OUR VIEWS ON SUSTAINABILITY
Company Creed
Fairness: Act with fairness and integrity at all times.
Innovation: Pursue creativity with enterprise and initiative.
Harmony: Give and earn the respect of others through cooperation.

Management Philosophy
In accordance with the spirit of the Company Creed of “Fairness,
Innovation and Harmony,” the Marubeni Group is proudlycommitted to social and economic development and safeguarding the global environment through fair and upright
corporate activities.
Our Management Philosophy clearly expresses our views
on sustainability. To us, sustainability means proactively
engaging in environmental and social issues and challenges,
delivering solutions through innovation, and living by theManagement Philosophy.
Corporate value is composed of financial and non-financial
value; non-financial value in particular is steadily growing inimportance. With regard to sustainability, such issues as climate change, the depletion of forestry resources and humanrights issues pose grave threats to social and environmental
sustainability. Adopting and implementing clear medium- andlong-term corporate policies regarding these issues is directly
related to increasing non-financial value and corporate value.
Until now, to increase corporate value, each of our businesses has generally created its own innovative businessmodel in anticipation of the challenges facing society.
From now on, however, we will further fortify our traditionallystrong businesses (vertical evolution) and also leverage internal and external expertise in order to generate better results
than would otherwise be possible (horizontal expansion). Thisis the concept of our “Global crossvalue platform;” it will provide solutions for social and environmental problems and guide
us in working toward a better tomorrow by providing a framework for promoting social and economic development andconserving the global environment.

Proactively Engaging inEnvironmental & Social
Issues and Challenges

Company CreedManagement Philosophy

Fundamental Materiality

Building
a BetterTomorrow

Environmental & Social Materiality

Climate Change
Human Capital withHigh Social Value

Sustainable &Resilient Value
ChainsRobust Management
Foundation
Governance for Coexistencewith Society

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MARUBENI CORPOR ATION

Delivering Solutions
through Innovation

Sustainable
Forestry

Human Rights &Co-developmentwith Communities

SUSTAINABLE DEVELOPMENT REPORT 2019

4

FUNDAMENTAL
MATERIALITY
1

Human Capital with High Social Value

We regard human capital as our most valuable asset in meeting environmental and social demand, and proactively providing solutions. We define “Human Capital with High Social
Value” as individuals who are essential not only to the company but also to society. We will nurture Human Capital withHigh Social Value, and thereby bring about innovation andprovide solutions.

2

The Marubeni Group has identified three categories ofFundamental Materiality for living by our Management
Philosophy, building a better tomorrow, and accomplishing the goal of ensuring sustainable growth for thecompany.

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MARUBENI CORPOR ATION

12
3Human Capital withHigh Social Value

Robust Management
Foundation

3• Individuals who observe laws and act in conformity withaccepted international customs, and who also maintain highethical standards for the good of society.
• Innovative individuals with the foresight, insight and creativity needed to anticipate social change.
• Individuals with sound judgment and the ability to makecorrect decisions and act quickly.
• Individuals with the communication skills to truly address thedemands of society, with a sense of purpose and responsibility, while also being attuned to the realities of the marketplace.
These attributes are the foundation of decision-making, decisiveness and the ability to execute.

Robust Management Foundation

We have identified Robust Management Foundation as thesecond category of Fundamental Materiality, as we believe it
is necessary both for maximizing the potential of our humancapital and for maximizing corporate value.
We must build a foundation that facilitates the activitiesof our human capital and establish a truly Robust Management Foundation. If we cannot accomplish this, our humancapital will not be able to continue innovating and providing
solutions. Enabling our human capital to use our management foundation to the fullest will ultimately lead to maximizing corporate value.

Fundamental Materiality

To us, Human Capital with High Social Value means:

To us, Robust Management Foundation means:• A fundamentally sound management foundation with astrong brand presence, reputation, sales foundation andnetwork, and financial footing.
• A corporate climate and culture that is capable of producing
abundant Human Capital with High Social Value, and canenable that human capital to engage in meaningful work.
• An environment that places importance on the ability tocreate diverse values and generate quality solutions within adiverse and inclusive organization.

