ITOCHU Group has established the ITOCHU Group Sustainability Policy based on its corporate mission and changes in the external environment. We work to promote initiatives that contribute to sustainability in a structured and systematic manner. Specifically, we incorporate the Group’s Material Issues into the Sustainability Action Plans, and we aim to help resolve key sustainability challenges through trading and business investments based on the policies set out in our management policy and management plan.
Through our Sustainability Action Plans, we manage key challenges to be addressed, target business areas, specific approaches, key performance indicators, and the status of progress toward them every year. We conduct progress reviews based on the key performance indicators set for each of the eight division companies and for administrative divisions, and report this progress to the Sustainability Committee every year. We implement the PDCA cycle and disclose this information to ensure that progress on Material Issues continues.
Click here for the ITOCHU Group Sustainability Policy.
Flow of Sustainability Promotion
Risks and Opportunities for Each Material Issue
Material Issues
Risks
Opportunities
Evolve Businesses through Technological Innovation
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.
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.
Address Climate Change (Contribute to a Decarbonized Society)
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.
Develop a Rewarding Work Environment
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.
Improvement of labor productivity, health and motivation, securing of excellent human resources, enhanced capability of responding to changes and business opportunities, and other events that will result from providing a motivating workplace environment.
Respect and Consider Human Rights
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.
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.
Contribute to Healthier and More Affluent Lifestyles
Decline in credibility that would result from the occurrence of consumers and service users’ safety or health issues.
Impact on business of destabilization of the market or social security system based on policy change.
Increase in demand for food safety, security and health improvement.
Expansion of information, financial and logistics services resulting from an increase in consumer spending or penetration of the internet.
Ensure Stable Procurement and Supply
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.
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.
Maintain Rigorous Governance Structures
Occurrence of business continuity risk or unexpected loss resulting from the malfunction of corporate governance or internal control.
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.
Social Impacts of Each Material Issue
Material Issus
Impact Classification
Impact Description
Evolve Businesses through Technological Innovation
Innovation
Promote DX, and improve productivity and operational efficiency of the entire industry.
Leverage new technologies (such as Fintech, IoT, AI, and remote technology, etc.) and business models, and promote the creation of new businesses and the provision of innovative services utilizing consumer contact points.
Address Climate Change (Contribute to a Decarbonized Society)
GHG Emissions
Comply with the Japanese government’s target, achieve “virtually zero” GHG emissions by 2050. Furthermore, aim for “zero offset” by 2040 through the active promotion of businesses that reduce emissions, and contribute to reducing the impact of climate change.
Climate Change Opportunities
Promote integrated projects including the development, operation, and fuel supply of ammonia-fueled vessels, and contribute to net zero emissions of GHGs in the marine and shipping sectors.
Develop, own, and operate renewable energy power plants so as to realize a stable supply of renewable energy, and contribute to mitigating the effect of climate change.
Provide a stable supply of AI storage batteries that help optimize the balance of power supply in household regions and contribute to mitigating the effect of climate change.
Promote sales of electric vehicles (EVs) and hybrid vehicles (HVs), and contribute to global warming countermeasures in the transportation sector.
Promote environmentally friendly energy use in regional heat supply, and contribute to mitigating the effect of climate change.
Climate Change Adaptation
Diversify origin and development of local industries so as to hedge weather risks, and reduce the impact of extreme weather and global warming in food, forestry sectors.
Transition Risk
Promote efforts to completely withdraw from fuel coal mine interests, and contribute to mitigating the effect of climate change.
Work with specialized companies on resource development projects that take into account GHG reduction (Transition Fuel), and contribute to mitigating the effect of climate change.
Capital Introduction
Continue to invest in the development of technologies that contribute to the reduction of greenhouse gas emissions, such as CCS (CO2 storage) and CCU (CO2 utilization), and contribute to mitigating the effect of climate change.
Promote businesses related to the stable supply of materials necessary for the production and supply of fuels such as hydrogen and ammonia, raw materials such as nickel and PGM, and storage batteries, and contribute to mitigating the effects of climate change.
Expand the use of sustainable by-products as an alternative to cement, which is indispensable for civil engineering and construction, and contribute to mitigating the effect of climate change.
Pollution Prevention and Resource Recycling
Work with local specialized companies in Europe and the Middle East, promote waste disposal and waste power generation projects, and contribute to mitigating the effect of climate change.
