Marubeni Corporation
7-1, Nihombashi 2-chome, Chuo-ku,
Tokyo 103-6060, Japan
Tel: 81-3-3282-2111
www.marubeni.com/en/

Building a Better Tomorrow

SUSTAINABLE
DEVELOPMENTREPORT 2019
Marubeni Corporation

CONTENTS
Sustainability and Marubeni
3

Our Views on Sustainability

5

Fundamental Materiality

7

Environmental & Social Materiality
8

1. Climate Change

10

2. Sustainable Forestry

13

3. Human Rights & Co-development with Communities

15 4. Sustainable & Resilient Value Chains
17

Organization

Editorial Policy

Publication Date

The Sustainable Development Report is meant to serve as a tool forcommunicating with stakeholders and gaining the trust of greater
society. This report summarizes information pertaining to each ESG
item that we disclose in the Integrated Report and on our website.
Our views on sustainability and related policies and activities thatappear in this report were first considered and discussed by the
Sustainability Management Committee and have been reported toand adopted with the approval of the Board of Directors. To providea systematic explanation of the Marubeni Group’s corporate value,
the Integrated Report is compiled in an integrated form that
describes our quest to create both corporate and social value.

March 2019 (English version)

Reporting Period
The information covered in this report is primarily from FYE 3/2018(April 1, 2017 to March 31, 2018). Parts of the report also cover policies and activities from before April 1, 2017 or after April 1, 2018.

Reporting Scope

ESG Policies and Data
19

Environmental
19

1. Climate Change

23 2. Environmental Management System (EMS)
30 3. Biodiversity
35 4. Pollution and Resources
38 5. Supply Chain: Environment

The scope of this report covers Marubeni Corporation and MarubeniGroup companies (consolidated subsidiaries).

Guidelines Referenced• United Nations Global Compact• GRI Sustainability Reporting Standards(GRI Standards)• ISO 26000:2010, International Organizationfor Standardization• Environmental Accounting Guidelines 2005,
Ministry of the Environment• Guidance for Collaborative Value Creation,
Ministry of Economy, Trade and Industry

Disclaimer Regarding Forward-Looking Statements
This report contains forward-looking statements about the future
performance, events or management plans of Marubeni Corporationand its Group companies (the Company) based on the available
information, certain assumptions and expectations at the point of
disclosure, of which many are beyond the Company’s control. These
are subject to a number of risks, uncertainties and factors, including,but not limited to, economic and financial conditions, factors that
may affect the level of demand and financial performance of the
major industries and customers we serve, interest rates and currency
fluctuations, availability and cost of funding, fluctuations in commodity and materials prices, political turmoil in certain countries andregions, litigation claims, changes in laws, regulations and tax rules,
and other factors. Actual results, performances and achievements
may differ materially from those described explicitly or implicitly inthe relevant forward-looking statements.
The Company bears no responsibility for any possible damages
arising from the use of information in this report, nor does the Company have any obligation to update these statements, information,
future events or otherwise.
This report is an English language translation of the materials
originally written in Japanese. In case of discrepancies, the Japaneseversion is authoritative and universally valid.

41 6. Water

45

1. Supply Chain: Society

48 2. Labor Practices

Communication
Framework
Stakeholder
Engagement• One-on-one meetings (for analysts, institutional investors)• Earnings briefings (for analysts, institutional investors)• Business briefings and tours (for analysts, institutional investors)• Briefings for individual investors• General meeting of shareholders

Reports• Financial Results• IR Materials• Consolidated Financial Statements with
Independent Auditors’ Report• Business Report

57 3. Human Rights and Local Communities
60 4. Health and Safety
67 5. Responsibility to Customers
69 Governance69

1. Corporate Governance78 2. Compliance
81
83

3. Risk Management

Sustainability Case Studies

84 Cooperation with External Initiatives
88

1

List of Sustainability Policies

MARUBENI CORPOR ATION

LinkageFinancial Information

INTEGRATED REPORT 201845 Social

Non-Financial Information• Lectures by experts• Public meetings• Stakeholder dialogue• Sustainable
Development Report• Integrated
Report

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紅
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社
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書
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今日より豊かな未来を創る(Japanese)(English)• Corporate Governance
ReportSUSTAINABLE
DEVELOPMENTREPORT 2019
丸紅株式会社
サステナブル・デベロップメント・レポート 2019

OnlineResources• Investor Relations
https://www.marubeni.com/en/ir/• Sustainability
https://www.marubeni.com/en/sustainability/• Our Way to Sustainability• Global Environment & Climate Change• Respect for Human Rights• Supply Chain Management• Social Contribution• Human Resource Development & Utilization• Sustainability Initiatives through Our Business• Social Contribution Activities

SUSTAINABLE DEVELOPMENT REPORT 2019

2

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

3

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.

