build a production IT infrastructure that will be a common platform of the supply chain and strive to improve added value and promote sustainable industrialization. Introduce the production IT infrastructure to the main bases of the Group and contribute to the improvement of Product, Lifecycle and Management. Visualize the supply chains of the overall Group to reduce costs, improve quality, and reduce lead time, thereby developing a supply system that can cater to market needs. We were aiming to start operation in June 2019. However, the installation work and system training took time. Therefore, we actually started operation in January 2020. IPA Hong Kong has started utilizing this with business that utilizes the production background of IPA Vietnam. We plan to roll this out in other areas in sequence.
State-of-the-art technologies (IC tag, RFID, and EC businesses) We will utilize next-generation technologies, such as Radio Frequency IDentification (RFID) tags, to contribute to improved efficiency, not only in the apparel industry but also in the associated logistics industry. Improve production and sales efficiency by making use of AI, and in addition, accelerate the dissemination of RFID tags in the clothing industry, in an effort to increase the trading volume. Make use of AI and disseminate the use of RFID tags, thereby improving production and operating efficiency in the supply chain, traceability, and sales capabilities. We sold 60 million RFID tags in FYE 2020. We gave proposals to improve operational efficiency (e.g., supply chain optimization and an improvement in the accuracy of understanding inventory). We have started examining a partnership with an overseas company concerning the tag material to introduce eco-friendly goods that do not require garbage separation.
Food Company Overall food-related businesses
  • We will aim to improve productivity and efficiency by utilizing RPA and AI proactively.
  • We will aim to create innovative services and new business by integrating resources and new technologies of the ITOCHU Group.
  • We will improve productivity and optimize operations by introducing and utilizing new technologies in the distribution field in which labor shortages are becoming more serious.
  • We will create unique new value by combining the wide ranging product lineup, functions and expertise of our group based on retail customer needs.
  • Promotion of further business processing re-engineering utilizing RPA and AI.
  • Promotion of the development of new products and new services through the food wholesale business developed by the ITOCHU Group.
  • We are working to improve productivity and to optimize business. For example, we are proactively introducing RPA in the group - including in subsidiaries and associated companies.
  • We are promoting the optimization of distribution centers and the computerization of paper information to save labor. In addition, we are working to reduce delivery vehicles by continuously optimizing delivery routes.
  • We are providing marketing tools that improve the convenience of consumers to retail customers through our group food wholesale company.
ICT & Financial Business Company Business incubation through venture investment, focused on FinTech, IoT, AI and etc. We will try to create new industries with acquiring cutting-edge innovations and business models such as IoT, AI, and FinTech. Seeking chance to invest in and make partnerships with startups, in order to develop new businesses. Realization of new service and business developments. Continuing from the previous fiscal year, we have increased new overseas VC investments (e.g., in new technology and healthcare fields). We have made over ten investments. We are currently working with these companies to develop new businesses. In particular, this fiscal year, we plan to develop fintech-related services. This will contribute to developing new solutions and increasing profits, by improving operational efficiency of retailers and e-commerce operators.
The 8th Consumer related business We will aim to create innovative services and new business by integrating assets and new technologies of the ITOCHU Group. Increase contact with consumers by promoting the retail business in our efforts to understand consumer behaviors, and combine the wide range of products, functions, and expertise of the Group to create unique new value that will be profitable for consumers and communal society. Aim to develop new businesses and cultivate new customers by taking full advantage of the business foundations possessed by the ITOCHU Group. We are currently promoting a digital strategy in FamilyMart - the subsidiary. We released the FamiPay smartphone app with barcode payment in July 2019. We have achieved labor savings in FamilyMart stores. For example, register service time has been reduced to one third of what it was before.
In addition, we have already promoted inbound business and released a capital and business alliance with a startup that has independently developed a humanoid AI agent with advanced recognition technology.

Address climate change (contribute to realization of low-carbon society)

Risks Opportunities

Transition risk

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

Physical risk

  • Damage to business due to the increase in abnormal weather (e.g., droughts, flooding, typhoons and hurricanes)
  • Increase in renewable energy and other business opportunities which will contribute to alleviating climate change
  • Retention and acquisition of customers by strengthening supply structures that can adapt to abnormal weather
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Icon
Taking countermeasures against climate change Machinery Company 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.
Icon
Machinery Company 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.
Icon
Icon
Metals & Minerals Company
  • 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.
Icon
Taking countermeasures against climate change Energy & Chemicals Company 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.
Icon
Efforts to optimally and continuously supply renewable energy Energy & Chemicals Company 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.
Icon
Taking countermeasures against climate change Food Company 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 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.

Cultivate a motivating workplace environment

Risks Opportunities
  • Decline in labor productivity, loss of excellent human resources, missed business opportunities, increase in health-related expenses, and other events that would result from failure to take appropriate measures, and others.
  • Improvement of labor productivity and health and motivation, securing of excellent human resources, enhanced capability of responding to changes and business opportunities, and other events that will result from the creation of a workplace that provides job satisfaction, and others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Improving operating efficiency and addressing the issue of long-working hours through work style reform Headquarters Human Resources Affairs We will promote a well-balanced working style and reduce the total number of working hours, aiming to improve employee engagement.

<ITOCHU Corporation>

  • Promote the morning focused working system.
  • Conduct regular monitoring of employees' work situations.
  • Promote work automation with IT tools, including the robotic process automation (RPA), as well as mobile work.
  • Promote projects for improving the operating efficiency at each organization.

<ITOCHU Group>

  • Efficient way of working, appropriate working hours management, and educational and awareness-raising activities at the ITOCHU Group.
  • FYE 2021: Reduce the annual average overtime hours by at least 10% compared to the period prior to the introduction of the morning-focused working system.
  • FYE 2021: Percentage of employees who leave the office building at 20:00 or later at 5% or fewer.
  • FYE 2021: Paid leave acquisition rate at 70% or higher.
  • Rate of positive responses to the "employee engagement" item in the engagement survey: 70% or higher.

<ITOCHU Corporation>

  • We have reduced annual average overtime hours by 11% compared to before the introduction of the morning-focused working system (achieved in FYE 2018).
  • We have 5% of employees leaving the building after 8 p.m. (FYE 2019).
  • We have 67% of employees acquiring paid leave (FYE 2019).
  • We plan to complete approximately 100 scenarios in FYE 2019 for RPA. We will also introduce a data analysis tool (HANABI). We are currently running 151 scenarios. (As of February 2020)
  • In FYE 2019, we plan to implement BPR (business improvement) at the organization level in three divisions (Fresh Food Division, Automobile, Construction Machinery & Industrial Machinery Division and Apparel Division).
  • The positive answer rate to the "Employee Engagement" item from the FYE 2019 Engagement Survey was 76%. *We did not conduct a survey in FYE 2020. The latest data is for FYE 2019.
Improving the health of employees Headquarters Human Resources Affairs We will improve the health of employees to create an environment that will enable individual employees to better demonstrate their capabilities. We will build a system that helps employees with cancer or long-term illness to create a balance between treatment and work, thereby fostering a culture of mutual support.
  • Keep the percentage of employees who receive regular medical checkups at 100%.
  • Establish well-equipped in-house clinics and a system for supporting each employee in receiving personalized medical care.
  • Promote measures for helping employees create a balance between cancer treatment and work.
  • Offer healthy dishes in the employee cafeteria.
  • Promote the program for supporting smoking cessation treatment expenses.
  • Utilize health management web tools for employees and continue to provide special programs for employees at a high risk for lifestyle-related diseases.
  • Percentage of employees who receive regular medical checkups: 100%.
  • FYE 2021: Improve health indicators (such as BMI) compared to FYE 2017 values.
  • FYE 2021: Percentage of employees who leave work due to cancer or long-term illness at 0%.
  • FYE 2021: Rate of employees found to have a high level of stress in the stress check at 5% or lower.
  • Regular medical checkup rate: 100% in FYE 2020.
  • Rate of improvement in the health index (e.g., BMI) compared to FYE 2011: -2% in FYE 2019.
  • Support for working while receiving cancer care: Job turnover due to cancer and long-term illnesses continues to be 0%.
  • Rate of those found to have a high level of stress in the stress check: 2.9% in FYE 2020.
  • Health management web tools for employees utilization: We are continuing to run a program for those at a high risk for lifestyle-related diseases among young employees and we expanded the scope to include those who are subject to specific health guidance (a total of 115 participants in FYE 2020). We held a company-wide walking event.
Sustainable development of employees' capabilities Headquarters Human Resources Affairs We will develop training programs on a global basis that respond to the changing times and business needs. We will also utilize training programs to continuously produce excellent human resources.
  • Continue to develop and provide training programs at all jobs levels.
  • Continue and enhance overseas deployment of interns and language trainees.
  • Offer diverse career path options and experience in diverse works through regular rotation.
  • Foster career awareness among employees by enhancing personnel assessment, career vision training, career counselling systems and other programs/systems.
  • FYE 2021: Annual E&D expenses exceeding one billion yen.
  • Rate of positive responses to the "education and training" item in the engagement survey: 60% or higher.
  • FYE 2021: Percentage of career-track employees who acquire business-level English skills in their first eight years at the company at 100%.
  • FYE 2021: Percentage of career-track employees who are deployed overseas in their first eight years at the company at 80% or higher.
  • The positive answer rate to the "Education and Training" item from the FYE 2019 Engagement Survey was 71%. *We did not conduct a survey in FYE 2020. The latest data is for FYE 2019.
  • We have been continually reviewing and developing training programs (e.g., the trial introduction of next-generation related training).
  • We are running a trial to provide video content as part of career vision training with an eye on a learning environment that meets the diverse needs of our employees.

    Below is the outlook current as of February 20 in FYE 2020:

  • Annual E&D expenses forecast ⇒ Over approximately 1.2 billion yen
  • Acquisition rate of business level English skills for career-track employees in up to their eighth year since joining the company ⇒ 100%
  • Overseas dispatch rate for career-track employees in up to their eighth year since joining the company ⇒ 80%
Icon
Icon
Icon
Creating an environment that allows diverse human resources to exercise their potential Headquarters Human Resources Affairs We will prohibit all types of discrimination, including those based on age, gender and nationality, and respect human rights. We will create an environment that will permit the active participation of employees whose work hours are limited due to childcare, nursing care, diseases or similar circumstances.
  • Continue fair and equitable recruitment and promotion.
  • Create a work climate of mutual respect and support.
  • Reasonable accommodations concerning the work environment of people with disabilities.
  • Respond to LGBT considerations and provide employee training on LGBT.
  • Enhance on-site day-care centers and nursing care support services.
  • Enhance individual support for employees provided in accordance with their life stage and career.
  • Promote flexible ways of working by making use of mobile work.
  • Support the active participation of senior human resources over 65 years old.
  • FYE 2021: Percentage of female career-track employees among all career-track employees: 10%.
  • FYE 2021: Percentage of female career-track employees among employees in leadership positions at 10%.
  • FYE 2021: Proportion of our workforce with disabilities at 2.3%.
  • The percentage of female career-track employees among all career-track employees is 9.7% (as of January 2020).
  • The percentage of female career-track employees among those in leadership positions is over 8.1% (as of January 2020).
  • Proportion of our workforce with disabilities: 2.16% as of February 2020 (insufficient by one person)
  • We have been applying to make IHGS applicable as a special subsidiary in our group since February 2020. We achieved the required number of hires as of February 2020 in the three companies of ITOCHU, Uneedus and IHGS. We will continue to promote the employment of those with disabilities over our entire group.

