SUSTAINABILITYREPORT

2023
As of March 1, 2024

Environment
SocialGovernance

Please refer to the Sustainability Website for the latest information.

Contents

Sustainability Report 2023

Top Commitment

5■ Message from Executive Vice President

5

Philosophy and Approach Related to Sustainability

6■ Philosophy and Approach

6
6
7
7
8
8
8
9

The Three Corporate Principles
Corporate Standards of Conduct
Mitsubishi Corporation Code of Conduct
Mitsubishi Corporation Environmental Charter
Mitsubishi Corporation Social Charter
Human Rights Policy
Value Creation Process

MC’s Sustainability Promotion Framework

10■ MC’s Sustainability Promotion Framework

10
10

Sustainability Initiatives■ Companywide Sustainability Framework

11■ Promoting Sustainability Through Business

12
12
12
13

Cycle for Integrating Sustainability into Business Strategy
Sustainability Promotion Framework in Each Business Group
Incorporating Sustainability into Individual Projects■ Disclosure (about the Sustainability Website)
Collecting Sustainability Information on a Consolidated Basis■ Dialogue with Stakeholders(Incorporating External Perspectives)
Dialogue with Stakeholders in FY2022
Sustainability Advisory Committee

Materiality
Overview of Materiality
Integrating Materiality into Management
Relevance of MC’s Materiality to the SDGs
Materiality Identification Process

22
22
22

■ Conserving and Effectively Utilizing Natural Capital
Related SDGs Themes
Action Plan Regarding this Material Issue■ Promoting Stable, Sustainable Societies and Lifestyles
Related SDGs Themes
Action Plan Regarding this Material Issue■ Utilizing Innovation to Address Societal Needs
Related SDGs Themes
Action Plan Regarding this Material Issue■ Addressing Regional Issues and Growing Together with
Local Communities
Related SDGs Themes
Action Plan Regarding this Material Issue■ Respecting Human Rights in Our Business Operations
Related SDGs Themes
Action Plan Regarding this Material Issue■ Realizing a Highly Transparent and Flexible Organization
Related SDGs Themes
Action Plan Regarding this Material Issue

Participation in Initiatives
Support for the UN Global Compact
WBCSD
Task Force on Climate-related Financial Disclosures（TCFD）

59■ Our Approach

59
59
60
61
63

Roadmap to a Carbon Neutral Society
Sustainability as a Growth Lever■ 1.5°C Scenario Analysis
Approach to Scenario Analysis
The 1.5°C Scenario Used in FY2022
Influences and Considerations for the FY2022 1.5°C Scenario■ Results of the 1.5°C Scenario Analysis and Relevant
Implications
Identification of Businesses Subject to Analysis
Climate Risks
Climate Opportunity
Summary■ Physical Risks
Physical Risk Assesment Process
Physical Risk Assessment Results■ Key GHG Metrics and Disclosure Highlights
Targets
Scope 1 & 2
Scope 3 Category 11
Avoided Emission
Policy on Coal-fired Power Generation Businesses (IPP and EPC)

■ Mitigation and Adaption Initiatives
Renewable Energy
EV/ Batteries
Ammonia Fuel/ Hydrogen Energy/ SAF
CCUS
Carbon Credit
Other Low-Carbon/Decarbonized Businesses (Green Logistics, Green
Buildings, etc.)

26
26
26
30
30
30

65
65
67
67
67
69
70
70
70
75
77
78
78
79
80
80
81
82
83
87
88
88
91
92
95
99
100

34
34
34

■ Other Data and Report

39
39
39

■ Natural Gas and LNG-related Data

109
109
110

■ Renewable Energy Related Data

112
112
113

Other Reference Data
Climate reports
TCFD reporting
Equity Share of Oil and Gas Upstream Production
Involvement in LNG Projects

45
45
45

List of Renewable Energy Businesses
List of Offshore Power Transmission Businesses■ Fostering Vibrant Workplaces That Maximize the Potential
47
of a Diverse Workforce
Related SDGs Themes
Action Plan Regarding this Material Issue

Climate Change■ New Activities Based on the Roadmap to a Carbon Neutral
Society and Midterm Corporate Strategy 2024 - Creating
65
MC Shared Value

18
19
20
20
21
22

Environment

Introduction and Mission
Creating MC Shared Value
Partnerships with Stakeholders
Governance

15
15
16

■ Contributing to Decarbonized Societies
Related SDGs Themes
Action Plan Regarding this Material Issue

Environment

14
14

Materiality Details

Mitsubishi Corporation

47
47

Environmental Management

114■ Policy

114
114
115

MC’s Environmental Policy
Green Procurement Policy

52
52
52

■ Structure

116
116
117
118
118

■ Initiatives

119
119

■ Relevant Data

120
120

Environmental Management Systems (EMS) Promotion Framework
Status of ISO 14001 Acquisition
Environmental Audits
Environmental Communications

56
56
56
57

Procurement of CO2-Free Electricity for the Head Office Building

Number of Environmental Reports and Corrective Measures

1

107
107
108
108

Contents
Water Resources

Sustainability Report 2023

121

■ Policy

121■ Targets

122■ Structure

123
123

Risk Management■ Initiatives
Initiatives to Maximize Water Efficiency
Initiatives to Reduce Water Consumption
Initiatives in Water-Stressed Regions
Providing Solutions through our Business Activities■ External Collaboration
Responding to CDP
Participation in the Water Project of the Ministry of theEnvironment of Japan
Collaboration with NGOs

129

■ Targets

130■ Structure

131
131

■ External Collaboration
Status of Participation in the Round Table on Responsible Soy
Association (RTRS)
Compliance with the Soy Moratorium (Moratória da Soja)
Participation in CDP
Cermaq Initiatives
Examples of Collaboration with Government Bodies
Examples of Collaboration with International Organizations and NGOs
Foundation and Fund Activities
Examples of Collaboration with Other Companies■ Performance
Results of Social Contribution Activities■ Structure

144
144

■ External Collaboration
Japan Foreign Trade Council■ Initiatives
Employee Training
Educational Support for Indigenous Youths in Australia throughthe Clontarf Foundation
Friendship Camp for Mothers and Children■ Examples of External Collaboration
Examples of Collaboration with International Organizations
Participation in Initiatives

Grievance Mechanism

141
141

143

Initiative to Reduce Waste Production (Non-Consolidated Basis)
MC Fashion’s “THE ME” BusinessInitiatives with Lawson, Inc. to Reduce Waste Losses
Initiatives to Reduce Waste Production (Mitsubishi ShokuhinCo., Ltd.)
Application of Life Cycle Analysis in our Salmon Farming BusinessInitiatives to Prevent Oil Spills

Human Rights and Environmental Risks

137
137
137
138
138
139
140
140

142

162
162
165

■ Human Rights and Environmental Due Diligence137■ Targets

162■ Policy

Consultation Desk Framework
Dialogue with Stakeholders

135■ Policy

Human Rights■ Structure

135

142

■ Initiatives

SocialBasic Approach on Respect for Human Rights
Policies and Measures for Specific Matters

131

Prevention of Pollution

Risk Management

Social128
128■ Policy

Examples of Protection/ Conservation Activities throughBusiness Operations

Climate Change Data
Water Resources Data
Prevention of Pollution Data
Efficient Use of Resources Data

128
128

129

■ Initiatives

154
155
158
159
160

Environmental Data

125
125
125
126
127

Biodiversity

Risk Management
Identifying and Responding to Dependencies and Impacts on Nature
Using the TNFD Beta Framework

Mitsubishi Corporation

171
171
172
172
172
173
173
174
174
174
174
174
174

■ Submitting Inquiries

175■ Process After Receiving an Inquiry

176

Labor Practices

177

1.Labor Standards, Labor Environment and Related Matters

177■ Policy

177
177
177

■ Structure
Risk Management

148
148

170
170

■ Processing Inquiries through the Grievance Mechanism

Basic Approach to Human Resources
Policy on Labor Practices

147
147
147

168
168

■ Policy
Eligible Users
Eligible Topics
Eligible Product Categories
Eligible Companies
Handling of Non-Eligible Inquiries

145
145
146
146

166
166
167

■ Initiatives(1) Conducting Fair Recruitment Activities and Providing Job
Opportunities(2) New Work Styles Befitting MC(3) Respect for Human Rights

179
179
180

Efficient Use of Resources

149■ Policy

149■ Structure

150
150

■ Relevant Data

182

■ Targets

151

2.Employee Relations

183■ Initiatives

152■ Policy (Freedom of Association and Collective Bargaining)

183
183
183
183

Risk Management

Recycling and Closed-Loop Business Initiatives(Livestock Feed Production Business)
Recycling and Closed-Loop Business Initiatives(Livestock Business)
Participation in the PET Chemical Recycling Business

Basic Approach
Policy on Freedom of Association and Collective Bargaining
Collective Bargaining

152
153
153

■ Structure
Risk Management

2

180
180
181

184
184

Contents

Sustainability Report 2023

Mitsubishi Corporation■ Initiatives

185

Customer Responsibility

228■ Performance

186
186

■ Policy

228
228
229
229

Agreement on Collective Bargaining

Diversity Management

187■ Policy

187

A Flexible and Powerful Organization Capable of Adapting to Changing
Business Environments

187■ Structure

189■ Initiatives

190
190
192
194
194
195

Supporting Employees with Family Responsibilities
Supporting Women’s Careers at MCEngaging the Senior Workforce
Diverse Employment Opportunities for Persons with Impairments
Engaging a Global Workforce■ Relevant Data
Data on Employees Using MC’s Various Systems (As of March
31 Each Year)
Percentage of Women in Management-Level Positions andGender Composition of Board Members
MC Women Overseas (As of April 2023)
Employment Rate of Persons with Impairments
Independent Practitioner’s Assurance■ Evaluation by Society
Key Certifications

Well-being (Health & Productivity Management,
Occupational Safety and Health)■ Policy
Management Message
MC Group Occupational Safety and Health (OSH) Policy
Fostering Vibrant Workplaces That Maximize the Potential of a Diverse
Workforce and Reducing Health Risks
Supply Chain Initiatives
Policy to Proactively Address Global Health Issues (HIV/AIDS,
Tuberculosis, Malaria)■ Targets
MC GroupMC■ Structure
Employee Participation
Loan and Investment Screening
Risk Management (Risk Assessment)
Reporting of Workplace Accidents■ Initiatives
Initiatives on a Non-Consolidated Basis
Employee Health Management
Initiatives on a Consolidated Basis■ Performance Data
Occupational Safety and Health Data (Consolidated and NonConsolidated Basis)
Other Data
Independent Practitionerʼs Assurance

MC Group HRD Program Structure■ Initiatives
Promoting Career Autonomy
Introduction of Human Resource Development Programs■ Performance
Human Resource Development and Training Data

240

■ Policy

240
240
240
240
240

■ Structure
Risk Management■ Corporate Philanthropy Activities
Employee Volunteer Activities

201■ Examples of Initiatives

201
201
201

Urban Development Projects to Enhance Urban Value in Indonesia
HERE’s DX Business
Local Procurement in the MDP Business
Mine Closure Initiatives
Community Investment

202
202

■ Other Reference Data
202

Donation Amounts

203
203
203

Employee Training■ External Collaboration
Participation in Supply Chain Initiatives
Cermaq Initiatives
Mitsubishi Corporation Packaging Ltd. Initiatives
Lawson, Inc.
PrincesOlam■ Related data
Data on RSPO-Certified Palm Oil
Data on ASC-Certified Products
Data on FSC® CoC-Certified Products
Procurement Data for Organic Cotton

220
220
221
221
222
222
223
227
227

3

251
251

252
252
254
255
255

■ Initiatives

214
217
218

246
246
247
247
248
248

252

Risk Management

214

242
242

■ Policy■ Structure

207
207
207
212

241
241

Supply Chain Management
Basic Policy
Individual Guidelines
Animal Welfare Policy for Suppliers
Bluefin Tuna Sustainable Sourcing Policy

204
205
206
206
206

239
239
239
239

Community
Basic Approach
Policy on Community Investment
Policy on Local Employment and Procurement
Policy on Mine/Site Decommissioning

200
200

219
219

■ Structure

233
233
233
234
237
238

Salmon Aquaculture Industry - Global Salmon Initiative (GSI)
Seafood Industry - SeaBOS
UN Global Compact - Ocean Stewardship Coalition

197
198
199
199

219

Priority Targets and Current Status232■ Initiatives■ Participation in External Initiatives

196■ Policy
Principles of Human Resource Development■ Targets
Initiatives on a Non-Consolidated Basis
Initiatives in the Food Science BusinessResponse to Issues Related to the Food Products Business
Nutritious Product Initiatives
Initiatives for Better Access to Medical Care

196

Human Resource Development■ Targets

Responsible Advertising and Marketing
Policy and Approach Related to Food Products Businesses
Access to Better Nutrition and Medical Care

256
256
263
263
264
264
265
265
265
266
267
268
268
268
268
268

Contents

Governance

Sustainability Report 2023

Mitsubishi Corporation

Directors’ and Audit & Supervisory Board Members’ Remuneration: Total
Amounts and Number of Eligible Persons in the Fiscal
305
Names, Titles, Total Amounts of Consolidated Remuneration and Amountby Type of Remuneration for Each Director and Audit & Supervisory
Board Member
306
Significant Employee Salaries of Directors and Audit & Supervisory Board
Members Serving Concurrently as Employees
306
Employee Salaries
306

GovernanceCorporate GovernanceCompliance

307

Board of Directors and Shares, etc.

270

■ MC’s Basic Policy on Corporate Governance■ Policy

307

270■ Board of Directors■ Structure

271

308
308
311

■ Initiatives

312
312
313
313
313
314
316

■ Performance

317
317
317
317
318

Risk Management319■ Policy

319■ Risk Management System

320
320
321

Composition and Size of the Board of Directors and the Policy
and Process for Appointing Nominated Directors
Skills Matrix of Directors and Audit & Supervisory Board Members
Composition of the Board of Directors
Matters Deliberated by the Board of Directors■ Board of Directors’ Advisory Bodies
Governance, Nomination and Compensation Committee
International Advisory Committee■ Independent Directors and Independent
Audit & Supervisory Board Members
Independent Directors
Independent Audit & Supervisory Board Members
Selection Criteria for Independent Directors and Independent
Audit & Supervisory Board Members■ Initiatives to Enhance the Effectiveness of the Board of
Directors

Investigations of Compliance Violations and Response Systems
Monitoring System

271
272
274
276

Initiatives for Preventing Corruption
Initiatives in Selecting and Managing Agencies, Intermediaries, etc.
Mitsubishi Corporation Group’s Anti-Corruption Guideline
Cases of Corruption
Internal Whistleblowing System
Supervision by the Board of Directors

277
277
277

Results of Compliance Training
Number of Compliance Violations
Provisions Concerning Legal Violations and Litigation
Tax Transparency

279
279
280
280
282
282

Briefing Sessions Before Board of Directors’ Meetings
Meetings of Independent Directors and Independent Audit & Supervisory
Board Members
282
Discussion between Independent Members of the Board and Officers andEmployees
282
Dialogues with and Site Visits to Business Subsidiaries and Affiliates
283
Orientation upon Assumption of Office284
The Evolution of MC's Corporate Governance284
Evaluation of the Effectiveness of the Board of Directors
285■ Initiatives on Japan’s Corporate Governance CodeMC’s Stance on Acquisition, Holding, and Reduction in Listed Shares
MC's Pension Management Structure
Policy and Procedures for Appointment and Dismissal ofManagement Executive and Appointment of Nominated Directors andAudit & Supervisory Board Members
Details of Retired Executives Currently Serving in Advisory Positions
Policy of Dialogue with Shareholders

Overview
Responding to Business Investment Risk

■ Crisis Management on a Consolidated Basis/
Business Continuity Management (BCM)
Structure and Concept
Status of Initiatives in Normal Conditions
Business Continuity Management (BCM)
Implementation Status Monitoring
Information Security and Cyber Security Measures
Independent Auditors

286
286
287

287
288
288

Audit & Supervisory Board and Audit■ Audit & Supervisory Board Members /Audit & Supervisory Board
Audit Plans
Audits of Management Performance
Enhancing the Effectiveness and Auditing Activities of the Audit &Supervisory Board (Members)
Enhancement of Tripartite Audits■ Audit

Audit & Supervisory Board Member Audits
Internal Audits
Accounting Audits
Mutual Cooperation among Audit & Supervisory Board Member Audits,
Internal Audits and Accounting Audits, and their
Relationship with Internal Control Departments■ Directors’ and Audit & Supervisory Board Members’
Remuneration

Basic Approach to the Package
The Process for Setting Remuneration for Directors andAudit & Supervisory Board Members
Calculation Method for Performance-Linked Remuneration
Conceptual Image of Payment Mix for Remuneration of Executive Directors
Guideline for Share Ownership (Standard)
Deliberation Process Regarding the Revision of Remuneration Package
for Executive Directors

326■ Customers and Partners

326
326

■ Employees
Examples of Engagement290■ Shareholders, Investors and Creditors
Examples of Engagement

290
291
292

■ Local Communities
Examples of Engagement

293
294

■ NGOsExamples of Engagement

295
295
295
296

■ Governments and Local Authorities

296

Corporate GovernanceDirectors’ and Audit & Supervisory Board Members’
Remuneration, etc.

MC’s Primary Stakeholders
Examples of Engagement

Corporate Governance

297
297
297
298
300
303
303
303

4

322
322
323
323
324
325
325

327
327
327
327
328
328
328
328

Examples of Engagement

328
328

External Evaluations

329

Independent Practitionerʼs Assurance Report331

Environment

SocialGovernance

Sustainability Management

Top commitment
Message from Senior Vice President
Mitsubishi Corporation (MC), since its establishment, has held the Three
Corporate Principles as its core philosophy, and aims to contribute to thesustainable development of society by conducting its global business activities
with integrity and fairness in line with these principles.
The need to find solutions to the challenges facing the global environment andsociety is becoming more urgent, and expectations upon the private sector tobe part of those solutions to societal issues such as climate change, humanrights, and biodiversity are increasing year by year.
In Oct 2021, MC formulated its “Roadmap to a Carbon Neutral Society” in which we declared our goal of achieving a carbon neutral
society, fulfilling our responsibility as an active player in industries including resources and energy by maintaining stable energy supply
while providing decarbonization solutions.
In this Roadmap, in addition to committing to halve GHG emissions by FY2030 (FY2020 baseline) and to achieve Net Zero by 2050, we
have also established “Integrated EX (Energy Transformation)/DX (Digital Transformation) initiatives to ’Create a New Future’” as acommon theme for company-wide business promotion.
Furthermore, in Midterm Corporate Strategy 2024, we defined and announced our goal of creating "MC Shared Value (MCSV)" as thecontinuous creation of significant shared value by enhancing the MC Group’s collective capabilities in order to address societal
challenges.
In addition, we also announced the redefinition of our "Materiality" as the eight crucial societal issues that the MC Group will prioritize
through our business activities. We intend to continuously create MCSV by addressing the societal issues laid out in our Materiality,
including ‘Contributing to Decarbonized Societies’, while pressing ahead with our growth strategies such as utilizing integrated EX/DX
initiatives.
Lastly, as a company that has continued to grow alongside the society by developing business in response to the needs of the changing
times, it is vital for MC to collaborate and grow together with its diverse stakeholders. With this in mind, we have established the positionof Chief Stakeholder Engagement Officer (CSEO) in April 2023, and I have been appointed.
By engaging with our increasingly diverse stakeholders interactively and continuingly, we aim to grow sustainably through the creation of
MCSV by incorporating third-party perspectives into our growth strategies.

Kenji Kobayashi
Senior Vice President
Corporate Functional Officer, CSEO

5

Environment

SocialGovernance

Sustainability Management

Philosophy and Approach Related to
Sustainability
The Three Corporate Principles

Corporate Standards of Conduct

Mitsubishi Corporation Code of Conduct
Mitsubishi Corporation Social Charter

Mitsubishi Corporation Environmental Charter
Human Rights Policy

Value Creation Process

Philosophy and Approach
The Three Corporate Principles
Contributing to Society through Business Firmly Rooted in Principles of Integrity and Fairness
The Three Corporate Principles Corporate Responsibility to Society, Integrity and Fairness, and Global Understanding Through Businesshave served as MC’s core philosophy since MC’s inception, inspiring us to conduct fair and sound business activities at all times. We haveconstantly endeavored to enhance our compliance initiatives. Measures have included establishing the Corporate Standards of Conduct to
set forth our expectations with regard to how business should be conducted, in conjunction with developing various compliance-related
internal rules, introducing a compliance officer system, and expanding and upgrading risk management frameworks. The Mitsubishi
Corporation Code of Conduct requires employees to conduct business in compliance with laws and regulations as well as global standards
such as the Universal Declaration of Human Rights established by the United Nations (UN) and the core labor standards of theInternational Labor Organization (ILO). It also requires officers and employees (including full-time and part-time employees, secondees
and temporary staff; hereinafter only referred to as "officers and employees") to act in a socially responsible manner by complying with thehighest ethical standards, and to acknowledge commitment to the Mitsubishi Corporation Code of Conduct. MC adopted theEnvironmental Charter Social Charter, and Human Rights Policy in accordance with the Three Corporate Principles, and we commit toincrease our corporate value as well as to contribute to the sustainable development of society, as a globally integrated businessenterprise. MC Group companies share a common history and philosophy* as they continue to grow together and learn from one another.
MC will fulfill our mission of simultaneously generating economic value, societal value, and environmental value through our businessactivities.

* The Three Corporate Principles, Corporate Standards of Conduct, Code of Conduct, Environmental Charter, Social Charter, and Human Rights Policy areshared with all MC Group employees globally via a portal site for MC Group companies as well as through various internal training programs.

6

Environment

SocialGovernanceCorporate Standards of Conduct
1. Aim of Corporate Business Activities
Through its business activities, Mitsubishi Corporation will endeavor to increase its value. At the same time, MC will strive to enrichsociety in all ways, developing and offering its customers the best services and products, with the highest regard for safety.
2. Fairness and Integrity in Corporate Business Activities
Mitsubishi Corporation will continue to develop its business activities in compliance with all relevant laws, international regulations
and internal rules. MC will act responsibly and will respect the highest social standards.
3. Respect for Human Rights and Employees
Mitsubishi Corporation will respect human rights and will not engage in any discrimination. MC will preserve and improve its
corporate strengths through the development of its employees, all the while respecting the character and individuality of each
employee.
4. Information Security and Disclosure
While Mitsubishi Corporation will continue to develop, implement and improve the effectiveness of its information security
management system, at the same time MC will disclose information accurately and in a timely fashion, so as to maintaintransparency and be correctly understood by both its stakeholders and the general public.
5. Consideration for Environmental Issues
Mitsubishi Corporation understands that an enterprise cannot continue to prosper without consideration for its environmental
performance, and will strive to protect and improve the global environment and pursue sustainable development through all aspectsof its business activities.
6. Contribution to Society
As a responsible member of society, Mitsubishi Corporation will actively carry out philanthropic programs in an effort to promote theenrichment of society. Moreover, MC will support efforts of its employees to contribute to society.

Mitsubishi Corporation Code of Conduct
Basic Policy
All officers and employees of Mitsubishi Corporation (the “Company”) must comply with all applicable laws, rules and regulations where
they operate, international standards and rules, and all internal corporate rules and policies. In addition, all officers and employees of
MC must act in a socially responsible manner by complying with the highest ethical standards in the conduct of their business.

Basic Principles
1. Respect human rights, and do not discriminate on any basis or engage in any form of harassment.
2. Maintain a high regard for environmental considerations in conducting our business operations, and ensure that our business isconducted in an environmentally sustainable manner,and comply with treaties, laws and regulations concerning the environment.
3. Promote fair business practices and comply with trade rules, regulations, and internal corporate rules and policies.
4. Comply with the rules and regulations of international trade.
5. Protect and properly use confidential and proprietary information, protect the rights of MC and respect the rights of others.
6. Do not engage in insider trading.
7. Avoid conflicts of interest with MC; maintain a distinction between corporate and private business.
8. Record and report accounting and financial information timely and accurately.
9. Maintain proper legal and ethical standards with respect to gifts and entertainment.
10. Resolutely oppose any organization, group or individual engaged in unlawful activities and do not provide money or other types of
economic benefits to them.
11. Promptly report to or consult the superiors, the Group Compliance Officers, the relevant departments, the Secretariat for theCompliance Committee, or the outside counsel in charge of Compliance upon discovering or committing any violations of this “Codeof Conduct.”7

Environment

SocialGovernance

Mitsubishi Corporation Environmental Charter
At Mitsubishi Corporation we consider the Earth itself to be our most important stakeholder and are continually working towards therealization of a sustainable society through our business activities.
We will strive to reduce greenhouse gas emissions by continually implementing new efficiency measures and embracing newtechnologies.
We will promote the sustainable use of natural resources including energy, minerals, food stocks and water throughout our global
business operations.
We recognize the critical importance of what ecosystems can provide and are committed to protecting ecosystems and mitigating any
potential impacts on biodiversity.
We will strive to create and enhance environmental value through environmental conservation and environmental impact reduction
measures including pollution prevention.
We will continue to actively engage and work with our various stakeholders openly and transparently and disclose information on theenvironmental impacts of our business operations in an appropriate and timely manner.
We will conduct all of our activities in compliance with environmental laws while adhering to international rules and social standards.

Mitsubishi Corporation Social Charter
Mitsubishi Corporation strives to achieve sustainable societal value though our business operations by contributing towards lasting
solutions to the wide spectrum of sustainability challenges facing today’s global society.
We will work to address local societal challenges in the regions and communities in which we operate, contributing towards lastingand sustainable development through our business activities.
We will continue our wide-ranging philanthropic commitments while regularly adapting our approach in line with ever-evolving societal
needs and challenges.
We will fully respect human rights and indigenous peoples’ rights.
We will fully respect fundamental labor rights and endeavor to ensure the provision of proper working environments with consideration
for safety, health, and other aspects.
We will not engage in corruption of any kind and will take appropriate preventative measures to safeguard against such practices.
We will continue to actively engage and work with our various stakeholders openly and transparently and disclose information on thesocial impacts of our business operations in an appropriate and timely manner.

Human Rights Policy
MC has formulated a Human Rights Policy to organize and clarify its approach to human rights and to promote efforts to respect them.

8Environment

SocialGovernanceValue Creation Process
MC’s businesses are underpinned by financial and other capitals which exist both internally and externally.
We invest the capitals into businesses to address social challenges through our businesses and continuously create significant sharedvalue. The created shared value strengthens the capitals and becomes a source of further value creation. By repeating this cycle, we
aim to achieve sustainable growth.
For more details of Value Creation Process,please refer to our Integrated Report (Integrated Report / Annual Report | Mitsubishi

Corporation).

9

Environment

SocialGovernance

Sustainability Management

MC’s Sustainability Promotion
Framework
MC’s Sustainability Promotion Framework
Promoting Sustainability Through BusinessCompanywide Sustainability Framework
Disclosure (about the Sustainability Website)

Dialogue with Stakeholders (Incorporating External Perspectives)

MC’s Sustainability Promotion Framework
Sustainability Initiatives
MC's Three Corporate Principles call upon us to "strive to enrich society, both materially and spiritually, while contributing towards thepreservation on the global environment".
In recent years, expectations and demands for companies to address various societal challenges have been increasing. Guided by ourMateriality, a set of crucial societal issues that we will prioritize through our business activities, we aim to continue to grow together withsociety by continuously creating MC Shared Value, as set forth in Midterm Corporate Strategy 2024.
Furthermore, in order to increase our corporate value in line with the ever-changing demands of society, we have established aneffective promotion framework that recognizes the importance of dialogue with our stakeholders and a cycle of business strategy
execution based on this dialogue.

Cycle of Dialogue and Business Strategy Execution

Determination of policy
Execution led by each Business Group
Disclosure
Dialogue with stakeholders

10Environment

SocialGovernance

Companywide Sustainability Framework
In MC’s management framework, sustainability initiatives are overseen by the Corporate Functional Officer in charge of Sustainability.
The Sustainability Department plans and drafts related policies and measures. Following deliberations by the Sustainability & CSR
Committee, which convenes approximately twice a year, items are put forward or reported to the Executive Committee and the Board of
Directors.

Reference:

Sustainability Advisory Committee

Main Discussion Themes for the Sustainability & CSR Committee in FY2023
Climate change
Materiality
Biodiversity
Human rights / Supply chain management
Environmental conservation projects
Corporate philanthropy activities

11Environment

SocialGovernance

Promoting Sustainability Through BusinessIn order to continuously create societal and environmental value through our business activities, we have established a framework
through which both Corporate StaffDepartments as well as Business Groups proactively promote sustainability.

Cycle for Integrating Sustainability into Business Strategy
Following deliberations by the Sustainability & CSR Committee, the President and CEO as well as each Group CEO hold further
Business Strategy Committee Meetings to discuss future strategy.
In these meetings, policies for businesses that are deemed to be most affected by climate change are checked against the results ofour 1.5℃ scenario analysis.

Sustainability Promotion Framework in Each Business GroupTo build-in and promote sustainability within the Business Group initiatives further, management personnel responsible for promoting
business strategy in each Business Group have been appointed as Group Chief Sustainability Officers.
To promote collaboration for sustainability within MC, MC holds meetings with Group Sustainability Managers as needed in order toshare information and explain measures related to sustainability.

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Incorporating Sustainability into Individual Projects
Framework for putting forward proposal applications
MC confirms the significance of each business against our Materiality when screening proposals of investment and financing
proposals. Identification of environmental and social risks and opportunities (including scenario analysis and carbon pricing impact
analysis) is mandatory.
System for Screening Proposals
Within Sustainability Department, dedicated staff are appointed for each Business Group and are tasked with providing support andchecks on both environmental and social risks and opportunities for individual proposals based on the latest external trends,
stakeholder demands, and international standards. In addition, by having the General Manager of Sustainability Department serve asa member of the Investment Committee, MC has put a screening system in place to facilitate decision-making that takes into accountspecialized insight on environmental and social impacts.

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Disclosure (about the Sustainability Website)
We believe that the cycle of disclosing our sustainability initiatives in a timely and appropriate manner based on the requests of our
stakeholders, gaining their understanding, and reflecting their feedback on our initiatives is crucial. We will continue to proactively
disclose sustainability-related information based on the recognition that this cycle contributes to enhancing our corporate value over the
medium to long term.
Disclosures are made through the Sustainability Website after approval by the Corporate Functional Officer in charge of Sustainability
and after reporting to the Disclosure Committee, a subcommittee of the Executive Committee.
The website was established with the aim of centralizing ESG-related information disclosed separately through such channels as theIntegrated Report and the ESG Data Book, and of responding in a timely manner to the increasingly complex requirements of ESG
evaluation bodies and disclosure standards. The website is primarily aimed at stakeholders who have a strong interest in ESG
investment. Referring to multiple ESG reporting guidelines, it has been organized according to ESG topic for easier reference.
Disclosures can also be downloaded in a conventional report format as a PDF.
Looking ahead, we will continue striving to ensure that our ESG disclosure serves as an effective communication tool that contributes toconstructive stakeholder dialogue by improving the clarity of our reporting based on the valued feedback we receive from ourstakeholders.

Collecting Sustainability Information on a Consolidated Basis
To fully grasp qualitative and quantitative information around sustainability, MC annually conducts environmental and occupational healthand safety surveys targeting all consolidated companies. The aggregated results are reported to management and used as basic
information for planningsustainability initiatives and other measures.

Selection of target companies for thesurvey(March)Start of survey(March)Completion of survey / Reporting(June)

Disclosure(from July)

Target companies are determined by the Sustainability Department and the relevant
Section/Business Groups. In principle, the survey covers all consolidated companies,
including subsidiaries affiliates, joint operations and joint venture.

Survey items include greenhouse gas(GHG) emissions, water, waste, occupational healthand safety data, expenditures for philanthropic activities, environmental management
measures and other management policies.

The survey results are reported to the Sustainability & CSR Committee, the Executive
Committee and the Board of Directors.

A portion of the data has received independent practitioner’s assurance from Deloitte
Tohmatsu Sustainability Co., Ltd. to improve data reliability, and is disclosed on the
Sustainability Website, in our Sustainability Report and our annual response to CDP.

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SocialGovernanceDialogue with Stakeholders (Incorporating External Perspectives)
MC places great importance on its ability to identify and appropriately address the ever-changing demands of society. We engage indirect dialogue with investors including shareholders and NGOs, and hold discussions with local communities on individual projects. In
addition, MC carries out supply chain surveys as part of its supply chain management. We see constructive dialogue with all of our
stakeholders and the reflection of input from that dialogue in our policies and actions as being vital to the achievement of sustainablemedium- to long-term improvement in our corporate value.
Moreover, to better understand global environmental and societal trends, MC has established sustainability departments in Europe, theAmericas, Southeast Asia and other regions to share and coordinate information. MC is also a signatory of the UN Global Compact anda member of organizations such as the World Business Council for Sustainable Development (WBCSD). In addition, the Sustainability
Advisory Committee, which MC established in 2008, is working to incorporate external perspectives into its sustainability activities. The
committee meets twice a year to provide advice and recommendations.

Dialogue with Stakeholders in FY2022
In FY2022, MC held approximately 40 direct dialogues with shareholders on the topic of sustainability. MC also conducted 85 direct
dialogues with NGOs, including 9 in Japan, 32 in Europe and 44 in the Americas. These meetings provided valuable insights into
stakeholders’ perspectives, including expectations in relation to our strategies toward the transition to a low-carbon/decarbonizedsociety, as well as policies around individual fossil fuel projects. MC will consider the suggestions received and will strive to provide
timely and appropriate disclosure of the response measures and policies it formulates.

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Sustainability Advisory Committee
MC established the Sustainability Advisory Committee in 2008, consists of six external experts representing the perspectives of MC’s
diverse stakeholders including international agencies and the ESG investment sector. The Committee acts as an advisory body to the
Corporate Functional Officer (CSEO) and meets twice a year. MC conveys its thinking on sustainability policies to Committee members
and, with the aim of improving stakeholder engagement, receives advice and recommendations from them. Moreover, MC conducts
tours of business sites for Committee members in order to deepen their understanding of MC’s businesses. At the Sustainability
Advisory Committee meeting held inJune 2023, MC received feedback on the following topics:

Main Topics
Materiality
Initiatives toward a low-carbon/decarbonized society
Natural capital/Biodiversity
Human rights/Supply chain management
Stakeholder engagement

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Sustainability Advisory Committee Members

Eiichiro Adachi:Peter D. Pedersen:

Masaru Arai:

Senior Counselor
Director of the Institute for Societal Values in Future
Generations

Professor
Graduate School of Leadership and Innovation,
Shizenkan University

Chair
NPO Japan Sustainable Investment Forum

Miwa Yamada:

Tokutaro Nakai:

Soichi Noguchi:

Director-General

Executive Advisor

CEOInter-disciplinary Studies Center
Institute of Developing Economies
Japan External Trade Organization (IDE-JETRO)

Nippon Steel Corporation

Mirai Space Co., Ltd
Astronaut

The Japan Research Institute, Limited

On-Site Observation TourIn the fall of 2023, MC’s Sustainability Advisory Committee members visited the Tomakomai CCS Demonstration Project, inwhich we participate as an investor, and Hokkaido Airports Co., Ltd. (Hokkaido Airports), the operator of New Chitose Airport,
established by a consortium of which MC is a member.
The Tomakomai CCS Demonstration Project is the first large-scale CCS demonstration test in Japan aimed at commercial scale
CCS. Through the tour, we deepened our understanding of the effectiveness and safety of CCS and exchanged opinions on
issues to be addressed to make CCS commercially viable.
Hokkaido Airports Co., Ltd., the operating company of New Chitose Airport and other airports in Hokkaido, informed us about
the latest issues for the industry and local communities. In addition, we heard about the feasibility studies conducted by the New
Energy and Industrial Technology Development Organization (NEDO) on the production and use of hydrogen at New Chitose
Airport and surrounding areas. We were also able to exchange opinions on the future possibilities of utilizing renewable energy
with consideration for the airport as a starting point for this.

Group photo

Meeting17

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Sustainability Management

Materiality
Based on the Three Corporate Principles, which have served as MC’s core philosophy since its inception, MC identified a set of Key
Sustainability Issues in 2016 as mileposts for proactively realizing “triple-value growth” through the simultaneous generation economic,
societal and environmental value. While responding to the requests of all stakeholders, MC has worked to address various societal
issues through its business activities and has contributed towards the sustainable development of society as well as value creation.
After reaching the six-year point since the establishment of the Key Sustainability Issues, stakeholder expectations of companies
regarding issues such as climate change had grown even higher, and the issues that companies must address had evolved. Against thisbackdrop, in order to further raise our corporate value over the medium to long term, we conducted a review of our Key Sustainability
Issues from the perspective of their importance to our business activities. The revised "Materiality" was announced in Midterm Corporate
Strategy 2024 as a set of crucial societal issues that we will prioritize through our business activities, towards the strategy’s goal ofcontinuous creation of MC Shared Value.
Out of the eight redefined material issues, the six that we will pursue through our business activities are categorized as “Realizing a
Carbon Neutral Society and Striving to Enrich Society Both Materially and Spiritually”, while the two that we will pursue throughorganizational management are grouped as “Striving to Serve as a Platform for Generating Triple-Value Growth”. Guided by ourMateriality, we will continue to strengthen our efforts toward sustainable corporate growth.

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Overview of Materiality
IssuesOverview

Realizing a Carbon Neutral Society and Striving to Enrich Society Both Materially and Spiritually
Contribute to the realization of decarbonized societies by striving to reduce

Contributing togreenhouse gas (GHG) emissions, while providing products and services that

Decarbonized Societies

more

support decarbonization during the transition period.

Conserving and Effectively
Utilizing Natural Capital

Recognizing the Earth itself to be our most important stakeholder, strive tomaintain biodiversity and conserve natural capital, and work to create circularmore

economies while reducing our environmental footprint.
Promote sustainable societies and lifestyles of the future through businesses
in a diverse range of countries and industries, while fulfilling our responsibility

Promoting Stable,
Sustainable Societies andLifestyles

to provide a stable supply of resources, raw materials, products, services, etc.,
in line with the needs of countries and customers.

more

Utilizing Innovation to
Address Societal Needs

Create businesses that help to address societal needs while working to spur
major industry reforms that are supported by business innovation.

more

Addressing Regional
Issues and Growing
Together with Local
Communities

Strive to contribute to the development of economies and societies byaddressing issues facing countries and regions, while seeking to growtogether and collaborate with diverse stakeholders, regions and communities.

more

Respecting Human Rights
in Our Business
Operations

Respect the human rights of all stakeholders involved in promoting ourdiverse operations worldwide, and pursue solutions for value chain-related
issues, while considering the local conditions in each country.

more

Striving to Serve as a Platform for Generating Triple-Value Growth
Fostering Vibrant
Workplaces That Maximize
the Potential of a Diverse
Workforce

Recognizing that our human resources are the great assets of our businesses,
foster a diverse and versatile talent pool that drives efforts to generate triplevalue growth throughout our organization, and also seek to develop an
organization where diverse human resources share common values and growtogether while furthering their connections and inspiring one another to excel.

more

Realizing a Highly
Transparent and Flexible
Organization

While swiftly responding to changes in the business environment, strive torealize effective governance on a global, consolidated basis andmaintain/strengthen a sound organization that is transparent and flexible.

more

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SocialGovernanceIntegrating Materiality into Management
MC regards its Materiality as a guideline for the continuous creation of significant MC Shared Value, as we aim to create this value by
strengthening the MC Group’s collective capabilities to address societal challenges. To effectively achieve this target, each Division andBusiness Group establishes “Action Plans”, which serve as mid-term plans related to the relevant material issues for each business or
initiative, and tracks their progress through annual reviews. MC has thereby established a mechanism to confirm how our Materiality
serves our business strategies, initiatives and organizational management that lead to the creation of MCSV.
Here is a typical example of such an Action Plan.

Relevance of MC’s Materiality to the SDGs
By leveraging its collective capabilities and engaging in a variety of businesses, our company will contribute to addressing a wide rangeof societal challenges and ensure sustainable growth. We believe that promoting businesses based on our material issues will also help
to achieve the Sustainable Development Goals (SDGs) related to each key issue.
IssuesOverview

Realizing a Carbon Neutral Society and Striving to Enrich Society Both Materially and Spiritually
Contributing to
Decarbonized Societies

more

Conserving and Effectively
Utilizing Natural Capital

more

Promoting Stable,
Sustainable Societies andLifestyles

more

Utilizing Innovation to
Address Societal Needs

more

Addressing Regional
Issues and Growing
Together with Local
Communities

more

Respecting Human Rights
in Our Business
Operations

more

Striving to Serve as a Platform for Generating Triple-Value Growth
Fostering Vibrant
Workplaces That Maximize
the Potential of a Diverse
Workforce

more

Realizing a Highly
Transparent and Flexible
Organization

more

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Sustainability Management

Materiality Details
Contributing to Decarbonized Societies

Conserving and Effectively Utilizing Natural Capital

Promoting Stable, Sustainable Societies and Lifestyles
Utilizing Innovation to Address Societal Needs
Addressing Regional Issues and Growing Together with Local Communities
Respecting Human Rights in Our Business Operations
Fostering Vibrant Workplaces That Maximize the Potential of a Diverse Workforce
Realizing a Highly Transparent and Flexible Organization

Contributing to Decarbonized Societies
Contribute to the realization of decarbonized societies by striving to reduce greenhouse gas (GHG) emissions, whileproviding products and services that support decarbonization during the transition period.

Related SDGs Themes

Action Plan Regarding this Material Issue
We regard achieving a decarbonized society as one of our important corporate issues that should be challenged, and we are promoting
carbon reduction and decarbonization through our business activities with “Contributing to Decarbonized Societies" as one of ourmaterialties. By leading this transformation and "connecting" it to our own business growth, we will create MC Shared Value. In addition
to promoting our own decarbonization (Halve by FY2030 (compared to FY2020) and net zero by 2050), we will contribute to thedecarbonization of society by creating avoided emissions through EX-related investments on a scale of 1.2 trillion yen over the threeyear period of Midterm Corporate Strategy 2024.

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Doubling Renewable Energy Power Generation Capacity
MC is expanding its renewable energy business in Japan and abroad to achieve a decarbonized society. In connection with thisinitiative, MC is moving ahead with the goal of doubling its renewable energy equity generation capacity from 3.3 GW in FY2019 to 6.6
GW in FY2030.
Current generation capacity (net equity basis), including assets under construction, is 3.9 GW (as of the end of September 2023).

Major Progress

MC Signs Loan Agreement for Monsoon Cross-border Wind Project in Laos

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Implementation of Next Generation Energy Supply Chains
MC is focusing on the practical implementation of hydrogen in society and the commercialization of ammonia, an excellent means oftransporting and storing hydrogen. MC is proceeding with joint testing with our partners at each stage of the value chain, “production,”“transportation” and “usage.” We are also promoting the societal implementation of Sustainable Aviation Fuel (SAF) in the area ofaviation fuel, where electrification and hydrogenation are difficult.

Major Progresses

Mitsubishi Corporation and Amogy with SK Innovation join forces to unlock the potential of Amogy’s ammonia cracking
technology in Japan and South Korea
New Company for Green Hydrogen Business Eneco Diamond Hydrogen’’ Established in Europe
Participation of Sempra Infrastructure to the Detailed Study regarding the Introduction of e-methane to Japan Utilizing
Cameron LNG Terminal
Establishment of a “Council for utilizing Namikata Terminal as a Hub for introducing Fuel Ammonia”
RWE, LOTTE CHEMICAL Corporation and Mitsubishi Corporation enter into a Joint Study Agreement to develop a cleanammonia project in Port of Corpus Christi in Texas, USA
Joint Feasibility Study on the Commercialization of Sustainable Aviation FuelSupply of Mineral Resources to Promote an Electrified Society
Mineral resources such as copper are essential products which are used for renewable energy and electrification and are vital toachieving a decarbonized society. MC aims to expand our copper business through organic growth opportunities in existing assets,
which boast some of the world’s largest copper reserves, increasing our interest in existing assets, acquiring new assets and utilizing
new technologies to improve resource recovery.

Major Progress
New Participation in the Marimaca Copper Project in Chile

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CCUS Initiatives
MC, as a company aiming to contribute towards achieving the goals of the Paris Agreement, recognizes that CCUS will play a major rolein achieving those goals. The International Energy Agency (IEA) has stated that CCUS must be used to reduce roughly 1.5 billion tons of
CO2 emitted in 2050 in order to achieve the 1.5°C target (the remaining amount to be reduced through renewable energy and energysaving technology), and the Intergovernmental Panel on Climate Change (IPCC) has also emphasized the role that technology shouldplay. CCUS is a field that spans multiple industries, from those that are the source of CO2 emissions, to those that produce end-products
such as fuel and chemical materials. Therefore, MC recognizes CCUS as a business opportunity to demonstrate its collective
capabilities as a company that interacts with many industries. To take advantage of this business opportunity, MC will promote thecommercialization of CCUS by establishing a task force spanning multiple business groups as well as a liaison committee.

Here are our representative low-carbon and decarbonization related projects that contribute to the realization of this Action Plan.
Further details regarding MC's initiatives on climate change are available here.

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SocialGovernanceConserving and Effectively Utilizing Natural Capital
Recognizing the Earth itself to be our most important stakeholder, strive to maintain biodiversity and conserve natural
capital, and work to create circular economies while reducing our environmental footprint.

Related SDGs Themes

Action Plan Regarding this Material Issue
Every business in our company is built on the foundation of the natural capital benefits that the ecosystem provides. Therefore, we
recognize that the conservation and effective utilization of this natural capital are indispensable to achieving sustainable growth together
with society. MC is committed to realizing a circular economy by taking advantage of business opportunities while trying to diminish ournegative impact on the global environment.

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Promotion of a Circular Economy
MC considers the realization of a circular economy to be a pillar of our EX initiatives. To achieve this, it is essential to make effective useof limited resources and ensure they are able to circulate as efficiently as possible. MC is committed to the environmentally friendly
materials manufacturing business through the recycling of materials by utilizing new technologies, bio-carbon recycling, new businesses
related to product recycling, and materials and products that support a low-carbon, decarbonized society.

PET Chemical Recycling Business with Thai Shinkong
MC entered the PET chemical recycling business through an investment in Thai Shinkong Industry Corporation Ltd., which produces
PET resins for beverage bottles with a new production line having started operation in June 2023. PET is highly recyclable monomaterial with a wide range of applications, including in food and beverage containers as well as in textiles, thanks to its excellent
transparency, barrier properties, and well-established collection and recycling systems. As the transition to a circular economy
progresses worldwide, we will expand our capacity for producing PET resins, for which demand is expected to grow in line with the shift
towards mono-materials, and by introducing chemical recycling technologies through our participation in the PET chemical recycling
business with the aim of “Conserving and Effectively Utilizing Natural Capital”.

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SocialGovernancePartnership with Honda
MC and Honda Motor Co., Ltd. (Honda) have signed a memorandum of understanding to begin discussions toward the creation of new
businesses with an aim of leveraging the strengths of both companies to build sustainable business models, with a focus on expanding
EV adoption in a decarbonized society. Moving forward, the two companies will strive to increase the value offered to customers throughtheir EV and EV battery businesses. Details about the commercialization of these businesses are explained below.
１. Battery Lifetime Management BusinessThis new business aims to maximize the value of batteries installed in Honda electric light motor vehicle models, that are scheduled to
go on sale in Japan in 2024. By employing sophisticated battery-monitoring functions, the new business would manage and maximize
the value of batteries throughout their lifetime by repurposing them from powering EVs (in-vehicle use) to then using them as stationary
energy storage (stationary use).

2. Smart-charging*1 and V2G*2 Energy Management BusinessThis new business helps EV users optimize their electricity costs by offering access to smart-charging, V2G services, and green(renewable) power through advanced control technologies.

*1 Smart-charging systems automatically adjust the timing of EV charging to avoid peak load periods and optimize energy consumption.
*2 Vehicle to Grid: In a V2G system, EVs will not only be charged with electricity from the grid but will also supply electricity to the grid itself to help meet
local electricity needs.

Major Progress

Building a sustainable PET bottle supply chain

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Identifying and Responding to Nature-related Issues
Almost all MC businesses interact with the environment and depend upon the benefits ecosystems can provide. In order to ensure thefuture continuity of our business activities, MC needs to understand the extent of our environmental dependencies and impacts, analyzerisks and opportunities, minimize excessive reliance and negative impact on the natural environment, and pursue initiatives that
contribute to environmental recovery.

Trial Analysis Using the TNFD Framework
From this perspective, MC conducted a trial analysis based on the TNFD framework recommendations from FY2022 to FY2023. In the
future, we will utilize the knowledge obtained from the trial analysis in the management of individual businesses and continue to identify
and respond to nature-related issues using the TNFD framework, thereby improving the MC Group's sustainability and corporate value.
More details regarding MC’s initiatives on biodiversity are available here.

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Promoting Stable, Sustainable Societies and Lifestyles
Promote sustainable societies and lifestyles of the future through businesses in a diverse range of countries and industries,
while fulfilling our responsibility to provide a stable supply of resources, raw materials, products, services, etc., in line with
the needs of countries and customers.

Related SDGs Themes

Action Plan Regarding this Material Issue
Ensuring the stable lives of people is one of our company’s greatest mandates, and we believe it is important to fulfill this in asustainable manner through our business. While continuing to provide the goods and services necessary for maintaining the operation of
the current societal system, we will promote businesses which move society forward towards a more sustainable future.

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SocialGovernanceFulfilling Our Responsibility for Ensuring a Stable Energy Supply to Support the Transition Period
Global energy demand is expected to increase mainly due to population growth and economic development. While the switch torenewable energy is expected to progress in the power sector in the future, dramatic technological innovation is essential to supplement
renewable energy sources in terms of intermittency, location and other factors. Therefore, to meet the world’s growing energy demand
and at the same time realize a carbon-neutral society, it is essential to decarbonize fossil fuels.
MC is committed to fulfilling its responsibility to provide a stable supply of natural gas and LNG, which will support the transition periodwith its relatively low environmental impact among fossil fuels, as well as reduce GHG emissions throughout the value chain via
improvements in operational efficiency, CCUS and other methods.

Tangguh LNG Project Initiatives
Tangguh is the largest gas-producing project in Papua Barat Province of Indonesia, accounting for around 20% of the country’s gas
output. MC is participating in the project as a joint venture with bp, the project operator. Tangguh LNG Project began operations in 2009and has safely delivered more than 1,500 cargoes to global markets including Indonesia and Japan. In October 2023, the expansion of athird LNG train added 3.8 million tons per year of LNG production capacity to the existing 2 trains (production capacity: 7.6 million tons
per year), increasing the total LNG production capacity of the Tangguh LNG Project to 11.4 million tons per year.
In addition, we are planning the next phase of development including CCUS project, which is based on a Plan of Development approved
by SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities Republic of Indonesia) in 2021. Once the CCUS projectis implemented, which is subject to a final investment decision by Tangguh Partners, it will remove up to 90% of the reservoir-associatedCO2 which represents nearly half of Tangguh’s LNG emissions, making Tangguh one of the lowest GHG intensity LNG plants in theworld.

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Ensuring a Stable Supply of High-quality Metallurgical Coal
Since steel is a basic material that is difficult to replace, its demand is expected to remain strong over the long term in line with global
economic growth. In the steel industry, the ironmaking process (blast furnace method), which uses primarily iron ore as raw materials,
emits a high amount of GHG emissions. Therefore, it is expected that the use of electric furnaces, which mainly use steel scrap, and theuse of hydrogen in the ironmaking process will expand in the future. However, it will take considerable time to realize the necessary
technological innovations and switching of production facilities. Therefore, decarbonization of the blast furnace ironmaking process,which is currently the mainstream process, will be an important issue for the time being. MC will continue to contribute to thedecarbonization of the steel industry by fulfilling our responsibility to provide customers with a stable supply of high-quality metallurgicalcoal as one of raw materials for the blast furnace ironmaking process, one of MC’s major commodities, and contribute to thedecarbonization of the existing blast furnace method.

MDP Initiatives
Mitsubishi Development Pty Ltd. (MDP) which conducts exploration, development, production, and sales of mineral resources, jointly
operates its metallurgical coal business, BMA, together with its partner. BMA operates one of the world’s largest metallurgical coal
operations, with an annual production volume of approx. 60 million tons and a share of approx. 30% of seaborne trade volume. BMA isfulfilling its responsibility to provide a stable supply of high-quality metallurgical coal that contributes to the decarbonization of the blast
furnace method of steelmaking. In October 2023, MDP and BHP agreed to sell some of its coal mines and promoted further
consolidation of its high-grade/quality mines.
Also, while staying aware of changes in the business environment, MDP will strive to reduce GHG emissions from BMA’s production
processes. Furthermore, together with its metallurgical coal business partner BHP, MDP is working to support research that contributes
to reducing emissions throughout the entire metallurgical coal value chain. In October 2022, MDP entered into a collaborationagreement with ArcelorMittal, Mitsubishi Heavy Industries, Ltd. and BHP regarding the application of CO2 capture technology in the fieldof steel making and will jointly conduct demonstration tests for the application of CO2 capture technology at ArcelorMittal's steel works.

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Sustainable Food Supply
With demand for food rising in line with global population growth, and an increased interest in sustainability, the establishment of asustainable production and supply system is becoming increasingly important. MC is working to develop sustainable production,
processing and sales business model, as well as increasing products that have international fishing/farming certifications such as
MSC/ASC, and promoting transactions with suppliers that comply with our Policy for Sustainable Supply Chain Management.

Cermaq Initiatives
Cermaq is one of the major salmon (including coho) farming, processing and sales companies in the world which became a subsidiary of
MC in 2014. Cermaq produces salmon in Norway, Chile and Canada for a total production quantity of around 200 thousand metric tons
per year and supplies sustainable, safe and secure farmed salmon to consumers around the world.
Cermaq, has identified biodiversity protection as a key part of its license to operate in all the countries where it has operations. Cermaq
works actively in cooperation with local stakeholders to protect wild salmonids in all areas where they are present, removes marine litterand tracks bird and marine mammal mortalities at its sites in compliance with all laws the countries where they operate and regulationsof requirements set by the ASC standard. In its feed supplier Code of Conduct, Cermaq mandates that no fish meal or fish oil used in thefeed for its fish shall originate from IUU (Illegal, unreported, unregulated) fisheries.

Major Progress

MC and Maruha Nichiro Agree to Establish New Joint Venture in Salmon (land-based)

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SocialGovernanceUtilizing Innovation to Address Societal Needs
Create businesses that help to address societal needs while working to spur major industry reforms that are supported bybusiness innovation.

Related SDGs Themes

Action Plan Regarding this Material Issue
We recognize that innovation has great potential to enable us to solve societal and industrial issues and to considerably enrich people’s
daily lives. MC will achieve sustainable growth by dynamically transforming our current businesses, whilst approaching business
opportunities that are generated by innovation.

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Building a Cross-industry Digital Ecosystem
MC has many physically based businesses that require DX-driven solutions. By providing DX functions to these businesses, we will
optimize logistics and improve productivity, increase business value, and contribute to the development of the industry as a whole andthe realization of vibrant local communities.
By developing cross-industry DX functions that leverage our broad business knowledge and then providing them as services, MC will
help to improve the value of industries themselves. Toward this end, we aim to improve the productivity of industry and society as awhole and create sustainable value by building a “cross-industry digital ecosystem” in which industries, companies, local communities
and others can organically connect and coexist.
In FY2023, to accelerate the development and realization of further projects, MC narrowed down the focus of its DX projects from alonglist which included over 100 candidate projects.

Activity at MC Digital
MC develops business in a wide range of industries, but there are areas where further value can be added by utilizing cutting-edge IT.
MC Digital's mission is to update business models by leveraging technology, and the company will utilize the latest technology, such as
AI, to generate innovative solutions to issues in all the industries that MC conducts business in. MC Digital will also collaborate withoverseas innovation ecosystems, as well as academic and administrative institutions, while striving to develop new businesses andprovide solutions for various fields.

Major Progress

MC and ENEOS launch a Joint Venture for Last One Mile Delivery Business based at Gas Stations

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Reduction of Food Waste
Food waste in Japan has been calculated to be 5,700,000 tons (2019), and the scale of this food waste is equivalent to 1.4 times theamount of the WFP's (World Food Programme) world food aid (2020). Additionally, around 54% of Japan’s total food waste is comprisedof commercial food waste that is disposed of during the distribution and production process. This is recognized as a key issue to besolved for the food distribution industry.
MC is proceeding with initiatives to reduce food waste using digital technology, including AI. Some of MC’s subsidiaries and affiliates
have set a goal of reducing food loss by 50% by 2030 through initiatives such as improving distribution efficiency.

DX Business in Food Distribution
Specifically, MC has begun developing solutions to enable the prediction of demand and automation of ordering at food wholesalers.
Through the utilization of AI to calculate appropriate order quantities, in order to not cause shortages, while reducing the stock amount atfood wholesalers and then connecting this to actual orders, the “purchasing of the necessary amounts of necessary items” will become
possible. Therefore, MC can contribute to the reduction of food waste at food wholesalers. In the demonstration experiment, comparedto current manual ordering processes, it was possible to reduce stock volume while also reducing the probability of stock shortages. Thissolution is anticipated to display sufficient efficacy.
Going forward, by popularizing this solution that MC is currently developing throughout the entire food wholesale industry, MC willcontribute to the reduction of food loss in the food wholesale industry. MC will also aim for distribution optimization and reduction of foodwaste across the entire foodstuff distribution value chain by providing solutions for food manufacturers and food retailers.
Mitsubishi Shokuhin, which operates a core function in the food distribution business, has completed the introduction of an inventory
optimization solution that utilizes AI demand forecasting into all Lawson centers and is aiming to reduce food waste by 50% in 2030
compared to FY2016 levels.

DX Business in Food Distribution

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Solution to Wasteful, Inconsistent and Burdensome Practices by Optimizing the Entire Supply Chain throughDigital Technology
Supply chains connecting producers and consumers are made possible through effective combinations of storage and transportationbased logistics capabilities. Japan’s domestic warehousing market is central to those supply chains and worth approximately seventrillion yen. Various negative pressures including labor shortages, dependencies on specific individuals for certain jobs and leaseagreements have resulted in inflexible inventory capacities, which has in turn contributed to wasteful, inconsistent and burdensome
fulfillment practices throughout numerous industries. Other countries, such as the US and China, are facing similar challenges, whichhas prompted innovators to develop new business models such as self-driving warehouse robots and schemes that allow users to sharevacant warehouse spaces.

Gaussy’s Warehouse DX Services
Considering that the “Roboware” subscription service allows anyone, regardless of their background or skills, to use robots to easily
manage their warehouse facilities, it presents a viable solution to the labor-shortage and overreliance problems mentioned above.
“WareX” is a similarly straightforward system that anyone can use to share available warehouse space, thus addressing the problems oflimited or excess capacities.
Gaussy will offer customers both of these services, the former (Roboware) of which employs six types of warehouse robots and has
already been rolled out in more than 25 facilities across Japan, and the latter (WareX) of which has more than 1,400 facilities (as ofDecember 2023) registered on its nationwide system. Large, medium and small enterprises alike have been taking advantage of“WareX,” as it provides them with an efficient way to lease vacant warehouse spaces on a pay-as-you-go basis.
Driven by its vision to create new opportunities in logistics, Gaussy is committed to developing flexible mechanisms that will adapt to
evolving warehousing needs and cargo volumes. All of its partners look forward to offering fulfillment customers with new andunprecedented options for their businesses.

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SocialGovernanceContributing to the Realization of a Carbon-Neutral Society through Technological Innovation
Decarbonization is an urgent issue that requires fast-paced initiatives on a global scale. To this end, MC believes it is important not only
to develop completely new decarbonization technologies, but also to innovate at the scale-up stage, moving technologies that havealready completed R&D to implementation as quickly as possible.
In order to realize a carbon neutral society, MC is already promoting the development of EX-related businesses such as next-generationenergy. In order to complement and further accelerate these initiatives, MC will work to scale-up innovative decarbonization technologies
through public-private partnerships.

Participation in Breakthrough Energy Catalyst Program to Accelerate the Application of Decarbonization Technologies in Society
MC is the first company in Asia to participate in Breakthrough Energy Catalyst (BEC), a program dedicated to accelerating theapplication of innovative decarbonization technologies in society.
BEC is a brand new model that was launched as part of Breakthrough Energy, a network of initiatives founded in 2015 by global
philanthropist Bill Gates. The BEC program provides investment and other support for individual projects based on new decarbonization
technologies for which research and development have already been completed.
MC is active in the renewable energy field and has begun to explore the introduction of next-generation energy sources, such ashydrogen, ammonia, and methanation. We recognize the need to use new technologies and innovations to meet the global challenge oftransitioning to a carbon-neutral society.
In addition, BEC acts as a ‘Catalyst’, organically linking funds from private sector partners and philanthropic organizations, product offtake support for consumers of green products, and assistance from government agencies. Through these activities, BEC is establishinga framework to support the scaling up of projects based on innovative decarbonization technologies that are nearing commercialization,
contributing to the realization of a carbon-neutral society.
The current five focus areas for BEC are (1) clean hydrogen production (and related infrastructure), (2) long-duration energy storage(LDES), (3) sustainable aviation fuels (SAF), (4) direct air capture (DAC), and (5) green manufacturing industries (steel, cement,
plastics, etc.). In the future, BEC may expand its focus to include other technologies that are also important for decarbonization. MC also
considers these technologies vital to its own EX Strategy and its Roadmap to a Carbon-Neutral Society.
Our participation in BEC will allow us to support the adoption of innovative technologies that will accelerate the transition to a carbonneutral world and contribute to further reductions in environmental impact without compromising people’s well-being.
MC will contribute to the transition to a carbon-neutral society by making full use of the expertise and networks that it has cultivated inJapan and throughout Asia to collaborate with other BEC partner companies who represent a broad range of industries, including steel,aviation, and finance.

Major Progresses
Launch of Marunouchi Climate Tech Growth Fund L.P.

MC invests in KyotoFusioneering, a spin-off from Kyoto University
NextGen – a South Pole/Mitsubishi Corporation joint venture – establishes world’s largest diversified portfolio of permanent
carbon dioxide removals to scale the market
Toyobo and MC Launch Operations at New Joint Venture Company – ‘’Toyobo MC Corporation’’ to Specialize in Functional
Materials-

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SocialGovernance

Addressing Regional Issues and Growing Together with
Local Communities
Strive to contribute to the development of economies and societies by addressing issues facing countries and regions,while seeking to grow together and collaborate with diverse stakeholders, regions and communities.

Related SDGs Themes

Action Plan Regarding this Material Issue
We believe that MC can create significant value by leveraging our company’s unique collective capabilities and connections with various
industries, and by interconnecting with diverse stakeholders and local communities. We will pursue sustainable growth together withlocal communities by resolving issues that communities are facing and also by approaching peripheral business opportunities.

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SocialGovernance

Creating self-sustained decentralized communities
In May 2022, MC announced its new management plan, entitled “Midterm Corporate Strategy 2024 – Creating MC Shared Value.” Theplan details MC’s growth strategy to promote regional revitalization through utilizing integrated EX and DX initiatives. MC has embarked
on initiatives to promote specific measures for regional revitalization throughout the company, including the creation of new carbonneutral industries, supporting smooth transitions to decarbonized societies and developing vibrant communities.

Establishment of New Branches in Akita and Choshi
In November 2022, MC opened new domestic branches in Japan for the first time in 35 years in both Akita and Choshi. MC wasappointed as one of the operators of Japan’s first, general-sea-area fixed-foundation wind farms which are being developed off thecoasts. With the themes of utilizing local energy resources such as renewable energy, creating new carbon neutral industries, andcreating vibrant communities by addressing regional issues, MC aims to create a new future through the fostering of new industries andregional revitalization, such as by addressing challenges facing society and industry through collaboration with various stakeholders
including partners and local government authorities, while taking advantage of our unique, wide-ranging industrial network. The Akita
and Choshi regions are a precedent for this, and MC will continue to work closely with our electric power subsidiaries and offshore windproject companies that will develop the offshore wind power business for more than 30 years to come, with the aim of developing not
only offshore wind power, but also of realizing MC’s goal of promoting regional revitalization through the integrated EX and DX initiatives.

Akita Branch

Choshi Branch

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SocialGovernanceRegional Development Agreement with Local Governments
MC signed partnership agreements with the five cities by 2023:Yatsushiro in Kumamoto Prefecture, Kurashiki in Okayama Prefecture,
Nasushiobara in Tochigi Prefecture, Choshi in Chiba prefecture and Chitose in Hokkaido prefecture, to resolve regional issues andpromote initiatives for regional development and revitalization. Specific cooperation items cover a wide range of areas, including therevitalization of local and regional communities using digital technology and improvement of civic services such as energy, mobility, andhealth.
As a first step with the agreement with Nasushiobara City, we have started two services.
① Community portal apps: This app. digitally consolidates communication from all local communities (such as schools andneighborhood associations) and public announcements from local governments in order to provide residents with essential daily life
information. Currently, we are in the process of building a public relations creation system using generative AI to streamline theinformation distribution tasks of the local government and to ensure that residents can receive the information they desire.
② Regional Data Platform: To provide a data platform for Nasushiobara City, ensuring secure data integration with high extensibility.
Moreover, the IDs of the services are integrated into a shared ID, which is connected with My Number, a digital ID assigned to eachresident by the Japanese government.

Major Progresses

Choshi City and MC Sign Regional Development Agreement
Agreement Signed to Promote Urban Development towards Carbon Neutral City of Chitose
Yatsushiro City, Kyushu Electric Power Co., Inc., NTT Anode Energy Co., Ltd., and Mitsubishi Corporation Conclude aPartnership Agreement to Expedite Carbon Neutrality in Yatsushiro City

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SocialGovernance

Development and Management of Smart Cities
The explosive expansion of the middle class and rapid urbanization, particularly in emerging economies, has increased the need fordevelopment and management of social infrastructure projects that take into account social and environmental values.
In the midst of such changes in the external environment, MC aims to contribute to the economic growth of the countries in which it
operates, while also helping to reduce environmental impacts, by promoting the development and management of large-scale, highvalue-added urban development projects to sustainably create high-quality living, working, medical, educational, logistics, andtransportation environments.

Urban Management and Urban Development Projects to Enhance Urban Value in Indonesia
MC is exploring an urban management project and promoting a large-scale urban development project in collaboration with Sinar Mas
Land (SML), one of the largest real estate developers in Indonesia.
MC signed an MOU with SML in March 2020, initiating a joint execution of urban management as well as the implementation of smart
and digital solutions (urban services) in BSD City (6,000 hectares). This partnership between MC and SML aims to implement urban
services throughout BSD City, including an AI/IoT data platform, city portal, mobility, and energy-related content, in collaboration withvarious MC Group companies and partners across different business sectors.
After the signing of the MOU, we initiated the first trial operation of autonomous electric vehicles (AEVs) in Indonesia, followed by thesharing service experiment designed to promote a shift in behaviour from “owning” to ”renting”. Furthermore, we have recently embarked
on another experiment involving a mobile convenience store operated by electric vehicle. Through these initiatives, we have been
actively exploring different city service experiments and implementations aimed at addressing social issues while promoting city
sustainability.
At the same time, in the same city, MC is working with SML on a large-scale developmentThis project is the first transit-oriented
development＊Urban development based on public transit, aiming for a society that is not dependent on automobiles.＊ in Indonesia,
and it will develop a smart city that combines urban functions such as residential units, commercial properties, schools, hospitals, parks,
and public transportation nodes on a new development site of over 100 hectares.
By encouraging a modal shift towards expanding and promoting the use of public transport, we aim to contribute not only to theeconomy, but also to society and the environment by helping to address issues such as traffic congestion and air pollution. Another goal
is to create convenient, safe, and secure urban developments through the implementation of urban services such as AI/IoT data
platform, city portal, mobility, and energy-related content.

Project image

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SocialMajor Progresses

PoC Launched in Portland, Oregon to Develop Smart Multifamily Apartment
Pilot Project for Lifelog-based Health Services in Muraoka-Fukasawa District

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SocialGovernance

Solutions for Regional Transportation Challenges through On-demand Mobility Services
In regional communities facing depopulation, there is a growing need for on-demand transportation services that allow for the
streamlining of transportation, and more services utilizing digital technology. MC will work to address societal challenges through ourmobility services business and aim for further expansion by further strengthening our business foundation, which includes functions wehave developed over many years and our ability to build community-based networks.

Trials of “KnowRoute” in Shiojiri City
MC is part of a consortium that has commenced trial operations of a mobility-as-a-service (MaaS) project in Shiojiri City, Nagano
Prefecture. The “Shiojiri Project” is being undertaken as part of an initiative launched by Japan’s Ministry of Economy, Trade andIndustry (METI) to promote new, regional MaaS applications. MC’s partners in the consortium include Next Mobility Co., Ltd., a joint
venture between MC and Nishi-Nippon Railroad Co., Ltd., and the municipal government of Shiojiri City.
Based on the successful results of the demonstration project, we are now shifting to full-scale operation and expanding certain service
areas. Other than rail, the only means of public transportation in Shiojiri City is a community bus service, but it has been hampered byproblems such as a lack of drivers, and a limited fleet. The city is also aging. About 28% of its roughly 67,000 residents are at least 65
years old, which has led to an even greater need for public transportation. To address both of these needs, the consortium that MC isparticipating in will work to solve the problems facing public transportation in Shiojiri City through promotion of the “Shirojiri Project”.

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SocialGovernance

Respecting Human Rights in Our Business Operations
Respect the human rights of all stakeholders involved in promoting our diverse operations worldwide, and pursue solutions
for value chain-related issues, while considering the local conditions in each country.

Related SDGs Themes

Action Plan Regarding this Material Issue
It is impossible to conduct sustainable business or to increase corporate value without respecting the human rights of the people we
involve in our business activities. MC will not only respect human rights when promoting its businesses but will also pursue business
opportunities which create added value by tackling human rights issues.

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SocialGovernance

Implementing Human Rights Due Diligence for Business Activities
MC’s current activities have expanded far beyond its traditional trading business to include project development, production andmanufacturing operations, working in collaboration with our trusted partners around the globe. Furthermore, since MC handles a wide
range of products and services around the world, we believe in the importance of identifying and analyzing the negative impacts of ourbusiness on human rights and the environment in order to ensure that such impacts are avoided/mitigated. MC is conducting humanrights and environmental due diligence with this in mind.
Further details of MC's initiatives on human rights are available here.

Procurement based on MC’s Policy for Sustainable Supply Chain Management
In order to monitor suppliers’ compliance with our Policy for Sustainable Supply Chain Management, we have identified products withhigh environmental and social risk in 2016 and 2020 with advice from consultants and external advisors. MC conducts annual surveys ofsuppliers (via our Sustainable Supply Chain Survey), with a focus on those industries where social risks including human rights andlabor conditions, as well as environmental risks, are considered higher. In addition, MC has formulated individual procurement guidelines
for each product as needed. Most recently, in January 2024, we formulated our Soybean Procurement Guidelines.

Mitsubishi Corporation Fashion Co., Ltd., a wholly-owned subsidiary of MC, is working to enhance sustainable procurement of apparelproducts, strengthen communication and dialogue with suppliers through our Sustainable Supply Chain Survey, and promote thedevelopment of a sustainable supply chain.

Ensuring the Safety of Employees
The MC Group has a global workforce of approximately 86,000 professionals, who we recognize as some of our most important
stakeholders. In order for the MC Group to continue generating corporate value sustainably, it is necessary for diverse human resources,
regardless of gender, nationality, etc. to be able to fully demonstrate their respective capabilities in response to the further diversificationand globalization of business. We believe that the fundamental premise for this is the development of a working environment based on
respect for human rights, starting with ensuring workplace safety.
For further details of initiatives and progress, please also visit here.

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SocialGovernanceFostering Vibrant Workplaces That Maximize the Potential ofa Diverse Workforce
Recognizing that our human resources are the great assets of our businesses, foster a diverse and versatile talent poolthat drives efforts to generate triple-value growth throughout our organization, and also seek to develop an organization
where diverse human resources share common values and grow together while furthering their connections and inspiring
one another to excel.