Water Resources
Work with local specialized companies mainly in Europe and the Middle East, promote water treatment business, and promote effective use of water resources and contribute to reducing the environmental impact.
Develop a Rewarding Work Environment
Labor Practices
Prohibit all forms of discrimination, create an environment in which employees with childcare, nursing care, or illness can also play an active role, and support the activities of diverse human resources.
Enhance occupational health services and health & safety management system, and promote employees’ health and safety.
Penetrate labor standards, work style reform, enhancing employee benefits, and promote improvement of labor productivity and employee engagement.
Develop training programs for all levels from a global perspective, develop and utilize personnel systems based on management by objectives, and promote the development of excellent human resources.
Respect and Consider Human Rights
Labor Practices
Establish and conduct fair recruitment, harassment prevention, human rights training, and grievance hotlines, and reduce the negative impact on human rights.
Mining
Give due consideration to the environment, health and occupational safety (EHS) and coexistence with local residents, and promote sustainable mining operations.
Contribute to medical care and education for local communities in the areas where we operate our mines.
Forest
Improve supply chain transparency in the procurement of raw materials for wood, palm oil, natural rubber, food, etc., and prevent negative impacts on forests, the environment and local residents.
Supply Chain
Continuously conduct surveys on human rights, society, and the environment of new businesses, business investments and major suppliers, and reduce negative impacts of human rights, society and the environment throughout the value chain.
Conduct human rights due diligence, and reduce negative human rights, society and environment throughout the value chain.
Community Contribution
Promote social contribution activities for local communities, and realize a symbiotic community where sports and cultural exchange are possible.
Contribute to Healthier and More Affluent Lifestyles
Food Safety
Select and concentrate on suppliers to ensure stable procurement of safe and secure food products, and provide safe products to our customers.
Work with suppliers, provide products with food information and nutritional balance, and contribute to the promotion of people’s health.
Medical Health
Provide advanced medical equipment and advanced medical services, develop safe pharmaceuticals and other product, and contribute to the improvement of people’s health.
Retail Finance
Expand financial services that support people who need financing for their daily lives and business continuity (low-income people, etc.), and contribute to a healthy and prosperous life.
Ensure Stable Procurement and Supply
Forest
Increase supply chain transparency in the procurement of raw materials for wood, palm oil, natural rubber, food, fiber, etc., and prevent negative impacts on forests, the environment and local residents.
Plastic
Work with brand owners, supply environmental-friendly materials such as bioplastics, establish recycling and reuse programs, and contribute to solving social problems such as marine plastics and waste plastics.
Electric Power, Mining, Oil and Gas Fields
Reduce impacts on biodiversity through ESG risk assessment focusing on biodiversity in investment projects (electric power, mines, oil and gas fields, etc.).
Stable Supply of Resources
Diversify production areas to hedge weather risks, cultivate new production areas through the development of local industries, and contribute to the stable supply of agricultural products.
Work with key partners, maintain a value chain of mining resources and next-generation fuels (hydrogen and ammonia) that reinforces existing achievements, and contribute to the stable supply of resources.
Supply Chain
Strengthen communication on the respect for human rights and environmental management with major suppliers of natural resources, and prevent negative impacts of suppliers on the economy, environment, and people.
Further expand and increase the handling of sustainable materials, and contribute to the stable supply of textile products.
Pollution Prevention and Resource Recycling
Contribute to the promotion of the effective use of resources and the reduction of adverse environmental impact in our own offices and business activities such as waste disposal and food.
Comply with relevant chemicals laws and regulations, and minimize the adverse effects on human health, the environment and the stable supply of chemicals.
Water Resources
Promote the efficient use of water in our own offices and business activities, promote water treatment projects in water-stressed areas, and contribute to the promotion of effective use of water resources and reduction of environmental impact.
Maintain Rigorous Governance Structures
Governance
Provide highly effective supervision of management, increase the transparency of decision-making, ensure appropriate and efficient business execution, and meet the expectations of our stakeholders through sustainable growth.
Establish a group risk management system, maintain continuous performance, and meet the expectations of our stakeholders.
Further foster awareness among employees that compliance at all times constitutes a contribution to the company and society, and mitigate adverse impacts on the economy (competition practices, procurement practices, etc.