Respect human rights

Risks Opportunities
  • Business delay or business continuity risk resulting from the occurrence of a human rights problem in business activities that expands (geographically).
  • Decline in credibility that may result from defects in the social infrastructure services we provide. And others.
  • Stabilization of business or securing of excellent human resources resulting from harmonious coexistence with local communities.
  • Establishment of safe, stable supply system for product enabled by the consideration of human rights and improvement of work environment in the supply chain. And others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Textile Company Supply chain management We will promote information-sharing in the overall Group and establish a safe, secure supply chain, thereby helping customers with risk reduction and contributing to sustainable economic development. Make Group-wide efforts to review the social and environmental safety of the supply chain and make improvements as necessary, thereby promoting the establishment of a safe, secure commodity supply system. FYE 2024: Establish and visualize the supply chain of the overall Group, from material procurement to sales, to ensure a responsible procurement policy. We implemented this in 50 companies in Southwest Asia (e.g., Vietnam and Indonesia) compared to the 80 companies that was our target in FYE 2020. Separately, we conducted a fact-finding investigation questionnaire on the status of compliance with the Labor Standards Act and Industrial Safety and Health Act for foreign technical intern trainees in 211 sewing plants in Japan.
Icon
Icon
Improving water and hygiene infrastructures Machinery Company Water and environmental projects We will contribute to improving the hygiene environment, the development of economic activities, and the protection of the global environment through the appropriate treatment and effective use of water and waste. Expand water and environment projects to promote the appropriate use and treatment of water and the effective utilization of resources, and reduce the environmental impact. Expand and diversify the investment portfolio in the water and environment field.

Water Field

We own a water supply service business in the U.K. and Spain and a seawater desalination business in Australia and Oman. We are continuing to work to expand our seawater desalination and water supply/sewerage business.

Environment Field

We operate four waste incineration and power generation business projects in the U.K. In addition to this, we entered into a financing contract for a public-private partnership (PPP) waste disposal power generation project in Belgrade, Serbia in September 2019. We are aiming for operation in 2022.
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Machinery Company Overall electric power and plant projects We will contribute to improving the quality of life of all stakeholders in the supply chain and business investment destinations. Set rules on due diligence related to social and business environmental safety for suppliers and business investment destinations based on the distinctive characteristics of each business, implement due diligence, and strengthen monitoring continuously. FYE 2020: Aim to implement the due diligence described on the left in all new development projects. We are continuing operations to check the core subjects in the guidelines on social responsibility using the company-wide ESG checklist in all development projects where we are investing for the first time. We are conducting due diligence on individual development projects to check their social and environmental safety based on the unique characteristics of each business prior to investment.
Icon
Icon
Sustainable mine development that reflects consideration of the risks in occupational safety and health and environmental risks, and that contributes to local communities Metals & Minerals Company Mining business
  • We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which we operate.
  • We will improve local infrastructure such as medical care and education.
  • Ensure the thorough application of the EHS guidelines.
  • Contribute to local communities through activities for improving medical care, education and infrastructure.
  • Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • Donations to medical care, education and build infrastructure in local communities.
  • We held internal EHS (Environment, Health and Safety) training courses for supervisors and company employees belonging to sections engaged in resource development. The attendance rate of those subject to this training was 100%.
  • We checked the proper compliance to the EHS guideline by one new project and eight existing projects in our mining business, and also by one another resource-related project.
  • We carried out activities that contribute to the local community as part of each project we invest in.
  • As a special initiative, our Australian subsidiary, ITOCHU Minerals & Energy of Australia Pty. Ltd., together with other local group companies, contributed A$200,000 in total to the Australian Red Cross Society as support to recover from the damage caused by the Bushfires.
Icon
Establishment of an energy resources development system that goes well with local society and environment Energy & Chemicals Company Exploration & Production of Oil & Gas Contributing in the development of local society by advancing exploration & production projects that accommodate social and environmental concern. Implementation of projects in compliance with the laws and regulations of the respective government and internationally-recognized administrative body.
  • Be compliant with HSE (Health, Safety and Environment) standards in the respective government and the ones set by internationally-recognized administrative body.
  • Reduction of HSE issues that involve serious damage to human beings and/or environment.
  • We are appropriately complying with the HSE management standards of the government and management body in each country.
  • We are managing the number of incidents, their severity and content monthly in accordance with in-house regulations. (There have been no serious operational incidents as of the end of January 2020 in this fiscal year.)
Icon
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Food Company Provisions field We will develop a procurement structure compliant with third-party body certification and supplier-specific codes of conduct.
  • We will promote procurement compliant with supplier-specific codes of conduct in coffee bean producing countries.
  • We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
  • We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.
  • Coffee beans: Promotion of procurement compliant with supplier-specific codes of conduct in our bases in producing areas in cooperation with suppliers.
  • Palm oil: Promotion of progress information disclosure upon also clarifying the KPI indicators by publishing our procurement policy.
  • We are currently giving guidance to producers in each producing area country to meet the certification standards. The aim of this is to expand transactions for certified coffee beans (e.g., those of the Rainforest Alliance and C.A.F.E Practice).
  • We have published our procurement policy with our started target of switching all the palm oil we procure to sustainable palm oil supplied from supply chains compliant with RSPO/MSPO/ISPO by FYE 2026. We are promoting the construction of procurement and supply structures in light of industry trends and the situation in suppliers.
Fresh food field We will contribute to increased employment and an improved living environment by fostering local industries. We will cultivate new producing areas. We will do this to expand employment and improve the living environment through diversification of producing areas in light of weather risks and through the development of local industries in our Dole business. Aim for the start of the commercial production and export of pineapple processed foods in FYE 2022 by cultivating pineapples in Sierra Leone as the cultivation of a producing area followed by the development program in the Philippines. We are promoting the expansion of a pineapple farm and the construction of a pineapple processed food manufacturing plant in Sierra Leone.
Icon
Urban development in the Jingu Gaien district Headquarters Rebuilding of our Tokyo headquarters by participating in the Jingu Gaien District City Area Redevelopment Project We will strive to contribute to the community through the realization of prosperous complex urban development focused on sports, culture and communication. Communicate appropriately with stakeholders and acquire permissions  in the redevelopment study process. Submit the necessary applications and acquire the necessary permissions (e.g., plan proposal, execution permission application and redevelopment execution permission). We appropriately communicated with stakeholders in the examination of the redevelopment and conducted negotiations to obtain the necessary permissions. We plan to submit the application and acquire the permissions from FYE 2021 to FYE 2024.

Contribute to healthier and more enriched lifestyles

Risks Opportunities
  • Decline in credibility that would result from the occurrence of a problem related to the safety or health of consumers and service users.
  • Impact on business of destabilization of the market or social security system based on policy change. And others.
  • Increase in demand for food safety and security and health improvement.
  • Expansion of information, financial and logistics services resulting from an increase in consumer spending or penetration of the Internet. And others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Promoting good health among people Machinery Company Sales of Cutting-Edge medical devices and provision of medical services We aim to improve quality of life by providing cutting-edge medical devices and advanced medical services in the field of medical care, where technologies are innovated rapidly. Promote sales of advanced medical devices, such as MRI-guided radiation therapy systems, and the business of supporting the operation of designated regional cancer care hospitals. Increase the penetration of advanced medical devices in Japan, such as MRI-guided radiation therapy systems. Currently operating at National Cancer Center and Edogawa Hospital. More than 300 patients are treated including intractable cancer (ex. pancreatic cancer). Since the technology is promising, Edogawa Hospital is now upgrading the system, which expected to operate in December 2020. With joint research with the National Cancer Center, we are on the way to establish the standard procedure to cure intractable cancers.
Energy & Chemicals Company Pharmaceutical products Contributing to the improvement of people’s health and working environment through accelerating the development of pharmaceuticals and other products in fields with significant needs including cancer-related fields. Actively promoting to support the development and marketing of new pharmaceutical and other products. Aiming to obtain approvals in Asia and North America for new pharmaceutical and other products of which we are engaged in supporting the development, and to launch them into the market.
  • We started selling a non-absorptive liquid to protect against oral mucositis (a liquid that controls and relieves the pain of oral mucositis caused by chemotherapy or radiotherapy when treating diseases such as cancer) in group companies (from May 2018 in Japan, from July 2019 in China and scheduled for sale in the future in Korea).
  • We started full-scale sales with FDA approval in North America of a pain reliever through group companies (from March 2018).
  • We started the sale in China of a percutaneous absorption 5-HT3 receptor antagonist (therapeutic medication for nausea and vomiting during cancer treatment) (from March 2019). This drug has been newly listed as a treatment choice in the Guidelines for the Treatment of Nausea and Vomiting During Cancer Treatment (published by the Chinese Society of Clinical Oncology in June 2019).
ICT & Financial Business Company
  • Support pharmaceutical development projects
  • Business of providing health care management solutions for individuals
We will provide value-added services for pharmaceuticals and medical sites, and will contribute to improvement of people's Quality Of Life (QOL) by utilizing cutting-edge ICT tools. We will optimize healthcare utilizing medical data.
  • Realization of new services and business development relating to medical data
  • Expansion of existing business (number of people subject to health checkup data management to reach 1 million by the end of FYE 2021)
  • With the interest to maintain and promote health continuing to grow in company employees, the number of persons subject to health checkup data management is steadily increasing. We expect this to reach 750,000 persons by the end of FYE 2020.
  • We have carried out investments including, SaaS for dispensing pharmacies, dentistry-related data, genomic data and pharmaceutical data. We will contribute to improve the quality of life with highly efficient operations by utilizing the aforementioned data.
Supplying safe, secure food Food Company Overall food-related businesses We will select and concentrate on suppliers who are capable of manufacturing and supplying safe, secure food stably. Increase the number of persons with international certifications/qualifications related to audit the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers. Promotion of the appropriate appointment of the auditors in each sales division under the guidance of the ITOCHU food safety management organization. The number of people who have acquired the assistant auditor increased by one in FYE 2020. We plan to increase this by two people in FYE 2021. We expect the total number of qualified persons over our entire group to reach nine.
Icon
Maintenance of industrial, logistics, and transportation infrastructure ICT & Financial Business Company ICT infrastructure construction business We will contribute to realize safe secure, and highly convenient social infrastructure through providing various ICT solutions. Continue to enhance the value of ICT solutions with maximizing new product/service sourcing functions. Increase the number of procurement partners. We have newly located seven sourcing companies which provide ICT solutions and RPA to reinforce information security this fiscal year (e.g., in systems management field).
Icon
Providing financial services ICT & Financial Business Company Domestic and overseas retail finance business We work on expanding and creating the retail financial market and providing financial services to individuals to contribute to enriching people's lives. Increase the number of customers and loan balance by expanding and creating the retail financial market. Increase the number of customers and loan balance.

We have started new efforts in retail finance business in the Philippines and the P2P lending business in Indonesia since the previous fiscal year. We have improved the number of customers and loan balance, which are also our KPI in our other existing businesses.

Growth rate of outstanding lendings:
(Changes from end of December 2018 to end of December 2019)

  • UAF: 107%
  • EasyBuy: 106%
  • FRF: 114%
  • ACF: 722% *Operations initiated in FYE 2019
  • PDP: 481% *Operations initiated in FYE 2019
Icon
Energy use that takes into consideration local communities and the environment Headquarters District heating and cooling We will promote efforts toward environmentally friendly regional energy use. Communicate appropriately with neighboring stakeholders in the Jingu Gaien district. Submit a plan proposal that gives our specific energy plan in the redevelopment to the Tokyo Metropolitan Government. We started discussions with the relevant stakeholders to spread and promote district heating and cooling to neighboring areas.
Icon
Energy & Chemicals Company Maintain the stable operations of district heating and cooling in the Jingu Gaien district and promote the spread of it to neighboring areas. We have started discussions with the relevant stakeholders to spread and promote district heating and cooling to neighboring areas.

