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

Reinvent 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
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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. Multiple overseas group companies have prepared Product Life-cycle Management (PLM) software and we plan to begin using it from June 2019. We plan to start looking into expanding it to supplier factories and the ITC Sales Department from FYE 2020.
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. In FYE 2019 we reached 87 million RFID tags sold (a 24% increase over the previous year). We have partnered with a leading manufacturer in Hong Kong in hopes of encouraging their further spread in the domestic market.
Food Company Overall food-related businesses We will aim to improve productivity and efficiency by utilizing RPA and AI proactively. Introduce and utilize new technologies, especially in the sectors around retail that are facing a serious labor shortage, thereby maintaining social convenience. At the same time, disperse human resources to new services with the aim of further improving convenience in the consumer-related sector. FYE 2019: Start experimental operations that apply RPA and AI. All of us, including our subsidiaries and related companies are actively introducing Robotic Process Automation (RPA) in order to improve productivity and efficiency.
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. Promote the deployment of new products and new services through collaborations with the retail business operated by the ITOCHU Group. We are promoting new projects related to electronic money etc. with group companies like UFHD.
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. Achieve success new service and business development. We have invested in just over 10 startups in the fields of FinTech and health care. By implementing new cashless services, we are helping to improve the distribution efficiency of home delivery companies, and the store management efficiency of retailers.

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
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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. In FYE 2019, we accomplished followings in the field of development of renewable energy.
Launching commercial operation of the final unit (No. 3 unit) of the Sarulla Geothermal IPP Project in Indonesia, Completion of the Saga-Ouchi Solar Power Plant in Saga Prefecture.
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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. In Japan, we participated in the field test of light electric trucks. We invested in two projects in China where the sales of electric vehicles is increasing drastically.
1) EV rental and maintenance service company Dishangtie Car Rental (Shenzhen) Co., Ltd.,
2) Chinese emerging EV manufacturer ZHICHEAUTO Technology (Shanghai) Co., Ltd.
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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.
  • Carbon Capture and Storage (CCS): We continue to carry out information collection and analysis through observation and interviews with Japan CCS Co., Ltd. and companies conducting CCS projects overseas.
  • Carbon Capture and Utilization (CCU): Along with joining research organizations and collecting information, we are also engaged in specific projects.
  • We have considered our policy towards the coal business through actions such as analyzing multiple scenarios based on suggestions made by the Task Force on Climate-related Financial Disclosures (TCFD).
  • Consequently, we publicly announced our policy commitment in February 2019. This is: 1) - We will not acquire new thermal coal mining interest., and 2) - Regarding the existing thermal coal mining projects, we will continue to review it and contribute to the development of a sustainable society while responding to the social demands of stable supply of energy to domestic and overseas customers.
  • The amount of transactions for aluminum castings/die-cast materials for vehicles increased 6% in FYE 2019 over FYE 2018, contributing to the development of light-weight vehicles.
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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 have begun concrete discussion concerning participation in a new liquefied natural gas (LNG) project.
Food Company Provisions Fresh foods We will reduce the impact of abnormal weather on the business with the aim of ensuring the stable supply of agricultural crops. Decentralize production areas by collaborating with Group companies. FYE 2021: Aim to develop other areas following the Philippines in the Fresh Produce Business. In FYE 2019 we selected candidates for new production areas. From FYE 2020 on, we plan to specifically promote the fruits and vegetables business in new production areas.
General Products & Realty Company Cement alternatives such as slag We plan to expand the use of sustainable byproducts (slag) as a substitute material for the cement which is vital to fields like construction and civil engineering. Establish continuous, stable business flow between ironworks as the supplier of slag and other byproducts and demanders. 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 flow.
  • The volume of transactions to developing countries is expected to increase by 50% from the previous year.
  • We are engaged in continued consultation concerning planning and investment for 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
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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 Itself>

  • Hours of overtime per person: 11% reduction(FYE 2018) compared to prior to introduction (FYE 2013)
  • Workers left 8:00 p.m. or later: 5% (FYE 2018)
  • Leave utilization rate:66% (FYE 2018), 36% (in first half of FYE 2019)
  • Planned to complete approximately 100 scenarios for RPA in FYE 2019. Also introduced the data analysis tool (HANABI).
  • Three divisions (the Fresh Food Division, Automobile, Construction Machinery & Industrial Machinery Division, and Fashion Apparel Division) are planned to implement BPR (Business Process Re-engineering) on an organizational level in FYE 2019.
  • Positive response rate of 76% to "employee engagement" items on the the FYE 2019 engagement survey.
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 Re: Body, a health management website for employees, and continue to provide special programs for employees at 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.
  • 100% participation in medical checkups (FYE 2018).
  • Improvement of health indices (such as BMI) : -3.1% compared to FYE 2011(FYE 2018).
  • Support for living with cancer: maintained a 0% rate of job separation due to cancer or long-term illness. Our goal of "balancing work and illness" has been reflected in our performance indicators from FYE 2019.
  • Rate of high-stress individuals according to stress checks: 3.1% (FYE 2019).
  • "Re:Body" usage: continued implementation of special program for those at risk of a lifestyle disease (117 participants in FYE 2019). Held 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.
Positive response rate of 71% to "education & training" items on the the FYE 2019 engagement survey.
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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%.
  • 9.5% of career-track employees are female (as of January 2019).
  • 7.7% of supervisory positions are female (as of January 2019).
  • Promoted human rights by carrying out training programs with the Tokyo Metropolitan Human Rights Promotion Center (TMHRPC). Also shared information within the company aimed at maintaining fair employment screening (July 2018).
  • Percentage of disabled employees: 2.19% (as of January 2019).

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
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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. In FYE 2019 we conducted an investigation of 50 of our suppliers from the standpoint of Environmental, Social and Governance (ESG) criteria. In FYE 2020 we plan to increase this to 80 companies, and continue to work to establish a healthy supply chain.
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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 Sector

We are participating in Water Supply and Sewerage Treatment Companies in the UK and Spain, Seawater Desalination Projects in Australia and Oman. Our Project in Oman started commercial operation in 2018. We continue to invest in portfolio in the water sector.

Environment Sector

We invested in four Waste Management Projects in the UK and awarded a 25-year Waste Management and Resource Recovery Project in Belgrade, the republic of Serbia in 2017.
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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 observed ESG checklist for all new investment of development and also checked 7 main issues on guideline of social resposibility.
(Organizational Governance, Human Rights, Labor Practices, The Environment, Fair Operating Practices, Consumer Issues, and Community participaion and Development.)
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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%.
  • In FYE 2019, we checked five existing projects and one new project under EHS guidelines using the check sheet, and set follow-up items.
  • We carried out CSR activities that contribute to the local community as part of each project we invest in.
  • As an original initiative, our Australian subsidiary, ITOCHU Minerals & Energy Australia Pty. Ltd., co-sponsored citizen awards in the communities surrounding the port of our iron ore projects.
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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 duly complying with the HSE management standards set by the governments and relevant authorities.
  • In accordance with our internal regulations, we monitor the number of incidents, seriousness and contents of the cases on a monthly basis,. (In FYE 2019, no major operational incidents have been reported as of the end of February.)
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Establishing a supply chain reflecting consideration for human rights and the environment Food Company Provisions We will establish a procurement system that conforms to third-party certification criteria and unique codes of conduct of manufacturers as our customers.
  • Start procuring coffee beans in Latin America in a way that conforms to the unique codes of conduct of manufacturers as our customers.
  • Participate in conferences of RSPO, a third-party certification body on palm oil, and start supplying RSPO-certified oil.
Proceed with discussions of targets for the sustainable procurement of palm oil by collaborating with the trading industry organization based on customers' situations and industry trends. By 2025 we aim to switch the palm oil we handle to sustainable palm oil (RSPO/MSPO/ISPO, etc.). On the basis of the industry trends and customers' circumstances, we are going to improve our procurement system to provide sustainable palm oil with industry groups.
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Providing an environment that enables the focus to be placed on stable production activities General Products & Realty Company Construction We will operate industrial estates in a high-quality manner that will permit tenant companies to focus on stable production activities.
  • Establish a safe, secure, environmentally-friendly infrastructure, including facilities such as those for power supply ,industrial water/wastewater treatment, security and fire prevention systems, or improve the existing infrastructure to make it like the above.
  • Create employment by inviting companies, and in addition, promote locally-based contribution activities.
Undertake further improvements of infrastructure facilities and the service system in industrial estates and continue diverse local contribution activities.

