Sustainability Case Studies / Cooperation with External Initiatives

SUSTAINABILITY CASE STUDIESCOOPERATION WITH EXTERNAL INITIATIVES
Industry Groups

For case studies related to sustainability in the Marubeni Group, please refer to Marubeni’s website:

https://www.marubeni.com/en/sustainability/group/action_plan/

Uranium Mining Project in Kazakhstan

Revenues by Operating Segment in FYE 3/2018

The Marubeni Group has an indirect ownership interest as aminority shareholder in three companies operating a uranium
mining project: Kyzylkum LLP, Khorasan-U LLP, and Baiken-U
LLP. However, none of the three companies are consolidated
subsidiaries or affiliates of Marubeni.

Revenues by operating segment in FYE 3/2018 were as follows.

Revenue figures for FYE 3/2018 based on the new organizational structure

Food

Consumer
Products

Chemical &ForestProducts

Energy &Metals(Millions of yen)
Power
Business &Plant

Transportation &Industrial
Machinery

Other

Consolidated

Governments and Government Offices

Revenue
Sales of goodsC ommissions on services andtrading margins
Total revenue

As a member of the Japan Foreign Trade Council (JFTC),
Marubeni supports the Commitment to a Low-Carbon Society proposed by Keidanren, and takes part in the working
groups and public meetings on climate change held by
Keidanren and JFTC.
In accordance with the policies of the Commitment to a
Low-Carbon Society proposed by Keidanren, Marubeni istaking action on climate change and has set targets for reducing energy usage (electricity and gas) at the Tokyo Head
Office and the Osaka Branch in FYE 3/2021 by 10.5% compared to FYE 3/2010, and is moving forward with the introduction of energy-efficient equipment. (Marubeni implements
appropriate climate change measures regardless of the levelof influence of the affiliated industry group.)

3,979,503

332,833

1,717,692

679,039

198,241

463,766(9,266)

7,361,808

4,072

69,14135,74826,48913,05128,011

2,017

178,529

3,983,575

401,974

1,753,440

705,528

211,292

491,777(7,249)7,540,337

Notes:
1. In conjunction with the organizational changes in April 2018, operating segment information for FYE 3/2018 has been reclassified.
2. These figures have not been audited by a certified public accountant or audit firm.

Marubeni actively participates in subcommittees and workshops on climate change held by the Ministry of Economy,
Trade and Industry (METI) and the Ministry of the Environment. In FYE 3/2019, we became a working-group member ofthe METI Study Group on Implementing TCFD Recommendations, and have discussions with other group-member companies on the best approach to disclosure of the financial impact
of climate change.

Other
Marubeni also cooperates with sustainability initiatives. We
participate as an advisory member in a World Economic
Forum project team that is bringing together suggestions forpromoting communication between investors and financial
institutions and companies regarding ESG, and we support
the activities of the international environmental protectiongroup, World Wide Fund for Nature. In our businesses, weparticipate in certification systems in areas such as wood
products, marine produce, and vegetable oil. Additionally,
Marubeni subsidiary Mibugawa Electric Power Co., Ltd. takes
part in the Japan Climate Initiative and promotes renewableenergy projects with the aim of creating a society that leaves
a minimal carbon footprint.
For further information on cooperation and collaboration withvarious organizations, please refer to Marubeni’s website:

https://www.marubeni.com/en/sustainability/
environment/approach/Japan REIT Advisors Co., Ltd. Becomes a Signatoryof the Principles for Responsible Investment
Japan REIT Advisors Co., Ltd. (JRA), a Marubeni Group company in the real estate asset management business, conducts
asset management for United Urban Investment Corporation(UUR), a J-REIT (Japanese Real Estate Investment Trust)
listed on the Tokyo Stock Exchange. In November 2018, JRA
became a signatory to the Principles for Responsible Investment (PRI).
For further information on the PRI, please refer to Marubeni’s
website:https://www.marubeni.com/en/news/2018/
release/00045.html

For UUR, one of the largest diversified J-REITs, JRA aims
to reduce various risks and secure mid-to-long-term stableearnings by making real estate investments in varied types ofuse and geographical locations. JRA is also working to
improve sustainability by considering ESG factors for soundmanagement to coexist with society and the environment.
When considering real estate investments, JRA carefully
examines the impact on the environment (asbestos, soil
contamination/pollution, etc.), tenants (anti-social forces,
work environment, etc.), and neighborhood (relationshipwith community, traffic congestion, etc.), in addition to the
profitability of the relevant property.
Due to JRA’s efforts to find environmental issues before
acquisition and to improve environmental performance after
acquisition, UUR has earned comprehensive environmental
performance evaluations for its properties such as CASBEE(Comprehensive Assessment System for Built Environment
Efficiency). Additionally, as of 2018, UUR has earned the GreenStar for four consecutive years in the survey for the Global
Real Estate Sustainability Benchmark (GRESB), the annual
benchmark that assesses sustainability practices in the realestate sector.
For UUR, JRA will continue to keep eyes on ESG issues andmake further efforts to conduct sustainable asset
management.
United Urban Investment Corporation

http://www.united-reit.co.jp/en/
United Urban Investment Corporation
Initiatives for External ESG Recognition

http://www.united-reit.co.jp/en/feature/esg/
environment.html
Japan REIT Advisors Co., Ltd.