Ensure stable procurement and supply

Risks Opportunities
  • Impact of opposition movement resulting from the occurrence of an environmental problem and worsening relationship with local communities.
  • Structural exhaustion of the overall industry caused by the occurrence of price competition, mainly in the consumer-related sector. And others.
  • Increase in resource demand attributed to an increase in population and improvement of living standard in emerging countries.
  • Winning customer trust or creating new businesses with a stable supply of environmentally friendly resources and materials. And others.
SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Stable supply of industrial resources and materials Textile Company Environmentally friendly materials (sustainable materials) such as recycled fibers We will accelerate initiatives for the recycled fiber business, not only to create new businesses but also to help solve the global problem of apparel waste and reduce petroleum-derived materials. Work aggressively on the recycled fiber business and lead the industry in promoting the use of sustainable materials. Commercialize the recycled fiber business as soon as possible. Increase the ratio of sustainable materials to materials we trade. We strengthened the supply chain from raw materials to products with a focus on sustainable raw materials. We launched the RENU project and are currently expanding the marketing of recycled polyester globally.
Metals & Minerals Company Mining business We will contribute to the stable operation of various industries by maintaining and developing reliable supply chains for essential raw materials and fuels. Acquire equity interests in superior projects to secure resources to form the basis for the steady supply of raw materials and fuels. Acquisition of superior resource projects to pass on to the future generations, in addition to maintaining and expanding our existing portfolio of highly resilient mining projects.
  • For the purpose of acquiring superior interests that will lead to the next generation, we have decided to invest in the Longview coking coal mine in the U.S. owned by North Central Resources, LLC.
  • This coal mine will produce high-quality coking coal at strong cost competitiveness.
Provision of commodities that help achieve a sustainable lifestyle Textile Company Brand marketing business We will contribute to increasing the visibility of a sustainable lifestyle by taking advantage of our strengths as a marketing company. Raise awareness of an ethical, sustainable lifestyle through brand business, thereby promoting awareness-raising not only in the overall industry but also among consumers. FYE 2021 : Take initiatives with new brands. Have a sustainable lifestyle understood and instilled more widely. We have not entered into a contract with a new brand. However, we have realized cases using the fabric of FOOD TEXTILE that reuses ingredients scheduled to be discarded as dyes in our main brand of CONVERSE shoes.
Efforts leading to solutions to social problems Energy & Chemicals Company Plastic-related environmental response We will aim to establish a recycling and reuse model. We will supply recycled resin in collaboration with brand owners. Establishment of a recycling program and sales of recycled resin. * Because of new commitment, review will be conducted from the next fiscal year.
Icon
Using sustainable forest resources General Products & Realty Company
  • Wood products & materials
  • Pulp
  • Woodchips
We deal in sustainable forest resources to reduce the impact on the environment and prevent the increase of greenhouse gases.
  • Continue to request suppliers who have yet to obtain certifications to obtain them.
  • Conduct sustainability surveys of suppliers and visit them.
FYE 2026: Aim to achieve a rate of 100% for certified or under high-level management materials that we handle.
  • Wood products & materials: We are continuing to encourage and review suppliers. We established a path to achieving ahead of schedule a rate of 100% for certified or under high-level management wood products & materials that we handle in FYE 2021.
  • Pulp and woodchips: We achieved a rate of 100% for certified or under high-level management materials that we handle.
Icon
Icon
Realization of sustainable supply of natural rubber General Products & Realty Company Natural Rubber We shall use our best efforts to establish measures to identify any suppliers developing on High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland, in order to avoid procuring rubber from them. We will establish a traceability system to make uncertain raw material procurement supply chain tranceparet. We aim to procure raw materials with traceability and sustainability ensured in natural rubber processing business. We are developing a traceability system using blockchains. We plan to introduce this around the second quarter of FYE 2021.
Icon
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Textile Company Supply chain management We will promote information-sharing in the overall Group and establish a safe, secure supply chain, thereby helping customers with risk reduction and contributing to sustainable economic development. Make Group-wide efforts to review the social and environmental safety of the supply chain and make improvements as necessary, thereby promoting the establishment of a safe, secure commodity supply system. FYE 2024: Establish and visualize the supply chain of the overall Group, from material procurement to sales, to ensure a responsible procurement policy. We implemented this in 50 companies in Southwest Asia (e.g., Vietnam and Indonesia) compared to the 80 companies that was our target in FYE 2020. Separately, we conducted a fact-finding investigation questionnaire on the status of compliance with the Labor Standards Act and Industrial Safety and Health Act for foreign technical intern trainees in 211 sewing plants in Japan.
Icon
Icon
Sustainable mine development that reflects consideration of the risks in occupational safety and health and environmental risks, and that contributes to local communities Metals & Minerals Company Mining business
  • We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which we operate.
  • We will improve local infrastructure such as medical care and education.
  • Ensure the thorough application of the EHS guidelines.
  • Contribute to local communities through activities for improving medical care, education and infrastructure.
  • Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • Donations to medical care, education and build infrastructure in local communities.
  • We held internal EHS (Environment, Health and Safety) training courses for supervisors and company employees belonging to sections engaged in resource development. The attendance rate of those subject to this training was 100%.
  • We checked the proper compliance to the EHS guideline by one new project and eight existing projects in our mining business, and also by one another resource-related project.
  • We carried out activities that contribute to the local community as part of each project we invest in.
  • As a special initiative, our Australian subsidiary, ITOCHU Minerals & Energy of Australia Pty. Ltd., together with other local group companies, contributed A$200,000 in total to the Australian Red Cross Society as support to recover from the damage caused by the Bushfires.
Establishing a supply chain reflecting consideration for human rights and the environment Food Company Provisions field We will develop a procurement structure compliant with third-party body certification and supplier-specific codes of conduct.
  • We will promote procurement compliant with supplier-specific codes of conduct in coffee bean producing countries.
  • We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
  • We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.
  • Coffee beans: Promotion of procurement compliant with supplier-specific codes of conduct in our bases in producing areas in cooperation with suppliers.
  • Palm oil: Promotion of progress information disclosure upon also clarifying the KPI indicators by publishing our procurement policy.
  • We are currently giving guidance to producers in each producing area country to meet the certification standards. The aim of this is to expand transactions for certified coffee beans (e.g., those of the Rainforest Alliance and C.A.F.E Practice).
  • We have published our procurement policy with our started target of switching all the palm oil we procure to sustainable palm oil supplied from supply chains compliant with RSPO/MSPO/ISPO by FYE 2026. We are promoting the construction of procurement and supply structures in light of industry trends and the situation in suppliers.
Fresh food field We will contribute to increased employment and an improved living environment by fostering local industries. We will cultivate new producing areas. We will do this to expand employment and improve the living environment through diversification of producing areas in light of weather risks and through the development of local industries in our Dole business. Aim for the start of the commercial production and export of pineapple processed foods in FYE 2022 by cultivating pineapples in Sierra Leone as the cultivation of a producing area followed by the development program in the Philippines. We are promoting the expansion of a pineapple farm and the construction of a pineapple processed food manufacturing plant in Sierra Leone.

Maintain rigorous governance structures

SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
Icon
Ensuring compliance Headquarters Compliance We will make employees more aware that ensuring compliance at any time is our contribution to the company and society. Recognizing attitude of employees identifying issues and ensuring action plans to tackle the issues through periodic compliance attitude survey and direct communications. Continuous direct communication with employees through face-to-face training programs whose contents shall be updated along with monitoring the measures according to risks, expectations from society and issues on site which will change with the time.
  • Registered with the Whistleblowing Compliance Management System (self-declaration of conformity) on April 10, 2019.
  • We monitored all ITOCHU Corporation for bribery and corruption in July and August 2019. We confirmed the application status under the Public Officer and Foreign Public Officer Guidelines, Business Partner Guidelines and Investment Guidelines based on certificates. We found no major problems as a result of that.
  • We conducted compliance attitude survey on 57,781 employees in ITOCHU Corporation and group companies in August and September 2019. The number of employees subject to this survey increased by approximately 14,000 compared to the previous survey (FYE 2018). The response rate was 94.9%. This exceeded the response rate for the previous survey (93.4%).
  • We provided e-learning on dealing with bribery and corruption and organized crime for ITOCHU Corporation employees (January 31 to February 29, 2020).
  • The situation concerning the implementation of training tours in FYE 2020 is as follows.
    For ITOCHU Corporation : Implemented 53 times with 2,198 attendees
    For ITOCHU group companies (implemented in 84 companies): Implemented 195 times with 10,715 attendees
Maintaining and reinforcing a governance system for achieving sustainable growth Headquarters Corporate governance We will implement highly effective supervision over the management from an independent and objective standpoint and ensure the appropriate and efficient execution of business operations by improving the transparency of our decision-making, aiming to our sustainable growth as well as the medium- and long-term improvement of our corporate value.
  • Appoint several outside directors, who have a high level of independence that fulfills our independence criteria and are expected to contribute to the company management with a high level of knowledge in their respective fields.
  • Maintain a highly transparent and objective directors' and officers' remuneration system, which can increase their motivation to contribute to our medium- and long-term improvement of our company's performance and the improvement of our corporate value.
Continue to implement measures to strengthen the supervising function of the Board of Directors, through an annual evaluation of the Board of Directors.

(1) The diversity of the Board of Directors (always a one third or higher percentage of outside directors; currently four out of 10 directors) and the ratio of women (ratio in the previous fiscal year + 10%; currently two out of 10 directors) have improved.

(2) We have increased the number of independent outside members of the Board of Direcrors and outside audit & supervisory Board members in the Nomination Committee to a majority (four out of seven members; +7.1% compared to the previous year). (Four out of eight directors: 50% → Four out of seven directors: 57.1%)

We have almost completed the strengthening of governance in structural terms with the implementation of (1) and (2). From the next fiscal year onward, we will monitor the implementation of our Policy on the Governance of its Listed Subsidiaries formulated in this fiscal year and also deal with listing problems involving ITOCHU and our subsidiaries.

Risk management We will build a system for group risk management and maintain it to manage the risk of loss and ensure the appropriateness of our corporate group's operations. Conduct regular reviews of risk management systems that have been established, including internal committees and risk management departments, various rules and regulations, reporting and monitoring systems, as well as the effectiveness of such systems. Maintain a firm governance system in the medium- and long-term by establishing a PDCA cycle, including development and implementation of action plans by the departments responsible for risk management, and monitoring and reviews by internal committees.
  • We reviewed the progress situation for the action plans in the first half of 2019 with each department responsible for risk management. The Global Risk Management Division assembled and made a report to the Internal Control Committee in October 2019 to the effect that the risk management structure is functioning. This includes the response to events that occurred during the applicable period. It obtained approval for the report from the committee.
  • We reviewed the progress of the second half of FYE 2020 and the action plans of FYE 2021 at the meeting of Internal Control Committee in April 2020 and obtained approval from the committee.

Textile Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Evolve businesses through technological innovation
Icon
Next-generation business Development State-of-the-art technologies (IoT) We will build a production IT infrastructure that will be a common platform of the supply chain and strive to improve added value and promote sustainable industrialization. Introduce the production IT infrastructure to the main bases of the Group and contribute to the improvement of Product, Lifecycle and Management. Visualize the supply chains of the overall Group to reduce costs, improve quality, and reduce lead time, thereby developing a supply system that can cater to market needs. We were aiming to start operation in June 2019. However, the installation work and system training took time. Therefore, we actually started operation in January 2020. IPA Hong Kong has started utilizing this with business that utilizes the production background of IPA Vietnam. We plan to roll this out in other areas in sequence.
State-of-the-art technologies (IC tag, RFID, and EC businesses) We will utilize next-generation technologies, such as Radio Frequency IDentification (RFID) tags, to contribute to improved efficiency, not only in the apparel industry but also in the associated logistics industry. Improve production and sales efficiency by making use of AI, and in addition, accelerate the dissemination of RFID tags in the clothing industry, in an effort to increase the trading volume. Make use of AI and disseminate the use of RFID tags, thereby improving production and operating efficiency in the supply chain, traceability, and sales capabilities. We sold 60 million RFID tags in FYE 2020. We gave proposals to improve operational efficiency (e.g., supply chain optimization and an improvement in the accuracy of understanding inventory). We have started examining a partnership with an overseas company concerning the tag material to introduce eco-friendly goods that do not require garbage separation.
Ensure stable procurement and supply
Icon
Stable supply of industrial resources and materials Environmentally friendly materials (sustainable materials) such as recycled fibers We will accelerate initiatives for the recycled fiber business, not only to create new businesses but also to help solve the global problem of apparel waste and reduce petroleum-derived materials. Work aggressively on the recycled fiber business and lead the industry in promoting the use of sustainable materials. Commercialize the recycled fiber business as soon as possible. Increase the ratio of sustainable materials to materials we trade. We strengthened the supply chain from raw materials to products with a focus on sustainable raw materials. We launched the RENU project and are currently expanding the marketing of recycled polyester globally.
Provision of commodities that help achieve a sustainable lifestyle Brand marketing business We will contribute to increasing the visibility of a sustainable lifestyle by taking advantage of our strengths as a marketing company. Raise awareness of an ethical, sustainable lifestyle through brand business, thereby promoting awareness-raising not only in the overall industry but also among consumers. FYE 2021 : Take initiatives with new brands. Have a sustainable lifestyle understood and instilled more widely. We have not entered into a contract with a new brand. However, we have realized cases using the fabric of FOOD TEXTILE that reuses ingredients scheduled to be discarded as dyes in our main brand of CONVERSE shoes.
  • Respect human rights
  • Ensure stable procurement and supply
Icon
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Supply chain management We will promote information-sharing in the overall Group and establish a safe, secure supply chain, thereby helping customers with risk reduction and contributing to sustainable economic development. Make Group-wide efforts to review the social and environmental safety of the supply chain and make improvements as necessary, thereby promoting the establishment of a safe, secure commodity supply system. FYE 2024: Establish and visualize the supply chain of the overall Group, from material procurement to sales, to ensure a responsible procurement policy. We implemented this in 50 companies in Southwest Asia (e.g., Vietnam and Indonesia) compared to the 80 companies that was our target in FYE 2020. Separately, we conducted a fact-finding investigation questionnaire on the status of compliance with the Labor Standards Act and Industrial Safety and Health Act for foreign technical intern trainees in 211 sewing plants in Japan.