Governance for Coexistence with Society

We will endeavor to increase corporate value based on a
Robust Management Foundation in which Human Capital withHigh Social Value develops innovative ideas and continues
providing solutions.
Within that framework, and given social expectations anddemands, we believe that strengthening our corporate governance system for improved coexistence with society isimportant to all of our stakeholders. We will deepen our
engagement with diverse stakeholders, enhance the effectiveness of the Board of Directors’ oversight function, and bringgreater transparency to our management in order to build agovernance framework that allows for improved coexistencewith society and works toward achieving sustainability.

Governance for Coexistencewith Society

SUSTAINABLE DEVELOPMENT REPORT 2019

6

ENVIRONMENTAL &SOCIAL MATERIALITY
1

Climate Change

Climate change, which is responsible for phenomena such as
global warming, changes in the natural environment andmore frequent natural disasters, is a global issue with a broad
impact on social and environmental sustainability.
Marubeni has business operations throughout the world,and views climate change as a serious risk. However, we also
believe that it presents business opportunities.
We see contribution to climate change mitigation and adaptation as a category of Environmental and Social Materiality.
We contribute to climate change countermeasures mainly
through the following policies:

Coal-Fired Power Generation andRenewable Energy Generation Businesses
The Marubeni Group has 12GW net power generation capacity (as of December 31, 2018) and is a leading independent
electric power operator. We announced our “Policy on CoalFired Power Generation and Renewable Energy Generation
Businesses” on September 18, 2018 as part of our proactive
climate change countermeasures.
Notification Regarding Business Policies Pertaining to Sustainability (In Relation to Coal-Fired Power Generation Business andRenewable Energy Generation Business), see page 9.

The Sustainable Development Goals (SDGs)*1 adopted
by the United Nations in September 2015 are goals forachieving sustainability and leaving the world a better
place for future generations shared by governments,
the private sector and civil society. In recognition ofthis, the Marubeni Group has identified the following
categories of Environmental and Social Materiality inwhich it can truly make a valuable contribution.
In addition to the 17 goals and 169 targets of theSDGs, and taking into consideration stakeholders’expectations and interests as well as the environmental
and social impact of our business, our categories ofEnvironmental and Social Materiality are based on thecriteria described below. Building on initiatives set out
through our Fundamental Materiality, we will contributeto achieving the SDGs and work toward building abetter tomorrow.
• Importance to stakeholders• Impact and scope of our business activities on theenvironment and society• Impact on our earnings＊1. Sustainable Development Goals (SDGs): As a first step, in 2001 the UN
established the Millennium Development Goals (MDGs) with a target dateof 2015. Subsequently, in September 2015 the UN Sustainable Development Summit established the SDGs under the 2030 Agenda for Sustainable Development. They are a set of international goals covering the period
from 2016 through to 2030, and consist of 17 goals and 169 targets.

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MARUBENI CORPOR ATION

We view climate change-related transfer risk as a business opportunity, and we aim to increase our “Green
Revenue” of 700 billion yen in FY2017 to 1.3 trillion
yen by 2023.
Green Revenue, a part of our business contribution to climatechange countermeasures, includes the following:• Sales of products certified as contributing to sustainable
forestry, fisheries, etc.
• Sales from businesses (real estate, etc.) contributing tolessening environmental impact• Sales from businesses dealing in power generation fromrenewable energy sources• Sales from businesses contributing to propagating EV (electric vehicles)• Sales from businesses (recycling-related, etc.) contributing
to waste reduction• Sales from businesses (water business, etc.) contributing toefficient use of resources

The Marubeni Group recognizes the importance of climate-related financial disclosures. As new measures
to counter climate change, in addition to affirming therecommendations of the TCFD*2, we will endeavor tobetter understand the financial impact of both therisks and opportunities brought about by climatechange, and also engage in improved climate-related
financial disclosure.
＊2. TCFD (Task Force on Climate-related Financial Disclosures): Establishedby the Financial Stability Board (FSB).

Environmental & Social Materiality

1

Climate Change

4

Sustainable &Resilient Value
Chains2

3

Sustainable
Forestry

Human Rights &Co-developmentwith Communities

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Environmental & Social Materiality

September 18, 2018

Notification Regarding Business Policies Pertaining to Sustainability(In Relation to Coal-Fired Power Generation Business and Renewable Energy Generation Business)
Marubeni Corporation (hereinafter, “Marubeni”) recognizes
that climate change is a major issue shared by all of
humanity. It is a problem that threatens the co-existence ofthe global environment and society, a problem that has anenormous effect on Marubeni’s business and its shareholders, and a problem that Marubeni believes must be dealt
with swiftly. Therefore, as part of Marubeni’s promotion ofsustainable management, and in order to contribute fightglobal climate change, Marubeni has established new business policies (hereinafter, “Policies”) regarding its coal-fired
power generation business and its renewable energy generation business.