http://www.j-reitad.co.jp/en/

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Cooperation with External Initiatives

Handling of MSC/ASC Certified Products
Results in FYE 3/2018
We promoted environment-friendly products by selling MSC/
ASC certified products. (Certified products accounted for
22.5% of total marine products handled in FYE 3/2018.)

The Marubeni Group receives advice regarding coffeelabeling and related matters from the All Japan Coffee Fair
Trade Conference.

Participation in Food Safety Initiatives andAssociations, etc.
Marubeni aims to provide safe, reliable food products andingredients, and to maintain and improve quality management
functions. To achieve this, Marubeni Group companies participate in the activities of the following external organizations
with the goals of gathering information and exchanging
opinions.

Japan Food Additives Association
The Japan Food Additives Association (JAFA) is comprised ofcompanies and organizations that are involved in the production, import, sale and use of food additives in Japan. The
association is a successor to the Federation of Japan Food
Additives Groups, established as a nationwide organization in
October 1982 with the addition of new members.
JAFA works under the guidance of the Ministry of Health,Labour and Welfare and other related government agencies
with the objectives of providing members with accurate
knowledge pertaining to the production, sale, and use of foodadditives, and promoting consumer understanding of safety
and utility. In addition, JAFA seeks to contribute to the sounddevelopment of food-related industries, and to better consumer dietary habits and public hygiene.
The Marubeni Group gathers information about the safety
and functionality of food additives from JAFA, and conducts
its businesses appropriately, receiving advice on matters suchas labeling for food additives and interpretations of the relevant laws.
Japan Food Additives Association

https://www.jafaa.or.jp/13English

All Japan Coffee Fair Trade Conference
The All Japan Coffee Fair Trade Conference formulated the Fair
Competition Code for Labeling of Regular Coffee and InstantCoffee Products, designed to aid consumers in the purchase ofregular coffee and instant coffee products. The code was recognized by the Japan Fair Trade Commission on November 13,
1991, and a notification was published in the Kanpo (the official
gazette of the Japanese Government) on November 27, withfull enforcement starting from May 28, 1993.
On November 29, 1991, the conference was inaugurated asa discretionary body with membership consisting of coffee-related business operators who agree with the objectivesof the conference. It is dedicated to ensuring the fair labelingof coffee products.

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https://www.marubeni.com/en/sustainability/
supply_chain/

All Japan Coffee Fair Trade Conference

http://www.ajcft.org/ (Japanese only)

For further information on MSC/ASC certified products, pleaserefer to Marubeni’s website:

https://www.marubeni.com/en/sustainability/group/
action_plan/

For further information on participation in supply chain initiatives, please refer to Marubeni’s website:

Japan Soft Drink Association
The Japan Soft Drink Association is an industry organizationthat prioritizes shared benefit and public good. The association
aims to ensure rigorous compliance with laws and regulations
among soft drink manufacturers, sellers, and related businesses,
and facilitates smooth coordination of activities between association members and the government. It also promotes, supports, and provides guidance on corporate social responsibility,
encourages healthy consumption of soft drinks, and spreads
awareness and knowledge relating to soft drinks.
Through the Japan Soft Drink Association, the MarubeniGroup receives advice on matters such as beverage labelingand quality management.
Japan Soft Drink Association

http://j-sda.or.jp/about-jsda/english.php

Society of Soft Drink Technologists, JapanThe Society of Soft Drink Technologists, Japan was launched
in 1992 with the objective of providing a forum for soft drink
technologists and researchers to meet and exchange information, while furthering technological innovation and skill development. The society works to provide technical support sothat the soft drink industry can continue to develop in harmony with the public interest.
Through the Society of Soft Drink Technologists, theMarubeni Group receives advice on matters such as beveragelabeling and quality management.
Society of Soft Drink Technologists

http://www.j-sda.or.jp/about-jsda/english.php

Participation in Supply Chain Initiatives
The Marubeni Group is participating in Sedex through Group
companies with the aim of strengthening risk management in
the supply chain and building sustainable supply chains.
Sedex is a collaborative information-sharing platform run
by Sedex Information Exchange Ltd., an NPO based in London.
Sedex enables the carrying out of internationally recognizedsupplier questionnaires on environmental, social and humanrights issues. Responses and audit results are then shared
among members via an online system, reducing the burden on
both suppliers and prime contractors. Sedex enables ethicaland responsible business practices in the supply chain on a
global scale, and is one of the world’s largest supply chain
management systems for issues in the supply chain, encompassing processes from reporting issues to administration.
The Marubeni Group uses this management system tomonitor supply chain issues, thereby expanding ethical business practices.