We continue to carry out the following initiatives at the Karawang International Industrial City

  • Provide a service structure that takes into account safety, security and the environment
  • Activities that contribute to neighboring areas.
    1) Support for establishment of a pediatric health contact center, supplying baby food, providing medical equipment to midwives.
    2) Provision of scholarships to Jr. high and high school students.
    3) Afforestation/donating saplings to local governments and establishing agricultural parks.

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
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Promoting good health among people Machinery Company Sales of leading-edge medical devices and provision of medical services We aim to improve quality of life by providing leading-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. We delivered radiation therapy equipment to Edogawa Hospital in August 2018, our second facility in Japan after the National Cancer Center Hospital in March 2017. We are pursuing collaborative research with National Cancer Center to establish national standard treatment. Also, with equipment's new technology, we are able to challeng for pancreatic cancer as well as other 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.
  • In May 2018, our operating company began selling non-absorptive liquid for protecting oral mucositis, under the approval we received for the production and distribution of medical device in Japan. (This liquid control and relief pain of oral mucositis caused by chemotherapy or radiotherapy when treating diseases such as cancer.) In February 2019 we also gained approval for the production and distribution of medical device in China with regards to the same medicine.
  • We began full-scale sales of the pain reliever in North America after acquiring FDA approval through our operating company in February 2018.
ICT & Financial Business Company
  • Business of clinical development support and pharmaceutical marketing support
  • 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. Store and utilize health data obtained from health checkup, wearable devices, and body composition scales. FYE 2021: Managing the health data of 1,000,000 people. The number of people targeted for health data management is increasing steadily, and is projected to reach 700,000 people by the end of FYE 2019. We are helping to promote people's health by working to make vital data visible and increasing health consciousness.
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 judgment on the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers. Proceed with the appropriate allocation of human resources as judges mentioned on the left to business departments, with the leading role played by the food safety management organization of ITOCHU Corporation. In FYE 2019 three more personnel were certified as ISO22000 Provisional Auditors. We expect a similar increase in the qualified personnel in next fiscal year.
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Establishing a logistics network that is adapted to changes in consumer behaviors General Products & Realty Company Distribution We will provide logistics services adapted to changes in distribution that have resulted from the expansion of the e-commerce market in emerging countries. Establish and promote the operation of high-value added logistics services for business operators who sell goods using e-commerce. Aim to increase the trade volume of products in the e-commerce logistics markets in emerging countries.
  • In FYE 2019, we forecast a 20% increase in EC logistics transactions for China's ITOCHU Logistics (China) CO., LTD. based on number of orders.
  • We have started applying the EC logistics business model deployed in China in India as well. We are considering introducing it in Indonesia as well.
Maintenance of industrial, logistics, and transportation infrastructure ICT & Financial Business Company ICT infrastructure construction business We will contribute to maintain 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 started to deal with five new suppliers in the field of system management, etc. By providing ICT solutions to strengthen information security, we contribute to the realization of safe, secure and convenient social infrastructure.
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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 of the number of customers and loan balance. We started retail financial business in Philippines. Also, we started working on P2P lending platform in Indonesia. Loan balance in each existing business is expanding as well.

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
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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 are aiming to strengthen our supply chain from raw materials to finished products, with a focus on sustainable raw materials. Thus, we have conducted multiple investment and planning projects for suppliers of Lyocell and recycled polyester and these are progressing well.
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.
  • We have approved capital expenditure to develop the South Flank iron ore project in western Australia, in cooperation with our partner BHP, with the goal of maintaining and expanding our existing superior mining project. It is an excellent mining area that can sustain operations for 25 years or more starting in 2021.
  • We have promoted and participated both existing and new copper and coking coal exploration projects. This will allow us to secure excellent interests tied to next-generation prospects.
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. This has not led to closing any contracts on a new brands that appeal to ethical lifestyles. But we see a need in the market and are continuing to work to achieve this.
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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 materials under high-level management or certified ones that we handle.

We also continue to carry out the following for suppliers

  • Verifying traceability by conducting individual on-site inspections.
  • Expanding the handling of products subject to "timber traceability verification by third-party organizations.
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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. * Because of new commitment, review will be conducted from the next fiscal year.
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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. In FYE 2019 we conducted an investigation of 50 of our suppliers from the standpoint of Environmental, Social and Governance (ESG) criteria. In FYE 2020 we plan to increase this to 80 companies, and continue to work to establish a healthy supply chain.
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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%.
  • In FYE 2019, we checked five existing projects and one new project under EHS guidelines using the check sheet, and set follow-up items.
  • We carried out CSR activities that contribute to the local community as part of each project we invest in.
  • As an original initiative, our Australian subsidiary, ITOCHU Minerals & Energy Australia Pty. Ltd., co-sponsored citizen awards in the communities surrounding the port of our iron ore projects.
Establishing a supply chain reflecting consideration for human rights and the environment Food Company Provisions We will establish a procurement system that conforms to third-party certification criteria and unique codes of conduct of manufacturers as our customers.
  • Start procuring coffee beans in Latin America in a way that conforms to the unique codes of conduct of manufacturers as our customers.
  • Participate in conferences of RSPO, a third-party certification body on palm oil, and start supplying RSPO-certified oil.
Proceed with discussions of targets for the sustainable procurement of palm oil by collaborating with the trading industry organization based on customers' situations and industry trends. By 2025 we aim to switch the palm oil we handle to sustainable palm oil (RSPO/MSPO/ISPO, etc.). On the basis of the industry trends and customers' circumstances, we are going to improve our procurement system to provide sustainable palm oil with industry groups.

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
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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 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.
  • Based on the results of the Compliance Attitude Survey conducted in FYE 2018, we exchanged opinions with all Company Presidents regarding issues and conditions relating to individual and group companies.
  • In May 2018 we carried out e-learning for all employees of ITOCHU Corporation concerning the Antitrust Act. ITOCHU also conducted monitoring from October to December 2018 concerning application of the Basic Regulations on the Compliance with the Antimonopoly Act, etc. that we have established, one year after their introduction. We are currently requesting that principle group companies introduce similar regulations (implementation expected to be completed during FYE 2019).
  • The state of the cyclic training conducted in FYE 2019 is as follows (as of February 28, 2019).
  • For ITOCHU Corporation: Held 42 times with 1,265 attendees.
    For group companies (conducted for 91 companies): Held 177 times with 10,246 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.
  • We have decided to always keep 1/3 or higher percentage of outside directors.
  • We conducted the evaluation as to the effectiveness of FY 2019 Board of Directors, and released the result in April 2019.
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 andregulations, 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.
  • Each functional department responsible for risk management has reviewed the state of progress of the action plans for the first half of FYE 2019.
  • The Global Risk Management Division has compiled information on the risk management system—including handling of events that occurred within the relevant period—to the effect that it is functional. The Division reported this to the October 2018 Internal Control Committee, which has acknowledged the report.
  • Moreover, the Division plans to report to the same committee, when it is held in the first half of FYE 2020, concerning the review of the latter half of FYE 2019 and the FYE 2020 action plan.