Related SDGs Themes

Action Plan Regarding this Material Issue
Our human capital is most powerful and vital asset and the source of all value creation at MC. To continue creating MC Shared Value(MCSV) in a rapidly changing business environment, we recognize that the most important factor is remaining a dynamic, spirited andvibrant organization in which human capital, which is the source of all value creation, can work to overcome challenges with a sense of
motivation and pride and to bring out our collective capabilities while interconnecting with members of our diverse and versatile talentpool. Based on this belief, we have been developing initiatives that are designed to maximize the value of human capital.

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Strengthen Engagement
Employee Engagement — KPIs Relating to the Success of a Diverse Workforce
We see employee engagement as the most important factor in our efforts to develop a dynamic spirited, and vibrant talent pool andorganization through HR policies linked to our management strategies. We have therefore increased the frequency of Employee
Awareness Surveys from once every three years to annually and also established quantitative KPIs. Employees receive feedback about
the survey results so that they can use this information to make improvements in their own organizations. At the management level, we
analyze and discuss these survey results, identify issues that need to be addressed on a companywide level, and reflect our findings inpolicies.

Initiatives to Strengthen Engagement
We are working to foster a corporate culture that capitalizes on diversity by encouraging communication across organizational,
occupational, and generational lines. We are also creating an environment in which people in our diverse and versatile talent pool canrealize their full potential and develop their own careers. Through these efforts, we aim to enhance employee engagement andcontribute to MC’s sustainable growth.

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DE&I Initiatives
MC is working to maintain and increase diversity by appointing employees based on their abilities and performance, ensuring to assign
the right person in the right position, regardless of age, gender or nationality or any other irrelevant factors. In particular, in order toincrease the number of women in managerial positions (target of 15% or more by FY2025) and to accelerate their appointment to key
positions, we are promoting career support tailored to women such as a mentorship programs for women in managerial positions. MC is
also focusing on initiatives aimed at 100% utilization of childcare-related systems by men. Establish a company-wide working groupdirectly under MC’s President and promote the development of an environment and organizations where all employees can flourish by
fully demonstrating their individual strengths. Proceed to study/implement initiatives that empower employees to succeed byrespecting/accepting their individuality and leveraging our versatility.

Percentage of Women in Management-Level Positions (Non-Consolidated)*1 The number of employees who began taking the type of leave during each fiscal year.
*2 Percentage of men working at the Head Office or MC domestic offices as of the end of the fiscal year
whose spouse gave birth in the relevant fiscal year and who used childcare-related systems including childcare leave and spousal childbirth leave.

Occupational Health and Safety Initiatives
In creating safe working environments for employees and contractors (safety, health, labor management, risk management, etc.), MC
aims to build and operate management systems that go beyond simply meeting the legal requirements in the countries where we
operate to provide support that is more substantial. Within the MC Group, there are companies with OSH management systems thathave acquired ISO45000 and OHSAS18001, the international standards for occupational health and safety management systems.
Furthermore, in order to promote OSH management throughout the entire MC Group, we will are working to develop an organizationalframework, clarify responsibilities and continuously monitor progress in order to refine, maintain and further improve our activities.
In addition, MC aims to steadily reduce the number of workplace accidents and maintain and promote health through continuous
monitoring of KPIs such as reducing the frequency rate of workplace accidents compared to the previous year and ensuring a 100%
health check-up rate for domestic (Japan-based) employees.
Lost Time Injuries Frequency Rate*(This data includes Subsidiaries and joint operations, any other group companies like Affiliates, which contains production business sites)* Lost time injury frequency rate is the number of lost time injuries per 1,000,000 actual working hours and refers to the frequency of workplace accidents.
Lost time injuries refers to occupational accidents that involve one or more days of lost work. Lost time injury frequency rate is employed in MC's KPIs.

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Strategic Development through Diverse Experiences
MC’s Basic Policy on HR Development
The individuals that make up our diverse and versatile talent pool consistently use their foresight, their aspirations, and their ability toanticipate future needs to tackle the challenge of finding solutions to societal challenges. We believe that this talent pool is our greatest
asset and the very source of value creation at MC.

We continue to produce human resources with a management mindset and a commitment to increasing the value of the business byproviding employees with opportunities to accumulate a variety of experience in stages through both on-the-job training (OJT) and offthe-job training (Off-JT) according to their career stage.
Specifically, we ensure that employees can steadily gain experience according to their career stage and gain the qualities that they willneed to support the future success of MC, including leadership development and global experience. We also take steps to strengthen
adaptability to changes in the business environment, including reskilling.

Matching Talent to Business Strategies through Talent Visualization
Contributing to Value Enhancement through Business Management Backed by High Aspirations
Approximately 700 people with a wide-range of experiences made possible by MC hold key positions and perform vital roles* on aconsolidated basis. Through those roles, which include business management activities in various regions and at sites and Group
Companies in Japan and overseas, these people contribute to the realization of management strategies, such as the Value-Added
Cyclical Growth Model and the integration of EX and DX initiatives. We have prioritized the visualization of these extremely importantand challenging duties and the talent needed to perform them as the basis for a matching process designed to promote the placement of
the right people to the right positions.
* Including Officers, Division COOs and General Managers of MC, heads of business sites in Japan and overseas, as well as management executives of
MC Group companies for which our employees are responsible.

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SocialGovernance

Optimizing Human Resource Placement through Talent Visualization
We have equipped an HR subsidiary with the capacity to visualize the talent required for key positions and created a team of seven fulltime assessors with backgrounds at MC to drive the visualization process. These assessors carry out individual interviews and provide
interviewees with personalized feedback and dialogue based on various data, such as aptitude test results. To date, approximately 350
interviews have been completed. We will continue to pursue this process with the aim of matching people with tasks based on theirabilities and motivation, regardless of age or gender. The resulting data resources will also be analyzed and used to develop the nextgeneration of leaders as well.

Disclosure of HR Data
MC discloses data including regarding diversity and human resource development.
Initiatives and data regarding diversity management are available [here].

Initiatives and data regarding human resource development are available [here].
Initiatives and data regarding wellbeing (occupational health and safety, health and productivity management) are available [here].

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SocialGovernanceRealizing a Highly Transparent and Flexible Organization
While swiftly responding to changes in the business environment, strive to realize effective governance on a global,
consolidated basis and maintain/strengthen a sound organization that is transparent and flexible.

Related SDGs Themes

Action Plan Regarding this Material Issue
In this era of rapid transformation, it is essential to have the mobility to promptly adapt to the changes in the world while having a broad
perspective in order to realize sustainable growth. In addition, we recognize strengthening corporate governance on an ongoing basis as
an important management issue, as it is the foundation for ensuring sound, transparent and efficient management, all of which areintegral for sustainable growth. From this perspective, our chief initiatives are as follows.

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SocialGovernance

Incorporating Global Intelligence into Management
As MC engages in a global network of business operations across all regions and industries, MC has accumulated intangible assets inthe form of intelligence and industry expertise. Through the efficient and effective division of functions among our Head Office, global
offices and subsidiaries, as well as group companies, we are constantly collaborating to enhance our ability to respond to change andgenerate the next source of significant growth.

Establishment of the Global Intelligence (GI) CommitteThrough our global network developed over many years, MC possesses multifaceted intelligence and know-how in macroeconomics,
industry and geopolitics. In order to connect this diverse intelligence and further strengthen our ability to respond to changes in theexternal environment, MC has newly established the Global Intelligence (GI) Committee in 2022. By incorporating the analysis of the GI
Committee into companywide strategies, we will strengthen the driving force of our Business Groups and collaboration across allindustries.

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SocialGovernanceFlexible Organizational Restructuring
MC has always been flexible in adapting its businesses and systems to match the changing times. The need for such flexibility is greaterthan ever in these turbulent times, requiring companies to be even more agile. We will continue to flexibly reshape our organizational
structure and human resources in order to respond rapidly to changes in the business environment and management strategies, and tocreate shared value.

Reorganizations to enable the creation of MC Shared Value on a larger scale
MC has announced “Midterm Corporate Strategy” in May 2022. Under Midterm Corporate Strategy 2024, MC has set the goal of
creating MC Shared Value (MCSV). More specifically, this refers to the continuous creation of significant shared value by elevating the
MC Group’s collective capabilities in order to address societal challenges. To this end, we are promoting a number of growth strategies,
namely our Energy Transformation (EX) Strategy, Digital Transformation (DX) Strategy and Creating a New Future (Fostering New
Industries/Regional Revitalization). In this way, we are strengthening the capabilities of each Business Group and working to develop
cross-industry businesses that transcend the boundaries of business domains.
As a result of these efforts, MC has come to the following conclusions.
MC is seeing tangible progress resulting from collaboration among our 10 Business Groups as well as the Industry Digital
Transformation Group and Next Generation Energy Business Group. MC is gradually seeing developments emerge in the form of
new industry value chains, growth stories and new business combinations. In order to accelerate businesses capitalizing on these
fresh “connections,” MC will look to augment our internal organizations based on “new integration” of businesses that are well
positioned to execute our strategies more powerfully than before.
The Next-Generation Energy Business Group and Industry Digital Transformation have been working with our Business Groups andserving as drivers of our EX and DX Strategies. Consequently, MC is gaining a clearer vision of each Business Group's businessstrategies going forward and themes to focus on in the future.
Considering the circumstances, MC has announced to modify organizational framework in December 2023 to enable the creation of
MCSV on a larger scale by restructuring our organizations to support optimal progress in line with these business strategies and themes.
Reorganizations will also be implemented to bolster the functions of the Corporate Staff Section and MC’s regional offices around theworld.
Please see “Mitsubishi Corporation Announces Reorganizations for FY2024” for more details.
MC will continue to modify its organizational structure in order to adapt appropriately to the ever-changing external environment.

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SocialGovernanceTransparent and Effective Operation of the Board of Directors
The Board of Directors is responsible for making decisions concerning important management issues and overseeing businessexecution. In-house Directors utilize their rich experience of working within MC, and Independent Directors utilize their practical,
objective, and professional perspectives to ensure appropriate decision-making and management oversight.

Initiatives to Enhance the Effectiveness of the Board of Directors
In recent years, MC has reviewed the rules and operations of the Board of Directors and is continuously working to improve the content
of its deliberations so that the Board of Directors can fulfill its role and expectation to indicate the broad direction of business strategies
and monitor implementation. In an effort to enhance the effectiveness of the Board, prior to each meeting of the Board of Directors,
briefing sessions are held for Independent Directors and Independent Audit & Supervisory Board Members to carefully explain thestrategic positioning and key points of each project, which helps them deepen their understanding of the agenda items to be discussed.
In addition to the above, dialogue opportunities and small group meetings for Independent Directors and Independent Audit &Supervisory Board Members are routinely organized, including with the General Managers in the Corporate Staff Section, BusinessGroup CEOs and Business Division COOs, Executive Vice Presidents, as well as opportunities for dialogue with mid-level and younger
employees. Through such efforts, MC aims to strengthen the connections between the Independent Members of the Board and its
employees, ensuring the effectiveness of the Board of Directors.
MC has established the Governance, Nomination and Compensation Committee as an advisory body to the Board of Directors, which
actively engages and deliberates on matters related to governance, nomination and compensation. The majority of the committee
members are Independent Members with various expertise and experience, thereby ensuring objectivity and transparency. The
Chairman of the Board chairs the committee and leads deliberations in an impartial manner, taking into account the realities of theexecutive side, allowing for a more thorough deliberation.
The content of the deliberations includes, in terms of governance, various issues such as confirmation of the roles and functions of theBoard of Directors and Directors (both in-house and independent), and the Appointment Policy. In terms of nomination, requirements for
the President and CEO are deliberated on an ongoing basis to ensure that a careful selection process for the position is implemented.
During the Successor Selection Process, careful deliberation is carried out by the Governance, Nomination & Compensation Committee,
and after several exchanges of opinions with Independent Directors and Independent Audit & Supervisory Board Members outside of theCommittee, the President and CEO are selected.
With respect to compensation, appropriate remuneration packages for Directors and Audit & Supervisory Board Members aredeliberated on an ongoing basis. Most recently, in June 2023, following deliberations by the Committee, new sustainability factors wereadded as performance-linked indicators to the KPIs used to calculate performance-linked bonus (medium to long term). Following thischange of remuneration, the subcommittee of the Governance, Nomination and Compensation Committee will comprehensively
evaluate initiatives related to maximizing the Value of Human Capital and Contributing to Decarbonized Societies.
More details about MC’s corporate governance are available here.

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SocialGovernance

Sustainability Management

Participation in Initiatives
Support for the UN Global Compact
MC became a signatory to the UN Global Compact (UNGC) in 2010, and has engaged at the Participant level as of the year ended
March 2019. The UNGC has laid out a set of universal principles for signatories to observe, organized into the four fields of humanrights, labor standards, environment and anti-corruption. MC has declared its support for the principles, and is promoting initiatives ineach field in the spirit of the Three Corporate Principles. Furthermore, MC is an executive member of the Global Compact Network
Japan, which was launched as a local network in Japan in 2003. We actively participate as part of our stakeholder engagement activities
aimed at understanding the external environment and fostering collaboration with other companies.

The Ten Principles of the United Nations Global Compact
Principle 1

Human rights
Principle 2
Principle 3

Businesses should support and respect the protection of internationally proclaimed humanrights; andmake sure that they are not complicit in human rights abuses.

Principle 4
Principle 5
Principle 6

Businesses should uphold the freedom of association and the effective recognition of theright to collective bargaining;
the elimination of all forms of forced and compulsory labor;
the effective abolition of child labor; andthe elimination of discrimination in respect of employment and occupation.

Environment

Principle 7
Principle 8
Principle 9

Businesses should support a precautionary approach to environmental challenges;
undertake initiatives to promote greater environmental responsibility; andencourage the development and diffusion of environmentally friendly technologies.

Anticorruption

Principle 10

Businesses should work against corruption in all its forms, including extortion and bribery.

Labor

WBCSD
MC has been a member of the World Business Council for Sustainable Development (WBCSD)* since
the organization’s founding in 1995. Through its participation in a wide variety of WBCSD initiatives, MCshares information and best practice with other leading companies and works to apply those learnings
to its business practices.
* The World Business Council for Sustainable Development (WBCSD) is an international organization working topromote sustainable development. It has approximately 200 member companies representing a broad range ofindustries from more than 30 countries.

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Task Force on Climate-related Financial Disclosures (TCFD)
The TCFD was launched by the Financial Stability Board with the aim of enabling financial
markets to properly assess climate-related risks and opportunities, creating a framework
for the voluntary disclosure of information that companies should disclose to the market.
MC recognizes the importance of climate-related disclosures and supports therecommendations made by the TCFD. MC continues to strive to expand its disclosures inline with these recommendations.
Please click here for details on MC’s disclosures in line with the TCFD.

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Environment
Environment
Climate Change

Environmental Management

59

114

Water Resources

121

Prevention of Pollution

142

Biodiversity

Eﬃcient Use of Resources
Environmental Data

129
149

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Environment

Climate Change
Our Approach

New Activities Based on the Roadmap to a Carbon Neutral Society and Midterm
Corporate Strategy 2024 - Creating MC Shared Value

1.5°C Scenario Analysis
Physical Risks

Results of the 1.5°C Scenario Analysis and Relevant Implications
Key GHG Metrics and Disclosure Highlights

Other Data and Report

Our Approach
Introduction and Mission
The effects of climate change are becoming increasingly severe, with progressively profound impacts on the natural environment, oursocieties, our business activities, and our everyday lives.
Against this backdrop, there is a growing swell of action across the globe with a collective mission to lower the temperature rise bydecarbonising our planet. In 2015, at COP21, 196 parties adopted the landmark Paris Agreement, the goal of which is to limit global
warming to well below 2 degrees Celsius, and preferably 1.5 degrees Celsius, by the end of the century. To achieve this ambitious
temperature goal, a significant transformation of the current energy supply-demand structure is needed, and governments, institutions
and corporations now need to invest heavily in climate change adaptation activities if we are to carve a path to a carbon neutral world by
mid-century.
The Paris Agreement has heightened expectations not only for countries and governments to fulfill key roles in mitigating climatechange, but also for the private sector. Companies are expected to implement measures to achieve a decarbonised society through theirbusiness activities, and there are growing calls for companies to disclose climate change-related information in line with initiatives suchas the Task Force on Climate-related Financial Disclosures (TCFD)*1, and the disclosure framework being developed by theInternational Sustainability Standards Board (ISSB)*2 of the IFRS. As a result, opportunities for dialogue on climate change between
companies and investors are expanding - including through the institutional investor initiative, Climate Action 100+, and the TCFD
Consortium (launched in Japan in 2019). The purpose of these initiatives is to encourage the disclosure of information to allow investors
and other stakeholders to properly monitor and evaluate the climate-related risks and opportunities of companies.
Since its inception in the 1950s, Mitsubishi Corporation (MC) has held the”Three Corporate Principles ”as its core philosophy. These

guiding principles inspire us to conduct fair and sound business activities at all times. MC adopted the Environmental Charter and Social
Charter in accordance with the Three Corporate Principles, and we commit to increase our corporate value as well as to contribute to thesustainable development of society through the simultaneous generation of economic, social, and environmental value, as a globally
integrated business enterprise.
At MC, we believe that while climate change poses significant business risks, it also presents us with new business opportunities forinnovation, disruption and growth. Accordingly, MC has set “Contributing to Decarbonized Societies” as one of its material issues as we
strive to achieve sustainable growth.
In shifting to a decarbonized society, it is necessary to formulate specific policies that take into account the actual conditions (energy andpower mix, geographical conditions and constraints, stage of economic development, population, etc.) that differ from country to country
and region to region, and to steadily implement them one by one. Through our global network of offices, subsidiaries and around 1,700
group companies, we work with a wide range of stakeholders around the world each day in developing our business.

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SocialGovernance*1 The Task Force on Climate-related Financial Disclosures (TCFD) set up by the Financial Stability Board. In June 2017, the TCFD announced its
recommendations on climate-related financial disclosures in order for investors to be able to make appropriate investment decisions. MC has decrared
support for the TCFD and its recommendations in 2018. And the General Manager of MC’s Sustainability Department served as a TCFD member from2018 to 2021 and as a planning committee member of the TCFD consortium thereafter. MC is supporting the TCFD’s activities and helping its
recommendations to take root throughout the business community.
*2 The International Sustainability Standards Board (ISSB) set up by the IFRS Foundation Trustees. ISSB is an independent, private-sector body thatdevelops and approves IFRS Sustainability Disclosure Standards.

Creating MC Shared Value
In our Midterm Corporate Strategy 2024

MC outlines our approach to the continuous creation of significant shared value by

elevating the MC Group’s collective capabilities in order to address societal challenges, while at the same time delivering on ambitious
targets for growth.
MC views sustainability and climate initiatives as vehicles through which to create societal and environmental value through all of ourbusinesses, and we believe in the importance of demonstrating how they contribute to the broader growth strategy of our business.
Figure 1 Outline of Midterm Corporate Strategy 2024

Our Energy Transformation (EX) Strategy, one of the growth strategies set forth in Midterm Corporate Strategy 2024, demonstrates how
we will contribute to the realization of a decarbonized society through our business activities. Since EX-related businesses take time todevelop, it is important to take the initiative by looking five to ten years into the future. Therefore, by accelerating and focusing our efforts
on EX-related investments, we will strategically reinforce our business portfolio to ensure that it is future-fit for a carbon neutral society.
To this end, we will make EX-related investments of 1.2 trillion yen over the three-year period of Midterm Corporate Strategy 2024 aswell as expanding the ratio of our EX-related business portfolio from 30% to around 40% (end of FY2021~2024) on the path to 50% in
the future. Specifically, as an EX service, we aim to promote the decarbonization of the entire energy sector by connecting seeds(solutions) with needs related to EX Resources, Materials and Products and by becoming a decarbonization solutions provider byworking closely with industry, consumers and regions to address emission reduction needs.
We have decided to newly disclose the effect of greenhouse gas reduction generated through MC Shared Value as our avoided
emissions. This will be utilized as a quantitative indicator to measure the degree of contribution our company is making to GHG
emissions reductions as well as the extent to which we are able to capture business opportunities in the transition to a decarbonizedsociety.

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Figure 2 EX Strategy from Midterm Corporate Strategy 2024

Avoided emissions are a quantitative indicator of the progress toward our EX strategy of transitioning to a decarbonized society throughour business. They indicate the degree of contribution our company is making to GHG emissions reductions as well as the extent towhich we are able to capture business opportunities in the transition to a decarbonized society. While continuing to foster relationships
with our partners, customers and other stakeholders, based on our goal of addressing societal challenges and creating MCSV throughour business, we will continue to vigorously promote our EX strategy, co-create businesses that generate avoided emissions, andcontribute to the realization of a carbon-neutral society.
Please refer to the section below for specific examples.

Partnerships with Stakeholders
MC recognizes the necessity for close collaboration and co-creation with various stakeholders in order to effectively respond to climatechange and achieve a decarbonized society. To that end, we will actively engage wide range of stakeholders – including partnercompanies, governments, local municipalities, investors, NGOs, and industry associations – to create MC Shared Value by elevating
and driving the transition to a carbon neutral society and creating new industries to address challenges facing society and industry on
the themes of (1) utilizing renewable energy and other local energy resources, (2) creating new “Carbon Neutral (CN)” industries, and (3)developing vibrant communities by helping to resolve regional issues. Below are some specific examples of how we engage with andbuild partnerships with external stakeholders.

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SocialGovernanceCollaboration with Partner Companies
When it comes to addressing some of the key challenges we face in carving a path to a carbon neutral society and decarbonising ourportfolio, MC collaborates with a variety of partner companies that share this ambition. The specific areas of collaboration can be divided
into the below six categories.
Renewable Energy
EV / Batteries
Ammonia Fuel / Hydrogen Energy / SAF
CCUS
Carbon credits
Other Low-Caron / Decarbonized Businesses (Green Logistics, Green Buildings, etc.)
For an in depth exploration of these initiatives please view the relevant content here.

Government and Local Municipalities
MC supports and advocates for global and local initiatives that contribute to the realization of a decarbonized society such as the
expansion of renewable energy, the development and societal implementation of next-generation technologies such as CCUS andhydrogen, and increased climate-related and other ESG disclosures. MC participates in seminars and training sessions hosted by theJapanese Ministry of Economy, Trade and Industry and Ministry of the Environment, and holds individual discussions on themes such as
the expanded utilisation of TCFD guidelines and proliferation of renewable energy.
In particular, as a planning committee member of the TCFD consortium, MC actively participates in activities to support Japanesecompanies’ response to climate change. Furthermore, we are participating as a key member in discussions on the establishment ofvarious regulatory frameworks in the Public-Private Fuel Ammonia Promotion Council*3 and the Public-Private Council for Promoting theIntroduction of SAF*4, both led by the Japanese Ministry of Economy, Trade and Industry.
*3 Established in October 2020 for the purpose of sharing technical and economic issues for introducing and increasing the use of ammonia for fuelapplications and a timeline for solving these issues among the public and private sectors, and to promote concerted efforts to address these issues.
*4 Established in April 2022 to promote the development and manufacture of internationally competitive and domestically produced SAF, as well as todiscuss technical and economic issues and solutions for future supply chain development among the public and private sectors, and to promote
concerted efforts to address these issues.

Investors and NGOs
Through direct discussions with investors and NGOs, we have received valuable insight and opinions regarding expectations in relation
to our strategies toward the transition to a decarbonized society and our policies for individual businesses, and reflect these in ourconsiderations for business policies and measures. In FY2022, we held approximately 40 discussions with investors on sustainability,
and 85(Japan:9, Europe:32, Americas:44) discussions with NGOs.

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SocialGovernanceIndustry Groups
MC promotes initiatives that contribute to the transition to a decarbonized society through active participation in climate change working
groups. When joining or remaining a member of an industry group, we confirm that their climate change initiatives are in line with MC's
basic policies. Through active participation in working groups and opinion exchanges related to climate change, mainly with the Japan
Business Federation (Keidanren), the Japan Foreign Trade Council, and the World Business Council for Sustainable Development(WBCSD), each of which MC is a member, we are promoting activities aimed at the transition to a decarbonized society.

COLUMN
Participation in the Carbon Recycling Fund Institute
The Carbon Recycling Fund Institute was established in August 2019 with the aim of both addressing issues around global
warming and improving global energy access through innovations in carbon recycling. MC has been a member since November
2019. Through access to the latest information on carbon capture, utilization and storage (CCUS) and enhanced networking
with member companies, we aim to pursue business opportunities and contribute to solving climate change issues.

GovernanceMC recognizes climate change as one of its key management issues. . Since initiating discussions on the resilience of our business toclimate change in 2016, we have established and are expanding internal mechanisms to integrate climate change and other ESG factors
into the decision-making process for business strategy and operations across the MC Group.
Figure 3 Main initiatives to date

Our Climate Governance Structure
MC’s approach to, and policies on, climate change are formulated and regularly reviewed by its Executive Committee, MC’s officer-level
decision-making body. Furthermore, as stipulated in the regulations governing MC's board of directors, the Executive Committee reports
its findings regularly (approximately three times a year) to the Board of Directors.
Board of Directors and Executive Committee Deliberations and Reports
Basic Policy on Climate Chang

Covers climate-related initiatives through MC’s businesses, adoption of the TCFD recommendations, details on
climate-related financial disclosures, etc.

Important Matters

Assessments of climate-change risks and business opportunities (including scenario analyses), GHG reduction
targets and status of reduction initiatives, etc.

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Brief review of Our Climate Governance Process
Prior to the Executive Committee addressing the above Basic Policy and Important Matters, we receive advice and recommendations
from the external experts on our Sustainability Advisory Committee, and hold thorough deliberations at the Sustainability and CSR
Committee (a subcommittee of the Executive Committee) which consists of all Business Group CEOs. Additionally, Group Chief
Sustainability Officers and Group Sustainability Managers are appointed within each Group. These individuals are responsible fordeveloping a salient management strategy, overseeing sustainability-related initiatives including climate action, and strengthening
climate-related initiatives and insight for their respective businesses and strategies. The above Basic Policy and Important Matters are
therefore comprehensively addressed when making key decisions on business strategy, as well as when screening new investment andloan proposals.
Climate-Change Governance Structure
Board of Directors

Supervises MC’s climate-related actions and initiatives

Convenes approx. three times
year

Executive Committee

Makes decisions regarding MC’s basic policy on climate change
Makes decisions regarding important matters pertaining to climate change

Convenes approx. twice a year

Sustainability & CSR Committee (reports
directly to Executive Committee)

Deliberates on MC’s basic policy on climate change and important matterstherein, and reports findings to Executive Committee

Convenes approx. twice a year

Sustainability Advisory Committee

Offers advice and recommendations regarding MC’s basic policy on climatechange and important matters therein

Convenes approx. twice per
year

Officer in Charge

Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO)

Department in Charge

Sustainability Department

Reference:

Diagram of the Sustainability Promotion Framework

Screening Process for Investments and Loans
MC ensures that all loan and investment proposals submitted for review by the Board of Directors and the Executive Committee are firstdeliberated by the Investment Committee, a subcommittee of the Executive Committee.By including the General Manager of the
Sustainability Department in Investment Committee meetings (as a committee member), MC guarantees that the screening anddecision-making process comprehensively considers environmental and social impacts. Besides screening new proposals, theInvestment Committee also strives to implement improvements for existing business investees, by monitoring their management
practices for continued improvements and value enhancement. From the perspective of climate change-related transition
risks/opportunities and physical risks, the review of proposals and decision-making processes considers quantitative data such as GHG
emissions, as well as national policies and industry trends. Since August 2022, when screening new investment proposals for“Transform” and “Green” businesses, which we identify as having significant climate change transition risks and opportunities, inaccordance with the “MC Climate Taxonomy”we have been conducting profitability assessments based on indicators (such as internalcarbon pricing) that use key assumptions under decarbonization scenarios.

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New Activities Based on the Roadmap to a Carbon Neutral Society
and Midterm Corporate Strategy 2024 - Creating MC Shared Value
Roadmap to a Carbon Neutral Society
In October 2021, MC formulated its Roadmap to a Carbon Neutral Society

in which we declared our goal of acheiving net zero

GHG emissions by 2050. As an active player in a variety of industries including resources and energy, we have formulated a number ofgoals and action plans in order to fulfill our responsibility to provide a stable supply of energy while striving to achieve a carbon neutral
society.
Roadmap: Three Core Points
GHG Reduction Targets: Halve by FY2030, Net Zero by 2050
Approx. 2 trillion yen of Energy Transformation (EX)-related investment by FY2030
Integrated EX/DX initiatives to “Create a New Future”

Sustainability as a Growth Lever
In May 2022, MC established and disclosed Midterm Corporate Strategy 2024

, which is based on the company-wide businesspromotion theme of “integrated energy transformation (EX) and digital transformation (DX) initiatives to create a new future” as set forthin the Roadmap.We have pledged to strive to continuously create significant MC Shared Value by strengthening the collective
capabilities of the MC Group and addressing societal challenges through our business, and looking toward the realization of adecarbonized society, we will lead EX initiatives to achieve our growth strategy. (”Creating MC Shared Value”)

Introducing Mechanisms for Simultaneously Decarbonizing and Reinforcing our Portfolio
In order to achieve the GHG reduction targets (halve by FY2030 (FY2020 baseline), net zero by 2050) outlined in “The Roadmap to a
Carbon Neutral Society”, as sustainability policies to address climate change, we have introduced mechanisms for simultaneously
decarbonizing and reinforcing our portfolio as shown in figure 4.
Figure 4: Mechanism for simultaneously decarbonizing and reinforcing our portfolio.

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SocialGovernanceThe basis for this mechanism is our “MC Climate Taxonomy”, a new business classification system implemented in FY2022. MC Climate
Taxonomy, which covers all of our approximately 130 business units, classifies each into 3 categories: Green (businesses withsignificant climate-related transition opportunities), Transform (businesses with significant climate-related transition risks), White (Other).
For businesses classified as Green or Transform, appropriate governance and risk management systems have been adopted to carryout evaluations using assumptions under decarbonization scenarios when screening individual investment proposals, confirm GHG
reduction plans when formulating investment plans, and confirm that our business is aligned with a 2050 net zero scenario in terms ofboth individual projects and company-wide business strategy.
The concrete classification process is shown in Figure 5. In selecting “Transform” businesses, both the volume of GHG emissions(Scopes 1, 2 and 3) and the barriers that exist in reducing GHG emissions are considered. In order to determine the specific reduction
barriers, we use Scope 3 category 11 (GHG emissions associated with the use of products sold) and Scope 1 6.5 Gases(emissions thatcannot be avoided when doing business), both in which emissions reduction are difficult to acheieve, as indicators from the perspectiveof avoiding stranded assets.
We started disclosing Scope 3 Category 11 emissions in February 2023. The background behind the disclosure of these emissions andresults can be found here.
Figure 5: MC Climate Taxonomy Approach*1 Businesses where demand in 2050 under the 2.0℃ scenario will increase by 20% or more compared to the current business*2 We first identified industries with high GHG emissions based on the EU Taxonomy. All other businesses are also classified into this category if they have
exceptionally high emissions compared to other industries, based on internal Scope1 data and external Scope 3 Category 11 data.
*3 Determined based on Scope 1 and Scope 3 Category 11 emissions

The mechanism for simultaneously decarbonizing and reinforcing of our portfolio, including the MC Climate Taxonomy, is effectively
managed via the 5 steps outlined in Figure 6.
Figure 6: Mechanism of initiatives based on “Midterm Corporate Strategy 2024 - Creating MC Shared Value”

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1.5℃ Scenario Analysis
Approach to Scenario Analysis
Climate scenarios explore different potential states of the world in which different temperature trajectories are achieved based on aseries of consistent outcomes and assumptions relating to socioeconomic developments, policies, markets, and technologies. Scenarios
are created and published by independent agencies, such as the International Energy Agency (IEA), the Intergovernmental Panel on
Climate Change (IPCC), and the Network for Greening Financial Services (NGFS) - along with companies that seek to verify andevaluate potential climate risks and opportunities for their own businesses via the creation of their own scenarios.
In order to both decarbonize and reinforce our portfolio, we believe it is essential to conduct scenario analyses by referring to theseclimate scenarios, thereby allowing us to properly understand the transition risks and opportunities for each of our businesses and to
take these into account in formulating business strategies. To this end, since FY2019, we have been conducting scenario analyses inline with the TCFD recommendations, using primarily IEA climate scenarios, and since FY2021, we began conducting scenario analyses
using a 1.5°C scenario predicated on net zero by 2050.

The 1.5℃ Scenario Used in FY2022
We used the IEA Net Zero Emissions by 2050 Scenario (IEA NZE) as a reference for our 1.5°C scenario analysis in FY2021. However,the IEA NZE data lacks the granularity required to extract precise insights that reflect MC’s particular business characteristics andstrategies. As such, MC collaborated with a third-party organisation to create and utilise a customised, specific model of the 1.5°C
scenario (FY 2022 1.5°C Scenario), while aligning key assumptions with the IEA NZE wherever possible, thus allowing for a detailed
level of granularity on topics like demand by region and product. Key assumptions for the FY2022 1.5°C scenario and the comparison
with the IEA NZE are shown in Table 1 below.
Table 1 Key assumptions for the FY2022 1.5°C scenario and the comparison with the IEA NZEOur FY2022 1.5°C scenario assumes both decarbonisation and economic growth similar to the IEA NZE, with an expected averageannual growth rate of approximately 3% in GDP by 2050, and an expected population of about 9.7 billion in 2050.(See Table 1, ① and②)
Global CO2 emissions are anticipated to decline by approximately 35% in 2030 compared to 2020 in this scenario, with the expectationthat we reach net zero emissions in 2050, largely resulting from changes in land use (e.g., afforestation) and the implementation ofnegative emission technologies. The IEA NZE, published in May 2021, utilised 2019 as a reference year and projected a linear decreasein emissions toward 2050. Our FY2022 1.5°C scenario, however, reflects GHG emissions data through FY2021. As a result, GHG
emission from 2019 to 2021 are marginally less than IEA NZE, though still in the acceptable range of reduction required to realise atemperature increase of less than 1.5°C, as presented by IPCC. (See Table 1 ③, Chart 1)

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Chart 1 1.5°C-consistent pathways and GHG emissions presented by IPCC

*1 IEA NZE was created using 2019 as a reference year, and data only exists ata 10-year intervals from 2020. This model was calculated at one year
intervals using the latest data, resulting in diferences in the current figures the accmulated impact of is greater.
*2 Values published in IEA NZE exclude GHG emission reductions resulting from changes in use of land (e.g., afforestation). There is also a proviso thatabout 1.3 Gt of GHG is expected to be absorbed annually as a result of land use in 2050.
*3 Data of Global Carbon Project include GHG emission reductions resluting from changes in use of land.

Under our FY2022 1.5°C scenario, final energy use in 2050 will be approx. 400 EJ. Furthermore, the electricity share in final energy use
will reach approx. 50% in 2050 due to enhanced electrification from decarbonization efforts, leading to an expected global electricity
demand of approx. 90 billion GWh/year (3 times or more compared to 2020 levels) (see Tables 1 ④ & ⑤). Regarding Table 1 ④ "Final
Energy Use", which is considered to differ significantly compared to the IEA NZE, the IEA NZE assumes an average annual
improvement in energy efficiency of about 4% and 2.7% from 2020 to 2030 and from 2030 to 2050, respectively, with 2019 as the baseyear. However, considering that energy efficiency improvements over the past decade have averaged less than 2% per year, the 1.5°C
scenario used in FY2022 assumes a more conservative figure of approx. 2% improvement in energy efficiency per year on averagethrough 2050. With regard to "Primary Energy from Oil and Gas", primary energy supply is expected to reach approx. 100 EJ in 2050,
which is almost equal to the IEA NZE (Table 1 ⑥). We compared items ④ through ⑥ in Table 1 with the 1.5°C scenarios integrated andpublished by the WBCSD and confirmed that all of the figures fall within the range of these scenarios (Chart 2)
Chart 2 1.5°c scenarios integrated and published by the wbcsd

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Influences and Considerations for the FY2022 1.5°C Scenario
While a series of validations through scenario analysis is widely recognized as beneficial as described above, the following points inparticular should be noted.
Scenarios are not future projections and include many inherent risks and uncertain factors and pathways. Accordingly, due tochanges in such factors and other variables, the actual future world and GHG emissions reduction pathways may differ significantly
from those indicated by scenarios.
In the FY2022 1.5°C scenario, the energy mix is calculated based on future cost projections for each technology available at the time.
Therefore, it should be noted that 1) the projections for currently less mature technologies are relatively less reliable. Additionally, thepotential impact of policies on the cost competitiveness and adoption rate of each technology in each region has not been taken into
account. Finally, the impact of resource price fluctuations on technology competitiveness has not been accounted for.

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Results of the 1.5°C Scenario Analysis and Relevant Implications
Identification of Businesses Subject to Analysis
As a global integrated business enterprise with a global network of approx. 1,700 group companies, it is not feasible for MC to apply the
scenario analysis to all of our businesses. As such, we selected businesses that are expected to be particularly affected by the risks andopportunities posed by climate change for our scenario analysis, according to the following process.
In selecting businesses from a risk perspective, we considered two indicators: GHG emissions and asset size.
First, we selected businesses that we categorised as "Transform" businesses under the “MC Climate Taxonomy” due to their highemission volumes and relative difficulty in reducing emissions. From among those businesses, we then selected those with significant
asset sizes, namely natural gas/LNG, metallurgical coal, and power generation (fossil fuels) (these three businesses account for approx.
70% of the balance of investment out of all "Transform" businesses) as targets of the scenario analysis from a risk perspective. Since
MC has already adopted a policy to not enter into any new coal-fired power generation businesses and achieve a 100% non-fossil power
generation portfolio by 2050, power generation (fossil fuels) businesses were exempted, and thus natural gas/LNG and metallurgicalcoal were chosen as final target businesses for the FY2022 1.5°C scenario analysis.
Reference:

Policy on Coal-fired Power Generation Businesses (IPP and EPC)

From an opportunity perspective, among the "Green" businesses classified under the "MC Climate Taxonomy" as having significant
opportunities related to climate change, we selected renewable energy, which is one of our core businesses and for which we havemultiple existing projects, as the target business of the FY2022 1.5°C scenario analysis.
In the following sections, we explain the results of our analysis of the business environment in terms of risks and opportunities for thetarget businesses based on our 1.5°C scenario analysis, as well as our policy and other initiatives in light of these results.

Climate Risks
A. Natural Gas／LNG
The natural gas and LNG are important business areas for achieving a carbon neutral society and sustainable economic development,
since natural gas and LNG play a variety of roles in the transition to a carbon-neutral society. Roles include being a complement torenewable energy intermittency, an energy source for sectors that are difficult to electrify, and being a raw material for next-generationenergy sources. Given the importance of natural gas and LNG, MC conducted a detailed analysis based on the FY2022 1.5°C scenario.
The following shows the results of MC’s analysis of the impact on our natural gas and LNG businesses under the FY2022 1.5 °C
scenario, as well as our business strategy and initiatives.

【Analysis of Business Environment】
In formulating MC’s LNG business strategy, it is important to understand the trajectory and scale of LNG demand under the 1.5°C
scenario, which assumes that decarbonization progresses. From this viewpoint, MC verified and analyzed (1) The primary energy supplyof oil and natural gas, (2) Natural gas demand, and (3) LNG demand based on the FY2022 1.5°C scenario.
(1) The Primary Energy Supply of Oil and Natural Gas
The ratio of oil and natural gas among primary energy supply does not differ significantly between the FY2022 1.5°C scenario and theIEA NZE. Both scenarios project that energy from oil and natural gas will decline to approximately 265-285 exajoules (EJ) in 2030, andto approximately 100 EJ in 2050. This figure falls within the range of other 1.5°C scenarios for 2050, including the IEA NZE published by
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Chart 3 Primary Energy from Oil & Gas(2) Natural Gas Demand
There is no significant difference in global demand for natural gas between the FY 2022 1.5°C scenario and the IEA NZE from now to
2050. In each scenario, global demand until 2030 is expected to remain relatively stable, after which it is expected to significantly decline
when renewable energy, hydrogen and other next-generation energy become widespread (see Chart 4).
Chart 4 Global demand for natural gas and LNG(3) LNG Demand
Demand for LNG is expected to increase following the rising demand for primary energy due to economic growth and the shift from oiland coal to natural gas in Asian countries. For those countries, this is especially the case where natural gas procurements throughpipelines is impossible or domesctic production declines due to depleting natural gas reserves. Global LNG demand is even expected toincrease until 2030 under the FY2022 1.5°C scenario. If decarbonization progresses beyond the commitments made by nations,demand for LNG, as well as natural gas, is expected to fall after 2030. However, the rate of decline in LNG demand is expected to be
slower than natural gas, particularly in Asian countries for reasons mentioned above. Between the years 2040 and 2050, Asian countries
are expected to account for over 90% of global LNG demand. IEA NZE only publishes data representing volumes traded between
regions and not intra-regional trade, thus a calculation of LNG demand by region and a side-by-side comparison is not possible.
However, it is reasonable to assume that the trend in Asia’s rising share of global LNG demand is consistent with IEA NZE data.

【Monitoring and Discussion Items for Transform Discussion】
In consideration of the business environment mentioned above, for natural gas and LNG businesses, MC will monitor and discuss at the
management level the current status and trends of climate change transition risks and, more specifically, items that could affect supply
and demand (see below) in the “Transform Discussion” introduced in the Midterm Corporate Strategy 2024 as one of the sustainability
measures. Such results shall be incorporated into the final business strategy.
Geopolitical risks such as the current energy crisis and situation in Ukraine
Natural gas, LNG, and decarbonization policies of our partners, such as LNG consumers and major oil and gas companies
Advances in low-carbon and decarbonizing technologies such as renewable energy, nuclear power, next-generation energy and
CCUS
Trends in climate change-related regulations, including policies on natural gas and LNG, and GHG emissions reductions by various
governments

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Natural gas and LNG are energy sources that will play a key role in the transition period. Under the FY2022 1.5°C scenario used in thisanalysis, although natural gas and LNG demand is expected to decline overall in the long term, Asia, which is a strategic region for MC’s
LNG business, is still expected to maintain a certain level of demand in the long-term.
Taking into account the business environment mentioned above, MC will be focusing on strengthening its LNG business anddecarbonizing its LNG value chain in order to achieve a stable supply of energy and resources as well as decarbonizing its social andeconomic activities. This is in line with the Midterm Corporate Strategy 2024.
For the longer term, MC shall continue to: 1). work on initiatives to progress the decarbonization of its LNG value chain, 2). optimize its
LNG portfolio, and 3). scale-up investment in next-generation energy, while closely monitoring the overarching business environment,
including the development on technological innovation and climate-related regulations by various governments.
＜Strengthening MC’s LNG Business＞
The majority of the production volume from MC’s existing LNG business is sold under long-term contracts. However, MC will continue toimprove the competitiveness of its existing LNG business by enhancing operational efficiency and cost reductions, while optimizing its
portfolio. For new LNG businesses, MC will make investment decisions by also considering investment returns under a 1.5°C scenario,
taking into account the risk of it becoming a stranded-asset in the event decarbonization occurs rapidly.

Natural gas and LNG-related data

Upstream oil and gas production share
LNG Project list
＜Decarbonization of MC's LNG Value Chain＞
Together with strengthening its LNG business, MC intends to leverage its position and strength as one of the biggest LNG players inJapan to play a key role in transitioning to a decarbonized society, by the promotion of CCUS, and activities in the production and supplyof next-generation energy such as blue hydrogen or e-methane (synthetic methane), which will all contribute to the decarbonization of
the LNG value chain. MC believes that its experience, knowledge, and networks gained from the natural gas and LNG businesses overthe past 50 years can be utilized in specific new business fields mentioned below.

Next-Generation Energy BusinessTokyo Gas, Osaka Gas, Toho Gas and Mitsubishi Collaborate to Produce E-methane in the US and Transport It to Japan, Utilizing
Cameron LNG in Louisiana

CCS Business
MIMI Awarded Greenhouse Gas Assessment Permit in Western Australia
Mitsubishi Corporation Signs Participation Agreement with Sempra Infrastructure, TotalEnergies, Mitsui for Carbon Sequestration
Project in Louisiana

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B. Metallurgical Coal
Through Australian subsidiary Mitsubishi Development Pty Ltd., MC conducts exploration, development, production, and sale of mineral
resources in collaboration with its partner BHP. The BHP Mitsubishi Alliance (BMA), which we operate as a joint venture with BHP, is oneof the world’s largest metallurgical coal operations, with an annual production volume of over 60 million tons and a share of
approximately 30% of the global seaborne metallurgical coal market. Steel is an essential industrial material that every country needs inorder to achieve economic growth. MC expects to see continued strong demand for steel, as it is a key component of efforts to develop
the infrastructure needed to achieve decarbonization. However, the steel industry has yet to implement large-scale, low-carbon
steelmaking methods. In addition, it would take many years for any low-carbon steelmaking method that is developed to be adopted
worldwide. MC therefore anticipates a transitional period lasting several decades, during which growth in the use of electric furnaces forsteelmaking from scrap iron will be accompanied by a shift to hydrogen-based steel production in conjunction with the advent of ahydrogen-based society. In the meantime, blast furnace steelmaking using metallurgical coal is expected to remain the primary
steelmaking method in the foreseeable future. Given these circumstances, MC has carried out the following analysis of the outlook forthe business environment under the 1.5°C scenario, the transition risks for its metallurgical coal business, and the business policies andinitiatives needed to adapt to these changes.

【Analysis of the Business Environment】
BMA’s main product is high-quality metallurgical coal, which BMA supplies to the global seaborne markets. As part of the analysis of thebusiness environment surrounding BMA under the 1.5°C scenario, MC carried out step-by-step evaluations of (1) demand for steel, (2)crude steel production by iron source, and (3) pig iron production and the maritime trade in metallurgical coal.
(1) Demand for Steel
Steel is an excellent basic material and supports economic growth in every country. It also plays a vital role in the development of
infrastructure for achieving decarbonization. Under the FY2022 1.5°C scenario, demand for steel in 2050 is expected to exceed the2020's level (see chart 5). Furthermore, since achieving net-zero emissions by 2050 will require rapid action to create infrastructure
related to decarbonization, consumption for steel can be expected to expand rapidly from the second half of the 2020s. The IEA NZE
predicts a similar level of growth in steel production. These forecasts suggest that demand for steel is likely to remain steady over thelong term, even if major strides are made toward the realization of a decarbonized society.
Chart 5 Trends in global steel consumption under the 1.5°C scenario (2020=100%)(2) Crude Steel Production by Iron Source
The steel industry is seen as a sector in which the reduction of GHG emissions poses major challenges. Efforts are being made to
reduce carbon emissions, such as by making further improvements to electric furnace technology and developing hydrogen-based
steelmaking technologies. Particularly significant is the hydrogen-based direct reduced iron (DRI) method, which is now being trialed
primarily in Europe. However, even under the FY2022 1.5°C scenario and the IEA NZE, the commercialization of this technology isunlikely to take place with large scale until the second half of 2030. This is due to the need to solve various challenges, such as thedevelopment of hydrogen supply infrastructure, as well as the level of hydrogen price and carbon prices. Because of these, DRI
technology is likely to be adopted gradually in the steel sector, starting in regions where the required conditions are in place, such as
Europe. The adoption of this new technology is expected to occur at different times in different regions.
The expansion of electric furnace steelmaking is also expected to lead to a gradual decline in blast furnace pig ironmaking from 2030
onwards.The IEA NZE predicts a decline in blast furnace steelmaking, as well as reductions in carbon emissions from the blast furnaces
that continue to operate, thanks to efficiency improvements and the adoption of CCUS technology. According to the IEA NZE, hydrogenbased production methods will account for around 30% of steelmaking by 2050, which is roughly in line with the FY 2022 1.5°C
scenario(see Chart 6).

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Chart 6 Crude steel production by iron source under the FY2022 1.5°C scenario

The demand for high-quality metallurgical coal produced by BMA is expected to decline more slowly than that for low-quality
metallurgical coal, due to the relatively low greenhouse gas emissions from the blast furnace steelmaking process. High-quality
metallurgical coal is attractive since there is a growing need for low-carbon measures that can be applied during the transition period
when the blast furnace steelmaking process continues to be the prevailing method.
(3) Pig Iron Production and the Maritime Trade in Metallurgical Coal
The gradual decline in pig iron production via the blast furnace steelmaking process will be accompanied by changes in the countries
that comprise pig iron output. Pig iron production in China, which currently accounts for around 60% of the global total, is expected to
decline, while production in emerging economies such as India and Southeast Asia is expected to grow (see Chart 7).Unlike China, India
and many Southeast Asian countries are dependent on imported metallurgical coal, and demand from these countries is expected tosustain the global seaborne trade volumes. Almost all of the metallurgical coal produced by BMA is exported to handle in the seaborne
market.
Chart 7 Composition of pig iron production by country under the FY2022 1.5°C scenario【Monitoring and Discussion Items for the Transform Discussion】
As with MC’s natural gas and LNG businesses, conditions and trends relating to the following key aspects of the metallurgical coalbusiness and their impact on business strategies are monitored and discussed at the management level through the “Transform
Discussion.” The results of these discussions are considered in MC’s business strategies.
The development of scrap iron collection and supply networks in China and emerging economies, and trends in electric furnacesteelmaking
Technological innovations, such as hydrogen-based steelmaking techniques
The applicability of CCUS to the blast furnace steelmaking process, as well as trends in the development of CCUS-related laws andsystems, and social acceptance of CCUS technology
Carbon pricing trends in BMA's major markets
Trends in approvals and the availability of financing for coal mine's development

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The steel industry is expected to see a long transition period and the need for high-quality metallurgical coal, which is BMA’s main
product, will likely increase relative to low-quality metallurgical coal since it contributes to the reduction of emissions in blast furnacesteel making process. On the other hand, the supply of metallurgical coal is expected to decrease as a result of the increasing difficultyof new mine's development such as difficulty of obtaining necessary approvals, and therefore fewer investments in new coal mines. BMA
will continue to ensure a stable supply of high-quality metallurgical coal.
MC is also actively working to reduce BMA’s GHG emissions by exploring and implementing initiatives in areas such as renewableenergy procurement, methane gas processing, and alternatives to diesel fuel. For example, in 2020 BMA signed a contract to source
low-emission power, which will cover around half of BMA's overall power demand at its coal mines. This move will enable BMA to cut its
Scope 2 emissions by half by the mid-2020's.
MC has also signed a collaborative agreement with its partner BHP, a major steel manufacturer, and a prominent engineering firm
regarding the trial use of CCUS technologies in steelmaking. This initiative is part of MC's efforts to reduce GHG emissions throughout
the entire steelmaking value chain.
In the mineral resources business, MC will work to promote its EX strategy from the three perspectives of decarbonization,
electrification, and the shift to circular economies. In addition to efforts to decarbonize the steelmaking value chain, MC will also strive toexpand its involvement in areas that are essential for electrification, such as copper and raw materials for battery, as well as its recycling
business.
Reference

Examples of decarbonization initiatives by MDP (partnerships with major CCUS players across multiple industries)

Climate Opportunity
A. Renewable Energy
Renewable energy is one of the core businesses of MC’s EX strategy. Renewable energy has been selected as a business with majortransition potential in terms of climate change and several projects have already been developed. The following analysis was conductedunder the FY2022 1.5°C scenario.

【Analysis of the Business Environment】
Electrification in a wide range of industries is essential in order to achieve net-zero emissions by 2050. It is assumed that a large portionof that electricity needed will be provided through renewable energy, mainly solar and wind power. As shown in Chart 8, in the FY2022
1.5°C scenario, the increase in the scale of total electricity generation and the share of renewable energy in that total generation due tothe progress of electrification is very significant. This trend is also consistent with the IEA NZE.
Also, in line with the expansion of renewable energy, power generation amount of which varies according to weather conditions andwhich has a strong aspect as a distributed power source, further business opportunities are expected to increase, such as the expansionof transmission capacity, utilization of storage batteries, and demand response, which will contribute to improving the flexibility of thepower supply and demand system.
Chart 8 Global Power Supply, and % of Renewable Power Supply

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The introduction of renewable energy and the spread of battery storage, as well as the accompanying trend toward decentralization of
the power supply system, will vary according to country and region depending on the status of policies, regulations, and technologicalinnovations, and the timing of their manifestation may differ significantly.
MC “produces” (generates) renewable energy, “integrates” weather-dependent electricity (through a sophisticated balance of supply anddemand), and “delivers” this integrated electricity and high added-value services. By strengthening each of these functions of the power
value chain, MC aim to expand our renewable energy business in Japan, where offshore wind power is expected to grow, and in Europe,
where Eneco’s platform stands, as well as in the Americas, Asia, and other regions.
MC is making progress toward achieving its target to double its renewable energy power generation capacity from 3.3 GW in FY2019 to
6.6 GW by FY2030.

Specific Initiatives and Case Studies Related to Renewable Energy＜Initiatives in Europe for the Promotion of Renewable Energy (Eneco)＞
Eneco is operating power generation businesses, power and gas trading businesses, power and gas retail businesses, and district
heating businesses focused in the Netherlands, Belgium, and Germany with a core focus on renewable energy. With a solid customer
base that is the third largest in the Netherlands, Eneco has approximately 1,800 MW of renewable energy assetss, which include theones under construction status. In December 2022, MC and Shell plc were successful in the tender for the Hollandse Kust West Site VI
offshore wind farm (760 MW capacity), located approximately 50 km off the Northwest coast of the Netherlands. This will be Eneco’s fifth
offshore wind project in the Netherlands and seventh in Europe, bringing total capacity of offshore wind in the Netherlands to 2,500 MW.
Renewable energy net equity base capacity will expand from 3,430 MW to 3,670 MW.
＜Promoting Renewable Energy in the U.S. through Nexamp’s Distributed Solar Power Generation Business＞
Through Diamond Generating Corporation, a wholly owned subsidiary power business in the U.S. MC operates Nexamp, Inc., a
distributed solar power generation company. Nexamp's community solar business sets up solar power generation systems in local
communities, allowing customers that cannot install solar panels to use solar-generated electricity in their homes or offices.
＜Promoting Offshore Wind Power Generation Projects in Japan＞
The consortium represented by Mitsubishi Corporation Energy Solutions Ltd. (currently Mitsubishi Corporation Offshore Wind PowerLtd.) was appointed by the government on December 24, 2021 as an operator for an offshore wind power generation project in thefollowing promotion zones under the Act on Promoting the Utilization of Sea Areas for the Development of Marine Renewable Energy
Power Generation Facilities. The consortium is moving ahead with the development of a seabed-anchored offshore wind power
generation business, the first of its kind in Japan, for general sea areas.
Promotion-zone offshore wind power generation project off the coast of Noshiro City, Mitane Town, and Oga City, Akita Prefecture
Promotion-zone offshore wind power generation project off the coast of Yurihonjo City (northern side and southern side), Akita
Prefecture
Promotion-zone offshore wind power generation project off the coast of Choshi City, Chiba Prefecture＜MC Signs Japan’s First Long-term Corporate PPA for Online Retail Giant Amazon＞
MC has signed a long-term Corporate Power Purchase Agreement (Corporate PPA), through which it will supply electricity to data
centers owned and operated by the Amazon subsidiary Amazon Web Services, Inc. (AWS). Facilitated by MC Retail Energy Co., Ltd.,
this Corporate PPA represents Amazon’s first use of renewable energy in Japan.Under the agreement’s terms, West Holdings
Corporation will build and maintain roughly 450 solar power stations (with a total installed capacity of approximately 22 MW) for Amazon
and supply the online retailer with wholesale electricity. MC subsidiaries Mitsubishi Corporation Energy Solutions Ltd. and ElectroRoutewill also be involved. The former will manage construction of the solar power facilities and provide tech support, while the latter will
forecast the facilities’ outputs and hedge power generation imbalances*.
* Investments to hedge costs incurred through supply-demand imbalances that occur when solar power outputs fail to match their original forecasts

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Renewable energy related data
List of Renewable Energy Businesses
List of Offshore Power Transmission Businesses

Summary
As presented above, by aligning key assumptions with the IEA NZE to the extent possible and referring to our FY2022 1.5°C scenario,
which includes more granular data such as demand by region and commodity, we were able to analyze the business environment
surrounding natural gas/LNG and metallurgical coal, which have considerable GHG emissions and are particularly large assets, from arisk perspective. From an opportunity perspective, we analyzed the business environment surrounding renewable energy, where webelieve business opportunities will increase as society continues to decarbonize
The results of our FY2022 scenario analysis above exemplify the resilience of MC’s business portfolio, even under a 1.5°C scenario
assuming rapid society-wide decarbonization.
In order to manage the risks associated with climate change and appropriately seize business opportunities, we will continue to update
our decarbonization scenarios and utilize them in our business environment analyses while formulating and executing businessstrategies to both decarbonize and reinforce our business portfolio, as announced in Midterm Corporate Strategy 2024 - Creating MC
Shared Value.

77Environment

SocialGovernancePhysical Risks
MC is working to realize a decarbonized society through its businesses across the globe. Nevertheless, we are aware that ourbusinesses are also exposed to physical risks associated with climate change. In addition to the transition risks and opportunities
assessed in the aforementioned 1.5°C scenario analysis, we have also analyzed the potential impact of physical risks (e.g., flooding,drought, rising temperatures, etc.) on MC Group businesses.
Main Physical Risks:
Increase in Unusual Weather Patterns

Risks of water shortages, floods and other resulting phenomena having an adverse impact on business operations

Climate Change

Risk of rising temperatures, etc. having an adverse impact on businesses

Physical Risk Assesment Process
With a global portfolio of companies with a diverse range of assets, it was important first to determine which MC Group assets are most
exposed to the physical impacts of climate change. As such, MC has employed the following assessment process, starting with theidentification of key assets.

Phase 0: Identification of Material ssets
To determine MC Group assets that are material to the operational performance of MC, MC first identified a subset of subsidiaries/
affiliates that have the greatest potential to have a material financial impact on MC using financial metrics such as profits and total asset
values, and then identified assets that are material to their business.

Phase 1: Screening
MC engaged an independent specialist consultant to conduct a climate hazard screening exercise to identify high-risk assets that should
undergo a detailed analysis. This assessment focused on 74 assets across 38 MC subsidiaries/affiliates located in 13 countries thatwere identified as material. During the screening process an evaluation of exposure to hazards through to 2030* was conducted, using
observational data and climate model projections. The hazards included in this evaluation included coastal flooding (storm surges, sealevel rise), stormwater flooding, wildfires, temperature rise, cyclones, and droughts. The evaluation employed the Intergovernmental
Panel on Climate Change (IPCC)’s Representative Concentration Pathway (RCP) 8.5 scenario.
Each asset was assigned a numerical exposure score for each climate hazard. Each asset was then given a qualitative exposure rating(‘High’, ‘Medium’, or ‘Minimal’) based on the asset’s overall numerical hazard exposure score.
Hazard Exposure RatingHigh

Description
Overall hazard score greater than 30

MediumOverall hazard score 15-30

MinimalOverall hazard score less than 15* The coastal flooding assessment considered exposure to sea level rise through the year 2050

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On the basis of the screening results, 18 of the high ranked assets located in eight countries were selected for a more detailed climate
hazard analysis in this phase. The purpose of the detailed analysis was to scope the current and anticipated physical climate hazards foreach asset through to 2080 (evaluated over three time frames: 2030, 2050, and 2080) - using observational data, climate model
projections, and information such as previously experienced impacts due to physical climate hazards. The analysis in this phase also
employed the IPCC’s Representative Concentration Pathway (RCP) 8.5 scenario, along with the RCP 4.5 scenario in order to conduct a
risk analysis for a moderate range of temperature increase.
The potential severity of climate hazards for each asset were ranked by considering the probability that the climate hazard will occur, themagnitude of the hazard’s impact on the asset, and the likelihood of the asset being affected. These were then ranked on 5-level color
scales (red, orange, yellow, green and grey), indicating priority areas for adaptation strategies and activities.
Hazard Rating

Description of Hazard Severity and Level of Recommended Action

4

Present-day hazards causing material impacts. Adaptation strategies should be evaluated and deployed.

3

Imminent hazards likely to result in material impacts during the planning time horizons. Adaptation strategies should be developed in
the near future.

2

Lower likelihood or lower impact hazards which may occur during the asset hold period but are unlikely to cause material impacts
and/ or for which more information is required. Impacts should be monitored but may not need action at this time.

1

Hazards currently modeled to have minimal impact and/ or to occur after the planning time horizons; may be re-evaluated in the
future.

0Site is not exposed to this hazard.

Physical Risk Assessment Results
The results of the assessment are shared with each MC Group company to inform their future adaptation measures. The current
measures and future adaptation strategies for assets that received a red hazard ranking for any of the hazard types covered by theassessment are detailed below.

Metallurgical Coal Business
Assets subject to assessment

Mines and coal terminal owned by BHP Mitsubishi Alliance (BMA)*

Location

Australia

Type of hazard

Stormwater flooding
Given that flooding due to heavy rain at mines has the potential to disrupt operations, the following measures havebeen implemented to improve resilience of the sites to flooding since the last flood events in 2011:
Implementation of water storage inventory procedure based on climate forecasts;

Current measures

Utilization of the pits under care and maintenance for its water storage management;
Installation of floods levees to prevent flood water entering pits, pumping and water pipeline systems to move
surplus water around and between mine sites and water storage locations, and additional excess water
discharge infrastructure.

Future adaptation strategies

MC together with BMA will continue to enhance physical risk mitigation in response to climate change forecasts.

Copper business
Assets subject to assessment

Copper mines owned by Anglo American Sur, S.A

Location

Chile

Type of hazard

Drought

Current measures

While most of the water required for the operations is reused within the mine, a certain amount is lost due toevaporation and other factors, and this water must be replenished from external sources.
Since in the drought condition, there is a possibility that sufficient water intake may not be possible which could
affect operations, resilience measures are considered through increased procurement of industrial wastewater andtreated sewage from third parties.

Future adaptation strategies

In addition to the current measures, further diversification of external water procurement is under consideration.
Moreover, new initiatives to further improve water reuse efficiency at the operations are also being considered.

* To address the risk of the storm surges associated with cyclones at the coal terminal, which was ranked as orange in the assessment, the latest port
berth infrastructure installed has been designed to withstand a 1 in 1000 year wave event factoring in rises in sea levels and cyclone impacts due toclimate change. An additional project is currently underway to upgrade an older berth to the same design standard.

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Key GHG Metrics and Disclosure Highlights
MC has set GHG emissions reduction targets consistent with the Paris Agreement, which aims to limit global warming to well below 2°C,
preferably 1.5°C above pre-industrial levels by the end of the century, and is advancing a variety of measures to achieve these targets.
With a global network of approx. 1,700 group companies, we have set GHG emissions reduction targets on a consolidated basis andwork closely with MC Group companies to collect GHG emissions data and advance emissions reduction initiatives on a consolidated
basis. Furthermore, we utilize our environmental management system (EMS) to collect basic information for policy planning. In FY2020,
we expanded the scope of the survey via a major update to our environmental performance survey system, and are continuously
working to improve the accuracy and timeliness of both qualitative and quantitative data on our GHG reduction initiatives.

Targets
MC is committed to creating MC Shared Value by simultaneously decarbonizing and reinforcing its portfolio in accordance with the net
zero by 2050 and the 1.5°C target, in line with the Paris Agreement. To this end, we have set the following three goals toward therealization of a decarbonized society.

1) GHG Emissions Reduction Targets■ Net zero GHG emissions by 2050, and a FY2030 target with a detailed reduction plan
■ Emissions halved by FY2030 (compared to FY2020 levels) through portfolio replacement driven predominantly by
divestment of thermal power assets.
MC believes it is appropriate to set a reduction target that includes the GHG emissions of affiliated companies, which are also important
as a profit base. Therefore, in calculating GHG emissions, which is the premise of this target, MC has adopted the GHG Protocol’s
equity share approach that includes GHG emissions for affiliated companies.
Figure 7: GHG Emissions Reductions Targets in the Roadmap to a Carbon Neutral Society

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Our Progress to Date
MC is continuously tracking progress against our targets . By FY2022, we had made clear progress against our targets, on our journeyto halving Scope 1 & 2 GHG emissions by 2030.

*1 The above figures represent the Scope 1 and Scope 2 emissions of MC and its consolidated companies, including affiliates, based on the GHG
Protocol’s equity share approach. Furthermore, base year figures include emissions from thermal power generation and natural gas projects, which
comprises (i) assumed peak emissions from pre-operational committed projects and (ii) projected full-capacity emissions for partially-operational
projects.
*2 13.9 ｍillion tons would be equivalent to Scope 3 Category 15 (Investment) under the GHG Protocol’s financial control approach. For details please referto the Environmental Data.
*3 Any residual emissions, after reduction efforts have been made, will be neutralized using internationally-accepted offsetting methods including carbon
removal. The specific reduction plan and measures for the GHG emissions reduction targets will be adjusted as required in line with progress oftechnological developments, economic viability and policy/ institutional support.

2) Non-Fossil % in Power generation business
Aim to reduce existing thermal power capacity and switch to zero-emission thermal power, targeting 100% non-fossil by 2050.

3) Renewable Energy power generation capacity
Doubling MC's renewable energy power generation capacity by FY2030 (compared to the FY2020 level).

Scope 1 & 2
Following its new Green House Gas (GHG) emission reduction targets announced in FY2021, MC calculates GHG emissions based on
the GHG Protocol’s equity share approach from FY2021, including the GHG emissions of its affiliates.
Reference:

Climate Change Data

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Scope 3 Category 11
As noted in the "Roadmap to a Carbon Neutral Society", MC has considered the management and disclosure of Scope 3

emissions of particularly large emissions categories. For MC, that is Scope 3 Category 11 emissions (Use of Sold Products), and wehave started to disclose this figure from FY2021.
In FY2022, MC's Scope 3 Category 11 emissions were approx.138 million tons for Transform Businesses and approx.169 millions tons
for White Businesses. Scope 3 Category 11 emissions from White Businesses were primarily from businesses with no physical assets,
thus making it relatively easier to reduce emissions (e.g., trading businesses with no fossil fuel-related assets). Emissions fromTransform Businesses were mainly from those with its own assets, with high emissions due to the nature of the businesses.
Because Scope 3 emissions, including Category 11, are generated by other companies, MC will need to work with a wide range ofpartners throughout its supply chains to tackle this societal challenge of reducing Scope 3 emissions.
MC will tackle this issue through our Integrated EX/DX initiatives (e.g. supply of renewable energy, next-generation energy, nextgeneration climate technology investments through Breakthrough Energy Catalyst), and will collaborate and challenge with various
stakeholders to achieve decarbonization of social and economic activities.

Reference:

Climate Change Data

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Avoided Emission
Our Efforts to Reduce Emissions
Our company has identified "Contributing to a Decarbonized Society" as one of its material issues, and we are promoting carbon
reduction and decarbonization through our business activities in a number of fields. By leading this transformation and connecting it toour business growth, we will create MC Shared Value.
We have decided to newly disclose avoided emissions as one aspect of MC Shared Value. Specifically, this will be utilized as aquantitative indicator to measure how much our company is making concrete contributions to GHG emissions reductions as well as towhat extent we are capturing business opportunities in the transition to a decarbonized society.
We will contribute to the decarbonization of society by creating avoided emissions through EX/DX-related investments of approximately
2 trillion yen during Midterm Corporate Strategy 2024.

What are Avoided Emissions?
Avoided emissions are defined as the quantified contribution to the reduction or mitigation of GHG emissions by providing low-emission
products and services that contribute to societal GHG emissions reduction, compared to providing existing products and services(baseline scenario).
The basic formula that we uses for calculating avoided emissions is as follows.
Flow basis(Lifetime)
Evaluation of the amount of avoided emissions by calculating the difference between the CO2 emissions of our products manufactured
in the evaluation year up to the end of their life and the CO₂ emissions of the baseline scenario. This category covers avoidance in theform of materials and other products that are essential for EVs and other final products.
Stock basis (Single year)
Evaluation of the annual avoided emissions generated from our products within the year of evaluation. This category covers avoidancefrom renewable energy projects, etc.
The term “avoided emissions” includes not only the amount of carbon avoided by our products and services, but also the amount ofcarbon captured and removed.

* Contribution ratios are not taken into account at this point due to limitations in the calculation.

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Our Avoided Emissions
We have chosen and assessed the following products that contribute to the transition to a decarbonized society and that generatequantifiable avoided emissions.
In principle, calculations are based on production and operating volumes, but forecasts are used for sales volumes and other data thathave yet been compiled for certain products.
【Evaluation period: Stock basis
Assessed
Product(One year)】

AvoidedEmissions

Details

Final ProductBaseline

Calculation Formula(Unit: thousand t-CO2)

Solar

474

Onshore Wind

1,227

Geothermal

289

Hydroelectric

110

Biomass

339

Offshore Wind

652

Power generation capacity [MW] × 24
hour × 365 days × Emission factor[tCO2/MWh] × Capacity factor × Equity

Contribution by the creation ofrenewable energy-

Average energy mix
ratio of the company
in each country(Only the avoided emissions at theoperational stage, which accounts forthe majority of emissions, is calculated)

Contribution by capture and storage ofCO2 from new land-management
Carbon Credits(Revegetation)

28

practices to facilitate the regeneration ofnative woodlands that have been lost
over the past few centuries due toclearing and overgrazing--

Carbon credits generated by regrowthof native forests × Equity ratio of thecompany

Details

Final ProductBaseline

Calculation Formula

Contribution by supplying aluminum
which is essential for EV chassis, etc.

Battery electricvehicle* Carbon credits generated by projects in which
we have been involved, not including credits
purchased by us from other companies【Evaluation period: Flow basis (Lifetime)】

Assessed
Product

AvoidedEmissions(Unit: thousand t-CO2)(Lifetime emissions of ICEVs [tCO2] 46

Power generation capacity [MW] × 24
hour × 365 days × Capacity factor ×
Emission factor [tCO2/MWh] × Number

Aluminum
3,800

Contribution by supplying aluminum
which is essential for solar power
generation frames, panels, wind power
blades, towers, connectors, etc.

Solar and wind
power generation
facilities

of solar and wind power facilities that
Average energy mix
incorporate our aluminum × Economic
in each country
life [years] (Only the avoided emission
at the operational stage, which accounts
for the majority of emissions, iscalculated)

1,346

Contribution by supplying copper whichis essential for EV batteries, motors,
wires, etc.

Battery electricvehicleInternal combustion Lifetime emissions of EVs [tCO2]) ×
engine vehicles
Number of EVs that incorporate ourcopper(Lifetime emissions of ICEVs [tCO2] -Power generation capacity [MW] × 24
hour × 365 days × Capacity factor ×
Emission factor [tCO2/MWh] × Number

CopperRO
Membranes

Internal combustion Lifetime emissions of EVs [tCO2]) ×
engine vehicles
Number of EVs that incorporate ouraluminum

52,035Contribution by supplying copper whichis essential for solar power generation
wiring, solar thermal collectors, wind
power generators, wiring, etc.

Solar and wind
power generation
facilities

4,438

Contribution by using RO membrane
products to avoid the use of heat inseawater desalination

Seawaterdesalination using
RO membranesof solar and wind power facilities that
Average energy mix
incorporate our copper × Economic lifein each country[years] (Only the avoided emission at
the operational stage, which accounts
for the majority of emissions, iscalculated)(Lifetime emissions of Seawater
desalination using RO membranes[tCO2] - Lifetime emissions of

Desalination byevaporation method Desalination by evaporation method[tCO2]) × Sales quantity (unit) × Equity
ratio of the company

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Assessed
Product

AvoidedEmissionsSocial

Details

Governance

Final ProductBaseline-

Situation before
project
implementation

Calculation Formula(Unit: thousand t-CO2)

CO2 emissions per truck (average
Trunk line DX

7

Contribution by providing a timetablevisualization and optimization system
for trucking companies to reduce thenumber of truck operations

annual mileage [km]) ÷ Fuelconsumption [km/ℓ] × Emission Factor[tCO2/ℓ]) × Reduced number of units[unit] × the assumption of Economic life
[years](Lifetime emissions of blast furnacesteel [tCO2] - Lifetime emissions

6,355

Contribution by supplying needle coke,
which is essential for graphite
electrodes in electric furnaces that
produce steel with low greenhouse gas
emissionsElectric furnacesteel (Graphite
electrodes forelectric furnaces)

13

Contribution by supplying needle cokeused for the anode material of EV
lithium-ion batteries

Battery Electric
Vehicle (anodematerial for lithiumion batteries)

Needle cokeof electric furnace steel [tCO2]) ×
Blast furnace steel

Number of Graphite electrode forelectric furnace steel that incorporate
our Needle coke × Coefficient of steel
production that can be produced from 1
ton of graphite electrode(Lifetime emissions of ICEVs [tCO2] -Lifetime emissions of EVs [tCO2]) ×
Internal combustion
Number of anode material for lithium
engine vehicle
batteries in EVs that incorporate ourNeedle coke from MC

Examples of projects that contribute to avoided emissions that are in the planning stages or will begin
operations in the near future
We have calculated the estimated values for FY2024 and beyond for the avoided emissions of projects that have not yet begun
operations or provision of services, or are soon to begin operations. In the future, we will calculate the actual amounts of
avoided emissions based on the operational performance of each project.