1. The Process of Pulling Out of Coal-Fired
Power Generation
As a global player in the power business, Marubeni will
reduce its greenhouse gas emissions volume from its
power generation portfolio. By 2030, Marubeni will cut its
FY2018 coal-fired power net generation capacity of
approximately 3GW in half. Additionally, Marubeni will
deploy innovative technologies to increase the efficiency of
its portfolio assets, and proactively promote the reductionof its environmental impact.

2. The Policy on New Coal-Fired Power
Generation BusinessAs a general principle, Marubeni will no longer enter into
any new coal-fired power generation business. However,Marubeni might consider pursuing projects that adopt
BAT (“Best Available Technology”, which at present is
USC: “Ultra-supercritical steam generating technology)
and are compliant with the policies and measures of theJapanese government and any country in which the project will be executed (e.g. energy supply stability, poverty
and employment measures and economic growth policies). Nevertheless, even if Marubeni does make an exception to take on a project like this, Marubeni will makeproposals on the creation of a low-carbon society, efficient
power generation systems and the diversification ofenergy sources; Marubeni will make efforts to contributeto the resolution of local issues in the country and/or
region in which the project is executed.

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MARUBENI CORPOR ATION

3. Proactive Involvement in Renewable Energy
Generation BusinessLooking forward to the expansion of the renewable energy
generation business, Marubeni will strive to expand the ratioof power generated by renewable energy sources in its own
net power supply from approximately 10% to approximately
20% by 2023. Furthermore, Marubeni will contribute to thetransition towards a low-carbon society by promoting the
expansion of the handled volume of renewable energy
sources pertaining to energy trading. An example of this is
SmartestEnergy Ltd.*, a wholly-owned subsidiary located in
the United Kingdom that manages approximately 3GW of
total energy, which is purchased from independent generators; about 80% of that 3GW is generated by renewableenergy sources.
Moving toward the achievement of these Policies, Marubeni
will work to properly communicate and cooperate with its
diverse stakeholders, and also proactively disclose updates
on Marubeni’s progress in reaching these goals. Additionally,
given the changes to the external environment, Marubeni
will refer to the various international guidelines, beginningwith the OECD Export Credits Arrangement, diligently monitor measures taken by different countries in terms of coalfired and renewable energy generation business, as well as
the international state of affairs, and use this information toperiodically review and rework its own policies from thestandpoint of climate change countermeasures.
In April 2018, Marubeni launched the Sustainability
Management Committee (hereinafter, “the Committee”)
under the supervision of the President and CEO, with theaim to strengthen the company’s sustainability initiatives.
Since its launch, and while soliciting the opinions of external
parties, the Committee has discussed a number of basic
policies and measures pertaining to Marubeni’s sustainability
initiatives, beginning with identification and periodic reviewof the materiality. Policies and measures considered as aresult of these discussions will be announced as part of
Marubeni’s ESG related data once it has been compiled.
＊ SmartestEnergy Ltd., established by Marubeni in the U.K. in 2001,
purchases power from small to medium sized independent generators, and resells on the wholesale market or to retail customers.
https://www.smartestenergy.com/

2

Sustainable Forestry

Forests are a precious resource and enrich life on Earth inmany ways. The Marubeni Group currently holds 140,000
hectares of tree plantations across the world (total grossproject area is 320,000 hectares). These forests are run
according to management methods for sustainable forestry.

To build a better tomorrow, we have adopted a Forest Management Policy and a Procurement Policy (for Wood-derived
Products) to conserve and sustainably use valuable forest
resources. By operating our businesses in accordance withthese policies, we will promote sustainable forest management
and contribute to forest conservation.

Forest Management Policy
1. Introduction
Marubeni Group (hereinafter the “Company”) promotes
sustainable forest management by conducting fair andupright corporate activities in accordance with the spirit of
the Company Creed of “Fairness, Innovation and Harmony”.
We recognize that forests are renewable resources thatprovide various benefits for sustaining life on earth, andembrace economically viable forest management methods
with the aim of ensuring the prosperity of present andfuture generations.
We strive to contribute to the establishment of a circular
economy by creating innovation in the utilization of forest
resources and responding to the society’s environmental
needs that are becoming more diverse.
The Forest Management Policy (hereinafter the “Policy”)
drives our commitments to sustainable forest management, the protection of forests with high conservation
value (HCV ) and the elimination of unregulated forest
logging in our business activities. We, through our focus on
on-site operations, are able to create economic benefits
and contribute to society by conducting sustainable forest
management through coexistence and co-prosperity withlocal communities, as well as supplying environmentallyconscious wood resources that respond to society’s needs.