Reinvent 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
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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. Multiple overseas group companies have prepared Product Life-cycle Management (PLM) software and we plan to begin using it from June 2019. We plan to start looking into expanding it to supplier factories and the ITC Sales Department from FYE 2020.
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. In FYE 2019 we reached 87 million RFID tags sold (a 24% increase over the previous year). We have partnered with a leading manufacturer in Hong Kong in hopes of encouraging their further spread in the domestic market.
Food Company Overall food-related businesses We will aim to improve productivity and efficiency by utilizing RPA and AI proactively. Introduce and utilize new technologies, especially in the sectors around retail that are facing a serious labor shortage, thereby maintaining social convenience. At the same time, disperse human resources to new services with the aim of further improving convenience in the consumer-related sector. FYE 2019: Start experimental operations that apply RPA and AI. All of us, including our subsidiaries and related companies are actively introducing Robotic Process Automation (RPA) in order to improve productivity and efficiency.
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. Promote the deployment of new products and new services through collaborations with the retail business operated by the ITOCHU Group. We are promoting new projects related to electronic money etc. with group companies like UFHD.
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. Achieve success new service and business development. We have invested in just over 10 startups in the fields of FinTech and health care. By implementing new cashless services, we are helping to improve the distribution efficiency of home delivery companies, and the store management efficiency of retailers.

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
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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. In FYE 2019, we accomplished followings in the field of development of renewable energy.
Launching commercial operation of the final unit (No. 3 unit) of the Sarulla Geothermal IPP Project in Indonesia, Completion of the Saga-Ouchi Solar Power Plant in Saga Prefecture.
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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. In Japan, we participated in the field test of light electric trucks. We invested in two projects in China where the sales of electric vehicles is increasing drastically.
1) EV rental and maintenance service company Dishangtie Car Rental (Shenzhen) Co., Ltd.,
2) Chinese emerging EV manufacturer ZHICHEAUTO Technology (Shanghai) Co., Ltd.
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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.
  • Carbon Capture and Storage (CCS): We continue to carry out information collection and analysis through observation and interviews with Japan CCS Co., Ltd. and companies conducting CCS projects overseas.
  • Carbon Capture and Utilization (CCU): Along with joining research organizations and collecting information, we are also engaged in specific projects.
  • We have considered our policy towards the coal business through actions such as analyzing multiple scenarios based on suggestions made by the Task Force on Climate-related Financial Disclosures (TCFD).
  • Consequently, we publicly announced our policy commitment in February 2019. This is: 1) - We will not acquire new thermal coal mining interest., and 2) - Regarding the existing thermal coal mining projects, we will continue to review it and contribute to the development of a sustainable society while responding to the social demands of stable supply of energy to domestic and overseas customers.
  • The amount of transactions for aluminum castings/die-cast materials for vehicles increased 6% in FYE 2019 over FYE 2018, contributing to the development of light-weight vehicles.
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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 have begun concrete discussion concerning participation in a new liquefied natural gas (LNG) project.
Food Company Provisions Fresh foods We will reduce the impact of abnormal weather on the business with the aim of ensuring the stable supply of agricultural crops. Decentralize production areas by collaborating with Group companies. FYE 2021: Aim to develop other areas following the Philippines in the Fresh Produce Business. In FYE 2019 we selected candidates for new production areas. From FYE 2020 on, we plan to specifically promote the fruits and vegetables business in new production areas.
General Products & Realty Company Cement alternatives such as slag We plan to expand the use of sustainable byproducts (slag) as a substitute material for the cement which is vital to fields like construction and civil engineering. Establish continuous, stable business flow between ironworks as the supplier of slag and other byproducts and demanders. 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 flow.
  • The volume of transactions to developing countries is expected to increase by 50% from the previous year.
  • We are engaged in continued consultation concerning planning and investment for 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
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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 Itself>

  • Hours of overtime per person: 11% reduction(FYE 2018) compared to prior to introduction (FYE 2013)
  • Workers left 8:00 p.m. or later: 5% (FYE 2018)
  • Leave utilization rate:66% (FYE 2018), 36% (in first half of FYE 2019)
  • Planned to complete approximately 100 scenarios for RPA in FYE 2019. Also introduced the data analysis tool (HANABI).
  • Three divisions (the Fresh Food Division, Automobile, Construction Machinery & Industrial Machinery Division, and Fashion Apparel Division) are planned to implement BPR (Business Process Re-engineering) on an organizational level in FYE 2019.
  • Positive response rate of 76% to "employee engagement" items on the the FYE 2019 engagement survey.
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 Re: Body, a health management website for employees, and continue to provide special programs for employees at 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.
  • 100% participation in medical checkups (FYE 2018).
  • Improvement of health indices (such as BMI) : -3.1% compared to FYE 2011(FYE 2018).
  • Support for living with cancer: maintained a 0% rate of job separation due to cancer or long-term illness. Our goal of "balancing work and illness" has been reflected in our performance indicators from FYE 2019.
  • Rate of high-stress individuals according to stress checks: 3.1% (FYE 2019).
  • "Re:Body" usage: continued implementation of special program for those at risk of a lifestyle disease (117 participants in FYE 2019). Held 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.
Positive response rate of 71% to "education & training" items on the the FYE 2019 engagement survey.
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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%.
  • 9.5% of career-track employees are female (as of January 2019).
  • 7.7% of supervisory positions are female (as of January 2019).
  • Promoted human rights by carrying out training programs with the Tokyo Metropolitan Human Rights Promotion Center (TMHRPC). Also shared information within the company aimed at maintaining fair employment screening (July 2018).
  • Percentage of disabled employees: 2.19% (as of January 2019).

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
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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. In FYE 2019 we conducted an investigation of 50 of our suppliers from the standpoint of Environmental, Social and Governance (ESG) criteria. In FYE 2020 we plan to increase this to 80 companies, and continue to work to establish a healthy supply chain.
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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 Sector

We are participating in Water Supply and Sewerage Treatment Companies in the UK and Spain, Seawater Desalination Projects in Australia and Oman. Our Project in Oman started commercial operation in 2018. We continue to invest in portfolio in the water sector.

Environment Sector

We invested in four Waste Management Projects in the UK and awarded a 25-year Waste Management and Resource Recovery Project in Belgrade, the republic of Serbia in 2017.
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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 observed ESG checklist for all new investment of development and also checked 7 main issues on guideline of social resposibility.
(Organizational Governance, Human Rights, Labor Practices, The Environment, Fair Operating Practices, Consumer Issues, and Community participaion and Development.)
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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%.
  • In FYE 2019, we checked five existing projects and one new project under EHS guidelines using the check sheet, and set follow-up items.
  • We carried out CSR activities that contribute to the local community as part of each project we invest in.
  • As an original initiative, our Australian subsidiary, ITOCHU Minerals & Energy Australia Pty. Ltd., co-sponsored citizen awards in the communities surrounding the port of our iron ore projects.
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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 duly complying with the HSE management standards set by the governments and relevant authorities.
  • In accordance with our internal regulations, we monitor the number of incidents, seriousness and contents of the cases on a monthly basis,. (In FYE 2019, no major operational incidents have been reported as of the end of February.)
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Establishing a supply chain reflecting consideration for human rights and the environment Food Company Provisions We will establish a procurement system that conforms to third-party certification criteria and unique codes of conduct of manufacturers as our customers.
  • Start procuring coffee beans in Latin America in a way that conforms to the unique codes of conduct of manufacturers as our customers.
  • Participate in conferences of RSPO, a third-party certification body on palm oil, and start supplying RSPO-certified oil.
Proceed with discussions of targets for the sustainable procurement of palm oil by collaborating with the trading industry organization based on customers' situations and industry trends. By 2025 we aim to switch the palm oil we handle to sustainable palm oil (RSPO/MSPO/ISPO, etc.). On the basis of the industry trends and customers' circumstances, we are going to improve our procurement system to provide sustainable palm oil with industry groups.
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Providing an environment that enables the focus to be placed on stable production activities General Products & Realty Company Construction We will operate industrial estates in a high-quality manner that will permit tenant companies to focus on stable production activities.
  • Establish a safe, secure, environmentally-friendly infrastructure, including facilities such as those for power supply ,industrial water/wastewater treatment, security and fire prevention systems, or improve the existing infrastructure to make it like the above.
  • Create employment by inviting companies, and in addition, promote locally-based contribution activities.
Undertake further improvements of infrastructure facilities and the service system in industrial estates and continue diverse local contribution activities.