Renewable Energy Power Generation Business
Through operation of solar, onshore wind, hydro, and offshore wind power generation facilities on which we have already begun
construction, we expect that the amount of avoided emissions will increase by approximately 640,000 tons/year on a stockbasis.

Recycled PET Resin Business
By providing recycled PET resin with chemical recycling technology in our manufacturing and sales operations for beveragebottles, compared to PET resin derived from fossil fuels in the future, we expect the amount of avoided emissions to beapproximately 18,000 tons/year on a flow basis.

Reduction of methane in Rice-paddy fields through prolonging mid-season drainage periods
By prolonging the period during which rice-paddy fields are drained of water and dried during the paddy rice cultivation period,
we are planning and coordinating a project to avoid greenhouse gas (methane) emissions from the soil, which will equate toapproximately 1,000 tons per year on a stock basis in FY2023. In FY2024 and beyond, MC is aiming to increase the amount ofthese avoided emissions in line with an expansion of the project scale.

Installation of next-generation sails on our vessels
We expect to reduce fuel consumption and decrease GHG emissions in the shipping industry by installing next-generation “rigid
sails” (Wing-shaped sail) on our owned cargo ship, which is estimated to contribute approximately 3,000 tons/year on a stockbasis.
* The estimated avoided emissions shown above are subject to change depending on the actual operation and sales status of the commercial products

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SocialGovernanceSupplementary Information【Points to note when calculating the Company's avoided emissions】
In calculating the avoided emissions, we use actual (forecast) values and publicly known information as much as possible. However,when information is not readily available, assumptions and scenarios are set for calculation purposes.
We will continue to refine calculations and disclosure of avoided emissions based on related ongoing international discussions andtrends.

[Examples of guidelines used as reference]
GX League "Basic Guidelines for Disclosure and Evaluation of Climate-related Opportunities"（2023）
WBCSD/WRI "GHG Protocol Corporate Accounting and Reporting Standard" (2019)
WBCSD/Net Zero Initiative "Guidance on Avoided Emissions: Helping business drive innovations and scale solutions towards Net
Zero"（2023）
Ministry of Economy, Trade and Industry "Guidelines for Quantifying GHG emission reductions of goods or services through Global
Value Chain" (2018)
The Institute of Life Cycle Assessment "Guidelines for Assessing the Contribution of Products to Avoided Greenhouse Gas
Emissions" (2022)
Japan Chemical Industry Association "Guidelines for assessing the Avoided Emissions" (2012)86

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Policy on Coal-fired Power Generation Businesses (IPP and EPC)
Environment
In line with "The Roadmap to a Carbon Neutral Society" , and in response to the 1.5ºC scenario analyses, MC is taking steps to

Policy on Coal-fired Power Generation
Businesses (IPP and EPC)

divest from fossil fuels - such as moving to alternative fuel sources and raising the percentage of biomass co-combustion at existingcoal-fired power plants. Our goal is to reduce our coal-fired power generation capacity on a net equity basis, in line with the 1.5ºC
scenario analyses.

＜Independent Power Producer (IPP) Business for Coal-fired Power Generation＞
As of March 31. 2022, MC’s coal-fired power generation capacity (for businesses in which MC serves the role of Independent Power
Producer, or “IPP”), including projects under development and construction, is approximately 1.7GW on an equity share basis(roughly 15% of MC’s total capacity as of the same date).
MC has adopted a policy to reduce its equity share to approximately one-third by 2030 (compared to 2020 levels) by not entering into
any new coal-fired power generation businesses, with the Vung Ang II project in Vietnam being the last, and to exit all existing coalfired power generation projects by 2050. Furthermore, we will work to reduce CO₂ emissions in our thermal power generation
business by taking steps such as converting to alternative fuel sources. We will subsequently aim to achieve a 100% non-fossil power
generation portfolio by 2050 by 1) decarbonizing our thermal power generation business by switching to zero-emission thermal powerand 2) further expanding our renewable energy business.
＜Engineering, Procurement and Construction (EPC) Business for Coal-fired Power Plants＞
MC will not enter into any new EPC (Engineering, Procurement and Construction) businesses for coal-fired power plants, with the
Quang Trach 1 project in Vietnam being the last. However, MC will continue to provide after-sales services for installed plants incases such as when MC has a contractual obligation with the relevant power generation company, or when it is requested to do so by
the power generation company or equipment manufacturer.
Furthermore, MC will continue additional construction work and equipment replacement to reduce the environmental impact ofexisting coal-fired power plants, while assessing the effectiveness of such measures, as an initiative linked to the transition to a lowcarbon/ decarbonized society.

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Environment

Mitigation and Adaption Initiatives
Renewable Energy
The deployment of renewable energy is expected to further increase with the introduction of support systems by national governments,
technological advancements, and other developments.
For renewable energy businesses, MC has set a target aiming to double renewable power generation capacity by FY2030 compared to
FY2019 (from 3.3GW to 6.6GW). Embracing the trend that renewable energy will become the world's main energy source, MC's policy is
to expand investment and initiatives from power generation to retailing centered on renewable energy. This is exemplified through MC’s
2020 acquisition of the Dutch company Eneco, which operates as an integrated energy business throughout Europe. By combining
digital technologies with environment-friendly energy sources, including renewable energy, MC aims to help ensure a stable supply of
power while also providing customers with new value, such as the supply-demand adjustment function. In addition, through its activities
in the field of hydrogen, which is seen as a next-generation fuel, MC aims to contribute to the realization of a decarbonized society while
also increasing its corporate value.

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SocialGovernanceInitiatives in Europe for the Promotion of Renewable Energy (Eneco)
Dutch integrated energy company Eneco operates power generation businesses, power and gas trading businesses, power and gas
retail businesses, and district heating businesses focused in the Netherlands, Belgium, and Germany with renewable energy at its core.
With a solid customer base that is the third largest in the Netherlands, Eneco has approximately 2,200 MW of renewable energy assets,
which include the ones under construction status. Since 2007, Eneco has developed renewable energy ahead of its competitors and has
established a position as a green brand by providing consumers with 100% green energy (including the use of green certificates) since2011. Eneco is an innovative company that has set customer-focused services as an objective since very early on. In addition, in 2021,
Eneco announced its One Planet Plan, which aims to achieve carbon neutrality by 2035, covering CO2 emissions not only from its own
activities (Scope 1 and 2) but across its value chain (Scope 3) as well, which includes power, gas retailing, and supplying heat tobusinesses and households. Eneco is also recognized both domestically and internationally as a company actively working toward
measures to address climate change.
Prior to the acquisition of Eneco, MC and Eneco contributed to the deployment and expansion of renewable energy in Europe, working
together on three European offshore wind projects along with an battery storage project in Europe. MC aims to contribute to theestablishment of a sustainable society through the simultaneous realization of the three types of value—economic, societal, andenvironmental—by utilizing Eneco's technology and expertise to accelerate the development of renewable energy inside and outside ofEurope. Also, by combining Eneco's customer base and MC's various products and services, MC aims to improve services related toenergy management for Eneco's customers and promote the EX and DX strategies outlined in Midterm Corporate Strategy 2024.
The power business is facing a transition period brought about by the increase in small-scale decentralized power sources anddevelopments in storage batteries and digital technology that have arisen with the dissemination of renewable energy. Under suchcircumstances, MC, along with its partner Chubu Electric Power, aims to contribute to solving societal issues such as the transition to a
decarbonized society and the preservation of the global environment. Both companies will do so by supporting the infrastructure ofpeople’s lives through the growth of the innovative integrated energy company Eneco, which provides customer-focused services thatutilize renewable energy development along with digital technology.

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SocialGovernanceJapanese Offshore Wind Power Generation Business
A consortium represented by Mitsubishi Corporation Energy Solutions Ltd. (now Mitsubishi Corporation Offshore Wind Power Ltd.) was
selected by the Government of Japan as the operator for the following promotion zones on December 24, 2021 in accordance with the
Act on Promoting the Utilization of Sea Areas for the Development of Marine Renewable Energy Power Generation Facilities. The
consortium is moving ahead with the development of a seabed-anchored offshore wind power generation business, the first of its kind inJapan, for general sea areas.
Offshore of Noshiro City, Mitane Town, and Oga City in Akita Prefecture, a promotion zone for the development of marine renewableenergy power generation facilities.
Offshore of Yurihonjo City in Akita Prefecture (Northern and Southern sides), a promotion zone for the development of marine
renewable energy power generation facilities.
Offshore of Choshi City in Chiba Prefecture, a promotion zone for the development of marine renewable energy power generation
facilities.
Offshore wind power generation is not just a promising business as a major power source for a decarbonized society, it is also a criticallyimportant power source for energy security in Japan, a country noted for its low energy self-sufficiency but surrounded on all four sides
by the sea. For over 30 years, MC has carried out projects that make exclusive use of the sea. Because of this, we consider it our duty
to utilize power generation in the creation of economic value and environmental value as well as to produce societal value through theresolution of regional societal issues.
Through Mitsubishi Corporation Offshore Wind Power Ltd. , MC will steadily implement offshore wind power generation operations,
thereby enabling it to contribute to Japan's energy policies toward a decarbonized society as it engages in the realization of independentand self-reliant local communities.

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EV/ Batteries
Currently, it is said that the transportation sector accounts for approximately 20% of global CO2 emissions, and the reduction of CO2
emissions as well as of the use of fossil fuels in the automotive industry pose significant issues. As EVs become increasingly popular
due to their lower environmental impact while in operation, MC is contributing to the realization of a decarbonized society throughbusiness activities that focus on both EVs and batteries.

Partnership with Honda
MC and Honda Motor Co., Ltd. (Honda) have signed a memorandum of understanding to begin discussions toward the creation of new
businesses with an aim of leveraging the strengths of both companies to build sustainable business models, with a focus on expanding
EV adoption in a decarbonized society. Moving forward, the two companies will strive to increase the value offered to customers throughtheir EV and EV battery businesses. Details about the commercialization of these businesses are explained below.

１. Battery Lifetime Management BusinessThis new business aims to maximize the value of batteries installed in Honda electric light motor vehicle models, that are scheduled to
go on sale in Japan in 2024. By employing sophisticated battery-monitoring functions, the new business would manage and maximize
the value of batteries throughout their lifetime by repurposing them from powering EVs (in-vehicle use) to then using them as stationary
energy storage (stationary use).

2. Smart-charging*1 and V2G*2 Energy Management BusinessThis new business helps EV users optimize their electricity costs by offering access to smart-charging, V2G services, and green(renewable) power through advanced control technologies.

*1 Smart-charging systems automatically adjust the timing of EV charging to avoid peak load periods and optimize energy consumption.
*2 Vehicle to Grid:: In a V2G system, EVs will not only be charged with electricity from the grid but will also supply electricity to the grid itself to help meet
local electricity needs.

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SocialGovernanceAmmonia Fuel/ Hydrogen Energy/ SAF
Ammonia Fuel
MC is focusing on ammonia and hydrogen which are seen as promising next-generation energies. MC is proceeding with joint testingwith our partners at each stage of the ammonia fuel value chain, “production,” “transportation” and “usage.”
For the “production” stage, MC is currently assessing the production process of ammonia fuel with a combination of fossil fuels andCCUS. MC is considering this a practical option both from a technical and economic perspective. However, at the same time, MC is also
proceeding with reviewing more environmentally-friendly methods such as hydrogen and ammonia production derived from renewableenergies and hydrogen production that utilizes photocatalytic technology.
For the “transportation” stage, it is assumed that large-scale transportation and storage of ammonia fuel will be necessary, so MC will
respond by utilizing its expertise in logistics cultivated through its existing businesses.
For the “usage” stage, MC will leverage our relationships with energy industry players that we have cultivated through our existing
businesses. MC has also begun detailed studies for the joint full-scale introduction at each company.

CCS Joint Study for Clean Fuel Ammonia Production in Indonesia
Japan Oil, Gas and Metals National Corporation (JOGMEC), MC, Bandung Institute of Technology (ITB), a national university in the
Republic of Indonesia, and PT Panca Amara Utama (PAU) have conducted a joint study on Carbon Capture and Storage (CCS) andcarbon dioxide utilization for clean fuel ammonia production in Central Sulawesi, the Republic of Indonesia.

Agreement with Denbury on CO2 Transport and Storage Operations for Fuel Ammonia Production
MC has reached an agreement with the Texas-based independent energy company Denbury Inc (“Denbury”) on the key term-sheet of
CO2 transport and storage operations, via Denbury’s wholly owned subsidiary Denbury Carbon Solutions LLC. The business is in linewith MC’s aim to commence production of fuel-use ammonia in the US Gulf of Mexico (“GoM”). MC aims to produce one million tons offuel ammonia annually in the US GoM and export to the Japanese market towards the late 2020s. The estimated CO2 volume to be
captured from the ammonia facility is maximum 1.8 million metric tons per annum. Under the terms of our agreement with Denbury, thecaptured CO2 will be either sequestered underground via Denbury’s EOR＊ or CCS, which Denbury plans to develop in the future. The
term sheet contemplates an initial period of 20 years, with the ability to extend further.
＊ EOR: Enhanced Oil Recovery.

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SocialGovernanceHydrogen Energy
The use of hydrogen as a source of energy is gaining attention as a low-carbon alternative. MC participated in the New Energy andIndustrial Technology Development Organization (NEDO)-subsidized Demonstration of Unused Energy-Based Hydrogen Supply Chain
Using Organic Chemical Hydride Method＊1 project, which came to a successful conclusion in December 2020, and have now entered
the commercial project development phase. MC is currently proactively working to establish an international hydrogen value chain.
＊1 This demonstration project is an initiative for the establishment of the mass transportation of hydrogen from overseas and supply technology that will
be necessary for the full-scale introduction of hydrogen power generation for the power generation business in 2030 to realize phase two of METI's
Strategic Road Map for Hydrogen and Fuel Cells (published in June 2014, revised edition published in March 2016). In 2020, MC implemented ademonstration project transporting hydrogen from Brunei to Japan. Based on the Paris Agreement that was adopted at COP21 in December 2015, with
the increasing need to reduce future greenhouse gas emissions, MC will contribute to the realization of utilizing hydrogen, which does not emit CO2
during combustion, in the field of large-scale power generation.

Realization of International Hydrogen Energy Supply Chain
In March 2020, MC along with five private Singaporean companies (City Energy (formerly City Gas), Jurong Port, PSA Corporation
Limited, Sembcorp Industries and Singapore LNG Corporation) and Chiyoda Corporation executed a memorandum of understanding(MOU) aimed at the realization of a sustainable hydrogen economy in Singapore in the presence of Singapore government officials.
In addition, MC executed an MOU in July 2021 with the Port of Rotterdam Authority, Koole Terminals and Chiyoda for the joint study ofcommercial-scale imports of hydrogen to the Port of Rotterdam. In October 2021, MC signed an MOU with Sembcorp and Chiyoda toestablish a strategic alliance aimed at exploring the feasibility and implementation of a commercial-scale, decarbonized hydrogen supply
chain in Singapore, and have been engaged in specific discussions and studies. As a result, in October 2022, a new agreement wasreached to further examine the technical and commercial aspects of the hydrogen supply chain business and to accelerate detailed
studies toward a final investment decision, including a conceptual plant design.
Chiyoda Corporation’s hydrogen storage and transportation technology (SPERA Hydrogen™＊2) is expected to play a key role in MC’s
aforementioned initiatives.
MC continues to discuss, consider and take concrete steps for the realization of a cost-effective, international hydrogen energy supply
chain together with the above companies and others who have shown significant interest in SPERA Hydrogen™ technology and related
business opportunities.
＊2 SPERA Hydrogen™: Hydrogen is converted into methyl-cyclohexane (MCH) through a chemical reaction with toluene and is then stored andtransported. The MCH will go through a dehydrogenation process where the hydrogen is separated from the MCH, leaving the toluene to be reused.
As both toluene and MCH are stable and can be transported in a liquid state at ambient temperature and pressure SPERA Hydrogen™ technology isviewed as one of the important solutions for tackling the difficulties of hydrogen transportation.

Chiyoda’s SPERA Hydrogen™

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MOU to Collaborate on Hydrogen Plans in Alberta, Canada
MC and Shell Canada Products, by its managing partner, Shell Canada Limited (Shell Canada) have signed a MOU relating to the
production of low-carbon hydrogen through the use of CCS near Edmonton, Canada. MC aims to build and start-up the low-carbonhydrogen facility near the Shell Energy and Chemicals Park Scotford towards the latter half of this decade, and Shell would provide CO2
storage via the proposed Polaris CCS project.

Sustainable Aviation Fuel (SAF)
Joint Feasibility Study Aimed at Commercializing SAF and Other Next-generation Fuels in JapanENEOS Corporation and MC have agreed to undertake a joint feasibility study aimed at commercializing SAF and other next-generation
fuels in Japan.
By leveraging ENEOS’ manufacturing technologies and distribution networks, together with MC’s global expertise in raw material
sourcing and marketing capabilities, MC will formulate a basic strategy that takes into account the maturity of various SAF manufacturing
technologies and the necessary time for commercialization. ENEOS and MC will proceed with the study based on the following three
approaches:(1) Developing sustainable feedstock derived from bio-based raw materials(2) Producing SAF with newly emerging techniques(3) Building a supply chain for next generation fuels, with a focus on SAF

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CCUS
MC recognizes that Carbon Capture and Storage, and Carbon Capture Utilization and Storage (CCUS) will play a major role in achieving
the goals of the Paris Agreement.The International Energy Agency (IEA) has stated that CCUS must be used to reduce roughly 1.5
billion tons of CO2 emitted in 2050 in order to achieve the 1.5°C target. CCUS is a field that spans multiple industries, from those thatare the source of CO2 emissions to those that produce end products such as fuel and chemical as well as construction materials.
Therefore, MC recognizes CCUS as a business opportunity to demonstrate its comprehensive capabilities as a company that interacts
with many industries. To take advantage of this business opportunity, MC will promote the commercialization of CCUS.
For CCU, MC is working on short-term initiatives in the construction materials field where there are already commercialized products(such as concrete) and technology. It is also working on medium to long term initiatives in the petroleum products and chemicals field
where further research and development is necessary for demonstration (such as jet fuel and synthetic fibers). Through the above
initiatives, MC is developing new businesses and technology through investment and collaboration with various domestic andinternational corporations. In addition, MC is accelerating efforts to build overseas CCS value chains, etc.
Furthermore, the IPCC* identifies that in order to achieve the 1.5°C target, in addition to reducing CO2 emissions from sources, Carbon
Dioxide Removal, which removes CO2 remaining in the atmosphere, is necessary. MC will grasp this as a business opportunity andpromote initiatives utilizing various technologies, including Direct Air Capture (DAC), a technology that captures CO2 directly from theatmosphere, which is considered to be a typical method of Carbon Dioxide Removal.
* Intergovernmental Panel on Climate Change. The IPCC is an intergovernmental organization established by the United Nations Environment Programme(UNEP) and the World Meteorological Organization (WMO) that collects and organizes scientific research regarding climate change.

Initiatives in the Field of Construction Materials
MC is working in the field of construction materials where technological maturity is high and where commercialized projects alreadyexist. There are many kinds of construction materials, such as ready-mixed concrete, precast concrete (concrete block products) andaggregates (raw material of concrete). As a suitable CO2 reduction method is required for each, MC aims for the maximum reduction in
CO2 by approaching each product with a combination of various technologies and collaborations with corporations (Green Concrete
Concept).

Blue Planet
Blue Planet is an US-based start-up company that possesses technology for producing aggregates—the raw material for concrete—by
fixing CO2 to unused and scrap concrete from industrial waste. Blue Planet's CO2-utilization aggregate was used in the renovation of
San Francisco International Airport and is addressing industry issues of both CO2 emissions and unused and scrap concrete. MC isfinancing Blue Planet and is responsible for the technology's domestic and international commercialization, while it has also signed acollaboration agreement with Blue Planet to commercialize their CO2-utilization technology. BLue Planet is currently conducting ademonstration project for CO2-utilization technology in California's Silicon Valley region and is subsequently planning full-scalecommercial development.

Process flow of Blue Planet's technology

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CarbonCure
CarbonCure Technologies Inc. is a Canadian company that possesses technology for fixing CO2 into concrete building materials. MC
has made an equity participation in CarbonCure and has a business partnership to expand businesses related to CarbonCure's
technology. CarbonCure's carbon recycling technology fixes and utilizes CO2 into fresh concrete during production, reducing CO2
emissions by reducing the amount of cement used.
The strength and dependability of CarbonCure’s concrete is the same as traditional concrete, and it is currently widely usedcommercially, mainly in North America.

Overview of the process from CO2 collection to its use as a building material

1. Emitted CO2 is collected and refined.
2. The refined CO2 is stored at a fresh concrete production plant connected to CarbonCure's facilities.
3. CO2 is injected into the fresh concrete and low-carbon concrete is produced.
4. By using concrete that incorporates CarbonCure's technology, the amount of CO2 emissions from building materials is reduced.

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SocialGovernanceInitiatives in the Petroleum and Chemicals Field
With CCUS as a medium- to long-term initiative, MC is addressing the petroleum and chemicals field where further research anddevelopment is required. Specifically, MC, along with the University of Toyama, Chiyoda Corporation, Nippon Steel Engineering Co., Ltd,
Nippon Steel Corporation and HighChem Company Limited, were chosen in NEDO’s publicly-offered commissioned projects, “Carbon
Recycling and Development of Next-Generation Thermal Power Generation/Development of Technology for the Reduction of CO2
Emissions and the Effective and Practical Use of CO2/Development of Technology for the Use of CO2 in Chemical Materials,” and theorganizations are working on the research and development of a method to produce paraxylene, which is a material used in clothing and
PET bottles, from CO2. In this initiative, MC, as a company with one of the world's highest transaction volumes in paraxylene, is
responsible for testing and reviewing commercial feasibility using its global network. Due to its composition, paraxylene can fixate CO2
while limiting the amount of hydrogen as material. MC recognizes that the potential for CCU paraxylene is significant, both from an
economic and environmental perspective. It is expected that demand for clothing will rise with the increase in the global population.
Therefore, to meet the demand for polyester that cannot be covered with recycling alone, MC aims to substitute existing petroleumbased paraxylene with sustainable paraxylene produced from CO2.

CCUS at Tangguh LNG ProjectMC, as a joint venture partner of the Tangguh LNG Project in Papua Barat Province, Indonesia, led by bp, the project operator,
proceeded with a Plan of Development (POD) that includes a CCUS project. This POD was approved by SKK Migas (Special Task
Force for Upstream Oil and Gas Business Activities Republic of Indonesia) in 2021, and aims to recover a cumulative total of
approximately 25 million tons of CO2 emitted from natural gas production and reduce CO2 emissions by reinjecting and storing it in the
Vorwata gas field under production, while improving natural gas production efficiency and increasing its production (known as Enhanced
Gas Recovery, or CO2-EGR). As a result, the total CO2 emissions of this project can be halved. The Front-End Engineering and Design(FEED) started in 2022, and the natural gas production and CCUS project are estimated to start from 2026, subject to a final investment
decision.

LNG facility

Project location map

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SocialGovernanceInitiatives Toward Establishing Overseas CSS Value Chains
MC is conducting a joint study with Nippon Steel Corporation and ExxonMobil Asia Pacific Pte. Ltd. on the establishment of overseas
CCS value chains. Nippon Steel will conduct research on the capture of CO2 emissions from its domestic steelworks and evaluate thenecessary infrastructure development required, while ExxonMobil will study CO2 storage opportunities in Australia and the Asia-Pacificregion, including Malaysia and Indonesia. MC will assess CO2 transportation overseas and the development of CCS value chains.

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Carbon Credit
Collaboration with South Pole on the Carbon Credit Trading Business Based on
CCUS and Other Innovative Carbon Removal Technologies
MC and the Swiss company South Pole, which is one of the world’s largest carbon credit developers, have jointly established the
NextGen CDR AG (“NextGen”) as a business venture to handle the procurement and sales of carbon credits derived from Carbon
Capture, Utilization and Storage (CCUS) and other innovative carbon removal technologies.
In order to achieve the goals set forth in the Paris Agreement and keep global warming below 1.5°C, it is considered crucial to adopt
carbon removal technologies such as CCUS. However, there are multiple challenges that need to be addressed before thesetechnologies can be implemented in society on a large scale, including further technological innovation and cost reduction. MC is
working to solve these challenges by providing a new source of revenue through credit sales to credit suppliers. To achieve this goal, weare bringing together carbon credit buyers and establishing long-term carbon credit offtake agreements, with the aim of promoting thewidespread implementation of these technologies, which are still in their infancy.
Overview of Project (NextGen CDR AG)

Regeneration Project/Investment in Australian Integrated Carbon Pty Ltd
MC and Nippon Yusen Kabushiki Kaisha (NYK) have jointly acquired a 40% interest in Australian Integrated Carbon Pty Ltd (AIC), whichis engaged in the sale of carbon credits. The credits are obtained through CO2-sequstrations achieved in the regrowth of Australia’s
native forests through a process called human-induced regeneration, which is an established methodology in Australia. It employs newland-management practices to facilitate the regeneration of native woodlands that have been lost over the past few centuries due toclearing and overgrazing. The amount of CO2 stored in the regenerated forests is officially certified as Australian Carbon Credit Units by
the Australian Government. AIC aims to contribute to capturing up to 5 million tons of CO2 emissions per year, and a cumulative total of
100 million tons by 2050,through its growing portfolio.

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Other Low-Carbon/Decarbonized Businesses (Green Logistics,
Green Buildings, etc.)
We will make the most of our vast connections across various industries, and starting with green logistics and green buildings, we will
promote carbon reductions and decarbonization through businesses in various fields.

Participation in Breakthrough Energy Catalyst Program to Accelerate theApplication of Decarbonization Technologies in Society
MC is the first company in Asia to participate in Breakthrough Energy Catalyst (BEC), a program dedicated to accelerating theapplication of innovative decarbonization technologies in society.
BEC is a brand new model that was launched as part of Breakthrough Energy, a network of initiatives founded in 2015 by global
philanthropist Bill Gates. The BEC program provides investment and other support for individual projects based on new decarbonization
technologies for which research and development have already been completed.
MC is active in the renewable energy field and has begun to explore the introduction of next-generation energy sources, such ashydrogen, ammonia, and methanation. We recognize the need to use new technologies and innovations to meet the global challenge oftransitioning to a carbon-neutral society.
In addition, BEC acts as a ‘Catalyst’, organically linking funds from private sector partners and philanthropic organizations, product offtake support for consumers of green products, and assistance from government agencies. Through these activities, BEC is establishinga framework to support the scaling up of projects based on innovative decarbonization technologies that are nearing commercialization,
contributing to the realization of a carbon-neutral society.
The current five focus areas for BEC are (1) clean hydrogen production (and related infrastructure), (2) long-duration energy storage(LDES), (3) sustainable aviation fuels (SAF), (4) direct air capture (DAC), and (5) green manufacturing industries (steel, cement,
plastics, etc.). In the future, BEC may expand its focus to include other technologies that are also important for decarbonization. MC also
considers these technologies vital to its own EX Strategy and its Roadmap to a Carbon-Neutral Society.
Our participation in BEC will allow us to support the adoption of innovative technologies that will accelerate the transition to a carbonneutral world and contribute to further reductions in environmental impact without compromising people’s well-being.
MC will contribute to the transition to a carbon-neutral society by making full use of the expertise and networks that it has cultivated inJapan and throughout Asia to collaborate with other BEC partner companies who represent a broad range of industries, including steel,aviation, and finance.

Demonstration Project of Compact LNG Filling Facilities for LNG Trucks in Hokkaido
MC and Air Water Inc. are jointly conducting a demonstration experiment in Hokkaido using fuel-heavy LNG-powered trucks (“LNG
trucks”) and compact portable LNG filling facilities (“LNG filling boxes”).
In the transportation sector, it is difficult for heavy-duty trucks to reduce CO2 emissions by switching to electric vehicles (EV)/fuel cellvehicles (FCV) due to issues such as ensuring sufficient cruising range, securing loading capacity, and fuel supply time. Meanwhile,owing to their status as next-generation fuel trucks with a cruising range in excess of 1,000km and an expectation of over 10% reduction
in CO2 emissions compared to conventional diesel trucks, LNG trucks are seen as a viable solution as we transition to a decarbonizedsociety in the future.
These LNG trucks have driven a cumulative total of over 1.3 million kilometers since the start of a demonstration experiment in April
2022. In November 2022, CO2 emissions were reduced even further by blending the fuel with liquefied bio-methane purified fromlivestock manure-based biogas.
We will continue to participate in this demonstration experiment with the goal of introducing LNG trucks into society as a way of reducing
CO2 emissions resulting from heavy-duty truck logistics.

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Smari Business: Promoting Delivery Boxes by Effectively Utilizing Return Journeys
from Existing Logistics Networks
The e-commerce market is expanding year after year due to changes in Japan’s social environment, such as the declining birthrate,
aging population, the increase in the number of double-income households and the spread of COVID-19. Furthermore, while the volumeof goods continues to increase, labor shortages are becoming a serious issue for logistics.
In cooperation with its subsidiary Lawson, Inc., in April 2019, MC began the service Smari, which uses Lawson's existing logistics
network to accept non-face-to-face shipment of products sold on online flea markets, etc., as well as return and rental items, which are
increasing with the expansion of the e-commerce market. As of 2023, this service has expanded to roughly 3,000 Lawson stores in theTokyo, Kansai and Chubu regions, and has also been expanded to include locations such as stations and so on.
At around 14,500 Lawson stores across Japan, which are the main locations for Smari, products are delivered around seven to eighttimes every day from the dedicated distribution center. SMARI is an initiative where drivers who have finished their delivery pick up
packages from the delivery boxes and deliver them using their truck's spare space. Smari is an eco-friendly business model that limits
new GHG emissions by using the existing logistics network's return trips. Also, as it utilizes the existing logistics network, there is noneed for additional employees. As it is a system where the shipment process is completed without face-to-face contact, stores can
expect a reduction in the time at checkouts. Users do not have to complete a package slip or wait at the cash register and can easily
complete the posting procedures in under a minute. Simultaneously, e-commerce companies and other shippers can expect an increasein customer satisfaction due to diversification in the methods for returning and posting products.
Since 2023, MC has been working in partnership with delivery box manufacturers to develop a new service that will allow customers tosend packages from their home delivery boxes. By making it easier to ship and return packages from customers's homes, as well as tofurther promote the adoption of delivery boxes, we will help to address various societal and environmental issues, including the problems
that are expected to occur in Japan's logistics sector in 2024.

Smariposting process
Smari Box

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SocialGovernanceDigital Platform for the Effective Implementation and Management of GHG Emission
Reduction Initiatives
In June 2022, MC's affiliate company, Olam Group Limited (Olam), officially launched Terrascope, an end-to-end smart carbon
management platform that enables companies to calculate and measure the GHG emissions associated with business activities as wellas manage their initiatives to reduce emissions. Terrascope has been adopted on a global basis, including in the Japanese market,
where Olam officially began providing service sin June 2023. One of the key features of Terrascope is the improvement of efficiency
through digitization, such as the rapid and accurate calculation of Scope 1, 2, and 3 GHG emissions to identify potential hotspots
through AI-based smart systems. Terrascope is expanding to industries and sectors beyond Olam's core business of food ingredients,
basic foods, and living essentials. As one example in Singapore, the company has started to work with the country's largest bank, DBS
Bank. Please visit the company’s website for more information on its initiatives

https://www.terrascope.com/

Attaining Real Estate Environmental Certification for Private Fund and Private REITs
Management Businesses
Diamond Realty Management Inc. (DREAM)
DREAM, an MC subsidiary that forms and manages private real estate funds for domestic and international investors, has formulated a
Sustainability Vision (vision for 2030) to meet future stakeholder needs as a real estate management pioneer, and to continue to be a
corporation that contributes to the conservation of the global environment and sustainable economic and social development. DREAM is
implementing sustainability management that aims to promote a real estate management business that considers people andorganizations as well as the global environment and society.
DREAM Private REIT Inc. (DPR) has a top-class asset size in Japan focused mainly on logistics centers. For the 2023 GRESB*1 realestate assessment, DPR was awarded the highest possible rating of “5 Stars,” as well as its 6th consecutive “Green Star” foroutstanding performance.
DREAM has acquired multiple real estate environmental certifications for the properties owned by the private funds and private REITs it
manages, with CASBEE Real Estate Assessment Certification*1 ,BELS Certification*2 ,Tokyo Metropolitan Small to Medium Scale Low
Carbon Model Building and ResReal/ResReal Flood Certification*3, and ResReal Flood*4 status having been attained by the private
funds and private REITs managed by DREAM.
By managing real estate, DREAM will continue to contribute to maximizing society's well-being in the future.

102

Environment

SocialGovernance*1 GRESB“GRESB” refers both to an annual benchmarking assessment and management organization used to evaluate the environmental, social, andgovernance (ESG) data of real estate companies and funds. GRESB was established in 2009 by a group of major European pension funds who played
leading roles in the launch of the Principles for Responsible Investment (PRI). While GRESB originally stood for “Global Real Estate Sustainability
Benchmark,” it has since come to be used as a general term due to the scope of GRESB assessments having expanded to encompass areas such as
infrastructure.
*1 CASBEE Real Estate Assessment Certification
Comprehensive Assessment System for Built Environment Efficiency (CASBEE) is a method for evaluating and rating buildings' environmental
performance. The system comprehensively assesses buildings' environmental performance, including aspects that reduce environmental impacts suchas energy-efficiency, resource conservation, recycling efficiency and considerations for the surrounding landscape.
*2 BELS Assessment
Building-Housing Energy-efficiency Labeling System (BELS) is used for buildings that require such information to be provided to real estate business
operators and other such parties under the Act on the Improvement of Energy Consumption Performance of Buildings (Building Energy Efficiency Act),
which came into force in April 2016.
*3 Tokyo Metropolitan Small- to Medium-Sized Low-Carbon Model Building
Tokyo Metropolitan Small- and Medium-Sized Low-Carbon Model Buildings are those classified as A1 or higher as per the Low-Carbon Building
Benchmark, the standard for buildings with low CO2 emissions. This standard was published by the Tokyo Metropolitan Government in May 2012 toenable the evaluation of CO2 emissions in the real estate market. The Tokyo Metropolitan Government publishes the names of small- and medium-sizedtenant buildings which are both a) classified as A1 or above (a measure of low CO2 emissions) and b) are actively engaged in energy conservation as"Small- to Medium-Sized Low-Carbon Model Buildings."*4 ResReal Flood
ResReal is a certification offered by the Japan Real Estate Institute. It is Japan’s first certification program based on the quantification and visualizationof the resilience (strength, flexibility, recovery potential, and resistance) of properties against natural disasters. Properties are certified on the basis ofrobustness (location and building), redundancy, readiness, and substitutability. ResReal factors in both “hard” resilience factors, such as a property’s
location and building performance, as well as “soft” factors, including stockpiles of emergency supplies and disaster preparedness training. The flood
damage version of ResReal comprehensively quantifies the resilience of a property against floods.

Diamond Realty Management Inc. Green Building (As of the end of November 2023)
DREAM Private REIT Inc.
Certifications Received

GRESB

Rank

Year

Green Star

2018, 2019, 2020, 2021, 2022, 2023

4 Star (Comparative Assessment)

2019, 2020, 2021

5 Star (Comparative Assessment)

2022, 2023

Sector Leader (Diversified, Asia, Non-Listed Sector)

2020, 2021

103

Environment

SocialGovernanceDREAM's Portfolio
Certifications Received

CASBEE

BELS

Tokyo Metropolitan Small to
Medium Scale Low Carbon
Model Building

The ResReal Flood

Evaluation
Rank

Property

Gross Floor Area（m2）

DPR Hiratsuka Logistics Center

Rank S

29,067.95

MCUD Kawasaki I

Rank S

89,939.54

MCUD Zama

Rank S

18,487.67

Kobe Minato Warehouse

Rank S

70,109.21

Logistics Park Noda-Funakaka

Rank S

111,977.23

Daikokucho Logistics Center

Rank S

89,316.19

AEON MALL Kobe Kita

Rank S

128,050.62

SG Reality Maishima

Rank S

95,539.04

Kawasaki Mizue Logistics Center

Rank S

102,014.46

PUZZLE GINZA

Rank S

2,399.90

MUZA Kawasaki (Office Part)

Rank S

114,322.47

Ichikawa Chidoricho Logistics Center

Rank S

66,914.18

MCUD Honmoku

Rank S

66,523.47

SLOGI Ichikawa

Rank S

13,504.24

Funabashi Logistics Center

Rank S

42,180.24

MCUD Tsurugashima

Rank S

20,873.65

MCUD Chiba-kita

Rank S

24,716.85

DPR Noda Logisgics Center

Rank S

38,853.76

Honmoku Logistics Center

Rank S

26,784.82

DPR Ebetsu Logistics Center

Rank S

17,749.93

LOGIPORT Nagareyama B

Rank S

133,414.76

ROYAL PARKS TOWER MINAMISENJYU

Rank S

47,424.89

MCUD Tsurugashima★★★★★

20,873.65

Honmoku Logistics Center★★★★★

26,784.82

Funabashi Logistics Center★★★★★

42,180.24

Shinyamashita Logistics Center★★★★★

53,233.20

Shinanounyu Urayasu Logistics Center★★★★★

14,208.00

MCUD Kawasaki I★★★★★

89,939.54

Ichikawa Chidoricho Logistics Center★★★★★

66,914.18

Kawasaki Mizue Logistics Center★★

102,014.46

Logistics Park Noda Funakata★★★★★

111,977.23

MCUD Kawasaki Ⅱ★★★★★

23,767.56

MCUD Zama★★★★★

18,487.67

Kobe Minato Warehouse★★★★★

70,109.21

DPR Hiratsuka Logistics Center★★★★★

29,067.95

Daikokucho Logistics Center★★★★★

89,316.19

Nanko Logistics Center★★★★★

40,767.27

SG Reality Maishima★★★★★

95,539.04

MCUD Chiba-kita★★★★★

24,716.85

MCUD Honmoku★★★★★

66,523.47

DPR Noda Logisgics Center★★★★★

38,853.76

MCUD Ageo★★★★★

92,277.52

LOGIPORT Nagareyama B★★

133,414.76

Boucheron Ginza Building

A4

4,339.92

PUZZLE GINZA

A1-

2,399.90

Summit Ojisakuradadori

A38,018.11

Espoir Omotesando

A37,157.32

Olympic Minowa

A2+

6,379.35

Logistics Park Noda Funakata★★

111,977.23

Funabashi Logistics Center★★★

42,180.24

104

Environment

Social【Kobe Minato Warehouse】/CASBEE、BELS【Muza Kawasaki】/CASBEE【Daikokucho Logistics Center】/CASBEE、BELS

Governance【Espoir Omotesando】/Tokyo Metropolitan Small- to Medium-Sized Low-Carbon
Model Building

Reference:

Diamond Realty Management Inc. HP https://www.mc-dream.com/english/

105

Environment

SocialGovernanceBeyond Materials Corporation, a Specialized Strategy and Engineering Service
Provider to Support Materials Suppliers Area
As a result of changes in the needs of society and industry, including the move to a decarbonized world, requirements for new productdesigns in the electric vehicle (EV) and lithium-ion battery (LiB) sectors are increasing in their sophistication and diversity. This issuddenly raising the expectations for functional materials used for these applications. In October 2022, MC and FEV Consulting GmbHestablished Beyond Materials Corporation (Beyond Materials) based on their shared values to contribute to the realization of asustainable society. Through the joint venture company Beyond Materials, MC will provide marketing and product development services
to the materials industry. By doing so, it will serve as a bridge between users of materials in the automotive and other sectors along with
contributing to global and sustainable growth in the materials industries. The project also furthers Beyond Materials' aim of contributing
to sustainable growth in global materials markets and helping MC to achieve its mission to build net-zero, circular economies.

Building net-zero, circular economies through the provision of functions in thematerials markets

106

Environment

SocialGovernance

Other Data and Report
Other Reference Data
Cogeneration Projects(As of September 30, 2023)
Country
Japan

Power Plant

Fuel

MCKB Energy Services

Net Equity Basis(Net, 10,000 kW)

Gas, Biogas

3.2

Japan

MC Kawajiri Energy Services

Gas

3.8

Japan

MC Shiohama Energy Services

Gas, Coal

9.8

Japan

MCJ Energy Services

Gas

2.2

Japan

Gonoike Bioenergy Services

Biomass exclusive combustion

1.1

Japan

MCM Energy Services

Coal, Biomass mixed combustion

5.2

Japan

MC Hokuetsu Energy Services

Gas

2.0

Japan

Mizushima Energy Center

Coal

5.6

Gas-Fired Projects(As of September 30, 2023)
Country

Net Equity Basis(Net, 10,000 kW)

Power Plant

USA

Frontier

23.2

USA

Wildflower/Indigo

13.6

USA

Wildflower/Larkspur

9.4

USA

Mariposa

20.0

USA

Sentinel

42.4

USA

CPV Valley

36.0

USA

Westmoreland

35.3

MexicoTuxpan II

24.8

MexicoTuxpan V

24.8

The Netherlands

Gas generation owned by ENECO

75.4

Jordan

IPP-3

20.1

Qatar

Facility D

50.4

ThailandGas generation owned by EGCO

22.2

Japan

Naoetsu Energy Center

10.7

Coal-Fired Power Businesses(As of September 30, 2023)
Country

Power Plant

Fuel

Net Equity Basis(Net, 10,000 kW)

ThailandCoal-fired power projects owned by EGCO

Coal

8.3

TaiwanHo-Ping

Coal

26.4

Japan

Nippon Paper Ishinomaki Energy Center

Coal
Biomass Co-generation

4.4

107

Environment

SocialGovernance

Climate reports
Transparency in climate action is key. To effectively engage with our stakeholders and inform them of our climate initiatives andprogress, MC publishes its value creation process along with both financial and non-financial performance indicators in our Integrated

Report.

CDP reporting
MC actively disseminates information about its ESG-related initiatives to its various stakeholders around the world. CDP is a UK-based
international enironemental NGO, and conducts activities to promote corporate environmental information disclosure at the request of
institutional investors around the world. It holds the world’s largest database of corporate disclosures on climate change initiatives, andsince FY2003, MC has responded the CDP Climate Change, which evaluates the climate change management of companies.
 CDP Climate Change 2023 Response (PDF:783KB)

TCFD reporting
MC supports TCFD Recommendations and actively discloses climate-related financial information through various channels, including
CDP and its Sustainability report, and continues to improve such disclosure.

MC is proud that our President and CEO is a founding member of the TCFD Consortium of Japan, a platform established for financial
institutions and corporations to pursue climate-related financial disclosures recommended by the TCFD. Additionally, the General
Manager of MC’s Sustainability Department served as a TCFD member from 2018 to 2021, and a plannning committee member of the
TCFD consortium thereafter MC has been actively working to expand awareness of the TCFD and promote activities related to TCFD.
For an overview of how MC is meeting recommendation, please see TCFD overview

108.

Environment

SocialGovernance

Environment

Natural Gas and LNG-related Data
Equity Share of Oil and Gas Upstream Production
MC’s equity share of oil and gas upstream production is as shown below. GHG emissions from burning natural gas relatively lower
compared to when burning other fossil fuels, and the demand for natural gas is forecasted to grow in line with the transition to a lowcarbon and decarbonized society. Accordingly, MC has positioned natural gas as a core business. Currently, natural gas accounts forapproximately 85% of MC’s equity share of oil and gas production.

Equity Share of Oil and Gas Upstream Production (Annual Average)*1

MC’s Reserves (2P*3)(As of the end of December 2022)
A total of 1.613 billion barrels*1, *2*1 Oil equivalent, including non-consolidated subsidiaries and affiliates*2 Participating interest equivalent. A part of reserves based on MC's in-house methodology*3 Confirmed reserves + estimated reserves

109Environment

SocialGovernance

Involvement in LNG Projects
Existing Projects in Production

Project

Beginning of
Production

Annual Production
Capacity(Million Ton)
Total

Buyer

SellerShareholding

MC’sParticipation

MC’s Share

Brunei

1972

7.2

1.8

25%

Mainly Asia, with afocus on the Far East

Brunei LNG

Brunei Gov.(50%),
Shell(25%), MC(25％)

1969

Malaysia I(Satu)

1983

8.4

0.42

5%

Tokyo Gas, Saibu
Gas, etc.

Malaysia
LNG

PETRONAS(90%),
Sarawak Gov.(5%),
MC(5%)

1978

0.96

Tohoku Elec., Tokyo
Gas,
Shizuoka Gas,
10%
Sendai City Gas
Authority, ENEOS
Holdings, etc.

Malaysia
LNG

PETRONAS(80%),
Sarawak Gov.(10%),MC(10%)

1992

1.41

JERA, Tokyo Gas,
Shizuoka Gas., Toho
Gas, Kansai Elec.,
8.33%
Osaka Gas,
Guandong Dapeng
LNG

NWS JV

Woodside(33.3%),
Shell, bp, Chevron、
MIMI [MC/ Mitsui &Co.=50:50], 16.7%
respectively

1985

0.20

Osaka Gas, Korea
2.77% Gas, Itochu Corp., bp,
etc.

Oman LNG

Oman Gov.(51%),
Shell(30%),
TotalEnergies(5.54%),
MC(2.77%), etc.

1993

0.13

Osaka Gas, Mitsui &4%Co., etc.

Qalhat
LNG

Oman Gov.(46.8%),
Oman LNG(36.8%),
Naturgy(7.4%), OsakaGas(3%), MC(3%),
etc.

2006

0.96

JERA, Tokyo Gas,
Kyushu Elec., Toho
Gas, Hiroshima Gas,
10%
Tohoku Elec., Saibu
Gas, Osaka Gas,
Korea Gas, etc.

Sakhalin
EnergyLLC

Gazprom(50%),
Sakhalin Energy
LLC(27.5%), Mitsui &Co.(12.5%), MC(10%)

1994*

Tangguh JV

bp(40.2%), MI Berau[MC/ INPEX 56:44](16.3%), KG Berau[MIBJ (MC/ INPEXCorporation 56:44)
16.5%, Mitsui & Co.
20.1%, JX Nippon Oil& Gas Exploration
14.2%, JOGMEC
49.2%](8.6%), etc.

2001

PT. DonggiSenoro LNG

Sulawesi LNG
Development Limited[MC/Korea Gas=75:25](59.9%), PT Pertamina
Hulu Energi(29%), PT
Medco LNG
Indonesia(11.1%)

2007

Chevron(64.136%),
KUFPEC(13.4%),
Woodside(13%),
Kyushu Elec.(1.464%),
PEW(8%; of which MC
holds 39.7%)

2012

Sempra(50.2%),
Japan LNG Investment[MC/ NYK=70:30](16.6%) Mitsui & Co.
(16.6%),
TotalEnergies(16.6%)

2012

Malaysia II(Dua)

North West
Shelf

Oman

QalhatRussiaSakhalin 2

Indonesia
TangguhIndonesia
Donggi Senoro

Wheatstone

Cameron

1995

1989

2000

2005

Oil: 2008(year-roundproduction),
LNG:2009

2009

2015

2017

9.6

16.9

7.1

3.3

9.6

11.4

2.0

8.9

1.13

Tohoku Elec., Kansai
Elec., SK E&S,
9.92%
POSCO, Fujian LNG,
Sempra, PLN, etc.

JERA, Korea Gas,
Kyushu Elec., etc.

0.9

44.9%

0.28

Chevron, KUFPEC,
3.17% Woodside, Kyushu
Elec., PEW, etc.

2019

12.0

4.0*3 33.3%*3

Total

96.4

12.19

EquityLifting
Model*2

MC, Mitsui & Co.,
TotalEnergies (Toller)

110

Tolling
Model*2

Business
Contribution *1

Environment

SocialGovernance

Projects under Construction

Project

Beginning of
Production

Annual Production
Capacity(Million Ton)
Total

LNG Canada

Mid 2020’s

Total*1 Business Segment:

Buyer

SellerMC’s
Participation

Business
Contribution *1

MC’s Share

Shell, PETRONAS,
14.0 2.10*4 15%*4 PetroChina, MC,
Korea Gas

14.0

Shareholding

Shell(40%),
PETRONAS(25%),
EquityPetroChina(15%),
Lifting Model*2 Diamond LNG Canada
Partnership (MC 15%),
Korea Gas(5%)

2010

2.10

Investment in exploration &development,

Investment in liquefaction
plant,

Marketing and/ or importagent,

Shipping*2 LNG is procured and sold by each company according to either the ratio of interest (Equity Lifting Model) / or equity in the liquefaction contract (Tolling
Model) respectively.
*3 MC's offtake volume & radio based on the tolling agreement with Cameron LNG.
*4 MC's offtake volume & radio.

111

Environment

SocialGovernance

Environment

Renewable Energy Related Data
List of Renewable Energy Businesses(As of September 30. 2023)
Country

Power Plant

Fuel

Net Equity Basis(Net, 10,000 kW)

United States

NexampSolar power

57.5

MexicoEolica del Sur

Wind power

19.8

Solar power
The Netherlands

Other renewable energy projects owned by ENECO

Wind power

155.5

Offshore wind power
Biomass
JordanShams Ma'an

Solar power

1.8

Philippines

NLREC

Wind power

2.2

IndonesiaStar Energy

Geothermal

4.8

Solar power
Wind power
Thailand and others

Other renewable energy projects owned by EGCO

Geothermal

8.1

Hydraulic power
Fuel cell biomass
Thailand

Impact Solar Group(ISL/ ISGT)

Solar power

3.3

Malaysia

Gebeng Solar

Solar power

0.3

Japan

Kumamoto Aso Solar

Solar power

0.2

Japan

Onahama Solar

Solar power

0.6

Japan

Onahama/ Izumi Solar

Solar power

0.3

Japan

Nippon Paper Mega Solar Komatsushima

Solar power

1.7

Japan

Tahara Solar

Solar power

5.3

Japan

Nagasaki Tadewara Mega Solar

Solar power

0.8

Japan

Higashi Nozaki Solar Energy

Solar power

0.9

Japan

Kochi Solar

Solar power

2.2

Japan

JAMC Solar

Solar power

2.3

Japan

Akita Katagami wind farmWind power

2.9

Japan

MCPV

Solar power

0.3

Japan

Suzukawa Energy Center

Biomass

5.9

Japan

Aioi Biomass

Japan

MCKB Energy Services

112

Biomass

7.8

Solar power

1.4

Environment

SocialGovernance

List of Offshore Power Transmission Businesses(As of September 30. 2023)
Country

Portfolio asset

Transmission Capacity（10,000kW）

MC's share

Cable route length（km）

Walney 1

18.4

50%

48

Walney 2

18.4

50%

48

Sheringham Shoal

31.5

50%

45

63

50%

55

Burbo Bank Extension

25.8

50%

35

Race Bank

57.3

51%

83

Galloper

35.3

51%

46

Walney Extension

66.0

51%

73

London Array
UK

Hornsea 1

121.8

20%

183

Hornsea 2

138.6

25%

168

113

Environment

SocialGovernance

Environment

Environmental Management
PolicyStructure

Initiatives

Relevant Data

PolicyMC considers addressing sustainability challenges as one of its most important management issues. We have therefore been actively
engaged in promoting a range of initiatives towards preserving the global environment through every aspect of our business. The
cornerstone of these activities is our Environmental Charter, which was established in 1996. The charter clearly outlines our fundamental
stance regarding environmental issues to all of our stakeholders. Based on this charter, MC conducts a variety of activities and strives tocreate and increase environmental value. The charter has been revised as necessary in order to reflect the fact that environmental
issues and awareness are constantly evolving.
MC has established environmental management systems (EMS) that are compliant with ISO 14001, with the President & CEO serving
as the chief officer in charge of EMS. In keeping with the spirit of the Environmental Charter, MC is advancing EMS activities based on
its Environmental Policy.
Specifically, by having the President & CEO manage the targets set the previous fiscal year for both business and office activities,
determine policies for the next year and establish systems for internal deployment, we are striving to continuously enhance and improve
our EMS in harmony with our business activities. We will continue to seek out truly effective initiatives that contribute to our company’ssustainable growth.

MC’s Environmental Policy
MC has established environmental management systems (EMS) based upon its Environmental Charter. By disseminating theEnvironmental Policy set each year by the President & CEO and promoting awareness throughout MC, MC aims to preserve
the global environment and work towards the realization of a sustainable society through its business activities.
【2023 Environmental Policy】
1

Compliance with Environmental Laws and Standards

We will uphold environmental laws and standards in addition to our own environmental commitments.
2

Efforts to Improve the Environment

1. We will make efforts to reduce our greenhouse gas emissions in order to address climate change.
2. We will make efforts to reduce resource and energy consumption.
3. We recognize the importance of biodiversity and will pay close attention to our impact on the natural environment.
3

Continuous Improvement of our EMS

We will strive for continuous utilization and improvement to our EMS in line with our business activities.
4

Disclosure of our Environmental Policy

We will ensure that our Environmental Policy is conveyed to all of our employees, and we will promote understanding throughtraining and dissemination efforts. We will also publicly disclose our Environmental Policy.

114

Environment

SocialGovernanceGreen Procurement Policy
As MC conducts office activities in line with its Environmental Policy, MC is taking the following actions in order to proactively
show consideration for the environment through all types of procurement activities with the aim of reducing its impact on theenvironment. These actions are based on the Green Purchase Guidelines, which lay out in writing green purchase methods.
1. Avoid unnecessary procurement
2. Place emphasis on “environmental consideration” together with function/cost at the time of procurement, and select green
products whenever possible which satisfy the following:(1) Those using primarily recycled/reused raw materials(2) Those which reduce resource and energy costs and have a lower environmental impact throughout the
production/use/disposal lifecycle stages(3) Those which do not use hazardous chemicals, or are making efforts to reduce such substances(4) Those with an established recycling system
3. Make efforts to reduce environmental impact from packing and transport during procurement wherever possible
4. Strive to reuse materials and curb new procurement
Furthermore, the guidelines also stipulate that when selecting products with special procedures required by law (homeelectronics, etc.), MC will confirm whether or not the product takes into account environmental considerations by referencing
catalogues and other sources. Furthermore, when selecting products such as stationery, printing paper and furniture, MC will
also confirm by referencing catalogues and other sources whether the product is certified (with an official mark) as having met
environmental regulations/standards.

115

Environment

SocialGovernance

Structure
At MC, environmental management systems (EMS) are managed by the General Manager of the Sustainability Dept., who serves as theEnvironmental Manager, with the President and CEO of MC serving as the chief officer in charge of EMS. MC encourages theparticipation of all employees in implementing EMS in cooperation with the Group Chief Sustainability Officer of each Business Group,
along with Group EMS Managers and other personnel.

Environmental Management Systems (EMS) Promotion Framework

As of April 1, 2023

116

Environment

SocialGovernanceStatus of ISO 14001 Acquisition
In 1998, MC acquired ISO 14001 certification at its Head Offices. Individual Group companies also comply with ISO 14001 depending on
their individual status.
＊ Certified sites (ISO 14001-certified sites):• Head Offices and three affiliated companies (Mitsubishi Corporation Financial & Management Services (Japan) Ltd., MC Facilities Co., Ltd., MC
Communications Inc.)＊ Ratio of ISO 14001-certified sites: 100%
＊ Scope of registration: Commodity trading and business investment activities

Main MC Group Companies with ISO 14001 Certification
Business Group
Natural Gas Group

Industrial Materials Group

Chemicals Solution Group

Mineral Resources Group

Industrial Infrastructure Group

Name of Company

Business Activities

BRUNEI LNG SENDIRIAN BERHAD

Natural gas liquefaction and LNG sales

PT Donggi Senoro LNG

Natural gas liquefaction and LNG sales

NIPPON ELECTRODE COMPANY, LTD.

Manufacturing and sales of carbon products

Metal One Corporation

Processing, manufacturing, sales and distribution of steel
products

Amfine Chemical Corporation

Manufacturing and sales of plastics additives

POSCO MC MATERIALS Co.,Ltd.

Manufacturing and sales of needle coke

Cape Flattery Silica Mines Pty., Ltd.

Mining, processing and sales of silica sand

Mitsubishi Shoji Chemical Corporation

Marketing of solvents, paints, coating resins and silicones

Mitsubishi Corporation Plastics Ltd.

Marketing of synthetic resin raw materials and products

MC Ferticom Co., Ltd.

Manufacturing of fertilizers

Meiwa Corporation

Trading company

EXPORTADORA DE SAL, S. A. de C. V.

Salt business

Thai Shinkong Industry Corporation Ltd.

Manufacturing and sales of PET resin

Mitsubishi Corporation RtM Japan Ltd.

Mineral resources trading company for Japanese customers

Anglo American Sur S.A.

Mining, processing and sales of copper ore

Chiyoda Corporation

Plant engineering business

Mitsubishi Heavy Industries Compressor International
Corporation

Design, production, packaging, servicing and repair ofturbomachinery parts and products

Nikken Corporation

Construction Equipment & Rental Business

NIKKEN SANGYOReal estate leasing

Mitsubishi Corporation Technos

Sales of machine tools and industrial machinery

MITSUBISHI ELECTRIC DE COLOMBIA LTDA

Elevator business (sales and maintenance)

MITSUBISHI ELEVATOR (SINGAPORE) PTE. LTD.

Elevator business (sales and maintenance)

MITSUBISHI ELEVATOR (THAILAND) CO.,LTD.

Elevator business (sales and maintenance)

Mitsubishi Electric Hong Kong Co., Ltd.

Elevator business (sales and maintenance)

ALSOK Soei Co., Ltd.

Facility management business

Mitsubishi Motors Corporation

Manufacturing and sales of automobiles and automobile parts

PT Mitsubishi Motors Krama Yudha Indonesia

Automobile manufacturing

P.T. KRAMA YUDHA TIGA BERLIAN MOTORS

Import and sales of automobiles

Toyo Tire Corporation

Tire Business, Automotive Parts (Business)

Automotive & Mobility Group117

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Business Group

Food Industry Group

Consumer Industry GroupPower Solution GroupUrban Development Group

SocialGovernanceName of Company

Business Activities

Aji Japan Co., Ltd.

Manufacturing and sales of food ingredients and seasoning
preparations

Ajiryo Food Technology Co., Ltd.

Manufacturing and sales of seasoning ingredients

Itoham Yonekyu Holdings Inc.

Manufacturing and sales of processed meat products andprocessed / precooked food products,

Salad Club Co., Ltd.

Manufacturing and sales of packaged salads

Nihon Shokuhin Kako Co., Ltd.

Manufacturing of corn starch and related processed products

Nitto Fuji Flour Milling Co., Ltd.

Flour miller

Cermaq Group AS

Salmon farming business

DECCAN FINE CHEMICALS （INDIA） PRIVATE LI

Contracted manufacturing of agrochemical intermediates andactive ingredients

NITTO－FUJI INTERNATIONAL VIETNAM CO.,LTD

Manufacturing and sales of mixed flour

NITTO－FUJI INTERNATIONAL THAILAND CO.,LTD

Manufacturing and sales of mixed flour

OLAM GROUP LIMITED

Production, collection, processing, trade, and port operations
for agricultural products

PT. FERMENTECH INDONESIA

Manufacturing and sales of ingredients for foods andseasonings

NISSIN FOODS（THAILAND) CO., LTD

Production and sales of instant noodles, etc.

ASIA MODIFIED STARCH CO., LTD

Production and sales of modified starch

ASIAN BEST CHICKEN CO., LTD

Poultry processing

Mitsubishi Shokuhin Co., Ltd.

Domestic and international wholesale and distribution ofprocessed foods, frozen and chilled foods, alcoholic beverages
and confectionaries

Kanro Inc.

Manufature and sale of confections and foodMitsubishi Corporation LT, Inc.

International integrated transport logistics, warehousing

Toyo Tire Corporation

Tire Business, Automotive Parts (Business)

N.V. ENECO

Energy supply businessSwing Corporation

Water business

Mitsubishi HC Capital Inc.

Various types of leasing, installment sales, and other financial
services

Mitsubishi Corporation Financial & Management Services(Japan) Ltd.

Financial, accounting, and inspection services, corporate
finance and management consulting services

MC Facilities Co., Ltd.

Facility management for buildings and offices, and generalbusiness support

Corporate Staff Section

Environmental Audits
MC conducts internal environmental audits every year in accordance with ISO 14001. Audits are conducted by forming audit teams
comprised of members of the Corporate Sustainability Dept. The audit teams confirm whether EMS is being effectively implemented ineach Business Group. The audit teams report their findings to the President and CEO, who serves as the chief officer in charge of EMS.

Environmental Communications
When MC is requested by customers or other external stakeholders to provide environmental information, MC discloses this information
by following the processes stipulated by the ISO 14001 standards. This information includes questionnaire responses and certified
copies of documentation associated with the ISO certification process. In FY2022, MC responded to 39 questionnaires and provided 7
certified copies of its ISO documentation.

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SocialGovernanceInitiatives
Procurement of CO2-Free Electricity for the Head Office Building
As part of efforts to contribute to ”Contributing to Decarbonized Societies”, one of MC’s Materialities, MC has switched to green power
for the electricity procured for its Head Office building (the Mitsubishi Shoji Building). CO2-free electricity with environmental value(tracked non-Fossil Fuel Energy Certificates*1) is generated at a solar power plant invested in and operated by Mitsubishi Corporation
Energy Solutions Ltd., which is engaged in the power generation business, and procured through MC Retail Energy Co., Ltd., which isengaged in the power retailing business. As such, electricity demand in the Mitsubishi Shoji Building is covered by renewable energy
sources that also meet the requirements of RE100*2. From power generation to retail, MC Group companies work together to supply,
procure and use renewable energy, creating environmental value by leveraging the MC Group’s comprehensive capabilities in the power
value chain.

*1 Non-Fossil Fuel Energy Certificates certify the environmental value of electricity as being generated from non-fossil fuel energy sources, such as
renewable energy sources, under the Act on the Promotion of Use of Non-fossil Energy Sources and Effective Use of Fossil Energy Materials by Energy
Suppliers.
*2 An international initiative that aims for 100% of the energy used in business operations to be procured from renewable sources.

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SocialGovernanceRelevant Data
Number of Environmental Reports and Corrective Measures
In the implementation of EMS, a system has been established for reporting and correcting matters relating to infringements of laws andordinances as well as guidance from authorities. The incidents are shared throughout MC and measures are taken to prevent
recurrences.

Number of Environmental Reports and Corrective Measures
FY2020

FY2021

FY2022

Number of reports

2

6

3

Number of corrective measures

2

6

3

(Including matters resulting in fines, penalties, etc.)

0

0

0

A reporting system which uses a compliance hotline has been instituted to appropriately respond to accidents and disasters when theyoccur and to promptly implement measures to prevent recurrence. The system covers not only MC but group companies as well. Goingforward, MC will continue to promote EMS as well as measures to address environmental contamination such as oil pollution.
Concurrently, in the event of an environmental incident, MC will promptly report the incident to the relevant parties and investigate thecauses, along with considering appropriate remedial measures and preventive measures. In doing so, MC will rigorously implement
measures to prevent a recurrence of the incident.
Reference:

Compliance System Diagram120

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SocialGovernanceInitiatives

External Collaboration

Environment

Water Resources
PolicyTargets

Structure

Water Resources Data

PolicyMC has clarified its intention to promote the “sustainable use of natural resources including water” in its Environmental Charter, which
was first established in 1996 and later revised in 2017. The MC Group, which engages in a wide range of businesses worldwide, has
identified "Conserving and Effectively Utilizing Natural Capital" as part of its Materiality. It recognizes water as an essential element for
its business activities and places critical importance on the sustainable use of water in all of its operations. In particular, MC identifies
relevant risks and opportunities in a timely manner and, with the goal of achieving the sustainable use of water, establishes appropriate
water consumption, recycling, reuse, and treatment throughout its operations and makes efforts to improve use efficiency and reduce
consumption. Furthermore, MC will contribute to the resolution of global water issues through its business by establishing water
infrastructure businesses and developing comprehensive water operations.

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SocialGovernanceTargets
Aiming to reduce the consumption of limited water resources, for FY2023, MC has set a target to reduce water consumption at its Head
Office compared to the consumption in the previous year. MC also conducts a sustainability survey which aims to track the withdrawals,
discharges and recycling of water for the total operations of its portfolio investment companies. In addition to achieving a 100% response
rate for this survey, MC is conducting an analysis of individual increases and decreases of the various surveyed items.

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SocialGovernance

Structure
Officer in Charge
Deliberative Body
(A subcommittee under the Executive Committee, amanagement decision-making body)

Department in Charge

Reference:

Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO)
Sustainability & CSR Committee
Important matters related to water resources deliberated by the Sustainability & CSR Committee are formallyapproved by the Executive Committee and put forward or reported to the Board of Directors based on prescribedstandards.
Sustainability Dept.

Diagram of the Sustainability Promotion Framework

Risk Management
When reviewing and making decisions on loan and investment proposals, MC conducts a comprehensive screening process which
considers not only economic aspects, but ESG factors as well. From a water resources perspective, MC has set up a screening process
for decision-making that first confirms compliance with environmental regulations related to such factors as water discharge andwithdrawals (confirmation of regulatory risks), as well as the impact of water withdrawals on surrounding communities, local society,biodiversity, and the impact of climate change on the fresh water environment (confirmation of physical risks). For this screening
process, particularly for businesses in areas considered to have high levels of water stress, MC utilizes the World Resource Institute(WRI)’s Aqueduct tool in order to incorporate external perspectives. Besides screening new investment and exit proposals, MC strives tomake improvements to existing business investments by monitoring their management practices.
In addition, MC conducts annual surveys of suppliers to confirm their compliance with the Mitsubishi Corporation Policy for Sustainable
Supply Chain Management, which outlines MC’s actions to address human rights, labor rights, and environmental issues in supply
chains for products with high environmental or social risks. Items covered in these surveys include consideration for impacts on local
communities and ecosystems; whether suppliers have policies, strategies, and guidelines designed to prevent river pollution and set andmonitor water consumption reduction targets; and the content of any water-related surveys carried out. (See the Supply Chain
Management page for additional details).
Reference:

Human Rights and Environmental Due Diligence

Water Stress Analysis
In addition to Group-wide efforts to reduce water consumption, we carried out water stress analysis of group companies with high water
withdrawal amounts in order to identify priority reduction targets.
The process of analysis and some results are described below.

Process of the Analysis
The top 20 MC Group companies in terms of water withdrawal amounts (accounting for approximately 99.2% of the total water
withdrawal amount for companies under MC's financial control) were identified.
WRI’s Aqueduct water stress analysis tool was used to carry out a survey to determine if any of the 20 companies identified werelocated in areas of high water stress.
Measures designed to reduce water consumption were implemented, together with reduction targets, at any business located in an areaof high water stress (rated “High” or above).

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SocialGovernance

Results of the Analysis
According to Aqueduct, a Thai tapioca starch manufacturing and processing company is based in an area affected by high water stress.
The company's location, classified as the Mekong River Basin, is generally at high risk of water shortages, droughts, and inadequate
wastewater treatment. However, based on the analysis of the impact on operations using the WWF Water Risk Filter— and taking into
account business characteristics that we identified after conducting interviews with management during site visits—the company's
operational risk score was “Low.“
Establishment of Targets and Initiatives to Reduce Water Consumption
The Company has set a water recycling ratio target of 10% to reduce water consumption per unit of production volume, and is working
on water reuse by recirculating water used to backwash microfiltration membranes, etc.

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SocialGovernanceInitiatives
Initiatives to Maximize Water Efficiency
Los Bronces Copper Mine
MC is involved in the copper mining business in Chile and Peru. Since copper mining requires a large amount of water, each mine isworking on the implementation of technologies to maximize the water efficiency of operational processes in order to reduce new water
intake. The Los Bronces Copper Mine (located in Chile's Metropolitan Region), in which MC invests together with Anglo American plc(AA), reuses approximately 80% of the water utilized in the production processes in the mine. AA is also working to increase water
recycling from tailings and the utilization of industrial wastewater and treated sewage water procured from third parties. In addition, AA
has recently signed a contract for the procurement of desalinated water from 2025 to ensure stable, long-term water supply for
operations while also providing clean water to approximately 35,000 people in communities local to the operation.

Initiatives to Reduce Water Consumption
Escondida Copper MineThe Escondida copper mine, one of MC’s major investments, is located in the desert region of northern Chile and boasts the largest
production volume in the world. At the minesite, water consumption is reduced in the ore processing phase through water-saving andreuse, among other means. Moreover, an investment, approximately US$4 billion to date, has been made in the construction of thedesalination plant with one of the largest processing and pumping capacities in the world; the desalination plant has eliminated relianceon subterranean aquifers covering all the project’s water requirements since the end of 2019. With water shortages due to drought
becoming an issue for Chile in recent years, we will continue to promote environmental protection and coexistence with local
communities.

Toyo Reizo Co., Ltd.
Toyo Reizo Co., Ltd., one of MC’s consolidated subsidiaries, has declared in its environmental policy that it will reduce the amount ofwater resources to be used in its production processes and will take preventative measures against the discharge of pollutants. It has
also set targets to reduce water consumption on both a single fiscal year and mid-term basis, and engages in reduction activities. In
particular, MC aims to reduce its environmental impact by saving water. To achieve this, it calculates consumption and discharge
amounts in plants and related facilities with high water consumption for monthly assessment and review. In addition to these efforts to
reduce water consumption, MC has also set targets for the reduction of CO2 and waste discharge and for the implementation rate offood waste recycling, etc. while seeking continual improvements though a PDCA cycle.

Reference:

Environmental report (see here for targets, data and initiatives)

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SocialGovernanceOlam
MC affiliate Olam Group Limited (Olam) has endorsed the UN CEO Water Mandate (a United Nations Global Compact initiative that
supports corporate involvement in activities relating to water, sanitation, and the SDGs) and is working to develop policies designed tomitigate, understand, and manage water risks.
Examples of specific efforts by Olam to reduce its water consumption include the establishment, in 2022, of usage reduction targets for2030 at its almond orchards in Australia and the U.S., as well as a commitment to improve water use efficiency throughout eachorchards by monitoring soil and plant moisture , and to remediate 75% of wet and saline areas . In addition, Olam irrigation experts
have been working to implement measures at Olam's black pepper estate in Vietnam, including rainwater storing and shade trees
planting. They also reduced water use by an average of 35% between January and April 2022 through the installation of drip irrigation.
Olam has also implemented various measures and capital investments to improve water efficiency at its processing facilities, resulting in
a 21% reduction in water consumption per ton at its main processing facilities compared to the previous year.
In 2022, Olam partnered with the USDA Forest Service, the National Forest Foundation, and Unilever to focus on improving theresilience of forested watershed and conservation of water within the Pine Flats watershed in California and reduce the risk of severe
wildfires. This project is expected to replenish approximately 2.5 billion liters of water and reduce CO2 emissions by 80,000 tons
annually.