Supplier Capacity Building
The Marubeni Group offers regular training to suppliers toensure that they correctly understand our Basic Policy on
Supply Chain Sustainability and to deepen their understanding of environmental and social problems. We provide broad
guidance to suppliers and facilitate the expansion of suppliercapacity through a number of initiatives. These initiatives
include sharing of best practices from the Marubeni Groupand suppliers, including initiatives that address environmental
and social issues, and secondment of employees from suppliers to Marubeni Group companies.
For further information on supplier capacity building, pleaserefer to Marubeni’s website:

https://www.marubeni.com/en/sustainability/
supply_chain/Contribution to Sustainable Fisheries
The Pacific bluefin tuna, which plays a key role as one of the
top predators in the Pacific Ocean marine ecosystem, is an
important fishery resource for Japan and other Pacific coastal
countries. However, as a result of overfishing, Pacific bluefin
tuna stocks have dropped to record-low levels, and the sustainability of the stocks is a concern.
Responding to this situation, the Marubeni Group, alongwith five Japanese companies involved in the distribution ofmarine products, released a joint statement in November 2016
pledging to support the conservation and sustainable use ofPacific bluefin tuna. This pledge was declared on a voluntarybasis by the companies that make up the marine productsupply chain under the leadership of WWF Japan.
The Marubeni Group has sought to contribute to sustainable fishing in ways such as promoting sales of products fromcertified fisheries, starting with MSC certified products. In
honoring this pledge, the Marubeni Group will maintain its
commitment to managing fish stocks in a sustainable manner.
For further information on our contribution to sustainablefisheries, please refer to Marubeni’s website:

https://www.marubeni.com/en/sustainability/
supply_chain/social/

Participation in CDP
The Marubeni Group shares information about its ESG initiatives with its stakeholders around the world. As part of thateffort, Marubeni has participated in the initiatives of CDP, an
NGO, since 2007. CDP is a project that calls on companies invarious countries to disclose environmental information, including climate change measures. CDP analyzes and assesses thecollected information, and makes it available to investors. Its
database of environmental information on corporate climatechange measures is one of the largest in the world.

Marubeni Selected as a Nadeshiko Brand
The Ministry of Economy, Trade and Industry (METI) and theTokyo Stock Exchange (TSE) jointly selected Marubeni as aNadeshiko Brand in 2015 and 2017. Marubeni was one of 47
companies selected in 2017. The Nadeshiko Brand began in FYE
3/2013, with METI and TSE jointly selecting and announcing
listed companies that showed excellence in promoting women’s empowerment in the workplace. Evaluations are madebased on the two criteria of “promoting women’s career development” and “support in balancing work and family life,” andcompanies are selected after additional consideration of financial performance. The selected companies
have “management capabilities forutilizing diversified human resources”
and “the ability to adapt to environmental changes,” and therefore canbe considered to be “companies withstrong growth potential.”

Marubeni Certified as an “Eruboshi” Company
Marubeni has been certified as an “Eruboshi” company by the
Ministry of Health, Labour and Welfare for its efforts in promoting women’s participation in the workplace. The “Eruboshi”
certification is granted to companies that apply for it based on
the Act on Promoting Women’s Empowerment in the Workplace, which entered into force on April 1, 2016. Marubeni
received the second highest rank out of the three ranks.
With the Act having entered into
force, Marubeni has stipulated actionplans for promoting women’s participation, and is working to strengthen
the recruitment and human resource
development of female employees.

SUSTAINABLE DEVELOPMENT REPORT 201986

Cooperation with External Initiatives / List of Sustainability Policies

LIST OF SUSTAINABILITY POLICIESMarubeni Receives “Platinum Kurumin”
Certification
Marubeni has received “Platinum Kurumin” certification from
the Minister of Health, Labour and Welfare as an exemplarycompany that offers a higher standard of support for childrearing.
Through our efforts to promote“work-life management,” we will help
individual employees at all life stages
to grow through continuous careerdevelopment, and provide an evenbetter environment for continuing toperform at a high level.

Received Award for Excellence at the HR Award
2018 Held by Nihon no Jinjibu
Marubeni’s strategy for a “‘Human Capital’ × ‘Mechanisms’ ×‘Time’ workstyle surpassing traditional frameworks” received
the Award for Excellence in the Corporate HR Category at the
HR Award 2018 held by the HR portal website, Nihon no Jinjibu, which has 120,000 registered members.