We continue to carry out the following initiatives at the Karawang International Industrial City

  • Provide a service structure that takes into account safety, security and the environment
  • Activities that contribute to neighboring areas.
    1) Support for establishment of a pediatric health contact center, supplying baby food, providing medical equipment to midwives.
    2) Provision of scholarships to Jr. high and high school students.
    3) Afforestation/donating saplings to local governments and establishing agricultural parks.

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
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Promoting good health among people Machinery Company Sales of leading-edge medical devices and provision of medical services We aim to improve quality of life by providing leading-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. We delivered radiation therapy equipment to Edogawa Hospital in August 2018, our second facility in Japan after the National Cancer Center Hospital in March 2017. We are pursuing collaborative research with National Cancer Center to establish national standard treatment. Also, with equipment's new technology, we are able to challeng for pancreatic cancer as well as other 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.
  • In May 2018, our operating company began selling non-absorptive liquid for protecting oral mucositis, under the approval we received for the production and distribution of medical device in Japan. (This liquid control and relief pain of oral mucositis caused by chemotherapy or radiotherapy when treating diseases such as cancer.) In February 2019 we also gained approval for the production and distribution of medical device in China with regards to the same medicine.
  • We began full-scale sales of the pain reliever in North America after acquiring FDA approval through our operating company in February 2018.
ICT & Financial Business Company
  • Business of clinical development support and pharmaceutical marketing support
  • 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. Store and utilize health data obtained from health checkup, wearable devices, and body composition scales. FYE 2021: Managing the health data of 1,000,000 people. The number of people targeted for health data management is increasing steadily, and is projected to reach 700,000 people by the end of FYE 2019. We are helping to promote people's health by working to make vital data visible and increasing health consciousness.
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 judgment on the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers. Proceed with the appropriate allocation of human resources as judges mentioned on the left to business departments, with the leading role played by the food safety management organization of ITOCHU Corporation. In FYE 2019 three more personnel were certified as ISO22000 Provisional Auditors. We expect a similar increase in the qualified personnel in next fiscal year.
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Establishing a logistics network that is adapted to changes in consumer behaviors General Products & Realty Company Distribution We will provide logistics services adapted to changes in distribution that have resulted from the expansion of the e-commerce market in emerging countries. Establish and promote the operation of high-value added logistics services for business operators who sell goods using e-commerce. Aim to increase the trade volume of products in the e-commerce logistics markets in emerging countries.
  • In FYE 2019, we forecast a 20% increase in EC logistics transactions for China's ITOCHU Logistics (China) CO., LTD. based on number of orders.
  • We have started applying the EC logistics business model deployed in China in India as well. We are considering introducing it in Indonesia as well.
Maintenance of industrial, logistics, and transportation infrastructure ICT & Financial Business Company ICT infrastructure construction business We will contribute to maintain 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 started to deal with five new suppliers in the field of system management, etc. By providing ICT solutions to strengthen information security, we contribute to the realization of safe, secure and convenient social infrastructure.
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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 of the number of customers and loan balance. We started retail financial business in Philippines. Also, we started working on P2P lending platform in Indonesia. Loan balance in each existing business is expanding as well.

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
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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 are aiming to strengthen our supply chain from raw materials to finished products, with a focus on sustainable raw materials. Thus, we have conducted multiple investment and planning projects for suppliers of Lyocell and recycled polyester and these are progressing well.
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.
  • We have approved capital expenditure to develop the South Flank iron ore project in western Australia, in cooperation with our partner BHP, with the goal of maintaining and expanding our existing superior mining project. It is an excellent mining area that can sustain operations for 25 years or more starting in 2021.
  • We have promoted and participated both existing and new copper and coking coal exploration projects. This will allow us to secure excellent interests tied to next-generation prospects.
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. This has not led to closing any contracts on a new brands that appeal to ethical lifestyles. But we see a need in the market and are continuing to work to achieve this.
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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 materials under high-level management or certified ones that we handle.

We also continue to carry out the following for suppliers

  • Verifying traceability by conducting individual on-site inspections.
  • Expanding the handling of products subject to "timber traceability verification by third-party organizations.
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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. * Because of new commitment, review will be conducted from the next fiscal year.
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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. In FYE 2019 we conducted an investigation of 50 of our suppliers from the standpoint of Environmental, Social and Governance (ESG) criteria. In FYE 2020 we plan to increase this to 80 companies, and continue to work to establish a healthy supply chain.
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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%.
  • In FYE 2019, we checked five existing projects and one new project under EHS guidelines using the check sheet, and set follow-up items.
  • We carried out CSR activities that contribute to the local community as part of each project we invest in.
  • As an original initiative, our Australian subsidiary, ITOCHU Minerals & Energy Australia Pty. Ltd., co-sponsored citizen awards in the communities surrounding the port of our iron ore projects.
Establishing a supply chain reflecting consideration for human rights and the environment Food Company Provisions We will establish a procurement system that conforms to third-party certification criteria and unique codes of conduct of manufacturers as our customers.
  • Start procuring coffee beans in Latin America in a way that conforms to the unique codes of conduct of manufacturers as our customers.
  • Participate in conferences of RSPO, a third-party certification body on palm oil, and start supplying RSPO-certified oil.
Proceed with discussions of targets for the sustainable procurement of palm oil by collaborating with the trading industry organization based on customers' situations and industry trends. By 2025 we aim to switch the palm oil we handle to sustainable palm oil (RSPO/MSPO/ISPO, etc.). On the basis of the industry trends and customers' circumstances, we are going to improve our procurement system to provide sustainable palm oil with industry groups.

Maintain rigorous governance structures

SDGs Targets Issues to address Co Business area Commitment Specific approach Performance indicators Degree of Progress
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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 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.
  • Based on the results of the Compliance Attitude Survey conducted in FYE 2018, we exchanged opinions with all Company Presidents regarding issues and conditions relating to individual and group companies.
  • In May 2018 we carried out e-learning for all employees of ITOCHU Corporation concerning the Antitrust Act. ITOCHU also conducted monitoring from October to December 2018 concerning application of the Basic Regulations on the Compliance with the Antimonopoly Act, etc. that we have established, one year after their introduction. We are currently requesting that principle group companies introduce similar regulations (implementation expected to be completed during FYE 2019).
  • The state of the cyclic training conducted in FYE 2019 is as follows (as of February 28, 2019).
  • For ITOCHU Corporation: Held 42 times with 1,265 attendees.
    For group companies (conducted for 91 companies): Held 177 times with 10,246 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.
  • We have decided to always keep 1/3 or higher percentage of outside directors.
  • We conducted the evaluation as to the effectiveness of FY 2019 Board of Directors, and released the result in April 2019.
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 andregulations, 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.
  • Each functional department responsible for risk management has reviewed the state of progress of the action plans for the first half of FYE 2019.
  • The Global Risk Management Division has compiled information on the risk management system—including handling of events that occurred within the relevant period—to the effect that it is functional. The Division reported this to the October 2018 Internal Control Committee, which has acknowledged the report.
  • Moreover, the Division plans to report to the same committee, when it is held in the first half of FYE 2020, concerning the review of the latter half of FYE 2019 and the FYE 2020 action plan.

Textile Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Reinvent businesses through technological innovation
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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. Multiple overseas group companies have prepared Product Life-cycle Management (PLM) software and we plan to begin using it from June 2019. We plan to start looking into expanding it to supplier factories and the ITC Sales Department from FYE 2020.
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. In FYE 2019 we reached 87 million RFID tags sold (a 24% increase over the previous year). We have partnered with a leading manufacturer in Hong Kong in hopes of encouraging their further spread in the domestic market.
Ensure stable procurement and supply
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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 are aiming to strengthen our supply chain from raw materials to finished products, with a focus on sustainable raw materials. Thus, we have conducted multiple investment and planning projects for suppliers of Lyocell and recycled polyester and these are progressing well.
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. This has not led to closing any contracts on a new brands that appeal to ethical lifestyles. But we see a need in the market and are continuing to work to achieve this.
  • Respect human rights
  • Ensure stable procurement and supply
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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. In FYE 2019 we conducted an investigation of 50 of our suppliers from the standpoint of Environmental, Social and Governance (ESG) criteria. In FYE 2020 we plan to increase this to 80 companies, and continue to work to establish a healthy supply chain.