Reference:

To find out more about Olam’s activities to reduce water consumption, please visit their website:
Olam Priority Areas, Water

https://www.olamgroup.com/sustainability/sustainability-framework/priority-areas/water.html

Initiatives in Water-Stressed Regions
Desalination Projects
MC is delivering seawater desalination projects in drought regions of the world such as the Atacama Desert in Chile and the State of
Qatar in the Middle East which contribute to the alleviation of water stress in those regions. Northern Chile is facing serious depletion ofgroundwater, and alternative water sources are required in consideration of local communities and the agricultural industry. MC provides
a stable supply of desalted water to mines and farmlands in the region. In Qatar, MC has been delivering an Independent Water andPower Project that supplies 2,520MW of electricity and 900,000 tons per day of water (which comprises 35% of Qatar’s desalination
capacity) to Qatar General Electricity & Water Corporation for over 25 years. MC is delivering the project in cooperation with the Qatari
government to fulfill growing demand for water associated with economic development and population growth and to contribute to thelong-term development of the country.

Umm Al Houl Power, Qatar

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SocialGovernance

Providing Solutions through Our Business Activities
As living standards improve, certain regions are experiencing increasingly severe water shortages. Water utilities, which provide a stablesupply of sanitary water, have become indispensable for the survival of humanity and the viability of cities. MC is contributing to theresolution of various challenges pertaining to water resources by developing water-related infrastructure and addressing local water
issues.

Swing Corporation
MC affiliate Swing Corporation is engaged in the domestic waterworks business, including the design and construction of water andsewage facilities and the provision of operation and maintenance services. Specifically, MC is engaged in phosphorus recovery fromsewage sludge for fertilizer use at the Higashinada Sewage Treatment Plant in Kobe, Hyogo Prefecture. It promotes resource recovery
through local production for local consumption and recycling (in FY2020, the project won the innovation category in a wastewater
recycling award sponsored by the Japanese Ministry of Land, Infrastructure, Transport and Tourism). Swing Corporation developed aprivate finance initiative (PFI) project in the city of Kurobe, Toyama Prefecture to establish a facility for the beneficial reuse of sewage
biomass and has assumed responsibility for everything from financing to design, construction, maintenance and operation. The sewage
sludge is mixed with coffee residue to extract biogas, which is used for power generation and sludge drying, and the dried sludge can beused effectively as an alternative to coal and as a raw material for fertilizer (in FY2011, the project won the sustainability category in a
wastewater recycling award sponsored by the Japanese Ministry of Land, Infrastructure, Transport and Tourism).

Kurobe City Sewerage Biomass Energy Reuse Facility

MC has built up experience in the water business in the UK, Japan, Australia, the Philippines, Chile and other countries in Asia, theMiddle East and Africa. By drawing on private-sector funds and technology, we will continue to improve efficiency and offer higher-quality
water services. We will also provide water-related solutions optimized for each different region to address water shortages andunderdevelopment of water infrastructure with the aim of improving people’s living conditions and protecting the local environment.

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SocialGovernance

External Collaboration
Responding to CDP
MC actively disseminates information about its ESG-related initiatives to its various stakeholders around the world. CDP is a UK-based
international environmental NGO, and conducts activities to promote corporate environmental information disclosure at the request of
institutional investors around the world. It holds the world’s largest database of corporate disclosures on climate change initiatives, andsince FY2011, MC has responded the CDP Water Security questionnaire, which evaluates corporate water management.

Participation in the Water Project of the Ministry of the Environment of Japan
MC participates in the Water Project*, a public-private initiative which promotes initiatives aimed at preserving or restoring healthy water
cycles. MC shares information with other companies on water risks and water-related initiatives, and considers how to pursue suchinitiatives internally.

MC is promoting activities, both through business and corporate philanthropy initiatives, to maintain and restore sound water cycles. MC
also disseminates information about its initiatives and the importance of water through internal and external communication.
※ The project was launched based on the Basic Act on Water Cycles in 2014. The Water Project was founded to build a public-private collaboration
platform and to promote initiatives and self-motivated approaches from private sector companies aimed at achieving sound water cycles and water
environment preservation.

Collaboration with NGOs
MC supports a wide range of initiatives focusing on environmental and sustainable development in the Americas, Europe and Africa
through the Mitsubishi Corporation Foundation for the Americas (MCFA) and the Mitsubishi Corporation Fund for Europe and Africa(MCFEA). Some examples include supporting mangrove ecosystem conservation activities in Senegal through ENDA Energie and U.S.
Gulf Coast cleanup activities to protect biodiversity and conserve shorelines through a partnership with American Bird Conservancy and
SPLASh.

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SocialGovernance

Environment

Biodiversity
PolicyTargets

Structure

Initiatives

External Collaboration

Performance

PolicyAs stated in our Environmental Charter, MC recognizes the critical importance of natural capital, including biodiversity, and is committed
to maintaining, protecting, and restoring it. We have positioned “Conserving and Effectively Utilizing Natural Capital,” including
consideration of biodiversity, as part of our Materiality, which are issues for management to address in order for MC to achievesustainable growth. Based on these policies and materiality analysis, MC analyzes its nature-related issues using the TNFD frameworkand strives to minimize negative impacts on its natural capital from its business activities. Natural capital issues are taken into accountwhen reviewing and making decisions on loan and investment proposals.
Forests are regarded as one of the most important types of natural capital because of their vital role in preserving biodiversity as well as
capturing and storing greenhouse gases. Therefore, MC is working to reduce the deforestation impact of its activities to zero, including
through the establishment of individual guidelines for each of the forest risk commodities we handle (soybean, timber and paper
products, and palm oil ) with the aim of ensuring that procurement of these commodities is not connected to deforestaion. To confirm
compliance with the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, which outlines MC’s actions to addresshuman rights, labor rights, and environmental issues in the supply chain, we also require all MC suppliers to understand, support andimplement this policy. Furthermore, we conduct annual supplier surveys to ensure that our policies regarding the handling of productswith high environmental or social risks are being observed. (See the Supply Chain Management page for further information.)

In addition, we are engaged in corporate philanthropy activities aimed at conserving biodiversity, including the Tropical Forest
Regeneration Project and the Global Coral Reef Conservation Project.
Reference:

MC’s Environmental Charter
Policy on Mine/Site Decommissioning

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SocialGovernanceTargets
MC strives to mitigate the impact that its businesses have on biodiversity, and seeks ways to contribute to ecosystem preservation
through its businesses as well as through corporate philanthropy activities aimed at environmental preservation. Regarding contributions
to the preservation of ecosystems through our business activities, MC takes into account aspects related to biodiversity when screening
new project and exit proposals, and also aims to make improvements by monitoring the management practices of existing business
investments.

130Environment

SocialGovernance

Structure
Officer in Charge

Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO)

Deliberative Body

Sustainability & CSR Committee
Important matters related to biodiversity deliberated by the Sustainability & CSR Committee are formally approvedby the Executive Committee and put forward or reported to the Board of Directors based on prescribed standards.

(A subcommittee under the Executive Committee, amanagement decision-making body)

Department in Charge

Reference:

Sustainability Dept.

Diagram of the Sustainability Promotion Framework

Risk Management
When reviewing and making decisions on loan and investment proposals, MC conducts a comprehensive screening process which
considers not only economic aspects, but ESG factors as well. Since 2012, we have employed the Integrated Biodiversity Assessment
Tool (IBAT) developed by organizations including the International Union for the Conservation of Nature (IUCN) to help assess potential
business impacts by evaluating the status of protected or endangered species in the vicinity of project sites, along with other relevant
data on special conservation areas. Besides screening new investment and exit proposals, MC strives to make improvements to existing
business investments by monitoring their management practices.
In addition, when dealing with products with high environmental and social risks, MC conducts annual supplier surveys to confirm theircompliance with the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, which outlines MC’s actions to addresshuman rights, labor rights, and environmental issues in the supply chain. These surveys include content on natural capital, including
biodiversity, and cover a wide range of items, including consideration of the impact our business activities have on local communities
and ecosystems and whether suppliers have policies, strategies, and guidelines designed to prevent soil contamination and preserve
biodiversity. (See the Supply Chain Management page for further information.)
Reference:

Human Rights and Environmental Due Diligence

Identifying and Responding to Nature-related Issues Using the TNFD Framework
Almost all MC businesses interact with nature and depend upon the benefits that ecosystem services provide. We recognize that inorder to ensure the future continuity of our business activities, we need to understand the extent of our dependencies and impacts onnature, analyze risks and opportunities, minimize excessive dependencies and negative impacts on nature, and pursue initiatives that
contribute to the recovery of nature.
From this perspective, MC conducted a trial analysis based on the beta version (V0.1-0.4) and the final recommendations (V1.0) of the
TNFD framework from FY2022 to FY2023.
In the future, we will utilize the knowledge obtained through this analysis in the management of individual businesses and continue toanalyze and respond to nature-related issues while incorporating the latest frameworks and analysis methods, including the final
recommendations of the TNFD, with the aim of further improving MC Group's sustainability and corporate value.

FY2022-2023 Analysis Process and Results
When conducting analyses based on the LEAP approach as recommended by the TNFD, it is necessary to obtain detailed informationon the natural environments surrounding each business site. Since we have a diverse range of businesses, we decided that it isnecessary to conduct a LEAP analysis while identifying priorities within our overall business portfolio. We therefore split the analysis
process into two phases.
In Phase 1, we identified businesses with high levels of dependence and impact on nature, which allowed us to single out thosebusinesses that needed to be analyzed in further detail. In Phase 2, the business selected during Phase 1 were analyzed on an
individual basis.
In order to incorporate the knowledge of external experts into the analysis, we conducted the analysis with the cooperation of KPMG
Japan.

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SocialGovernancePhase 1 (Portfolio Analysis)
We used ENCORE*, a tool recommended by the TNFD, to map the overall levels of dependence and impact on nature for eachbusiness. Both the analysis methods and the results obtained are described below. Please note that Phase 1 of the analysis did not take
into account the location of each business or any environmental initiatives.

* A tool jointly developed by the UN Environmental Programme and various international financial industry groups.

By using ENCORE to calculate averages of environmental dependency and impact on nature across all processes, we were able toidentify eight businesses with scores in these areas that were higher than averages. The business with the highest dependence onnature was in the aquaculture business, while the business with the greatest environmental impacts were active in the mineral resourcesbusiness.
Since no businesses had both dependency and impact scores significantly higher than the average, we decided to conduct an individual
business analysis for our aquaculture business with the highest dependency, while taking into account the following points.
Although it is assumed that we can control impact to a certain extent, there are many factors that we cannot control regarding
dependency. Therefore, we determined that businesses with higher dependency have bigger potential risks.
Since MC Group's aquaculture business is mainly represented through the operations of Cermaq, a 100% subsidiary, we determined
that, for the purpose of assessing and familiarizing ourselves with the TNFD framework, this business would be appropriate to analyze
from the perspective of the level of our involvement in its operations and the availability of data.
Please refer to the Rehabilitation section for information about initiatives to mitigate the environmental impacts caused by the mineral resources business.

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SocialGovernancePhase 2 (Individual Business Analysis)
Of the companies identified in Phase 1, we chose to analyze our salmon farming business, Cermaq, which had the highest level ofdependence on nature. This analysis was conducted in accordance with the TNFD’s Locate, Evaluate, Assess, and Prepare (LEAP)
approach.

Locate (Location of the interface with nature)
We used the tools* recommended by the TNFD for each of Cermaq’s business sites in Norway, Chile and Canada to make anassessment of the status of ecosystems and biodiversity, and used the results to identify priority locations.
Evaluate (Evaluation of nature-related dependencies and impacts)
With respect to the priority locations identified in the Locate phase, we compiled a long list of dependencies and impacts on nature byintegrating qualitative evaluations of aquaculture operations in ENCORE, relevant scientific papers, and initiatives at Cermaq. In
addition, we identified particularly important dependencies and impacts, taking into account the magnitude of the dependencies andimpacts themselves, as well as the presence or absence of references in the Aquaculture Case Study published in the beta version of
the TNFD framework. We then organized these by their relationships with natural elements. Sea-based aquaculture depends heavily
on the marine ecosystem, which provides ecosystem services such as water quality and is essential for the growth of farmed salmon.
At the same time, sea-based aquaculture can have impacts on the marine ecosystem. In addition, the procurement of plant-based
feed such as soybeans depends on the terrestrial ecosystem and also has an impact on it.
Assess (Assessment of nature-related risks and opportunities)
Based on the dependencies and impacts on nature identified during the Locate and Evaluate phases, we made a list of the naturerelated risks and opportunities in Cermaq's business and organized them based on the typology provided by the TNFD guidance.
Four scenarios were then assumed in accordance with the TNFD guidance, based on the two focal points of “degree of degradationof ecosystem services” and “consistency between market and non-market principles”. A materiality assessment of risks andopportunities was carried out for both Scenario 2, which considers general high risks, and Scenario 3, which considers high risks foraquaculture operations that are highly dependent on nature, as it is often difficult to pass on the damage caused by nature loss to thefinal sales price. We also evaluated the importance of these risks and opportunities by considering both the magnitude and likelihoodof occurrence of each risk and opportunity.

＜4 Scenarios＞＜Matrix of Importance Assessment＞

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SocialGovernance

As a result of the assessment, the following items were identified as risks and opportunities that were rated as being of highimportance.

Prepare (Preparing to respond and report)
Regarding the significant nature-related risks and opportunities identified during the Assess phase, we have confirmed throughcommunication with Cermaq that certain countermeasures have been taken to address them. In addition, we have evaluated therelationship between the nature-related metrics proposed by the TNFD and Cermaq’s nature-related dependencies, impacts, risks
and opportunities identified during the Locate, Evaluate, and Assess phases to identify the metrics that are important to Cermaq’s
monitoring and management of nature-related issues.

Cermaq is currently conducting an analysis for the disclosure of nature-related information based on the EU Corporate Sustainability
Reporting Directive (CSRD). Since there is overlap between the TNFD and CSRD disclosure frameworks, Cermaq will prepare fordisclosure based on the CSRD by referring to the results of this analysis as well.
* IBAT, a biodiversity analysis tool developed by IUCN (International Union for Conservation of Nature), Aqueduct, a water stress analysis tool developed
by WRI (World Resources Institute), etc.

Future Policies based on Trial Analysis
Through the trial analysis based on the TNFD framework, which we started from FY2022, we were able to deepen our understandingof the framework, as well as gain an overall picture of the dependences and impacts on nature for the MC Group's businesses, aswell as the nature-related risks and opportunities in the aquaculture business.
In the future, we will utilize the knowledge obtained from the trial analysis in the management of individual businesses and continue toidentify and respond to nature-related issues using the TNFD framework, thereby further improving the MC Group's sustainability andcorporate value.

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SocialGovernanceInitiatives
Examples of Protection/Conservation Activities through Business Operations
Land Rehabilitation at Post-mining Sites

In developing natural resources, companies need to consider environmental impacts in relation to areas such as biodiversity, forests,
and water. The local community must also be duly engaged as an important stakeholder. MC ensures that its mining activities inAustralia are conducted in harmony with the natural environment and local communities with utmost care and attention, before, during
and after the mining operations.

Moving into a Resource BusinessMC established Mitsubishi Development Pty Ltd (MDP), a wholly-owned subsidiary, in Australia in 1968 as a mineral resources

investment company. Through MDP, we have undertaken a range of investments in mineral resources operations in Australia. In 2001,
MDP created BMA together with global mining giant BHP. By increasing our investment in large-scale metallurgical coal mining
operations in Queensland, we took a major step toward becoming a globally significant participant in the metallurgical coal industry.
The metallurgical coal operations of the BHP Mitsubishi Alliance (BMA) are located in Queensland, Australia. BMA's mine sites cover an
area twice the size of Singapore and produce high-quality metallurgical coal used for steelmaking. BMAʼs product is the raw material for
producing coke which, when charged into a blast furnace with iron ore, acts as a reducing agent to produce crude iron. The metallurgicalcoal produced by BMA is supplied to customers in approximately 30 countries around the world. BMA is the world's largest seaborne
supplier of metallurgical coal, producing and shipping approximately 60 million tons per annum.

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Rehabilitation of Large-scale Open-cut Mines
BMA acts as responsible miner and ensures its mine closure plans take into account social expectations and environmental regulatory
requirements for rehabilitation. While complying with laws and regulations, BMA strives to minimize its impact on the environment andsociety by developing appropriate mine closure plans, and by implementing rehabilitation projects based on environmental impact
reports and review by field experts and authorities. As part of annual renewal of long-term production plans for each site, BMAʼs planningand investment models are updated including all necessary rehabilitation and closure costs.
The majority of BMA’s coal operations are open-cut strip mines, a method requiring overburden removal to depths up to 200+ meters inorder to expose the underlying metallurgical coal seams.
The mining process at an open-cut strip mine starts with removal and stockpiling of the topsoil. The area where BMA mines are situatedis not heavily forested as it has a dry tropical climate. The topsoil of about 30-40cm depth is removed and preserved in stockpiles andcovered with a mixture of grass and scrub to preserve it for later use in rehabilitation.
After this process is complete, overburden removal and subsequent coal mining are carried out, leaving behind a large pit. Once the coalhas been mined, the overburden that was moved and placed in spoil dumps during mining operations is profiled. The profiled dump
surface is then covered with topsoil mixed with rock mulch and planted with seeds of indigenous grasses, trees and shrubs.

Surface Mining Scenery

After rehabilitation works have been completed, site recovery is monitored to confirm whether the final landforms are stable, water runoff
is of acceptable quality and vegetation is taking root. BMA employs ecological specialists for the planning, rehabilitation, and surveying
stages to supervise the rehabilitation process.

Before Rehabilitation

After Rehabilitation

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External Collaboration
Status of Participation in the Round Table on Responsible Soy Association (RTRS)
Agrex do Brasil, an MC subsidiary, is a Round Table on Responsible Soy Association (RTRS) certified producer with a total of
approximately 19,000 hectares of land certified under this standard. Agrex do Brasil was the first company in Brazil to obtain RTRS
certification for the production of responsible soy in its farmland in Maranhão, Brazil. Through the RTRS certification, Agrex do Brasil
seeks to make various internal improvements, increase efficiency in soil management and protection, improve water management,
foster employee motivation and strengthen relationships with neighboring communities.

Compliance with the Soy Moratorium (Moratória da Soja)
Agrex do Brasil is operating in compliance with Brazil’s soy moratorium (Moratória da Soja), a voluntary industry agreement thatprevents participating companies from buying or selling soybeans grown in areas of the Brazilian Amazon that have been deforested
since July 2008. Compliance with the moratorium is monitored through annual audits conducted by an independent organization
selected by a working group made up of industry associations, including the Brazilian Association of Vegetable Oil Industries (ABIOVE)
and the National Grain Exporters Association (ANEC), as well as representatives of civil society.

Participation in CDP
MC actively discloses information related to its efforts regarding ESG to a variety of stakeholders around the world. FY2014, MC has
responded to CDP Forests, a survey which evaluates companies’ forest management in the supply chain. CDP is a UK-based
international environmental NGO, and conducts activities to promote corporate disclosure of environmental information at the request of
institutional investors around the world. It holds the world’s largest database of corporate disclosures on climate change initiatives.

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Cermaq Initiatives
Cermaq, an MC subsidiary, has been a Global Compact member since 2011 aligning with their strategies and operations with universal
principles .Cermaq has identified biodiversity protection as a key part of its license to operate in all the countries where it has operations.
Cermaq works actively in cooperation with local stakeholders to protect wild salmonids in all areas where they are present, removes
marine litter from the areas near its sea sites on an annual basis, and tracks bird and marine mammal mortalities at its sites incompliance with all laws and regulations of Chile, Canada, and Norway and additional requirements set by the ASC standard. In its feed
supplier Code of Conduct, Cermaq mandates that no fish meal or fish oil used in the feed for its fish shall originate from IUU (Illegal,
unreported, unregulated) fisheries.

Reference:

Please refer to the Customer Responsibility Section for details on Cermaq’s other initiatives.

Examples of Collaboration with Government Bodies
Forest Conservation Project: Mitsubishi Corporation Thousand Year Forest (Also Known as Yataro’s Forest)
In February 2009, MC signed a forest preservation partnership agreement with Kochi Prefecture, Aki City and the Kochi Tobu Forestry
Association. The area covered by the agreement, which includes a forest owned by MC in Aki City, Kochi Prefecture, the birthplace of
Mitsubishi founder Yataro Iwasaki, has been named the “Mitsubishi Corporation Thousand Year Forest” (“Yataro’s Forest”). MC initiatedthis forest conservation project as a way of contributing to local environmental protection efforts. Employee volunteers travel to the“Yataro’s Forest” area every year to assist with forest conservation activities, such as thinning, and to take part in cultural exchange
activities.

In March 2020, MC concluded an agreement with the Shikoku Forest Bureau, Aki City, and the Kochi Tobu Forestry Association to
implement forest management in Yataro's Forest (Becchaku area) in line with the Shikoku Forest Bureau’s policy of establishing “green
corridors in the Shikoku Mountains,”* in an effort to maintain biodiversity.
* Shikoku’s national forests are being protected under a protective forest system, which helps to preserve important fauna and forests. In addition, throughgreen corridors in the Shikoku Mountains, this project will help preserve biodiversity by allowing animals and plants to move and spread across a wide
area.

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Examples of Collaboration with International Organizations and NGOs
Global Coral Reef Conservation Project
MC promotes cooperative research into coral reefs by business (MC), academia and NGOs in Okinawa and Australia.The partners are
Shizuoka University and James Cook University in Australia.
The results of this research are published online and via international symposia to help evaluate the resilience of coral environments andpreserve related biodiversity. This project has been recognized with a Medal of Honor in Japan, and has also been approved by theJapan Committee of the United Nations Decade of Biodiversity (UNDB-J)*. In addition, as an official supporter of the International Year of
the Reef 2018, MC actively communicated the results of its Global Coral Reef Conservation Project.
* A committee that seeks to achieve the Aichi Biodiversity Targets adopted at the Tenth Ordinary Meeting of the Conference of the Parties to theConvention on Biological Diversity (COP 10) held in Nagoya, Aichi Prefecture, Japan in 2010.

Coral reef (Australia)

Coral Reef Conservation Project: Employee

Coral Reef Conservation Project: Employee

Volunteers

Volunteers

Natural Climate Solutions in South Africa
MC is now supporting Natural Climate Solutions (NCS) as part of its philanthropic activities.
There are various methods for NCS, and MC will focus on methods of preventing degradation in rangelands and intact forests, with thegoal of preserving the amount of CO2 absorbed by plants, and to prevent CO2 stored in soil and vegetation from being released into theatmosphere. The activities will be carried out in South Africa. In addition, we also aim to contribute to the conservation of biodiversity andto support local communities.
Conservation of South Africa’s Rangeland Restoration Project which also aim to improve the quality of life of local
communities
Population is rapidly growing in near Durban South Africa. Due to the increase in grazing caused by an increase in population, thenumber of rangeland which consist by grass and shrubs has begun to decrease and there are concerns of the amount of CO2 absorbed
may decrease and that the CO2 stored in soil will be released.
In this project, MC will work together with Conservation International, an environmental NGO, to conserve rangeland in cooperation withlocal communities. At the same time, it aims to improve the living standards of local residents by improving the quality of livestock
farming and conserving water resources.

©Conservation International/Tessa Mildenhall

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SocialGovernanceFoundation and Fund Activities
Through the Mitsubishi Corporation Foundation for the Americas (MCFA) and the Mitsubishi Corporation Fund for Europe and Africa(MCFEA), which aim to tackle societal issues across the Americas, as well as both environmental protection and societal issues acrossEurope and Africa respectively, MC is involved in activities that support environmental conservation, educational research on theenvironment and efforts to address the issue of poverty. The MCFEA and the MCFA is providing support through a wide range of partnerorganizations, including Farm Africa, which supports sustainable coffee farming in Bale-Eco region, Ethiopia, and the Yellowstone to
Yukon Conservation Initiative, which is working to protect caribou in Canada.

Coffee farmers in Bale-Eco region, Ethiopia ©Farm Africa

Examples of Collaboration with Other Companies
In April 2015, MC joined the Japan Business Initiative for Biodiversity (JBIB)*,a group of firms committed to undertake joint research
aimed at protecting biodiversity. The JBIB member firms agree to respect biodiversity in their daily business operations and pursue
activities aimed at minimizing negative biodiversity impacts. Going forward, through communication with JBIB members and related
initiatives, we will work to find ways of enhancing our initiatives toward protecting biodiversity.
* A group of Japanese companies engaged in biodiversity protection activities

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SocialGovernance

Performance
Reference:

Please refer to the Supply Chain Management for information on certified products.

Results of Social Contribution Activities
Having started the Tropical Forest Regeneration Project in 1990, aiming to regenerate tropical forests in a short period of time, MCremains widely involved in forest conservation in Japan and overseas. Through forest conservation projects in Japan and the Global
Coral Reef Conservation Project which strives to protect ocean biodiversity, MC’s environmental conservation efforts span the globe. Aspart of this, each year since FY2011, MC has planted two trees for every shareholder who consents to receive important
communications such as the Notice of the Ordinary General Meeting of Shareholders by e-mail rather than by post. Up until FY2021,
MC planted a cumulative total of roughly 480,000 trees through this initiative.

Student volunteers working on a Tropical Forest Regeneration
Project in Malaysia

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SocialGovernance

Environment

Prevention of Pollution
PolicyTargets

Structure

Initiatives

External Collaboration

Prevention of Pollution Data

PolicyMC recognizes the importance of striving to create and enhance environmental value, as stated in the Environmental Charter, byundertaking conservation activities and reducing our environmental footprint, including through the prevention of pollution. Moreover, interms of company-wide management of compliance with environmental laws, regulations, etc., MC takes responsibility as a businessthat produces waste. To ensure rigorous compliance with laws and regulations related to preventing pollution as well as the reduction,
reuse and recycling of waste within MC, internal notifications are sent out, as well as announcements and alerts about meetings andother related events. Furthermore, MC has formulated guidelines and standards for responding to oil spills and soil contamination anddisseminates this information internally to ensure thorough understanding.
Reference:

Mitsubishi Corporation Environmental Charter

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SocialGovernanceTargets
MC conducts an environmental performance survey for all MC Group companies in order to manage pollution prevention as well as
waste reduction, reuse and recycling initiatives on both a non-consolidated and an MC Group-wide basis. On a non-consolidated basis,
we set and monitor sustainable and effective reduction targets related to the volume of waste produced in conjunction with Head Officeactivities, in order to reduce, reuse and recycle waste through operation of environmental management systems (EMS).
Items
Pollution prevention

Waste production*1

Toxic waste emissions*2

Use of raw materials*3

FY2022 targets

FY2022 results

FY2023 targets

Select projects and conduct oil spill risk
survey biannually-(Oil spill risk survey conductedbiannually)

Select projects and conduct oil spill risk
survey biannually

Continue waste emission reduction

485.4 tons(+12.6% increase from 2022.3 results)

Continue waste emission reduction
activities （Recycling rate of 96％ or
more）

activities and grasp emission amount*4

159.8tons
Accurately grasp the emission amount andRecycled 100% of infectious waste
continue proper treatment and disposal ofemitted from in-house clinic, and disposed
the specially controlled industrial waste
PCB waste properly and sequentially
under the Waste Management Law
within legal deadline
Continue paper reduction and otherefforts, as well as an accurate grasp of
reduction figures*4

14,192thousand sheets(+14.3% increase from 2022.3 results)*1 Waste produced: Waste produced in conjunction with Head Office activities*2 The emission amount of specially controlled industrial waste under the Waste Management Law（Non-consolidated）*3 Use of raw materials: Volume of copy paper used at the Head Office*4 Due to the COVID-19 pandemic, MC mainly focused on qualitative targets based on the office activity manual.

143

Reduce the emission amount fromprevious year and continue proper
treatment and disposalof the specially controlled industrial waste
under the Waste Management Law
Continue paper reduction and otherefforts(3% reduction from previous year)

Environment

SocialGovernance

Structure
Officer in Charge
Deliberative Body
(A subcommittee under the Executive Committee, amanagement decisionmaking body)

Department in Charge

Reference:

Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO)
Sustainability & CSR Committee
Important matters related to preventing pollution deliberated by the Sustainability & CSR Committee are formallyapproved by the Executive Committee and put forward or reported to the Board of Directors based on prescribedstandards.
Sustainability Dept.

Diagram of the Sustainability Promotion Framework

Risk Management
When reviewing and making decisions on loan and investment proposals, MC conducts a comprehensive screening process which
considers not only economic aspects, but ESG factors including pollution prevention as well as the reduction, reuse and recycling ofwaste. Besides screening new investment and exit proposals, MC also strives to make improvements to existing business investments
by monitoring their management practices. Regarding oil spills in particular, oil spill risk surveys are conducted regularly, confirmations
are made that oil spill accident prevention and risk management frameworks have been established, and training is conducted to ensure
the thorough dissemination of information on these topics. Through these measures, MC is ensuring appropriate risk management toprevent oil spills from occurring.
Reference:

Human Rights and Environmental Due Diligence

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SocialGovernanceInitiatives
Initiative to Reduce Waste Production (Non-Consolidated Basis)〈Office Management〉
Maintained recycling rate through rigorous separation of trash
Planned management of office furniture〈Business Activities〉
MC’s environmental management systems are based on various laws and regulations and are compliant with various recycling laws
(Food Waste Recycling Law, Container and Packaging Recycling Law, Home Appliance Recycling Law, Construction Material
Recycling Law). MC manages its operations while following the procedures stipulated in each of these regulations, and strives toreduce waste production through its business activities.

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SocialGovernance

MC Fashion’s “THE ME” Business
The Japanese clothing market has shrunk in scale from about ¥15 trillion at the start of the 1990s to about ¥8-9 trillion today.
Conversely, the supply of clothing is said to have doubled from 2 billion to 4 billion items. In addition, the unit purchase price and unit
import price have fallen to around 60% of their 1991 levels.*
Although many improvements have been made in supply chains relative to the 1990s, the balance between production, supply, sales,purchase and end use has seen changes. While consumers are now able to purchase products at low prices and have a wealth ofchoices, society is questioning the environmental impact and mass waste associated with the increased supply of goods throughout theindustry.
Including its predecessor, our subsidiary Mitsubishi Corporation Fashion Co., Ltd. has been supplying clothing products to apparelcompanies for more than 30 years. MC Fashion has been working to address overproduction and mass waste caused by gaps between
supply and demand, and in July 2020, it launched its in-house brand “THE ME,” opening a showroom-style store in Jingumae, Tokyo.
Rather than mass production, the concept behind “THE ME” is to create clothes to suit each individual. With this in mind, “THE ME” hasadopted a unique model of producing only what consumers want to buy and delivering it to a designated location within a short period oftime, without holding any product inventory. Moreover, since this is a style of consumption that requires a waiting time forusers after
placing an order, "THE ME" also offers new consumer values such as “size correction" and "customization.”
As a result of industry efforts to date, a style of product supply similar to “THE ME” already exists, as represented by made-to-ordersuits. However, “THE ME” aims to optimize overall supply rather than focus on specific items. As such, it covers all products including Tshirts, dresses, skirts and coats, distinguishing itself by incorporating extensive use of IT, not only at the point of contact with consumers,
but also in the supply chain.

“THE ME” store in Tokyo’s Jingumae district

With “THE ME,” MC Fashion engages in a series of production, supply, sales and purchasing processes. In doing so, it aims to identify
key issues and establish a “single model” by making a series of changes to its business model and through the adoption of IT. The goal
behind “THE ME” is to provide this model to as many companies as possible and to play a role in optimizing the supply-demandbalance.
* Understanding of the environment based on the data released by the Japanese Ministry of Economy, Trade and Industry (METI).

Initiatives with Lawson, Inc. to Reduce Waste Losses
Together with its subsidiary Lawson, Inc., MC is implementing initiatives using AI and digital marketing to reduce food waste, which has
become a pressing issue in recent years.
Since 2015, Lawson has been implementing semi-automated ordering (an AI-driven system that suggests order volumes based on astore’s sales capabilities) to improve the accuracy of store orders. Going forward, Lawson will also make efforts to sell all purchased
inventory while improving accuracy through the use of the latest AI technology. Up to now, discount sales for products approaching theend of their shelf lives heavily relied upon the experience of store staff. However, by using AI for guidance on how much to discountprices by and when to do so based on each store’s daily inventory levels, stores are able to avoid having leftover inventory and to
conduct sales more efficiently.

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SocialGovernanceInitiatives to Reduce Waste Production (Mitsubishi Shokuhin Co., Ltd.)MC subsidiary Mitsubishi Shokuhin Co., Ltd. carries out various efficiency measures to optimize its supply chains through collaboration
between the manufacturing, distribution and retail sectors. Working jointly with manufacturers and retailers to enhance logistics
efficiency and collaborating with retailers to reduce product return rates and optimize inventory have led to reductions in greenhouse gas
emissions and waste production.

Application of Life Cycle Analysis in our Salmon Farming Business
Cermaq has tested the EU draft for Product Environmental Footprint Category Rules (PEFCR) for unprocessed marine fish on a casestudy of farmed salmon. In Canada, a third-party circular economy assessment is conducted to identify measures to improve the score.
To date, we have been successful in diverting material generated from decommissioning farms from the landfill through various
recycling facilities . Cermaq Canada will continue to implement the identified actions to further reduce waste

Reference:

Cermaq website

https://www.cermaq.com/sustainability/research-and-innovation
https://www.cermaq.com/sustainability/sustainability-reports

Initiatives to Prevent Oil Spills
MC formulated its Oil Spill Risk Guidelines in 2012. On a Groupwide basis, MC strives to prevent oil spills, giving due recognition of theenvironmental burden they could cause. MC makes project decisions taking into account matters such as the products handled andlocation of the enterprise, conducts oil spill risk surveys regularly, confirms that oil spill accident prevention and risk management
frameworks have been established, and conducts training to ensure the thorough dissemination of information on these topics. Throughthese measures, MC is ensuring appropriate risk management to prevent oil spills from occurring. In addition, there are no major leaks
as far as MC is aware.

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SocialGovernance

External Collaboration
Japan Foreign Trade Council
As a member of the Japan Foreign Trade Council (JFTC), an industry association for Japanese trading companies, MC is helping toformulate and execute “The Commitment to a Low-carbon Society” advocated by the Japan Business Federation (Keidanren). Based on
this plan, we are actively promoting the installation of energy- saving equipment in order to reduce energy consumption on a nonconsolidated basis. In addition, as a member of the Global Environment Committee established within the JFTC, MC actively engages ina variety of initiatives including promoting environmental compliance, improving environmental performance and disseminating
information about industry initiatives with the aim of creating a low-carbon society and a recycling-oriented society. It is essential forcompanies to achieve sustainable growth while considering the environment. The entire trading industry, not limited to MC, recognizes
the role it needs to play from a long-term and global perspective, and it is working to contribute through business activities.

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SocialGovernance

Environment

Efficient Use of Resources
PolicyStructure

Targets

Initiatives

Efficient Use of Resources Data

PolicyOur daily lives depend greatly on plentiful global resources. MC believes it is important to simultaneously generate three kinds of value:economic value, societal value, and environmental value - while benefiting in a sustainable manner from limited resources within ourplanetary boundaries. MC’s Environmental Charter positions this as a key consideration in business activities by clarifying that we will
promote the sustainable use of natural resources including energy, minerals, food stocks, wood and water throughout our global
business operations. Specifically, MC strives to recycle, reuse, and efficiently use resources, reduce the ecological footprint of ourbusiness activities, maintain healthy stocks in fishing activities, and otherwise efficiently utilize resources in accordance with ourbusiness operations.
Reference:

Mitsubishi Corporation Environmental Charter

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Environment

SocialGovernance

Structure
Officer in Charge
Deliberative Body
(A subcommittee under the Executive Committee, amanagement decisionmaking body)

Department in Charge

Reference:

Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO)
Sustainability & CSR Committee
Important matters related to the efficient use of resources deliberated in the Sustainability & CSR Committee areformally approved by the Executive Committee and put forward or reported to the Board of Directors based onprescribed standards.
Sustainability Dept.

Diagram of the Sustainability Promotion Framework

Risk Management
When reviewing and making decisions on loan and investment proposals, MC conducts a comprehensive screening process which
considers not only economic aspects, but ESG factors as well. This includes considering measures to address recycling and closed-loopbusinesses, waste management and related matters. Besides screening new investment and exit proposals, MC also strives to make
improvements to existing business investments by monitoring their management practices.
Reference:

Human Rights and Environmental Due Diligence

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SocialGovernanceTargets
With regard to waste emissions in its Head Offices, in principle, MC aims to reduce emissions by 1% from the previous fiscal year, andtargets are set based on the previous fiscal year’s results. In addition, with regard to recycling rates, MC has set a goal of achieving zerowaste emissions offices*, with the aim of recycling at least 95% of the waste produced by MC.
(Unit: tons)
FY2020Emissions volume• Recycling volume

FY2021

FY2022

411

431

485

407

425

467

4

6

18

99%

99%

96%

Waste
• Waste volume
Recycling rate (%)

Scope of aggregation (Non-Consolidated): Head Office and certain other offices in Tokyo* MC defines “zero emissions” as cases where vendors are contracted to recycle 95% or more of waste produced by its Head Offices. MC also promotes
waste reduction, reuse, and recycling, and manages Head Office activities with waste emissions targets.

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SocialGovernanceInitiatives
Recycling and Closed-Loop Business Initiatives (Livestock Feed Production
Business)
Nosan Corporation, a consolidated subsidiary of MC, uses Eco Feed* as a raw material for its formulated livestock feed, with the aim ofhelping to increase the food recycling rate and enhance the livestock feed and food self-sufficiency rate. Currently, Nosan Corporation
uses approximately 7,000Mt per year of dried Eco Feed recycled from discarded by-products of food production, unsold food products,
leftovers from cooking etc., as well as approximately 20,000Mt per year of by-products from bakeries and confectionery factories(breadcrumbs, cake flour). These are used as raw materials for livestock feed.

* A livestock feed manufactured using by-products of food production (by-products obtained from the food production process), unsold food products(bread and boxed lunches, etc.) leftovers from cooking (cut vegetable scraps and other leftovers from cooking) and residual farm products (imperfectfarm produce, etc.).

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SocialGovernance

Recycling and Closed-Loop Business Initiatives (Livestock Business)
Japan Farm Holdings Inc., a consolidated subsidiary of MC, is a large-scale livestock company that is working to build a closed-loop
recycling model. The model is centered on reusing waste generated from a primary industry, specifically the lees left over fromproducing the distilled liquor shochu. Japan Farm Holdings is located in Kagoshima Prefecture, which is famous for sweet potato shochu
manufacturing. The by-product waste known as lees from shochu manufacturing had been an ongoing issue. To solve this problem,
Japan Farm worked in collaboration with local distilleries for over two years to develop feed that reuses the shochu lees. The feed isused for breeding pigs for “Brand Pork.” In addition to reducing waste disposal costs and CO2 emissions, this model also involves the
manufacture of fertilizer from manure produced by the pigs that consume the feed. This fertilizer is then sold by local vendors, such as
agricultural cooperatives, for use in farming.
Japan Farm also maintains and operates a biomass power generation facility that uses chicken manure from the farm as fuel togenerate "steam and electrical energy" for effective use. The electricity generated is used as a power source for the facility, while thesteam generated by the boiler is used as a heat source. Ash generated during the incineration process is sold to outside parties as a raw
material for fertilizers that contains effective minerals.

Participation in the PET*1 Chemical Recycling Business
In January 2020, MC entered the PET chemical recycling business (MC’s equity share: 34%) through an investment in Thai Shinkong
Industry Corporation Ltd., which produces PET resins for beverage bottles.
PET is highly recyclable mono-material with a wide range of applications, including in food and beverage containers as well as intextiles, thanks to its excellent transparency, barrier properties, and well-established collection and recycling systems. As the transition toa circular economy progresses worldwide, we will expand our capacity for producing PET resins, for which demand is expected to growin line with the shift towards mono-materials, and by introduce chemical recycling technologies*2 through our participation in the PET
chemical recycling business with the aim of “Conserving and Effectively Utilizing Natural Capital”.
While environmental awareness in relation to plastics is heightening worldwide, plastics are highly functional basic materials that
underpin sustainable economic development. In promoting its plastics business, MC aims to contribute to building a circular society by
improving recycling rates and developing alternative materials.

*1 An abbreviation of polyethylene terephthalate.
*2 A recycling method in which used plastics are chemically decomposed into the raw material (molecular level) and then re-polymerized. This allows reuseof resources without any degradation in quality due to recycling.

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Environment

Environmental Data
Environmental Data
■ Scope of Aggregation (Non-Consolidated)
Climate Change Data: Head Office, domestic branches and offices, training centers and other facilities
Other Data : Refer to each table■ Scope of Aggregation (Consolidated)
Climate Change Data : MC, its consolidated subsidiaries, affiliates, joint operations and joint ventures on an equity share basis (based on the
GHG Protocol's equity share approach※)
Other Data : MC, its consolidated subsidiaries and joint operations (based on the GHG Protocol's financial control approach / Japan-based
only)※ Following its GHG emission reduction targets announced in FY2021, MC calculates GHG emissions based on the GHG Protocol’s equity shareapproach from the year ended March 2022 (the figures for the year ended March 2021 in the table are for reference).

■ Independent Practitioner’s Assurance
ESG Data marked with a star (★) for the year ended March 2023 has received independent practitioner’s assurance from Deloitte Tohmatsu
Sustainability Co., Ltd.

Reference:

Independent Practitioner’s Assurance Report154

Environment

SocialGovernance

Climate Change Data
Scope of Aggregation

Non-Consolidated

Scope 1&2
Consolidated

Unit

Scope 3
Consolidated

FY2021

FY2022

Scope of
Reduction
TargetAssurance

Scope 1&2 Total

thousand
tCO2e

9.3

3.4

3.5

★

Scope 1 (including 6.5
gases)

thousandtCO2e21,82921,046

19,518★

Scope 2

thousand
tCO2e

2,187

1,806

1,746

★

Scope 1&2 Total

thousandtCO2e

24,01622,852

21,264★

Scope of Aggregation

Non-Consolidated

FY2020〇Unit

FY2020

FY2021

FY2022

Scope of
Reduction
TargetAssurance

Category 4 (Upstream
Transportation andDistribution)

thousand
tCO2e

26

24

24

Category 11 (Use of
Sold Products)

thousandtCO2e-381,254306,939

Ref. Category 15(Investments)

thousandtCO2e-

15,15813,881★

〇Category 4 (Upstream Transportation and Distribution): Data collected in compliance with the Act on the Rational Use of Energy in Japan. Logistics figures
cover domestic (Japan) transport where MC is the cargo owner (include waste transportations).
Category 11 (Use of Sold Products):
Emissions from the usage of each product are calculated based on the same metrics for Scope 1&2. For products that consume electricity, in cases
where it is difficult to identify the country or region where they are sold, an average emission factor for the major sales regions is used.
Only direct use-phase emissions of sold products are included in calculations.
If it is not possible to identify which intermediate products sold are processed into which end products, they are excluded from calculations.
If a clear double-count is found for the same emission source among the companies included in the scope of aggregation, one source is excluded from
calculations.
Ref. Category 15 (Investments): Of the Scope 1&2 in the table above, emissions from affiliates and joint ventures (equivalent to Category 15 if the financial
control approach of the GHG Protocol is adopted).
Scope of Aggregation

Scope 1&2
Consolidated
Emissions by Segment

Unit

FY2020

FY2021

FY2022

Assurance

Natural Gas Group

thousand
tCO2e

3,354

3,172

3,228

Industrial Materials Group

thousand
tCO2e

512

407

395

Petroleum & Chemicals
Solution Group

thousand
tCO2e

1,011

1,222

1,119

Mineral Resources Group

thousand
tCO2e

4,132

3,201

3,216

Industrial Infrastructure Group

thousand
tCO2e

102

126

115

Automotive & Mobility Group

thousand
tCO2e

117

140

131

Food Industry Group

thousand
tCO2e

1,380

1,430

1,390

Consumer Industry Group

thousand
tCO2e

384

241

206

Power Solution Group

thousandtCO2e

13,003

12,88911,442

Urban Development Group

thousand
tCO2e

14

20

20

Corporate Staff Section

thousand
tCO2e

8

4

4

Total

thousandtCO2e

24,01622,852

21,264155

Environment

SocialScope of Aggregation

Scope 3 Category 11
Consolidated
Emissions by Segment

Unit

Assurance

111,410116,006

Industrial Materials Group

thousand
tCO2e

-

896

993

Petroleum & Chemicals
Solution Group

thousandtCO2e-41,29946,403Mineral Resources Group

thousandtCO2e-

94,07296,593

Industrial Infrastructure Group

thousandtCO2e-88,4702,436

Automotive & Mobility Group

thousandtCO2e-30,09332,747

Food Industry Group

thousand
tCO2e

-

1,431

1,617

Consumer Industry Group

thousand
tCO2e

-

4,360

4,065

Power Solution Group

thousand
tCO2e

-

8,982

5,729

Urban Development Group

thousand
tCO2e

-

241

350

Total

thousandtCO2e-381,254306,939Unit

FY2020

FY2021

FY2022

Assurance

Carbon dioxide (CO2)

thousand
tCO2

‐

333

349

★

Methane (CH4)thousand
tCO2e

‐

1,722

1,712

★

Dinitrogen monoxide (N2O)

thousand
tCO2e

‐

40

44

★

Hydrofluorocarbons (HFCs)

thousand
tCO2e

‐

0

10

★

Perfluorocarbons (PFCs)

thousand
tCO2e

‐

0

0

★

Sulphur hexafluoride (SF6)thousand
tCO2e

‐

0

0

★

Nitrogen trifluoride (NF3)

thousand
tCO2e

‐

N/A

N/A

★

Total

thousand
tCO2e

‐

2,096

2,114

★

Unit

GJ
Energy Consumption
Intensity*1
Consolidated

kl per m2

FY2020Unit

FY2021

FY2022

177,178

175,679

188,366

0.033

0.033

0.036

-

310,173,320

284,935,944

FY2021

FY2022GJ

Scope of Aggregation

Electricity
Consumption

FY2022-

Scope of Aggregation

Energy Consumption

FY2021

thousandtCO2e

Consolidated

Non-Consolidated

FY2020Natural Gas Group

Scope of Aggregation

Scope 1 (6.5 Gases)

Governance

FY2020Assurance★

★
Assurance

Non-Consolidated

MWh13,067

12,767

13,576★

Consolidated

MWh-5,309,580

5,241,290★

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Environment

SocialGovernanceNotes (Climate Change Data):
Effective from the FY2021, scope2 emissions were calculated on the GHG Protocol’s market-based method. In addition, as a result of reviewing therange of each scope in line with the GHG protocol, the emissions from franchises, previously included in scope 1 and 2 emissions, are excluded.
The following metrics were adopted as the basis for calculating greenhouse gas emissions.
[Direct CO2 emissions from fuel consumption]
The Greenhouse Gas Protocol (GHG Protocol) “Emission Factors from Cross Sector Tools (Mar 2017)” (WRI/ WBCSD)[Emissions of greenhouse gases from business activities other than CO2 from energy sources (6.5 gases)]
Greenhouse Gas Emission Calculation and Reporting Manual (Version 4.8) (January 2023, Ministry of the Environment and Ministry of Economy,
Trade and Industry)[Indirect CO2 emissions from electricity consumption, etc.]
Adjusted emission factor for each electric power company in Japan (revised in January 2023, Ministry of the Environment and Ministry of Economy,
Trade and Industry)(Emission factors for electric power companies outside Japan are individually confirmed, if unavailable, emission factors by country for 2020 from IEA
CO2 Emissions from Fuel Combustion (2022 edition))*1 MC(Non-Consolidated)'s energy consumption divided by the total floor area.

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Water Resources Data
Scope of Aggregation

Unit

Non-Consolidated (Head Officeand certain other offices inTokyo)

thousand m3

25

27

33

Industrial water, watersupplythousand m3

25,402

24,41026,130Groundwater

thousand m3

8,816

8,691

8,850

Rivers/lakes

thousand m3

20,996

20,17019,567

Ocean

thousand m3

37,84428,70933,682

Rainwater

thousand m3

0

0

0

Total

thousand m3

93,05881,98088,229Water Withdrawal
Consolidated

Water Recycling
VolumeFY2020

FY2021

FY2020

FY2022

FY2021

Assurance

Scope of Aggregation

Unit

Non-Consolidated (Head Office and certain other offices
in Tokyo)

thousand m3

-

3

3

Consolidated

thousand m3

790

3

4

Unit

Non-Consolidated (Head Officeand certain other offices inTokyo)

thousand m3

20

22

27

Ocean

thousand m3

30,286

23,612

24,313

Surface water

thousand m3

15,78014,21914,358

Subsurface / wellthousand m3

274

68

119

Off-site water
treatment

thousand m3

1,469

1,262

1,241

Beneficial / other use

thousand m3

105

115

121

Total

thousand m3

47,914

39,27640,152

Consolidated

158

FY2021

Assurance

Scope of Aggregation

Water Discharge

FY2020

FY2022★

FY2022

Assurance

Environment

SocialGovernancePrevention of Pollution Data
Scope of Aggregation

Toxic Waste Emissions Non-Consolidated*1

Unit

Specially controlled industrial
waste

kg

Scope of Aggregation

NOx, SOx, VOC
Emissions

FY2020

FY2021

118,047

Unit

FY2020320,096

FY2021NOx (Nitrogen Oxide)t661

SOx (Sulfur Oxide)t

VOC (Volatile Organic
Compounds)tm3N

Consolidated

FY2022

Assurance

159,775

FY2022

Assurance

969

552

34

44

30

27

122

22

0

0

0

*1 MC monitors production of specially controlled industrial waste under the Waste Management Law. This includes infectious waste produced by the inhouse clinic as well as waste PCB and PCB-contaminated items, etc. which are disposed sequentially within legally prescribed disposal periods.

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Efficient Use of Resources Data
Scope of Aggregation

Non-Consolidated(Head Office andcertain other offices inTokyo)
Waste Emissions
Consolidated (NonConsolidated (Head
Office) andsubsidiaries (Japandomestic))

Unit

Assurance

431

485

Recycling Volume

t

407

425

467

Recycling Rate

%

99

99

96

General waste from businessThousand
tons

157

154

167

Industrial waste

Thousand
tons

257

217

209

Total

Thousand
tons

414

371

376

Unit

Non-Consolidated (Head Office(A4 copy paperand certain other offices inconversion)
Tokyo)

Thousandsheets

Unit

Food waste recycling volume*1
Non-Consolidated（Business related）

FY2022

411

Scope of Aggregation

Other Recycling
VolumeFY2021

Emissions (General waste fromt
business + Industrial waste)

Scope of Aggregation

Paper Consumption

FY2020Mandatory container andpackaging recycling volume*2

FY2020

FY2021

15,180

FY202012,412

FY2021

FY2022

14,192

FY2022kg

164,700

169,600

95,200kg

22,391

21,33016,521★

★

Assurance★

Assurance*1 MC periodically reports on its food waste on a non-consolidated basis including amounts generated and recycled in accordance with Japan’s Food
Recycling Law, and works to recycle in line with targets the law stipulates that companies must strive to achieve.
*2 Regarding container and packaging waste discarded by consumers, the mandatory container and packaging recycling volume as an importer. Waste
produced by MC on a non-consolidated basis is not included. MC fulfills its recycling obligations pertaining to container and packaging waste on a nonconsolidated basis as an importer in accordance with Japan’s Containers and Packaging Recycling Law.

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SocialGovernanceSocialSocialHuman Rights

162

Labor Practices

177

Grievance Mechanism
Diversity Management

Well-being (Health & Productivity Management,

173
187

Occupational Safety and Health)201

Customer Responsibility

228

Human Resource Development
Community

Supply Chain Management

219
240

252

Environment

SocialGovernanceSocialHuman Rights
PolicyStructure

Human Rights and Environmental Due Diligence

Initiatives

Examples of External Collaboration

PolicyBasic Approach on Respect for Human Rights
MC believes that respect for human rights is fundamental to conducting a diverse range of businesses globally. MC promotes fair andsound business activities based on the Three Corporate Principles, which have served as the Company’s corporate philosophy since its
inception, and has been implementing initiatives to respect human rights in its Corporate Standards of Conduct, Social Charter, and the
Mitsubishi Corporation Code of Conduct.
As part of its Midterm Corporate Strategy 2024, MC has established its own Materiality, a set of material societal issues to address
through its business activities toward the goal of continuous creation of MC Shared Value. For MC, as a global company involved inbusinesses across a wide range of products and services worldwide, respect for human rights is a key management issue, and weaddress this under the material issues of "Promoting Stable, Sustainable Societies and Lifestyles” and "Respecting Human Rights in Our
Business Operations."
Moreover, after reorganizing and clarifying our approach on respect for human rights and to promote efforts to do so, we formulated thefollowing Human Rights Policy in February 2024, which has been approved by the Executive Committee and the Board of Directors.
References:

The Corporate Standards of Conduct, Mitsubishi Corporation Code of Conduct, and Mitsubishi Corporation Social Charter

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Human Rights Policy
1. Our commitment to respect human rights
We believe that respect for human rights is fundamental to our business *1 across the world. In an increasingly complex businessenvironment, we face various human rights challenges. We believe that respecting and promoting human rights are directly linked
to the sustainability of our business activities. Since our founding, we have been promoting fair and sound business activities
based on our corporate philosophy, the Three Corporate Principles *2 . The Three Corporate Principles guide us in striving toenrich society, both materially and spiritually, while contributing towards the preservation of the global environment. We believe
respect for human rights relates deeply rooted in our philosophy. Based on these beliefs, we have established this Human Rights
Policy (hereafter “this Policy”), which represents our commitment to respect human rights throughout our business activities.
*1 Mitsubishi Corporation_Our Business*2 The Three Corporate Principles

2. Scope of application
This Policy applies to all persons working for Mitsubishi Corporation. This Policy is shared with our group companies, and we will
work together to ensure our adherence to this Policy, as well as to respect human rights throughout our business operations.
3. Outreach to business partners
We recognize the importance of respecting human rights not only within our own business activities but also throughout our value
chain. We will work together with our business partners, including our suppliers, to respect human rights in line with this Policy.
4. Support and respect for international norms
We support international norms on human rights, including the International Bill of Human Rights (Universal Declaration of Human
Rights and International Covenants on Human Rights), the Declaration on the Fundamental Principles and Rights at Work of theInternational Labour Organization (ILO), the United Nations Guiding Principles on Business and Human Rights.
We comply with the local laws and regulations of the countries and regions in which we operate. In cases where there is a conflict
between internationally recognized human rights principles and the laws and regulations of the country or region in which we
operate, we will seek ways to honor the international principles.
5. Human Rights Due Diligence
We conduct human rights due diligence to identify, prevent and mitigate adverse impacts on human rights and engage withaffected stakeholders where relevant. We pay special attention to vulnerable or marginalized individuals and strive to identify
actual or potential adverse human rights impacts that our business activities have caused or contributed to.
6. Human rights issues related to business activities in our groupWe recognize the following as major human rights issues related to our business activities and will work to address them.
(1) Prohibition of discrimination
We prohibit any discrimination based on race, ethnicity, creed, religion, gender, gender identity, sexual orientation, nationality,
age, origin, mental or physical disability, illness, or any other grounds.
(2) Prohibition of inhumane treatment
We do not tolerate any forms of inhumane treatment including mental or physical abuse and harassment.
(3) Providing a safe and healthy working environment
We provide our employees with a safe, and healthy working environment.
(4) Respect for freedom of association and right to collective bargaining
We respect the right of employees to organize and to bargain collectively as a means to facilitate dialogue among employees
and management regarding, but not limited to, working conditions and wage levels.
(5) Securing appropriate working hours and wages
We properly manage our employees’ working hours. We compensate our employees at least the statutory minimum wage, andendeavor to pay at least the living wage.

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Environment

SocialGovernance(6) Prohibition of all forms of forced labor
We employ all of our employees at their free will and prohibit the use of forced labor.
(7) Prohibition of all forms of child labor
We do not employ children under the minimum working age and prohibit any forms of work that impairs their physical andmental development.
(8) Rights of indigenous peoples and local communities
We respect the rights of indigenous and local people as defined by the laws and international arrangements of the countries
and regions in which we operate. We will take measures that our business operation will not cause or contribute to cause threat
to the rights of indigenous and local people.
(9) Environment
Acknowledging the adverse impact of environmental destruction on human rights, we take measures to protect the global
environment within our business activities. This includes addressing climate change and preserving and restoring natural
capital, notably biodiversity.
(10) Diversity, Equity & Inclusion
We aim to foster an inclusive society where individuals with diverse values and personalities are respected and have equal
opportunities to participate and contribute.
7. Remedy
When we identify that our business activities have caused or contributed to adverse human rights impacts, we will remediate suchimpacts through legitimate processes.
In case if adverse impacts were directly linked to our operations, products, or services by a business relationship, we will endeavor
to correct and remedy the situation by using our leverage.
8. Grievance mechanism
We recognize that establishing a grievance mechanism, which consists of a series of processes to address internal and external
stakeholder grievances, is crucial to identifying adverse human rights impacts concerning our operations and value chain. We will
establish and operate grievance mechanisms to enable individuals and groups to show concerns about adverse human rights
impacts caused by our business activities and seek remedies.
9. Education and capacity building
We will provide the necessary training and capacity building to ensure that our officers, employees, suppliers, and other business
partners understand the importance of respecting human rights and put it into practice.
10. Information disclosure
We ensure transparency by regularly and appropriately disclosing information on our human rights efforts and their progress.
11. Stakeholder engagement
We engage with relevant stakeholders through sincere and constructive dialogue to understand, improve and address humanrights issues.
12. Governance and management system
Our human rights efforts are overseen by the Corporate Functional Officer responsible for sustainability efforts and practices.
Following deliberations by the Sustainability & CSR Committee, these efforts and practices are put forward or reported to the
Executive Committee*3 and the Board of Directors.
*3 Management decision-making body

Established in February 1, 2024

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SocialGovernance

Policies and Measures for Specific Matters
Policy on Children’s Rights
MC understands that children are especially vulnerable to human rights abuses and that special consideration to respect their rights isnecessary. MC also believes that respecting the rights of children allows them to better understand their own rights, which in turncontributes to their ability to become active members of society and leaders of future generations. With this understanding, MC supports
the United Nations and ILO treaties * regarding children’s rights and has established internal policies for its employees to ensure thatchild labor is not tolerated and that children’s rights are respected. In particular, MC supports the four principles of the Convention on the
Rights of the Child, including children’s survival and development rights, protection rights, and participation rights. As stated in the

Mitsubishi Corporation Policy for Sustainable Supply Chain Management, MC will not employ any person who is under the minimum
working age and will not engage in any employment that impairs children’s development. MC also supports the Children’s Rights andBusiness Principles, strives to prevent abuses of children’s rights in our business, and invests in social contributions throughphilanthropic efforts focused on children’s rights.
Through the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, MC also expects its suppliers to conform to thesestandards by refraining from employing anyone under the minimum working age, and prohibiting children to work in any way that impairs
their development.
* The UN Global Compact, the Convention on the Rights of the Child, the Children’s Rights and Business Principles, the Convention concerning theProhibition and Immediate Action for the Elimination of the Worst Forms of Child Labour (ILO Convention No. 182), etc.

Policy on Indigenous Peoples’ Rights
In the context of its overall commitment to respecting human rights, MC pays special attention to upholding the rights of indigenous
peoples, acknowledging their unique social and legal status under national and international laws, as well as their unique histories andcultural contributions throughout the world. When examining new business investment proposals, MC takes into consideration how thebusiness operations may impact the rights of indigenous peoples and will consult with the relevant stakeholders. MC supports the United
Nations Declaration on the Rights of Indigenous Peoples and the Indigenous and Tribal Peoples Convention (ILO Convention No. 169).

Policy on the Appointment of Armed Security
MC understands the importance of protecting its employees from dangers such as violence and preventing theft of assets throughout its
business operations, and retains armed security services when deemed necessary. MC believes that the abuse of weapons by security
forces involves a potential risk of human rights abuse. With regard to retaining armed security services, in addition to complying with thelaws of the countries and regions in which it operates and adhering to international standards, MC also supports relevant international
agreements*.
* The UN Global Compact, the Voluntary Principles on Security and Human Rights, the UN Code of Conduct for Law Enforcement Officials, the UN Basic
Principles on the Use of Force and Firearms by Law Enforcement Officials, etc.

Response to the UK Modern Slavery Act 2015
MC issues MSA statements in response to the UK Modern Slavery Act 2015, which requires companies to disclose actions taken to
mitigate modern slavery in their supply chains.

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SocialGovernance

Structure
In MC’s management framework, human rights initiatives are overseen by the Corporate Functional Officer (CSEO) and Member of theBoard/Corporate Functional Officer (CAO). The Sustainability Department and Global Human Resources Department plan and draft any
related policies and measures. Following deliberations by the Sustainability & CSR Committee and Human Resources Development
Committee, items are put forward or reported to the Executive Committee and the Board of Directors.

Officers in Charge

Deliberative Body
(A subcommittee under the Executive Committee, amanagement decision-making body)

Departments in Charge

Reference:

Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO)
Yutaka Kashiwagi (Director, Executive Vice President, Corporate Functional Officer, IT, CAO, Chief Compliance
Officer, Officer for Emergency Crisis Management Headquarters
Sustainability & CSR Committee, Human Resources Development (HRD) Committee
Important matters related to human rights deliberated by the committees are formally approved by the Executive
Committee and put forward or reported to the Board of Directors based on prescribed standards.
Sustainability Dept., Global Human Resources Dept.

Diagram of the Sustainability Promotion Framework

Consultation Desk Framework
Internal Consultation Desk
MC has established various consultation systems, including an internal human rights consultation desk and the whistleblowing system,so that any human rights concerns can be raised. These systems ensure that human rights-related concerns can be raised any time by
mail, telephone or in person. These systems can be used anonymously and in confidence, ensuring the safety of the informant (nosubsequent dismissal or other disadvantageous treatment), and that matters are handled and investigated by persons who have noconflict of interest in the matter. Solutions are offered with the utmost consideration of the informant’s wishes. Employees are informed
about the systems during human rights awareness training at the start of employment, and information related to the systems is posted
at all times on MC internal bulletin boards. MC also covers human rights issues in its annual compliance e-learning program to which all
executives and employees (including full-time and part-time employees, secondees and temporary staff) are required to take. In
addition, as part of a Groupwide compliance program, MC provides human rights training with information on the existence of thesystems to employees who are transferred or seconded to affiliated companies.
In FY2022, MC received a total of 80 reports under the whistleblowing system, of which 46 were related to human rights, includingharassment, health and safety, labor management, personal data, etc. Compliance Officers shall conduct necessary investigations,giving due consideration to not infringing on the human rights and reputation of the persons involved. The results of the investigations
are reported to the Chief Compliance Officer and used to plan and implement measures to prevent recurrence.

Consultation Desk for External Stakeholders
MC implements human rights and environmental due diligence on its operations as part of its commitment to identifying, preventing andmitigating any human rights violations or negative environmental impacts caused by the MC Group’s business activities, as well as tofulfill its responsibilities. As part of this due diligence, the Group has established and manages a consultation desk, which serves as apoint of contact for external stakeholders to consult on cases where the MC Group's business activities are causing, or could potentiallycause, a negative impact on human rights and/or the environment.
References:

Whistleblowing System, Grievance Mechanism

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Environment

SocialGovernanceDialogue with Stakeholders
MC has established the Sustainability Advisory Committee which consists of six external experts. MC regularly seeks the diverse
perspectives of this committee regarding MC’s human rights initiatives and other sustainability-related matters. In addition to regularcommittee meetings, committee members also visit business sites on an annual basis in order to deepen their understanding of MC’s
sustainability efforts and provide advice from their own professional viewpoints.
Reference:

Sustainability Advisory Committee

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Environment

SocialGovernance

Human Rights and Environmental Due Diligence
Identifying Human Rights and Environmental Risks
MC’s current activities have expanded far beyond its traditional trading business to include project development, production, andmanufacturing operations, working in collaboration with our trusted partners around the globe. Furthermore, since MC handles a wide
range of products and services around the world, we believe that it is important to identify and analyze the negative impacts of ourbusiness on human rights and the environment, to ensure that such impacts are avoided/mitigated, and to fulfill our responsibilities. MC
is conducting human rights and environmental due diligence with this in mind.
Value Chain of MC’s Business Activities

Employees of MC and MC Group companies: As MC believes that respect for human rights is fundamental to developing ourvarious businesses globally, we have formulated a Human Rights Policy that organizes and clarifies our approach on respecting
human rights, based on which we promote specific efforts to respect human rights. All MC Group companies share a common
philosophy. With regard to labor practices, MC stipulates the International Labour Standards of the International Labour Organization(ILO) as the relevant regulations underpinning the compliance requirements detailed in the Code of Conduct. Furthermore, fromFY2022, in order to strengthen efforts to respect human rights throughout the MC Group, we have added questions regarding humanrights (existence of human rights policies, identification of risk of human rights violation, etc.) to our annual survey for collecting
sustainability related information/data from our subsidiaries and affiliates.
References:

Corporate Standards of Conduct, Mitsubishi Corporation Code of Conduct, Mitsubishi Corporation Social Charter, Human Rights Policy
Labor Practices

Business Management: When reviewing investment and loan proposals, MC conducts a comprehensive screening process which
considers not only economic factors, but ESG impacts as well. From the viewpoint of human rights, MC’s assessments andconsiderations are informed by human rights risks that need to be addressed from the perspectives of the severity (scale of risk, theirscope, and how remediable they might be) and likelihood (situation in each country, industry, and region of procurement) of potential
negative impacts on MC’s stakeholders. MC’s risk management approach is informed by the UN Guiding Principles on Business andHuman Rights, the International Finance Corporation (IFC) Guidelines and the Japan Bank for International Cooperation (JBIC)
Guidelines for Confirmation of Environmental and Social Considerations. Through consolidated environmental and social surveys,
besides screening new investment and exit proposals, MC also strives to make improvements within existing business subsidiaries
and affiliates by monitoring their management practices. In FY2023, MC’s Internal Audit Department conducted thematic audits onhuman rights and environment-related items when auditing MC Group companies. MC will strengthen its human rights andenvironmental due diligence on a consolidated basis by checking a wider range of human rights and environment-related items andcommunicating directly with Group companies.
References:

Incorporating Sustainability into Individual Projects
Collecting Sustainability Information on a Consolidated Basis

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Environment

SocialGovernanceTrading Business: Regarding supply chain risk management, the Mitsubishi Corporation Policy for Sustainable Supply Chain
Management outlines actions to address human rights, labor rights, environmental issues, etc., including the prohibition of forcedlabor and child labor, and MC expects its suppliers to support, understand, and implement this policy. In addition, MC conducts
human rights and environmental due diligence on its supply chain every year through the Mitsubishi Corporation Sustainable Supply
Chain Survey to confirm compliance with the policy. The due diligence is conducted through the following process: 1) report of due
diligence policy to the Board of Directors at the beginning of each fiscal year, 2) conduct a survey to assess the results of transactions
led by each Business Group, 3) conduct dialogues with stakeholders on the survey results, and 4) review.
Reference:

Sustainable Supply Chain Surveys

Human Rights and Environmental Due Diligence process for Trading Business

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Environment

SocialGovernanceInitiatives
Employee Training
We provide training (such as programs geared toward specific levels of management including those for new employees, as well as
training on trading practices) on our corporate philosophy, including respect for human rights and relevant guidelines.

Training for all officers and employees: MC’s policies and guidelines, including those related to respecting human rights through its
businesses and supply chains, can be viewed on the Company intranet at any time, and are communicated to all new recruits andreinforced at various internal training sessions on a regular basis, including sustainability seminars for each Business Group. These
policies and guidelines are also conveyed to employees of overseas offices and Group companies at various internal training
seminars on a regular basis. In addition, content related to human rights infringement and the Modern Slavery Act are incorporated
into an e-learning program which all officers and employees are required to take every year, in order to cultivate a better
understanding toward modern slavery in all employees. Our results for FY2023 are as follows.
Scope

Percentage of Training Participants＊

Total Time Spent

Non-Consolidated Officers and Employees

5 hours

97.1%

Overseas Training (various level-specific training in Europe): MC provides regular training through workshops and seminars toboard members, management, and employees to deepen their understanding on the importance of respecting human rights.
Furthermore, MC is working to provide these workshops to as many of its employees in the UK as possible, such as holding thetraining at certain UK-based associates. Further details are available via the following link:
https://www.mitsubishicorp.com/gb/en/csr/slavery/

Training for MC Group employees: InSeptember 2023, we held a business and human rights seminar for MC employees andsuppliers of its Group companies. A total of 159 people representing approximately 80companies attended this event, which saw
outside lecturers provide an overview of the various international standards forming the foundation of human rights due diligence, as
well as specific processes in this field. We also took this opportunity to reiterate our basic approach on respect for human rights andefforts to repect them. MC will continue working to enhance its human rights and environmental due diligence activities on aconsolidated basis.
＊ Average rate of participation for each training course

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Educational Support for Indigenous Youths in Australia through the Clontarf
Foundation
From FY2023, MC is supporting the “Clontarf Academy National Participant Funding Program,” which assists self-reliance of theindigenous youths. The Clontarf Foundation aims young Aboriginal and Torres Strait Islander men to finish the secondary education by
opening the Clontarf Academy in public schools all around Australia, offering a program to assist them to achieve better educational
outcomes.

Friendship Camp for Mothers and Children
MC has been holding the Friendship Camp for Mothers and Children since 1974. The camp is catered to single mothers and theirchildren, and gives them a chance to interact with nature. Through these activities, MC aims to help the next generation to play an activerole in society. The employee volunteers who accompany the campers train and hold meetings for about three months prior to the campso that the participating parents and children can maximize their time and enjoy a fun and safe experience in nature. In FY2023, 50
mothers and children from 20 single-parent households living in Tokyo participated in the camp in Minamitsuru District, Yamanashi
Prefecture.
To date, 17,951 mothers and children and 1,194 employee volunteers have participated. The camp is one of MC’s flagship philanthropic
activities and aligns with MC’s focus on long-running initiatives and employee participation.

Friendship Camp for Mothers and Children:
Crossing a lake in a large canoe

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SocialGovernance

Examples of External Collaboration
Examples of Collaboration with International Organizations
MC regularly participates in the UN Forum Business and Human Rights in order to learn the latest developments in this field. At theNovember 2023 meeting of the forum in Geneva, Switzerland, staff from MC engaged in discussions on human rights initiatives withhuman rights experts and other attendees.
Staff from MC also participated in the B+HR Academy in October 2022, together with representatives from MC Group subsidiarycompanies Toyo Reizo Co., Ltd., MC Agri Alliance Ltd., and MC Fashion Co., Ltd. The B+HR Academy is a human rights due diligence
training program for Japanese companies run by the United Nations Development Programme. It consists of a two-day course of
lectures from both Japanese and overseas experts as well as group discussions among participants. The MC staff who participated inthis program were able to gain an overall appreciation of the various international standards that serve as the foundation for humanrights due diligence, as well as a deeper understanding of the specific processes that are used in this field.

Participation in Initiatives
Through its participation in the World Business Council for Sustainable Development (WBCSD) and the Global Compact Network Japan(GCNJ), MC exchanges information with other companies and participates in initiatives to strengthen the exchange of information andbest practices with leading companies and apply such information to business practices. We also actively participate in seminars andtraining programs organized by Shift Project Ltd., a group specializing in research relating to the UN Guiding Principles on Business andHuman Rights, and the British Institute of International and Comparative Law (BIICL), an independent, multi-stakeholder research
institute.
References:

WBCSD, United Nations Global Compact (see the Participation in Initiatives page for further information)

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Environment

SocialGovernanceSocialGrievance Mechanism
PolicyProcessing Inquiries through the Grievance Mechanism

Submitting Inquiries

Process After Receiving an Inquiry

PolicyMC implements human rights and environmental due diligence as part of its commitment to identifying, preventing and mitigating any
human rights violations or negative environmental impacts caused by the MC Group’s business activities. As part of this due diligence,
we have established and manage a consultation desk, which serves as a point of contact for external stakeholders to consult on cases
where the MC Group’s business activities are causing, or could potentially cause, a negative impact on human rights and/or theenvironment.
Reference:

Human Rights and Environmental Due Diligence at MC

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SocialGovernance

Processing Inquiries through the Grievance Mechanism
Eligible Users
MC responds to inquiries from 1) individuals who have suffered negative human rights or environmental impacts (harm) caused by the
MC Group’s business activities, 2) representatives acting on behalf of individuals who have suffered impacts (harm), 3) organizations,groups or other entities that have a direct relationship with individuals who have suffered impacts (harm), and 4) organizations, groups orother entities that have no direct relationships with individuals who have suffered impacts (harm) but are active in related fields. While
we also accept anonymous reports in line with our commitment to identifying all issues, it should be noted that our ability to investigate
or respond to matters reported anonymously may be limited.