Participation and Cooperation in
Human Rights Initiatives
The Marubeni Group has declared its support for the UN
Global Compact, the principles of which include support andrespect for human rights.
We also participate in the annual UN Forum on Businessand Human Rights, and strive to share our experience andgrasp the latest trends for promoting respect for human rights
among corporations, based on the UN’s Guiding Principles on
Business and Human Rights.
Furthermore, we participate in thetheme-based working groups of the
Global Compact Network Japan.
Through the Human Rights Due Diligence Working Group, we study due
diligence best practices for preventing
human rights violations and apply
these in initiatives for ensuring respectfor human rights within the Company
and throughout our supply chain.

Risks to Human Rights in the Supply Chain
Marubeni has established a Basic Supply Chain Sustainability
Policy, which includes respect for human rights in its guidelines, and continues to work diligently to obtain the understanding and cooperation of business partners. In line withthe provisions of the Modern Slavery Act in the U.K. thatentered into force in October 2015, Marubeni Europe plc,
some Group companies in England, and the Marubeni Head
Office, which has a certain level of control over the businessof these companies, had each issued a statement by the endof September 2018.
For our FY2017 Slavery and Human Trafficking Statement,
please refer to Marubeni’s website.

Category

E (Environmental)

S (Social)https://www.marubeni.com/en/news/2018/
release/00024.html
For our FY2016 Slavery and Human Trafficking Statement,
please refer to Marubeni’s website.

https://www.marubeni.com/en/news/2017/
release/00013.html
For our FY2015 Slavery and Human Trafficking Statement,
please refer to Marubeni’s website.

ESG in general

URL

Marubeni Group Environmental Policy

https://www.marubeni.com/en/sustainability/environment/management/

In Relation to Coal-Fired Power
Generation Business and Renewable
Energy Generation Business

https://www.marubeni.com/en/sustainability/environment/approach/

Water Resources Policy

https://www.marubeni.com/en/sustainability/environment/water/

Basic Policy on Human Rights

https://www.marubeni.com/en/sustainability/human_rights/

Basic Policy on Human
Resource Development

https://www.marubeni.com/en/sustainability/human_resources/fostering/

Basic Policy on Social
Contribution Activities

https://www.marubeni.com/en/sustainability/contribution/?id=anc01

Basic Policy on Occupational
Health and Safety

https://www.marubeni.com/en/sustainability/human_rights/safety/

Basic Policy on Contribution to Local
Communities

https://www.marubeni.com/en/sustainability/contribution/?id=anc05

Marubeni’s Corporate Governance
Code Initiatives

https://www.marubeni.com/en/company/governance/data/20181221cgcord_en.pdf

Compliance Manualhttps://www.marubeni.com/en/company/governance/measure/compliance/manual/
pdf/compliance_manual_201810_en.pdf

Basic Internal Control Policy

https://www.marubeni.com/en/company/governance/measure/internal_control/

Basic Policy of Disclosure

https://www.marubeni.com/en/company/governance/disclosure/

IR Policy

https://www.marubeni.com/en/company/governance/disclosure/

Basic Supply Chain
Sustainability Policy

https://www.marubeni.com/en/sustainability/supply_chain/

Policy on Activities for Food Safety

https://www.marubeni.com/en/sustainability/environment/social/

Forest Management Policy

https://www.marubeni.com/en/sustainability/environment/forest/

Product Procurement Policy(Forest-derived Products)

https://www.marubeni.com/en/sustainability/environment/forest/

Policy on Environmental and Social
Initiatives in the Real Estate Business

https://www.marubeni.com/en/sustainability/environment/social/

Policy on Mine Closures

https://www.marubeni.com/en/sustainability/environment/social/

G (Governance)

https://www.marubeni.com/en/news/2016/
release/00046.html

The U.K. Modern Slavery Act applies to companies that
operate within the U.K. with annual worldwide turnover of 36
million GBP or more. Companies are required to implement
step-by-step measures, and to issue a statement by the following fiscal year, in order to confirm that there are no abusesof human rights, such as instances of slavery or human trafficking, within the companies themselves or their supply chain.
In addition, the Marubeni Group uses supply chain sustainability surveys to investigate the status of supplier efforts
related to risks to human rights, such as forced labor and childlabor. We are taking measures to prevent the manifestationand impact of risks, including identifying risks involving humanrights. Since February 2011, supply chain sustainability surveys
also cover the status of human rights risks at our suppliers
based on the results of questionnaires and on-site assessment.
No cases of violation of human rights or labor standards havebeen found in these surveys.

PolicyDialogue with External Stakeholders regarding
Human Rights Risk and Impact
The Marubeni Group conducts dialogues with external stakeholders about the risks and impacts of human rights violationsin the Group’s business through organizations such as the
NGO Business & Human Rights Resource Centre. The resultsof these dialogues are reflected in the spirit of the MarubeniGroup’s Basic Policy on Human Rights.

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