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
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Taking countermeasures against climate change Overall power generation business We will develop power plants with a good balance between renewable energy power generation and conventional power generation, thereby contributing to the development of countries and regions in a sustainable manner that is optimized for each. Pursue opportunities to invest aggressively in renewable energy power generation through analyses of countries and regions. FYE 2031: Target to achieve a renewable energy ratio more than 20% (equity interest basis) and reflect this to the future strategy. In FYE 2019, we accomplished followings in the field of development of renewable energy.
Launching commercial operation of the final unit (No. 3 unit) of the Sarulla Geothermal IPP Project in Indonesia, Completion of the Saga-Ouchi Solar Power Plant in Saga Prefecture.
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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. In Japan, we participated in the field test of light electric trucks. We invested in two projects in China where the sales of electric vehicles is increasing drastically.
1) EV rental and maintenance service company Dishangtie Car Rental (Shenzhen) Co., Ltd.,
2) Chinese emerging EV manufacturer ZHICHEAUTO Technology (Shanghai) Co., Ltd.
Contribute to healthier and more enriched lifestyles
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Promoting good health among people Sales of leading-edge medical devices and provision of medical services We aim to improve quality of life by providing leading-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. We delivered radiation therapy equipment to Edogawa Hospital in August 2018, our second facility in Japan after the National Cancer Center Hospital in March 2017. We are pursuing collaborative research with National Cancer Center to establish national standard treatment. Also, with equipment's new technology, we are able to challeng for pancreatic cancer as well as other intractable cancers.
Respect human rights
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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 Sector

We are participating in Water Supply and Sewerage Treatment Companies in the UK and Spain, Seawater Desalination Projects in Australia and Oman. Our Project in Oman started commercial operation in 2018. We continue to invest in portfolio in the water sector.

Environment Sector

We invested in four Waste Management Projects in the UK and awarded a 25-year Waste Management and Resource Recovery Project in Belgrade, the republic of Serbia in 2017.
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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 observed ESG checklist for all new investment of development and also checked 7 main issues on guideline of social resposibility.
(Organizational Governance, Human Rights, Labor Practices, The Environment, Fair Operating Practices, Consumer Issues, and Community participaion and Development.)

Metals & Minerals Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Ensure stable procurement and supply
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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.
  • We have approved capital expenditure to develop the South Flank iron ore project in western Australia, in cooperation with our partner BHP, with the goal of maintaining and expanding our existing superior mining project. It is an excellent mining area that can sustain operations for 25 years or more starting in 2021.
  • We have promoted and participated both existing and new copper and coking coal exploration projects. This will allow us to secure excellent interests tied to next-generation prospects.
  • Respect human rights
  • Ensure stable procurement and supply
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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%.
  • In FYE 2019, we checked five existing projects and one new project under EHS guidelines using the check sheet, and set follow-up items.
  • We carried out CSR activities that contribute to the local community as part of each project we invest in.
  • As an original initiative, our Australian subsidiary, ITOCHU Minerals & Energy Australia Pty. Ltd., co-sponsored citizen awards in the communities surrounding the port of our iron ore projects.
Address climate change
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Taking countermeasures against climate change
  • Mining business
  • Environmental business
  • Material-related business
  • We will realize stable energy supply as our social mission and responsibility while fully considering its environmental impact.
  • We will contribute to reducing greenhouse gases through businesses related to lighter-weight vehicles and Electric Vehicles (EVs).
  • Continue to be involved in the development of technologies that contribute to the reduction of greenhouse gases emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
  • Aim to develop an appropriate portfolio of coal assets by fully considering its environmental impact.
  • Strengthen initiatives in businesses that contribute to the development of lighter-weight vehicles and shift to EVs (aluminum, copper, and other businesses).
  • Contribution to the development of a low-carbon society by committing to technologies that help reduce greenhouse gases emissions.
  • Development of an optimal asset portfolio by fully considering social requirements, including those related to the shift to a low-carbon society.
  • Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs.
  • Carbon Capture and Storage (CCS): We continue to carry out information collection and analysis through observation and interviews with Japan CCS Co., Ltd. and companies conducting CCS projects overseas.
  • Carbon Capture and Utilization (CCU): Along with joining research organizations and collecting information, we are also engaged in specific projects.
  • We have considered our policy towards the coal business through actions such as analyzing multiple scenarios based on suggestions made by the Task Force on Climate-related Financial Disclosures (TCFD).
  • Consequently, we publicly announced our policy commitment in February 2019. This is: 1) - We will not acquire new thermal coal mining interest., and 2) - Regarding the existing thermal coal mining projects, we will continue to review it and contribute to the development of a sustainable society while responding to the social demands of stable supply of energy to domestic and overseas customers.
  • The amount of transactions for aluminum castings/die-cast materials for vehicles increased 6% in FYE 2019 over FYE 2018, 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
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Taking countermeasures against climate change Oil & Gas LNG (Liquefied Natural Gas) Projects Development and production of natural resources with consideration in the reduction of greenhouse gases. Partnering with experienced operators with high technical strength in the development and production of natural resources. Pursuing opportunities to take part in LNG projects (i.e. LNG or natural gas emits less greenhouse gases than the other fossil fuels). We have begun concrete discussion concerning participation in a new liquefied natural gas (LNG) project.
Contribute to healthier and more enriched lifestyles
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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.
  • In May 2018, our operating company began selling non-absorptive liquid for protecting oral mucositis, under the approval we received for the production and distribution of medical device in Japan. (This liquid control and relief pain of oral mucositis caused by chemotherapy or radiotherapy when treating diseases such as cancer.) In February 2019 we also gained approval for the production and distribution of medical device in China with regards to the same medicine.
  • We began full-scale sales of the pain reliever in North America after acquiring FDA approval through our operating company in February 2018.
Respect human rights
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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 duly complying with the HSE management standards set by the governments and relevant authorities.
  • In accordance with our internal regulations, we monitor the number of incidents, seriousness and contents of the cases on a monthly basis,. (In FYE 2019, no major operational incidents have been reported as of the end of February.)

Food Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Reinvent businesses through technological innovation
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Next-generation business Development Overall food-related businesses We will aim to improve productivity and efficiency by utilizing RPA and AI proactively. Introduce and utilize new technologies, especially in the sectors around retail that are facing a serious labor shortage, thereby maintaining social convenience. At the same time, disperse human resources to new services with the aim of further improving convenience in the consumer-related sector. FYE 2019: Start experimental operations that apply RPA and AI. All of us, including our subsidiaries and related companies are actively introducing Robotic Process Automation (RPA) in order to improve productivity and efficiency.
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. Promote the deployment of new products and new services through collaborations with the retail business operated by the ITOCHU Group. We are promoting new projects related to electronic money etc. with group companies like UFHD.
Address climate change
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Taking countermeasures against climate change Provisions Fresh foods We will reduce the impact of abnormal weather on the business with the aim of ensuring the stable supply of agricultural crops. Decentralize production areas by collaborating with Group companies. FYE 2021: Aim to develop other areas following the Philippines in the Fresh Produce Business. In FYE 2019 we selected candidates for new production areas. From FYE 2020 on, we plan to specifically promote the fruits and vegetables business in new production areas.
Contribute to healthier and more enriched lifestyles
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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 judgment on the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers. Proceed with the appropriate allocation of human resources as judges mentioned on the left to business departments, with the leading role played by the food safety management organization of ITOCHU Corporation. In FYE 2019 three more personnel were certified as ISO22000 Provisional Auditors. We expect a similar increase in the qualified personnel in next fiscal year.
  • Respect human rights
  • Ensure stable procurement and supply
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Establishing a supply chain reflecting consideration for human rights and the environment Provisions We will establish a procurement system that conforms to third-party certification criteria and unique codes of conduct of manufacturers as our customers.
  • Start procuring coffee beans in Latin America in a way that conforms to the unique codes of conduct of manufacturers as our customers.
  • Participate in conferences of RSPO, a third-party certification body on palm oil, and start supplying RSPO-certified oil.
Proceed with discussions of targets for the sustainable procurement of palm oil by collaborating with the trading industry organization based on customers' situations and industry trends. By 2025 we aim to switch the palm oil we handle to sustainable palm oil (RSPO/MSPO/ISPO, etc.). On the basis of the industry trends and customers' circumstances, we are going to improve our procurement system to provide sustainable palm oil with industry groups.