Eligible Topics
We respond to inquiries concerning specific cases where the MC Group’s business activities are causing, or could potentially cause, anegative impact on human rights and/or the environment in violation of international norms or local laws. However, the scope of thesystem does not include matters that are not related to human rights violations or environmental impacts in violation of international
norms or local laws, such as dissatisfaction with personal relationships with colleagues in the workplace, HR benefits, or product quality
matters.

Eligible Product Categories
We respond to inquiries concerning the following products* handled by the MC Group that we have identified as having highenvironmental or social risks and that are subject to our Sustainable Supply Chain Survey. (Please see the Supply Chain Management

page for further information regarding the selection process for this survey.)* Beginning in 2024, tea will be excluded from the Sustainable Supply Chain Survey and will also be excluded from the scope of the Grievance
Mechanism.

LNG, plastic (PP/PE/etc.), wood (biomass), paper, copper, zinc, coal, iron ore, tin, tantalum, tungsten, gold, chicken, pork,
soybean, sugar cane (sugar, raw sugar), shrimp, tuna, cacao, coffee, natural rubber (tires), and apparel

Eligible Companies
In addition to MC and MC Group companies, we also respond to inquiries concerning suppliers covered by the Sustainable Supply
Chain Survey. Fundamentally, the survey covers the primary suppliers of MC itself, our wholly owned subsidiaries and any groupcompanies with “Mitsubishi Corporation” or equivalent words in their name. Secondary suppliers of certain products are also included.
(Please see the “Sustainable Supply Chain Survey” section of the Supply Chain Management page for further information.)

Handling of Non-Eligible Inquiries
Please be aware, we are unable to respond to inquiries that do not meet the above criteria for eligible users, subjects, products andcompanies.

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Environment

SocialGovernance

Submitting Inquiries
Inquiries under the Grievance Mechanism can be submitted through an online form. Please click here to access the inquiry website.
Note: This is not an emergency service and should not be used to report situations that pose a direct threat to life or property. If emergency assistance isrequired, please contact official emergency services.

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Environment

SocialGovernance

Process After Receiving an Inquiry
Once an inquiry has been received, MC will investigate and respond to the situation in accordance with the process described below.
We exercise the greatest care, including maintaining confidentiality and prohibiting disadvantageous treatment of the party who
submitted the inquiry. Access to information regarding the content of the inquiry is limited to those (including external parties in somecases) who have reasonable grounds to view the information according to the circumstances of the inquiry.

176

Environment

SocialGovernanceSocialLabor Practices
1. Labor Standards, Labor Environment and Related Matters
PolicyStructure

Initiatives

Relevant Data

2. Employee Relations
Policy (Freedom of Association and Collective Bargaining)

Structure

Initiatives

Performance

1. Labor Standards, Labor Environment and Related Matters
PolicyBasic Approach to Human Resources
As a party to individual businesses and the industries on which they are built, MC has sincerely taken on the challenge to address
societal challenges and achieve sustainable growth together with society through its business activities, while anticipating the needs ofthe times. Recognizing these distinctive qualities of our business, we consider the diverse and versatile human resources that havesupported our growth as a source of value creation, and will continue to actively invest in our human capital. In response to the further
diversification and globalization of its businesses, the MC Group is working to develop human resources and support their success on aGroup-wide and global basis with the aim of “Fostering Vibrant Workplaces That Maximize the Potential of a Diverse Workforce”, part ofMC’s Materiality. This is to enable MC’s diverse and versatile group of employees, regardless of gender, nationality and otherattributes, to demonstrate their unique abilities to the fullest extent possible.

Policy on Labor Practices(1) MC’s Policy on Labor Practices
MC believes that consideration for human rights is essential in the course of undertaking various businesses worldwide. Based on thisbelief, MC’s Code of Conduct stipulates that MC will respect human rights and will not engage in any form of discrimination orharassment. With regard to labor practices, MC stipulates the International Labour Standards＊ of the International Labour Organization(ILO) as the relevant regulations underpinning the compliance requirements detailed in the Code of Conduct. Furthermore, MC adheresto the legal minimum wage and has adopted a uniform compensation structure for employees of different genders with the same
qualifications and same level of professional duties.
Reference:

Basic Approach on Human Rights＊ ILO International Labour Standards
The International Labour Organization (ILO) was founded in 1919 on the basic principle that universal and lasting peace can be established only if it isbased on social justice. Since its establishment, one of the most important functions of the ILO has been the formulation of international labor
standards through Conventions and Recommendations. The ILO has a tripartite structure with workers and employers participating as equal partners
with governments. Conventions and Recommendations are adopted at the International Labour Conference of the ILO and ratifying States commit toobserving them. The ratifying States also use Recommendations to guide their national policies, lawmaking and actions. Since its founding, the ILO
has adopted Conventions and Recommendations that cover nearly every issue affecting the working world. The ILO has established four fields andeight conventions as fundamental labor standards (see table below). MC endorses all of these fields and conventions, and makes specific reference tocompliance with them in the Mitsubishi Corporation Code of Conduct.

177

Environment

SocialGovernance(2) Participation in the UN Global Compact
MC joined the UN Global Compact in 2010, declaring our commitment to the ten universal principles in four fields: human rights, labor,
environment and anti-corruption. Guided also by the spirit of the Three Corporate Principles, we are promoting initiatives in each ofthese four areas.
Reference:

Support for the UN Global Compact

The Four Fields and Eight Conventions Constituting Fundamental Labor Standards
Freedom of association and the effective
recognition of the right to collective bargaining

Convention concerning Freedom of Association and Protection of the Right to Organise (No. 87)
Convention concerning the Application of the Principles of the Right to Organise and to Bargain Collectively (No.
98)

Elimination of all forms of forced or compulsory
labor

Convention concerning Forced or Compulsory Labour (No. 29)
Convention concerning the Abolition of Forced Labour (No. 105)

Effective abolition of child labor

Convention concerning Minimum Age for Admission to Employment (No. 138)
Convention concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child
Labour (No. 182)

Elimination of discrimination

Convention concerning Equal Remuneration for Men and Women Workers for Work of Equal Value (No. 100)
Convention concerning Discrimination in Respect of Employment and Occupation (No. 111)

178

Environment

SocialGovernance

Structure
Officer in Charge
Deliberative Body

Yutaka Kashiwagi (Director, Executive Vice President, Corporate Functional Officer, IT, CAO, Chief Compliance
Officer, Officer for Emergency Crisis Management Headquarters)

management decisionmaking body)

Human Resources Development (HRD) Committee
Important matters related to labor practices deliberated by the committees are formally approved by the Executive
Committee and put forward or reported to the Board of Directors based on prescribed standards.

Department in Charge

Global Human Resources Dept.

(A subcommittee under the Executive Committee, aRisk Management
When reviewing and making decisions on loan and investment proposals, MC conducts a comprehensive screening process which
considers not only economic aspects, but ESG factors as well, including labor relations, labor management and labor rights. Besides
screening new investment and exit proposals, MC also strives to make improvements to existing business investments by monitoring
their management practices.

179

Environment

SocialGovernanceInitiatives(1) Conducting Fair Recruitment Activities and Providing Job Opportunities
MC’s greatest asset is its human resources, and MC conducts activities to hire new graduates and mid-career employees every year.
Our latest recruitment history is as follows. Based on recent circumstances, MC is also utilizing online hiring practices to conduct
extensive screening of university and graduate students from both Japan and abroad. In addition, MC carries out interviewer training,
including by external experts, each year in order to ensure appropriate screening practices.
Recruitment history (separate)(Unit: persons)
FY2019FY2020

Number of new graduates recruited
Male
FemaleFY2023

127

123

120

127

92

89

88

89

(70.77%)(70.08%)(71.54%)(74.17%)96(75.59%)

38

38

35

31

(29.23%)(29.92%)(28.46%)(25.83%)31(24.41%)

7

-

-

-

-

13

21

16

43

-

39
(90.70%)-

Number of career hires

FemaleFY2022

130(The number of general office workers)＊

Male

FY202112

17

13(92.31%)(80.95%)(81.25%)1

4

3(7.69%)(19.04%)(18.75%)4(9.30%)

-

9%

14%

12%

26%

-

Career recruitment ratio

In addition to recruitment activities, MC conducts hands-on employment workshops offering career counseling to university and graduate
students.
＊ Recruitment of general office workers (formerly called "Business support staff") was postponed for FY2020-2023, so this has been marked with “-”.

(2) New Work Styles Befitting MC
We are making determined attempts to pursue new work styles which allow us to enhance work productivity and efficiency while
delivering high results and performance. The initiative aims to ensure each organization and individual autonomously practices work
styles that best suit respective needs.
While taking into consideration the uniqueness of each organizational and individual initiative due to diversified business environments,
industries and other factors they face, we aim to achieve an average annual paid leave utilization rate of 70% or more by systematicallyencouraging personnel throughout MC to take their annual paid leave. In addition, we formulate and implement individual improvement
measures that require overtime-heavy organizations to develop more efficient labor-saving practices. As a result, in the FY2022, MCcame very close to achieving those objectives, with employees on average taking 67% of their paid leave and working 29.9 hours ofovertime per month on a non-consolidated basis.
Our efforts extend to a work environment that enables diverse employees to thrive professionally while fostering an organizational
culture in which performance is evaluated fairly on the basis of results.

180

Environment

SocialGovernance(3) Respect for Human Rights
MC’s Corporate Standards of Conduct emphasize respect for human rights, while the Code of Conduct and Social Charter stipulate that
MC will respect human rights, not engage in any form of discrimination or harassment, not engage in discrimination on the basis of race,
ethnicity, creed, religion, gender, gender identity, sexual orientation, national or regional origin, age, physical or mental impairments,
illness or any other grounds, and respect the cultures, customs, and languages of other countries and regions.
MC has established a Basic Policy on Preventing Harassment, which is disseminated widely throughout MC. "Harassment" is defined in
the Basic Policy as encompassing sexual harassment and “power harassment,” as well as maternity harassment (disadvantageous
treatment related to pregnancy, childbirth, childcare leave, family care leave and so on). It also states that harassment encompasses
verbal or physical conduct of a sexual nature, regardless of sexual orientation or gender identity such as LGBT.
Moreover, MC has established human rights help desks internally and outside MC. The help desks operate around the clock, providing
consultations via e-mail, telephone, in person or by other means.
MC conducts human rights training for new employees, an annual e-learning course for all employees.
MC also conducts lectures that focus on the issue of harassment at times including when new general managers or Team Leaders
are appointed.
Employees dispatched to MC affiliate companies also receive human rights training (including topics such as prevention of forced laborand child labor, etc.).

181

Environment

SocialGovernanceRelevant Data
FY2020
Annual average actual working hours＊1

FY2021
1984.3 hours

2002.5 hours

1993.8 hours

27.2 hours

30.4 hours

29.9 hours

55%

60%

67%

0

3

1

Approx.7%

Approx.8%

Approx.9％

450 people (20 people)

435 people (19 people)

474 people (12 people)

Monthly average overtime hours＊1
Percentage of annual paid leave taken＊2
Number of violations of the Labor Standards
Act＊3
Percentage of temporary employees
Average number of temporary employees(male)FY2022

Percentage of retirees for personal reasons (as of the end of March)
FY2020Male

Female1.4%

1.4%

FY2021
Total

Male
1.4%

Female1.5%

1.3%

FY2022
Total

Male
1.5%

Female
1.3%

1.2%

Total
1.3%

Ratio of female employees by employee category (permanent / non-permanent) (as of the end of March)
FY2020

FY2021

FY2022

Permanent employee

26%

26%

26%

Non-permanent employee

21%

22%

22%

Ratio of employees by age bracket (as of the end of March)
FY2020

FY2021

FY2022

20s

16%

16%

15%

30s

27%

28%

29%

40s

22%

22%

22%

50s

33%

33%

34%

60s

1%

1%

1%

Reference:

About other various personnel data

＊1 Employees at the Head Office and Japanese branches (excluding managers, corporate advisers and contract employees).
＊2 Employees at the Head Office and Japanese branches (excluding secondees from other companies).
＊3 Employees at the Head Office and Japanese branches.

182

Environment

SocialGovernance2. Employee Relations
Policy (Freedom of Association and Collective Bargaining)
Basic Approach
MC is engaged in various forms of dialogue with the MC Staff Union at MC-wide level and individual group level. This dialogue isundertaken to reflect in management the opinions and awareness of issues of MC staff who are involved in operations on the ground.
Through this process, MC seeks to enhance the performance of each employee whilst enhancing the business performance of MC andfulfilling its public mission to create a more positive work environment. The results of this dialogue are taken into consideration by MC in
the course of formulating and implementing various policies.

Policy on Freedom of Association and Collective Bargaining
MC has always respected the freedom of association and the right to collective bargaining recognized by the Constitution and various
laws and regulations of Japan. MC has entered into a union shop agreement with the Mitsubishi Corporation Staff Union (“MC Staff
Union”), which was formed in 1970. Based on the agreement, all eligible employees are required to join the union, except for thosequalified for management-level positions and those deemed to be non-union members based on individual agreements, taking into
account the characteristics of their duties and other conditions. Guided by the policy of respecting the freedom of association and rightto collective bargaining, MC’s operating companies also comply with and respect the laws and regulations and labor practices of their
host countries.

Collective Bargaining
MC has established conditions related to collective bargaining between MC and the MC Staff Union, beginning with labor conditions, aswell as related operational procedures. Where necessary, MC has a process in place for both sides to reach agreements by increasing
their understanding of the issues through discussions undertaken in good faith. In recent years, MC has engaged in collective
bargaining between MC and the MC Staff Union in the process of reviewing compensation and personnel systems and revising annual
income.

183

Environment

SocialGovernance

Structure
Officer in Charge
Deliberative Body

Yutaka Kashiwagi (Director, Executive Vice President, Corporate Functional Officer, IT, CAO, Chief Compliance
Officer, Officer for Emergency Crisis Management Headquarters)

management decisionmaking body)

Human Resources Development (HRD) Committee
Important matters related to labor practices deliberated by the committees are formally approved by the Executive
Committee and put forward or reported to the Board of Directors based on prescribed standards.

Department in Charge

Global Human Resources Dept.

(A subcommittee under the Executive Committee, a

The MC Staff Union had 3,015 members (representing an 54% participation ratio) as of April 1, 2023. All eligible employees join the MC
Staff Union, except for those considered as non-union members based on agreements between the MC Staff Union and MC (including
those qualified for management-level positions and those deemed to be non-union members in keeping with the characteristics of theirduties based on individual agreements). The MC Staff Union is led by an executive chairman elected from among the union members.
The MC Staff Union and MC share the following basic philosophy: “Recognizing the public mission of companies, both the workforce
and management will endeavor in earnest to achieve the sound development of MC and to improve the economic and cultural standingof union members.” Guided by this philosophy, the MC Staff Union carries out a variety of initiatives.

Risk Management
When reviewing and making decisions on loan and investment proposals, MC conducts a comprehensive screening process which
considers not only economic aspects, but ESG factors as well, including labor relations and labor management. Besides screening newinvestment and exit proposals, MC also strives to make improvements to existing business investments by monitoring their
management practices.

184

Environment

SocialGovernanceInitiatives
The MC Staff Union and MC hold labor management meetings and conferences based on the “Basic Agreement between MC and theUnion” concluded by both parties, and conduct proposals, status reports and discussions concerning the mutual recognition of issues.
These meetings and discussions aid in ensuring proper business management by reflecting the opinions of staff involved in daily duties
at the corporate level and the level of each organization.

(1) Labor Management Meetings
The aims of these meetings are to facilitate communication on various matters of mutual interest between the MC Staff Union and MC
through the exchange of views, to reflect the union members’ broad range of opinions aimed at stimulating better management policies/ business performance, and to create a more positive workplace. Numerous labor management meetings are held at the levels of each
office, business department, division and business group. Not only are the matters discussed in the meetings put to effective use in the
management of each organization, they are also placed on the reporting and discussion agenda of Company-wide labor management
meetings held once a year, including meetings with the President and CEO, meetings with the Corporate Functional Officer for Human
Resources, meetings to discuss yearlong business performance, and meetings to discuss interim business performance.

(2) Conferences
Conferences are held to facilitate communication between the workforce and management on specific matters through the exchange ofviews and to reflect the union members’ broad range of views on energizing MC through various management policies.
In FY2023, three conferences were held on topics including Evaluation/Compensation, Careers, and DE&I. The MC Staff Union
presented reports and proposals to the relevant internal departments based on questionnaires and discussions held within the union,and certain proposals have been implemented by MC.

185

Environment

SocialGovernance

Performance
Agreement on Collective Bargaining
Under the Basic Agreement between MC and the Union entered into by the two parties, collective bargaining covers (1) mattersconcerning work conditions and (2) other matters for which collective bargaining is deemed necessary by the MC Staff Union and MC.
Accordingly, MC and the MC Staff Union have undertaken collective bargaining on the matters described below.
FY2015

Revision of annual income (3 collective bargaining sessions)

FY2016None

FY2017

Revision of annual income (1 collective bargaining session)

FY2018

Revision of HR System/Remuneration System (4 collective bargaining sessions)

FY2019None

FY2020

Revision of annual income (3 collective bargaining sessions), revision of staff system (1 collective
bargaining session)

FY2021None

FY2022

Revision of annual income (3 collective bargaining sessions)

FY2023None

In addition, matters deemed to be collective bargaining agreements have been established based on the Basic Agreement between MC
and Union and individual labor management agreements. These collective bargaining agreements cover all employees of MC.

186Environment

SocialGovernanceSocialDiversity Management
PolicyStructure

Initiatives

Relevant Data

Evaluation by Society

PolicyA Flexible and Powerful Organization Capable of Adapting to Changing Business
Environments
The MC Group’s global workforce is made up of a diverse group of employees in terms of lifestyles and values. As the MC Group’sbusinesses rapidly become more global and diverse, MC recognizes that it will be essential to drive growth while encouraging a diverse
range of employees to share common values and engage in healthy competition with one another. Doing so will be vital for achieving
sustainable corporate growth. We believe that the significance of diversity management at the MC Group lies in building a strongorganization with the flexibility to adapt to changing business environments. In sharing the spirit of its guiding philosophy, the Three
Corporate Principles, the MC Group aims to:
Recruit and apply its broad professional expertise without discrimination.
Reap the benefits of workforce diversity by embracing and applying different perspectives and ideas to its management practices,business creations and regional developments.
Improve organizational performance by ensuring an inclusive professional work environment that maximizes the abilities of a diverse
workforce.

[Specific Initiatives]
Reviewing work styles with an emphasis on work-life balance
Building a corporate culture that embraces diverse values
Supporting employees with childcare, family care and other family responsibilities
Supporting women’s careers
Engaging expertise of senior employees
Engaging expertise of employees with impairments
Engaging expertise of employees regardless of nationality

187

Environment

SocialGovernance

Establishment a company-wide Diversity, Equity, and Inclusion (DE&I) working group
Our “diversity and versatility” is the foundation for DE&I at MC. Establish a company-wide working group directly under MC’s President
and promote the development of an environment and organizations where all employees can flourish by fully demonstrating theirindividual strengths. Proceed to study/implement initiatives that empower employees to succeed by respecting/accepting theirindividuality and leveraging our versatility.

188

Environment

SocialGovernance

Structure
Officer in Charge
Deliberative Body

Yutaka Kashiwagi (Director, Executive Vice President, Corporate Functional Officer, IT, CAO, Chief Compliance
Officer, Officer for Emergency Crisis Management Headquarters)

management decisionmaking body)

Human Resources Development (HRD) Committee
Important matters related to labor practices deliberated by the committees are formally approved by the Executive
Committee and put forward or reported to the Board of Directors based on prescribed standards.

Department in Charge

Global Human Resources Dept.

(A subcommittee under the Executive Committee, aReference:

Diagram of the Sustainability Promotion Framework

In 2007, MC established its first organization specifically dedicated to diversity management in the Global Human Resources
Department (originally named the Work Environment Support Office, it was renamed as the Diversity Management Promotion Office thefollowing year). Thereafter, following reorganization, MC established the Health Promotion, DE＆I Team in April 2021. This team strives
to enhance and expand support measures for employees balancing work with childcare or family care responsibilities. It also considers
measures such as initiatives to create welcoming workplaces for non-Japanese employees. MC will continue to undertake initiatives tofurther improve its work environments in order to ensure that each employee in its diverse workforce is able to keep motivated andachieve his or her own full potential.

189

Environment

SocialGovernanceInitiatives
Supporting Employees with Family Responsibilities
MC has been improving its internal systems to enable employees to better balance matters such as childcare and family care with theircareers. MC will continue to focus on building a corporate culture that embraces diverse work styles in order to create a comfortable andsupportive atmosphere that understands and encourages the active utilization of these systems.

Support for Balancing Career and Childcare
MC seeks to put the support of the entire Company behind employees who are balancing their work with maternity and paternity rolesand childcare responsibilities. For this, MC is working to upgrade and expand various systems available for use by both men andwomen.

Maternity/Paternity and Childcare Systems

190

Environment

SocialGovernance

Establishment of MC’s Childcare Concierge within the Global Human Resources Department
To help employees smoothly return to work from maternity and paternity leave, MC has set up the Childcare Concierge within its Global
Human Resources Department. This service provides employees with information on daycare facilities, babysitters, services for children
to continue their studies after regular school hours, etc. It also provides consultations about pediatric health and other concerns that
employees may have about raising children.

Children’s Daycare Facilities & Services
MC has secured the services of a nearby daycare facility so that employees can smoothly return to work when they wish. In addition,
MC has also secured the services of sick-child daycare facilities so that employees always have access to a daycare facility andbabysitters who they can rely on confidently when their children are ill. In addition, MC has been providing the MC Gakudo service for
employees with children in elementary school. This service provides day camps for children during long vacation periods from school.

Paid School Events Leave, Staggered Work Hours, Flex-Time Work and Telecommuting (Working from Home)
MC has established a system for paid school events leave, which allows employees to take time off to attend official school and daycare
events, such as entrance and graduation ceremonies. In addition, employees with children can utilize systems such as staggered work
hours and flex-time, and MC is further supporting employees balancing work and childcare by implementing a system for telecommuting(working from home).

Encouraging Work-Style Diversity and Work-Life Balance
MC has distributed its Childcare Support Handbook to all MC employees, as part of its efforts to promote understanding and foster a
supportive culture internally. The handbook includes not only explanations on all of MC’s childcare systems and policies, but also
provides specific advice for mothers, fathers, bosses and colleagues on how to improve office communication. MC also provides regular
guidance to staff in management-level positions.

Support for Balancing Career and Family Care
In order for employees to continue to demonstrate their abilities while balancing career and family care responsibilities, MC has
expanded systems such as family care leave, flex-time, staggered work hours and family care leave. In addition, we provide a variety of
support such as holding Work-Care Balance Support Seminars giving employees the opportunity to deepen their understanding
regarding family care, as well as establishing a Family Care Consultation Desk, providing a system where employees and their family
members can consult regarding their concerns at an early stage.

Family Care Support Systems
Family members requiring nursing
care

Spouses, children, parents, parents of spouses, grandparents, grandchildren, brothers and sisters

Paid Family Care Leave

10 days per fiscal year, paid
Exemptions from and restrictions on late-night, overtime and weekend work

Work Styles

Staggered work hours/flex-timeSpecial medical leave (for family care reasons)Consultations on family care with external experts

Family Care Leave
Employee benefits

1 year on a cumulative basis for each family member requiring family care (365 days including non-business days) ＊ Can beobtained in separate segments for each family member requiring ongoing, constant nursing care

Use of nursing care services (24-hour consultation desk)

191

Environment

SocialGovernanceEncouraging Work-Style Diversity and Work-Life Balance
MC has distributed a Support for Balancing Career and Family Care Handbook to all employees as part of its efforts to promote
understanding and foster a supportive culture internally. The handbook includes not only explanations of all of MC’s family care systems
and policies, but also provides specific advice for employees providing family care, as well as for bosses and colleagues on how to
improve office communication. MC also provides guidance to those in management-level positions and Work-Care Balance Support
Seminars for all employees on a regular basis.

Re-Employment System for Employees Accompanying Spouses on Domestic or International Job Transfers
Providing that certain conditions are met, MC will re-employ those who previously left MC due to their spouses’ domestic or international
job transfers. This system was introduced to enable these personnel to resume their careers at MC by making the most of their priorexperience and skills.

Supporting Women’s Careers at MC
MC considers its workforce to be its greatest asset, and as such, its policy is to support the professional growth and development ofeach and every employee through flexible, performance-based treatment and compensation. To ensure that the right people areappointed to the right positions, MC focuses on the skills, performance and experience of each candidate, and does not discriminate
based on age, gender, nationality or any other factors. To best accommodate the needs of female professionals and help them to excel,
MC has established a five-year plan to support its working women. The plan’s targets and initiatives are described below.

Plan Period: April 1, 2021 – March 31, 2026

Targets and Initiatives〇 Target 1: Encourage more high-level appointments of female employees and raise the percentage of women in
management-level positions above 15%.
By expanding its systems to promote a healthy work-life balance and taking special, career-support measures for its female
professionals, MC has managed to boost this percentage in recent years; however, the company now plans to take the following,
additional steps to further accelerate its appointment of women to executive positions:〈Description of initiatives〉
Leverage job recruitment sessions, the company website and other PR tools to proactively target female candidates for positions at
MC and boost the percentage of job applications from women.
Instruct the Women’s Career Managers to analyze and address any separate issues that may exist within their respective
departments (in addition to their general responsibilities under MC’s companywide policy).
Develop/roll out training programs and networking opportunities that are specially designed for working women (this initiative shall bepart of MC’s overarching aim to rear management professionals who are committed to raising the value of MC Group businesses).
Enhance support for working women, such as by offering a mentorship program aimed at further motivating women in executive
positions and broadening their perspectives.
Provide more support to ensure that women can enjoy a healthy work-life balance by accommodating flexible work styles (assist early
returns from maternity or paternity leave and help women to secure full-time positions).
Take measures to improve the managerial and negotiating skills of all employees, regardless of background, in order to ready themfor management-level positions.

192

Environment

SocialGovernance〇 Target 2: Ensure that all eligible male employees take their full paternity leave.
Although in recent years more working fathers at MC have been taking paternity leave and doing so for longer periods, many are still nottaking full advantage of the program. MC shall continue working on improvements that will both raise awareness of the program andmake it easier for male employees with newborns to use it.
〈Description of initiatives〉
Separately remind both each male employee with a newborn and his superior about his eligible paternity leave.
Encourage male employees to use the program through roundtable discussions with those who already have, internal PR work andother initiatives.
Use internal training programs to explain diverse work styles, support for achieving a healthy work-life balance, and diversity
management (including making better use of the expertise of MC’s female employees).

Career Support Based on Major Life Events during Childbirth and Childcare Periods
Taking into account the major life events of individual employees, MC is focused on systematically providing career development
opportunities to the greatest extent possible, including overseas assignments. For employees planning to take maternity/ paternity leaveor those currently raising children, MC explains the relevant systems and policies, in addition to offering Work-Life Balance Seminars
where employees can hear about the experiences of their senior colleagues on topics such as work styles after returning to work frommaternity/paternity leave.

Support for Employees on Overseas Assignments Accompanied Only by Children
In some cases, employees may be assigned overseas and accompanied only by their children of junior high school age or younger,
without their spouses. In these cases, MC provides support to ensure a smooth assignment and the necessary arrangements for daily
life during the assignment. This includes sending the employee on business trips to the location prior to the assignment, arranging
housing in advance, concurrently allowing family members to join the employee, and providing a special subsidy for accompanying
family members.

193

Environment

SocialGovernanceEngaging the Senior Workforce
The awareness towards working beyond the age of 60 differ widely from one person to the next, and opinions on the subject are likely tovary even more in the coming years. In addition to introducing its Re-employment Course Syetem for extending the careers of
employees aged 60 and over, MC has established a Career Design Center at Human Link Corporation, a wholly owned subsidiary of the
Global Human Resources Department, which provides comprehensive support for senior employees.
The Center offers comprehensive services such as individualized career planning consultation based on each employee’s personal
situation and values, provision of various information and training programs for employees who wish to continue their careers outside thecompany, and collection of recruitment and job matching information.
Functions of the Career Design Center

Diverse Employment Opportunities for Persons with Impairments
As part of its CSR and diversity initiatives, MC has a long and proud history of employing persons with impairments. Together with its
special-purpose subsidiary, Mitsubishi Shoji & Sun Co., Ltd., MC will continue its efforts in expanding career opportunities for persons
with various impairments, while maintaining the statutory employment rate for these workers.

Helping to Increase Employment Opportunities for Persons with Impairments Mitsubishi Shoji & Sun Co., Ltd.
Mitsubishi Shoji & Sun Co., Ltd. was established in 1983 as an IT company following a joint investment by MC and Social Welfare
Organization Japan Sun Industries. It is headquartered in Beppu City, Oita Prefecture, and has offices in Tokyo (Marunouchi). Operating
under its corporate philosophies of coexistence between persons with and without impairments, corporate self-reliance, and new
corporate value, Mitsubishi Shoji & Sun Co., Ltd. works to increase employment opportunities for various persons with impairments whileproviding IT services such as system development, data entry, DTP and server operation to numerous business partners including MC
and other MC Group companies.
Reference:

Mitsubishi Shoji & Sun Co., Ltd. website (Japanese only) https://www.mctaiyo.co.jp/

194Environment

SocialGovernanceEngaging a Global Workforce
Support for Non-Japanese Employees
MC provides support to non-Japanese employees working in Japan by providing information on matters such as application proceduresfor period of stay extensions, rental housing, pensions and medical information. MC also provides a consultation desk to field any
concerns or questions that non-Japanese employees may have about living and working in Japan.
Reference:

For details on value sharing and international transfers of employees at overseas offices, please see Human Resource Development.

195

Environment

SocialGovernanceRelevant Data
Data on Employees Using MC’s Various Systems (As of March 31 Each Year)
FY2018FY2019FY2020

FY2021

FY2022

Number of employees who took Paid Spousal Childbirth Leave

96

98

88

110

108

Number of employees who took Maternity/Paternity Leave＊1

58

72

84

116

146

14

20

36

49

78

Male
Female

45

52

48

67

68

233

275

241

259

261

Male

184

216

190

191

176

Female

49

59

51

68

85

Number of employees who have children＊2

Ratio of people taking childcare leave（%）
Male

7

9

18

25

44

Female

93

96

96

99

80

Number of employees who return to work after childcare leave＊3
Male

14

11

16

32

48

Female

52

47

57

50

64

Male

100

84.6

80.0

88.9

98.0

Female

96.3

95.9

98.3

98.0

92.8

251

274

246

209

236

Male

94

123

82

72

86

Female

130

151

164

137

150

281

299

189

232

244

Male

138

139

84

107

108

Female

143

160

105

125

136

82

91

67

60

81

Rate of continued employment after childcare leave（%）＊4

Number of employees who took Paid Childcare Leave

Number of employees who took Paid School Events Leave

Number of employees who shortened work hours for childcare
Male

2

1

0

0

1

Female

80

90

67

60

80

87

92

25

14

11

Male

18

22

3

2

2

Female

69

70

23

12

9

Number of employees who obtained staggered work hours or
flex-time for childcare reasons

Number of MC Childcare Concierge consultations

116

93

45

43

51

Male

22

13

20

13

21

Female

94

80

25

30

30

Number of participants in MC Gakudo (total)

94

102

-

-

-

Number of participants in work-life balance seminars for
employees with children

19

19

10

23

26

Number of employees who took Family Care Leave＊1

4

1

1

0

1

Male

0

0

1

0

1

Female

4

1

0

0

0

247

271

269

189

185

Number of employees who took Paid Family Care Leave
Male

68

78

75

55

56

Female

179

193

194

134

129

8

9

5

4

3

Male

0

0

0

0

0

Female

8

9

5

4

3

6

14

10

13

12

Number of employees who obtained staggered work hours or
flex-time for family care reasons

Number of employees who applied for the re-employment systemfor employees who left to accompany spouses on domestic orinternational transfers＊5

196

Environment

SocialGovernance＊1 Number of employees who began taking childcare leave during said fiscal year.
＊2 Number of male employees whose spouses gave birth during said fiscal year, number of female employees who gave birth during said fiscal year.
＊3 Number of male employees who began taking childcare leave the previous fiscal year who had returned to their positions at the end of said fiscal year,
number of female employees who gave birth during the previous fiscal year who had returned to workcare at the end of said fiscal year.
＊4 Percentage of male employees who began childcare leave the previous fiscal year who had returned to their positions at the end of said fiscal year,
percentage of female employees who had given birth during the previous fiscal year who had returned to work at the end of said fiscal year.
＊5 Re-employment system for employees accompanying spouses on domestic or international transfers refers to a system in which re-employment isoffered, under certain conditions, to employees who resign from their positions in order to accompany their spouse to the location of a domestic orinternational transfer.

Percentage of Women in Management-Level Positions and Gender Composition ofBoard Members
Percentage of Women in Management-Level Positions (Non-Consolidated)

Gender Composition of Board Members (As of July 1, 2023)(Unit: person)
Male

FemaleMembers of the Board

7

2

Outside Directors

2

2

Audit & Supervisory Board Members
Outside Audit & Supervisory Board Members
Executive Officers（includes President and executive officer also serving as a director）

197

3

2

1

2

46

0

Environment

SocialGovernance

MC Women Overseas (As of April 2023)

RegionNo. of people

City

North America

11

Boston, Calgary, New York, Delphi, Los Angeles, San Diego

Latin America & the Caribbean

4

Santiago, Escondida, Huaraz, Panama

Europe5London, Rotterdam, Madrid

Africa1

Johannesburg

Middle East

1

Doha

Asia & Oceania

31

Singapore, Bangkok, Samut Prakan, Jakarta, Kuala Lumpur, Ho Chi Minh, Brisbane, Perth, Brunei

East Asia

6

Shanghai, Changsha, Ulaanbaatar, Hong Kong, Taipei

198

Environment

SocialGovernance

Employment Rate of Persons with Impairments（as of June 1 of each fiscal year）

The statutory employment rate of persons with impairments (private-sector companies) was raised from 2.2% to 2.3% on March 1,
2021.
The total of the non-consolidated company, Mitsubishi Corporation Taiyo, a special subsidiary, and the three companies applicable to
the group.

Independent Practitioner’s Assurance
ESG Data marked with a star (★) has received independent practitioner’s assurance from Deloitte Tohmatsu Sustainability Co., Ltd.
Reference:

Independent Practitioner’s Assurance Report

199

Environment

SocialGovernanceEvaluation by Society
Key Certifications

In January 2017, MC received the Platinum Kurumin Certification from the Ministry of Health, Labour and Welfare. The Platinum
Kurumin Certification is awarded to Kurumin-certified companies that have implemented measures to support employees’ childcare
needs at a higher standard. At MC, childcare benefits include both maternal welfare and childcare support. MC has been working tocreate processes as well as an environment that supports employees with children. Specifically, MC has ensured that its
Maternity/Paternity Leave exceeds Japan’s minimum legal requirements, and has introduced other measures to help employees
returning from Maternity/Paternity Leave to comfortably balance their parenting and work responsibilities. These include a flex-timesystem as well as shortened or staggered work hours. MC has also made it easier for male employees to take advantage of thesebenefits, such as by lifting the restriction that previously did not allow employees’ spouses access to full-time childcare, and also by
introducing MC’s Paid Spousal Childbirth Leave. As a result of these and other measures to support work-life balance, MC has received
Kurumin certification from the Ministry of Health, Labour and Welfare continuously since 2008, in recognition of the action plan it has
formulated and implemented to support employees’ childcare needs.
＊ About the Kurumin certification and Platinum Kurumin certification (Excerpt from the Ministry of Health, Labour and Welfare’s website) Enterprises thathave formulated general business operator action plans in accordance with the Act on Advancement of Measures to Support Raising Next-Generation
Children and satisfy certain standards may apply to receive certification by the Minister of Health, Labour and Welfare (Kurumin certification) as acompany that supports the childcare needs of employees. Moreover, the new Platinum Kurumin certification was instituted on April 1, 2015 to recognize
Kurumin-certified enterprises that have made considerable progress in terms of the introduction and use of work-life balance support systems and whichhave executed measures to a high standard, along with encouraging these enterprises to continuously undertake such measures.
Reference:

Work-Life Balance Plaza (Japanese only)

In January 2017, MC received L-boshi (second level) certification from the Ministry of Health, Labour and Welfare as an outstanding
enterprise in promoting women’s participation and career advancement.
＊ About the L-boshi certification (Excerpt from the Ministry of Health, Labour and Welfare’s website)
The Act on Promotion of Women’s Participation and Advancement in the Workplace entered into force on April 1, 2016. Under this act, enterprises thathave formulated general business operator action plans and have submitted notification to the effect that they have formulated such plans, as well as
satisfy certain standards, may obtain certification by the Ministry of Health, Labour and Welfare (L-boshi certification) as an enterprise offering excellent
conditions with respect to promoting women’s participation and career advancement.

200

Environment

SocialGovernanceSocial

Well-being (Health & Productivity
Management, Occupational Safety and
Health)PolicyTargets

Structure

Initiatives

Performance Data

PolicyManagement Message
The MC Group has a global workforce of approximately 86,000 professionals. These people are MC’s source of value creation.
"Fostering Vibrant Workplaces That Maximize the Potential of a Diverse Workforce" has been identified as one of the eight materialities
for MC to address together with our Group companies, and as our operations continue to expand and globalize, diverse humanresources representing all genders, nationalities and other characteristics will be needed to fully utilize their respective capabilities inorder for the MC Group to continue generating corporate value sustainably. With this in mind, MC believes that it is important to improve
the well-being of employees by ensuring safe working environments and maintaining and promoting health. MC has been continuously
recognized as an "Outstanding Enterprise in Health and Productivity Management — White 500" for its efforts.
The MC Group promotes initiatives around occupational Safety and health (OSH) management, which are flexibly tailored to the
independence and capacity of each individual and organization. These include activities to create environments where employees andcontractors can work with peace of mind, as well as health, labor and crisis management initiatives. We aim to build and operatemanagement systems that go beyond simply meeting the legal requirements in the countries where we operate to provide support that ismore substantial.
Within the MC Group, there are companies with OSH management systems that have obtained the international certifications ISO
45000. Furthermore, in order to promote OSH management throughout the entire MC Group, we will develop an organizationalframework, clarify responsibilities and continuously monitor progress in order to refine, maintain and further improve our activities.
Accordingly, we have set out the following policy for the MC Group:

MC Group Occupational Safety and Health (OSH) Policy
The MC Group as a whole will work to promote safety and health of all stakeholders, including MC employees andcontractors, and to enhance our systems for occupational safety and health.
We will conduct robust OSH management regardless of the country or region where we operate, upholding and seeking to go
beyond local labor standards, laws and regulations.
In order to create an environment where our people, the MC Group’s greatest asset, can work with peace of mind, we will
work to maintain and improve their health, such as reducing the risks posed by infectious diseases and preventing overwork,
including the reduction of excessively long working hours.
Through proper management systems, we will prevent occupational accidents at each workplace. In the event an accident
does occur, we will quickly assess the situation, analyze the cause and formulate preventative measures.

201

Environment

SocialGovernanceFostering Vibrant Workplaces That Maximize the Potential of a Diverse Workforce
and Reducing Health Risks
MC has designated “Fostering Vibrant Workplaces That Maximize the Potential of a Diverse Workforce” as one of its materialities.
Our policies on occupational safety and health are designed to enable diverse human resources to make full use of their capabilities andapproach their work with enthusiasm.
MC responds rapidly in the event of an accident and continues to raise awareness about safety and establishing and improving its
management systems. MC also encourages maintaining and promoting employee health by reducing the risk of employee illness. Within
the area of employee occupational health, MC places a particular focus on mental health, providing a counseling desk and mental healthsupport desk staffed by licensed psychologists and clinical psychotherapists, as well as dedicated physicians at the in-house medical
clinics. Furthermore, MC conducts a regular online stress check.

Supply Chain Initiatives
Recognizing the importance of managing environmental and social impacts in its supply chains, MC has established the Mitsubishi
Corporation Policy for Sustainable Supply Chain Management (as amended in August 2018). The policy requires suppliers to respecthuman rights and endeavor to provide their employees with safe and healthy work environments. In addition to sharing the policy with
suppliers, MC conducts a regular questionnaire to confirm compliance with it. While basic measures for occupational health and safety
management are undertaken by each business, the MC Group endeavors to strengthen in this area throughout the supply chain
collectively. Measures include visiting suppliers to confirm the status of their activities when determined that site visits are necessary*considering location as well as the type of business. Furthermore, MC makes other efforts to strengthen occupational safety and healththroughout the supply chain as the MC Group.
Reference:

For details on other supply chain initiatives other than those described above, please see Supply Chain Management.

* Covers only Tier 1 suppliers in Japan and abroad

Policy to Proactively Address Global Health Issues (HIV/AIDS, Tuberculosis, Malaria)
MC is actively conducting business globally with a business network spanning more than 200 countries around the world. For some ofthese countries, health issues such as HIV/AIDS, tuberculosis and malaria are pressing issues. MC’s policy is to work proactively toaddress these global health issues.

202

Environment

SocialGovernanceTargets
MC Group
Reduction in the rate of workplace accidents, including contractors, from the previous year (FY2021 target of 2.74 or less)
Implementation of health checkups at MC Group companies (Japan-based) as required by law（*）: 100%
Reference:

For details on performance related to the targets above, please see Performance Data.

* FY2021 results refer to the percentage of MC Group companies (Japan-based) subject to the Sustainability Survey that provides opportunities for
employees to receive regular health checkups in line with the Industrial Safety and Health Act.

MCReduction in the rate of workplace accidents, including contractors, from the previous year (FY2021 target of 0.16 or less)Health checkup rate for domestic (Japan-based) employees（*）: 100%
Percentage of annual paid leave taken: 70%
Reference:

For details on performance related to the targets above, please see Performance Data.

* Refers to the percentage of MC employees who have undergone regular health checkups in line with the Industrial Safety and Health Act implemented by
the Company.

203

Environment

SocialGovernance

Structure
Officers in Charge

Deliberative Bodies

Yutaka Kashiwagi (Director, Executive Vice President, Corporate Functional Officer, IT, CAO, Chief Compliance
Officer, Officer for Emergency Crisis Management Headquarters)
Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO)

management decision-making body)

Human Resources Development (HRD) Committee, Sustainability & CSR Committee
Important matters related to occupational health and safety deliberated by the committees are formally approved by
the Executive Committee and put forward or reported to the Board of Directors based on prescribed standards.

Departments in Charge

Global Human Resources Dept., Sustainability Dept.

(A subcommittee under the Executive Committee, aReference:

Diagram of the Sustainability Promotion Framework

MC has appointed the Director, Executive Vice President, Corporate Functional Officer (CAO) as the chief officer in charge of OSH
management for the MC Group, and promotes a structure where the Global Human Resources Department coordinates each of theBusiness Groups, which are primarily responsible for OSH management.
For each MC Group company in Japan, we have established committees such as the Health Committee in line with the Industrial Safety
and Health Act, in which employees also participate in developing, evaluating and determining plans related to preventing healthproblems as well as maintaining and promoting good health. In particular, at consolidated subsidiaries hazards such as near misses arereported by employees at morning meetings and other occasions, and necessary countermeasures are put into practice.

MC considers occupational safety and health as a key management priority, and has been working to pursue health and productivity
management.
Headed by the Chief Safety and Health Supervisor (who serves concurrently as an Executive Vice President), and consisting of four
occupational physicians and 11 health supervisors from each Business Group, the Health Committee meets once a month, on a nonconsolidated basis, to discuss employee health and workplace safety matters. The minutes of the monthly meetings are posted on theintranet and disseminated to employees.
MC believes that it is essential to understand the Company’s current situation and to manage the entire safety and health processfrom the consideration of measures to their implementation in order to promote good health. Consequently, MC has established the
Health Management Office (established in April 2018 with the Health Promotion and D&I Team active from April 2021), a dedicatedsafety and health office within the Global Human Resources Department. This office coordinates with related departments (such as
the industrial hygiene section, the internal medical clinic, the Mental Health Support Desk, etc.) and the MC Health Insurance
Association to implement industrial hygiene and consider various health-related measures, such as the appropriate use of data.
Furthermore, monthly meetings are held between the Global Human Resources Department, industrial physicians, the MC Health
Insurance Association, and personnel in charge of human resources in Japan to discuss policies and share information.

204

Environment

SocialGovernance* The Mitsubishi Shoji Building and the Marunouchi Park Building are registered as separate business sites. For each business site, MC has established an
occupational safety and health framework as required by labor laws.

Employee Participation
Employees participate in the Health Committee which develops plans concerning the prevention of health problems and themaintenance and enhancement of good health, along with discussing evaluations and improvements. It is also engaged in identifying
and disseminating accurate knowledge and information related to emerging infectious diseases.
MC strives to create safe and healthy workplace environments in order for its diverse workforce to thrive and succeed. At the sametime, MC takes steps to ensure that each employee is able to manage his or her own health independently through training seminars
and related events. Particular emphasis is placed on the health management of employees on overseas assignment. MC has also
implemented measures which allow employees to coordinate with their supervisors to take flexible hourly paid leave when theyrequire outpatient care. In addition, sponsoring charity marathons and holding in-house health events has provided opportunities for
employees to develop an interest in sports and to foster an awareness of their own health.
MC conducts discussions on creating a more positive workplace and promoting appropriate time management. Regularcommunication between employees and management is maintained through meetings between the MC Staff Union and management
staff, including the President and CEO, along with bi-annual meetings to discuss business performance and regular meetings with the
Global Human Resources Dept. Moreover, the MC Staff Union also holds health seminars for employees.

205Environment

SocialGovernance

Loan and Investment Screening
When reviewing and making decisions on loan and investment proposals, MC conducts a comprehensive screening process which
considers not only economic aspects, but ESG factors as well. From an occupational safety and health perspective, particularly for
projects which have a high risk of accidents or fatalities, MC ensures that numerous issues, including the maintenance status of HSE
management systems, past cases of accidents or fatalities, and quantitative data such as the Lost Time Injury Frequency Rate (LTI) areconsidered in its deliberations. Besides screening new investment and exit proposals, MC also strives to make improvements to existing
business investments by monitoring their management practices.

Risk Management (Risk Assessment)
Occupational safety and health is a vital component of HSE risk and is managed in accordance with the MC Group Risk Management
Policy.
Excerpt:
1. Definition: HSE risk refers to recognizing the impact of manufacturing, industrial works, distribution and other operations on
occupational safety and health as well as the environment, and identifying and managing risks related to accidents, damage to health,environmental contamination, etc.
2. HSE risk management: a. Risk identification and management: Identify latent risks related to HSE based on the nature of theoperations and sector, and avoid, mitigate and manage the risks. b. Risk awareness-raising: Raise employees’ awareness of theimportance of HSE risk based on the nature of the operations and sector through education, training and other activities. c. Formationof policies related to accidents and response: Stipulate emergency policies in advance in order to be prepared in the event of an
accident. Establish the necessary measures to minimize damage while working with relevant institutions when an accident occurs.
Should an accident occur, conduct necessary investigations, analyze the causes, and implement measures to prevent futurereoccurrence.
3. System: Comply with law and regulations, international rules, voluntary industry standards, and customer requirements related to
HSE and formulate an action plan based on MC’s industry and business activities. In addition, formulate policies based on the action
plan and introduce a system for regularly confirming their implementation. Further, monitor performance related to HSE and review
the action plan.

Reporting of Workplace Accidents
The MC Group strives to prevent workplace accidents for employees.
We have established a system that enables us to deal with workplace accidents appropriately (investigation, response to findings, etc.)
and take preventative measures in a prompt manner. In the event that a workplace accident occurs at an MC Group company, it will bereported via a dedicated reporting channel for occupational accidents. In the event of an accident with severe consequences, such as
death or serious injury, or an accident involving suspected violations of laws and regulations, a report will also be made via thecompliance reporting channel.
Workplace accidents that occur in the MC Group are reported to the Compliance Committee and monitored by the annual Sustainability
Survey, and are used to take preventive measures to reduce future accidents.

206

Environment

SocialGovernanceInitiatives
Initiatives on a Non-Consolidated BasisManagement Message on Safety and Health
MC recognizes that employee health is a key management issue, and therefore strives to foster dynamic,
spirited and vibrant employees and workplaces.
Based on the belief that a healthy mind and body determine the success of the individual, we strive toenhance both the mental and physical health of our employees and the quality of their work environments.
We will continue to promote health and productivity management in order to improve the well-being of all
MC employees, and allow our diverse and versatile talent pool to make the most of their skills andpersonalities.
Katsuya Nakanishi
President and CEO of Mitsubishi Corporation

At MC, we believe that the source of value creation is our human resources, and haveestablished “Fostering Vibrant Workplaces That Maximize the Potential of a Diverse Workforce”
as one of the eight societal issues of our materiality that must be pursued and realized
throughout the Group. In order to continue creating sustainable corporate value, we must findways to respond to the further diversification and globalization of our business activities, andenable our diverse human resources to make full use of their unique abilities regardless of
attributes such as gender or nationality. MC therefore views the creation of safe working
environments and the maintenance and promotion of employee health as key issues, withsenior management issuing a message on safety and health in FY2022.
MC’s initiatives continue to be recognized under the 2020 Certified Health & Productivity
Management Outstanding Organizations Recognition Program’s "White 500".
MC strives to create work environments in which both employees and contract employees canwork with peace of mind, including in terms of safety, health promotion, productivity
management and crisis management. In addition to complying with the legal requirements ofeach country in which we operate, we are also working to create and manage comprehensive
occupational health and safety management systems.

Employee Health Management
Most Recent Initiatives (FY2019–FY2022) and Results of Analysis of Effectiveness
1) Efforts to improve health awareness and lifestyles(1) Internal notifications by industrial physicians, etc.
Explanation and sharing of health data, issues, and approaches, etc. in the "Health Column" of the internal newsletter and at various
level-specific training sessions.
(2) Health seminars and health check events
These events were held online for all employees, including those working overseas.
Seminar themes: Diet, practical exercise, sleep apnea syndrome, cancer, women’s health, mindfulness, etc. (e.g., online seminars ondiet and exercise in collaboration with sports clubs).
Health check events: Measurement of health condition and on-the-spot individual exercise guidance based on results (bodycomposition, vascular age, body misalignment).

207

Environment

SocialGovernance(3) Provision of health apps
We introduced a health app that helps all employees in Japan to visualize and improve their lifestyle habits by recording their diet,exercise, and sleep, and provides health advice based on those records.
Going forward, we plan to introduce the system to overseas employees as well.
(4) Provision of healthy meal opportunities
To encourage employees to choose health-conscious meals, a health-conscious menu is offered at every meal in the employee
cafeteria and is also available on the company intranet. Also, all other menu items include information on their nutritional value, suchas the amount of salt they contain.
Vegetables and fruits (vegetable sticks, cut fruits, mini salads, etc.) are provided in the office so that employees can easily pick themup to add to their lunch or as a snack.
In addition to introducing recipes for healthy seasonal menus on the health app, examples of recommended menus for lifestylerelated diseases such as diabetes are posted on the Company intranet and are also provided when nutritional guidance is given to
the target employees.
Results
There was a reduction in the percentage of obesity within the company, especially among males, falling 1.7% from 30.6% in FY2020 to28.9% in FY2022.

2) Initiatives for early detection and prevention of mental health problems(1) Conducted stress checks for all employees including those on overseas assignments as a means of ensuring regular mental healthevaluations.
(2) Individual consultations with a licensed psychologists are offered during the mental health support period (by request, in person or
online).
Distributed regular columns on mental health.
Notified all employees about handouts containing information on self-care and care for subordinates’ mental health.
Sent out individual emails about mental health support within three months of employees being assigned abroad, and arranged online
sessions with licensed psychologists for those who want the support.
Sent out monthly emails from licensed psychologists to all employees on overseas assignments informing them of availability of
consultation services.

Health Management of Employees and Their Families During Overseas Appointments
There are approximately 1,100 MC head-office employees on overseas assignments at any given time, and some 1,350 family members
accompanying them. Recognizing that working overseas for extended periods can have an impact on one’s health due to differences inlanguage, culture, medical systems, and other environmental factors, MC has taken several steps to ensure that its employees and theirfamily members remain in good health wherever they happen to be. In addition to facilitating annual local health examinations, the MC
Head Office medical clinic is equipped to handle health-related inquiries from employees and their family members should they feelunwell while overseas. If there are no suitable medical facilities in the area, MC will provide for the employee and their family to either
return to Japan or travel to another nearby developed country for the examination. Employees and their families also qualify for
subsidized travel expenses when taking Health Maintenance Leave, which can be taken in addition to paid holidays when employees
need time off to refresh themselves, both in mind and body. MC also provides a global, 24-hour Japanese language service for medical
emergencies, emergency assistance in transporting employees to more medically advanced regions like Tokyo, Singapore, and
Bangkok and other extensive health-related support for its employees on overseas assignments.

208

Environment

SocialGovernance

Survey to Monitor and Improve the Health and Working Environments of Employees on Overseas Appointments
In order to drive continuous improvement, since 2013 the Global Human Resources Department has conducted a survey targeting
employees on overseas assignments to assess the quality of healthcare they receive as well as their working conditions in general forthe purpose of further enhancing health-related measures. Monitor working conditions and stress levels, and if needed, additional
support is provided by the Global Human Resources Department or the Mental Health Support Desk.

Medical Clinics for Employee Health Management
MC has established medical clinics at its Head Office and Kansai and Chubu Branch Offices for MC employees and those on domestic
and overseas assignments. The Head Office clinic employs approximately 50 full- and part-time medical professionals, including
physicians specializing internal medicine, ophthalmology, dermatology, otolaryngology, orthopedics and neurology, as well as nurses,
testing and radiology technicians, nutritionists and pharmacists. These professionals, together with examination systems using the latest
testing equipment, help to run a clinic that manages the health of MC employees, with a cumulative total of approximately 15,500 users
in FY2021, and approximately 17,745 employees in FY2022 despite the COVID-19 pandemic.
Within Japan, the attendance rate for regular checkups is 100%. Where necessary, employees are called in for follow-up examinations(3 to 6 months later), and are offered further tests.
The medical clinic also has an occupational health department, which provides medical support to employees with health concerns toenable them to work with peace of mind. This includes return-to-work assessments for those who go on leave due to medical treatment,
and support to help them balance work with their treatment needs. We also aim to maintain a comfortable work environment throughworkplace assessments and discussions via the Health Committee. We interview employees who work overtime to inform them about
long working hours and the associated health issues. In these ways, we are making ongoing efforts to improve health literacy and createa workplace where all employees can work in optimal physical and mental health.
Reference:

For details on performance, please see Head Office Clinic Usage.

Preventing Lifestyle-Related Diseases and Metabolic SyndromeMCʼs health clinics provide early checkups and treatment and offer medium- and long-term health management in conjunction withhealth examinations. Special examinations are offered to employees aged 40 and over and are utilized by 84% of employees in this age
group. Preventing lifestyle-related diseases such as dyslipidemia, hypertension, diabetes and hyperuricemia is a pressing societal issue.
MC is working to prevent lifestyle-related diseases and metabolic syndrome for employees by providing access to physicians andnutritionists via the clinics. Early action is essential to preventing lifestyle-related diseases. Going forward, in addition to providing healthguidance to younger employees, MC will also work to raise the awareness of healthy employees with normal checkup results on how to
structure their lifestyles for maintaining their health.

Efforts Related to Self-Medication
In collaboration with the Mitsubishi Corporation Health Insurance Association, we are providing employees with a self-medication service
that allows them to consult with a specialist (pharmacist) and purchase medication online with the aim of encouraging them to take aninterest in maintaining and improving their health. When developing health management-related programs such as this self-medication
service, we provide services and conduct trials among our employees in order to make improvements to such programs.

209

Environment

SocialGovernance

Mental Health Measures
Focusing on preventive measures and early treatment, MC provides extensive mental care support. MC has a simple, web-based
system through which employees can assess their own stress levels and propensities to develop health problems. MC also conducts
various types of training for employees, including managers, in an effort to prevent mental health issues. MC has made it a requirement
for all employees, including secondees, to complete a stresscheck. After answering an online survey, employees immediately receive an
on-screen evaluation of their stress levels, along with feedback. If their stress levels are particularly high, they are recommended tomake an appointment with a neurologist at one of MC’s clinics. If necessary, working environment adjustments are also prescribed tohelp bring their stress levels down.
Meanwhile, MC’s internal Mental Health Support Desk and medical clinic neurology department are equipped to quickly accommodate
employee (including employees on domestic and overseas assignments) health inquiries, with a system that supports employees
together with their workplaces. MC has also set up an outside help desk that is linked to its specialized EAP* medical facilities. Throughthis comprehensive system, employees and their family members can consult with healthcare professionals or receive counseling at any
hour of the day, whether in person or by telephone or email.
Moreover, a summary of the results are shared on an anonymous basis within MC and utilized to improve working styles and workplace
conditions. Going forward, MC plans to make use of the survey findings to inform its mental health issue prevention measures for
employees, as well as training and other measures to further raise awareness of mental health issues.
* Employee Assistance Program〈The Mental Health Support Desk〉
The Mental Health Support Desk has been established for MC employees (including those on domestic and overseas assignments).
Staffed by licensed psychologists and clinical psychotherapists, the Mental Health Support Desk is available to employees for mental
health consultations. It helps employees to check their stress levels and enables those feeling off form to have an initial consultation
before seeing a neurologist. It also supports employees who have been on extended leave due to psychiatric issues to return to work byoffering rehabilitation programs, recommendations on workplace re-integration and long-term follow-up.
Stress Check Results (Domestic）
FY2020
Implementation rate

FY202195%

FY202294%

FY2023
94%

94%

Assistance with Fees for Multiphasic Health Screenings
Multiphasic health screenings are offered to employees in line with the Japanese Industrial Safety and Health Act, the fees for which arepartially subsidized*.
* Subsidized by the MC Health Insurance Society

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SocialGovernance

Measures for Infectious Diseases
MC gathers and analyzes the latest information from the Ministry of Health, Labour and Welfare, the Ministry of Foreign Affairs, theWorld Health Organization, the CDC (Centers for Disease Control and Prevention), and other organizations on the outbreak and spreadof infectious diseases. Based on this, the Emergency Crisis Management Office works together with occupational physicians andoccupational health staff to implement in-house infection control measures.
With respect to COVID-19, MC is monitoring the situation in Japan and overseas, and has adopted the following three principles:
prevention of infection; prevention of the spread of infection; and prevention of severe cases. With these principles in mind, we aretaking the necessary measures to mitigate any adverse impacts on not only MC employees but all staff working within MC, all whilst
striving to ensure business continuity.
We have strengthened our medical consultation system for employees assigned overseas and their families, and are providing medical
advice on infection prevention and mental health care to help them work with peace of mind even in areas where infection is
widespread.
MC takes an exhaustive approach toward preventing the spread of diseases in the workplace with initiatives such as providing antimalaria vaccinations for employees taking business trips to regions where tropical malaria is prevalent, recommending antibody tests
and vaccinations against measles and rubella (MR), and administering in-house vaccinations against seasonal influenza.
Reference:

For the Emergency Crisis Response Headquarters, please refer to Crisis Management.

Tuberculosis Prevention Initiatives (Mongolia)
MC partnered with the Mongolian Anti-Tuberculosis Association to raise awareness of tuberculosis in Mongolia’s capital Ulaanbaatar.
Targeting particularly high-risk groups such as college students, MC aimed to raise awareness of the disease through pamphlet
distribution, videos and events. In addition, for secondary school students, MC organized a drawing contest and used the winning entries
in advertising posters. These awareness-raising activities were conducted at five universities and 750 secondary schools.

New Work Styles Befitting MC
As business becomes ever more complex and fast-paced, the pressure on employees to carry out more work at a higher quality
inevitably increases. In addition, the nature of a sogo shosha means there are often busy and high-pressure periods, such as with large
projects and overseas business. As such, in order to prevent health problems caused by overwork, MC places particular priority on: 1)
the mental and physical health of employees; 2) compliance with laws, regulations and rules; and 3) appropriate management ofextended overtime. Specifically, MC goes beyond legal requirements in terms of managing overtime hours for non-managers andmanagers. When employees exceed a certain level of overtime hours, they must submit a health questionnaire and receive healthguidance from an occupational physician. As well as using computer logs and objective data to accurately report overtime hours andcomplying with the Japanese Article 36 Agreement as a matter of course, MC also conducts time management training and otherinitiatives for managers. While taking into account the differences between specific business environments and industries, MC aims toachieve an average annual paid leave utilization rate of 70% or more, and systematically encourages employees to utilize their annual
paid leave. In addition, where certain departments demonstrate a tendency to work overtime frequently, MC will draw up and implement
improvement measures on an individual basis and endeavor to prevent overwork, including by reducing excessive overtime. As a result,in FY2022, the annual paid leave utilization rate was 67% while average monthly overtime was 29.9 hours/month (As for FY2021, 55%,
30.4 hours/month). MC is promoting initiatives for each organization and individual to pursue autonomous and flexible work styles, andimprove productivity and efficiency whilst also improving results and performance.
MC is creating a working environment that enables its diverse workforce to thrive professionally while fostering an organizational culture
in which performance is evaluated fairly based on results.

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Environment

SocialGovernanceInitiatives on a Consolidated Basis
Initiatives at Consolidated Group Companies
MC Group companies conduct activities to prevent industrial accidents by formulating response policies, introducing occupational Safety
and Health(OSH) management systems* for employees, and taking other appropriate measures based on the nature of the businessand context. Out of the MC Group companies that have OSH risks, 99.6% have OSH management systems, and we will inquire about
initiatives in our consolidated partner companies.
* Refers to all MC Group companies that have experienced one or more instances of lost time injuries and are working to reduce lost time injuries under
their OSH policies. (Results of the FY2021 Sustainability Survey.)

1) Donggi-Senoro LNG Project
MC is one of the largest shareholders of the Donggi-Senoro LNG Project in Indonesia (DSLNG). There are various safety andoperational risks associated with the production of liquefied natural gas(LNG). DSLNG recognizes this and considers process safety andoccupational safety and health to be of utmost importance. To ensure the safety of workers, DSLNG has implemented a range ofmeasures, including formulating policies on integrated quality management, health, safety, environment, and security along withestablishing a Process Safety Management Committee. In addition, DSLNG also provides employees with training on matters such as
Permit to Work, process safety management, crisis management, and firefighting measures, and conducts Safety Leadership
Workshops in collaboration with contracted companies to further raise safety awareness among staff. Moreover, MC maintains a robust
safety framework by conducting regular reviews of and improvements to its safety measures.
(1) Implementation of Audits:
DSLNG conducts Permit to Work Audits and Safety Leadership Conversations (SLC) on a daily basis. Through these audits, checks are
conducted on various aspects related to onsite safety, along with ensuring that Permit to Work entries are recorded accurately. In theevent that any work safety concerns are identified, DSLNG ensures operations are immediately suspended pending a review.
(2) Examples of Risk Assessments:
A job hazard analysis (JHA) is conducted for the majority of jobs to scope out potential risks, assess their severity, identify possible
measures to manage the risks, and determine the overall level of risk. Through this process, DSLNG ensures that jobs are performed inline with adequate safety standards.

2) MC Ferticom Co., Ltd.
As its core safety initiative, MC Ferticom Co., Ltd. implements S・I・GMA (sigma) activities with the aim of improving manufacturing
operations.
S = Safety
I = Improvement
GMA= Good Manners
Through these activities, MC is making a concerted effort to raise awareness of safety and improve manufacturing operations. MC
Ferticom Co., Ltd. has also acquired the ISO45001 occupational health and safety certification at all of its facilities. As a responsible
fertilizer manufacturer, MC will continue to pursue further safety and reliability.
Reference:

MC Ferticom Co., Ltd. website (Japanese only)

https://www.mcferticom.jp/company/csr/#csrMenu

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Environment

SocialGovernanceStatus of Acquisition of ISO45001
Main MC Group Companies with ISO 45001 Certification* The percentage of affiliated companies that have acquired ISO 45001 certification is 9.4% (Sustainability Survey Results for FY2021).
Business Group
Industrial Materials Group

Chemicals Solution Group
Mineral Resources Group

Industrial Infrastructure Group

Automotive & Mobility Group

Name of Company
POSCO MC MATERIALS Co.,Ltd.

Manufacturing and sales of needle coke

Cape Flattery Silica Mines Pty. Ltd.

Mining, Processing and sales of silica sand

MC Ferticom Co., Ltd.

Fertilizer production

Thai Shinkong Industry Corporation Ltd.

Manufacturing and sales of PET resin

Anglo American Sur S.A.

Copper ore mining, processing and sales

Chiyoda Corporation

Plant engineering business

Mitsubishi Electric de Colombia Ltda.

Elevator business (sales and maintenance)

MITSUBISHI ELEVATOR MALAYSIA SDN. BHD.

Elevator business (sales and maintenance)

MITSUBISHI ELEVATOR (SINGAPORE) PTE. LTD.

Elevator business (sales and maintenance)

Mitsubishi Dendai Hong Kong Co., Ltd.

Elevator business (sales and maintenance)

Mitsubishi Elevator (Thailand) Co., Ltd.

Elevator business (sales and maintenance)

Mitsubishi Heavy Industries Compressor International Corporation

Production, sale, and servicing of compressors

PT MITSUBISHI MOTORS KRAMA YUDHA INDONESIA

Automobile manufacturing

Zhejiang Dalian Marine Foods Co., Ltd.

Import, export, purchase, processing, and salesof marine products

Cermaq Group AS

Salmon aquaculture business

Deccan Fine Chemicals (India) Private Limited

Contracted manufacturing of agrochemicalintermediates and active ingredients

OLAM GROUP LIMITED

Production, collection, processing, trade, andport operations for agricultural products

Princes Limited

Food and beverage production

Nisshin Foods (Thailand) CO., LTD

Production and sales of instant noodles, etc.

Foodlink Corporation

Meat trading company

N.V. ENECO

Energy supply business

Food Industry GroupPower Solution Group

Business Activities

Provision of HSE Information
Since 2002, Nikken Corporation has a regularly-published newsletter called Safety News (in Japanese), which is shared with customers
and other stakeholders. MC gathers a range of information including recommendations on how to reduce labor-related accidents as wellas methods for how to avoid and prevent HSE incidents based on white papers published by related organizations

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Environment

SocialGovernance

Performance Data
Occupational Safety and Health Data (Consolidated and Non-Consolidated Basis)
Occupational Accident Data（Consolidated Basis）
Lost Time Injuries Frequency Rate*(This data includes subsidiaries and unincorporated joint operations, which contain production business sites)
FY2020

FY2021

FY2022① Employees

4.16

3.26

3.87★

② Non-employee workers (Contractors)

1.95

1.14

0.52★

Whole company (①+②)

3.79

2.73

2.75

Lost Time Injuries Frequency Rate*(This data includes subsidiaries and unincorporated joint operations, any other group companies like affiliates, which containproduction business sites)
FY2020

FY2021

FY2022① Employees

3.40

2.43

2.77

② Non-employee workers

0.72

0.87

0.48

Whole company (①+②)

2.74

2.03

1.98

* “Frequency rate” refers to the frequency of occupational accidents and is derived from the number of lost time injuries resulting from occupational
accidents per 1,000,000 actual working hours.

The number of fatalities and injuries in FY2022 at MC's main businesses (subsidiaries and unincorporated joint operations) withproduction sites over which MC has control through shareholdings etc. was 1. This number is including fatalities of contractors.
Meanwhile, the frequency rate of occupational accidents at major businesses (including subsidiaries, unincorporated joint operations,affiliates, etc.) with production sites in FY2022 was1.98, which reflects decrease compared with FY2021(2.03), in line with MC's initial
target. This was because we made significant progress on reducing injuries(Decreased 11.0% compared with the value of FY2021)atMC's main businesses with production sites based on occupational safety and health management.
The goal of MC Group for FY2023 stands at a lost time injuries frequency rate of 1.98. MC believes it can ultimately reach zero injury
accidents (especially zero fatalities) through its progress on achieving goals on occupational safety and health every year.
MC will continue to enhance occupational safety and health on cosolidated basis, with grasping occupational safety insidents at
cosolidated basis, and strengthening occupational safety and health management system for MC's main business with relatively highoccupational safety and health risks.

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Environment

SocialGovernance【Reference 1】The number of FY2022fatalities and injuries by Business Group (including subsidiaries, unincorporated joint
operations)
FY2022
Industry Digital Transformation Group0Natural Gas Group0

Industrial Materials Group0

Chemicals Solution Group0

Mineral Resources Group0

Industrial Infrastructure Group0

Automotive & Mobility Group0

Food Industry Group1

Consumer Industry Group0Power Solution Group0

Urban Development Group0

Corporate Staff Section

0

Total

1

【Reference 2】FY2022 Occupational Frequency rate by Business Group (including subsidiaries, unincorporated joint
operations, affiliates, etc.)
FY2022
Industry Digital Transformation Group

0.67

Natural Gas Group

0.06

Industrial Materials Group

1.06

Chemicals Solution Group

4.16

Mineral Resources Group

1.08

Industrial Infrastructure Group

1.78

Automotive & Mobility Group

0.14

Food Industry Group

3.53

Consumer Industry Group

2.52

Power Solution Group

1.10

Urban Development Group

0.10

Corporate Staff Section

0

Total

1.98

Occupational Accidents by Business Group (Consolidated Basis)
MC manages occupational safety and health on a consolidated basis for each Business Group.
Reference:

Please refer to “Occupational Accidents by MC Business Group (Consolidated Basis)” for occupational accidents by Business Group andefforts to prevent recurrence.

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Environment

SocialGovernanceOccupational Accident Data (Non-Consolidated Basis)
Lost Time Injuries Frequency Rate*1
FY2020① Employees

FY2021
0.16

0.17

0★

-

0

0★

0.16

0.15

0

② Non-employee workers (Contractors)
Whole company (①+②)

FY2022

Lost Time Injuries Severity Rate*2
FY2020① Employees

FY2021
0.00

0.00

0★

-

0

0★

0.00

0.00

0

② Non-employee workers (Contractors)
Whole company (①+②)

FY2022

Occupational Illness Frequency Rate*3
FY2020

FY2021

FY2022① Employees

0

0

0★

② Non-employee workers (Contractors)

-

0

0★

Whole company (①+②)

0

0

0

Employees working at head offices and domestic branches (excluding advisors and contract employees).
Contractors include temporary staff working at head offices and domestic branches.
*1 “Frequency rate” refers to the frequency of occupational accidents and is derived from the number of lost time injuries resulting from occupational
accidents per 1,000,000 actual working hours.
“Injuries/ deaths” refers to occupational accidents resulting in both physical injury or loss of physical function as well as one or more days of absencefrom work.
*2 “Severity rate” refers to the severity level of accidents and represents the total number of lost time injury days/1,000 total actual working hours.
*3 Frequency of industrial accidents classified as work-related illnesses as stipulated by the Japanese Ministry of Health, Labour and Welfare (including
fatalities caused by illness).

There have been no fatal accidents at MC during the three-year period stated above.
Comparison with industry average (from the Japanese Ministry of Health, Labour and Welfare’s “Survey on Industrial
Accidents” for Wholesalers and Retailers with a Business Scale of 100 Employees or More)FY2020

FY2021

FY2022

Lost time injuries frequency rate

2.27

2.31

1.98

Workplace accident severity rate

0.11

0.05

0.05

MC's data is comparable to non-consolidated occupational health and safety data only, as it is based on various places of business.