Prior to FYE 2017, we cooperated fully with the Japan Fair Trade Commissionon its series of investigations into sales of corporate uniforms. However, thecommission issued the Company a cease-and-desist order citing infringementof Japan's Antimonopoly Act on certain projects. We take the situation quite seriously and will consistently apply the preventive measures* we formulated based on internal investigation results and external advisors' opinions to secure and solidify compliance with alllaws and ordinances, including the Antimonopoly Act.

Machinery Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Address climate change (contribute to realization of low-carbon society)
Icon
Icon
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.
Icon
Taking countermeasures against climate change 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.
Contribute to healthier and more enriched lifestyles
Icon
Promoting good health among people Sales of Cutting-Edge medical devices and provision of medical services We aim to improve quality of life by providing cutting-edge medical devices and advanced medical services in the field of medical care, where technologies are innovated rapidly. Promote sales of advanced medical devices, such as MRI-guided radiation therapy systems, and the business of supporting the operation of designated regional cancer care hospitals. Increase the penetration of advanced medical devices in Japan, such as MRI-guided radiation therapy systems. Currently operating at National Cancer Center and Edogawa Hospital. More than 300 patients are treated including intractable cancer (ex. pancreatic cancer). Since the technology is promising, Edogawa Hospital is now upgrading the system, which expected to operate in December 2020. With joint research with the National Cancer Center, we are on the way to establish the standard procedure to cure intractable cancers.
Respect human rights
Icon
Icon
Improving water and hygiene infrastructures Water and environmental projects We will contribute to improving the hygiene environment, the development of economic activities, and the protection of the global environment through the appropriate treatment and effective use of water and waste. Expand water and environment projects to promote the appropriate use and treatment of water and the effective utilization of resources, and reduce the environmental impact. Expand and diversify the investment portfolio in the water and environment field.

Water Field

We own a water supply service business in the U.K. and Spain and a seawater desalination business in Australia and Oman. We are continuing to work to expand our seawater desalination and water supply/sewerage business.

Environment Field

We operate four waste incineration and power generation business projects in the U.K. In addition to this, we entered into a financing contract for a public-private partnership (PPP) waste disposal power generation project in Belgrade, Serbia in September 2019. We are aiming for operation in 2022.
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Overall electric power and plant projects We will contribute to improving the quality of life of all stakeholders in the supply chain and business investment destinations. Set rules on due diligence related to social and business environmental safety for suppliers and business investment destinations based on the distinctive characteristics of each business, implement due diligence, and strengthen monitoring continuously. FYE 2020: Aim to implement the due diligence described on the left in all new development projects. We are continuing operations to check the core subjects in the guidelines on social responsibility using the company-wide ESG checklist in all development projects where we are investing for the first time. We are conducting due diligence on individual development projects to check their social and environmental safety based on the unique characteristics of each business prior to investment.

Metals & Minerals Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Ensure stable procurement and supply
Icon
Stable supply of industrial resources and materials Mining business We will contribute to the stable operation of various industries by maintaining and developing reliable supply chains for essential raw materials and fuels. Acquire equity interests in superior projects to secure resources to form the basis for the steady supply of raw materials and fuels. Acquisition of superior resource projects to pass on to the future generations, in addition to maintaining and expanding our existing portfolio of highly resilient mining projects.
  • For the purpose of acquiring superior interests that will lead to the next generation, we have decided to invest in the Longview coking coal mine in the U.S. owned by North Central Resources, LLC.
  • This coal mine will produce high-quality coking coal at strong cost competitiveness.
  • Respect human rights
  • Ensure stable procurement and supply
Icon
Icon
Sustainable mine development that reflects consideration of the risks in occupational safety and health and environmental risks, and that contributes to local communities Mining business
  • We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which we operate.
  • We will improve local infrastructure such as medical care and education.
  • Ensure the thorough application of the EHS guidelines.
  • Contribute to local communities through activities for improving medical care, education and infrastructure.
  • Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • Donations to medical care, education and build infrastructure in local communities.
  • We held internal EHS (Environment, Health and Safety) training courses for supervisors and company employees belonging to sections engaged in resource development. The attendance rate of those subject to this training was 100%.
  • We checked the proper compliance to the EHS guideline by one new project and eight existing projects in our mining business, and also by one another resource-related project.
  • We carried out activities that contribute to the local community as part of each project we invest in.
  • As a special initiative, our Australian subsidiary, ITOCHU Minerals & Energy of Australia Pty. Ltd., together with other local group companies, contributed A$200,000 in total to the Australian Red Cross Society as support to recover from the damage caused by the Bushfires.
Address climate change (contribute to realization of low-carbon society)
Icon
Icon
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

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Address climate change (contribute to realization of low-carbon society)
Icon
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.
Contribute to healthier and more enriched lifestyles
Icon
Promoting good health among people Pharmaceutical products Contributing to the improvement of people's health and working environment through accelerating the development of pharmaceuticals and other products in fields with significant needs including cancer-related fields. Actively promoting to support the development and marketing of new pharmaceutical and other products. Aiming to obtain approvals in Asia and North America for new pharmaceutical and other products of which we are engaged in supporting the development, and to launch them into the market.
  • We started selling a non-absorptive liquid to protect against oral mucositis (a liquid that controls and relieves the pain of oral mucositis caused by chemotherapy or radiotherapy when treating diseases such as cancer) in group companies (from May 2018 in Japan, from July 2019 in China and scheduled for sale in the future in Korea).
  • We started full-scale sales with FDA approval in North America of a pain reliever through group companies (from March 2018).
  • We started the sale in China of a percutaneous absorption 5-HT3 receptor antagonist (therapeutic medication for nausea and vomiting during cancer treatment) (from March 2019). This drug has been newly listed as a treatment choice in the Guidelines for the Treatment of Nausea and Vomiting During Cancer Treatment (published by the Chinese Society of Clinical Oncology in June 2019).
Icon
Energy use that takes into consideration local communities and the environment District heating and cooling We will promote efforts toward environmentally friendly regional energy use. Communicate appropriately with neighboring stakeholders in the Jingu Gaien district. Maintain the stable operations of district heating and cooling in the Jingu Gaien district and promote the spread of it to neighboring areas. We have started discussions with the relevant stakeholders to spread and promote district heating and cooling to neighboring areas.
Respect human rights
Icon
Establishment of an energy resources development system that goes well with local society and environment Exploration & Production of Oil & Gas Contributing in the development of local society by advancing exploration & production projects that accommodate social and environmental concern. Implementation of projects in compliance with the laws and regulations of the respective government and internationally-recognized administrative body.
  • Be compliant with HSE (Health, Safety and Environment) standards in the respective government and the ones set by internationally-recognized administrative body.
  • Reduction of HSE issues that involve serious damage to human beings and/or environment.
  • We are appropriately complying with the HSE management standards of the government and management body in each country.
  • We are managing the number of incidents, their severity and content monthly in accordance with in-house regulations. (There have been no serious operational incidents as of the end of January 2020 in this fiscal year.)
Address climate change (contribute to realization of low-carbon society)
Icon
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.
Ensure stable procurement and supply
Icon
Efforts leading to solutions to social problems Plastic-related environmental response We will aim to establish a recycling and reuse model. We will supply recycled resin in collaboration with brand owners. Establishment of a recycling program and sales of recycled resin. * Because of new commitment, review will be conducted from the next fiscal year.

Food Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Evolve businesses through technological innovation
Icon
Next-generation business Development Overall food-related businesses
  • We will aim to improve productivity and efficiency by utilizing RPA and AI proactively.
  • We will aim to create innovative services and new business by integrating resources and new technologies of the ITOCHU Group.
  • We will improve productivity and optimize operations by introducing and utilizing new technologies in the distribution field in which labor shortages are becoming more serious.
  • We will create unique new value by combining the wide ranging product lineup, functions and expertise of our group based on retail customer needs.
  • Promotion of further business processing re-engineering utilizing RPA and AI.
  • Promotion of the development of new products and new services through the food wholesale business developed by the ITOCHU Group.
  • We are working to improve productivity and to optimize business. For example, we are proactively introducing RPA in the group - including in subsidiaries and associated companies.
  • We are promoting the optimization of distribution centers and the computerization of paper information to save labor. In addition, we are working to reduce delivery vehicles by continuously optimizing delivery routes.
  • We are providing marketing tools that improve the convenience of consumers to retail customers through our group food wholesale company.
Address climate change (contribute to realization of low-carbon society)
Icon
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.
Contribute to healthier and more enriched lifestyles
Icon
Supplying safe, secure food Overall food-related businesses We will select and concentrate on suppliers who are capable of manufacturing and supplying safe, secure food stably. Increase the number of persons with international certifications/qualifications related to audit the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers. Promotion of the appropriate appointment of the auditors in each sales division under the guidance of the ITOCHU food safety management organization. The number of people who have acquired the assistant auditor increased by one in FYE 2020. We plan to increase this by two people in FYE 2021. We expect the total number of qualified persons over our entire group to reach nine.
  • Respect human rights
  • Ensure stable procurement and supply
Icon
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Provisions field We will develop a procurement structure compliant with third-party body certification and supplier-specific codes of conduct.
  • We will promote procurement compliant with supplier-specific codes of conduct in coffee bean producing countries.
  • We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
  • We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.
  • Coffee beans: Promotion of procurement compliant with supplier-specific codes of conduct in our bases in producing areas in cooperation with suppliers.
  • Palm oil: Promotion of progress information disclosure upon also clarifying the KPI indicators by publishing our procurement policy.
  • We are currently giving guidance to producers in each producing area country to meet the certification standards. The aim of this is to expand transactions for certified coffee beans (e.g., those of the Rainforest Alliance and C.A.F.E Practice).
  • We have published our procurement policy with our started target of switching all the palm oil we procure to sustainable palm oil supplied from supply chains compliant with RSPO/MSPO/ISPO by FYE 2026. We are promoting the construction of procurement and supply structures in light of industry trends and the situation in suppliers.
Fresh food field We will contribute to increased employment and an improved living environment by fostering local industries. We will cultivate new producing areas. We will do this to expand employment and improve the living environment through diversification of producing areas in light of weather risks and through the development of local industries in our Dole business. Aim for the start of the commercial production and export of pineapple processed foods in FYE 2022 by cultivating pineapples in Sierra Leone as the cultivation of a producing area followed by the development program in the Philippines. We are promoting the expansion of a pineapple farm and the construction of a pineapple processed food manufacturing plant in Sierra Leone.