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
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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 materials under high-level management or certified ones that we handle.

We also continue to carry out the following for suppliers

  • Verifying traceability by conducting individual on-site inspections.
  • Expanding the handling of products subject to "timber traceability verification by third-party organizations.
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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. * Because of new commitment, review will be conducted from the next fiscal year.
Address climate change
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Taking countermeasures against climate change Cement alternatives such as slag We plan to expand the use of sustainable byproducts (slag) as a substitute material for the cement which is vital to fields like construction and civil engineering. Establish continuous, stable business flow between ironworks as the supplier of slag and other byproducts and demanders. 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 flow.
  • The volume of transactions to developing countries is expected to increase by 50% from the previous year.
  • We are engaged in continued consultation concerning planning and investment for the slag business.
Respect human rights
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Providing an environment that enables the focus to be placed on stable production activities Construction We will operate industrial estates in a high-quality manner that will permit tenant companies to focus on stable production activities.
  • Establish a safe, secure, environmentally-friendly infrastructure, including facilities such as those for power supply ,industrial water/wastewater treatment, security and fire prevention systems, or improve the existing infrastructure to make it like the above.
  • Create employment by inviting companies, and in addition, promote locally-based contribution activities.
Undertake further improvements of infrastructure facilities and the service system in industrial estates and continue diverse local contribution activities.

We continue to carry out the following initiatives at the Karawang International Industrial City

  • Provide a service structure that takes into account safety, security and the environment
  • Activities that contribute to neighboring areas.
    1) Support for establishment of a pediatric health contact center, supplying baby food, providing medical equipment to midwives.
    2) Provision of scholarships to Jr. high and high school students.
    3) Afforestation/donating saplings to local governments and establishing agricultural parks.
Contribute to healthier and more enriched lifestyles
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Establishing a logistics network that is adapted to changes in consumer behaviors Distribution We will provide logistics services adapted to changes in distribution that have resulted from the expansion of the e-commerce market in emerging countries. Establish and promote the operation of high-value added logistics services for business operators who sell goods using e-commerce. Aim to increase the trade volume of products in the e-commerce logistics markets in emerging countries.
  • In FYE 2019, we forecast a 20% increase in EC logistics transactions for China's ITOCHU Logistics (China) CO., LTD. based on number of orders.
  • We have started applying the EC logistics business model deployed in China in India as well. We are considering introducing it in Indonesia as well.

ICT & Financial Business Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Reinvent businesses through technological innovation
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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. Achieve success new service and business development. We have invested in just over 10 startups in the fields of FinTech and health care. By implementing new cashless services, we are helping to improve the distribution efficiency of home delivery companies, and the store management efficiency of retailers.
Contribute to healthier and more enriched lifestyles
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Promoting good health among people
  • Business of clinical development support and pharmaceutical marketing support
  • 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. Store and utilize health data obtained from health checkup, wearable devices, and body composition scales. FYE 2021: Managing the health data of 1,000,000 people. The number of people targeted for health data management is increasing steadily, and is projected to reach 700,000 people by the end of FYE 2019. We are helping to promote people's health by working to make vital data visible and increasing health consciousness.
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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 of the number of customers and loan balance. We started retail financial business in Philippines. Also, we started working on P2P lending platform in Indonesia. Loan balance in each existing business is expanding as well.
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Maintenance of industrial, logistics, and transportation infrastructure. ICT infrastructure construction business. We will contribute to maintain 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 started to deal with five new suppliers in the field of system management, etc. By providing ICT solutions to strengthen information security, we contribute to the realization of safe, secure and convenient social infrastructure.
  • 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
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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 Itself>

  • Hours of overtime per person: 11% reduction(FYE 2018) compared to prior to introduction (FYE 2013)
  • Workers left 8:00 p.m. or later: 5% (FYE 2018)
  • Leave utilization rate:66% (FYE 2018), 36% (in first half of FYE 2019)
  • Planned to complete approximately 100 scenarios for RPA in FYE 2019. Also introduced the data analysis tool (HANABI).
  • Three divisions (the Fresh Food Division, Automobile, Construction Machinery & Industrial Machinery Division, and Fashion Apparel Division) are planned to implement BPR (Business Process Re-engineering) on an organizational level in FYE 2019.
  • Positive response rate of 76% to "employee engagement" items on the the FYE 2019 engagement survey.
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 Re: Body, a health management website for employees, and continue to provide special programs for employees at 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.
  • 100% participation in medical checkups (FYE 2018).
  • Improvement of health indices (such as BMI) : -3.1% compared to FYE 2011(FYE 2018).
  • Support for living with cancer: maintained a 0% rate of job separation due to cancer or long-term illness. Our goal of "balancing work and illness" has been reflected in our performance indicators from FYE 2019.
  • Rate of high-stress individuals according to stress checks: 3.1% (FYE 2019).
  • "Re:Body" usage: continued implementation of special program for those at risk of a lifestyle disease (117 participants in FYE 2019). Held 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.
Positive response rate of 71% to "education & training" items on the the FYE 2019 engagement survey.
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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%.
  • 9.5% of career-track employees are female (as of January 2019).
  • 7.7% of supervisory positions are female (as of January 2019).
  • Promoted human rights by carrying out training programs with the Tokyo Metropolitan Human Rights Promotion Center (TMHRPC). Also shared information within the company aimed at maintaining fair employment screening (July 2018).
  • Percentage of disabled employees: 2.19% (as of January 2019).

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Maintain rigorous governance structures
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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 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.
  • Based on the results of the Compliance Attitude Survey conducted in FYE 2018, we exchanged opinions with all Company Presidents regarding issues and conditions relating to individual and group companies.
  • In May 2018 we carried out e-learning for all employees of ITOCHU Corporation concerning the Antitrust Act. ITOCHU also conducted monitoring from October to December 2018 concerning application of the Basic Regulations on the Compliance with the Antimonopoly Act, etc. that we have established, one year after their introduction. We are currently requesting that principle group companies introduce similar regulations (implementation expected to be completed during FYE 2019).
  • The state of the cyclic training conducted in FYE 2019 is as follows (as of February 28, 2019).
  • For ITOCHU Corporation: Held 42 times with 1,265 attendees.
    For group companies (conducted for 91 companies): Held 177 times with 10,246 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.
  • We have decided to always keep 1/3 or higher percentage of outside directors.
  • We conducted the evaluation as to the effectiveness of FY 2019 Board of Directors, and released the result in April 2019.
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 andregulations, 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.
  • Each functional department responsible for risk management has reviewed the state of progress of the action plans for the first half of FYE 2019.
  • The Global Risk Management Division has compiled information on the risk management system—including handling of events that occurred within the relevant period—to the effect that it is functional. The Division reported this to the October 2018 Internal Control Committee, which has acknowledged the report.
  • Moreover, the Division plans to report to the same committee, when it is held in the first half of FYE 2020, concerning the review of the latter half of FYE 2019 and the FYE 2020 action plan.

Textile Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Reinvent businesses through technological innovation
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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. Multiple overseas group companies have prepared Product Life-cycle Management (PLM) software and we plan to begin using it from June 2019. We plan to start looking into expanding it to supplier factories and the ITC Sales Department from FYE 2020.
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. In FYE 2019 we reached 87 million RFID tags sold (a 24% increase over the previous year). We have partnered with a leading manufacturer in Hong Kong in hopes of encouraging their further spread in the domestic market.
Ensure stable procurement and supply
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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 are aiming to strengthen our supply chain from raw materials to finished products, with a focus on sustainable raw materials. Thus, we have conducted multiple investment and planning projects for suppliers of Lyocell and recycled polyester and these are progressing well.
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. This has not led to closing any contracts on a new brands that appeal to ethical lifestyles. But we see a need in the market and are continuing to work to achieve this.
  • Respect human rights
  • Ensure stable procurement and supply
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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. In FYE 2019 we conducted an investigation of 50 of our suppliers from the standpoint of Environmental, Social and Governance (ESG) criteria. In FYE 2020 we plan to increase this to 80 companies, and continue to work to establish a healthy supply chain.