2. Scope
The Policy applies to all woodchip and pulp manufacturing
and forest plantation operations by Marubeni and its subsidiaries worldwide.

3. Commitments
We go beyond compliance in our commitments to sustainable forest management. Through this Policy, we reaffirm ourcommitment to comply with all applicable laws and regulations relevant to forestry operations and seek to extend thisobligation to our contractors and their employees.

1) Natural Capital
In implementing sustainable forest management, we
commit to the following guidelines on the principle of No
Deforestation:• Only handling wood resources managed in a sustainable
and appropriate way.
• No conversion of natural forests in forest plantation
developments.
• Proactively addressing protection of HCV forests in ourforest management from the viewpoint of biodiversity
conservation.
• No forest plantation operations in HCV forests or on
peatland.
• Committing to a “No Burn Policy” that restricts the use offire in forest plantation operations that can potentiallycause forest fires in tropical forest areas.
• Minimizing the impact of logging and related logging
access roads construction on ecosystems.
• Proactively addressing the protection of species at risk ofextinction included in IUCN’s (International Union forConservation of Nature and Natural Resources) Red Listof Threatened Species.
• Restricting the usage of alien species only to cases where
impact is manageable.
• Following international best practices for soil management.
• Not using any pesticides classified as Class 1A/1B in theclassification scheme of the WHO (World Health Organization), or any substances regulated by the Rotterdam
Convention and the Stockholm Convention as pesticides.
• Not using genetic modification technology in forest
management.
• Effective utilization of trees damaged by natural disasters
such as burned trees, fallen trees, drift wood etc.

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Environmental & Social Materiality

2) Social Capital
We commit to the social and economic development of theareas where we operate and seek to identify opportunities
to create shared values with local communities. We recognize the importance of land use rights for local communities and indigenous people and their right to enjoy a fairshare of the benefits obtainable from the commercial use
of forest resources. Marubeni Group follows the principles
regarding human rights described in the Basic Policy on
Human Rights, and conducts the following activities as a
responsible party:3) International Standards
We promote the main principles outlined in international
standards relevant to the forestry industry (forest plantations, woodchips and pulp manufacturing) in our own
operations as part of our commitment to sustainable
forest management.

• Committing to provide a safe and productive work environment, and not tolerating any form for child labor,
forced labor, discrimination, harassment or abuse.
• Following the principle of Free, Prior and Informed Consent (FPIC) when starting new forestry operations on thelands where indigenous and local communities hold legal
or customary rights•
Establishing grievance and conflict resolution mechanisms compliant with international standards and theregulatory requirements of the host countries of our forestry operations, as well as engaging in good-faith dialogue with stakeholders to resolve any issues.
• Actively carrying out stakeholder engagement on local,
national and international scales.
• Respecting the rights of every worker.

4. Governance1) Implementation

We are contributing to economic and social developmentof areas where we operate through the following
initiatives:•
Creating employment opportunities for local residents(priority allocation of contracts for forest plantation
related work)• Joint programs with local residents (Joint Forestry, Agriculture and Forest Products Harvesting Programs, etc.)• Support activities for local residents (support for indigenous people, vocational training, disaster prevention
drills, voluntary provision of daily necessities, etc.)• Educational support (scholarships, construction or renovation and extension of schools, dispatching of teachers,
operational support, etc.)•
Other community support (support for infrastructure
equipment repair, sports events, etc.)

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MARUBENI CORPOR ATION

4) Environmental and Social Risk Assessment
We conduct the necessary environmental and social risk
assessment prior to the completion of land acquisitions orland developments for new operations.

The Policy is approved by Marubeni’s Board of Directors.
Oversight of the Policy is by the Chairperson of Sustainability Management Committee with implementation by theBusiness Group.