General Products & Realty Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Ensure stable procurement and supply
Icon
Using sustainable forest resources
  • Wood products & materials
  • Pulp
  • Woodchips
We deal in sustainable forest resources to reduce the impact on the environment and prevent the increase of greenhouse gases.
  • Continue to request suppliers who have yet to obtain certifications to obtain them.
  • Conduct sustainability surveys of suppliers and visit them.
FYE 2026: Aim to achieve a rate of 100% for certified or under high-level management materials that we handle.
  • Wood products & materials: We are continuing to encourage and review suppliers. We established a path to achieving ahead of schedule a rate of 100% for certified or under high-level management wood products & materials that we handle in FYE 2021.
  • Pulp and woodchips: We achieved a rate of 100% for certified or under high-level management materials that we handle.
Icon
Icon
Realization of sustainable supply of natural rubber Natural Rubber We shall use our best efforts to establish measures to identify any suppliers developing on High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland, in order to avoid procuring rubber from them. We will establish a traceability system to make uncertain raw material procurement supply chain tranceparet. We aim to procure raw materials with traceability and sustainability ensured in natural rubber processing business. We are developing a traceability system using blockchains. We plan to introduce this around the second quarter of FYE 2021.
Address climate change (contribute to realization of low-carbon society)
Icon
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.

ICT & Financial Business Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Evolve businesses through technological innovation
Icon
Next-generation business Development Business incubation through venture investment, focused on FinTech, IoT, AI and etc. We will try to create new industries with acquiring cutting-edge innovations and business models such as IoT, AI, and FinTech. Seeking chance to invest in and make partnerships with startups, in order to develop new businesses. Realization of new service and business developments. Continuing from the previous fiscal year, we have increased new overseas VC investments (e.g., in new technology and healthcare fields). We have made over ten investments. We are currently working with these companies to develop new businesses. In particular, this fiscal year, we plan to develop fintech-related services. This will contribute to developing new solutions and increasing profits, by improving operational efficiency of retailers and e-commerce operators.
Contribute to healthier and more enriched lifestyles
Icon
Promoting good health among people
  • Support pharmaceutical development projects
  • Business of providing health care management solutions for individuals
We will provide value-added services for pharmaceuticals and medical sites, and will contribute to improvement of people's Quality Of Life (QOL) by utilizing cutting-edge ICT tools. We will optimize healthcare utilizing medical data.
  • Realization of new services and business development relating to medical data
  • Expansion of existing business (number of people subject to health checkup data management to reach 1 million by the end of FYE 2021)
  • With the interest to maintain and promote health continuing to grow in company employees, the number of persons subject to health checkup data management is steadily increasing. We expect this to reach 750,000 persons by the end of FYE 2020.
  • We have carried out investments including, SaaS for dispensing pharmacies, dentistry-related data, genomic data and pharmaceutical data. We will contribute to improve the quality of life with highly efficient operations by utilizing the aforementioned data.
Icon
Providing financial services Domestic and overseas retail finance business We work on expanding and creating the retail financial market and providing financial services to individuals to contribute to enriching people's lives. Increase the number of customers and loan balance by expanding and creating the retail financial market. Increase the number of customers and loan balance.

We have started new efforts in retail finance business in the Philippines and the P2P lending business in Indonesia since the previous fiscal year. We have improved the number of customers and loan balance, which are also our KPI in our other existing businesses.

Growth rate of outstanding lendings:
(Changes from end of December 2018 to end of December 2019)

  • UAF: 107%
  • EasyBuy: 106%
  • FRF: 114%
  • ACF: 722% *Operations initiated in FYE 2019
  • PDP: 481% *Operations initiated in FYE 2019
Icon
Maintenance of industrial, logistics, and transportation infrastructure. ICT infrastructure construction business. We will contribute to realize safe secure, and highly convenient social infrastructure through providing various ICT solutions. Continue to enhance the value of ICT solutions with maximizing new product/service sourcing functions. Increase the number of procurement partners. We have newly located seven sourcing companies which provide ICT solutions and RPA to reinforce information security this fiscal year (e.g., in systems management field).
  • Throughout our business activities, we respect freedom of expression and privacy rights, which are important human rights issues regarding the Internet and SNSs.

The 8th Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Evolve businesses through technological innovation
Icon
Next-generation business Development Consumer related business We will aim to create innovative services and new business by integrating assets and new technologies of the ITOCHU Group. Increase contact with consumers by promoting the retail business in our efforts to understand consumer behaviors, and combine the wide range of products, functions, and expertise of the Group to create unique new value that will be profitable for consumers and communal society. Aim to develop new businesses and cultivate new customers by taking full advantage of the business foundations possessed by the ITOCHU Group. We are currently promoting a digital strategy in FamilyMart - the subsidiary. We released the FamiPay smartphone app with barcode payment in July 2019. We have achieved labor savings in FamilyMart stores. For example, register service time has been reduced to one third of what it was before.
In addition, we have already promoted inbound business and released a capital and business alliance with a startup that has independently developed a humanoid AI agent with advanced recognition technology.

Headquarters

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators
(Non-consolidated)
Degree of Progress
Cultivate a motivating workplace environment
Icon
Improving operating efficiency and addressing the issue of long-working hours through work style reform Human Resources Affairs We will promote a well-balanced working style and reduce the total number of working hours, aiming to improve employee engagement.

<ITOCHU Corporation>

  • Promote the morning focused working system.
  • Conduct regular monitoring of employees' work situations.
  • Promote work automation with IT tools, including the robotic process automation (RPA), as well as mobile work.
  • Promote projects for improving the operating efficiency at each organization.

<ITOCHU Group>

  • Efficient way of working, appropriate working hours management, and educational and awareness-raising activities at the ITOCHU Group.
  • FYE 2021: Reduce the annual average overtime hours by at least 10% compared to the period prior to the introduction of the morning-focused working system.
  • FYE 2021: Percentage of employees who leave the office building at 20:00 or later at 5% or fewer.
  • FYE 2021: Paid leave acquisition rate at 70% or higher.
  • Rate of positive responses to the "employee engagement" item in the engagement survey: 70% or higher.

<ITOCHU Corporation>

  • We have reduced annual average overtime hours by 11% compared to before the introduction of the morning-focused working system (achieved in FYE 2018).
  • We have 5% of employees leaving the building after 8 p.m. (FYE 2019).
  • We have 67% of employees acquiring paid leave (FYE 2019).
  • We plan to complete approximately 100 scenarios in FYE 2019 for RPA. We will also introduce a data analysis tool (HANABI). We are currently running 151 scenarios. (As of February 2020)
  • In FYE 2019, we plan to implement BPR (business improvement) at the organization level in three divisions (Fresh Food Division, Automobile, Construction Machinery & Industrial Machinery Division and Apparel Division).
  • The positive answer rate to the "Employee Engagement" item from the FYE 2019 Engagement Survey was 76%. *We did not conduct a survey in FYE 2020. The latest data is for FYE 2019.
Improving the health of employees Human Resources Affairs We will improve the health of employees to create an environment that will enable individual employees to better demonstrate their capabilities. We will build a system that helps employees with cancer or long-term illness to create a balance between treatment and work, thereby fostering a culture of mutual support.
  • Keep the percentage of employees who receive regular medical checkups at 100%.
  • Establish well-equipped in-house clinics and a system for supporting each employee in receiving personalized medical care.
  • Promote measures for helping employees create a balance between cancer treatment and work.
  • Offer healthy dishes in the employee cafeteria.
  • Promote the program for supporting smoking cessation treatment expenses.
  • Utilize health management web tools for employees and continue to provide special programs for employees at a high risk for lifestyle-related diseases.
  • Percentage of employees who receive regular medical checkups: 100%.
  • FYE 2021: Improve health indicators (such as BMI) compared to FYE 2017 values.
  • FYE 2021: Percentage of employees who leave work due to cancer or long-term illness at 0%.
  • FYE 2021: Rate of employees found to have a high level of stress in the stress check at 5% or lower.
  • Regular medical checkup rate: 100% in FYE 2020.
  • Rate of improvement in the health index (e.g., BMI) compared to FYE 2011: -2% in FYE 2019.
  • Support for working while receiving cancer care: Job turnover due to cancer and long-term illnesses continues to be 0%.
  • Rate of those found to have a high level of stress in the stress check: 2.9% in FYE 2020.
  • Health management web tools for employees utilization: We are continuing to run a program for those at a high risk for lifestyle-related diseases among young employees and we expanded the scope to include those who are subject to specific health guidance (a total of 115 participants in FYE 2020). We held a company-wide walking event.
Sustainable development of employees' capabilities Human Resources Affairs We will develop training programs on a global basis that respond to the changing times and business needs. We will also utilize training programs to continuously produce excellent human resources.
  • Continue to develop and provide training programs at all jobs levels.
  • Continue and enhance overseas deployment of interns and language trainees.
  • Offer diverse career path options and experience in diverse works through regular rotation.
  • Foster career awareness among employees by enhancing personnel assessment, career vision training, career counselling systems and other programs/systems.
  • FYE 2021: Annual E&D expenses exceeding one billion yen.
  • Rate of positive responses to the "education and training" item in the engagement survey: 60% or higher.
  • FYE 2021: Percentage of career-track employees who acquire business-level English skills in their first eight years at the company at 100%.
  • FYE 2021: Percentage of career-track employees who are deployed overseas in their first eight years at the company at 80% or higher.
  • The positive answer rate to the "Education and Training" item from the FYE 2019 Engagement Survey was 71%. *We did not conduct a survey in FYE 2020. The latest data is for FYE 2019.
  • We have been continually reviewing and developing training programs (e.g., the trial introduction of next-generation related training).
  • We are running a trial to provide video content as part of career vision training with an eye on a learning environment that meets the diverse needs of our employees.

    Below is the outlook current as of February 20 in FYE 2020:

  • Annual E&D expenses forecast ⇒ Over approximately 1.2 billion yen
  • Acquisition rate of business level English skills for career-track employees in up to their eighth year since joining the company ⇒ 100%
  • Overseas dispatch rate for career-track employees in up to their eighth year since joining the company ⇒ 80%
Icon
Icon
Icon
Creating an environment that allows diverse human resources to exercise their potential Human Resources Affairs We will prohibit all types of discrimination, including those based on age, gender and nationality, and respect human rights. We will create an environment that will permit the active participation of employees whose work hours are limited due to childcare, nursing care, diseases or similar circumstances.
  • Continue fair and equitable recruitment and promotion.
  • Create a work climate of mutual respect and support.
  • Reasonable accommodations concerning the work environment of people with disabilities.
  • Respond to LGBT considerations and provide employee training on LGBT.
  • Enhance on-site day-care centers and nursing care support services.
  • Enhance individual support for employees provided in accordance with their life stage and career.
  • Promote flexible ways of working by making use of mobile work.
  • Support the active participation of senior human resources over 65 years old.
  • FYE 2021: Percentage of female career-track employees among all career-track employees: 10%.
  • FYE 2021: Percentage of female career-track employees among employees in leadership positions at 10%.
  • FYE 2021: Proportion of our workforce with disabilities at 2.3%.
  • The percentage of female career-track employees among all career-track employees is 9.7% (as of January 2020).
  • The percentage of female career-track employees among those in leadership positions is over 8.1% (as of January 2020).
  • Proportion of our workforce with disabilities: 2.16% as of February 2020 (insufficient by one person)
  • We have been applying to make IHGS applicable as a special subsidiary in our group since February 2020. We achieved the required number of hires as of February 2020 in the three companies of ITOCHU, Uneedus and IHGS. We will continue to promote the employment of those with disabilities over our entire group.
Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Maintain rigorous governance structures
Icon
Ensuring compliance Compliance We will make employees more aware that ensuring compliance at any time is our contribution to the company and society. Recognizing attitude of employees identifying issues and ensuring action plans to tackle the issues through periodic compliance attitude survey and direct communications. Continuous direct communication with employees through face-to-face training programs whose contents shall be updated along with monitoring the measures according to risks, expectations from society and issues on site which will change with the time.
  • Registered with the Whistleblowing Compliance Management System (self-declaration of conformity) on April 10, 2019.
  • We monitored all ITOCHU Corporation for bribery and corruption in July and August 2019. We confirmed the application status under the Public Officer and Foreign Public Officer Guidelines, Business Partner Guidelines and Investment Guidelines based on certificates. We found no major problems as a result of that.
  • We conducted compliance attitude survey on 57,781 employees in ITOCHU Corporation and group companies in August and September 2019. The number of employees subject to this survey increased by approximately 14,000 compared to the previous survey (FYE 2018). The response rate was 94.9%. This exceeded the response rate for the previous survey (93.4%).
  • We provided e-learning on dealing with bribery and corruption and organized crime for ITOCHU Corporation employees (January 31 to February 29, 2020).
  • The situation concerning the implementation of training tours in FYE 2020 is as follows.
    For ITOCHU Corporation : Implemented 53 times with 2,198 attendees
    For ITOCHU group companies (implemented in 84 companies): Implemented 195 times with 10,715 attendees
Maintaining and reinforcing a governance system for achieving sustainable growth Corporate governance We will implement highly effective supervision over the management from an independent and objective standpoint and ensure the appropriate and efficient execution of business operations by improving the transparency of our decision-making, aiming to our sustainable growth as well as the medium- and long-term improvement of our corporate value.
  • Appoint several outside directors, who have a high level of independence that fulfills our independence criteria and are expected to contribute to the company management with a high level of knowledge in their respective fields.
  • Maintain a highly transparent and objective directors' and officers' remuneration system, which can increase their motivation to contribute to our medium- and long-term improvement of our company's performance and the improvement of our corporate value.
Continue to implement measures to strengthen the supervising function of the Board of Directors, through an annual evaluation of the Board of Directors.