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
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Taking countermeasures against climate change Overall power generation business We will develop power plants with a good balance between renewable energy power generation and conventional power generation, thereby contributing to the development of countries and regions in a sustainable manner that is optimized for each. Pursue opportunities to invest aggressively in renewable energy power generation through analyses of countries and regions. FYE 2031: Target to achieve a renewable energy ratio more than 20% (equity interest basis) and reflect this to the future strategy. In FYE 2019, we accomplished followings in the field of development of renewable energy.
Launching commercial operation of the final unit (No. 3 unit) of the Sarulla Geothermal IPP Project in Indonesia, Completion of the Saga-Ouchi Solar Power Plant in Saga Prefecture.
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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. In Japan, we participated in the field test of light electric trucks. We invested in two projects in China where the sales of electric vehicles is increasing drastically.
1) EV rental and maintenance service company Dishangtie Car Rental (Shenzhen) Co., Ltd.,
2) Chinese emerging EV manufacturer ZHICHEAUTO Technology (Shanghai) Co., Ltd.
Contribute to healthier and more enriched lifestyles
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Promoting good health among people Sales of leading-edge medical devices and provision of medical services We aim to improve quality of life by providing leading-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. We delivered radiation therapy equipment to Edogawa Hospital in August 2018, our second facility in Japan after the National Cancer Center Hospital in March 2017. We are pursuing collaborative research with National Cancer Center to establish national standard treatment. Also, with equipment's new technology, we are able to challeng for pancreatic cancer as well as other intractable cancers.
Respect human rights
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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 Sector

We are participating in Water Supply and Sewerage Treatment Companies in the UK and Spain, Seawater Desalination Projects in Australia and Oman. Our Project in Oman started commercial operation in 2018. We continue to invest in portfolio in the water sector.

Environment Sector

We invested in four Waste Management Projects in the UK and awarded a 25-year Waste Management and Resource Recovery Project in Belgrade, the republic of Serbia in 2017.
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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 observed ESG checklist for all new investment of development and also checked 7 main issues on guideline of social resposibility.
(Organizational Governance, Human Rights, Labor Practices, The Environment, Fair Operating Practices, Consumer Issues, and Community participaion and Development.)

Metals & Minerals Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Ensure stable procurement and supply
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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.
  • We have approved capital expenditure to develop the South Flank iron ore project in western Australia, in cooperation with our partner BHP, with the goal of maintaining and expanding our existing superior mining project. It is an excellent mining area that can sustain operations for 25 years or more starting in 2021.
  • We have promoted and participated both existing and new copper and coking coal exploration projects. This will allow us to secure excellent interests tied to next-generation prospects.
  • Respect human rights
  • Ensure stable procurement and supply
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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%.
  • In FYE 2019, we checked five existing projects and one new project under EHS guidelines using the check sheet, and set follow-up items.
  • We carried out CSR activities that contribute to the local community as part of each project we invest in.
  • As an original initiative, our Australian subsidiary, ITOCHU Minerals & Energy Australia Pty. Ltd., co-sponsored citizen awards in the communities surrounding the port of our iron ore projects.
Address climate change
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Taking countermeasures against climate change
  • Mining business
  • Environmental business
  • Material-related business
  • We will realize stable energy supply as our social mission and responsibility while fully considering its environmental impact.
  • We will contribute to reducing greenhouse gases through businesses related to lighter-weight vehicles and Electric Vehicles (EVs).
  • Continue to be involved in the development of technologies that contribute to the reduction of greenhouse gases emissions, including technologies for carbon dioxide capture and storage (CCS) and carbon dioxide capture and utilization (CCU).
  • Aim to develop an appropriate portfolio of coal assets by fully considering its environmental impact.
  • Strengthen initiatives in businesses that contribute to the development of lighter-weight vehicles and shift to EVs (aluminum, copper, and other businesses).
  • Contribution to the development of a low-carbon society by committing to technologies that help reduce greenhouse gases emissions.
  • Development of an optimal asset portfolio by fully considering social requirements, including those related to the shift to a low-carbon society.
  • Implementation and expansion of businesses that contribute to developing lighter-weight vehicles and shifting to EVs.
  • Carbon Capture and Storage (CCS): We continue to carry out information collection and analysis through observation and interviews with Japan CCS Co., Ltd. and companies conducting CCS projects overseas.
  • Carbon Capture and Utilization (CCU): Along with joining research organizations and collecting information, we are also engaged in specific projects.
  • We have considered our policy towards the coal business through actions such as analyzing multiple scenarios based on suggestions made by the Task Force on Climate-related Financial Disclosures (TCFD).
  • Consequently, we publicly announced our policy commitment in February 2019. This is: 1) - We will not acquire new thermal coal mining interest., and 2) - Regarding the existing thermal coal mining projects, we will continue to review it and contribute to the development of a sustainable society while responding to the social demands of stable supply of energy to domestic and overseas customers.
  • The amount of transactions for aluminum castings/die-cast materials for vehicles increased 6% in FYE 2019 over FYE 2018, 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
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Taking countermeasures against climate change Oil & Gas LNG (Liquefied Natural Gas) Projects Development and production of natural resources with consideration in the reduction of greenhouse gases. Partnering with experienced operators with high technical strength in the development and production of natural resources. Pursuing opportunities to take part in LNG projects (i.e. LNG or natural gas emits less greenhouse gases than the other fossil fuels). We have begun concrete discussion concerning participation in a new liquefied natural gas (LNG) project.
Contribute to healthier and more enriched lifestyles
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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.
  • In May 2018, our operating company began selling non-absorptive liquid for protecting oral mucositis, under the approval we received for the production and distribution of medical device in Japan. (This liquid control and relief pain of oral mucositis caused by chemotherapy or radiotherapy when treating diseases such as cancer.) In February 2019 we also gained approval for the production and distribution of medical device in China with regards to the same medicine.
  • We began full-scale sales of the pain reliever in North America after acquiring FDA approval through our operating company in February 2018.
Respect human rights
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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 duly complying with the HSE management standards set by the governments and relevant authorities.
  • In accordance with our internal regulations, we monitor the number of incidents, seriousness and contents of the cases on a monthly basis,. (In FYE 2019, no major operational incidents have been reported as of the end of February.)

Food Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Reinvent businesses through technological innovation
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Next-generation business Development Overall food-related businesses We will aim to improve productivity and efficiency by utilizing RPA and AI proactively. Introduce and utilize new technologies, especially in the sectors around retail that are facing a serious labor shortage, thereby maintaining social convenience. At the same time, disperse human resources to new services with the aim of further improving convenience in the consumer-related sector. FYE 2019: Start experimental operations that apply RPA and AI. All of us, including our subsidiaries and related companies are actively introducing Robotic Process Automation (RPA) in order to improve productivity and efficiency.
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. Promote the deployment of new products and new services through collaborations with the retail business operated by the ITOCHU Group. We are promoting new projects related to electronic money etc. with group companies like UFHD.
Address climate change
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Taking countermeasures against climate change Provisions Fresh foods We will reduce the impact of abnormal weather on the business with the aim of ensuring the stable supply of agricultural crops. Decentralize production areas by collaborating with Group companies. FYE 2021: Aim to develop other areas following the Philippines in the Fresh Produce Business. In FYE 2019 we selected candidates for new production areas. From FYE 2020 on, we plan to specifically promote the fruits and vegetables business in new production areas.
Contribute to healthier and more enriched lifestyles
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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 judgment on the Food Safety Management System (FSMS) to enhance the capability of human resources for selecting suppliers. Proceed with the appropriate allocation of human resources as judges mentioned on the left to business departments, with the leading role played by the food safety management organization of ITOCHU Corporation. In FYE 2019 three more personnel were certified as ISO22000 Provisional Auditors. We expect a similar increase in the qualified personnel in next fiscal year.
  • Respect human rights
  • Ensure stable procurement and supply
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Establishing a supply chain reflecting consideration for human rights and the environment Provisions We will establish a procurement system that conforms to third-party certification criteria and unique codes of conduct of manufacturers as our customers.
  • Start procuring coffee beans in Latin America in a way that conforms to the unique codes of conduct of manufacturers as our customers.
  • Participate in conferences of RSPO, a third-party certification body on palm oil, and start supplying RSPO-certified oil.
Proceed with discussions of targets for the sustainable procurement of palm oil by collaborating with the trading industry organization based on customers' situations and industry trends. By 2025 we aim to switch the palm oil we handle to sustainable palm oil (RSPO/MSPO/ISPO, etc.). On the basis of the industry trends and customers' circumstances, we are going to improve our procurement system to provide sustainable palm oil with industry groups.