2) Links to Other Policies
The Policy complements other sustainability related policies of the Company including the Basic Policy on Human
Rights and Basic Supply Chain Sustainability Policy.
3) Policy Management
We will review the Policy at least once a year, or as new
information and knowledge becomes available, in waysthat are consistent with our objectives of sustainable forest
management.
4) Certification Audit and Monitoring
We hold international certification for sustainable forest
management and CoC (Chain of Custody) certification to
manage distribution and processing. As a result, accredited bodies conduct regular auditing and monitoring ofthese certifications.

Product Procurement Policy (Forest-derived Products)
1. Introduction

3. Commitment

The Marubeni Group (hereinafter referred to as “we”) conducts fair and upright corporate activities in accordancewith the spirit of its Company Creed of “Fairness, Innovation and Harmony” and strives to build a sustainable society
together with its business partners in line with the “Basic
Supply Chain Sustainability Policy.”
We have established the Product Procurement Policy(Forest-derived Products) (hereinafter referred to as the“Policy”) to promote the procurement of timber and related
products produced from appropriately managed forests,
thereby realizing the sustainable use of forest resources.
This Policy has been approved by Marubeni’s Board of
Directors. The Chairperson of the Sustainability Management Committee oversees the Policy, and the BusinessGroup is in charge of its effective implementation. We
undertake to review this Policy at least annually and revise
it as necessary.

In cooperation with suppliers and customers, we are committed to ensuring the traceability of procured products
while conducting our procurement activities in accordancewith the Basic Supply Chain Sustainability Policy and thefollowing principles.

2. Scope

In order to promote this Policy, we will investigate theenvironmental and social considerations of suppliers aswell as their compliance with laws and regulations. In theevent that any non-compliance with this Policy is discovered, consultations and requests for improvement measures will be made. If the non-compliant supplier does not
improve, we will review our business relationship with therelevant supplier.
We will regularly disclose information on this Policy. We
are committed to promoting to society the sustainable useof forest resources through appropriate communication
with our suppliers and customers and other stakeholders.

This Policy applies to the trading of timber and related
products by Marubeni and its subsidiaries worldwide. Specifically, it covers raw timber, woodchips (including fuelwoodchips), pulp, and paper and paperboard products(hereinafter referred to as “procured products”).

(1) No handling of procured products produced from illegally logged timber.
(2) No handling of products procured from suppliers
involved in serious environmental and social controversies, such as the destruction of forests with high conservation value.
(3) No handling of procured products produced fromgenetically modified wood.
(4) Promoting the handling of procured products that havebeen certified under a reliable international forest certification system.

5) Information Disclosure
In addition to increasing the transparency of our businessactivities, we are committed to disclose information on our
approach to sustainable forest management on the Company website etc.
Note: H CV forests are forests that have a High Conservation Value in social, culturaland or environmental terms.

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Environmental & Social Materiality

3

Human Rights & Co-development with Communities

Due to the globalization of economic activity, serious abuses ofhuman rights against workers and local residents are taking
place in relevant countries and regions. Many of these abuses
can be remedied or improved by taking human rights into
consideration in business activities, and there are growing
expectations that businesses should play a role in remedying
human rights abuses.
The Marubeni Group does business in 131 locations*1 in 66
countries and regions and employs 40,000 people*2 ofmany different nationalities and ethnicities. We are active ina wide range of businesses and conduct global, multi-faceted activities.

To create a better tomorrow, we take a sincere approach todealing with human rights issues facing the international
community. As part of our initiatives, we have included thethree basic principles of the United Nations’ “Guiding Principles on Business and Human Rights: 1) respect for humanrights, 2) due diligence on human rights, and 3) redress in our
Basic Policy on Human Rights.
＊1. As of April 1, 2018
＊2. As of March 31, 2018

Basic Policy on Human Rights
In the spirit of the Company Creed of “Fairness, Innovationand Harmony,” the Marubeni Group is proudly committed
to promoting social and economic development and safeguarding the global environment through fair and upright
corporate activities. We recognize that respecting thehuman rights of persons affected by our business activities
and endeavoring to take responsibility for doing so are ofutmost importance, and to this end we have formulated
our Basic Policy on Human Rights (“the Policy”), based on
the UN’s Guiding Principles on Business and Human Rights.

Responsibility for Human Rights

Our Basic Stance on Human Rights• Redress:
We will create a system (complaint resolution mechanism)
for reporting when our business activities have a negative
effect on human rights or we have been involved in humanrights violations. If such reports are received, appropriate
procedures for redress will be taken once the facts are
sufficiently ascertained.