(1) The diversity of the Board of Directors (always a one third or higher percentage of outside directors; currently four out of 10 directors) and the ratio of women (ratio in the previous fiscal year + 10%; currently two out of 10 directors) have improved.

(2) We have increased the number of independent outside members of the Board of Direcrors and outside audit & supervisory Board members in the Nomination Committee to a majority (four out of seven members; +7.1% compared to the previous year). (Four out of eight directors: 50% → Four out of seven directors: 57.1%)

We have almost completed the strengthening of governance in structural terms with the implementation of (1) and (2). From the next fiscal year onward, we will monitor the implementation of our Policy on the Governance of its Listed Subsidiaries formulated in this fiscal year and also deal with listing problems involving ITOCHU and our subsidiaries.

Risk management We will build a system for group risk management and maintain it to manage the risk of loss and ensure the appropriateness of our corporate group's operations. Conduct regular reviews of risk management systems that have been established, including internal committees and risk management departments, various rules and regulations, reporting and monitoring systems, as well as the effectiveness of such systems. Maintain a firm governance system in the medium- and long-term by establishing a PDCA cycle, including development and implementation of action plans by the departments responsible for risk management, and monitoring and reviews by internal committees.
  • We reviewed the progress situation for the action plans in the first half of 2019 with each department responsible for risk management. The Global Risk Management Division assembled and made a report to the Internal Control Committee in October 2019 to the effect that the risk management structure is functioning. This includes the response to events that occurred during the applicable period. It obtained approval for the report from the committee.
  • We reviewed the progress of the second half of FYE 2020 and the action plans of FYE 2021 at the meeting of Internal Control Committee in April 2020 and obtained approval from the committee.
Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Respect human rights
Icon
Urban development in the Jingu Gaien district Rebuilding of our Tokyo headquarters by participating in the Jingu Gaien District City Area Redevelopment Project We will strive to contribute to the community through the realization of prosperous complex urban development focused on sports, culture and communication. Communicate appropriately with stakeholders and acquire permissions in the redevelopment study process. Submit the necessary applications and acquire the necessary permissions (e.g., plan proposal, execution permission application and redevelopment execution permission). We appropriately communicated with stakeholders in the examination of the redevelopment and conducted negotiations to obtain the necessary permissions. We plan to submit the application and acquire the permissions from FYE 2021 to FYE 2024.
Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Contribute to healthier and more enriched lifestyles
Icon
Energy use that takes into consideration local communities and the environment District heating and cooling We will promote efforts toward environmentally friendly regional energy use. Communicate appropriately with neighboring stakeholders in the Jingu Gaien district. Submit a plan proposal that gives our specific energy plan in the redevelopment to the Tokyo Metropolitan Government. We started discussions with the relevant stakeholders to spread and promote district heating and cooling to neighboring areas.

Textile Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Evolve businesses through technological innovation
Icon
Next-generation business Development State-of-the-art technologies (IoT) We will build a production IT infrastructure that will be a common platform of the supply chain and strive to improve added value and promote sustainable industrialization. Introduce the production IT infrastructure to the main bases of the Group and contribute to the improvement of Product, Lifecycle and Management. Visualize the supply chains of the overall Group to reduce costs, improve quality, and reduce lead time, thereby developing a supply system that can cater to market needs. We were aiming to start operation in June 2019. However, the installation work and system training took time. Therefore, we actually started operation in January 2020. IPA Hong Kong has started utilizing this with business that utilizes the production background of IPA Vietnam. We plan to roll this out in other areas in sequence.
State-of-the-art technologies (IC tag, RFID, and EC businesses) We will utilize next-generation technologies, such as Radio Frequency IDentification (RFID) tags, to contribute to improved efficiency, not only in the apparel industry but also in the associated logistics industry. Improve production and sales efficiency by making use of AI, and in addition, accelerate the dissemination of RFID tags in the clothing industry, in an effort to increase the trading volume. Make use of AI and disseminate the use of RFID tags, thereby improving production and operating efficiency in the supply chain, traceability, and sales capabilities. We sold 60 million RFID tags in FYE 2020. We gave proposals to improve operational efficiency (e.g., supply chain optimization and an improvement in the accuracy of understanding inventory). We have started examining a partnership with an overseas company concerning the tag material to introduce eco-friendly goods that do not require garbage separation.
Ensure stable procurement and supply
Icon
Stable supply of industrial resources and materials Environmentally friendly materials (sustainable materials) such as recycled fibers We will accelerate initiatives for the recycled fiber business, not only to create new businesses but also to help solve the global problem of apparel waste and reduce petroleum-derived materials. Work aggressively on the recycled fiber business and lead the industry in promoting the use of sustainable materials. Commercialize the recycled fiber business as soon as possible. Increase the ratio of sustainable materials to materials we trade. We strengthened the supply chain from raw materials to products with a focus on sustainable raw materials. We launched the RENU project and are currently expanding the marketing of recycled polyester globally.
Provision of commodities that help achieve a sustainable lifestyle Brand marketing business We will contribute to increasing the visibility of a sustainable lifestyle by taking advantage of our strengths as a marketing company. Raise awareness of an ethical, sustainable lifestyle through brand business, thereby promoting awareness-raising not only in the overall industry but also among consumers. FYE 2021 : Take initiatives with new brands. Have a sustainable lifestyle understood and instilled more widely. We have not entered into a contract with a new brand. However, we have realized cases using the fabric of FOOD TEXTILE that reuses ingredients scheduled to be discarded as dyes in our main brand of CONVERSE shoes.
  • Respect human rights
  • Ensure stable procurement and supply
Icon
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Supply chain management We will promote information-sharing in the overall Group and establish a safe, secure supply chain, thereby helping customers with risk reduction and contributing to sustainable economic development. Make Group-wide efforts to review the social and environmental safety of the supply chain and make improvements as necessary, thereby promoting the establishment of a safe, secure commodity supply system. FYE 2024: Establish and visualize the supply chain of the overall Group, from material procurement to sales, to ensure a responsible procurement policy. We implemented this in 50 companies in Southwest Asia (e.g., Vietnam and Indonesia) compared to the 80 companies that was our target in FYE 2020. Separately, we conducted a fact-finding investigation questionnaire on the status of compliance with the Labor Standards Act and Industrial Safety and Health Act for foreign technical intern trainees in 211 sewing plants in Japan.

Prior to FYE 2017, we cooperated fully with the Japan Fair Trade Commissionon its series of investigations into sales of corporate uniforms. However, thecommission issued the Company a cease-and-desist order citing infringementof Japan's Antimonopoly Act on certain projects. We take the situation quite seriously and will consistently apply the preventive measures* we formulated based on internal investigation results and external advisors' opinions to secure and solidify compliance with alllaws and ordinances, including the Antimonopoly Act.

Machinery Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Address climate change (contribute to realization of low-carbon society)
Icon
Icon
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.
Icon
Taking countermeasures against climate change 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.
Contribute to healthier and more enriched lifestyles
Icon
Promoting good health among people Sales of Cutting-Edge medical devices and provision of medical services We aim to improve quality of life by providing cutting-edge medical devices and advanced medical services in the field of medical care, where technologies are innovated rapidly. Promote sales of advanced medical devices, such as MRI-guided radiation therapy systems, and the business of supporting the operation of designated regional cancer care hospitals. Increase the penetration of advanced medical devices in Japan, such as MRI-guided radiation therapy systems. Currently operating at National Cancer Center and Edogawa Hospital. More than 300 patients are treated including intractable cancer (ex. pancreatic cancer). Since the technology is promising, Edogawa Hospital is now upgrading the system, which expected to operate in December 2020. With joint research with the National Cancer Center, we are on the way to establish the standard procedure to cure intractable cancers.
Respect human rights
Icon
Icon
Improving water and hygiene infrastructures Water and environmental projects We will contribute to improving the hygiene environment, the development of economic activities, and the protection of the global environment through the appropriate treatment and effective use of water and waste. Expand water and environment projects to promote the appropriate use and treatment of water and the effective utilization of resources, and reduce the environmental impact. Expand and diversify the investment portfolio in the water and environment field.

Water Field

We own a water supply service business in the U.K. and Spain and a seawater desalination business in Australia and Oman. We are continuing to work to expand our seawater desalination and water supply/sewerage business.

Environment Field

We operate four waste incineration and power generation business projects in the U.K. In addition to this, we entered into a financing contract for a public-private partnership (PPP) waste disposal power generation project in Belgrade, Serbia in September 2019. We are aiming for operation in 2022.
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Overall electric power and plant projects We will contribute to improving the quality of life of all stakeholders in the supply chain and business investment destinations. Set rules on due diligence related to social and business environmental safety for suppliers and business investment destinations based on the distinctive characteristics of each business, implement due diligence, and strengthen monitoring continuously. FYE 2020: Aim to implement the due diligence described on the left in all new development projects. We are continuing operations to check the core subjects in the guidelines on social responsibility using the company-wide ESG checklist in all development projects where we are investing for the first time. We are conducting due diligence on individual development projects to check their social and environmental safety based on the unique characteristics of each business prior to investment.