Data Related to Regular Health Checkups (Consolidated and Non-Consolidated Basis)
Health Checkup Rate for Domestic (Japan-Based) MC Group Company Employees (Consolidated Basis)
FY2020
Health checkup implementation rate for domestic (Japan-based) employees

FY2021100%

FY2022
100%

100%

Health Checkup Rate for Domestic (Japan-based) Employees (Non-Consolidated Basis)
FY2020
Health checkup rate for domestic (Japan-based) employees

FY2021
100%

216

FY2022
100%

100%

Environment

SocialGovernance

Percentage of Annual Paid Leave Taken (Non-Consolidated Basis)
Percentage of Annual Paid Leave Taken (Non-Consolidated Basis)
FY2020Percentage of annual paid leave taken

FY202155%

FY2022
60%

67%

Other Data
Head Office Clinic Usage
Patients in FY2022: (total no. of people)

Approximately 17,745 people per year (Medical examinations: 5,722; general medical examinations: 10,897;
overseas medical consultations, health guidance and others: 1,126)

Health Checkup Results
FY2020

FY2021

FY2022

Overseas assignees checkup rate

80%

77%

86%

Domesitic assignees checkup rate

84%

84%

90%

-

100%

100%

Health guidance for employees who meet certain standards based on healthcheckup results etc. (health guidance for those who received findings inaccordance with Article 6 and Paragraph 7 of Japan's Industrial Safety and Health
Act)

Stress Check Results (Domestic)
FY2020
Checkup rate

FY202195%

FY202294%

FY202394%

94%

Training and Education Performance
Participants
Training Course Title

Theme

TargetFY2022

Organizational management training

Lecture on Safety and Health Management by the supervising occupational
physicianTeam Leaders

96

Health included as a theme in New
Manager (M2)

Training introductory seminar

Persons promoted to
management positions

151

Intermediate Follow-up Training for
new employees

Lecture on stress management

University graduate
employees

121

Induction training for mid-careerhires

Lecture on stress management

Mid-career hires

42

Instructor training

Lecture on workplace mental health“Instructor” employees

123

Domestic assignment orientation

Mental health included as theme in lecture on human resources management.
Lecture delivered by legal advisor.

Managers
sites/companies

150

MC Skill-up Seminar“Labor law and personnel management” lecture on the basics of labor law andlabor management (mental health care, harassment, etc.)

Employees whose
work requires it(application basis)

23

Participants
Training Course Title

Theme

Care for subordinates’ mental healthduring the COVID-19 pandemic(Only implemented in FY2020)

Lecture on “Care for subordinates’ mental health during the COVID-19 pandemic”
by supervising occupational physician and in-house licensed psychologist

217

TargetManagement

FY20203,162

Environment

SocialGovernance

Number of Consultations with MC's Mental Health Support Desk
FY2020

FY2021

Number of people receiving consultations

FY2022

205

263

270

Total number of consultations

1,909

2,431

3116

Number of courses concerning care for subordinates' mental health(1,276)(1,592)(1,687)

Presenteeism
FY2020

FY2021

FY2022

Respondents

4,520

5,376

5,206

Absolute presenteeism (WHO-HPQ)
Note: Out of 100 points

65.9

67.9

69.5

Relative presenteeism (WHO-HPQ)
Note: Range of 0.25 to 2

1.09

1.11

1.11

Incidence of Obesity (BMI of 25 or Over)FY2020

FY2021

FY2022

Male

30.6%

28.7%

28.9%

Female

9.7%

5.9%

6.3%

Total

23.4%

23.0%

23.3%

Additionally, we collect and analyze data such as medical check-up items and numerical values, as well as questionnaires in order to
identify issues and consider response measures.

Other Metrics
FY2021
Weight Gain Since
Age 20（*1）

FY2022

Dietary Risks（*2）

Awareness ofLifestyle
Improvement（*3）

Weight Gain Since
Age 20（*1）

Dietary Risks（*2）

Awareness ofLifestyle
Improvement（*3）

Male

32.8%

30.7%

55.9%

32.8%

33.7%

52.0%

Female

12.2%

27.3%

39.6%

13.4%

32.9%

35.2%

Total

27.5%

29.9%

51.8%

28.0%

35.5%

47.9%

All data is based on in-house data from MC clinics.

Independent Practitioner’s Assurance
ESG Data marked with a star (★) has received independent practitioner’s assurance from Deloitte Tohmatsu Sustainability Co., Ltd.
Reference:

Independent Practitioner’s Assurance Report218

Environment

SocialGovernanceSocialHuman Resource Development
PolicyTargets

Structure

Initiatives

Performance

PolicyPrinciples of Human Resource Development
MC's basic policy on human resources development (HRD) is to continuously produce “management-minded human capital committed
to enhancing business value,” and to ensure the stepwise development of both a strong moral compass and advanced conception andexecution skills in all of its people.
MC's off-the-job training (OFF-JT) is designed to equip employees with the necessary knowledge and competencies to sharpen theabovementioned traits at each of their Job Grades and at the right stages of their careers. MC's HR training programs support the careerdevelopment of all employees throughout the MC Group, including those at MC's parent company, its overseas offices and its groupcompanies in Japan and around the world.

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Environment

SocialGovernanceTargets
Priority Targets and Current Status
MC has identified the following three priorities for its efforts to enhance and expand its training systems. With the aim of implementing an
HR strategy that responds promptly to management strategies, we will respond to rapid changes in the operating environment, promote
the right people to the right positions and strengthen our ability to respond to changes in the environment so that all employees candemonstrate their capabilities.

Reskilling to Adapt to Change: Leadership Development
Through a wide variety of HR development programs, MC is working to update leadership skills in response to changes in the businessenvironment. We will embrace HR diversity to make the most of our diverse and versatile talent pool, and strengthen growth support
skills. We believe that employees in Team Leader positions, who serve as a nodal point between management and the workplace, play aparticularly important role in realizing a “dynamic, spirited and vibrant organization,” and we hold the MC Leadership Program for newly
appointed Team Leaders over three sessions from May to October. We provide content such as leadership development that helps todemonstrate appropriate leadership styles according to each business stage, and organizational development that promotes
improvement after visualizing the various situations and issues facing the organization.

Talent Management that Leverages Individuality
MC respects the diverse work styles and values of individuals and are expanding our efforts to support career autonomy, to ensure thatour diverse and versatile talent pool feels a sense of satisfaction and pride in their work, and to continue to grow and play an active role
while making use of their abilities to the fullest.

Promoting DX
To accelerate DX, we have defined the areas based on “DX Talent Type”, specifically “producers,” “business designers,” and “architects.”
We have started offering training in the skills required for each of these areas through the MC DX Advancement Program, an on-demand
training program that allows each participant to learn based on their individual level. All executives and employees have begun taking
this program in FY2022. In addition, we are working to develop human resources who will lead our DX projects through other training
programs, including programming training for those in charge of DX promotion and new business launch, workshops on web service
launch, courses for management, , and the Innovators’ Program.

Outcome Metrics
MetricTotal cost of training

FY2021 Result

FY2022 Result

FY2023 Target

1.75 billion yen

2.43 billion yen

2.43 billion yen

13.2 hours

21.8 hours

21.8 hours

95%

96.2%

96.2%

-

About 99.0%

100%

Average training hours per person
Percentage of professional staff who have acquired businesslevel English by the third year of employment
DX-related training attendance rate

220

Environment

SocialGovernance

Structure
Officer in Charge
Deliberative Body
(A subcommittee under the Executive Committee, amanagement decisionmaking body)

Department in Charge

Yutaka Kashiwagi (Director, Executive Vice President, Corporate Functional Officer, IT, CAO, Chief Compliance
Officer, Officer for Emergency Crisis Management Headquarters)
Human Resources Development (HRD) Committee
Important matters related to human resource development deliberated by the HRD Committee are formallyapproved by the Executive Committee and put forward or reported to the Board of Directors based on prescribedstandards.
Global Human Resources Dept.

MC Group HRD Program Structure

221

Environment

SocialGovernanceInitiatives
Promoting Career Autonomy
We respect the diverse work views and values of individuals and are expanding our efforts to support career autonomy, to ensure thatour diverse and versatile talent pool feels a sense of satisfaction and pride in their work, and to continue to grow and play an active role
while making use of their abilities to the fullest.

Growth Dialogues
With the goal of increasing the effectiveness of employees' autonomous growth, we conduct annual reviews focusing on employee skill
development and career building, and provide opportunities for dialogue with supervisors.

Feedback Supporting Growth
Prior to Growth Dialogues, employees who lead certain organizations undergo a 360-degree management review from their superiors,
subordinates, and colleagues, while other employees receive team feedback from their subordinates and colleagues. This provides
opportunities for growth support leading to increased awareness and improvement of behavior.

Talent Review Program
MC has established a mechanism to encourage the development of employees' skills and careers through observation and assessment
from multiple perspectives by sharing skill growth and career aspirations of employees confirmed through Growth Dialogues with a wider
population.

Mechanisms that Encourage Career Autonomy
Based on individual career aspirations along with skills and qualities that employees want to develop in the future, we will promote open
recruitment assignments to support the transfer of employees to positions they wish to take on and Dual Career initiatives that provide
opportunities for skill acquisition and growth through in-house dual work.

Career Shift Support
Employees turning 50 or 55 are required to take career design training courses as an opportunity to think autonomously about their
future life and career, including post-retirement. Furthermore, for those in their late 40s who wish to participate, in addition to career
design training, we provide briefings on company schemes as well as financial planning seminars.

222

Environment

SocialGovernanceIntroduction of Human Resource Development Programs
Basic and Specialized Training
When employees first join MC, they participate in training programs designed to equip them with basic business, communication,
analytical and management skills. They also work on becoming globally competitive professionals, something that all sogo shosha(trading company) employees must aspire to be.

New Employee Training
This training focuses on instilling employees with the knowledge, skills and other qualities required of both working professionals ingeneral and those employed by MC. We also implement programs that contribute to strengthening conceptual abilities for incorporating
environmental and societal issues into business.

Business Basic Skill Program and Business Advanced Skill ProgramThis comprehensive, two-stage training program is designed to strengthen the basic skills of young employees who are in their first three
years with MC, covering finance and accounting, bookkeeping, M&A operations, English-language proficiency, leadership and otherareas. The first stage is the Business Basic Skill Program (BBS) and the second is the Business Advanced Skill Program (BAS).

Global Trainee Program
The purpose of this program is to rapidly develop and diversify young employees. To achieve this goal, MC utilizes its overseas
assignment system so that all employees will, in principle, be provided with overseas experience at some point during their first eight
years of employment. By exploring viewpoints and multifaceted perspectives that they would not encounter in Japan, trainees improvetheir conceptual capabilities and learn how to cooperate with diverse individuals in order to see a project through to completion.
・Global Trainee Program (OJT)
This program aims to further develop employees as businesspeople by having them experience on-the-job training (OJT) in anenvironment different to Japan, such as at overseas MC offices or subsidiaries, etc. In order for them to become immersed in the local
environment and learn as much as possible about their training country, trainees study the official language of the country both before
and during their training.
・Global Trainee Program (Regional)
As business becomes more and more globalized, to develop projects that are deeply rooted in each country/region, it is very important
to not only have business skills, but to also have a deep understanding of the respective countries or regions. Starting with acquiring
language ability, in order to deepen knowledge about concerned countries and regions, 1.5-2-year language training and OJT is held in
various countries, such as Indonesia, Thailand, Vietnam, China, Turkey, Brazil, etc.
・Global Trainee Program (Business Schools)
In order to develop human resources with a grasp of the most up-to-date business management methods and extensive problem-solving
abilities, MC dispatches trainees to business schools in Europe, America and Asia. After completing their training, they make use of their
newly acquired knowledge and skills by working in various areas, such as contributing to the management of MC subsidiaries, etc.

223

Environment

SocialGovernance

Assignment of Global Trainees (FY2020~ FY2022)

Leadership
MC offers training programs that are designed to sharpen employees' thinking as managers and equip them with the skills to help growbusiness value. These programs help to enhance employees' business and digital-strategy conception skills and their HR management
skills. Additionally, in line with the new personnel system, which highlights "growth support" for subordinates and colleagues as a key
mission for management, MC is developing and expanding training programs aimed at delivering the skills and knowledge necessary for
growth support management.

Instructor Training
MC appoints senior employees to act as instructors by giving them the responsibility of training new employees that join their workplace.
These instructors are responsible for actively providing guidance on day-to-day operations and instructing and educating employees on
the qualities necessary to be an MC employee. We provide instructors with training on how to guide new employees and support their
growth so they can demonstrate their abilities immediately and progressively build relationships.

Innovators’ Program
Run by MC with the support of professors from institutions including Stanford University this program aims to nurture the conception
skills necessary to grow business value. It is a good platform for focused learning around design thinking, and other thought processes
that inspire innovation, as well as the background and mechanisms behind the rapid growth of Silicon Valley enterprises.

Online Business School
Designed for employees appointed to management-level, this system enables participants to take online correspondence courses from
top overseas universities. Participants are free to choose from a wide range of programs that cover topics such as leadership, strategy,
and finance.

Overseas Business Schools
MC dispatches management level employees to short-term programs at top business schools in the US, Europe and Asia. These
assignments are designed to build up employees' management skills and networks with other program participants from diverse culturesand industries.

224

Environment

SocialGovernance

MC Leadership Program
We believe that Team Leader positions, who serve as a nodal point between management and the workplace, play a particularly
important role in realizing a "dynamic, spirited and vibrant organization." Designed to equip participants with the leadership know-how
and skills in growth-support management, and performance management needed to support subordinates' career growth and otherwise
manage organizations, the MC Leadership Program trains approximately 150 newly-posted Team Leaderemployees per year.

Business Management Program
At present, 30% of MC's employees are on secondments to MC's subsidiaries and affiliates, which they are directly engaged inmanaging. The objective of the Business Management Program is to provide such secondees with the skills they will need in areas suchas leadership, diversity management, corporate strategy and governance, and organizational development in order to run organizations
and enhance business value.

MC Executives’ ProgramThis program, which targets executive candidates employees, has been running since FY2003. Its core feature is its managementissues workshops, which involve discussions and presentations for VPs and other current executives on a variety of company's
management issues. Lively opinion exchanges with the diversely experienced participants, lectures by internal and external businessleaders, and other rich content make this program a good opportunity for executive candidates to broaden their perspectives, learn how
high-level managers think and network with professionals from all of MC's Business Groups.

Autonomous Learning
To provide employees with more opportunities for proactive learning and self-improvement, and thereby encourage “self-growth,” MCcontinues to enhance and upgrade its independent study programs. We have also introduced the Online Learning Platform that can beaccessed by all employees, creating an environment that allows people to freely select and learn from a variety of educational courses.
This was done in order to help employees adapt to changes in the business environment, as well as to expand the number of learning
opportunities that can be tailored to meet the needs of a diverse array of individuals.

Online Learning Platform
To support the diversification, modernization, and optimization of learning content, as well as the improvement of individual abilities andskills through autonomous learning, MC has introduced a platform that allows students to learn from a wide range of online content. In
addition to providing access to approximately 9,500 pieces of online content, this platform also contains over 75videos covering internal
topics. A typical employee will watch at least 10 hours of video on this platform every year (based on figures for FY2022).

Career Vision Training
MC utilizes its personnel system and various other means in order to integrate employee development with corporate growth. We
recognize that a vital part of employee development is a strong personal desire to achieve autonomous growth, and therefore beganproviding a Career Vision Training course via e-learning in FY2022 as part of our efforts to support such development. Career Vision
Training aims to teach participants how to reflect on their careers in a way that will help them to continue to grow autonomously,
visualize their own talents, and produce results by formulating and implementing action plans designed to realize their career visions.

MC Skill-up Seminar
MC offers a number of courses to foster skills and abilities that connect to development of expertise, foresight and execution skills.

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MC Self-Development ProgramThis program is designed to equip employees with useful management, business and language expertise. MC encourages employees totake a selection of designated courses.

Competency Development Support ProgramThis program encourages self-growth and the kind of commitment to raising business value that is typically demonstrated by those inupper management. MC helps employees to take courses that are considered suitable for those in the "Frontline Professionals" stage of
their careers.

DX Reskill Program
To further accelerate DX, MC is rolling out training according to each employee's level so that they can acquire the digital knowledge
they need. MC provides opportunities for programming training and web service development workshops for employees in charge of
implementing new businesses and DX promotion as well as programs for project managers to understand the entire process of businessdevelopment and business improvement projects from planning and conception to development. MC also provides a mandatory course
aimed at improving IT and digital literacy for all employees, as well as some specific courses tailored to individual levels.

IT and Digital Literacy Courses for All Executives and Employees
MC is working to reskill its human resources in order to enhance their adaptability and DX capabilities. As part of these efforts, the MC
DX Advancement Program was recently established to provide all MC executives and employees with the IT and digital literacy skills
they need. The program consists of an on-demand training course that allows each participant to learn in a balanced, gradual fashion
based on their individual skill level. The MC DX Advancement Program offers approximately 70 hours of lessons spread across 16
courses that cover a wide range of topics, such as data design and DX project management. These courses can be accessed by all MC
executives and employees.

IT and Digital Issue Courses for Management
MC provides training courses on DX and IT utilization to its management with the aim of helping them make proper decisions and give
appropriate advice to their subordinates. These courses are designed to deepen management’s understanding of a variety of topics,
including the leadership characteristics needed in the DX era when introducing new technologies, appropriate communication methods,
the timing of decision-making, and points to consider when making decisions.

MC Group Values
To comprehensively strengthen its consolidated workforce of 80,000 global professionals, MC is dedicated to sharing values andbuilding robust networks throughout the MC Group.

MC Group Gateway Program
Since FY2010, the MC Group Gateway Program has been conducted as an orientation program for employees of MC's offices andgroup companies worldwide. Held in Tokyo in both Japanese and English, the program's objectives are to encourage employees toshare MC's corporate principles and values, and to foster a greater understanding of the MC Group. Approximately 4,600 people haveparticipated in the program since its inception. Similar orientation programs to share MC Group values are being held in other regions.

International Transfers
In recent years, we have been transferring more employees hired at MC overseas offices to other countries to meet the growing needsof our global operations. These international transfers provide a wide range of experiences and help to refine employees’ global
perspectives. At the same time, they give employees a clearer understanding of the MC Group overall and its corporate policies. MC will
therefore continue to promote deployments on a consolidated, global basis, assigning the right people for the right positions.

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Performance
Human Resource Development and Training Data
Number of Training Participants (Non-Consolidated Basis)
Program NameBusiness Basic Skill Program
Business Advanced Skill Program
MC Executives’ Program

Eligible Employees

FY2020

FY2021

FY2022

1st or 2nd year employees

124

128

137

3rd year employees

121

114

124

Managing Director class employees

28

29

29

Overview of MC’s Training (Non-Consolidated Basis)
FY2020No. of training participants per year＊1

FY2021

FY2022

4,541

3,915

10,988

Approx. 92,000

Approx. 74,000

Approx. 118,000

16.0

13.2

21.8

Total cost of training＊3

1.63 billion yen

1.75billion yen

2.42 billion yen

Cost per employee＊4

286,000 yen

316,000 yen

445,000 yen

Total annual training hours
Annual training hours per employee＊2＊1 Training programs run by the Global HR Dept. at the Head Office.
＊2 Total annual training hours divided by the total number of employees.
＊3 Total cost includes internal development costs and billings for training related services, etc. from outside entities.
＊4 Total cost of training divided by the total number of employees.

Number of participants & training hours for each training program (excerpt from some training programs
organized by the Global HR Dept. at Head Office, FY2022)
Program Name

Eligible Employees

No. of Participants

Training Hours

Business Management ProgramⅠ

Employees involved in business management atdomestic and overseas MC Group companies

70

15.0

Business Management ProgramⅡ

Employees involved in business management as
executives at domestic and overseas MC Group
companies

36

18.5

Innovators’ Program

Employees expected to be responsible for businessconception, digital strategy, new business planning, etc.

92

77.0

MC Leadership Program

Newly appointed heads of internal organizations (Team
Leaders, etc.)

122

43.5

Online Business School

Employees promoted to a management-level position

147

Average 41.2

New Manager Training

Employees promoted to a management-level position

151

36.5

Instructor Training

Instructors (mentors for new employees)

141

17.0

Career Vision Training

6th year employees

107

10.0

Business Advanced Skill Program

3rd year employees

124

73.0

New Employee Training

1st year employees

121

184.5

Career Design

Employees over 48 years of age

1,646

19.0＊1

Assistant Career Vision Training

Secretarial Staff

239

24.5

Online self-learning platform (Udemy)

All employees

MC Skill-up SeminarAll employees (free to apply for each course)

5,596registered members＊1 Typical hours for employees in general management-level positions.
＊2 Average time for all 21courses.

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639

Average viewing time
10.4hours
Average 5.9hours＊2

Environment

SocialGovernanceSocialCustomer Responsibility
PolicyTargets

Initiatives

Participation in External Initiatives

PolicyResponsible Advertising and Marketing
MC engages in responsible advertising and marketing in line with the Three Corporate Principles, MC’s core philosophy, as well as with
the Corporate Standards of Conduct, the Social Charter and the Code of Conduct. Through its corporate communications activities, MC
strives to raise its brand value by conveying accurate information to the public while at the same time receiving feedback from external
stakeholders with humility and incorporating it into business activities.

Advertising
In order to present a consistent corporate image to customers and conduct advertising and promotional activities with the appropriate
messaging, content and media, MC has developed a set of internal rules, guidelines and manuals that include specific considerations
and stipulate approval and reporting procedures and other important matters. In particular, we take adequate precaution with respect toslanderous or discriminatory expressions, religious and political creeds, the environment, third-party privacy, confidentiality, disclosure
and intellectual property rights. We have also created manuals for MC Group companies to ensure consistency across the Group.

Marketing
MC engages in responsible marketing in a manner that respects third parties and their reputation. We use information and language thatis easy to understand and make sure to avoid any potential for misunderstandings with our customers. This is accomplished bycomplying with laws and regulations related to marketing (such as the Japanese Unfair Competition Prevention Act), formulating andcomplying with internal rules, and conducting training, etc.

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Policy and Approach Related to Food Products Businesses
While the MC Group conducts business in a variety of areas, the food products business is most directly connected to consumers. The
products we handle also cover a broad range and include processed foods, fresh foods, and beverages. For this business, we haveestablished value chains that cover activities ranging from raw material procurement and processing to product manufacturing,
distribution and retail. MC aims to meet the needs of an increasingly diverse and sophisticated consumer group and to respond to
mounting concerns over food safety and security. As we develop businesses closely connected to people’s daily lives, it is essential forthe growth of the MC Group that we provide products and services that add value for our consumers and that we obtain feedback
directly from consumers through our retail businesses including MC consolidated subsidiary Lawson, Inc. Consumer feedback isreflected back into our raw material procurement and processing, product manufacturing and distribution. Through this process, MC is
optimizing and driving forward its businesses with a "consumer-first" mindset. In promoting consumer-related businesses, MCrecognizes the issues involved (see below) and will conduct initiatives to prevent the occurrence of incidents and to mitigate theirimpacts.
Ensuring food safety
Ensuring reliability and proper provision of food (providing information on allergens, preventing provision of alcohol to minors,etc.)
Appropriate handling of customers’ personal data

Access to Better Nutrition and Medical Care
The MC Group conducts business activities globally which involve providing consumers with food products and medical services. From
upstream raw material procurement to downstream retail, we provide a stable supply of products and services that meet consumer
needs in order to help them lead rich and varied lives. With a mission of conducting business activities closely connected to food andmedicine, MC strives to ensure safety and security for consumers, thereby providing value that meets social requirements while also
contributing to improved access to better nutrition and medical care.

Policy and Approach for Access to Better Nutrition
In emerging countries, nutrient imbalances caused by lifestyle changes, increasing obesity, other lifestyle-related diseases and lower
nutrient intake due to eating difficulties caused by aging have all become broad social issues. In emerging countries, hunger andmalnutrition brought on by poverty and other conditions are widespread. At the same time, people are becoming more health-conscious.
Each of these trends has the potential to create new markets and generate business opportunities, especially in emerging countries. The
MC Group recognizes these social issues, and by leveraging the strength of our value chains which range from raw materials to retail aswell as our technical capacities in the food science business, we will work to improve, for example, nutrition for elderly people who are
nutrient deficient, etc., and to develop and provide nutritious products that meet consumer needs. Furthermore, we will strive to maintaina stable supply of products to prevent consumers from being negatively impacted by supply disruptions.

Policy and Approach to Providing Access to Better Medical Care
The MC Group is undertaking healthcare-related businesses through its Consumer Industry Group. In Japan, one pressing issue is thatgovernment finances are being strained by worsening business conditions faced by medical institutions and burgeoning social insurance
costs, which in turn reflect the aging population and growing medical expenditures. Meanwhile, in emerging countries, many people lackaccess to high-quality medical services due to underdeveloped healthcare environments and systems. Leveraging the knowledge andnetworks developed through its healthcare-related businesses over many years, the MC Group is working to address various healthcare
issues arising worldwide, with the aim of realizing a society with improved access to better healthcare.

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SocialGovernanceLawson, Inc. Initiatives
Sale of Alcohol
Lawson, Inc., an MC consolidated subsidiary, maintains non-alcohol sales areas and develops and sells products aimed at eliminating
the consumption of high-alcohol beverages in order to reduce the health risks caused by drinking and other lifestyle-related factors. The
Ministry of Health, Labor and Welfare's (MHLW) guidelines define "alcohol consumption that increases the risk of lifestyle-relateddiseases" as a daily net alcohol intake of 40 g or more for men and 20 g or more for women. To keep alcohol intake to 20 g or less, thealcohol content of 350 ml cans, which is the standard size for canned “chuhai,” must be below 7%, and the alcohol content of 500 ml
cans of beer, often purchased at convenience stores, must be below 5%.
Lawson develops and sells original “chuhai” and beer with the highest priority on taste rather than high alcohol content in accordancewith the MHLW guidelines. Lawson is not only working on the quantity of alcohol but also on improving the quality of alcohol by reducing
nonvolatile substances.

Advertising, Marketing and Labeling Guidelines
MC consolidated subsidiary Lawson, Inc. is characterized by its great variety of products and services it offers, which at the same timemeans that it must adhere to laws as well as both anticipate and respond to risks. Lawson’s “Basic Policy for Improvement of Internal
Control Systems” has been established to strive for healthy, continuous growth with these business characteristics. Japanese consumerlaws (such as the Food Labeling Act, the Food Sanitation Act and the Health Promotion Act) are held as important laws that need
especially to be followed as common knowledge in order to reliably improve systems to ensure Lawson’s indispensable product safety
and security, as well as to maintain consumer trust. Thus, Lawson attaches labels to its original lunchboxes and prepared foods incompliance with the Food Labeling Act indicating the product name, expiration date, ingredients, etc.
Moreover, the Intellectual Property Act and other laws are taken into consideration in order to further strengthen Lawson’s label-checking
system so as not to violate the intellectual property rights (trademark rights, copyrights, etc.) of others when creating promotional
materials.
Furthermore, Lawson publishes information about these in its Integrated Reports.

Employee Training for Compliance
MC consolidated subsidiary Lawson, Inc. conducts compliance and risk management training for all employees every year and aims forfurther improvement of ethical awareness and crisis-response capability. Compliance is also included in the training when employees
join Lawson or are promoted to managerial positions, training by job category, as well as management training. Moreover, by revising
the content of this training in accordance with changes in the status of risks, Lawson is working to improve operations by having
employees in all positions and job categories share their problems.
Furthermore, Lawson publishes information about the aforementioned on its homepage.

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Mitsubishi Shokuhin Co., Ltd. Initiatives
Sale of Alcohol
MC consolidated subsidiary Mitsubishi Shokuhin Co., Ltd. engages proactively in the sale of non-alcoholic beverages in its wholesale
operations in order to reduce the harmful effects of excessive alcohol consumption.

Advertising, Marketing and Labeling Guidelines for Processed Foods; Employee Compliance Training
In addition to upholding advertising guidelines, Mitsubishi Shokuhin conducts employee training on the relevant Food Labeling Act and
Act Against Unjustifiable Premiums and Misleading Representations every year.

Quality Management
MC is a member of the Japan Food Safety Management Association and collects information on Quality Management System (QMS)
and the Food Safety Management System (FSMS) to use when providing guidance to contracted manufacturing companies.

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SocialGovernanceTargets
MC’s goal in the life sciences field is to become the world’s leading company in the field. We will achieve this by sustaining growth andestablishing a robust presence in the food and health sector by further developing the Japanese domestic market through strategic
investment and innovative R&D based on our technical capacities, as well as through the provision of safe and reliable products.

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SocialGovernanceInitiatives
Initiatives on a Non-Consolidated Basis
Corporate Website and Corporate Brochure
Given the global presence of the MC Group, MC discloses information through its corporate websites in seven languages＊ (Japanese,
English, Chinese, Portuguese, French, Russian and Korean), and annually releases its corporate brochure in six languages (Japanese,
English, Chinese, French, Russian, and Spanish). The goal is to ensure accurate information disclosure to audiences around the world.
＊ Including websites of overseas subsidiaries

System for Responding to Inquiries
MC has created a Frequently Asked Questions (FAQ) page on its corporate website, and strives to respond to inquiries as quickly as
possible. In addition, the relevant divisions promptly address customer inquiries via the Head Office’s main telephone line.

Initiatives in the Food Science BusinessInitiatives by Mitsubishi Corporation Life Sciences Limited
Mitsubishi Corporation Life Sciences Limited develops seasonings, food-quality-improvement ingredients, and health food ingredients
utilizing the power of microorganisms, primarily yeast. It uses yeast extracts to offer low-sodium seasoning alternatives and is also
developing them as supplement ingredients for the health and beauty fields. Moreover, in the medical and nursing care sectors, MC is
proposing solutions to the issues affecting the elderly - such as difficulties in swallowing, aspiration pneumonia, and nutritional
deficiencies - through improved food texture formulations and thickening agents, protein food formulations, sweeteners, etc. MC also
proposes materials and applications for plant-based foods, and develops and sells materials that make effective use of unused
resources.
In this way, the MC Group will continue to develop safe and secure foods in the medical, nursing, and healthcare fields, thereby
contributing to the betterment of society.

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Response to Issues Related to the Food Products BusinessIn the food-related business, which is directly linked to consumers, the MC Group is working to address various related challenges
through its business.

Cermaq Initiatives
Cermaq, an MC subsidiary, considers the provision of healthy and sustainable food to be its core mission. A salmon producer, Cermaq
has the ambition to produce healthy and nutritious food to a growing world population and play a role in improving the global foodsystem by engaging in multi-stakeholder partnerships. Farmed salmon is one of the richest sources of omega-3 fatty acids, which are
fundamental for the formation and functionality of the nervous system and known to help lower the risk of cardiovascular diseaseIt . It isalso a sustainable food product, with a low carbon footprint and an efficient feed conversion ratio compared to other animal proteins.
Cermaq considers salmon farming as part of the solution to solving the world’s food needs and engages actively in partnerships to build
best practice and share knowledge across the food industry.

Reference:

Cermaq website

https://www.cermaq.com/sustainability/sustainability-reports

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SocialGovernanceLawson, Inc. Initiatives
Lawson, Inc., an MC consolidated subsidiary, manages and operates convenience stores. Lawson is closely connected to consumers
within the food products value chain, and conducts the following initiatives.

1) Promoting long-term healthLawson is committed to supporting healthy and long-lived lifestyles, something which is possible because it is a convenience store thatis aspires to be is ‘”close”’ to its customers, and makes them feel confident in the knowledge that there is always a Lawson nearby.
Lawson has introduced a "Meal Solutions" initiative which aims to provide healthy everyday food. This initiative offers a wide range ofmeals, makes these meals convenient to purchase, and takes into account health considerations. Thus, it is highly rated by consumers
who want not only quick and easy meals but also to pursue or maintain a healthy diet. Additionally, Lawson offers “self-medication
support” towards those who are concerned about their own health in order to help customers maintain good health by offering
consultation services.

Lawson Yushima Ekimae Store (Bunkyo, Tokyo)
A model shop with the optimal balance between
a convenience store and a drugstore(Picture from the time of opening)

Reference:Lawson website (Japanese only)

https://www.lawson.co.jp/company/activity/social/consumer/health/2) Materials procurement and quality management
Lawson’s subsidiary SCI, Inc. oversees Lawson’s supply chain management and is responsible for supplying original products that arealso safe and reliable. SCI conducts rigorous quality assessments, and in procuring raw materials only selects products that havepassed a stringent screening process based on Lawson’s quality control standards. In the product manufacturing process, for example
at plants that produce rice products, a unique system for food sanitation management that includes a recommendation to obtain JFS-B
certification, a Hazard Analysis and Critical Control Point (HAACP) standard originating in Japan, has been established to prevent
incidents involving food poisoning or contamination. In this way, Lawson procures safe raw materials and carries out rigorous quality
control to prevent any negative health impacts on consumers. Furthermore, Lawson has established the "Lawson Farm" project, which
provides stable supplies of fresh fruits and vegetables that are safe, reliable and high quality to stores in the Lawson Group. As ofJanuary 31, 2023, there are 16 LAWSON Farms in Japan, all of which are working to acquire JGAP and ASIAGAP＊ certification.

Reference:Lawson website (Japanese only)
https://www.lawson.co.jp/company/activity/lawsonfarm/＊ GAP: Good Agricultural Practice
LAWSON Farms will acquire regular Japanese JGAP and international-standard ASIAGAP

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SocialGovernance3) Clarification of product information
Lawson's products are labeled with food labels in compliance with the law. Additionally, Lawson lists boxed lunches, rice balls,
sandwiches, cooked noodles, prepared foods, and fast-food items containing allergens on its website. The labeling information ischecked internally and by external organizations to ensure customer safety.

4) Preventing the sale of alcohol and tobacco products to persons under 20 years of age
In order to prevent the sale of alcoholic beverages and cigarettes to those under 20 years of age (the legal age for drinking and smoking
in Japan), Lawson displays a notice on the screen visible to customers on the point of sale (POS) cash register explaining that the saleof alcoholic beverages and cigarettes to those under 20 years of age is prohibited. At the POS, customers who appear to be under 20
years of age are asked to confirm their age with an ID card. In addition to providing regular training for store employees, Lawson
displays posters and makes in-store announcements to encourage understanding and cooperation from customers.

5) Safety Station activities
From crime prevention and disaster preparedness to safety measures and children’s health initiatives, there is an ever-increasing
expectation for convenience stores to play a broader role in society. To meet these expectations, the Lawson Group participates in the
Safety Station activities of the Japan Franchise Association, helping to build safe and secure communities and promoting healthy
environments for young people. Lawson also implements anti-crime measures to combat theft and other crimes, while also supporting
women and children who seek safe harbor in-store.
〈Examples of Safety Station Activities〉
Preventing bank transfer scams
Examples include a member of staff preventing a bank transfer scam when noticing suspicious behavior by a customer using an instore ATM machine, and another staff member questioning the intentions of a customer wanting to send money, thereby preventing a
potential refund scam.
Caring for people with sudden illnesses and senior citizens
Examples include administering first aid to a customer who had sudden pain while shopping and accompanying that customer to thehospital, and escorting an elderly customer believed to have dementia back home due to sudden memory loss. An increasing numberof stores are able to provide this kind of assistance to customers in need of help.
Supporting local crime prevention and disaster preparedness activities
Lawson conducts presentations at elementary schools near its stores on measures it takes to prevent shoplifting and other crimes.
Staff members also act as youth guidance personnel and regularly patrol the streets near middle schools, helping to prevent antisocial behavior. Through such activities, Lawson is contributing to the creation of safe communities and healthy environments foryoung people.
Reference:Lawson website (Japanese only)

https://www.lawson.co.jp/company/activity/social/community/safetystation/

Appropriate Food Labeling Initiatives
When people with food allergies consume an allergen it can trigger anaphylaxis. Similarly, consuming large quantities of certain
substances can potentially damage one’s health. To prevent such problems, the MC Group strives to label its food products in a way thatis easy to understand in accordance with applicable laws and regulations. To ensure that consumers understand product characteristics
and are in a position to make appropriate purchasing decisions based on health and other factors, Mitsubishi Shokuhin Co., Ltd.,
Lawson, Inc. and other MC Group companies make it a top priority to comply with laws and regulations such as Japan’s Food LabelingAct. These companies provide information which is easy to understand from the consumer standpoint such as quality labeling, warnings
related to alcoholism, acute alcohol poisoning, and underage drinking, as well as clear allergen warnings.

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Environment

SocialGovernanceNutritious Product Initiatives
Lawson, Inc. Initiatives
Offering low-carbohydrate/high protein/fiber-rich bakery products and nutritionally-balanced Natural Lawson brand products
Lawson, an MC subsidiary, offers health-conscious products such as Bran Bread, which is low-carbohydrate, and bakery products madeusing pearl barley, which contains a lot of nutritional components such as dietary fiber.
In addition, the Natural Lawson brand, which focuses on raw materials with the theme of beauty and health, not only allows customers toenjoy the original taste of the ingredients, but also develops unique products such as confectionery, rice balls, and salads to support
their healthy lifestyles.

Reference:Lawson website (Japanese only)
https://www.lawson.co.jp/company/activity/social/consumer/health/

Mitsubishi Shokuhin Co., Ltd. Initiatives
In addition to striving for nutrition information labels that are easy for consumers to understand, Mitsubishi Shokuhin is also working todevelop health-conscious Karada Shift products.

Reference:

About Karada Shift: https://karadashift.jp/ (in Japanese)237

Environment

SocialGovernanceInitiatives for Better Access to Medical Care
As a company engaged in the healthcare sector, MC is involved in the following initiatives with its Group companies to help provide
people in Japan and around the world with better access to healthcare.

Stabilizing Medical Care in Japan and Raising the Elderly’s Quality of LifeMC Healthcare Holdings, Inc., a MC consolidated subsidiary in Japan, is contributing to the improvement of hospital operations as wellas the enhancement and stability of domestic medical systems through procurement and inventory control of medical supplies andequipment, group purchasing and system installation support. MC Healthcare is also applying its experience and expertise in the rapidly
growing Chinese market. Nippon Care Supply Co., Ltd. is a pioneering provider of rental welfare equipment and in-home nursing careservices. In order to raise the quality of life of the elderly and enable them to continue living independently in their accustomed area,
Nippon Care Supply conducts its core business of renting welfare equipment as well as other businesses including providing meals to
day service facilities and other institutions. In doing so, Nippon Care Supply is contributing towards a healthy longevity society where allsenior citizens can live comfortably and with peace of mind.

Access to Medical Care in Local Communities
As a convenience store closely connected to consumers, Lawson, Inc., an MC consolidated subsidiary, is focusing on the sale ofpharmaceutical products in order to provide convenience to customers in an aging society and to curb national healthcare costs. In
regard to pharmacy services provided under health insurance, since 2003 we have been working on the development of stores with drug
dispensing pharmacies on the premises with the aim of creating community pharmacies. In addition, from the perspective of promoting
self-medication, we have been fostering alliances with drug dispensing pharmacies and drugstore chains throughout Japan, andhandling over-the-counter medicine (non-prescription drugs) in our stores. In addition, as a Lawson exclusive initiative based on“community,” some of our stores offer onsite health checkups and machikado (street corner) community health consultations. In
cooperation with local governments, health checkupscheck-ups and consultations, which were previously conducted at government
offices and community centers, are now available at convenience stores, a more familiar and accessible location for residents.
Reference:Lawson website (Japanese only)

https://www.lawson.co.jp/company/activity/social/community/safetystation/

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SocialGovernanceParticipation in External Initiatives
Cermaq, an MC subsidiary, engages in external sustainability initiatives in line with its strategy, which emphasizes partnerships to findsolutions for salmon and seafood sector inline related to the UN Sustainable Development Goals (SDGs). In particular, three goals havebeen identified as high priority for Cermaq, including Goal 2: Zero Hunger, Goal 13: Climate Action, and Goal 14: Life Below Water.
Cermaq engages in industry and multi-stakeholder initiatives to find solutions, on different levels.
Examples of initiatives include:

Salmon Aquaculture Industry - Global Salmon Initiative (GSI)
GSI is a leadership initiative established by global farmed salmon producers. It seeks to provide a highly sustainable source of healthyprotein to feed a growing global population, in tandem with minimizing the environmental footprint, and continuing to improve theindustry’s contributions to society.

Seafood Industry - SeaBOS
Seafood Business for Ocean Stewardship. Established in 2016 by nine of the world’s largest seafood companies (including Cermaq,
Thai Union, Nissui, Maruha Nichiro, and Mowi) working together with leading scientists across disciplines and universities, to exploretransformative risks and opportunities to promote sustainable seafood operations and ensure a healthy ocean.

UN Global Compact - Ocean Stewardship Coalition
Cermaq has been a Global Compact member since 2011 aligning with their strategies and operations with universal principles on humanrights, labor, environment and anti-corruption, and actions that advance societal goals.

Reference:

Cermaq's Corporate Website

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Environment

SocialGovernanceSocialCommunity
PolicyStructure

Corporate Philanthropy Activities

Examples of Initiatives

Other Reference Data

PolicyBasic Approach
One of MC’s Materialities is “Addressing Regional Issues and Growing Together with Local Communities,” through which MC strives tocontribute to regional development through its business and corporate philanthropy initiatives and grow together with the regions andcommunities where it operates.

Policy on Community Investment
In identifying "Addressing Regional Issues and Growing Together with Local Communities" as one of its Materialities, MC recognizes thevalue of building relationships with communities for the success of its businesses. Furthermore, by growing together with communities
through job creation, promoting community development and procuring raw materials from local communities, MC also strives tominimize negative impacts. Growing together with local communities is equally as important as advancing MC’s businesses andgenerating financial return. This represents the true spirit of MC, which seeks to simultaneously generate economic, environmental, andsocietal value.

Policy on Local Employment and Procurement
MC appreciates that local employment and procurement have an important role to play in building positive relationships with andcontributing to the sustainable development of the countries and regions in which it operates (as outlined in ISO26000, etc.). MC
understands that hiring employees and procuring goods and services from the local areas near to project operations contributes to thesustainable development of the region through local human resource development and through social and economic growth. As acompany with business operations in many countries and regions across the globe, MC will endeavor to make economic contributions
through its business by way of local employment and procurement, as well as social contributions through various philanthropic efforts,
with the aim of growing together with local communities.

Policy on Mine/Site Decommissioning
MC believes in the importance of minimizing impact on the environment and society when carrying out decommissioning for mining andfor oil and gas projects. When carrying out these projects, in order to ensure that measures for future decommissioning are undertakensmoothly and appropriately, MC will, from initial project planning through to operation, carry out environmental impact assessments inaccordance with the laws of the countries and regions in which it operates as well as with international principles＊. In addition, MC will
engage in dialogue with governments, local communities and other stakeholders in order to develop appropriate decommissioning plans
and implement necessary measures such as rehabilitation in order to minimize impact on the environment and communities.
＊ The ICMM (International Council on Mining & Metals) 10 Principles, etc.

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SocialGovernance

Structure
Officers in Charge

Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO)

Deliberative Body
management decisionmaking body)

Sustainability & CSR Committee
Important matters related to communities deliberated by the Sustainability & CSR Committee are formally approvedby the Executive Committee and put forward or reported to the Board of Directors based on prescribed standards.

Departments in Charge

Sustainability Dept.

(A subcommittee under the Executive Committee, aReference:

Diagram of the Sustainability Promotion Framework

Risk Management
When reviewing and making decisions on loan and investment proposals, MC not only takes economic factors into consideration, butalso places importance on ESG as well. We also take into account revitalization of the local society and economy, the status of thesurroundings such as indigenous people and cultural assets, and related factors. Besides screening new investment and exit proposals,
MC also strives to make improvements to existing business investments by monitoring their management practices.

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SocialGovernanceCorporate Philanthropy Activities
In keeping with our belief that MC’s sustainable growth cannot be achieved without realizing a sustainable society, we address ourMateriality through both business and philanthropic activities. MC engages in philanthropic activities that are in line with threeoverarching themes: “Realizing an Inclusive Society,” “Empowering the Next Generation” and “Conserving the Environment.” In addition,
MC also provides support for regions affected by natural disasters, which includes recovery efforts for the Great East Japan Earthquake.
Each of our philanthropic activities is conducted with a focus on long-running initiatives in which our employees can voluntarily take partand which highlight and respect the unique strengths of our company. These contribute to MC’s overall pursuit of businesses thatgenerate value for societies.

Employee Volunteer Activities
MC places great emphasis on deepening employee awareness of the importance of giving back to society. We therefore have taken
steps to encourage employee participation in volunteer activities, for example, by establishing a volunteer leave system and by holding
in-house volunteer programs during lunch hours. In addition, MC launched a series of relief activities in the immediate aftermath of theGreat East Japan Earthquake in 2011, and as of March 31, 2021, a total of 4,958 employees had participated in those activities asvolunteers.

Volunteer Token System/Volunteer Leave System
MC donates to NPOs, foundations and other organizations that engage in public welfare, educational and environmental initiatives
based on a virtual token system. Employees earn tokens by participating in volunteer activities, with each token worth a corporate
donation of ¥500. Tokens are awarded not only for volunteer work organized by MC, but also for activities undertaken independently by
employees during their private time outside of work. Employees can take up to five days of leave each year to participate in volunteer
activities, not only for MC-organized activities, but also for personal activities outside of the Company.

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SocialGovernanceDREAM AS ONE.
MC launched the DREAM AS ONE. Project in 2014 in order to enhance a long-running program aimed at making sports more accessible
for people with impairments. During FY2023, roughly 17 different events were conducted, including sports classes for children with
impairments, para-sports classes with para-athletes. In addition, currently MC employs six para-athletes and also provided ascholarships to 8 student(A total of 10 students) para-athlete, all of whom are continuing their activities to pursue their dreams.
Furthermore, as a new initiative, MC will become a co-creation partner of the Next Para-Athlete Scholarship(NPAS) program, ascholarship sponsered by the Paralympians Association of Japan, to provide programs that contribute to personal growth andimprovements in athletic performance. We also actively hold classes with para-athletes on para-sports and increase understanding of
impairments at elementary, junior and senior high schools as well as local governments across Japan.

MC employee and athlete Mr. Takahashi at a seminar event

Support through Charitable Foundations
Activities

Year of Establishment and Paid-in Capital(Cumulative)

Mitsubishi Corporation
Disaster Relief Foundation

The Mitsubishi Corporation Disaster Relief Foundation promotes
recovery activities in areas affected by the Great East Japan Earthquake
through provision of scholarships and grants, as well as industry
revitalization and job creation.

Established in 2012
Approximately JPY13.5 billion(Including donations through the Mitsubishi Corporation
East Japan Earthquake Recovery Fund)

Mitsubishi Corporation
Foundation for the Americas(MCFA)The MCFA supports NGOs and other organizations engaged in
Established in 1991
ecosystem preservation, sustainable development, environmental justice,
Approximately USD13 million
and environmental education in the Americas.

Foundations and Funds

The MCFEA supports NGOs and other organizations involved in
Mitsubishi Corporation Fund forenvironmental conservation, related research and education, and poverty
Europe and Africa (MCFEA)
alleviation in Europe and Africa.

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Established in 1992
Approximately GBP6 million

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Mitsubishi Corporation Disaster Relief Foundation
MC created a ¥10 billion fund to provide financial support to reconstruction activities during the first four years following the Great East
Japan Earthquake, and has undertaken a variety of activities in line with the local needs and conditions in affected areas. In spring 2012,
we established the Mitsubishi Corporation Disaster Relief Foundation, which took over the scholarship program (now concluded) andsupport recovery grants from the original fund while also working to support industrial revitalization and job creation in the affectedareas. During FY2015, MC decided to donate an additional ¥3.5 billion to fund additional activities. We are continuing our original
initiatives and pursuing new projects such as our Fukushima Winery Project, which offers support for the fruit farming industry inKoriyama City, Fukushima Prefecture, through an innovative, vertically integrated business model.

* Total financial amounts including the activities of the Mitsubishi Corporation East Japan Earthquake Recovery Fund

Investing in the Future of the Areas Affected by the Disaster
MC’s activities in the fields of industry revitalization and job creation involve providing financial support (investment and loans). This
money must be repaid; an obligation that creates an appropriate sense of urgency which we believe contributes to business continuity.
However, a key difference of this system from ordinary financing is that payment for the principal and interest is not paid for up to 10
years until the business gets on track. If the business starts to make a profit, MC receives a portion as a distribution of profits. This profit
distribution is not retained in the foundation, but is instead donated to regional governmental organizations and other recovery support
funds in line with our Basic Policy, so that it can be reused for activities to support the recovery of areas impacted by the disaster. By
establishing a system to recirculate the recovery funds, MC is promoting further progress towards independence for the regional
economies.

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The Mitsubishi Corporation Foundation for the Americas (MCFA) andthe Mitsubishi Corporation Fund for Europe and Africa (MCFEA)
Through the Mitsubishi Corporation Foundation for the Americas (MCFA) and the Mitsubishi Corporation Fund for Europe and Africa(MCFEA), MC supports a wide range of initiatives focusing on environmental conservation, environmental education and research, andpoverty alleviation. The MCFA is a foundation that seeks to address environmental and societal issues in the Americas. It provides
support to NGOs and others engaged in activities related to conservation of biodiversity, sustainable development, environmental
justice, and environmental education. Since its establishment in 1991, the MCFA has spent approximately US$13 million. One project
supported to date is the Amazon Waters Initiative run by US-based Wildlife Conservation Society (WCS), which has seen improvements
in fisheries and has strengthened wildlife habitat management and monitoring in the Amazon River basin, as well as climate changerelated research activities. The MCFEA is a fund that seeks to address environmental and societal issues in developing countries in
Europe and Africa. The MCFEA supports NGOs and others engaged in activities related to environmental conservation, environmental
education and research, and poverty alleviation. Since its establishment in 1992, the MCFEA has spent approximately GBP 6 million.
Currently, the MCFEA supports initiatives including a sustainable cocoa farming project by Rainforest Alliance in the Ivory Coast.

Areas covered by WCS’s Amazon Waters Initiative©Wildlife Conservation Society

Reference:

For further details, please refer to MC's Corporate Philanthropy website.

http://www.mitsubishicorp.com/jp/en/csr/contribution/

MC’s Study Abroad Scholarship for High School Students
MC has supported an annual study abroad scholarship program for high school students through AFS Japan since FY2019. This
program is based on a curriculum where students attend school and stay with host families for approximately 10 months. The goal is forstudents to deepen their cross-cultural understanding and develop appreciation and empathy for others. Through the scholarship, MC
aim to open doors to high school students from all over the country who are interested in studying abroad but are unable to do so due tofinancial circumstances, and also to nurture future global talent. We offered 20 scholarships in the first year of the program, which has
since expanded to 70 in 2024.

Send-off party of MC Overseas Study Scholarshipfor High School Students

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Examples of Initiatives
Urban Management and Urban Development Projects to Enhance Urban Value inIndonesia
MC is exploring an urban management project and promoting a large-scale urban development project in collaboration with Sinar Mas
Land (SML), one of the largest real estate developers in Indonesia.
MC signed an MOU with SML in March 2020, initiating a joint execution of urban management as well as the implementation of smart
and digital solutions (urban services) in BSD City (6,000 hectares). This partnership between MC and SML aims to implement urban
services throughout BSD City, including an AI/IoT data platform, city portal, mobility, and energy-related content, in collaboration withvarious MC Group companies and partners across different business sectors.
After the signing of the MOU, we initiated the first trial operation of autonomous electric vehicles (AEVs) in Indonesia, followed by thesharing service experiment designed to promote a shift in behaviour from “owning” to ”renting”. Furthermore, we have recently embarked
on another experiment involving a mobile convenience store operated by electric vehicle. Through these initiatives, we have been
actively exploring different city service experiments and implementations aimed at addressing social issues while promoting city
sustainability.
At the same time, in the same city, MC is working with SML on a large-scale development. This project is the first transit-oriented
development* in Indonesia, and it will develop a smart city that combines urban functions such as residential units, commercial
properties, schools, hospitals, parks, and public transportation nodes on a new development site of over 100 hectares.
By encouraging a modal shift towards expanding and promoting the use of public transport, we aim to contribute not only to theeconomy, but also to society and the environment by helping to address issues such as traffic congestion and air pollution. Another goal
is to create convenient, safe, and secure urban developments through the implementation of urban services such as AI/IoT data
platform, city portal, mobility, and energy-related content.

Project image* Urban development based on public transit, aiming for a society that is not dependent on automobiles.

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HERE’s DX BusinessIn December 2019, MC concluded a capital and business partnership with HERE International B.V. (HERE*), and in May 2020, MC
invested 15% in HERE. MC will leverage its extensive industry knowledge to collaborate with HERE to accelerate the deployment of
their solutions (both automotive and non-automotive) in Japan and Asia-Pacific markets, where HERE is focusing.
Our specific initiatives with HERE are as follows.
Contributing to the mitigation of environmental impacts by improving the efficiency of logistics and eliminating traffic congestion
through the use of route optimization services in distribution and transportation.
Addressing regional issues such as driver shortages and difficulty accessing stores by improving the efficiency and sophistication oflast-mile delivery, for which demand is expected to increase, and middle-mile delivery, for which social infrastructure is being
developed.
Contributing to regional development by advancing and improving the efficiency of mobility services for regional cities with aging anddiminishing populations.
* HERE is a global leading location data and service provider with over 6,000 employees in 52 countries. The Company has a strong presence in theautomotive industry, and also works with leading companies across a wide range of industries, including transport and logistics, mobility, manufacturing
and retail and the public sector.

Local Procurement in the MDP Business
Since its establishment in 1968, MCʼs wholly owned subsidiary Mitsubishi Development Pty Ltd (MDP) has conducted resource mining
operations in Australia, while actively undertaking community-based activities. MDP’s 50% owned BMA metallurgical coal business inQueensland supports local communities in and around BMAʼs core operations through the Local Buying Program. The program wasestablished to connect local and indigenous businesses to work opportunities, and engages with over 550 local and indigenous suppliers
annually, creating job opportunities for approximately 8,000 people. The economic impact of this program is over AUD109 million every
year.

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Mine Closure Initiatives
When closing mines, the operators of MC’s jointly owned mines develop responsible mine closure plans that take into account socialand environmental factors. While complying with laws and regulations, MC and mine operators strive to minimize the impact on society
and the environment by communicating with stakeholders such as governments and local residents, developing appropriate mineclosure plans, and implementing necessary rehabilitation measures.
Reference:

Land Rehabilitation at Post-Mining Sites

Community Investment
Quellaveco Copper Mine
Together with British resource company Anglo American plc, MC owns Anglo American Quellaveco (MC’s affiliate), which is developing
the Quellaveco copper mine in the Republic of Peru.

Agreement with Local Residents
Over the course of 18 months from 2011, Quellaveco engaged in dialogue with the local stakeholders. As a result, 26 specificcommitments were agreed upon in the three areas of water management, environmental care, and social investment. Based on thesecommitments, which were based on the opinions of local stakeholders, Quellaveco is engaged in various community contribution
activities.

Water Management
To ensure that Quellaveco’s operation does not have a negative impact on the water supplies in our host communities, Quellaveco
mainly uses water for mining operations from a river that is not suitable for human consumption and agricultural use. In addition, theMoquegua Region of southern Peru, where Quellaveco is located, has suffered from drought during the dry season, and the waterQuellaveco will collect in its dam will be shared with the communities during the dry season, helping to improve the lives of the local
stakeholders.

Vizcachas Dam

Environmental Care
Coexistence with the natural environment is one of Quellaveco’s key values. Environmental care measures are incorporated into
operation plans, such as protection of wildlife feeding areas and habitats, transplantation and cultivation of plants, dust control throughroad maintenance and water sprinkling, and recycling (rather than discharge) of all contact water within the Quellaveco site. The effectsof these measures are constantly monitored and environmental surveys are held periodically with the participation of local stakeholders,providing opportunities to see for themselves that the natural environment of their homeland is being protected.

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SocialGovernanceSocial Investment
More than 30,000 jobs have been created at Quellaveco during the development work that began in 2018, and approximately 2,500 jobs
are expected to be created during the operational stage that began in July 2022. Furthermore, in order to provide as many job
opportunities as possible to the local stakeholders, Quellaveco actively offers vocational training to the people aspiring to acquire thevarious skills required in mining development and operations, as well as internships for local students. Focus is also placed on creating
employment opportunities for women, and job training programs are conducted specifically for women. In addition, to help promote local
industries, Quellaveco is prioritizing local businesses when procuring goods and services needed for mining development andoperations. The project is also promoting the development of agriculture and local industries through the “Quellaveco Fund,” which waslaunched in 2011.

“Agro Quinnellaveco” Project which funds and helps farmers

Quellaveco also launched various emergency relief measures in response to the outbreak of COVID-19. The project quickly procured
and delivered much needed supplies such as protective equipment, testing kits, ambulances, medical oxygen production plants andintensive care facilities to support medical institutions dealing with the rapid increase in the number of infected people. Quellaveco isalso working with local authorities to promote vaccination in Moquegua.

Promoting Sustainable Socio-Economic Development in Southern Peru
In Moquegua, Quellaveco has taken the lead in supporting the development of the region. In 2021, Anglo American, the International
Finance Corporation (IFC, member of the World Bank Group), the Regional Government of Moquegua, MC, and M.C. Inversiones Peru
(MC wholly-owned subsidiary in Peru) jointly launched “Moquegua Crece” (Spanish for “Development of Moquegua”), an innovative
public–private initiative to promote sustainable socio-economic development across the region. Various stakeholders in Moquegua,
including the private sector, NGOs, local communities, and the government, are working together toward the goal of long-term andinclusive development of local society. Specifically, the initiative aims at fostering coordinated action to implement sustainable regional
development initiatives that can maximize the potential of the Moquegua region by supporting the planning, implementation, andmonitoring of regional public development projects; developing local industries; and sustainable management and use of water andother natual resources. In 2023, this initiative started supporting the formulation of a long-term development plan for the Regional
Government of Moquegua to strengthen the public investment process and improve services and infrastructure for communities in theregion.

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SocialGovernanceSilica Sand Production at Cape Flattery Silica Mines
Cape Flattery Silica Mines Pty, Ltd. (CFSM), a wholly owned subsidiary of MC, is located in Queensland, Australia, and has supplied
silica sand to users in East Asia and Southeast Asia for over 50 years, since its establishment in 1967. Currently one of the world’s
largest silica mines, CFSM ships approximately 3 million tons of silica sand annually to glassmakers and other customers.

Contribution to Local Communities
1. Coexisting with traditional owners
The land where CFSM operates is owned by traditional owners. Accordingly, besides compensation, CFSM also prioritizes employment
from the local communities, offers to pay for vocational training and apprenticeships, offers funding support to local community
infrastructure, and conducts other initiatives in order to coexist with the local communities. Out of CFSM's roughly 100 employees,
indigenous people make up one third.
2. Coexisting with nature
CFSM restores vegetation to former mining areas, with some employees devoted to rehabilitation activities, returning these areas totheir original states. CFSM collects seeds from plants that grow naturally in the area and then plants and raises them in a designatednursery. After the mining is completed, the plants are planted back in the mining area. By spending 3-4 years to restore the site to its
original vegetation levels, CFSM is able to coexist with the natural environment.

Raising seedlings at a nursery

Rehabilitation (Immediately after planting)Rehabilitation (Some time after planting)

Applications for Silica Sand
The main applications for silica sand include glass, foundries, and chemicals. However, with environmental issues gaining attention
worldwide, CFSM is also responding to market needs by increasing the supply of materials to solar panel glass producers. Goingforward, CFSM will continue supporting the proliferation of clean energy by supplying their materials, while taking advantage of its
sustainable environment-friendly operations and stable quality and volume of product.

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Other Reference Data
Donation Amounts(Unit: JPY million)
Item
Social contributions, etc.

FY2020

FY2021

FY2022

2,577

1,279

1,465

Recovery support＊1

3

70

75

Political donations＊2

28

28

28

＊1 Amount includes MC’s contributions to the Mitsubishi Corporation Disaster Relief Foundation and donations to other organizations involved in recovery
support. For more information on the activities of the Mitsubishi Corporation Disaster Relief Foundation.
＊2 The amount of political donations made to political party fund management organizations. MC conducts political donations as part of its corporate
philanthropy initiatives. MC sets a policy to disclose the amount of political donations for 3 fiscal years on MC's Sustainability Website every year.

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SocialGovernanceSocialSupply Chain Management
PolicyStructure

Initiatives

External Collaboration

Related data

PolicyMitsubishi Corporation (MC), which is involved in businesses across a wide range of products and services worldwide, believes thatmaintaining sustainable supply chains is fundamental to doing business globally. MC has formulated its Materiality as a set of crucial
societal issues to address through its business activities, in order to continuously create MC Shared Value as set fourth in Midterm
Corporate Strategy 2024. Since MC handles a wide range of products and services globally, respect for human rights, which falls underthe material issues of "Promoting Stable, Sustainable Societies and Lifestyles" and "Respect for Human Rights in Our Business
Operations," is a crucial issue for management to address.
MC has established the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, which outlines MC’s actions toaddress human rights, labor rights and environmental issues in the supply chain. This policy serves to convey MC’s fundamental
perspective to all of its suppliers.

Basic Policy
Since its foundation, MC has adhered to the Three Corporate Principles which have guided its corporate philosophy and which placeconsiderable emphasis on the importance of its corporate social responsibilities. Moreover, our Corporate Standards of Conduct outline
our commitment to comply with all relevant laws and international regulations and to act responsibly with respect to the highest social
standards. Our Corporate Standards of Conduct further elaborate on our commitment to preserving the global environment and pursuingsustainable development through all aspects of our business activities.

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Sustainable Supply Chain Management
1. Policy
For MC, as a global company involved in businesses across a wide range of products and services, ensuring sustainable supply
chains is a key issue. MC has established the Mitsubishi Corporation Policy for Sustainable Supply Chain Management, which
outlines MC’s actions to address human rights, labor rights and environmental issues in the supply chain. This policy serves toconvey MC’s fundamental perspective to all its suppliers.
(1) Forced Labor

Suppliers shall employ all employees of their own free will with no employee being subject to forced or bonded labor.
(2) Child Labor

Suppliers shall not employ people under the minimum legal working age of the country in question.
(3) Safe and Healthy Working Environments

Suppliers shall work to provide employees with safe and healthy working environments.
(4) Freedom of Association and Collective Bargaining

Suppliers shall respect the right of employees to associate freely and engage in collective bargaining as methods of negotiating
working environments, wages and other matters with employers.
(5) Discrimination

Suppliers shall strive to ensure equal opportunities in the workplace and shall not engage in discrimination with regard to
recruitment and employment practices.
(6) Abuse and Harassment

Suppliers shall respect employees’ human rights and must not tolerate abuse or any form of harassment.
(7) Working Hours

Suppliers shall ensure that employees’ working hours and use of leave entitlements are appropriately monitored and that
excessive overtime labor is prohibited, so as not to infringe upon any statutory regulations.
(8) Suitable Remuneration

Suppliers shall pay employees at least the statutory minimum wage, endeavor to pay at least the living wage, and shall not
unreasonably reduce wages.
(9) Anti-Corruption

Suppliers shall engage in fair business practices, avoid corruption including bribery and extortion, and comply with applicable laws
and regulations.
(10) Environment

Suppliers shall endeavor to protect the environment and consider the impacts of their business activities on local communities andecosystems, while paying special attention to energy use efficiency, climate change issues such as greenhouse gas emissions,sustainable use of resources, waste reduction, and air, soil and river pollution.
(11) Information Disclosure

Suppliers shall disclose information with respect to the aforementioned matters in a timely and appropriate manner.
2. Monitoring
MC conducts annual surveys of suppliers to monitor the status of their compliance with the Basic Policy and to strengthencommunication with suppliers. Furthermore, MC visits suppliers to check the status of their activities when it determines that site
visits are necessary based on region and business activities. Audit reviews are carried out based on the audit lists prepared withthe advice of an outside advisor, and guidance is given to the suppliers.

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3. Response to Compliance Violations
If a violation of the Basic Policy is confirmed, MC will demand that the relevant supplier implement corrective measures and will
provide guidance and assistance to the supplier as necessary.
If MC determines that the supplier is unlikely to implement corrective measures even after providing continuous guidance andassistance, MC will re-evaluate its business relationship with the relevant supplier.

Review of our Purchasing Policy
By sharing its Policy for Sustainable Supply Chain Management in its contracts with suppliers*, MC ensures its suppliers
abide by the Basic Policy. MC may ask a supplier to correct their business behavior if there is a violation of the Basic Policy,
and will re-evaluate its business relationship with the relevant supplier if no correction has been made. MC will continue towork with its suppliers to ensure that environmental and social considerations are taken into account.

Individual Guidelines
MC has formulated individual guidelines for certain products.

Soybean Procurement Guidelines
 Soybean Procurement Guidelines (Updated January 25, 2024)

Timber and Paper Products Procurement Guidelines
 Timber and Paper Products Procurement Guidelines (Updated February 10, 2022)

Palm Oil Procurement Guidelines
 Palm Oil Procurement Guidelines (Updated January 13, 2021)

Tuna Procurement Guidelines
 Tuna Procurement Guidelines (Updated August 30, 2022)

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Animal Welfare Policy for Suppliers
The MC Group prioritizes maintaining comfortable living environments for livestock as well as aquaculture species and believes that theresulting reduction of stress and illness contributes to improved productivity as well as the production of safe livestock and marine
products. We see animal welfare as vital to the establishment of sustainable supply chains and work closely with our suppliers to
improve animal welfare, including the monitoring of related initiatives through our Sustainable Supply Chain Survey.
Our consolidated subsidiary Cermaq has established an animal welfare policy as well as a number of indicators to ascertain whether

animal welfare is being upheld. In addition, we believe that the iFarm*1 development project will contribute to the improvement of animal
welfare by enabling each individual animal to receive the minimum necessary treatment. For more information, please visit the Fish
health and welfare page on the Cermaq Global website. Cermaq is also working on a project to develop “Certus”*2, a semi-closed ocean
environment containment system which will also contribute to the improvement of animal welfare. (For more information, please visit
Cermaq's Digitalization-Technology page).

*1 This project uses image sensing technology to monitor individual salmon in ocean pens in real time. This is expected to reduce environmental burdens,
including fish stress levels and the amount of chemicals and antibiotics used.
*2 This system is expected to minimize the risk of fish escaping while also reducing environmental burdens, such as reducing the quantities of drugs andantibiotics used.

Bluefin Tuna Sustainable Sourcing Policy
As a corporation playing a major role in the marine products business, MC recognizes the crucial part that we play in conserving
marine resources and ensuring a sustainable supply for future generations. To find out more about MC's stance on Bluefin Tunaand the specific measures we are implementing, please refer to our most recent policy below.
 Mitsubishi Corporation's Bluefin Tuna Sustainable Sourcing Policy（Updated July 2021）

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Structure
MC’s supply chain management measures are overseen by the Corporate Functional Officer (CSEO). The Sustainability Department
plans and drafts related policies and measures. Following deliberations by the Sustainability & CSR Committee, which convenes
approximately twice a year, items are put forward or reported to the Executive Committee and the Board of Directors.
Officer in Charge
Deliberative Body
(A subcommittee under the Executive Committee, amanagement decisionmaking body)

Department in Charge

Reference:

Kenji Kobayashi (Senior Vice President, Corporate Functional Officer, CSEO)
Sustainability & CSR Committee
Important matters related to supply chain management deliberated by the Sustainability & CSR Committee areformally approved by the Executive Committee and put forward or reported to the Board of Directors based onprescribed standards.
Sustainability Dept.

Diagram of the Sustainability Promotion Framework

Risk Management
Human rights and environmental due diligence of MC supply chain (Sustainable Supply Chain Survey)
With sustainable supply chain management in mind, MC has identified products with high environmental and social risk (“products to bemonitored”) in FY2016 and FY2020, with advice from consultants and external advisors. MC conducts annual human rights andenvironmental due diligence on the supply chains (through the Sustainable Supply Chain Survey) of suppliers of these “products to bemonitored” to assess their level of compliance with the Mitsubishi Corporation Policy for Sustainable Supply Chain Management.
In identifying the commodities to be surveyed, MC referred to various international supply chain management declarations andinternational norms such as the UN Guiding Principles on Business and Human Rights, and prioritized them in terms of the following
regarding potential impact to stakeholders: 1. Severity (scale of risk, their scope, and how remediable they might be) and 2. Likelihood(situation in each country, industry, and region of procurement).
MC asks suppliers of these "products to be monitored" certain questions that take into account the specific issues and risks of the
products handled by each supplier, with a focus on aspects including “existence of policies,” “compliance with laws and regulations,”“prevention of forced labor, child labor, and discrimination towards workers,” “respect of the rights of employees to organize,”“environmental protection,” and “information disclosure.”
In addition, we receive responses from suppliers subject to the human rights and environmental due diligence to ensure its
effectiveness, and look to correct or improve any issues identified. MC employs a system to identify suppliers that may have issues orthat require specific action based on the results of responses to the survey. Following this, MC considers and decides whether additional
surveys or on-site inspections are necessary. Furthermore, in order to improve the convenience and accessibility of the survey forsuppliers, MC has built a web-based system and conducts the surveys through this online system.
In April 2023, MC conducted its annual survey of 913 suppliers for FY2022 in around 50 countries and regions including China, Vietnam,
and Thailand, where we have taken steps to correct or improve any issues identified. MC also conducted management and employee
interviews with certain suppliers to gain an understanding of actual conditions and exchanged information to help improve thosesituations. MC has re-evaluated its business relations with relevant suppliers based on the results of these surveys and interviews.

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SocialGovernance① Determine “Products to be monitored”
MC choose “products to be monitored” from all of its business products based on various international supply chain management
declarations and international norms such as the UN Guiding Principles on Business and Human Rights and prioritizes them in terms of
the following regarding potential impact to stakeholders: 1. Severity (scale of risk, their scope, and how remediable they might be) and 2.
Likelihood (situation in each country, industry, and region of procurement).In addition, when significant environmental and social risksmaterialize through our business activities in the future, MC will consider investigating the target products without undergoing the above
process.

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SocialGovernance② Determine target suppliers of prioritized products③ Conduct questionnaire surveys for target suppliers
The number of suppliers and the details of the survey are as follows. MC also conducted visits to certain suppliers to confirm the statusof their activities. As a result of the survey, suppliers to be visited are selected from those where certain questions on the four issues(based on the ILO Core Labor Standards, etc.), are determined to have been answered insufficiently, or where best practices have been
implemented.
Flowchart of the survey

Number of target suppliers
Target Products

FY2020*1

FY2021*1

FY2022*1

Paper

―

―

11

LNG

2

3

3

Plastic (PP, PE etc.)

7

16

10

Wood

50

52

50

Copper

0

25

26

Zinc

0

8

5

Coal

0

9

13

IronOre

0

23

7

Tire

1

1

1

Chicken

17

75

86

Soy

―

―

7

Sugar

12

8

6

Shrimp (Tier1&2)*2

84

78

68

Tuna (Tier1&2)*2

85

92

108

Cacao (Tier1&2)*2

7

6

6

Coffee (Tier1&2)*2

35

35

33

Apparel (Tier1&2)*2

573

540

443

6

37

30

Tea (Tier1&2)*2
Total

879

1008

913

(Number of Responses)

(804)

(887)

(850)

*1 The survey is carried out in the following fiscal year based on the results of the current fiscal year.
*2 Tier 1 is a primary supplier that supplies directly to MC (or its Group companies), while Tier 2 is a secondary supplier that supplies directly to the primary
supplier.

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Results of the Sustainable Supply Chain Survey
The main of the countries of the target suppliers whose products and businesses are subject to the Sustainable Supply Chain
Survey are as follows:

Survey Results
SectionRelatedStakeholders

Sample Question

Number of improvement requests*
FY2020

FY2021

FY2022(1) Forced labor

Is there a mechanism for verifying that forced or bonded
labor is not practiced?

In-house employee,
employee of supplier

1%

0%

0%

(2) Child labor

Does the company either have a policy or set of guidelines
In-house employee,
specifying the minimum age of employees, or commit toemployee of supplierinternational or industry standards related to this issue?

3%

0%

0%

(3) Safe and healthy working
environment

Do employees work in a safe and healthy work
environment where precautions have been taken tominimize the risk of accidents and injuries?

0%

0%

0%

(4) Freedom of association

Does the company respect the right of employees to freelyorganize or join an organization to negotiate their labor
In-house employee
conditions with management?