We support and respect all international rules on humanrights, including the UN’s International Bill of Human Rights(Universal Declaration of Human Rights and International
Covenant on Human Rights), the ILO’s Declaration on Fundamental Principles and Rights at Work and the 10 Principles of the UN Global Compact.

Scope of Application
This Policy applies to all executives and employees of the
Marubeni Group. We also ask that stakeholders (vendors,
service providers, contractors, third-party manufacturers,
joint venture partners, outsourcing partners, customers
and other business partners and local communities) andother related parties observe the intent of the Policy andtake appropriate action if a negative effect on human rights
caused by them is directly related to the business activitiesof the Marubeni Group.

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MARUBENI CORPOR ATION

We will carry out our responsibility to respect human rights
by ensuring that we do not violate human rights. If it shouldcome to light that any of our business activities are having
a negative impact on human rights, we will take appropriate action to remedy the situation.

• Education and Training:
We will conduct appropriate training and skill development
for our executives and employees to ensure that this Policy
is understood and effectively put into practice in all ourbusiness activities.

The above Policy includes the following policies with regard to
those who are especially vulnerable to human rights abuses:• Policy Regarding the Rights of Children:
In addition to supporting the Children’s Rights and Business
Principles*3, which are intended to protect children’s rights inthe course of our business activities, we will undertake social
contribution activities to strengthen children’s rights and by
so doing will contribute to improving children’s rights.
• Policy Regarding the Rights of Indigenous Peoples:
When conducting our business activities in countries orregions with indigenous peoples, we will acknowledge thenative culture and history of indigenous peoples, and we will
give due consideration to the laws of the country or region inquestion and the rights of indigenous peoples set out in international rules.

• Information Disclosure:We will report on our initiatives, etc. for fulfilling our
responsibilities to respect human rights through our official
website and other avenues.

• Policy Regarding Use of Security Services:
We are aware of the inherent risk to human rights related tothe use of weapons for security. With regard to the use of
security services when conducting business activities, we willobserve the laws of the countries or regions where we operate, support international rules and related practices andendeavor to respect human rights.
＊3. Children’s Rights and Business Principles: A comprehensive set of principles formulated by UNICEF, the UN Global Compact and Save theChildren covering various actions that enterprises can take in the workplace, the marketplace and the community in order to promote respect
for children’s rights.

• Human Rights Due Diligence:
We will create and continue using a system for carrying out
human rights due diligence.

• Dialogue and Discussion:
We will engage in sincere dialogue and discussion with
relevant stakeholders in order to promote initiatives in linewith this Policy.
• Compliance with Relevant Laws:
We will observe the laws and regulations of the countries
or regions where we conduct business activities. If nationallaws are in contradiction with internationally recognizedhuman rights, we will pursue solutions in which we canrespect human rights principles.

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Environmental & Social Materiality

4 Sustainable & Resilient Value Chains
The Marubeni Group deals with thousands of suppliers*1 inconducting transactions and operating a wide range of businesses on a global scale. We believe that we make important
contributions to sustainability through environmental conservation and sustainable social development initiatives throughout our supply chain. To build a better tomorrow, we haveidentified Sustainable and Resilient Value Chains and working
together with our business partners as an essential category ofEnvironmental and Social Materiality. In addition to managing
the supply chain, we will also involve buyers of our products
and enhance the strength and competitiveness of our entire
value chain, which includes not only the Marubeni group but
also our business partners.

As part of our sustainability initiatives, together with stakeholders, we, including our business partners, adopted our
Basic Supply Chain CSR Policy in 2008 to manage our supply
chain. Subsequently, to advance understanding of and cooperation with the spirit of this Policy, we sent the Policy tosuppliers, conducted surveys, and dispatched personnel tosuppliers’ manufacturing or production sites to conduct direct
on-site inspections. Since we believe that value chain management is important, we will continue taking initiatives towardboth suppliers and buyers of our products to resolve issues inthis area.
In addition, we have revised our Basic Supply Chain CSR
Policy, adopting a new Basic Supply Chain Sustainability
Policy to place more importance on climate change countermeasures and respect for human rights.
＊1. Approximately 3,000 firms have direct dealings with Marubeni (as ofMarch 31, 2018)

Basic Supply Chain Sustainability Policy(Revised January 2019)