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
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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 materials under high-level management or certified ones that we handle.

We also continue to carry out the following for suppliers

  • Verifying traceability by conducting individual on-site inspections
  • Expanding the handling of products subject to "timber traceability verification by third-party organizations.
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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. * Because of new commitment, review will be conducted from the next fiscal year.
Address climate change
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Taking countermeasures against climate change Cement alternatives such as slag We plan to expand the use of sustainable byproducts (slag) as a substitute material for the cement which is vital to fields like construction and civil engineering. Establish continuous, stable business flow between ironworks as the supplier of slag and other byproducts and demanders. 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 flow.
  • The volume of transactions to developing countries is expected to increase by 50% from the previous year.
  • We are engaged in continued consultation concerning planning and investment for the slag business.
Respect human rights
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Providing an environment that enables the focus to be placed on stable production activities Construction We will operate industrial estates in a high-quality manner that will permit tenant companies to focus on stable production activities.
  • Establish a safe, secure, environmentally-friendly infrastructure, including facilities such as those for power supply ,industrial water/wastewater treatment, security and fire prevention systems, or improve the existing infrastructure to make it like the above.
  • Create employment by inviting companies, and in addition, promote locally-based contribution activities.
Undertake further improvements of infrastructure facilities and the service system in industrial estates and continue diverse local contribution activities.

We continue to carry out the following initiatives at the Karawang International Industrial City

  • Provide a service structure that takes into account safety, security and the environment.
  • Activities that contribute to neighboring areas.
    1) Support for establishment of a pediatric health contact center, supplying baby food, providing medical equipment to midwives.
    2) Provision of scholarships to Jr. high and high school students.
    3) Afforestation/donating saplings to local governments and establishing agricultural parks.
Contribute to healthier and more enriched lifestyles
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Establishing a logistics network that is adapted to changes in consumer behaviors Distribution We will provide logistics services adapted to changes in distribution that have resulted from the expansion of the e-commerce market in emerging countries. Establish and promote the operation of high-value added logistics services for business operators who sell goods using e-commerce. Aim to increase the trade volume of products in the e-commerce logistics markets in emerging countries.
  • In FYE 2019, we forecast a 20% increase in EC logistics transactions for China's ITOCHU Logistics (China) CO., LTD. based on number of orders.
  • We have started applying the EC logistics business model deployed in China in India as well. We are considering introducing it in Indonesia as well.

ICT & Financial Business Company

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Reinvent businesses through technological innovation
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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. Achieve success new service and business development. We have invested in just over 10 startups in the fields of FinTech and health care. By implementing new cashless services, we are helping to improve the distribution efficiency of home delivery companies, and the store management efficiency of retailers.
Contribute to healthier and more enriched lifestyles
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Promoting good health among people
  • Business of clinical development support and pharmaceutical marketing support
  • 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. Store and utilize health data obtained from health checkup, wearable devices, and body composition scales. FYE 2021: Managing the health data of 1,000,000 people. The number of people targeted for health data management is increasing steadily, and is projected to reach 700,000 people by the end of FYE 2019. We are helping to promote people's health by working to make vital data visible and increasing health consciousness.
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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 of the number of customers and loan balance. We started retail financial business in Philippines. Also, we started working on P2P lending platform in Indonesia. Loan balance in each existing business is expanding as well.
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Maintenance of industrial, logistics, and transportation infrastructure ICT infrastructure construction business We will contribute to maintain 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 started to deal with five new suppliers in the field of system management, etc. By providing ICT solutions to strengthen information security, we contribute to the realization of safe, secure and convenient social infrastructure.
  • 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
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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 Itself>

  • Hours of overtime per person: 11% reduction(FYE 2018) compared to prior to introduction (FYE 2013)
  • Workers left 8:00 p.m. or later: 5% (FYE 2018)
  • Leave utilization rate:66% (FYE 2018), 36% (in first half of FYE 2019)
  • Planned to complete approximately 100 scenarios for RPA in FYE 2019. Also introduced the data analysis tool (HANABI).
  • Three divisions (the Fresh Food Division, Automobile, Construction Machinery & Industrial Machinery Division, and Fashion Apparel Division) are planned to implement BPR (Business Process Re-engineering) on an organizational level in FYE 2019.
  • Positive response rate of 76% to "employee engagement" items on the the FYE 2019 engagement survey.
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 Re: Body, a health management website for employees, and continue to provide special programs for employees at 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.
  • 100% participation in medical checkups (FYE 2018).
  • Improvement of health indices (such as BMI) : -3.1% compared to FYE 2011(FYE 2018).
  • Support for living with cancer: maintained a 0% rate of job separation due to cancer or long-term illness. Our goal of "balancing work and illness" has been reflected in our performance indicators from FYE 2019.
  • Rate of high-stress individuals according to stress checks: 3.1% (FYE 2019).
  • "Re:Body" usage: continued implementation of special program for those at risk of a lifestyle disease (117 participants in FYE 2019). Held 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.
Positive response rate of 71% to "education & training" items on the the FYE 2019 engagement survey.
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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%.
  • 9.5% of career-track employees are female (as of January 2019).
  • 7.7% of supervisory positions are female (as of January 2019).
  • Promoted human rights by carrying out training programs with the Tokyo Metropolitan Human Rights Promotion Center (TMHRPC). Also shared information within the company aimed at maintaining fair employment screening (July 2018).
  • Percentage of disabled employees: 2.19% (as of January 2019).

Materiality SDGs Targets Issues to address Business area Commitment Specific approach Performance indicators Degree of Progress
Maintain rigorous governance structures
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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 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.
  • Based on the results of the Compliance Attitude Survey conducted in FYE 2018, we exchanged opinions with all Company Presidents regarding issues and conditions relating to individual and group companies.
  • In May 2018 we carried out e-learning for all employees of ITOCHU Corporation concerning the Antitrust Act. ITOCHU also conducted monitoring from October to December 2018 concerning application of the Basic Regulations on the Compliance with the Antimonopoly Act, etc. that we have established, one year after their introduction. We are currently requesting that principle group companies introduce similar regulations (implementation expected to be completed during FYE 2019).
  • The state of the cyclic training conducted in FYE 2019 is as follows (as of February 28, 2019).
  • For ITOCHU Corporation: Held 42 times with 1,265 attendees.
    For group companies (conducted for 91 companies): Held 177 times with 10,246 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.
  • We have decided to always keep 1/3 or higher percentage of outside directors.
  • We conducted the evaluation as to the effectiveness of FY 2019 Board of Directors, and released the result in April 2019.
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 andregulations, 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.
  • Each functional department responsible for risk management has reviewed the state of progress of the action plans for the first half of FYE 2019.
  • The Global Risk Management Division has compiled information on the risk management system—including handling of events that occurred within the relevant period—to the effect that it is functional. The Division reported this to the October 2018 Internal Control Committee, which has acknowledged the report.
  • Moreover, the Division plans to report to the same committee, when it is held in the first half of FYE 2020, concerning the review of the latter half of FYE 2019 and the FYE 2020 action plan.

SDGs (Sustainable Development Goals)

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