0%

0%

0%

(5) Discrimination

Does the company respect equality of all employees
without differentiating among them based on criteria
unrelated to their job requirements?

In-house employee,
employee of supplier

0%

0%

0%

(6) Abuse and harassment

Does the company take efforts in ensuring a working
environment where human rights are respected andviolations of human rights including various forms ofharassment and abuse do not occur?

In-house employee,
employee of supplier

0%

0%

0%

(7) Working hours

Does the company force employees to work overtime orare any employees who do not consent to work overtime
subject to unfavorable treatment such as penalties ordemotion?

In-house employee

0%

0%

0%

(8) Suitable remuneration

Does the company unreasonably or unlawfully reduce
employees' wages or allowances?

In-house employee

9%

2%

1%

(9) Anti-corruption

Does the company comply with the applicable laws andregulations by striving to conduct its business fairly while
avoiding any form of corruption?

In-house employee

0%

0%

0%

(10) Environment

Does the company have an assigned person(s)responsible for managing compliance with environmental
legal requirements?

In-house employee

0%

0%

0%

(11) Sustainable sourcing

Does the company verify that its sub-suppliers do not
engage in violations of human rights or environmental
destruction?

In-house employee

0%

0%

0%

(12) Information disclosure

Does the company disclose information relevant to theitems listed in "Mitsubishi Corporation Policy for
Sustainable Supply Chain Management", to its
stakeholders in a timely and appropriate manner?

In-house employee,
employee of supplier

0%

0%

0%

Reference:

In-house employee,
employee of supplier

Mitsubishi Corporation Policy for Sustainable Supply Chain Management: 3. Response to Compliance Violations* Calculation method: This is the percentage of responses to the Sustainable Supply Chain Survey, excluding non-responses, which warranted a request
for improvement.

259

Environment

SocialGovernanceCommunication/Engagement with Suppliers
New Suppliers
For new suppliers, the Mitsubishi Corporation Policy for Sustainable Supply Chain Management is published and shared on our website.
MC also ensures in our contracts with suppliers* that they comply with the Basic Policy. In cases such as when a supplier violates the
Basic Policy, MC can request the supplier to take corrective measures, and if such measures are not taken, the contract can beterminated. In addition, MC conducts the Sustainable Supply Chain Survey in order to better understand the status of compliance with
the Basic Policy.
* The terms and conditions of purchasing contracts, consignment sales agreements, export consignment sales agreements, long-term purchasing
contracts, etc.

Existing Suppliers
Together with periodically receiving confirmation of support for the Mitsubishi Corporation Policy for Sustainable Supply Chain
Management, MC conducts regular surveys of its suppliers to continuously monitor the status of their compliance with this policy.
Furthermore, MC visits suppliers to confirm the status of their activities when necessary. MC continuously monitors existing suppliers to
identify those that pose a high degree of environmental and social risk in line with this policy, for the purpose of verifying theappropriateness of current initiatives. Going forward, MC will incorporate the results of this reevaluation process into its supply chain
management, with the goal of ensuring more effective supplier surveys.

In FY2022, MC visited a domestic meat processing company, a poultry supplier of MC’s subsidiary Foodlink Corporation. This
year, an inspector from DNV Business Assurance Japan Co., Ltd., a third-party inspecting company, accompanied MC andevaluated the supplier’s sustainability management system by interviewing the supplier’s management and employees.
The evaluation that took place during the visit was conducted using a checklist based on the Mitsubishi Corporation Policy for
Sustainable Supply Chain Management, mainly confirming the appropriateness of the supplier’s sustainability management
system and its on-site implementation. The checklist items related to personnel and labor affairs were generally properly
managed. However, since some policies and procedures had not been documented, MC requested that these policies andprocedures be documented. Regarding safety and health and environment issues, only a small part of the policies andprocedures were documented and management seemed to be dependent on individual employees. Although a certain amountof education and training is provided to the employees and no accidents had occurred, MC recommended that policies andprocedures be established and thoroughly communicated in the future.
Please refer to the attached report for more details.

Report of DNV Business Assurance Japan Co., Ltd.
Working in partnership with suppliers, MC will continue to ensure sustainable operations throughout its supply chains incooperation with MC Group companies.
See past site visit reports here260

Environment

SocialGovernanceIn the event that MC confirms, through additional surveys or on-site inspections, points that should be corrected or improved in relation
to the Basic Policy, in addition to requesting the relevant supplier to take corrective measures, MC also provides guidance andassistance as necessary. If MC determines that a resolution is unlikely, even after providing continuous guidance and assistance, MCwill review its business relationship with the relevant supplier.
In September 2023, MC held a “Business and Human Rights” seminar for global suppliers who are subject to the Sustainable Supply
Chain Survey in order to strengthen communication and engagement with suppliers. Details are described below.

“Business and Human Rights” Seminar for Suppliers and Group Companies
Attended by a total of 159 participants from approximately 80 global suppliers, this webinar was held twice (once in English andonce in Japanese). An external speaker explained about the relationship between business and human rights, the importance ofcompanies engaging in human rights due diligence, and the legislative trends in various countries around the world. MC
explained its basic approach to respecting human rights and the efforts it is implementing to respect them. In addition, a panel
discussion based on questions asked in advance by suppliers and Group companies was held, which helped suppliers andGroup companies deepen their understanding of the importance of promoting efforts to respect human rights and thesignificance of the Sustainable Supply Chain Survey.

④ Review of Initiatives for the Current Fiscal Year and Policy Planning for the Next Fiscal Year
After reviewing the results of human rights and environmental due diligence for the current fiscal year, MC discusses them with its
internal and external stakeholders such as the Sustainability Advisory Committee, Group Chief Sustainability Officers, and Group
Sustainability Managers in each Business Group. Based on these discussions, the Sustainability & CSR Committee will deliberate policy
for the next fiscal year and put forward or report items to the Executive Committee and the Board of Directors.
In addition, MC considers reviewing its supply chain management policies as needed based on the status of dialogue with its
stakeholders. Communication with suppliers about human rights and environmental due diligence in our supply chain has been an
opportunity for suppliers to deepen their understanding of our sustainability approach, and MC will continue to actively and continuously
work to improve its practices.
Supply Management Policy that Caused MC to Review

Human rights and environmental due diligence in the supply chain

Details
By sharing Mitsubishi Corporation Policy for Sustainable Supply Chain
Management in contracts with suppliers, MC ensures its suppliers abide by the
Basic Policy

261

Environment

SocialGovernance

Response to Conflict Mineral Issues
The U.S. Financial Regulatory Reform Act (Dodd-Frank Act), enacted in July 2010, requires U.S. listed companies to disclose, based onreasonable investigations, whether conflict minerals* used in their products are produced in the Democratic Republic of the Congo
and/or neighboring countries where conflict-prone and reported inhumane acts are reported.
Although MC is not a U.S. listed company and is not directly subject to reporting and disclosure under the Act, MC has establishedpolicies and guidelines on the procurement of conflict minerals for our suppliers of tin, tantalum, tungsten, and gold to fulfill our social
responsibilities in our corporate activities, and that the products supplied are not a source of funding for armed groups in the Democratic
Republic of the Congo and/or its neighboring countries. MC also aims to take every measure not to be complicit in human rights
violations and conflicts by armed groups.
Number of target suppliers
Target Products

FY2020tin, tantalum, tungsten, gold
(Response rate)

Reference:

FY2021

FY2022

14

20

18

100%

100%

100%

Mitsubishi Corporation Policy for Sustainable Supply Chain Management: 3. Response to Compliance Violations* "Conflict Minerals" as defined by the law refer to tin, tantalum, tungsten, and gold.

Screening for Investment and Loan Proposals
In order to ensure the promotion of sustainability through our business, the General Manager of the Sustainability Department
participates as a member of the Investment Committee, thereby ensuring a screening system that reflects potential environmental andsocial impacts in decision-making. In the screening of investment and loan proposals, MC screens based on not only economic aspects,
but on ESG factors as well in our comprehensive deliberations and examinations. From the perspective of supply chain management,
MC conducts due diligence and other screening on the status of human rights considerations not only subsidiaries and affiliates but also
their business partners (supply chain), and utilizes the results of this for our deliberation and consideration.
References:

Incorporating Sustainability into Individual Projects
Collecting Sustainability Information on a Consolidated Basis

262

Environment

SocialGovernanceInitiatives
Employee Training
Many employees at MC have the opportunity to undertake trading activities such as purchasing and sales, or to support such activities atsome time in their careers. For this reason, MC strives to deepen the knowledge of all employees as buyers by explaining MC’s
corporate philosophy, including respect for human rights in the supply chain. We also integrate the relevant supply chain policy into
buyer training such as programs geared toward specific levels of management including those for new employees as well as training on
trading practice.
Reference:

Slavery and Human Trafficking Statement

263

Environment

SocialGovernance

External Collaboration
Participation in Supply Chain Initiatives
MC is working to ensure sustainable supply chains by participating in various supply chain initiatives.

Supplier Ethical Data Exchange (Sedex)
Sedex is a global platform that provides data-driven analysis, tools, and services designed to achieve continual improvements to acompany’s ESG results. The MC subsidiary, Princes Ltd., began using the Sedex platform in 2011 and has also joined the Sedex
Community, through which members exchange information. Princes uses Sedex to manage the compliance status of its manufacturing
sites and primary suppliers. Other MC subsidiaries that have adopted Sedex include MC Agri Alliance Ltd., Asia Modified Starch Co.,
Ltd., and Nihon Shokuhin Kako Co., Ltd. These companies manages their supply chain using the Sedex platform in their business suchas buying or selling raw materials for food, confectionary, beverages and other products. Thorough this Sedex platform, they are working
with their business partners on issues such as respect for human rights and quality assurance across supply chains.

EcoVadis
EcoVadis is a global cloud-based software as a service (SaaS) platform that offers comprehensive corporate social responsibility (CSR)
evaluation tools. This platform has been adopted by multiple MC subsidiaries, including MC Agri Alliance Ltd. in 2021, and Mitsubishi
Shoji Chemical Corporation in 2022. Both companies are using EcoVadis as a means of cooperating with their business partners on
various supply chain issues, including respect for human rights and quality assurance.

Round Table on Responsible Soy Association (RTRS)The RTRS is a global initiative that provides certification services for responsible soybean production and distribution. As an RTRScertified producer, MC subsidiary Agrex do Brasil LTDA sells soybeans grown on approximately 19,000 ha of farmland under conditions
that meet the RTRS certification standards. Agrex do Brasil was the first company in Brazil to obtain RTRS certification for farmland in
Brazil’s State of Maranhão. Obtaining RTRS certification is just one of many initiatives being pursued by Agrex do Brasil, which is also
striving to make improvements in areas such as soil management and protection, water management, employee motivation, and thestrengthening of relationships with local communities.

Aquaculture Stewardship Council (ASC)The ASC is an international non-profit organization that operates and manages certification and labeling system for responsible
aquaculture products. In 2015, MC subsidiary Cermaq Group AS became the first salmon farming business in Canada to receive ASC
certification for multiple sites.

Forest Stewardship Council® (FSC®)
The FSC is dedicated to the philosophy of forest management from the viewpoint of environmental protection, benefits to society, andeconomic sustainability. MC has obtained FSC chain of custody (CoC) certification for its timber processing and distribution operations.
We ensure that any timber products handled by the MC Group have been produced with consideration for human rights, maintaining
biodiversity and conserving natural capital.

264

Environment

SocialGovernance

Cermaq Initiatives
Cermaq, an MC consolidated subsidiary, is committed to ensuring high standards related to the social and environmental impact of its
business. MC has established a Supplier Code of Conduct, taking into account the principles of MC’s Policy for Sustainable Supply
Chain Management, to ensure responsible practices throughout the supply chain, and which describes the minimum standards that all
Cermaq’s suppliers are expected to uphold. Cermaq expects its suppliers to request similar standards for their suppliers andsubcontractors. In addition, Cermaq expects all its suppliers to comply with requirements in the areas of national legislation, humanrights, labor rights, health and safety, anti-corruption, the environment, food quality and safety, management systems, andimplementation. Regarding the environment, adverse impacts from the operations of the supplier on the community, the environment,
and natural resources are expected to be minimized while safeguarding the health and safety of the public. Adverse impacts may include
pollution, use of limited resources, deforestation, and the release of chemicals and other materials into the ground, sea or air and whichpose a hazard if released into the environment. To minimize such risks, including reducing chemical use in fish farming, suppliers are
expected to identify, monitor and control the environmental impact of their operations. Cermaq reports on compliance of its supply chain
with fundamental human rights and decent working conditions.

Reference:

Participation in Cermaq’s External Initiatives
Cermaq web site Policies

Mitsubishi Corporation Packaging Ltd. Initiatives
Mitsubishi Corporation Packaging Ltd. (MP), an MC consolidated subsidiary, has established its own "Policy for Sustainable Supply
Chain Management" which outlines MP’s actions to address human rights, labor rights, and environmental issues in the supply chain.
This policy serves to convey MP’s fundamental perspective to all of its suppliers and subcontractors and the company requests that they
understand, accept, and implement it.
MP also handles Forest Stewardship Council®‐ (FSC®)-certified products (cardboard, packaging paper, etc.) and confirms whether or
not its paper manufacturing and processing suppliers have obtained this certification, which requires third-party audits, in order toascertain the level of social and environmental risk.
MP has also obtained FSC Chain of Custody (CoC) certification and is adhering to its requirements to appropriately procure, store, andsell FSC-certified products.
License Code: FSC®‐C007960

Lawson, Inc.
Lawson, Inc., an MC consolidated subsidiary, provides freshly brewed coffee in Lawson convenience stores under the MACHI café
brand. MACHI café’s coffee is made exclusively＊1 from beans from Rainforest Alliance＊2 Certified™ farms. Lawson also conducts
activities to popularize and raise awareness such as participating in the Rainforest Alliance Consortium, which was set up through acollaboration between the Rainforest Alliance and companies that offer Rainforest Alliance Certified™ products. Lawson, as a memberof this Consortium, runs promotional retweet campaigns.
Reference:Lawson’s Corporate Website
Lawson’s SDGs Handbook (Japanese)＊1 Excludes Single Origin Series and Decaffeinated Series.
＊2 Established in 1987, Rainforest Alliance is an international non-profit organization devoted to environmental protection. The Rainforest Alliance Certification
is granted only to farms that satisfy strict criteria, including criteria for environmental conservation and improving the livelihoods of farm workers.

265

Environment

SocialGovernancePrinces
Princes, an MC consolidated subsidiary, continues to work collaboratively with global suppliers, customers and leading ethical tradingorganisations to improve the lives of workers in their supply chains. Princes continues to hold Board positions on the Ethical Trading
Initiative and Food Network for Ethical Trade. Princes is also a member of the SEDEX community , a supply chain management andsharing platform. Moreover, Princes is on the Corporate Ethics Register of Chartered Institute of Procurement & Supply (CIPS), which isa global body that for the procurement and supply profession, and all employees involved in purchasing are CIPS certified.
As part of its continued strategy of transparency and building customer and consumer trust, Princes continues to publish its supply chain
map on its website which includes details of all raw materials, packaging and finished goods suppliers. Princes Industrie Alimentari,
Princes' wholly-owned manufacturing subsidiary in Italy, continues delivering against its long-term agreement with Italy's largest
agricultural cooperative, Coldiretti, supported by Oxfam Italia (a global organization dedicated to eradicating poverty and injustice), to
help tomato growers achieve sustainable operations and reduce potential human rights risks through transparent pricing.
Reference:Princes' Corporate Website

Organizations of which Princes is a member, etc.

Princes Supply Chain Map

266

Environment

SocialGovernance

Olam
Olam Group Limited (Olam), an MC affiliate company, is upholding its corporate philosophy of “Re-imagining Global Agriculture & Food
Systems” to define its business growth as being achievable only through providing sufficient value to the environment and society. Olamstrives for three outcomes: Prosperous Farmers and Food Systems, Thriving Communities, and Re-Generation of The Living World. Olamhas selected 10 material areas for achieving these goals and is approaching them by building a framework to make an impact around 14of the 17 Sustainable Development Goals (SDGs). For example, Olam has developed the Olam Farmer Information System (OFIS) in
partnership with farmers. OFIS collects and analyzes data from small-holder farmers, such as amounts of fertilizers and agrochemicals
applied, unit crop yields and agricultural training records, aiming to help farmers improve their yields. In addition, in 2018, Olam launched
AtSource, a digital platform that directly connects customers with suppliers to offer comprehensive sustainable solutions. This platform has
grown to include 20 products and 300,000 small-holder farmers in 30 countries worldwide. With AtSource, more than 150 customers areable to access not only supplier profiles, but also a total of approximately 350 indicators, including environmental data such as amounts of
CO2 emissions linked with purchased raw materials as well as social indicators such as farming yields. It also helps customers organize
sustainability projects focused on specific areas. With AtSource, Olam is providing value to in three ways: 1) information on society, theenvironment and traceability; 2) transparency through real-time monitoring; and 3) positive impacts on farmer livelihoods and the global
environment. Moreover, Olam’s sustainability initiatives using the platform has led to the company receiving of the Reuters Responsible
Business Award continuously from 2020 to 2023. In 2023, the Carbon Scenario Planner, a tool which shows above-mentioned efforts tovisualize and reduce the abovementioned CO2 emissions, was also recognized with an Innovation Award by Food Ingredients Europe.
Leveraging nearly 35 years of product expertise, including the above-mentioned tools, Olam has, alongside quantitative targets, adopted
medium-id- to long-term environmental and social objectives in accordance with each of the SDGs, and continues to announces any
progress made. To date, the company has and have also announced Cocoa Compass in 2019, Coffee LENS in 2020, Cashew Trail and,
Hazelnut Trail, in 2021, Almond Trail in 2022, and Dairy Tracks in 2023.
Olam has received a number of awards in recognition of these efforts, including from Fortune Magazine’s Change the World 2016
corporate rankings, for companies that are transforming society through their businesses, and the Oxfam Agri-Businesses Scorecard(2022)” by Oxfam being described as an organization that supports the eradication of poverty in a sustainable manner— - .ranking in firstplace in the areas of Women, Land, and Small-scaleproducers.and receive first place among agribusinesses in Oxfam's "Shining a
Spotlight" report (2020), being described as an organization that supports the eradication of poverty in a sustainable manner. In addition,
the company's sustainability initiatives have received high global acclaim, as shown by the fact that, Olam’s Co-Founder and Group CEO,
Sunny Verghese recently served as Chairman of the World Business Council for Sustainable Development (WBCSD), from 2018–2021,
and has been Co-Chair of Champions 12.3 since 2021, a coalition of executives from the UN, governments, businesses, NGOs, etc.,
established to achieve SGD target 12.3, which calls for halving global food waste per capita by 2030.
In regard to individual products, Olam's Cocoa Compass received the Sustainable Supply Chain Gold Award at the "Global Good Awards
2022," which recognizes organizations that promote social and environmental change, the Sustainability Innovation Award at "FoodIngredients Europe 2022," which recognizes innovative food ingredient companies worldwide, and the "Nature Based Project of the Year"at the Business Green Leader Awards in the UK in 2021. In addition, AtSource was recognized by the Global Coffee Platform (one of theindustry’s largest organizations, which sets the framework for sustainability in the coffee supply chain, and includes many companies fromthe countries of production and consumption) as one of the organization’s official standards.Olam has also received high praise fromexternal organizations. For details of each initiative, please refer to the following company website.

Reference:

Please visit the following links for details on Olam’s sustainability initiatives:

Olam Sustainability Framework
Olam Farmer Information System
Olam AtSource
Olam Sustainability in Cocoa (Cocoa Compass)
Olam Sustainability in Coffee (Coffee LENS)
Olam Sustainability in Cashew (Cashew Trail)
Olam Sustainability in Hazelnuts (Hazelnut Trail)
Olam Sustainability in Dairy (Milk Matters)

267

Environment

SocialGovernance

Related data
Data on RSPO-Certified Palm Oil(Units: tons)
FY2020 results

FY2021 results

FY2022 results

Segregated method

2,040

963

951

Mass Balance method

22,24033,95416,087

Total volume of palm oil handled

205,350

227,261

46,081

11.8

15.4

37.0

Ratio (%)

Scope: Non-consolidated basis and a portion of business investments
Reference:

RSPO ACOP Report

Data on ASC-Certified Products(Units: Thousand tons)
FY2020 results
Production capacity of ASC-certified

FY2021 results

FY2022 results

sites＊

163

163

128

Actual sales volume of farmed salmon

166

199

189

ASC: Aquaculture Stewardship Council
Scope: MC consolidated subsidiary Cermaq＊ Maximum farmed salmon volume as of December 31 for each fiscal year

Data on FSC® CoC-Certified Products
FY2021 results
Wood pellets with FSC CoC certification, etc.

FY2022 results
100%

100%

FSC®: Forest: Forest Stewardship Council®
FSC CoC: Certification for processing/distribution process
License Code: FSC®-C156725

Procurement Data for Organic Cotton
MC handles apparel made of organic cotton through its subsidiary, Mitsubishi Corporation Fashion Co., Ltd. (Mitsubishi Corporation
Fashion). 100% of the organic cotton handled is certified by the Global Organic Textile Standard (GOTS) and, therefore, is 100%
traceable. To preserve and improve the sustainability of the global environment, Mitsubishi Corporation Fashion aims to prioritize the useof raw materials with a low environmental impact. The company will continue to ensure the stable procurement and supply of GOTScertified organic cotton.
FY2022
Traceability

100%

GOTS certification

100%

GOTS: World standard for organic textiles

268

Environment

SocialGovernance

Governance
GovernanceCorporate Governance

Board of Directors and Shares, etc.

270

Audit & Supervisory Board and Audit

290

Directors’ and Audit & Supervisory Board
Members’ Remuneration, etc.

297

Risk Management319

Corporate GovernanceCorporate GovernanceCompliance307

Environment

SocialGovernance

Governance

Board of Directors and Shares, etc.
MC’s Basic Policy on Corporate Governance

Board of Directors

Board of Directors’ Advisory Bodies

Independent Directors and Independent Audit & Supervisory Board Members
Initiatives to Enhance the Effectiveness of the Board of Directors
Initiatives on Japan’s Corporate Governance CodeMC’s Basic Policy on Corporate GovernanceMC strives to continuously raise corporate value through corporate activities rooted in the principles of fairness and integrity with theThree Corporate Principles for a corporate philosophy. MC believes that by helping to enrich society, both materially and spiritually, it will
also meet the expectations of its shareholders, customers, and all other stakeholders.
In order to achieve these goals, MC recognizes strengthening corporate governance on an ongoing basis as an important subject
concerning management since it is the foundation for ensuring sound, transparent, and efficient management. Therefore, MC is working
to put in place a corporate governance system that is even more effective based on the Audit & Supervisory Board System. This
includes strengthening management supervision through such measures as (i) appointing Independent Members of the Board who
satisfy MC’s Selection Criteria for Outside Directors and Outside Audit & Supervisory Board Members, and (ii) establishing advisory
bodies to the Board of Directors where the majority are Independent Members of the Board and other experts from outside MC. At thesame time, this also includes implementation of MC’s prompt and efficient decision-making and business execution through enhancing
the monitoring function of the Board of Directors.
Corporate Governance Framework (As of June 23, 2023)

270

Environment

SocialGovernance

Board of Directors
The Board of Directors deliberates on important management issues, and supervises business execution through reports on major itemsof the current Midterm Corporate Strategy, the business strategies of Business Groups, and so on. In addition, matters requiring
resolution in accordance with laws and regulations, and investment and finance proposals exceeding the quantitative standards set by
MC are deliberated and resolved with an emphasis on not only the economic aspects, but also on ESG perspectives. MC has also
constructed appropriate internal control systems, and checks their operational status every year in order to work toward their continuous
improvement and strengthening.
Business execution, other than those matters for resolution by the Board of Directors, is entrusted to the Executive Officers byappointing the President as the Chief Executive Officer responsible for business execution, and the Executive Committee (meets twice
monthly) as a management decision-making body.

Composition and Size of the Board of Directors and the Policy and Process for
Appointing Nominated Directors
Composition and Size

The composition and size of the Board of Directors is appropriately determined to help it maintain transparent, fair, timely anddecisive decision-making, and carry out effective oversight, with one-third or more being made up of Independent Directors.

Appointment Policy

To ensure decision-making and management oversight are appropriate for MC, which is involved in diverse businesses andindustries in a wide range of fields, and from the perspective of ensuring diverse standpoints, several Directors are appointed fromboth within and outside MC with the depth of experience and high levels of knowledge and expertise needed for fulfilling their duties.

In-house Directors

In addition to Chairman of the Board and the President and Chief Executive Officer, MC's in-house Directors are elected from
Executive Officers (Senior Executive Vice Presidents & Executive Vice Presidents) responsible for companywide management sothat they can fully leverage their abundant business experience to ensure appropriate decision making and robust management
supervision by the Board of Directors.

Independent
Directors

Independent Directors are appointed from those who possess a practical perspective of highly experienced company officers andthose who possess an objective and professional perspective with a deep insight on global dynamics and socio-economic trends.
These individuals thus contribute to appropriate decision making and robust management supervision by the Board of Directors as
they bring diverse perspectives into its deliberations.

Appointment Process

In line with the policies described above, the President and Chief Executive Officer proposes a list of nominated Directors, which isthen deliberated at the Governance, Nomination and Compensation Committee and resolved by the Board of Directors before being
presented at the Ordinary General Meeting of Shareholders.

271

Environment

SocialGovernance

Skills Matrix of Directors and Audit & Supervisory Board Members
Directors and Audit & Supervisory Board Members are selected in light of their experience, knowledge, expertise and overall character.
At the Board of Directors, these individuals deliberate based on diverse perspectives to ensure appropriate decision making and robust
management supervision. The areas of experience, knowledge and expertise judged to be important for MC’s Board of Directors and thereasons for their adoption are shown below. The matrix below shows the areas in which each Director and Audit & Supervisory Board
Member has experience, knowledge or expertise.
* The table below does not represent all the experience, knowledge or expertise of the Director or Audit & Supervisory Board Members.
* The applicability of each skill area in the table below is judged based mainly on the individuals’ experience in former positions, their current positions, andtheir formal qualifications.

272

Environment

Social273

GovernanceEnvironment

SocialGovernance

Composition of the Board of Directors
Board of Directors’ Structure (As of June 23, 2023)
Total

9

Number of non-executive and non-independent Directors (Chairman of the Board)1

Number of Executive Officers

4

Number of Independent Directors (number of women)

4 (2)Operation of the Board of Directors (As of June 23, 2023)
The Board of Directors includes Audit & Supervisory Board Members in addition to Directors. The Board operates as follows:

Position

Audit & Supervisory
Board Member

Director

Total

Chairman (Non-executive, non-managerial)

1

-

1

Number of Executive Officers/Number of Full-time Audit & Supervisory Board Members

4

2

6

4 (2)

3 (2)

7 (4)

Number of Independent Directors/Independent Audit & Supervisory Board Members(Number of women)

Board of Directors Structure (As of June 23, 2023)

In-house
Directors

Takehiko
KakiuchiAttendance at Board of Directors
Meetings (FY2022)
Job History, Positions and Responsibilities
Number ofmeetings
attended/held
Apr. 1979 Joined MC
Apr. 2010 Senior Vice President, Division COO, Foods (Commodity) Div.
Apr. 2011 Senior Vice President, General Manager, Living Essential Group CEO
Office,Division COO, Foods (Commodity) Div.
Apr. 2013 Executive Vice President, Group CEO, Living Essentials Group
Apr. 2016 President & CEO
Jun. 2016 Director, President & CEO
Apr. 2022 Chairman of the Board (present position)

Apr. 1985 Joined MC
Apr. 2016 Senior Vice President, Regional CEO, Middle East & Central Asia
Apr. 2018 Senior Vice President, Division COO, New Energy & Power
Generation Div.
Apr. 2019 Executive Vice President, Group CEO, Power Solution Group
KatsuyaApr. 2020 Executive Vice President, Group CEO, Power Solution Group,
Nakanishi*1 Power & Retail DX Task Force Leader
Apr. 2021 Executive Vice President, Group CEO, Power Solution Group,
Power & Retail DX Task Force Leader,
EX Task Force Leader
Apr. 2022 President & CEO
Jun. 2022 Director, President & CEO (present position)

Norikazu
Tanaka*1

Apr. 1982 Joined MC
Apr. 2014 Senior Vice President, Deputy Division COO, Mineral Resources
Investment Div.
Apr. 2015 Senior Vice President, Division COO, Mineral Resources Investment
Div.
Apr. 2018 Executive Vice President, Group CEO, Metals Group
Apr. 2019 Executive Vice President, Group CEO, Mineral Resources Group
Apr. 2022 Executive Vice President, Group CEO, Mineral Resources Group,
EX Task Force Leader
Jun. 2022 Director, Executive VicePresident, Group CEO, Mineral ResourcesGroup, EX Task ForceLeader
Apr. 2023 Director, Senior Executive Vice president, SEVP, Energy
Transformation (present position)

274

Regular:10/10
Extraordinary:4/4

Regular:7/7
Extraordinary:3/3*3

Regular:7/7
Extraordinary3/3*3

Attendance at Governance,
Nomination & Compensation
Committee Meetings(FY2022)

Attendance
rate

Number ofmeetings
attended/held

Attendance
rate

100%

5/5

100%

100%

5/5

100%

100%

-

-

Environment

SocialAttendance at Board of Directors
Meetings (FY2022)

In-house
Directors

Job History, Positions and Responsibilities
Number ofmeetings
attended/held

Apr. 1986 Joined MC
Apr. 2018 Senior Vice President, Division COO, Environmental Business Div.
Apr. 2019 Senior Vice President, General Manager, Power Solution Group CEO
OfficeApr. 2021 Executive Vice President, Corporate Functional Officer, Business
Development for Japan, General Manager, Kansai Branch
Jun. 2021 Director, Executive Vice President, Corporate Functional Officer,
Business Development for Japan, General Manager, Kansai Branch
YutakaApr. 2022 Director, Executive Vice President, Corporate Functional Officer, CDO,
Kashiwagi*1
CAO, Corporate
Communications, Corporate Sustainability & CSR
Jul. 2022 Director, Executive Vice President, Corporate Functional Officer, IT,
CAO, Corporate
Communications, Corporate Sustainability & CSR
Apr. 2023 Director, Executive Vice President,
Corporate Functional Officer, IT, CAO (Concurrently) Chief Compliance Officer,
Officer for Emergency Crisis Management Headquarters (present position)

Yuzo
Nouchi*1

Apr. 1987 Joined MC
Apr. 2019 Senior Vice President, General Manager, Corporate Accounting Dept.
Apr. 2022 Executive Vice President, Corporate Functional Officer, CFO
Jun. 2022 Director, Executive Vice President, Corporate Functional Officer, CFO(present position)

Tatsuoka*2

ShunichiMiyanaga*2

Sakie
Akiyama*2

Mari
Sagiya*2

Regular:10/10
Extraordinary:4/4

Regular:7/7
Extraordinary:3/3*3

Number ofmeetings
attended/held

100%

-

-

100%

-

-

Job History, Positions and Responsibilities
Number ofmeetings
attended/held

Attendance at Governance,
Nomination & Compensation
Committee Meetings(FY2022)

Attendance
rate

Attendance at Board of Directors
Meetings (FY2021)

Independent
Directors

Tsuneyoshi

GovernanceAttendance
rate

Attendance at Governance,
Nomination & Compensation
Committee Meetings(FY2021)

Attendance
rate

Number ofmeetings
attended/held

Attendance
rate

Apr. 1980 Joined the Ministry of International Trade and Industry (currently
Ministry of Economy, Trade and Industry (METI))
Held the position of:Counsellor, Cabinet Secretariat (Office of Assistant Chief Cabinet Secretary),
Deputy Vice-Minister of
Economy, Trade and Industry, and Vice Minister of METI
Jul. 2015 Retired from METI
Jan. 2018 Corporate Adviser, MC (resigned in Jun. 2018)
Jun. 2018 Director, MC (present position)

Regular:10/10
Extraordinary:3/4

93%

5/5

100%

Apr. 1972 Joined Mitsubishi Heavy Industries, Ltd. (“MHI”)
Apr. 2006 Senior Vice President, MHI
Apr. 2008 Executive Vice President, MHI
Jun. 2008 Director, Executive Vice President, MHI
Apr. 2011 Director, Senior Executive Vice President, MHI
Apr. 2013 Director, President, MHI
Apr. 2014 Director, President and CEO, MHI
Apr. 2019 Chairman of the Board, MHI (present position)
Jun. 2019 Director, MC (present position)

Regular:10/10
Extraordinary:4/4

100%

4/5

80%

Apr. 1987 Joined Arthur Andersen & Co. (currently Accenture PLC) (resigned in
Apr. 1991)
Apr. 1994 Founder and CEO, Saki Corporation
Oct. 2018 Founder, Saki Corporation (advisor) (present position)
Jun. 2020 Director, MC (present position)

Regular:10/10
Extraordinary:2/4

86%

5/5

100%

100%

4/4

100%

Apr. 1985 Joined IBM Japan, Ltd.
Jul. 2002 Director, IBM Japan, Ltd.
Jul. 2005 Senior Vice President, IBM Japan, Ltd. (resigned in July 2014)
Jul. 2014 Executive Vice President, SAP Japan Co., Ltd. (resigned in
December 2015)
Jun. 2016 Executive Vice President, Salesforce.com Co., Ltd. (currently
Salesforce Japan Co., Ltd.) (resigned in August 2019)
Jun. 2022 Director, MC (present position)

Regular:7/7
Extraordinary:3/3*3*1 Indicates a Representative Director.
*2 Indicates the fulfillment of the conditions for Outside Directors as provided for in Article 2, Item 15 of the Companies Act. Also indicates the fulfillment of
the conditions for Independent Directors / Auditors as specified by Tokyo Stock Exchange, Inc. as well as selection criteria for Independent Directors
specified by MC.
*3 Indicating attendance after appointment as a Director on June 24, 2022.

275

Environment

SocialGovernanceMatters Deliberated by the Board of Directors
The Board of Directors deliberates important management issues, and supervises business execution through reports on major items ofMidterm Corporate Strategy 2024, each Business Group's business strategy, etc. The results of the deliberations in FY2022 are as
follows.

<Agenda of the Board of Directors in the FY2023>
・Management Strategy and Sustainability-related items
Formulation of Midterm Corporate Strategy 2024/ Business Strategy Committee report/ Management Strategy Meeting report/ EX
progress report/ Business Execution reports (non-financial and financial risk management, HR strategy, regional strategy, andsustainability-related measures including discussion for Shareholder Proposals)・Governance-related and corporate-related items
Governance, Nomination and Compensation Committee report/ International Advisory Committee report/ Evaluation of the effectivenessof the Board of Directors/ Remuneration for Directors and Audit & Supervisory Board Members/ Organizational structure/ Rules andregulations/ Financial Statements/ Fund procurement policy/ Verification holding policy for listed shares/ Ordinary General Meeting of
Shareholders' related items/ Compliance report/ Internal control systems/ Company indemnification agreements/ Items related todirectors and officers (D&O) liability insurance, etc.
・Investment and finance proposals
Donations for the establishment of incubation program with Kyoto University/ HERE Technologies/ EX funds/ Sakhalin 2 project/
Onahama Petroleum Co., Ltd. Distribution Terminal/ Chiyoda Corporation/ N.V. Eneco offshore wind power generation business /Mitsubishi Auto Leasing Corporation, etc.

276

Environment

SocialGovernance

Board of Directors’ Advisory Bodies
Governance, Nomination and Compensation Committee
The majority of the Committee's members are Independent Directors. It deliberates on matters related to governance, nomination andcompensation.
Composition of the Committee (As of July 1, 2023)
Independent Members (4):Tsuneyoshi Tatsuoka (Independent Director), Shunichi Miyanaga (Independent Director),
Sakie Akiyama (Independent Director), Mari Sagiya (Independent Director)
In-house Members (3):Takehiko Kakiuchi* (Chairman of the Board), Katsuya Nakanishi (Director, President & CEO),
Mitsumasa Icho (Full-time Audit & Supervisory Board Member* Committee Chairman

Main Discussion Themes
The corporate governance system (roles, functions and selection methods of the Directors and Audit & Supervisory Board Members,
etc.)
Evaluation of the effectiveness of the Board of Directors
Successor requirements and basic policies concerning the appointment and dismissal of the President and Chief Executive Officer
Review of the remuneration package including the policy for setting remuneration, appropriateness of remuneration levels andcomposition, and linkage to sustainability factors

President’s Performance Evaluation Committee
The President’s Performance Evaluation Committee has been established as a subcommittee to the Governance, Nomination andCompensation Committee, comprising the same Chairman and Independent Directors as the parent committee to evaluate thePresident’s performance. The President is not a member of the Committee.

International Advisory Committee
The International Advisory Committee comprises experts with a wide range of backgrounds in industry, government, and academia.
Committee members offer advice from a global standpoint through exchange of opinions and discussions on the external environment,with a focus on international affairs. Since its establishment in 2001, the International Advisory Committee has fulfilled a crucial role inenabling in-depth and informed discussions among the Board of Directors.

International Advisory Committee
Total

10

Number of in-house committee members

3

Number of independent committee members (Independent Directors)

1

Number of independent committee members (overseas)

6277

Environment

SocialGovernanceOverseas Members (As of December 1, 2023)
MemberOriginTitle

Principal area of specialization and background

Mr. Jaime Augusto Zobel de Ayala

The
Philippines

Chairman, Ayala
Corporation

Mr. Zobel has vast experience in growing a global business launched from theASEAN region, and therefore has thorough knowledge of various geopolitical andindustry trends through the lens of Asia, with particular expertise in the ASEAN
region.

Professor Joseph S. Nye

United Statesof America

Harvard University
Distinguished Service
Professor

Professor Nye is a globally renowned scholar in the field of geopolitics. He has
held important positions in multiple administrations, including Chairman of the
National Intelligence Council of the United States. He is well known for proposing
and establishing "Soft Power" as the foundation of a stable world order.
Mr. FitzGerald, KBE has served as Chairman of several major global companies
such as Unilever, as well as the British Museum. He has outstanding knowledge
and expertise at the intersection of both industry and geopolitics in both emerging
and developed countries.

Mr. Niall FitzGerald, KBE

IrelandFormer Chairman,
Unilever

Mr. Natarajan Chandrasekaran

India

Chairman, Tata Sons

Mr. Chandra brings an immense knowledge of myriad industries around the worldin addition to his many years of management experience within the Tata Group,
India's largest conglomerate. Having led TCS as CEO for nearly a decade, Mr.
Chandra has served as Chairman since 2017.

Australia

Former CEO, British
Airways

As CEO, Sir Eddington successfully steered Cathay Pacific and British Airways
through reformative and challenging periods. He has a wealth of experience inthis and other infrastructure industries, having led major shift projects.

Singapore

Former Permanent
Secretary, Ministry ofForeign Affairs
Singapore

Ambassador Kausikan has a wealth of diplomatic experience, having held senior
positions such as Ambassador to the Russian Federation, Permanent
Representative to the United Nations, Ambassador-at-Large etc. for geopoliticallysensitive Singapore.

Sir Rod Eddington

Ambassador Bilahari Kausikan

Japanese Members (As of December 1, 2023)
Chairman of IAC

Katsuya Nakanishi

Norikazu Tanaka

Takehiko Kakiuchi

Director, President and CEO

Director, Senior Executive Vice President

Chairman of the Board

Tsuneyoshi Tatsuoka
Independent Director

Main Discussion Themes (FY2023)
The Year of Disruptive Choices – Global Elections in 2024
The sudden rise of AI – Risks and Rewards
Soft Power in the Global South – Leveraging Influence and Prosperity

278

Environment

SocialGovernanceIndependent Directors and Independent Audit & Supervisory Board
Members
Independent Directors and Independent Audit & Supervisory Board Members are as follows (as of July 1, 2022).

Independent Directors

279

Environment

SocialGovernanceSelection Criteria for Outside Directors and Outside Audit & Supervisory Board
Members
To make the function of Outside Directors and Outside Audit & Supervisory Board Members stronger and more transparent, MC has set
forth Selection Criteria for Outside Directors and Outside Audit & Supervisory Board Members as follows, after deliberation by theGovernance, Nomination and Compensation Committee, which is composed with Independent Directors in the majority. Each of the four
Outside Directors and three Outside Audit & Supervisory Board Members satisfy the requirements for independent Directors and Audit &Supervisory Board Members as stipulated by Japanese stock exchanges, such as the Tokyo Stock Exchange, Inc., and MC's Selection
Criteria for Outside Directors and Outside Audit & Supervisory Board Members.

[Selection Criteria for Outside Directors]
1. Outside Directors are elected from among those individuals who have an eye for practicality founded on a wealth of experience ascorporate Executive Officers, as well as an objective and specialist viewpoint based on extensive insight regarding global conditions
and social and economic trends. Through their diverse perspectives, Outside Directors help ensure levels of decision-making andmanagement oversight appropriate to the Board of Directors.
2. To enable Outside Directors to fulfill their appointed task, attention is given to maintain their independency*; individuals not ensuring
this independency in effect will not be selected to serve as Outside Directors.
3. MC’s operations span a broad range of business domains; hence there may be cases of conflict of interest stemming from business
relationships with firms home to a corporate Executive Officer appointed as Outside Directors. MC appropriately copes with thispotential issue through the procedural exclusion of the director in question from matters related to the conflict of interest, and bypreserving a variety of viewpoints through the selection of numerous Outside Directors.

280

Environment

SocialGovernance[Selection Criteria for Outside Audit & Supervisory Board Members]
1. Outside Audit & Supervisory Board Members are selected from among individuals who possess a wealth of knowledge andexperience across various fields that is helpful in performing audits. Neutral and objective auditing, in turn, will ensure soundmanagement.
2. To enable Outside Audit & Supervisory Board Members to fulfill their appointed task, attention is given to maintain their
independency*; individuals not ensuring this independency will not be selected to serve as Outside Audit & Supervisory Board
Members.
* Independency for the purpose of Selection Criteria for Outside Directors and Outside Audit & Supervisory Board Members
To make a judgment of independence, MC checks if the person concerned meets the conditions for Independent Directors andIndependent Audit & Supervisory Board Members as specified by the Tokyo Stock Exchange, Inc., and whether the person concerned
is currently any of the following items (1) to (7) and whether they have been at any time in the past three fiscal years.
(1) A major shareholder of MC (a person or entity directly or indirectly holding 10% or more of the voting rights), or a member ofbusiness personnel of such shareholder＊1.
(2) A member of business personnel of a creditor of MC exceeding the threshold set by MC＊2.
(3) A member of business personnel of a supplier or a customer of MC exceeding the threshold set by MC＊3.
(4) A provider of professional services, such as a consultant, lawyer, or certified public accountant, receiving cash or other financial
benefits from MC, other than Directors’ or Audit & Supervisory Board Members’ remuneration, where the amount exceeds ¥10
million per fiscal year.
(5) A representative or partner of MC’s independent auditor.
(6) A person belonging to an organization that has received donations exceeding a certain amount＊4 from MC.
(7) A person who has been appointed as an Outside Director or Outside Audit & Supervisory Board Member of MC for more than eight
years.
＊1 A member of business personnel refers to a managing director, corporate officer, Executive Officer, or other employee of a company.
＊2 Creditors exceeding the threshold set by MC refer to creditors to whom MC owes an amount exceeding 2% of MC’s consolidated total assets.
＊3 Suppliers or customers exceeding the threshold set by MC refer to suppliers or customers whose transaction amount with MC exceed 2% of MC’s
consolidated revenues.
＊4 Donations exceeding a certain amount refer to donations of more than ¥20 million per fiscal year.

If a person is still judged by MC to be effectively independent despite one or more of the above items (1) to (7) applying, MC will
explain and disclose the reason at the time of their appointment as an Independent Director or Independent Audit & Supervisory
Board Member.

281

Environment

SocialGovernanceInitiatives to Enhance the Effectiveness of the Board of Directors
To ensure that the Directors and Audit & Supervisory Board Members are able to perform their management supervision and audit
functions adequately, the Board of Directors’ Office and the Audit & Supervisory Board Members’ Office have been established, andhave been providing necessary information and support appropriately and in a timely manner for them to perform their duties.
For Independent Directors and Independent Audit & Supervisory Board Members, the offices provide below measures to ensure thatthey can effectively participate in the discussion fully and to enhance the Board’s monitoring function.

Briefing Sessions Before Board of Directors’ Meetings
Prior to each Board of Directors meeting, opportunities are created for the management executives of the Corporate Staff Section andBusiness Groups to provide explanatory summaries of the agenda items for which they are responsible to Independent Directors andIndependent Audit & Supervisory Board Members in order to facilitate substantive deliberations at the meetings. The sessions are alsoutilized to appropriately share timely information that helps enhance deliberations.

Meetings of Independent Directors and Independent Audit & Supervisory Board
Members
Meetings are held regularly to provide a forum for free discussion amongst Independent Directors and Independent Audit & Supervisory
Board Members on a wide range of topics.

■Main Discussion Themes (FY2022)
Midterm Corporate Strategy 2024
Business portfolio analysis
Future issues and initiatives based on evaluation of the effectiveness of the Board of Directors

Discussion between Independent Members of the Board and Officers andEmployees
MC has set up dialogues with the General Managers of the Corporate Staff Section, Business Group Heads, Business Group CEOs andBusiness Division COOs, small-group discussions with Executive Vice Presidents, and dialogues with mid-level and young employees tostrengthen interaction between Independent Members of the Board and officers and employees.

282

Environment

SocialGovernanceDialogues with and Site Visits to Business Subsidiaries and Affiliates
Every year Independent Directors and Independent Audit & Supervisory Board Members participate in site visits to business subsidiaries
and affiliates both in Japan and overseas, and hold dialogues with their management.

<FY 2022 Visits>
October 2022, Metallurgical coal mines and silica mines in Australia
November 2022, Dialogue with management executives of Automotive-related business companies in Thailand and Indonesia
March 2023, Shonan Health Innovation Park (Shonan iPark)BMA Metallurgical Coal Mining Site (October, 2022)

Cape Flattery Silica Mines Pty., Ltd. (Australia) (October, 2022)

Tri Petch Isuzu Sales Co., Ltd (Thailand) (November, 2022)

283

Environment

SocialGovernance

Orientation upon Assumption of Office
To deepen understanding of MC, the entire Corporate Staff Section and Business Groups conduct orientation sessions for newly
appointed Independent Directors and Independent Audit & Supervisory Board Members.

The Evolution of MC's Corporate Governance
Since the 2000s, MC has engaged in building the foundations of its corporate governance. In recent years, MC has been steadily
advancing measures to strengthen the monitoring functions of the Board of Directors, incorporating the results of annual evaluations of
the effectiveness of the Board of Directors.

284

Environment

Social

Evaluation of the Effectiveness of the Board of Directors

285

GovernanceEnvironment

SocialGovernanceInitiatives on Japan’s Corporate Governance CodeMC has long worked to implement corporate governance as the foundation of sound, transparent and efficient management. We havedetermined that MC is implementing all principles set forth in Japan’s Corporate Governance Code. (For more information, please see
the Corporate Governance Report on MC’s website.)
Reference:

Corporate Governance Report (Translation of report filed with the Financial Instruments Exchange)

Corporate Governance Report | Mitsubishi Corporation

MC’s Stance on Acquisition, Holding, and Reduction in Listed Shares
MC may acquire and hold shares acquired for other than pure investment as a means of creating business opportunities and building,maintaining and strengthening business and partner relationships. When acquiring these shares, MC confirms necessity of its
acquisition based on the significance and economic rationale of the purchase. Also, MC periodically reviews the rationality of continuing
to hold the shares and promotes reducing holdings of stocks with decreased significance.

[Verification policy for holding individual shares]
The Board of Directors verifies all of the listed shares (excluding pure investment) held by MC from the perspectives of both economic
rationale and qualitative significance of holding them every year.
The economic rationale is confirmed by whether or not the related earnings from each stock, such as dividends and related businessprofits on transactions, exceed MC’s target capital cost (Weighted Average Cost of Capital) for the market price of each individual share.
The qualitative significance is confirmed by the achievement or status of progress of the expected purpose for holding the stock, etc.

[Reduction in holdings of listed stocks]
Based on the results of the above verification, in FY2022, MC sold approximately 39.6 billion yen of its shareholdings (including 13.8
billion yen in deemed holding shares), a decrease of approximately a 10% from the previous fiscal year. As of FY2022, the total market
value was approximately 0.5 trillion yen (including deemed shareholdings).
FY2020

FY2021

FY2022￥91.5 billion￥85.2 billion￥39.6 billion(Market value basis and including deemed shareholdings)[Matters verified by the Board of Directors]
Verification was conducted by the Board of Directors for all listed shares held by MC as of March 31, 2023 (market price wasapproximately 0.5 trillion yen, including deemed shareholdings). As a result of verification from the perspectives of both economic
rationale and qualitative significance of holding them, numerous shares were identified as candidates for reduction due to a decreased
importance of the expected purpose and significance for holding them, etc.

286

Environment

SocialGovernance[Stance on Exercising Voting Rights Relating to Listed Stocks]
MC attaches great importance to dialogue and communication with its investment destinations through various channels, aiming tocreate business opportunities and build, maintain and strengthen business and partner relationships, and from the perspective of raising
the mid- and long-term corporate value of MC and these companies. MC considers exercising voting rights to be an important approach.
For this reason, when exercising voting rights relating to an investment destination including the listed shares acquired for purposes
other than for pure investment purposes, the department responsible for the oversight of the company reviews its business conditions(earnings, capital efficiency, etc.) from both quantitative and qualitative standpoints in accordance with internal regulations. These
regulations stipulate matters to be considered, etc., when determining whether to vote for or against proposals such as appropriation of
surplus, election of Directors and Audit & Supervisory Board Members, and revision of executive remuneration. Then MC exercises its
voting rights appropriately for individual matters for resolution. Furthermore, with regard to the proposals for the election and dismissal of
Independent Directors and Independent Audit & Supervisory Board Members of listed subsidiaries, MC’s internal regulation also
stipulate that their independence from MC is to be examined before exercising voting rights.

MC's Pension Management Structure
In an effort to utilize personnel with experience in markets and investment, those responsible for pension management are appointed
from the Finance Department of MC and serve concurrently as employees of the MC Pension Fund. The basic policy and management
guidelines for safe and efficient management of the reserve are drafted and issued to institutions contracted to undertake management,
which are then monitored constantly. Marked with the responsibility for autonomous allocations it holds, the fund has announced its
acceptance of Japan’s Stewardship Code and requires the institutions entrusted with management of the assets to perform stewardship
activities.

Policy and Procedures for Appointment and Dismissal of Management Executive
and Appointment of Nominated Directors and Audit & Supervisory Board Members
Ensuring Objectivity and Transparency through Deliberation at the Governance, Nomination and Compensation
Committee, Where Independent Directors and Independent Audit & Supervisory Board Members Have a Majority
For the appointment of President and CEO, the requirements of the role, the basic policy on appointment, and selection of individual
candidates are deliberated and reviewed by the Governance, Nomination and Compensation Committee where Independent Directors
have a majority (4 Independent Directors out of 7 Committee Members). Appointments are then decided by the Board of Directors, which
also appoints and assigns duties to Executive Officers. Moreover, the policy and process for appointment and all appointment proposals
of Directors and Audit & Supervisory Board Members and each appointment proposal are deliberated by the Governance, Nomination
and Compensation Committee and resolved by the Board of Directors, before being presented at the Ordinary General Meeting of
Shareholders. See II 2. in this report for details. Furthermore, the Company’s policy is to take a flexible approach to determining anddealing with dismissal of President and CEO. The matter is deliberated by the Governance, Nomination and Compensation Committee
before being resolved by the Board of Directors.

287

Environment

SocialGovernance

Details of Retired Executives Currently Serving in Advisory Positions
Name

Position

Area of Assignment

Work Conditions(full/part-time,
remunerated, etc.)

Ken Kobayashi

Honorary Chairman

External affairs

Part-time, noremuneration

Date of Retirement as

Term Ends

President, etc.*
March 31,2022

Number of retired executives currently serving in advisory positions

March 2028

1

Mitsubishi Corporation appoints, as necessary, retired executives (President and CEO) to the position of Honorary Chairman. Currently,
one Honorary Chairman is appointed. The Honorary Chairman does not serve as a Director. He does not participate in internalmanagement meetings and is not involved in the Company’s decision-making process. He mainly engages in external activities thatcarry high social significance based on requests to the Company.
With effect from July 2020, the Honorary Chairman executes his duties on a part-time basis, with no remuneration.
* Date of retirement from Chairman of the Board

Policy of Dialogue with Shareholders(a) Basic Stance
MC’s corporate philosophy is enshrined in the Three Corporate Principles. Through corporate activities rooted in the principles offairness and integrity, MC strives to continuously raise corporate value over the medium to long term, which MC believes that it will also
meet the expectations of all stakeholders. In order to achieve these goals, MC is committed to fulfill accountability as a corporate
enterprise that gains credibility and reputation from stakeholders, including shareholders and investors, by proactively engaging in
dialogue with them and by appropriately and timely communicating the Company's management and business strategies to thestakeholders while simultaneously communicating those stakeholders' expectations to the management. Namely MC is leading mutual
feedback with stakeholders and the Company’s management.

(b) Persons in Charge and Promoting System
To strengthen communication with shareholders and investors, MC has appointed a Chief Stakeholder Engagement Officer (CSEO) asof April 2023. The CSEO manages the Corporate Communications Department, the Sustainability Department, and the Investor &Shareholder Relations Department to meet the diversifying needs of stakeholders in an integrated manner. The Investor & Shareholder
Relations Department is responsible for dialogue with shareholders and investors, and the Investor & Shareholder Relations Department
led to build a cross-sectional company structure, by organically linking business groups to corporate staff departments.
Furthermore, with respect to information disclosure, on which dialogue with shareholders and investors is premised, MC prepares
documents in line with the Financial Instruments and Exchange Act, Companies Act, and others, and discloses information in a timely
and appropriate manner in line with the rules defined by the Financial Instruments exchange. In addition, MC has established theDisclosure Committee, a sub-committee of the Executive Committee, and deliberates and confirms the appropriateness of the content of
the Annual Securities Report disclosure documents. The CSEO leads the way in disclosing proactive, highly transparent information
through the MC website, Sustainability Website, Integrated Reports, Investors’ Note, and newspaper ads, etc. As a policy for its
information disclosure system, MC developed and disclosed Information Disclosure Regulations to keep all officers and employees fully
informed.

288

Environment

SocialGovernance(c) Policy of Dialogue with Shareholders and Investors and Results of Activities
To continually raise corporate value over the medium to long term, MC is promoting constructive communication with shareholders andinvestors as follows.

i. Ordinary General Meeting of Shareholders
MC positions the Ordinary General Meeting of Shareholders as the place to fulfill accountability to shareholders. In addition to proactive
information disclosure in the Notice of Ordinary General Meeting of Shareholders, MC tries to respond to questions raised byshareholders in a respectful manner.

ii. Communication with Individual Investors
MC holds regular meetings for individual investors.
＜Activities Conducted in FY2022＞
Individual investor briefing sessions: 9 times (of these, 1 included the participation of the President, CFO, etc.)

iii. Dialogue with Institutional Investors
In addition to quarterly financial results briefings, briefing sessions and meetings are held for domestic and foreign institutional
investors.In addition, briefing and dialogues called "MCSV Creation Forum" are held.

＜Activities Conducted in FY2022＞
Financial results briefings*: 4 meetings
MCSV Creation Forum*: 3 meetings (2 business briefing sessions, 1 ESG Briefing)
Interviews with domestic and foreign institutional investors (operations departments) and analysts: approximately 430 meetings (ofthese, approximately 30 included the participation of the President and CEO, CSEO, CFO, etc.)
Interviews with domestic and foreign institutional investors (responsible investment departments): approximately 70 meetings (of these,
3 included the participation of the CSEO, CAO, etc.)(d) Feedback to Business Management and Control of Insider Information
MC has developed a system by which the opinions from shareholders and investors and business challenges obtained through IR and
SR activities are adequately reported to the management including the President and CEO, Board of Directors, and the Executive
Committee. In addition, to help improve business management, the responsible departments feed the opinions obtained throughcommunication with shareholders and investors across financial results briefings and other means back into the Company.
To prevent insider information from being leaked during communication with shareholders, either deliberately or accidentally, MC has set
forth the Standard for the Prevention of Unfair Stock Trading in accordance with the Code of Conduct for MC’s Officers and Employees.
MC keeps all officers and employees fully informed of this requirement.
Reference:

In Investor Information on the Company’s website, MC posts various types of IR information in addition to the documents listed below.
Details are available on the Company’s website at the following URL.

https://www.mitsubishicorp.com/jp/en/ir/
Presentation Materials
Earnings Release
Integrated Reports
Financial Statements
Quarterly Reports
Investors’ Note
Corporate Brochure
Sustainability Website

289

Environment

SocialGovernance

Governance

Audit & Supervisory Board and Audit

Audit & Supervisory Board Members /Audit & Supervisory Board
The Audit & Supervisory Board comprises all of the Audit & Supervisory Board Members responsible for auditing the decision-making
processes and management performance of Directors in compliance with the Companies Act and other laws and regulations as well as
Mitsubishi Corporation (MC)’s Articles of Incorporation and internal rules and regulations.
Full-time Audit & Supervisory Board Members and Independent Audit & Supervisory Board Members ensure the soundness of the
management by executing audits informed by abundant working experience at MC and by experience in their particular fields as well asa neutral and objective perspective, respectively. In addition to making resolutions on matters required by law and other important
issues, the Audit & Supervisory Board strives to enhance information-sharing among the Members through briefings on key matters andreporting on the status of the auditing activities of each of the Members.

Structure of the Audit & Supervisory Board (As of June 23, 2023)

Full-time
Audit &
Supervisory
Board
Members

Job History, Positions and Responsibilities

Mitsumasa
Icho

2022 Full-time Audit & Supervisory Board
Member (present position)
1982 Joined MC

Akira
Murakoshi

2023 Full-time Audit & Supervisory Board
Member (present position)
1982 Joined MC

Independent
Audit &
Supervisory
Board Members

Attendance at Board of
Directors Meetings (FY2022)

Attendance at Audit &Supervisory Board Meetings(FY2022)

Attendance at Governance,
Nomination & Compensation
Committee Meetings(FY2022)

Number ofmeetings
attended/heldNumber ofmeetings
attended/held

Attendance
rate

Number ofmeetings
attended/held

100%

-

-

-

-

-

Attendance
rate

Regular:7/7
Extraordinary:

100% 9/9*

Attendance
rate

3/3*
-

Job History, Positions and Responsibilities--

Attendance at Board of Directors
Meetings (FY2022)

Attendance at Audit & Supervisory
Board Meetings (FY2022)

Number ofmeetings
attended/heldNumber ofmeetings
attended/held

Attendance rate

Attendance rate

Rieko Sato*

2020 Audit & Supervisory Board Member, MC (present position)
1998 Partner, ISHII LAW OFFICE (present position)
1989 Shearman & Sterling LLP (resigned in 1990)
1984 Admitted to the Japan Bar (Attorney-at-Law)

Regular:10/10
Extraordinary:
4/4

100% 12/12

100%

Takeshi Nakao*

2020 Audit & Supervisory Board Member, MC (present position)
2006 CEO, PARTNERS HOLDINGS, Co., Ltd. (present position)
1993 Admitted to Certified Public Accountant of Japan
1989 Joined KPMG Minato Audit Corporation (currently KPMG
AZSA LLC) (resigned in 1996)

Regular:10/10
Extraordinary:4/4

100% 12/12

100%

Mari Kogiso*2022 Audit & Supervisory Board Member, MC (present position)
2021 Founder and CEO, SDG IMPACT JAPAN Inc.(present
position)2019 General Manager, CEO Office, Fast Retailing Co., Ltd.
1998 joined World Bank（resigned in 2010)
1990 joined The Long-Term Credit Bank of Japan

100% 9/9*

100%

290

Regular:7/7
Extraordinary:
3/3*

Environment

Reference:

SocialGovernance

Please refer to “Selection Criteria for Independent Directors and Independent Audit & Supervisory Members” on the MC website forthoughts regarding independence in selection criteria for Independent Directors and Independent Audit & Supervisory Members.
(https://www.mitsubishicorp.com/jp/en/about/governance/corporategovernance.html)* Indicating attendance after appointment as Audit & Supervisiory Board Member on June 24, 2022.
* Indicates the fulfillment of the conditions for Outside Audit & Supervisory Board Members as provided for in Article 2, Item 16 of the Companies Act. Also
indicates the fulfillment of the conditions for Independent Directors / Auditors as specified by Tokyo Stock Exchange, Inc. as well as selection criteria for
Independent Audit & Supervisory Board Members specified by MC.

Percentage of Independent Audit & Supervisory Board Members among Total Audit & Supervisory Board
Members** Based on the status as of June 23, 2023

Audit Plans
Prior to each fiscal year, the Audit & Supervisory Board formulates audit plans with key areas. In FY2022 (ended March 31, 2023), thefollowing three key audit areas were selected for the monitoring of specific progress in management and execution.

1. Following-up Midterm Corporate Strategy 2024:
Progress of major items in the new medium-term Corporate strategy

2. Enhancing MC Group Management:
Establishment of self-sustaining governance at business subsidiaries and affiliates
Consolidated risk management and compliance system

3. Initiatives to Strengthen Group Corporate Governance:
Further enhancement of deliberations at Board of Directors’ meetings
Ensuring the effectiveness of remote audits/internal controls

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Environment

SocialAudits of Management Performance1

Dialogue with Executive Officers

Opportunities are created for all Audit & Supervisory Board Members, including theIndependent Audit & Supervisory Board Members, to engage in dialogues with the
Chairman of the Board, President and CEO, Corporate Functional Officers,
Business Group Heads/CEOs, Business Division COOs, General Managers of
Administrative Departments, General Manager of Internal Audit Department,
General Manager of the Corporate Strategy & Planning Department and General
Managers of the Corporate Staff Section.
*1 Numbers for FY2022*2 Indicates the number of cases in which more than one Independent Audit & Supervisory
Board Member joine

2

Attendance at Important Meetings

Besides the Audit & Supervisory Board, Full-time Audit & Supervisory Board
Members attend meetings of major internal management bodies, including Board of
Directors; Governance, Nomination and Compensation Committee; Executive
Committee and Business Strategy Committee; and provide opinions as necessary.
Besides the Audit & Supervisory Board, the Independent Audit & Supervisory Board
Members attend meetings of the Board of Directors after being briefed on
discussions in the Executive Committee and lower conference bodies, and provide
opinions as necessary.
*1 Numbers for FY2022*2 Indicates the number of cases in which more than one Independent Audit & Supervisory
Board Member joine

3

On-site Audits and Observations

Audit & Supervisory Board Members proactively conduct on-site audits and visits ofoverseas and domestic MC Group companies in an effort to grasp the local
circumstances. In selecting the locations of the on-site audits and visits for the Audit& Supervisory Board Members, besides quantitative aspects such as investment
amount and net income, qualitative aspects such as the business environment andcompliance cases are also taken into account.
In light of the relaxation of restricitons on overseas travel, the Audit & Supervisory
Board resumed overseas on-site audits and observations, which they worked toenhance while striving to prevent the spread of COVID-19.
In FY2022,the Audit & Supervisory Board Members met with the CEOs andexecutive officers of 24 MC Group companies in seven locations overseas and 19
domestic MC Group companies, as well as the regional cheifs of 10 overseas anddomestic offices. The Audit & Supervisory Board Members reported on the results of
their on-site audits to the Chairman of the Board, the President and CEO, and therelevant executive officers.
At least one Independent Audit & Supervisory Board Member participated in on-site
audits and visits with 10 companies in 4 countries overseas and 18 domestic MC
Group companies, as well as 6 overseas and domestic offices.
*1 Numbers for FY2022*2 Indicates the number of cases in which more than one Independent Audit & Supervisory
Board Member joine

292

GovernanceEnvironment

4SocialGovernanceReinforcement of Group Corporate GovernanceIn addition to dialogues with the CEOs and other executive officers of the MC Group companies, opportunities were arranged for theexchange of information every quarter with the Audit & Supervisory Board Members of 37 major Group companies in Japan. The Audit &Supervisory Board Members of the MC Group companies also arranged subcommittees to provide opportunities to share informationand exchange opinions. We also provided assistance in training for those who would be assigned to the MC Group companies as fulltime Audit & Supervisory Board Members. We will continue working to strengthen the Group corporate governance through regularmonitoring.

Enhancing the Effectiveness and Auditing Activities of the Audit & Supervisory
Board (Members)
MC conducts annual evaluations of the Board of Directors in order to make continuous improvements to the effectiveness of its
corporate governance. The Audit & Supervisory Board (Members) focused on the following matters, referring to the issues reviewed in
the effectiveness evaluation.

Improving the scope of information sharing on important investment and loan projects
For matters to be submitted for approval or reported to the Board of Directors, preliminary briefings are held for the Independent
Directors and Independent Audit & Supervisory Board Members by management on the executive side prior to deliberation by the Boardof Directors. For the Audit & Supervisory Board, in addition to these preliminary briefings, members also receive explanations from the
Audit & Supervisory Board staff related to Board of Directors matters of especially high importance as well as matters that are notquantitatively applicable to the Board of Directors but that are still qualitatively important. The Audit & Supervisory Board Members thenexchange opinions and share their awareness of risks in relation to the loan and investment projects.

Enhancing the provision of Information to the Independent Directors and Audit & Supervisory Board Members
through various dialogues hosted by the Audit & Supervisory Board Member's office
As an activity of the Audit & Supervisory Board Members, MC has traditionally provided opportunities for discussion between all Audit &Supervisory Board Members and management executives such as the Chairman, President and CEO, Corporate Functional Officers
and Group CEOs. As in the previous fiscal year, Independent Directors also actively participate. In addition, since FY2020, we haveincorporated Business Reports from senior management, which used to be held at meetings of the Board of Directors, into this dialogue,
allowing sufficient time for the provision of information, including questions and answers. Independent Audit & Supervisory Board
Members also participate in dialogues with the Division Chief Operating Officer to ensure opportunities to hear the opinions of
employees on the ground.

Enhancing the Effectiveness of the Audit & Supervisory Board and Its Members
To increase the effectiveness of the audits performed by the Audit & Supervisory Board Members, in the year ended March 31, 2023,
continuing initiatives implemented in the previous fiscal year, we further enhanced the reviews of the activities of the Audit & Supervisory
Board. Specifically, as in previous years, the Audit & Supervisory Board held mid-year and year-end reviews of audit progress, focusing
mainly on key audit areas. In addition, the Audit & Supervisory Board carried out an evaluation of its effectiveness, mainly through asurvey of its members and hearing about the survey results. The Audit & Supervisory Board discussed the findings of this evaluation inorder to review its auditing methods and reflect the results in the audit plan for coming fiscal year. The evaluation found that the audits
performed by the Audit & Supervisory Board functioned adequately, that ongoing efforts are being made to enhance the Audit &Supervisory Board's effectiveness, and that it will continue to bolster its effectiveness going forward by working to enhance operations insuch areas as efficiently setting up dialogues.

293

Environment

SocialGovernance

Enhancement of Tripartite Audits
Audit & Supervisory Board Members strive to further strengthen cooperation with Independent Auditors and the Internal Audit
Department in order to assess the Company's situation with the aim of improving the effectiveness of audits.

Collaboration with Independent Auditors / Evaluation of Independent Auditors
We work with Independent Auditors through their outline briefings on accounting audit plans, audit reports for quarterly results andmonthly meetings. During on-site audits and visits, we also exchange opinions with the Independent Auditors of MC Group companies inJapan and overseas.
With regard to performance evaluations of Independent Auditors, we keep track of evaluation data during the fiscal year from regular
audit reports and other sources, and hold an Independent Auditor evaluation conference at the end of the fiscal year. As a result, wehave concluded that the current Independent Auditors performed appropriate audits in a professional manner, and accordingly, the Audit& Supervisory Board resolved to reappoint the Independent Auditors.

Collaboration with the Internal Audit Department
The Internal Audit Department and Full-time Audit & Supervisory Board Members hold monthly meetings where exchange of opinions
are made concerning reports on internal audit results. Also at Audit & Supervisory Board meetings, the Internal Audit Department shares
their quarterly audit results.
In addition, Audit & Supervisory Board Members attend the internal auditor liaison meetings of 45 major MC Group companies in Japan
held by the Internal Audit Department, while the General Manager of the Internal Audit Department attends liaison meetings held by
MC’s Audit & Supervisory Board Members with the Audit & Supervisory Board Members of the MC Group companies mentioned above,
and all parties collect audit information and exchange opinions.

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Environment

SocialGovernance

Audit
Audit & Supervisory Board Member Audits
The Audit & Supervisory Board has five Members, consisting of two in-house members and three independent members. Of the 2 Inhouse Audit & Supervisory Board Members, Mitsumasa Icho has experience in the corporate management, and finance and accounting
departments, and Akira Murakoshi has experience in the corporate management. They are appointed as Full-time Audit & Supervisory
Board Members, respectively. Of the 3 Independent Audit & Supervisory Board Members, Rieko Sato and Takeshi Nakao haveextensive experience as an attorney (corporate law) and a certified public accountant respectively, and Mari Kogiso has in-depth insight
into ESG and fincance. Of the 5 Audit & Supervisory Board Members, Mitsumasa Icho, Full-time Audit & Supervisory Board Member,and Takeshi Nakao, Independent Audit & Supervisory Board Member, have a considerable degree of knowledge and experience
concerning finance and accounting. One of the Full-time Audit & Supervisory Board Members heads the Audit & Supervisory Board andis also the specified Audit & Supervisory Board Member stipulated by the law. Audit & Supervisory Board Members are assisted asneeded by the 8-member Audit & Supervisory Board Members Office (as of April 1, 2023), which is an independent organizational body.
As part of their activities based on the audit plan, Audit & Supervisory Board Members attend important meetings of major internalmanagement bodies (132 meetings including Executive Committee and Business Strategy Meeting, etc.) and hold discussions withinternal departments, including important offices in Japan and overseas (67 dialogues with executive officers (Chairman of the Board,etc.), dialogues with CEOs and other executive officers at 24 overseas business subsidiaries/affiliates and 19 domestic ones, as well aswith the regional chiefs of 10 overseas and domestic offices). At the same time, Audit & Supervisory Board Members hold regularmeetings with MC’s independent auditors and Internal Audit Department, to accurately and in a timely manner grasp MC’s situation
through close cooperation. The Audit & Supervisory Board provides a forum for lively discussion, where the Audit & Supervisory Board
Members report and share their audit activities as well as making decisions on statutory matters and so forth. In FY2022 (ended March
31, 2023), Audit & Supervisory Board were held 12 times, and all Audit & Supervisory Board Members were in attendance at every
meeting. At the Audit & Supervisory Board meeting implemented in the end of the last fiscal year or in the beginning of the fiscal year,
the audit plan for that fiscal year is decided upon and a review of the previous fiscal year’s audit activities is carried out. These matters
are also reported to the Board of Directors. Furthermore, in addition to statutory matters such as the audit report and the selection anddismissal, and remuneration of the independent auditors, the Audit & Supervisory Board also discusses major investment and financeprojects and issues identified through audit activities such as on-site audits, tours and dialogues, etc.

Internal Audits
Regarding internal audits, the Internal Audit Department (which had 80 members as of April 1, 2023) conducts audits of MC and its
overseas regional subsidiaries and affiliated companies from a Company-wide perspective. In addition, each Business Group has
established its own internal audit organization, which audits the operations that fall under its Group organization on a consolidated basis.
These internal audits are based on annual audit plans and are conducted after selecting audit targets. Under a dual reporting system,
the audit results are reported each time to the President and CEO, Audit & Supervisory Board Members and other concerned parties.
They are also reported regularly to the Board of Directors and the Executive Committee.
MC conducts regular audits throughout the year of MC and MC Group companies in accordance with the International Standards forInternal Auditing every three to five years, taking into factors such as accounting risks and business scale. In addition to legal
compliance, the MC Group also considers social norms and business ethics in verifying and evaluating each process of governance, risk
management and internal controls. MC has also been conducting thematic audits annually since FY2021, covering the entire MC Group
regarding anti-bribery and anti-trust laws, as well as the status of environmental issue management in FY2022. In FY2023 we focusedon the status of internal auditing structure and audit and supervisory board members at subsidiaries.