Metals & Minerals Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Ensure stable procurement and supply
Icon
Stable supply of industrial resources and materials Mining business We will contribute to the stable operation of various industries by maintaining and developing reliable supply chains for essential raw materials and fuels. Acquire equity interests in superior projects to secure resources to form the basis for the steady supply of raw materials and fuels. Acquisition of superior resource projects to pass on to the future generations, in addition to maintaining and expanding our existing portfolio of highly resilient mining projects.
  • For the purpose of acquiring superior interests that will lead to the next generation, we have decided to invest in the Longview coking coal mine in the U.S. owned by North Central Resources, LLC.
  • This coal mine will produce high-quality coking coal at strong cost competitiveness.
  • Respect human rights
  • Ensure stable procurement and supply
Icon
Icon
Sustainable mine development that reflects consideration of the risks in occupational safety and health and environmental risks, and that contributes to local communities Mining business
  • We will promote sustainable development of natural resources by fully committing to EHS (environment, health, occupational safety) and harmonious coexistence with local communities in areas which we operate.
  • We will improve local infrastructure such as medical care and education.
  • Ensure the thorough application of the EHS guidelines.
  • Contribute to local communities through activities for improving medical care, education and infrastructure.
  • Implementation of annual internal seminars to ensure our employees are fully aware of the EHS guidelines.
  • Donations to medical care, education and build infrastructure in local communities.
  • We held internal EHS (Environment, Health and Safety) training courses for supervisors and company employees belonging to sections engaged in resource development. The attendance rate of those subject to this training was 100%.
  • We checked the proper compliance to the EHS guideline by one new project and eight existing projects in our mining business, and also by one another resource-related project.
  • We carried out activities that contribute to the local community as part of each project we invest in.
  • As a special initiative, our Australian subsidiary, ITOCHU Minerals & Energy of Australia Pty. Ltd., together with other local group companies, contributed A$200,000 in total to the Australian Red Cross Society as support to recover from the damage caused by the Bushfires.
Address climate change (contribute to realization of low-carbon society)
Icon
Icon
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

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Address climate change (contribute to realization of low-carbon society)
Icon
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.
Contribute to healthier and more enriched lifestyles
Icon
Promoting good health among people Pharmaceutical products Contributing to the improvement of people’s health and working environment through accelerating the development of pharmaceuticals and other products in fields with significant needs including cancer-related fields. Actively promoting to support the development and marketing of new pharmaceutical and other products. Aiming to obtain approvals in Asia and North America for new pharmaceutical and other products of which we are engaged in supporting the development, and to launch them into the market.
  • We started selling a non-absorptive liquid to protect against oral mucositis (a liquid that controls and relieves the pain of oral mucositis caused by chemotherapy or radiotherapy when treating diseases such as cancer) in group companies (from May 2018 in Japan, from July 2019 in China and scheduled for sale in the future in Korea).
  • We started full-scale sales with FDA approval in North America of a pain reliever through group companies (from March 2018).
  • We started the sale in China of a percutaneous absorption 5-HT3 receptor antagonist (therapeutic medication for nausea and vomiting during cancer treatment) (from March 2019). This drug has been newly listed as a treatment choice in the Guidelines for the Treatment of Nausea and Vomiting During Cancer Treatment (published by the Chinese Society of Clinical Oncology in June 2019).
Icon
Energy use that takes into consideration local communities and the environment District heating and cooling We will promote efforts toward environmentally friendly regional energy use. Communicate appropriately with neighboring stakeholders in the Jingu Gaien district. Maintain the stable operations of district heating and cooling in the Jingu Gaien district and promote the spread of it to neighboring areas. We have started discussions with the relevant stakeholders to spread and promote district heating and cooling to neighboring areas.
Respect human rights
Icon
Establishment of an energy resources development system that goes well with local society and environment Exploration & Production of Oil & Gas Contributing in the development of local society by advancing exploration & production projects that accommodate social and environmental concern. Implementation of projects in compliance with the laws and regulations of the respective government and internationally-recognized administrative body.
  • Be compliant with HSE (Health, Safety and Environment) standards in the respective government and the ones set by internationally-recognized administrative body.
  • Reduction of HSE issues that involve serious damage to human beings and/or environment.
  • We are appropriately complying with the HSE management standards of the government and management body in each country.
  • We are managing the number of incidents, their severity and content monthly in accordance with in-house regulations. (There have been no serious operational incidents as of the end of January 2020 in this fiscal year.)
Address climate change (contribute to realization of low-carbon society)
Icon
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.
Ensure stable procurement and supply
Icon
Efforts leading to solutions to social problems Plastic-related environmental response We will aim to establish a recycling and reuse model. We will supply recycled resin in collaboration with brand owners. Establishment of a recycling program and sales of recycled resin. * Because of new commitment, review will be conducted from the next fiscal year.

Food Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Evolve businesses through technological innovation
Icon
Next-generation business Development Overall food-related businesses
  • We will aim to improve productivity and efficiency by utilizing RPA and AI proactively.
  • We will aim to create innovative services and new business by integrating resources and new technologies of the ITOCHU Group.
  • We will improve productivity and optimize operations by introducing and utilizing new technologies in the distribution field in which labor shortages are becoming more serious.
  • We will create unique new value by combining the wide ranging product lineup, functions and expertise of our group based on retail customer needs.
  • Promotion of further business processing re-engineering utilizing RPA and AI.
  • Promotion of the development of new products and new services through the food wholesale business developed by the ITOCHU Group.
  • We are working to improve productivity and to optimize business. For example, we are proactively introducing RPA in the group - including in subsidiaries and associated companies.
  • We are promoting the optimization of distribution centers and the computerization of paper information to save labor. In addition, we are working to reduce delivery vehicles by continuously optimizing delivery routes.
  • We are providing marketing tools that improve the convenience of consumers to retail customers through our group food wholesale company.
Address climate change (contribute to realization of low-carbon society)
Icon
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.
Contribute to healthier and more enriched lifestyles
Icon
Supplying safe, secure food Overall food-related businesses We will select and concentrate on suppliers who are capable of manufacturing and supplying safe, secure food stably. Increase the number of persons with international certifications/qualifications related to audit the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers. Promotion of the appropriate appointment of the auditors in each sales division under the guidance of the ITOCHU food safety management organization. The number of people who have acquired the assistant auditor increased by one in FYE 2020. We plan to increase this by two people in FYE 2021. We expect the total number of qualified persons over our entire group to reach nine.
  • Respect human rights
  • Ensure stable procurement and supply
Icon
Icon
Establishing a supply chain reflecting consideration for human rights and the environment Provisions field We will develop a procurement structure compliant with third-party body certification and supplier-specific codes of conduct.
  • We will promote procurement compliant with supplier-specific codes of conduct in coffee bean producing countries.
  • We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil.
  • We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.
  • Coffee beans: Promotion of procurement compliant with supplier-specific codes of conduct in our bases in producing areas in cooperation with suppliers.
  • Palm oil: Promotion of progress information disclosure upon also clarifying the KPI indicators by publishing our procurement policy.
  • We are currently giving guidance to producers in each producing area country to meet the certification standards. The aim of this is to expand transactions for certified coffee beans (e.g., those of the Rainforest Alliance and C.A.F.E Practice).
  • We have published our procurement policy with our started target of switching all the palm oil we procure to sustainable palm oil supplied from supply chains compliant with RSPO/MSPO/ISPO by FYE 2026. We are promoting the construction of procurement and supply structures in light of industry trends and the situation in suppliers.
Fresh food field We will contribute to increased employment and an improved living environment by fostering local industries. We will cultivate new producing areas. We will do this to expand employment and improve the living environment through diversification of producing areas in light of weather risks and through the development of local industries in our Dole business. Aim for the start of the commercial production and export of pineapple processed foods in FYE 2022 by cultivating pineapples in Sierra Leone as the cultivation of a producing area followed by the development program in the Philippines. We are promoting the expansion of a pineapple farm and the construction of a pineapple processed food manufacturing plant in Sierra Leone.

General Products & Realty Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Ensure stable procurement and supply
Icon
Using sustainable forest resources
  • Wood products & materials
  • Pulp
  • Woodchips
We deal in sustainable forest resources to reduce the impact on the environment and prevent the increase of greenhouse gases.
  • Continue to request suppliers who have yet to obtain certifications to obtain them.
  • Conduct sustainability surveys of suppliers and visit them.
FYE 2026: Aim to achieve a rate of 100% for certified or under high-level management materials that we handle.
  • Wood products & materials: We are continuing to encourage and review suppliers. We established a path to achieving ahead of schedule a rate of 100% for certified or under high-level management wood products & materials that we handle in FYE 2021.
  • Pulp and woodchips: We achieved a rate of 100% for certified or under high-level management materials that we handle.
Icon
Icon
Realization of sustainable supply of natural rubber Natural Rubber We shall use our best efforts to establish measures to identify any suppliers developing on High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland, in order to avoid procuring rubber from them. We will establish a traceability system to make uncertain raw material procurement supply chain tranceparet. We aim to procure raw materials with traceability and sustainability ensured in natural rubber processing business. We are developing a traceability system using blockchains. We plan to introduce this around the second quarter of FYE 2021.
Address climate change (contribute to realization of low-carbon society)
Icon
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.

The 8th Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Evolve businesses through technological innovation
Icon
Next-generation business Development Consumer related business We will aim to create innovative services and new business by integrating assets and new technologies of the ITOCHU Group. Increase contact with consumers by promoting the retail business in our efforts to understand consumer behaviors, and combine the wide range of products, functions, and expertise of the Group to create unique new value that will be profitable for consumers and communal society. Aim to develop new businesses and cultivate new customers by taking full advantage of the business foundations possessed by the ITOCHU Group. We are currently promoting a digital strategy in FamilyMart - the subsidiary. We released the FamiPay smartphone app with barcode payment in July 2019. We have achieved labor savings in FamilyMart stores. For example, register service time has been reduced to one third of what it was before.
In addition, we have already promoted inbound business and released a capital and business alliance with a startup that has independently developed a humanoid AI agent with advanced recognition technology.

ICT & Financial Business Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Evolve businesses through technological innovation
Icon
Next-generation business Development Business incubation through venture investment, focused on FinTech, IoT, AI and etc. We will try to create new industries with acquiring cutting-edge innovations and business models such as IoT, AI, and FinTech. Seeking chance to invest in and make partnerships with startups, in order to develop new businesses. Realization of new service and business developments. Continuing from the previous fiscal year, we have increased new overseas VC investments (e.g., in new technology and healthcare fields). We have made over ten investments. We are currently working with these companies to develop new businesses. In particular, this fiscal year, we plan to develop fintech-related services. This will contribute to developing new solutions and increasing profits, by improving operational efficiency of retailers and e-commerce operators.
Contribute to healthier and more enriched lifestyles
Icon
Promoting good health among people
  • Support pharmaceutical development projects
  • Business of providing health care management solutions for individuals
We will provide value-added services for pharmaceuticals and medical sites, and will contribute to improvement of people's Quality Of Life (QOL) by utilizing cutting-edge ICT tools. We will optimize healthcare utilizing medical data.
  • Realization of new services and business development relating to medical data
  • Expansion of existing business (number of people subject to health checkup data management to reach 1 million by the end of FYE 2021)
  • With the interest to maintain and promote health continuing to grow in company employees, the number of persons subject to health checkup data management is steadily increasing. We expect this to reach 750,000 persons by the end of FYE 2020.
  • We have carried out investments including, SaaS for dispensing pharmacies, dentistry-related data, genomic data and pharmaceutical data. We will contribute to improve the quality of life with highly efficient operations by utilizing the aforementioned data.
Icon
Providing financial services Domestic and overseas retail finance business We work on expanding and creating the retail financial market and providing financial services to individuals to contribute to enriching people's lives. Increase the number of customers and loan balance by expanding and creating the retail financial market. Increase the number of customers and loan balance.

We have started new efforts in retail finance business in the Philippines and the P2P lending business in Indonesia since the previous fiscal year. We have improved the number of customers and loan balance, which are also our KPI in our other existing businesses.

Growth rate of outstanding lendings:
(Changes from end of December 2018 to end of December 2019)

  • UAF: 107%
  • EasyBuy: 106%
  • FRF: 114%
  • ACF: 722% *Operations initiated in FYE 2019
  • PDP: 481% *Operations initiated in FYE 2019
Icon
Maintenance of industrial, logistics, and transportation infrastructure ICT infrastructure construction business We will contribute to realize safe secure, and highly convenient social infrastructure through providing various ICT solutions. Continue to enhance the value of ICT solutions with maximizing new product/service sourcing functions. Increase the number of procurement partners. We have newly located seven sourcing companies which provide ICT solutions and RPA to reinforce information security this fiscal year (e.g., in systems management field).
  • Throughout our business activities, we respect freedom of expression and privacy rights, which are important human rights issues regarding the Internet and SNSs.

Headquarters

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators
(Non-consolidated)
Degree of Progress
Cultivate a motivating workplace environment
Icon
Improving operating efficiency and addressing the issue of long-working hours through work style reform Human Resources Affairs We will promote a well-balanced working style and reduce the total number of working hours, aiming to improve employee engagement.

<ITOCHU Corporation>

  • Promote the morning focused working system.
  • Conduct regular monitoring of employees' work situations.
  • Promote work automation with IT tools, including the robotic process automation (RPA), as well as mobile work.
  • Promote projects for improving the operating efficiency at each organization.