1. The Marubeni Group, not being satisfied with simply
strengthening its own sustainability initiatives, supports
strengthening sustainability throughout its supply chain
with the objective of building an environmentally friendly,
healthy and sustainable society.
2. Having set out the Supply Chain Sustainability Guidelines
below, the Marubeni Group asks for the understanding
and cooperation of its business partners in observing the
Guidelines, to promote, together with its business partners, highly effective sustainability initiatives. Further,when calling on its business partners, the MarubeniGroup will communicate the Guidelines so that they are
fully aware of the Guidelines and will assist business
partners’ capacity building by making recommendations,requests or providing guidance as necessary and by
sharing examples of good practices.
3. Supply Chain Sustainability Guidelines(1) Observance of Laws:• Observe the laws of the countries where business isconducted and laws relating to business transactions.

(2) Respect for Human Rights:• Respect human rights without discrimination, harassment of any kind, abuse or other inhumane treatment.
• No child labor or forced labor.
• Proper management of employees’ work hours, breaks
and holidays and prohibition of excessive overtime work.
• Payment of the legally mandated minimum wage andendeavoring to pay at least a living wage. No inappropriate wage abatement.
• Respect for employees’ right to unionize for the purpose of labor-management negotiations and right tocollective bargaining.
(3) Conservation of the Environment:• Recognize that climate change issues are importantand respond appropriately.
• Protect the natural environment.
• Reduce environmental negative impact, prevent
pollution.

15

MARUBENI CORPOR ATION(4) Fair Transactions:• Conduct fair transactions and do not inhibit freecompetition.
• Prevent corruption; offer no bribes or illegal
contributions.
(5) Safety and Health:• Ensure safe and healthy workplaces and maintain agood working environment.
(6) Quality Control:• Maintain the quality and safety of products and services.
(7) Information Disclosure:• Timely and appropriate disclosure of information.
4. As part of this Policy, the Marubeni Group has set out thefollowing procedures for dealing with vendors that do
not meet labor standards.
(i) When it comes to light that a vendor has failed tomeet labor standards relating to (1) Observance ofLaws, (2) Respect for Human Rights or (5) Safety
and Health, we will as necessary, ask the vendor to:• Ascertain the facts, and• If the facts are true, prepare a report on the background of the issue and improvement measures.
Depending on circumstances, we may also inspect
the vendor.
(ii) If we determine that improvement measures are insufficient, we will request that further measures be taken.
(iii) If, despite implementing steps (i) and (ii) above, thesituation does not improve, we will examine whether
to continue our relationship with the vendor.

SUSTAINABLE DEVELOPMENT REPORT 201916

ORGANIZATION
As part of its organization to promote sustainability initiatives, the Marubeni Group has a Sustainability Management
Committee under the supervision of the President. The
Committee discusses policies and measures concerning oursustainability initiatives and ESG risk management andreports to the Board of Directors at least once a year. To
incorporate the views of external parties, the Committee also
includes External Directors and External Audit & Supervisory
Board Members in an advisory role. A Director heads theSustainability Management Committee, and the Board of
Directors, by receiving periodic reports on important issues
pertaining to the sustainability initiatives discussed by theCommittee, oversees sustainability-related issues evaluatedfrom the viewpoints of the appropriateness of our ESG risk
management and compatibility with society.

Starting April 1, 2019, we will take the following steps toenhance our sustainability management organization:• A Chief Sustainable Development Officer will serve as thehead of the Sustainability Management Committee.
• A Sustainability Management Department will be newly established within the Corporate Staff (CS) Group to coordinate
sustainability management among the Business Division, theCS Group, and our branches, offices and local subsidiaries.
• A Sustainability Leader in charge of sustainability management will be appointed in each business division, eachdepartment within the CS Group, and at each branch, officeand overseas corporate subsidiary. A Sustainability Manager
will also be appointed in each business department.

Sustainability Management Organization
Planning, reporting, approval

Board of Directors
President

Sustainability Management Committee
Advisory body to the President. It discusses basic policies andother matters pertaining to sustainability.
Committee head: Chief Sustainable Development Officer

Environment
Committee

Business Divisions

Business Divisions
Sustainability Leaders

Sustainability
Management
Department

CS Group

CS Group
Departments
Sustainability Leaders

Domestic andOverseas Branches& Offices

Domestic andOverseas Branches& Offices
Sustainability Leaders

Business
Departments
Sustainability Managers

17

MARUBENI CORPOR ATION

Execution

SUSTAINABLE DEVELOPMENT REPORT 201918