295

Environment

SocialGovernanceAccounting Audits
The three certified public accountants who carried out the accounting audit of Mitsubishi Corporation were Yuki Higashikawa, Hirofumi
Otani and Sogo Ito of Deloitte Touche Tohmatsu LLC. They were assisted by 31 certified public accountants, 21 junior accountants and90 other staff.

Mutual Cooperation among Audit & Supervisory Board Member Audits, Internal
Audits and Accounting Audits, and their Relationship with Internal Control
Departments
The Audit & Supervisory Board Members, Corporate Accounting Department, and independent auditors hold regular meetings at thetime of quarterly financial results and monthly, and provide opportunities for exchanging opinions with subsidiaries and affiliates asnecessary.
In addition, the Internal Audit Department makes regular audit reports to the Audit & Supervisory Board, the Audit & Supervisory Board
Members have monthly meetings with the Internal Audit Department, and the Audit & Supervisory Board Member and the Internal Audit
Department hold liaison meetings with the Audit & Supervisory Board Members and internal audit departments of subsidiaries andaffiliates, and so forth. In addition, the Audit Department also began participating in the regular meetings for exchanging information andopinions with Audit & Supervisory Board Members and Independent Auditors in the Fiscal Year ended March 31, 2023.
This cooperation is intended to strengthen the linkages supporting three-way audits (Audit & Supervisory Board Member Audits, Internal
Audits and Accounting Audits).
Fees paid to Mitsubishi Corporation’s independent auditors Deloitte Touche Tohmatsu LLC for FY2022 were as follows:a. Amount of fees for services in accordance with the first clause of Article 2 of the Certified Public Accountant Law of Japan (Law No.
103, 1948) *1 ¥846 million
b. Amount of fees for services other than those prescribed in the first clause of Article 2 of the Certified Public Accountant Law of Japan*2 ¥38 millionc. Total amount of fees to be paid by Mitsubishi Corporation and consolidated subsidiaries *3 ¥2,838 million*1 Fees for services prescribed in the first clause of Article 2 of the Certified Public Accountant Law of Japan (Law No. 103, 1948) are fees, etc. for audit
certification services relating to English language financial statements prepared based on International Financial Reporting Standards (IFRS) and audit
certification based on the Companies Act and the Financial Instruments and Exchange Act.
*2 Fees for services other than those prescribed in the first clause of Article 2 of the Certified Public Accountant Law of Japan are fees for comfort letter
preparation for bond issuance, training, etc.
*3 Some subsidiaries are audited by certified public accountants or independent auditors (including persons with qualifications equivalent to thesequalifications in overseas countries) other than Mitsubishi Corporation’s independent auditors.

296

Environment

SocialGovernance

GovernanceDirectors’ and Audit & Supervisory
Board Members’ Remuneration, etc.
Directors’ and Audit & Supervisory Board Members’ Remuneration

Directors’ and Audit & Supervisory Board Members’ Remuneration
In line with the Basic Policy on Corporate Governance, MC has established a remuneration package for Directors and Audit &Supervisory Board Members to ensure a sustainable increase in corporate value, and to ensure that their respective roles are fulfilledproperly according to business execution and management supervision functions. The basic approaches behind the package are as
follows.

Basic Approach to the Package
Remuneration Levels
Levels of remuneration are set based on the functions and roles of the Directors and Audit & Supervisory Board Members, MC’s
performance level and other factors.
Based on performance targets, MC sets globally competitive remuneration levels to encourage a desire for growth among humanresources who will be responsible for the next generation of management and to improve organizational vitality.

Remuneration Composition
Remuneration for Directors is designed for greater focus on increasing medium- and long-term corporate value by more closely
linking remuneration to medium- to long-term corporate value and fiscal year earnings, as well as the creation of stock remuneration
with stronger ties to shareholder value, in addition to cash compensation. From this perspective, profit (single year and medium tolong term), sustainability factors (medium to long term) , the share price and share growth rates (medium to long term) are adopted as
key performance indicators.
To ensure the independence of the Chairman of the Board and Independent Directors, who undertake functions of management
oversight, and Audit & Supervisory Board Members, who undertake audits, MC only pays them fixed monthly remuneration.

Governance of Remuneration
The Governance, Nomination and Compensation Committee , where a majority of the members are Independent Directors andIndependent Audit & Supervisory Board Members, continuously deliberates and monitors methods for deciding remuneration
packages, the fairness of remuneration levels and compositions (including components of remuneration subject to clawback policy),*
and the status of implementation.
Reference:

Governance, Nomination and Compensation Committee* To enhance the management from the longer-term perspective, MC has adopted a clawback policy, applicable to the individual performance-linked
remuneration, performance-linked bonuses (short term) and performance-linked bonuses (medium to long term) of Executive Directors. In addition, nonpayment or reduction of the amount is possible in the event of serious violation of a delegation agreement etc, regarding annual deferral for retirement
remuneration.

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The Process for Setting Remuneration for Directors and Audit & Supervisory Board
Members
The Governance, Nomination & Compensation Committee deliberates and the Board of Directors decides the policy for setting Directors’
remuneration and the remuneration amount (actual payment amount).
The total remuneration amount (actual payment amount) and individual payment amounts for Directors, excluding individual
performance-linked remuneration, are determined by a resolution of the Board of Directors within the upper limits for each type of
remuneration decided by resolution of the Ordinary General Meeting of Shareholders held on June 21, 2019. Base salary and annualdeferral for retirement remuneration, forms of fixed remuneration, are paid in amounts determined by the Board of Directors. As forvariable remuneration, payments of performance-linked bonuses (short term), performance-linked bonuses (medium to long term) andstock-based remuneration linked to medium- to long-term share performance are determined, while reflecting key performanceindicators, based on a formula set by the Board of Directors following deliberation by the Governance, Nomination & Compensation
Committee.
MC has adopted a clawback policy*, applicable to the individual performance-linked remuneration, performance-linked bonuses (shortterm) and performance-linked bonuses (medium to long term) of Executive Directors, revising the regulations for executive officers by
resolution at the Board of Directors’ meeting held on February 18, 2022.
The payment amounts of individual performance-linked remuneration paid to Directors based on their individual performanceassessment, including a qualitative assessment, are determined and paid on an individual basis, reflecting the President’s yearly
performance assessment in both financial and non-financial terms of each Director for the relevant fiscal year (the Board of Directors
delegates authority to the President for deciding the individual payment amounts). Performance evaluations of Executive Directors
comprehensively take into account their contributions to the organizations and businesses they oversee; their contributions to the
management of the entire Company, Corporate Staff Section, Business Groups and offices; and the state of the initiatives for value
creation that leads to sustainability.
The annual assessment on the President’s performance is decided by the President’s Performance Evaluation Committee, which isdelegated this authority by the Board of Directors (and is a subcommittee of the Governance, Nomination & Compensation Committee).
The subcommittee is comprised of the Chairman of the Board, who also serves as the chair of the Governance, Nomination &Compensation Committee, and Independent Directors sitting on the committee.
Results of the performance assessment are reported to the Board of Directors and the Governance, Nomination & Compensation
Committee to ensure objectivity, fairness, and transparency.
Based on the policy for determining remuneration packages (including methods for calculating performance-linked bonuses) that wasapproved at the ordinary meeting of the Board of Directors held on May 17, 2019, and the extraordinary meeting of the Board of
Directors held on June 21, 2019, each year, the Governance, Nomination & Compensation Committee deliberates and the Board of
Directors makes a resolution determining that the total amount of director remuneration packages and methods for deciding payments toindividual directors are consistent with said policy for determining remuneration packages.
Each year the Governance, Nomination & Compensation Committee deliberates and monitors the fairness of the remuneration levels
and compositions (including remuneration items which are subject to the clawback policy) as well as the operational status of
remuneration systems. This is done with the reference to data on remuneration levels and composition ratios provided by an external
consulting firm (Willis Towers Watson).
To ensure the independence of the Chairman of the Board and Independent Directors, who undertake functions of management
oversight, and Audit & Supervisory Board Members, who undertake audits, MC only pays them fixed monthly remuneration.
Total and individual amounts of remuneration paid to Audit & Supervisory Board Members are determined following deliberations by the
Audit & Supervisory Board within the scope of remuneration for Audit & Supervisory Board Members approved at the Ordinary General
Meeting of Shareholders, held on June 21, 2019.
* In the event that an executive officer causes any loss or damage to the company from willful misconduct or negligence, a serious violation of a delegationagreement, or a serious accounting error/ex-post revision of a financial report due to misconduct resolved by the Board of Directors, non-payment or
reduction of the amount/reclaiming of the paid amount is possible by resolution of the Board of Directors. The Governance, Nomination & Compensation
Committee continuously deliberates and monitors the appropriateness of remuneration compositions, including remuneration items which are subject tothe clawback policy.

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SocialGovernance

Remuneration Package for Directors and Audit & Supervisory Board Members (from FY2023)

Note:1) to 5) in the table indicate the number of limits on remuneration that correspond to each remuneration item.
Remuneration limits for Directors and Audit & Supervisory Board Members are approved at the 2019 Ordinary General Meeting of
Shareholders for FY2019 held on June 21, 2019, as described in 1) to 4) and 5) below.
The number of Directors to whom the above amounts of Director remuneration (excluding stock-based remuneration linked to mediumto long-term share performance) applied was 13 (including 5 Independent Directors); the number of directors to whom the above amountof stock-based remuneration linked to medium- to long-term share performance applied was 7; and the number of Audit & Supervisory
Board Members to whom the above amount of Audit & Supervisory Board Member remuneration applied was 5 (including 3 Independent
members).
1) The total annual amount for base salary, annual deferral for retirement remuneration and individual performance-linked remuneration
shall be up to ¥1.5 billion per year (For the base salary paid to Independent Directors, up to ¥180 million per year).
2) The annual amount for performance-linked bonus (short term) shall be up to 0.06% of consolidated net income (attributable to ownersof MC) for the relevant fiscal year.
3) The annual amount for performance-linked bonus (medium to long term) shall be up to 0.06% of the average consolidated net income(attributable to owners of MC) over the relevant fiscal year and subsequent three fiscal years.
4) The annual amount for stock-based remuneration linked to medium- to long-term share performances shall be no more than ¥600
million per year (with regard to number of shares, limited to 400,000 shares per year).
5) The annual amount for base salary paid to Audit & Supervisory Board Members shall be up to ¥250 million per year.

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Environment

SocialGovernanceCalculation Method for Performance-Linked Remuneration● Performance-linked bonus (FY2023)
1. Performance-linked bonus (short term)
Details of the calculation formulas are as follows.
(1) Upper limit on total payment
The upper limit will be the lower of i) ¥648 million or ii) the maximum total of individual payment amounts prescribed in (2) below.
(2) Individual payments
The specific calculation formula for each position is as follows (rounded to the nearest ¥1,000). However, the payment amount will be ¥0
if the profit falls below the profit threshold resolved ahead of time by the Board of Directors based on the consolidated capital cost(¥600billion).
President and CEO:(profit in FY2023 – ¥520 billion) × 0.025% + 0.35 (¥100
million)Senior Executive Vice President:(profit in FY2023 – ¥520 billion) × 0.01% + 0.14 (¥100
million)Executive Vice President:(profit in FY2023 – ¥520 billion) × 0.0075% + 0.105 (¥100
million)

Given the composition of Directors as of June 23, 2023, the maximum payment amount and its total for each position as Executive
Officers of eligible Executive Directors are as follows.
Position

Maximum payment amount

Number of persons

Total￥175 million

1

Senior Executive Vice President￥70 million

1￥70 million

Executive Vice President￥52.5 million

2￥105 million

Total

4

￥350 million

President and CEO

300￥175 million

Environment

SocialGovernance

2. Performance-linked bonus (medium to long-term)
The payment amount will be calculated as follows.
(Payment amount replacing the above performance-linked bonus (short term) calculation formula with the formula prescribed below) ×(Results of evaluations initiatives related to sustainability factors*) [80%～120%]“Profit in FY2023”→Replace with “the average of the profit for the three fiscal years, FY2023, FY2024, and FY2025.”“The payment amount will be ¥0 if the profit falls below the profit threshold resolved ahead of time by the Board of Directors based on
the consolidated capital cost (¥600billion).”→ Replace with “the payment amount will be ¥0 if the average of profit falls below the average profit threshold resolved ahead of timeby the Board of Directors based on the consolidated capital cost for the three fiscal years, FY2023, FY2024, and FY2025.”
The upper limit will be the lower of i) ¥648 million or ii) the maximum total of individual payment amounts prescribed below.
Given the composition of Directors as of June 23, 2023, the maximum payment amount and its total for each position as Executive
Officers of eligible Executive Directors are as follows.
Position

Maximum payment amount

Number of persons￥210 million

President and CEO

Total
1

￥210 million

Senior Executive Vice President￥84 million

1￥84 million

Executive Vice President￥63 million

2￥126 million

Total

4

￥420 million* Sustainablity factors over three fiscal years of the performance period in both quantative and qualitative terms evaluated at a newly establishedsubcommittee of the Governance, Nomination & Compensation Committee (the members of the subcommittee are the Chairman of the Board andIndependent Directors, to whom this form of remuneration does not apply, and the committee is chaired by an Independent Director.)● Stock-based remuneration linked to medium- to longterm share performances(1) Upper limit on total number of shares
The upper limit will be 400,000 shares of common stock (4,000 units of stock acquisition rights) per fiscal year. The number of shares
to be issued per stock acquisition right is 100.
(2) Conditions for exercise of stock acquisition rights
1) A stock acquisition rights holder may exercise all or a portion of their stock acquisition rights during the exercisable period, in
accordance with the stock growth rate in MC’s shares as a market condition (see “Market conditions” below).
2) A stock acquisition rights holder may not exercise the stock acquisition rights after 10 years from the day after losing the position
as either Director or Executive Officer of MC.

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SocialGovernanceMarket conditionsa) The number of stock acquisition rights that can be exercised by each position will be determined by the following formula.
・Initial number of allocated stock acquisition rights for the
position (based on position as of April 1, 2023) × vesting ratiob) Vesting ratio
The vesting ratio for stock acquisition rights varies, as shown below, depending on the growth rate in MC’s shares (see (c) below)
over the three-year period from the allocation date.
・Growth rate of at least 125% in MC’s shares: 100%・Growth rate between 75% and 125% in MC’s shares: 40% +(MC’s shares growth rate [%] – 75 [%]) × 1.2 (amounts less than
1% rounded to the nearest whole number)・Growth rate less than 75% in MC’s shares: 40%c) Growth rate in MC’s shares

Growth rate in MC’s shares = MC’s TSR (three years)/TOPIX
growth rate (three years)

MC’s TSR = (A + B)/C
A. Average closing price for shares of MC’s common stock on the Tokyo Stock Exchange on each trading day during the three months
preceding the month when the exercise period began (excluding days on which no transactions were made)B. Total amount of dividends per share of MC’s common stock from the date of allocation of stock acquisition rights to the date when theexercise period began
C. Average closing price for shares of MC’s common stock on the Tokyo Stock Exchange on each trading day during the three months
preceding the month when stock acquisition rights are allocated (excluding days on which no transactions were made)

TOPIX growth rate = D/E
D. Average closing price for TOPIX on the Tokyo Stock Exchange on each trading day during the three months preceding the monthwhen the exercise period began (excluding days on which no transactions were made)E. Average closing price for TOPIX on the Tokyo Stock Exchange on each trading day during the three months preceding the monthwhen stock acquisition rights are allocated (excluding days on which no transactions were made)302

Environment

SocialGovernanceConceptual Image of Payment Mix for Remuneration of Executive Directors

Note: The proportions shown above are based on certain values for consolidated earnings and the share price, and are for illustrative purposes only. The actual mix willvary depending on changes in Mitsubishi Corporation’s consolidated financial results and stock market conditions.

Guideline for Share Ownership (Standard)
MC sets the guideline for share ownership. The basic policy of the guideline is that Executive Directors and Executive Officers are
obliged to hold any shares including those acquired through the exercise of stock options while in office. Sales of such shares are
restricted until their aggregate market value exceeds approximately300% (500% for President and CEO) of the base salary.

Deliberation Process Regarding the Revision of Remuneration Package for
Executive Directors
MC resolved to revise the remuneration package for Executive Directors after continual deliberations by the Board of Directors and theGovernance, Nomination and Compensation Committee. The specific review process is as follows.

October 2018 Governance, Nomination and Compensation Committee
Remuneration-related issues (remuneration levels and composition, proportion of fixed and variable components etc.) were reviewed.
The basic approach to revisions of remuneration package was deliberated.

November 2018 Board of Directors’ Meeting
The results of the Governance, Nomination and Compensation Committee deliberations were reported.

February 2019 Meetings of Independent Outside Directors and Independent Outside Audit & Supervisory Board
Members*
The basic approach to revisions of remuneration package was confirmed.
Revised remuneration levels and composition, and remuneration governance-related issues were deliberated.

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Environment

SocialGovernanceMarch 2019 Governance, Nomination and Compensation Committee
The specific remuneration levels and composition were confirmed.
Specific proposals for breakdown of composition and calculation formulae (including related conditions) for variable remuneration
were deliberated.
Proposed disclosures relating to the revised remuneration package were deliberated.

April 2019 Board of Directors’ Meeting
The results of the Governance, Nomination and Compensation Committee deliberations were reported.

May 2019 Board of Directors’ Meeting
The proposed revisions to remuneration package were approved.

June 2019 Ordinary General Meeting of Shareholders
Based on the revisions to remuneration package, resolutions were approved at the Ordinary General Meeting of Shareholders
regarding revisions to the remuneration limits for Directors and introduction of stock-based remuneration linked to medium- to longterm share performances.

July and October 2022 Governance, Nomination and Compensation Committee
The basic approach to add sustainability factors to remuneration package was deliberated.

March 2023 Governance, Nomination and Compensation Committee
Proposed revisions to a part of remuneration package (Sustainability factors to performance-linked bonuses (medium to long term),
Revision of a formula for performance-linked bonuses (short term/medium to long term), and others) were deliberated.

May 2023 Board of Directors’ Meeting
Proposed revisions to a part of remuneration package (Sustainability factors to performance-linked bonuses (medium to long term),
Revision of a formula for performance-linked bonuses (short term/medium to long term), and others) were approved .

June 2023 Ordinary General Meeting of Shareholders
Based on the revisions to a part of remuneration package, the resolution was approved at the Ordinary General Meeting of
Shareholders.

304

Environment

SocialGovernanceDirectors’ and Audit & Supervisory Board Members’ Remuneration: Total Amounts
and Number of Eligible Persons in the Fiscal
Total remuneration amounts for Directors and Audit & Supervisory Board Members and numbers of eligible people are as follows.
(Millions of yen)

Title

Total
Remuneration

Eligible
PersonsIn-house
Directors
Independent
Directors

Annual deferral for
retirement
remuneration

Base salary

Total

1,805

9

554

5

150

6

150

-

Total
Remuneration
Eligible
Persons

Total

Total

Eligible
Persons

61-

Annual deferral for
retirement
remuneration

Base salary
Title

Eligible
Persons

Individual
performance
bonus

Total

Performancelinked bonus(short term)

Eligible
Persons

Total

Performancelinked bonus(medium to longterm)

Stock-based
remuneration
linked to
medium- to longterm shareperformances

Eligible
Persons

Eligible
Persons

Total

Total

5

220

5

385

5

385

5

199

-

-

-

-

-

-

-

-

Individual
performance
bonus

Performancelinked bonus(short term)

Performancelinked bonus(medium to longterm)

Stock-based
remuneration
linked to
medium- to longterm shareperformances

Eligible
Persons

Total

Eligible
Persons

Total

Eligible
Persons

Total

Eligible
Persons

Total

Eligible
Persons

Total

In-house Audit& Supervisory
Board
Members

174

3

174

-

-

-

-

-

-

-

-

-

-

Independent
Audit &
Supervisory
Board
Members

63

4

63

-

-

-

-

-

-

-

-

-

-

(Figures less than one million yen are rounded down)
Directors and 1 Audit & Supervisory Board Member who retired and 1 Audit & Supervisory Board Member who resigned during FY2022. Furthermore, there were 11
Directors (including 5 Independent Directors) and 5 Audit & Supervisory Board Members (including 3 Independent Audit & Supervisory Board Members) as of March
31, 2023.
The above figures of Individual Performance Bonuses represent the amounts recorded as provisions granted for in FY2022.
The above figures for Performance-linked Bonus (Short term) are determined based on the profit of 1,180.7 billion yen for FY2022, based on a formula confirmed inadvance by the Governance, Nomination and Compensation Committee and resolved by the Board of Directors.
The above amounts for Performance-linked Bonus (Medium to long-term) are paid on an average of the profit for FY2022 to FY2024, but as this cannot be decided
currently, the amount shown is provisions for such bonuses as of FY2022. The actual amount paid for FY2022 will be based on a formula confirmed in advance by theGovernance, Nomination and Compensation Committee and resolved by the Board of Directors, and the amount for FY2022 will be disclosed in the Fiscal 2024
Business Report and Annual Securities Report.
The actual amount paid for FY2020 was based on a formula confirmed in advance by the Governance, Nomination and Compensation Committee and resolved by the
Board of Directors. The amount was paid on the average of 763.6 billion yen in profit for FY2020 to FY2022, totaling 254 million yen for 5 Directors in FY2020.
The actual amout paid for FY2021 will be paid on an average of the profit for the fiscal years ended March 31, 2022 to 2024, but as this cannot be decided currently, a
total of 385 million yen for 5 Directors in FY2021 was recorded as provisions in FY2022 but was not included in the table. The actual amount paid for FY2021 will be
disclosed in the Fiscal 2023 Business Report and Annual Securities Report.
The above figures for Stock-Based Remuneration linked to Medium- and Long-term Share Performances (stock options with market conditions) is the amount recorded
as an expense granted for FY2022. In regard to Stock-Based Remuneration linked to Medium- and Long-term Share Performances, the number of exercisable shares
will be determined according to the growth rate in MC's shares over three years from being granted, based on a formula confirmed in advance by the Governance,
Nomination and Compensation Committee and resolved by the Board of Directors.
In addition to the above, Mitsubishi Corporation paid executive pensions to retired Directors and Audit & Supervisory Board Members. The amounts paid in FY2022
were as follows:
The retirement bonus system, including executive pensions for Directors and Audit & Supervisory Board Members, was abolished at the close of the Ordinary General
Meeting of Shareholders held on June 26, 2007.
Mitsubishi Corporation paid ¥80 million to 49 Directors (Outside Directors were ineligible for payment).
Mitsubishi Corporation paid ¥3 million to 4 Audit & Supervisory Board Members (Outside Audit & Supervisory Board Members were ineligible for payment).

305

Environment

SocialGovernanceNames, Titles, Total Amounts of Consolidated Remuneration and Amount by Type ofRemuneration for Each Director and Audit & Supervisory Board Member
Remuneration amounts for Directors and Audit & Supervisory Board Members whose total remuneration was ¥100 million or more areshown in the table below.
Amount by Type of Remuneration (Millions of yen)

Name

Title

Total consolidated
remuneration(Millions of yen)

Annual deferral
for retirement

Basesalaryremuneration*1

Individual
performance
bonus

Performancelinked bonus(short term)

Performancelinked bonus(medium to longterm)*2

Stock-based
remuneration
linked to
medium- tolong-term
share
performances*3

Takehiko Kakiuchi

Director

263

263

0

0

0

0

0

Katsuya Nakanishi

Director

655

91

27

105

175

175

81

Norikazu Tanaka

Director

203

32

7

34

52

52

25

Yasuteru Hirai

Director

218

42

9

27

52

52

33

Yutaka Kashiwagi

Director

221

43

9

30

52

52

33

Yuzo Nouchi

Director

199

32

7

30

52

52

25

(Figures less than one million yen are rounded down)

None of the above Directors receive remuneration as a Director or an Audit & Supervisory Board Member of a consolidated
subsidiary.
*1 The amount of annual deferral for retirement remuneration is accumulated each year as a fixed amount of remuneration for the exercise of duties by
each Director over one year. It is paid to the Director after his or her retirement.
*2 The amount of Performance-linked Bonus (Medium to long-term) are paid on an average of the consolidated net income for FY2022 to FY2024, but as
this cannot be decided currently, the amount shown is provisions for such bonuses as of FY2022, and differs from the actual paid amount.The actual
amount paid for FY2022 will be based on a formula confirmed in advance by the Governance, Nomination and Compensation Committee and resolvedby the Board of Directors, and the amount for the fiscal year for FY2022 will be disclosed in the Fiscal 2024 Business Report.The actual amount paid for
FY2020 was based on a formula confirmed in advance by the Governance, Nomination and Compensation Committee and resolved by the Board of
Directors. The amount was paid on the average of 763.6 billion yen in profit for FY2020 to FY2022, 115 million yen to President & CEO (Mr Takehiko
Kakiuchi) and 34 million yen respectively to 4 Executive Vice Presidents (Mr Kazuyuki Masu, Shinya Yoshida, Akira Murakoshi, and Masakazu
Sakakida) in FY2020. The actual amout paid for FY2021 will be paid on an average of the profit for the fiscal years ended March 31, 2022 to 2024, but
as this cannot be decided currently, 175 million yen to President & CEO (Mr Takehiko Kakiuchi) and 52 million yen respectively to 4 Executive Vice
Presidents (Mr Kazuyuki Masu, Akira Murakoshi, Yasuteru Hirai and Yutaka Kashiwagi) in FY2022 but was not included in the table. The actual amount
paid for FY2021 will be disclosed in the Fiscal 2023 Business Report.
*3 The amount of Stock-Based Remuneration linked to Medium- and Long-term Share Performances is the amount recorded as an expense in theaccounting treatment for that fiscal year and differs from the actual amount received from the exercise or sale of stock options. In regard to Stock-BasedRemuneration linked to Medium- and Long-term Share Performances, the number of exercisable shares will be determined according to the growth ratein MC's shares over three years from being granted, based on a formula confirmed in advance by the Governance, Nomination and Compensation
Committee and resolved by the Board of Directors. Under the conditions for exercise of stock acquisition rights, the starting date of the exercise period
for stock acquisition rights had not arrived as of March 2023.

Significant Employee Salaries of Directors and Audit & Supervisory Board Members
Serving Concurrently as Employees
None of MC’s Directors and Audit & Supervisory Board Members serve concurrently as employees.

Employee Salaries
MC has a performance-linked bonus system for non-executive employees, including some fixed-term contract employees.

306

Environment

SocialGovernance

GovernanceCompliance
PolicyStructure

Initiatives

Performance

PolicyWithin MC, "compliance" is defined as an observance of laws, rules, regulations, international standards and internal regulations, as well
as respect for generally accepted standards for the conduct of business. In addition to 1) observance of laws and regulations, all officers
and employees at the MC Group must also 2) respect generally accepted standards for the conduct of business. Officers and employees
must consider at all times what these standards entail in the present-day context and in the applicable regions, as there are no clearlystated rules in this regard. Officers and employees are aware of the high expectations of society and aim to ensure that the MC Groupremains trusted by society.

307

Environment

SocialGovernance

Structure
Investigations of Compliance Violations and Response Systems
Compliance Framework
At MC, the Compliance Committee and the Compliance Officer systems play important roles in the implementation of complianceprograms. As an advisory body to the Chief Compliance Officer, the Compliance Committee reports on and discusses major complianceincidents that occur within the MC Group, leading to the regulation and communication of appropriate measures. The Committee is led
by the Chief Compliance Officer, who is appointed by the President, and meetings are held twice a year, in principle. Matters reported toand discussed at the Compliance Committee are reported to the Executive Committee and the Board of Directors once a year. The Chief
Compliance Officer is in charge of all compliance matters of the entire MC Group, and is responsible for planning and implementing
compliance programs. The Chief Compliance Officer also has the authority to conduct necessary investigations in the event of a breachor potential breach of compliance, and can also order the suspension or change of business activities to prevent or remedy a breach or
potential breach. In addition, MC has senior executives in the corporate section and in each Business Group at the Head Office asCompliance Officers. Each Compliance Officer has the authority to implement compliance programs in a manner tailored to thecharacteristics of each section and Group. Under the supervision of the Chief Compliance Officer, each Compliance Officer, who is amanagement executive, implements various measures to prevent recurrence of violations, and is responsible for improving ethicalconduct and preventing bribery and corruption.
Compliance Framework308

Environment

SocialGovernance

Response Systems for Individual Cases
Officers and employees of MC are required to report to or consult with their superiors/managers or other personnel relevant to thematter, including compliance personnel, if they become aware of a breach or potential breach of compliance. The managers oforganizational bodies must in turn report to or consult with the Compliance Officer of their section or Group, who is then required toreport to the Chief Compliance Officer. Furthermore, cases of violations and the status of resolutions reported to the Chief Compliance
Officer, including those of Group companies, are also reported to Audit & Supervisory Board Members. The relevant Compliance Officer
must conduct necessary investigations of the reported or consulted matter with the due care of not infringing the human rights anddignity of concerned parties, and will formulate and implement necessary preventive measures and remedies. The result of theinvestigations and preventive measures/remedies implemented by the Compliance Officer is reported to the Chief Compliance Officer
and used to plan and implement compliance programs for the entire MC Group as lessons learned from the matters.
In addition, MC has a dedicated organization within the Legal Department called the "Administration Office for the Compliance
Committee" which supports the Chief Compliance Officer in handling compliance cases, and both plans and implements MC Group
compliance programs in cooperation with each Compliance Officer and the relevant departments.

Internal Rules and Regulations
MC’s core philosophy is the Three Corporate Principles. Beneath this are the Corporate Standards of Conduct, which govern MC as acompany, and the Code of Conduct for Executives and Employees, which applies to each executive and employee. The Code of
Conduct's basic philosophy is expressed as follows: "In conducting business, MC executives and employees shall comply with laws andregulations, international agreements, and internal rules, observe business manners, and act responsibly in accordance with social
norms." At MC, compliance is not limited to simply complying with laws. It is also based on the principle that any action that violatessocial norms, even if it is not illegal, should not be conducted.
In order to promote the Code of Conduct internally, MC has also printed it in the Pocket Employee Handbook. In addition to the specificpoints to uphold, instructions on how to access the Meyasubako (Compliance Mail Box and Helpline) for consultation on complianceissues are also listed. MC executives and employees can check the content at any time by sending icons to company cell phones or
posting a PDF on the company website. Furthermore, an e-learning program that included case studies related to the Code of Conduct
is conducted every year. At the end of the e-learning program, all officers and employees submit a written pledge saying that they willcomply with the Code.
Mitsubishi Corporation Internal Rules and Regulations

Reference:

Mitsubishi Corporation Code of Conduct

In order to have an effective compliance program in place and to ensure accessibility to MC's compliance philosophy and rules, MC hasestablished various compliance-related internal regulations under the Three Corporate Principles, the Corporate Standards of Conduct
and the Code of Conduct. These internal regulations are reviewed every year to reflect amendments to the laws and regulations andchanges in the business environment and other conditions surrounding the MC Group.

309

Environment

SocialGovernance

Major internal rules and regulations relating to compliance are listed below:

Basic Rules for the Organization and Implementation of ComplianceStandard for Internal Reporting
Security Trade Control Rules and Regulations
Standard for Sanction Management
Trade Procedure Management Standards
Standard for the Prevention of Cartels
Standard for Transaction Pursuant to the Law on the Prevention of Delays in the Payment of Subconstracting Charges
Standards for the Prevention of Unfair Stock Trading
Code of Prohibition against Improper Payments or Other Types of Benefits
Standard for Entertainment
Standard for the Management of Antique Trading
Permission Approval and Notification Management Standards
Standard for the Management of Chemical Substances
Consumer Products Import and Sales Standards

310Environment

SocialGovernanceMonitoring System
Monitoring of Individual Cases
All reports regarding the facts, causes and preventive measures and remedies of each compliance incident are shared with the
Administration Office for the Compliance Committee, and are used for conducting case analyses and risk assessment, and planningcompliance programs and measures.

Employee Awareness Survey
The Employee Awareness Survey aims to establish and improve the foundation of MC’s organizational culture, including the level ofcompliance awareness. MC has continued to conduct its Employee Awareness Survey since 2019. This survey integrates the content ofMC’s Compliance Awareness Survey, which began in FY2008, with its previous employee awareness survey .Implemented annually
since FY2022, this surveyis viewed as a key initiative for assessing and evaluating MC’s current status, as well as for making
improvements to the organizational climate in terms of both human resources and organization, because it is able to confirm the degreeof compliance awareness and provision of an ethical workplace environment at the individual officer and employee level. Through thissurvey, we regularly monitor the awareness level and status of compliance programs, implement measures to resolve issues identified,and confirm the effectiveness of these measures in the next survey.

Responses to Risk Factors by Each Business
MC conducts periodic self-assessments of the compliance risks to which special attention should be given for each of its businesses andsubsidiaries, such as risks relating to anti-trust violations, bribery and corruption, and occupational health and safety, taking into
consideration industry, product, and regional characteristics. Compliance Officers of each Business Group analyze risk factors that
require special attention related to their Business Group and implement risk response measures. Each subsidiary also appoints a person
responsible for compliance matters (i.e. Compliance Officer of subsidiaries), who analyzes risk factors related to respective businessareas, and implements risk response measures.

PDCA Cycle
Utilizing the PDCA cycle, MC implements necessary measures, such as conducting various seminars and adopting regulations, toaddress the compliance risks identified from the results of the various surveys, reports and monitoring, as well as taking into
consideration the opinions of the Compliance Officer of each Business Group. The results are further monitored, and an analysis of theresults is reflected in the further identification and evaluation of risks. The aim is to improve the awareness and knowledge of complianceamong all officers and employees by repeatedly and rigorously educating and training them.

311

Environment

SocialGovernanceInitiatives
Initiatives for Preventing Corruption
MC has established the “Code of Prohibition against Improper Payments or Other Types of Benefits” in order to prevent provision of
improper benefits to domestic and foreign public officials, etc. (including persons who are deemed to be public officials under applicablelaws, etc.), and prevent conducts from being seen as suspicious or untrustworthy by third parties. MC also complies with the anti-bribery
laws and regulations of various countries, including Japanese criminal law and the Unfair Competition Prevention Act, the U.S. Foreign
Corrupt Practices Act and the U.K. Bribery Act. The MC Code of Conduct stipulates definitions and compliance requirements for bribery,
conflicts of interest, and other forms of misconduct. No bribery risks have as yet been assessed as high risk. Furthermore, MC hasestablished a strict anti-corruption system and pre-approval process by setting detailed guidelines regarding the provision ofentertainment or gifts to public officials, etc., and regarding the appointment of agents/intermediaries, etc. In addition, MC hasestablished internal anti-corruption regulations requiring detailed due diligence when accepting workplace experience training for
relatives of public officials, etc., as well as providing donations to government and public officials. We have also introduced guidelines to
conduct anti-corruption due diligence on our business and other partners. MC continuously and periodically reviews and improves its
internal rules and regulations taking into account the trends of the enforcement and proceedings brought by anti-corruption regulators,
and anti-corruption programs/measures taken by other companies.
In 2016, aiming to build a more effective anti-corruption system, MC conducted a thorough assessment by external experts regarding its
entire anti-corruption systems. Utilizing the experts’ evaluations and recommendations, MC is committed to continuously improving its
anti-corruption systems and ensure that they operate effectively. Moreover, in 2016, MC created the Anti-Corruption Handbook toprovide accurate information about anti-corruption, including information about laws and regulations, and enforcement cases relating to
the bribery and corruption in major countries. The handbook also explains MC’s programs, systems and other initiatives to prevent
bribery and corruption. The handbook has been distributed throughout the MC Group. In FY2022, the handbook is being updated andmade available on the Company website.
In 2019, MC adopted a risk-based anti-corruption system that devotes appropriate attention and resources depending on the types andscales of transactions and the level of corruption risks in applicable countries, and revised relevant guidelines accordingly to build asystem to prevent bribery/corruption on a consolidated basis. Appropriate approval procedures and record management are carried out
in accordance with these rules and guidelines, and the rules and guidelines are reviewed at the end of each fiscal year and revised asnecessary. At the time of the review in FY2020, MC clearly stated that interested parties are excluded from the investigation ofwhistleblowing cases and clarified the definition of “public officials” etc. and the definition of “improper benefit” in anti-bribery cases.
Through the implementation of these rules and guidelines, MC is working to deter compliance violations and limit opportunities forunethical behavior, such as prohibiting contact with related public officials, etc.
In FY2022, there were no bribery or corruption cases which had a significant impact on the MC Group.

312

Environment

SocialGovernanceInitiatives in Selecting and Managing Agencies, Intermediaries, etc.
In addition to preventing corruption by officers and employees, MC established internal regulations to prevent corruption by any agents,
consultants, intermediaries, etc. retained by MC (hereafter collectively referred to as “Agents”). The internal regulations require officers
and employees to obtain prior approval from the relevant Compliance Officer to retain suitable Agents. From FY2019, MC introduced
new internal approval procedures for retaining Agents on the basis of the risk based approach depending on the nature of the relevant
services to be provided by the Agents, the size and purpose of projects, and the level of risks, including the level of the corruption risk of
the relevant countries. These procedures are reviewed annually.
Agents are categorized into four categories based on the nature of the services to determine the level of due diligence on the Agentson the points below.
Agents shall have no relationship with any public officials who would be able to influence on the business transactions and dealings
which MC seeks, shall have good track record on the compliance matters in the past, have necessary qualifications and havecapabilities to provide the services.
The adequacy of the amount of remunerations for the services to be paid to Agents shall be thoroughly assessed.
In the event that an Agent subcontracts its services to a third party, additional appointment procedures will be required to theappointment of such third party as well.
Contracts with Agents shall include clauses that prohibits the provisions of improper benefits to public officials, etc., by the Agents,
and the Agents shall be made aware of MC Group’s Anti-Corruption Guidelines.

Mitsubishi Corporation Group’s Anti-Corruption Guideline
In 2015, MC established and published “Mitsubishi Corporation’s Anti-Corruption Guideline” in order to inform business partners of MC’s
basic principles related to the prevention of corruption. In the Guideline, MC explains its anti-corruption policies and initiatives as "MC'scommitment" and expects business partners to adhere to MC’s anti-corruption initiatives. In April 2019, in order to further strengthen its
anti-corruption initiatives, MC expanded the scope of the Guideline to cover the entire MC Group and announced the new “Mitsubishi
Corporation Group’s Anti-Corruption Guideline.” The new Guideline not only includes commitments of the MC Group, but also requests
that all business partners and clients (including suppliers) of MC Group prohibit bribery, inform anti-corruption policies, and cooperatewith investigations when there are concerns about violations.
Reference:

Mitsubishi Corporation Group’s Anti-Corruption Guideline

Cases of Corruption
In FY2022, there were no corruption cases detected in MC. As a result, no fines or financial penalties relating to the corruption wereincurred.

313

Environment

SocialGovernanceInternal Whistleblowing System
MC has established internal whistleblowing systems, known as the “Meyasubako (Compliance Mail Box and Helpline)” (①). Thesesystems are used to report or consult on any compliance-related questions or issues, including workplace misconduct and harassment,
violations of laws and regulations, as well as bribery and corruption. Reports to the Meyasubako are sent directly to the Administration
Office for the Compliance Committee. MC has also established whistleblowing reporting routes to the Internal Audit Dept. (②) and the
Audit & Supervisory Board Members (③). In addition, MC has established a whistleblowing reporting route connecting to outside legal
counsel (called the “Bengoshi Meyasubako (Outside Legal Counsel Compliance Mail Box and Helpline)” (④) for officers and employees
who wish to remain anonymous. While the outside legal counsel will confirm whether the informant is an officer or employee of MC, they
will not reveal the informant’s name or the section to which the informant belongs to the Administration Office for the Compliance
Committee without the informant’s consent. For officers and employees of MC Group companies, there is another whistleblowing
reporting route called the “MC Group Legal Counsel Compliance Mail Box and Helpline” (⑤). Furthermore, in 2016, MC established a
new whistleblowing system for anti-trust and corruption issues called “Let Us Know System (LUKS)”, which is available to officers andemployees of MC and its domestic and overseas subsidiaries 24 hours/day and 365 days/year in multiple languages (Japanese,
English, French, Spanish, Chinese, Thai, Indonesian, etc.) (⑥).
Our internal regulations clearly stipulate that we will protect the anonymity and confidentiality of the informant and the report content,
uphold the informant’s rights, and prohibit retaliation or disadvantageous treatment towards the informant. Violation of these regulations
may result in disciplinary action. Moreover, when investigating the reported matters, MC is sure to avoid any conflicts of interest. MC has
also established a system to comply with the whistleblower protection laws of each country, including the Whistleblower Protection Act inJapan.
After receiving details of a whistleblowing report, the Administration Office for the Compliance Committee will share the information onlywith limited number of personnel who need to know the content to conduct the investigation and take related action. Every year, we
invite outside instructors to provide training to those in charge of investigating and responding to whistleblowing reports on how tohandle and investigate the reports and points to keep in mind. Although we have set up multiple whistleblowing reporting routes in
FY2020, we engaged external experts to assess the effectiveness of our whistleblowing systems and their operation. In FY2022, in
accordance with the revision of the Whistleblower Protection Act, MC revised its whistleblower standards, distributing a response manual
to those in charge of investigating and responding to whistleblowing cases, and conducting video training for all officers and employees
in Japan. With regard to management-level harassment training, MC conducts internal training aimed at general managers, teamleaders and other levels. MC is working to prevent harassment by introducing case studies. Furthermore, each of the following is wellpublicized internally: (1) the prohibition of harassment is stipulated in the Code of Conduct; (2) basic policies, pamphlets and otherresources have been produced to prevent harassment; and (3) the Whistleblowing Systems as well as the Human Rights Consultation
Desk in the Human Resources Department have been established.
In FY2022, there were no whistleblowing reports which had a significant impact on the management of the MC Group.

314

Environment

SocialGovernanceCompliance Framework

Number of reports received through Whistleblowing Systems
In FY2022, MC received a total of 80 reports, including Whistleblowing Reports to MC Group companies, of which 44 were related toharassment and 36 were related to other issues (occupational health and safety, labor management, etc.).
In FY2022, no reported cases had a significant impact on the management of the MC Group.
Number of reports received through Whistleblowing Systems

315

Environment

SocialGovernanceSupervision by the Board of Directors
Every year, the Board of Directors supervises the development of relevant internal rules and regulations including the Code of Conduct
for Officers and Employees, the progress of various training programs compliance matters such as anti-corruption initiatives, the results
and status of compliance violation cases, and the compliance programs and measures to be implemented in the current fiscal year. In
addition, both Independent Directors and Independent Audit & Supervisory Board Members receive reports twice a year regarding
compliance activities, so that they can provide more effective supervision from their external perspectives.

316

Environment

SocialGovernance

Performance
Results of Compliance Training
MC conducts in-house training programs on a companywide basis according to each level in the organization. Compliance-related
training is offered on individual topics such as antitrust laws, the Subcontract Act, prevention of bribery and corruption including antibribery laws, and labor management. In FY2022, MC held a total of more than 100 in-house legal and compliance seminars worldwide,with a cumulative total of approximately 6,000 participants. Furthermore, tailored seminars are held for each Business Group and region.
MC has also created an e-learning program related to the MC Code of Conduct based on the latest developments and case studies on
topics such as harassment, bribery and whistleblowing systems. MC reviews the permeation and effectiveness of compliance based on
the MC Code of Conduct by requiring all MC officers, employees, advisors, part-time employees, secondees and temporary staff tocomplete this e-learning program on an annual basis.

Compliance Discussions
In 2013, MC began holding compliance discussions in which small groups of employees in each workplace discuss compliance issues
that could occur in the workplace as well as other day-to-day concerns. These discussions serve as a means of supplementing
conventional training, which tends to be a one-way form of communication, and improving the compliance awareness of every officer
and employee. By facilitating these types of discussions about familiar topics in each workplace, every employee will recognize thatcompliance is something that is connected to them personally, which will in turn gradually increase their compliance awareness. MC has
been conducting the same discussions at least once a year, with the participation of essentially all employees at all levels of every
internal organization, including overseas offices since 2013, and MC has also expanded this initiative to over 100 domestic andoverseas subsidiaries.

Distribution of Handbook for Officers and Employees
In addition to providing training opportunities and the e-learning program, MC has created a Compliance Handbook that presents acollection of the latest case studies in a Q&A format. The aim of this booklet is to resolve any doubts about the compliance duties ofofficers and employees that they may have on a daily basis, and MC distributes the booklet to all officers and employees. The
Compliance Handbook was updated in FY2022 and is available through the MC intranet. MC also recommends and practices using thehandbook as a reference for compliance discussions.

Number of Compliance Violations
The total number of violations at the Head Office, domestic and overseas branches and offices, and domestic and overseas subsidiaries
and affiliated companies that were reported in FY2022 was 159. There were no compliance violations that had a significant impact on
the management of the MC Group.

Provisions Concerning Legal Violations and Litigation
If MC presently owes debt (legal or constructive) as a result of past incidents, is likely to be required to pay such debt, and a reliable
estimate of the amount of such debt (penalties, settlement amount etc.) can be made, MC must record provisions for such debt. In
FY2022, there were no significant provisions requiring separate disclosure in its financial statements.

317

Environment

SocialGovernanceTax Transparency
MC conducts tax affairs in accordance with the following basic principles.
1. Compliance with laws and regulations
MC is committed to comply with the Tax Laws, and not to pursue tax avoidance which deviates from the intention of the Tax Laws in
the relevant jurisdictions.
2. Transparency
MC is committed to report and disclose the tax related information properly, in accordance with the Tax Laws, the accounting
principles and the other applicable international rules (e.g. OECD Guidelines).
3. Relationships with tax authorities
MC seeks to maintain mutual understanding with the local tax authorities whenever necessary, so that MC and its subsidiaries should
be subject to proper tax administration in the relevant jurisdictions where they operate.

318

Environment

SocialGovernance

GovernanceRisk Management
PolicyRisk Management System

Crisis Management on a Consolidated Basis/ Business Continuity Management (BCM)

PolicyMC has a basic policy of identifying various risks involved with its business activities, classifying them by their characteristics, andmanaging them in order to maintain and improve its financial soundness and corporate value. In particular, risks that significantly affect
MC’s financial position and social standing are identified and managed on a consolidated basis.

319

Environment

SocialGovernanceRisk Management System
Overview
MC maintains the following Risk Management System under the aforementioned policy.
■ The Executive Committee, a management decision-making body, determines basic policies on risk management as well as individual
and integrated risk management items. It also makes decisions about advancing individual projects, and presents matters for the
Board of Directors’ agenda based on prescribed standards.
■ MC has designated categories of business activity risk corresponding to the details and scale of each risk, including credit, market,
business investment, country, compliance, legal, information management, environmental and natural disaster-related risks, and has
designated directors in charge and specified departments responsible for each category.
■ MC has established and maintains an overall system to review individual projects and internal systems in relation to specific types ofrisk through deliberative bodies under the Executive Committee including the Investment Committee, the Sustainability & CSR
Committee, the Compliance Committee and the Human Resources Development (HRD) Committee. Matters deliberated by thesecommittees are presented or reported by the director in charge to the Executive Committee chaired by the President and CEO.
■ In order for the Board of Directors to effectively supervise specific types of risk, a system has been established whereby mattersdeliberated by each committee are reported to the Board of Directors as necessary. Each risk is then broadly classified into financial
and non-financial risks, with the effectiveness of each risk management system reviewed and monitored by the Board of Directors ona regular basis each year.
* The Internal Audit Department, which reports directly to the President and CEO, is separate and independent from the directors in charge andresponsible departments mentioned above and handles auditing and risk management.

■ With respect to individual projects, personnel responsible for the applicable department in charge of a project make decisions within
the scope of their prescribed authority after analyzing and assessing the risk-return profile of each project in accordance
withcompanywide policies and procedures. Projects are executed and managed on an individual basis in accordance with thisapproach. Further, in response to the progress of projects or changes in the external environment, MC conducts periodic verificationof risk-return profiles.
In addition to managing risk on an individual project basis, MC assesses risk on a consolidated basis with respect to risks that arecapable of being monitored quantitatively and manages these risks properly, making reassessments as necessary.
Risk Type

Director in Charge

Credit risk, market risk, business investment risk

Yuzo Nouchi

Duties Overseen
Corporate Functional Officer, CFO

Information management risk, legal risk, compliance risk, employee safety risks
such as natural disasters/terrorism/emerging infectious diseases, etc, business
continuity risk

Yutaka Kashiwagi

Corporate Functional Officer, IT, CAO, Chief Compliance
Officer, Officer for Emergency Crisis Management
Headquarters

Environmental risk

Kenji Kobayashi

Corporate Functional Officer, CSEOCountry risk

Tetsuya Shinohara

Corporate Functional Officer, CRO

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Environment

SocialGovernanceRisk Management Framework
Supervising Organization

Matters for Supervision

Business Investment Management
Department

Business Investment risk and market risk (Investment Return Valuation System, new business investments, actions forexisting business investees, transactions by business investees, granting loans/guaranty, acquisition and disposal of fixed
assets, mikoshi, acquisition and disposal of non-affiliated investments, etc.)

Sustainability Department

Climate risk, etc.

Corporate Administration Department(Security & Crisis Management Office)Risk of natural disasters, etc. (risks related to employee safety, including natural disasters, terrorism, new infectious
diseases, and business continuity risks)

Legal Department

Compliance risk (litigation/government investigations, laws and regulations, scandals/ compliance issues)

Global Risk & Insurance Management
Department

Country risk

Finance Department

Credit risk, Market risk (foreign exchange, interest rate, stock price,foreign exchange mikoshi*, etc.)

Mitsubishi Corporation Financial &Management Services (Japan) Ltd.

Credit risk (rating systems, conclusion of contracts, trade credits, bailment, payment extension, etc.)

The above list excludes those items that are related to major risks.

* The Structured Finance, M&A Advisory Dept. also manages foreign exchange mikoshi.

Responding to Business Investment Risk
To manage business investment risk properly, MC has established a screening process to review and make decisions on new, existing,re-profiling and each other type of projects.

New projects

Application forpolicy/Application for
implementation

Narrow down new investment and finance proposals by comprehensively evaluating quantitative
aspects in terms of the invested capital and its return determined on the basis of the characteristics
of each business, in addition to evaluation of qualitative aspects, including consistency with thebusiness strategy of each Business Group, as well as risk locations and countermeasures

Existing projects

Business plan formulation

Once a year, review subsidiaries and affiliates’ management issues and initiatives as well as MC’sfunctions and business life cycle

Replacement projects

Review regarding continuationof investments

Conduct qualitative and quantitative evaluations of new investment and finance proposals basedon the priority order of Business Group strategies and promote a healthy business metabolism

321Environment

SocialGovernanceCrisis Management on a Consolidated Basis/ Business Continuity
Management (BCM)
Structure and Concept
Crisis Management Structure on a Consolidated Basis
MC has built up a structure for securing the lives and safety of employees and their families as we respond on a consolidated basis to all
crises that impact our profit and business continuity (all-hazard approach) by linking together each Section/Group/Regional and National
Crisis Management Offices under the management and supervision of the Emergency Crisis Management Officer.

* As of January 1, 2024

All-Hazard Approach
Based on the all-hazard approach, MC has built up an internal structure that anticipates all kinds of risks, such as major natural
disasters, acts of terrorism, riots, emerging infectious diseases, supply chain disruptions, legal transgressions, and cyber incidents, andetc. Under usual conditions, in cooperation with the organizations in charge (related corporate staff departments and Section/Groups),
we build and establish various crisis management measures and structures needed in the event that a crisis does occur, so that we canensure the safety and ascertain the status of all concerned as part of our initial response, and then act promptly to maintain and recover
the infrastructure necessary for business continuity.
In particular, for a serious incident impacting the lives and safety of our employees, as well as continuity of critical business operations,
we have a structure in place in which we will respond under the companywide direction of the Emergency Crisis Management Officer, in
accordance with our Business Continuity Management (BCM) process on a consolidated basis.

* While companywide action to deal with serious incidents shall be taken under the direction of the Emergency Crisis Management Officer, compliancerelated incidents shall be dealt with under the direction of the Chief Compliance Officer.

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Environment

SocialGovernanceStatus of Initiatives in Normal Conditions
Crisis Management
Even in normal times, MC makes necessary preparations in anticipation of natural disasters, acts of terrorism, riots, labor disputes,
accidents and any other crises in Japan or overseas that could affect the safety of our employees or the continuity of our earnings,
assets and businesses.
Specifically, in addition to our various frameworks, regulations, manuals and systems, we conduct a number of initiatives to increase
their effectiveness. As well as organizing earthquake simulation training at the Emergency Crisis Management Headquarters and safety
confirmation drills on a consolidated basis, we have also established training on crisis management and safety measures for employees
assigned to new posts in order to raise employee awareness.
(Examples of main crisis management initiatives)
Internal Rules andRegulations

BCP / Manual

Other Specific Measures

In-House Education and Training,etc.

Crisis Management Policy
CommonJapan

MC Group Crisis
Management Guidelines
Development of IT systems to
implement various responses incase of emergencies－Safety confirmation for officers
and employees－Emergency communication tools－Safety confirmation of officers andemployees / facility damage at MC
Group companies

Standard for Japan Crisis
Management

Emergency Crisis
Response Headquarters
ManualOverseas

Standard for Overseas
Crisis Management

Maintenance of stockpiles (food,etc.)

EOC/EOC Support
Headquarters Manual

Individual alerts/travel restrictions
for overseas business trips

BCP (head office,domestic/overseas offices)

Overseas safety surveys

Emerging Infectious
Disease Response Manual

Establishment of a safety
confirmation IT system for overseas
workers and overseas businesstravelers (including some MC Group
companies)

Earthquake simulation training
EOC drills
Safety confirmation training(consolidated basis)
Desktop exercises (consolidated
basis)
Crisis Management Orientation for
Employees

Overseas Crisis Management
Orientation for Employees
Desktop exercises (consolidated
basis)

Working from Home (WFH)
Emerging
infectious
diseases

Provision of stockpiles (masks,
disinfectant, etc.)

Standard for Emerging
Infectious Diseases

Various measures to be taken in theoffice and during commuting/work

Various warning notices
Display of in-house awarenessraising materials* MC also provides individual support to Group companies* EOC stands for Emergency Operation Center. In the event of a major disruption to the functions of the head office, the EOC, which is responsible for first
response operations, has been established at a location separate from the head office to act in place of the Emergency Crisis Management
Headquarters.

Business Continuity Management (BCM)In FY2018, MC adopted “Business Continuity Management (BCM)” for its core business companies (selected from among MC Group
companies) to establish and strengthen our consolidated framework designed to equip us with the business continuity capabilities
needed to respond appropriately to major crisis situations.
BCM refers to comprehensive management activities based on an all-hazard risk and impact analysis that takes into account thebusiness characteristics (business type and location) of the operating company, which include the formulation of initial response and
BCP, establishment of a structure, and implementation of an ongoing PDCA cycle through education and training.

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Environment

SocialGovernance

Overview of BCM Initiatives

Business Impact Analysis Framework
We conduct analyses of the “cause incidents” that disrupt core operations and trigger “result incidents,” while taking into consideration
the characteristics of operations at each company.
Cause incidents:
Natural disasters, infectious diseases, technology-related, external incidents, internal faults, legal issues, third-party related
Result incidents:
Human resources (death/unconfirmed safety, inability to report/commute to work), physical resources (damage ofmanufacturing/distribution or other facilities), supply chains (disruption of distribution channels, disruption of material/fuel supply),
information (breakdown of IT systems or damage to electronic data, data manipulation/alteration, information leakage), reputation(product or service quality issues, environmental problems, administrative penalties, suspension of business), money (suspension of
cash withdrawals, remittances and/or payments)

BCM Follow-Up Structure
Based on the premise that MC Group companies should develop their own BCM systems, we also provide lateral support by developing
BCM development tools, such as BCM guidebooks and BCP samples, and by holding BCM Re-examination / BCM Dialogue.
Internal Rules and Regulations

Guidelines

Lateral BCM Development Support for MC Group Companies
BCM development status self-assessment tools (heat maps, checklists)

Business Continuity Management Policy
Standard for the Business Continuity Management

MC Group BCM Guidebook

BCM development plans
BCM development tools (first response manual / BCP samples, etc.)
BCM Re-examination / BCM Dialogue, etc.

Implementation Status Monitoring
With regard to the above-mentioned crisis management and BCM initiatives, we are working to improve our crisis management andbusiness continuity capabilities by monitoring and providing various types of feedback, including implementation status at Group
companies, using the business plans and other documents from each company (unlisted subsidiaries).

Preparations for Large-Scale Natural Disasters
In the event of a Tokyo Inland Earthquake, MC has established, based on a certain damage scenario derived from data published by thegovernment and local authorities, a system that enables the launch of an Emergency Crisis Management Headquarters (including
remote response), safety confirmation of officers and employees / facility damage at MC Group companies on a consolidated basis.
Various stockpiles have also been arranged. In addition, we are preparing for a Tokyo Inland Earthquake by drafting and updating BCPs
and manuals in each organization, conducting earthquake simulations and other trainings on a regular basis, and reviewing areas for
improvement. In addition, through the promotion of BCM on a consolidated basis, we are working to continuously strengthen thebusiness continuity capabilities of each company.

324

Environment

SocialGovernance

Information Security and Cyber Security Measures
In order to maintain and improve the information security of our company including our major subsidiaries, we have established aninternal system, developed relevant regulations for the safe and appropriate handling and management of information assets, andconduct employee training. Furthermore, in order to address cyber-attacks and e-mail frauds aimed at theft and destruction of
information, we have implemented appropriate and effective countermeasures, which are not only control measures for information
systems but also employee training and checking / implementation of incident response systems including those of major subsidiaries aswell as obtaining the latest information in cooperation with specialized external organizations.

Independent Auditors
The MC Audit & Supervisory Board deliberates on appointments, dismissals, reappointments and non-reappointments of MC’s
Independent Auditors, and each year assesses appropriateness of the audit methods and the audit results. If the Audit & Supervisory
Board deems it fit to dismiss or to not reappoint Independent Auditors, a proposal for new Independent Auditors shall be submitted to theGeneral Meeting of Shareholders.

325

Environment

SocialGovernance

Stakeholder Engagement

MC’s Primary Stakeholders
With the Three Corporate Principles as its core philosophy, MC has continued to grow together with society by addressing societal
issues. The MC Group seeks to increase its corporate value in the medium to long term against a global backdrop of rising uncertainty
and unpredictability, including geopolitical and economic shifts, changes in industrial landscapes driven by technological innovation, andevolving societal values. To this end, we believe it is vital to accurately grasp the demands and expectations of our diverse stakeholders
through engagement and dialogue, and to reflect these in our Group management.
MC has established a system to reflect stakeholder opinions into company management by incorporating external perspectives into theBoard of Directors and its advisory bodies (the Governance, Nomination & Compensation Committee and the International Advisory
Committee) as well as the Sustainability Advisory Committee. With these and other initiatives to engage with its various stakeholders,MC aims to achieve sustainable growth through the collaboration of value by engaging our stakeholders.

Customers and Partners
MC will contribute to the development of societies and economies by providing a stable supply of products and services that meet theneeds of customers and business partners across a wide range of business areas, from upstream raw material procurement todownstream retail, and by working with its customers and business partners to develop various businesses that it could not haverealized on its own. Moreover, as a company that handles a diverse range of products and services worldwide, MC is working to achievea sustainable supply chain as a key issue.

Examples of Engagement
Producing websites and corporate brochures in multiple languages
Receiving and responding to opinions and questions
Supply chain surveys and collaboration with external parties regarding the supply chain (responding to issues with Cermaq Group AS,
Lawson, Inc., Princes Limited, Olam International Limited, Mitsubishi Corporation Packaging Ltd. and MC FOODS Ltd.)
Reference:

Supply Chain Management

326

Environment

SocialGovernance

Employees
In response to the further diversification and globalization of its businesses, MC is working to develop human resources and support
their success on a global, consolidated basis, with the aim of ”Fostering Vibrant Workplaces That Maximize the Potential of a Diverse
Workforce”. This is to establish vibrant workplaces where MC’s diverse and versatilegroup of employees, regardless of gender,
nationality or other attributes, are able to demonstrate their unique abilities to the fullest.

Examples of Engagement
Human resource development(enhanced talent management, Career autonomy, group-wide training initiatives, etc.)
Health and productivity management, diversity management(including supporting health with internal medical clinics and career support for female employees)
Conducting regular Employee Awareness Surveys(total of 26,000 survey responses on a global, consolidated basis for FY2023)
Dialogue with the MC Staff Union, and information dissemination through MC’s intranet and internal magazine
Reference:

Human Resource Development

Well-being （Health & Productivity Management, Occupational Safety and Health）

Diversity

Management

Shareholders, Investors and Creditors
MC strives to gain understanding and support of its business and management strategy through the timely and appropriate disclosure of
information and enhancement of disclosure materials, as well as through briefings and individual meetings. At the same time, MC works
to maximize corporate value by reflecting in its management the opinions and demands of shareholders and investors obtained throughdialogue with them.

Examples of Engagement
Meetings with institutional investors and analysts: approx. 30 times (CEO/ CFO); approx. 400 times (IR); approx. 40 times (ESG)
Communication with shareholders at the Ordinary General Meeting of Shareholders
Publication of business reports, integrated reports, sustainability reports, investors’ notes
Quarterly financial results briefings: 4 times annually
Business briefing sessions
Online seminars with individual investors: 9times (FY2022)

327

Environment

SocialGovernance

Local Communities
MC believes in the importance of “Addressing Regional Issues and Growing Together with Local Communities” and recognizes the valueof building relationships with communities for the success of its businesses. Furthermore, by growing together with communities throughjob creation, promoting community development and procuring raw materials from local communities, MC also strives to minimize
negative impacts on local communities, including by respecting the rights of indigenous peoples. Particularly for large-scale projects
where the understanding and cooperation of local communities is crucial, we hold public hearings and dialogue with local residents asneeded. Growing together with local communities is equally as important as advancing our businesses and generating financial return.
This represents the true spirit of MC, which seeks to simultaneously generate economic, environmental and societal value.

Examples of Engagement
Implementing a local purchasing program for mining operations to procure certain goods and services from local small- and mediumsized enterprises
Implementing various initiatives in our silica sand operations such as prioritizing employment of indigenous peoples, subsidizing thecost of work training, providing scholarships and supporting local infrastructure development
Support activities through foundations and funds
Reference:

CommunityNGOs
We recognize NGOs as key stakeholders that function as representatives for the planet and its citizens, and we seriously consider theopinions and requests raised through our robust communication on a day-to-day basis and use them to improve our initiatives.
Moreover, we are promoting collaborations with NGOs to address environmental and societal issues.

Examples of Engagement
Meetings with NGOs: Japan (9); Europe (32); the Americas (44)
CSR activities related to biodiversity (tropical forest regeneration, global coral reef conservation) and climate change (rangeland
restoration); protection of indigenous people's rights and water resources management in Latin America through foundations set up
by MC in Europe and the Americas; supporting NGOs working toward sustainable cacao farming in Côte d’Ivoire.

Governments and Local Authorities
To achieve improvements and provide solutions to societal issues through our global business operations, we engage in collaboration,
joint initiatives and dialogue with public sector bodies through our involvement in business associations, public-private initiatives andother forums, with the aim of contributing to societal development.

Examples of Engagement
Business association activities:
Dialogues with public sector bodies through the Japan Business Federation (Keidanren), the Japan Chamber of Commerce andIndustry, the Tokyo Chamber of Commerce and Industry, the Japan Association of Corporate Executives, the Japan Foreign Trade
Council, Inc., etc.
Public-private initiatives with public institutions:
Collaborations with and utilization of Japanese government ministries (Ministry of Foreign Affairs, Ministry of Economy, Trade andIndustry, Ministry of the Environment, Ministry of Land, Infrastructure, Transport and Tourism, etc.), the Japan International
Cooperation Agency and Multilateral Development Banks

328

Environment

SocialGovernance

Stakeholder Engagement

External Evaluations
External Evaluations
The indexes in which MC is included as well as evaluations from ESG rating agencies are as follows.
Going forward, MC will continue to heed sincerely the feedback from our stakeholders and reflect this feedback onto our measures andinitiatives, while at the same time working to further expand our disclosure of both financial and non-financial information including ESG.

MC has been included in the FTSE4Good Index Series and the FTSE Blossom Japan Index, both provided by FTSE Russell, as of June
2018. And MC also has been included in the FTSE Blossom Japan Sector Relative Index which provided by FTSE Russell as of April
2022.
Those indexes are used by a wide variety of investors as a reference to evaluate the Environmental, Social and Governance (ESG)
performance of companies.
Furthermore, the FTSE Blossom Japan Index is one of the ESG indices selected by Japan's Government Pension Investment Fund(GPIF) for Japanese equities.

MC has also been included in the MSCI Japan Empowering Women Index (WIN), developed by MSCI in 2018. This index wasdeveloped on the premise that companies that promote a high level of gender diversity in their workplaces will be better able to adapt to
the risk of personnel shortages caused by a declining workforce in the future, and thus provide sustainable earnings over the long term.
WIN is one of of the ESG indexes selected by GPIF.
* THE INCLUSION OF MC IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO
NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF MC BY MSCI OR ANY OF ITS AFFILIATES.
THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS ORSERVICE MARKS OF MSCI OR ITS AFFILIATES.

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Environment

SocialGovernance

MC has responded to CDP (formerly the Carbon Disclosure Project), a global platform to which companies disclose information on
climate change, since 2003.

CDP Climate Change
CDP Climate Change evaluates how companies are responding to the risks and opportunities associated with climate change.
In FY2023, MC received a score of A- (Disclosed).

 CDP Climate Change 2023 Response (PDF:783KB)

CDP Water
CDP Water evaluates companies' water stewardship efforts.
In FY2023, MC received a score of B.

CDP Forest
CDP Forests evaluates how companies are managing the risks associated with deforestation in their supply chain.
In FY2023, MC received a score of B.

OthersAward for Excellence as part of the NIKKEI Integrated Report Award (FY2022)
Selected as an “Excellent Integrated Report” by GPIF’s external asset managers (FY2019, FY2021, and FY2022)
Selected as one of the “Most Improved Integrated Reports” by GPIF’s external asset managers (FY2019–FY2022)
Selected as one of the “Greatest IR Improvement Premium Companies” and “Best Continual IR Efforts Premium Companies” at theJapan Investor Relations Association 30th Anniversary Commemorative Awards (FY2023)

330

（TRANSLATION）

Independent Practitioner’s Assurance Report
March 13, 2024
Mr. Katsuya Nakanishi,
President and CEO,
Mitsubishi Corporation
Tomoharu Hase
Representative Director
Deloitte Tohmatsu Sustainability Co., Ltd.
3-2-3, Marunouchi, Chiyoda-ku, Tokyo
We have undertaken a limited assurance engagement of the ESG Data indicated with ★ for FY2022 and FY2023 (the“ESG Data”) included in the “SUSTAINABILITY REPORT 2023 As of March 1, 2024 (PDF)” (the “Report”) of
Mitsubishi Corporation (the “Company”).
The Company’s Responsibility
The Company is responsible for the preparation of the ESG Data in accordance with the calculation and reporting
standard adopted by the Company (indicated with the ESG Data included in the Report). Greenhouse gas
quantification is subject to inherent uncertainty for reasons such as incomplete scientific knowledge used to determine
emissions factors and numerical data needed to combine emissions of different gases.
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional
Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental
principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.
We apply International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews ofFinancial Statements, and Other Assurance and Related Services Engagements, and accordingly maintain acomprehensive system of quality control including documented policies and procedures regarding compliance withethical requirements, professional standards and applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express a limited assurance conclusion on the ESG Data based on the procedures we have
performed and the evidence we have obtained. We conducted our limited assurance engagement in accordance with
the International Standard on Assurance Engagements (“ISAE”) 3000, Assurance Engagements Other than Audits or
Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board(“IAASB”), ISAE 3410, Assurance Engagements on Greenhouse Gas Statements, issued by the IAASB and thePractical Guideline for the Assurance of Sustainability Information, issued by the Japanese Association of Assurance
Organizations for Sustainability Information.
The procedures we performed were based on our professional judgment and included inquiries, observation ofprocesses performed, inspection of documents, analytical procedures, evaluating the appropriateness of quantification
methods and reporting policies, and agreeing or reconciling with underlying records. These procedures also included
the following:
・ Evaluating whether the Company’s methods for estimates are appropriate and had been consistently applied.
However, our procedures did not include testing the data on which the estimates are based or reperforming theestimates.
・ Performing interviews of responsible persons and inspecting documentary evidence to assess the completenessof the data, data collection methods, source data and relevant assumptions applicable to the sites.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance
engagement is substantially lower than the assurance that would have been obtained had we performed a reasonableassurance engagement.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention
that causes us to believe that the ESG Data is not prepared, in all material respects, in accordance with the calculation
and reporting standard adopted by the Company.
The above represents a translation, for convenience only, of the original Independent Practitioner’s Assurance report issued in
the Japanese language.
Member of
Deloitte Touche Tohmatsu Limited

Externally Disclosed Information/Reporting Scope/Reference Guidelines

MC discloses information externally through the following media in accordance with its Corporate Disclosure Policy.

• Integrated Report 2023
https://www.mitsubishicorp.com/jp/en/ir/library/ar/• Annual Financial Reporthttps://www.mitsubishicorp.com/jp/en/ir/library/afr/pdf/afr2023.pdf• Voting Results of 2023 Ordinary General Meeting of Shareholders
https://www.mitsubishicorp.com/jp/en/ir/adr/sh_meeting/pdf/result_2023.pdf• Notice of 2023 Ordinary General Meeting of Shareholders
https://www.mitsubishicorp.com/jp/en/ir/adr/sh_meeting/pdf/shoshu_2023.pdf• Investors’ Notes
https://www.mitsubishicorp.com/jp/en/ir/library/notes/• Corporate Brochure 2023
https://www.mitsubishicorp.com/jp/en/about/cguide/• Corporate Governance Reporthttps://www.mitsubishicorp.com/jp/en/about/governance/pdf/governance_report_e.pdf• Mitsubishi Corporation Compliance Reporthttps://www.mitsubishicorp.com/jp/en/about/governance/pdf/compliance_01_e.pdf• MCʼs Social Contributions
https://www.mitsubishicorp.com/jp/en/csr/contribution/

Reference: Information about MCʼs Corporate Disclosure Policy can be found here.

https://www.mitsubishicorp.com/jp/en/about/philosophy/policy.html

Reporting Scope

MC and all consolidated Group companies(In some cases, data is available only for MC on a non-consolidated basis. MC will strive to collect and disclose data on a consolidated basis going forward.)

Main Reference Guidelines• Global Reporting Initiative (GRI) GRI Standards• The Environmental Reporting Guidelines issuesd by the Ministry of the Environment• International Organization for Standardization ISO 26000• Sustainable Development Goals (SDGs)• FInal Report: Recommendations of the Task Force on Climate-related Financial Disclosure (TCFD)• GX League “Basic Guidelines for Disclosure and Evaluation of Climate-related Opportunities”（2023）• WBCSD/Net Zero Initiative “Guidance on Avoided Emissions: Helping business drive innovations and scale solutions
towards Net Zero”（2023）• Universal Declaration of Human Rights (UDHR)• United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP)• OECD Guidelines for Multinational Enterprises

Notice Regarding Outlooks

Outlooks contained in this document are based on currently available predictions, budgets, forecasts and plans, aswell as on the judgement of MC management. These predictions, budgets, forecasts and plans include many potential risks,
uncertain factors and assumptions. Actual outcomes may diﬀer greatly from MC's outlooks due to developments
around key factors.
Among the risks, uncertain factors and assumptions that could impact MC's ﬁnancial performance, besides thosecontained in this document, other factors include commodity market conditions, exchange rates, the economic situation
surrounding MC's business areas, results of pending and future litigation and the continued utility of procured
funds, fnancial products and resources, etc. However, elements that may aﬀect business performance are not limited
to these factors.
In consideration of our environmental footprint, the Sustainability Report is published in PDF format only.