<ITOCHU Group>

  • Efficient way of working, appropriate working hours management, and educational and awareness-raising activities at the ITOCHU Group.
  • FYE 2021: Reduce the annual average overtime hours by at least 10% compared to the period prior to the introduction of the morning-focused working system.
  • FYE 2021: Percentage of employees who leave the office building at 20:00 or later at 5% or fewer.
  • FYE 2021: Paid leave acquisition rate at 70% or higher.
  • Rate of positive responses to the "employee engagement" item in the engagement survey: 70% or higher.

<ITOCHU Corporation>

  • We have reduced annual average overtime hours by 11% compared to before the introduction of the morning-focused working system (achieved in FYE 2018).
  • We have 5% of employees leaving the building after 8 p.m. (FYE 2019).
  • We have 67% of employees acquiring paid leave (FYE 2019).
  • We plan to complete approximately 100 scenarios in FYE 2019 for RPA. We will also introduce a data analysis tool (HANABI). We are currently running 151 scenarios. (As of February 2020)
  • In FYE 2019, we plan to implement BPR (business improvement) at the organization level in three divisions (Fresh Food Division, Automobile, Construction Machinery & Industrial Machinery Division and Apparel Division).
  • The positive answer rate to the "Employee Engagement" item from the FYE 2019 Engagement Survey was 76%. *We did not conduct a survey in FYE 2020. The latest data is for FYE 2019.
Improving the health of employees Human Resources Affairs We will improve the health of employees to create an environment that will enable individual employees to better demonstrate their capabilities. We will build a system that helps employees with cancer or long-term illness to create a balance between treatment and work, thereby fostering a culture of mutual support.
  • Keep the percentage of employees who receive regular medical checkups at 100%.
  • Establish well-equipped in-house clinics and a system for supporting each employee in receiving personalized medical care.
  • Promote measures for helping employees create a balance between cancer treatment and work.
  • Offer healthy dishes in the employee cafeteria.
  • Promote the program for supporting smoking cessation treatment expenses.
  • Utilize health management web tools for employees and continue to provide special programs for employees at a high risk for lifestyle-related diseases.
  • Percentage of employees who receive regular medical checkups: 100%.
  • FYE 2021: Improve health indicators (such as BMI) compared to FYE 2017 values.
  • FYE 2021: Percentage of employees who leave work due to cancer or long-term illness at 0%.
  • FYE 2021: Rate of employees found to have a high level of stress in the stress check at 5% or lower.
  • Regular medical checkup rate: 100% in FYE 2020.
  • Rate of improvement in the health index (e.g., BMI) compared to FYE 2011: -2% in FYE 2019.
  • Support for working while receiving cancer care: Job turnover due to cancer and long-term illnesses continues to be 0%.
  • Rate of those found to have a high level of stress in the stress check: 2.9% in FYE 2020.
  • Health management web tools for employees utilization: We are continuing to run a program for those at a high risk for lifestyle-related diseases among young employees and we expanded the scope to include those who are subject to specific health guidance (a total of 115 participants in FYE 2020). We held a company-wide walking event.
Sustainable development of employees' capabilities Human Resources Affairs We will develop training programs on a global basis that respond to the changing times and business needs. We will also utilize training programs to continuously produce excellent human resources.
  • Continue to develop and provide training programs at all jobs levels.
  • Continue and enhance overseas deployment of interns and language trainees.
  • Offer diverse career path options and experience in diverse works through regular rotation.
  • Foster career awareness among employees by enhancing personnel assessment, career vision training, career counselling systems and other programs/systems.
  • FYE 2021: Annual E&D expenses exceeding one billion yen.
  • Rate of positive responses to the "education and training" item in the engagement survey: 60% or higher.
  • FYE 2021: Percentage of career-track employees who acquire business-level English skills in their first eight years at the company at 100%.
  • FYE 2021: Percentage of career-track employees who are deployed overseas in their first eight years at the company at 80% or higher.
  • The positive answer rate to the "Education and Training" item from the FYE 2019 Engagement Survey was 71%. *We did not conduct a survey in FYE 2020. The latest data is for FYE 2019.
  • We have been continually reviewing and developing training programs (e.g., the trial introduction of next-generation related training).
  • We are running a trial to provide video content as part of career vision training with an eye on a learning environment that meets the diverse needs of our employees.

    Below is the outlook current as of February 20 in FYE 2020:

  • Annual E&D expenses forecast ⇒ Over approximately 1.2 billion yen
  • Acquisition rate of business level English skills for career-track employees in up to their eighth year since joining the company ⇒ 100%
  • Overseas dispatch rate for career-track employees in up to their eighth year since joining the company ⇒ 80%
Icon
Icon
Icon
Creating an environment that allows diverse human resources to exercise their potential Human Resources Affairs We will prohibit all types of discrimination, including those based on age, gender and nationality, and respect human rights. We will create an environment that will permit the active participation of employees whose work hours are limited due to childcare, nursing care, diseases or similar circumstances.
  • Continue fair and equitable recruitment and promotion.
  • Create a work climate of mutual respect and support.
  • Reasonable accommodations concerning the work environment of people with disabilities.
  • Respond to LGBT considerations and provide employee training on LGBT.
  • Enhance on-site day-care centers and nursing care support services.
  • Enhance individual support for employees provided in accordance with their life stage and career.
  • Promote flexible ways of working by making use of mobile work.
  • Support the active participation of senior human resources over 65 years old.
  • FYE 2021: Percentage of female career-track employees among all career-track employees: 10%.
  • FYE 2021: Percentage of female career-track employees among employees in leadership positions at 10%.
  • FYE 2021: Proportion of our workforce with disabilities at 2.3%.
  • The percentage of female career-track employees among all career-track employees is 9.7% (as of January 2020).
  • The percentage of female career-track employees among those in leadership positions is over 8.1% (as of January 2020).
  • Proportion of our workforce with disabilities: 2.16% as of February 2020 (insufficient by one person)
  • We have been applying to make IHGS applicable as a special subsidiary in our group since February 2020. We achieved the required number of hires as of February 2020 in the three companies of ITOCHU, Uneedus and IHGS. We will continue to promote the employment of those with disabilities over our entire group.
Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Maintain rigorous governance structures
Icon
Ensuring compliance Compliance We will make employees more aware that ensuring compliance at any time is our contribution to the company and society. Recognizing attitude of employees identifying issues and ensuring action plans to tackle the issues through periodic compliance attitude survey and direct communications. Continuous direct communication with employees through face-to-face training programs whose contents shall be updated along with monitoring the measures according to risks, expectations from society and issues on site which will change with the time.
  • Registered with the Whistleblowing Compliance Management System (self-declaration of conformity) on April 10, 2019.
  • We monitored all ITOCHU Corporation for bribery and corruption in July and August 2019. We confirmed the application status under the Public Officer and Foreign Public Officer Guidelines, Business Partner Guidelines and Investment Guidelines based on certificates. We found no major problems as a result of that.
  • We conducted compliance attitude survey on 57,781 employees in ITOCHU Corporation and group companies in August and September 2019. The number of employees subject to this survey increased by approximately 14,000 compared to the previous survey (FYE 2018). The response rate was 94.9%. This exceeded the response rate for the previous survey (93.4%).
  • We provided e-learning on dealing with bribery and corruption and organized crime for ITOCHU Corporation employees (January 31 to February 29, 2020).
  • The situation concerning the implementation of training tours in FYE 2020 is as follows.
    For ITOCHU Corporation : Implemented 53 times with 2,198 attendees
    For ITOCHU group companies (implemented in 84 companies): Implemented 195 times with 10,715 attendees
Maintaining and reinforcing a governance system for achieving sustainable growth Corporate governance We will implement highly effective supervision over the management from an independent and objective standpoint and ensure the appropriate and efficient execution of business operations by improving the transparency of our decision-making, aiming to our sustainable growth as well as the medium- and long-term improvement of our corporate value.
  • Appoint several outside directors, who have a high level of independence that fulfills our independence criteria and are expected to contribute to the company management with a high level of knowledge in their respective fields.
  • Maintain a highly transparent and objective directors' and officers' remuneration system, which can increase their motivation to contribute to our medium- and long-term improvement of our company's performance and the improvement of our corporate value.
Continue to implement measures to strengthen the supervising function of the Board of Directors, through an annual evaluation of the Board of Directors.

(1) The diversity of the Board of Directors (always a one third or higher percentage of outside directors; currently four out of 10 directors) and the ratio of women (ratio in the previous fiscal year + 10%; currently two out of 10 directors) have improved.

(2) We have increased the number of independent outside members of the Board of Direcrors and outside audit & supervisory Board members in the Nomination Committee to a majority (four out of seven members; +7.1% compared to the previous year). (Four out of eight directors: 50% → Four out of seven directors: 57.1%)

We have almost completed the strengthening of governance in structural terms with the implementation of (1) and (2). From the next fiscal year onward, we will monitor the implementation of our Policy on the Governance of its Listed Subsidiaries formulated in this fiscal year and also deal with listing problems involving ITOCHU and our subsidiaries.

Risk management We will build a system for group risk management and maintain it to manage the risk of loss and ensure the appropriateness of our corporate group's operations. Conduct regular reviews of risk management systems that have been established, including internal committees and risk management departments, various rules and regulations, reporting and monitoring systems, as well as the effectiveness of such systems. Maintain a firm governance system in the medium- and long-term by establishing a PDCA cycle, including development and implementation of action plans by the departments responsible for risk management, and monitoring and reviews by internal committees.
  • We reviewed the progress situation for the action plans in the first half of 2019 with each department responsible for risk management. The Global Risk Management Division assembled and made a report to the Internal Control Committee in October 2019 to the effect that the risk management structure is functioning. This includes the response to events that occurred during the applicable period. It obtained approval for the report from the committee.
  • We reviewed the progress of the second half of FYE 2020 and the action plans of FYE 2021 at the meeting of Internal Control Committee in April 2020 and obtained approval from the committee.
Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Respect human rights
Icon
Urban development in the Jingu Gaien district Rebuilding of our Tokyo headquarters by participating in the Jingu Gaien District City Area Redevelopment Project We will strive to contribute to the community through the realization of prosperous complex urban development focused on sports, culture and communication. Communicate appropriately with stakeholders and acquire permissions in the redevelopment study process. Submit the necessary applications and acquire the necessary permissions (e.g., plan proposal, execution permission application and redevelopment execution permission). We appropriately communicated with stakeholders in the examination of the redevelopment and conducted negotiations to obtain the necessary permissions. We plan to submit the application and acquire the permissions from FYE 2021 to FYE 2024.
Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Contribute to healthier and more enriched lifestyles
Icon
Energy use that takes into consideration local communities and the environment District heating and cooling We will promote efforts toward environmentally friendly regional energy use. Communicate appropriately with neighboring stakeholders in the Jingu Gaien district. Submit a plan proposal that gives our specific energy plan in the redevelopment to the Tokyo Metropolitan Government. We started discussions with the relevant stakeholders to spread and promote district heating and cooling to neighboring areas.

SDGs (Sustainable Development Goals)

  • Icon
    Goal 1.End poverty in all its forms everywhere
  • Icon
    Goal 2.End hunger, achieve food security and improved nutrition and promote sustainable agriculture
  • Icon
    Goal 3.Ensure healthy lives and promote well-being for all at all ages
  • Icon
    Goal 4.Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
  • Icon
    Goal 5.Achieve gender equality and empower all women and girls
  • Icon
    Goal 6.Ensure availability and sustainable management of water and sanitation for all
  • Icon
    Goal 7.Ensure access to affordable, reliable, sustainable and modern energy for all
  • Icon
    Goal 8.Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Icon
    Goal 9.Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
  • Icon
    Goal 10.Reduce inequality within and among countries
  • Icon
    Goal 11.Make cities and human settlements inclusive, safe, resilient and sustainable
  • Icon
    Goal 12.Ensure sustainable consumption and production patterns
  • Icon
    Goal 13.Take urgent action to combat climate change and its impacts
  • Icon
    Goal 14.Conserve and sustainably use the oceans, seas and marine resources for sustainable development
  • Icon
    Goal 15.Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
  • Icon
    Goal 16.Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
  • Icon
    Goal 17.Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development