5

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

SUSTAINABLE DEVELOPMENT REPORT 20198

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.

SUSTAINABLE DEVELOPMENT REPORT 201910

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

ENVIRONMENTAL
1. CLIMATE CHANGE

Framework
Implementation System
The Sustainability Management Committee plays the mainrole in our approach related to climate change by making
action plans and promoting various measures.
The Committee is chaired by the Chief Financial Officer(currently Senior Managing Executive Officer, Member of theBoard). Committee members consist of advisors including
External Directors and External Audit & Supervisory Board
Members, in addition to representatives from the Corporate
Staff Group and Business Divisions.

PolicyThe Marubeni Group has identified climate change as one ofits four categories of Environmental and Social Materiality, andwill proactively contribute to climate change countermeasuresthrough its businesses.

Climate Change, see page 8.

Committee meetings include extensive discussion of ourcompany-wide commitment, outcomes, and how we approachbusinesses contributing to climate change countermeasuresand activities contributing to local communities and residents
through our businesses.
These initiatives are reported to the Board of Directors ona regular basis, and are ultimately managed under the supervision of the Board of Directors.

Action Plans and Targets
Energy Conservation, Natural Resource
Conservation, and Waste Reduction Activities
In accordance with the policies of the Commitment to a Low
Carbon Society proposed by the Japan Business Federation(“Keidanren”), Marubeni is taking action on climate change
and has set targets for reducing energy usage (electricity andgas) 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.
Numerical targets and results for energy conservation,
natural resource conservation and waste reduction efforts for
FYE 3/2018 are shown below.

Numerical Targets for FYE 3/2021

Results in FYE 3/2018(1) Energy Consumption at Tokyo Head Office andOsaka Branch

Reduce energy usage (electricity and gas) by
10.5% compared to FYE 3/2010

72.5% decrease from FYE 3/2010(2) Waste Generation at Tokyo Head Office

Reduce waste generation by 30% comparedto FYE 3/2011

98.5% decrease from FYE 3/2011(3) Waste Recycling Rate at Tokyo Head Office

Achieve a waste recycling rate of 90% or
more

22.1%

(4) Water Consumption at Tokyo Head Office

Reduce water consumption by 3% comparedto FYE 3/2011

95.4% decrease from FYE 3/2011

Note: After setting target values, the Osaka Branch moved in July 2015, and the Tokyo Head Office moved to a temporary location in September 2016 (dueto the reconstruction of the permanent headquarters). At the Tokyo Head Office (for FYE 3/2018 until reconstruction is completed in 2020), goals
commensurate with management methods at its temporary location have been set for waste generation, recycling rate and energy consumption, andefforts are being made to reduce energy usage, recycle more, and waste less.

For further information on energy conservation, natural resource conservation and waste reduction activities, please refer to Marubeni’s website:

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

19

MARUBENI CORPOR ATION

Cooperation with External Organizations
Cooperation and Collaboration with Various
Organizations
Marubeni is committed to proactively and appropriately
engaging in diverse climate change countermeasures throughcooperation and collaboration with various stakeholders,regardless of the level of influence of the stakeholder or affiliated industry group.

Industry Groups
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.

Other
The Marubeni Group supports the activities of the international environmental protection group, World Wide Fund for
Nature. Marubeni participates in certification systems in areas
such as wood products, seafood, and vegetable oil. Additionally, Marubeni subsidiary Mibugawa Electric Power Co., Ltd.
takes part in the Japan Climate Initiative and promotes renewable energy projects with the aim of creating a society thatleaves 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/Governments and Government Offices
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.

SUSTAINABLE DEVELOPMENT REPORT 201920

Environmental > 1. Climate Change

Related Data
The charts below show the results of our efforts over the past
five years for energy conservation, natural resource conservation and waste reduction.
are assured by
The environmental data marked with
KPMG AZSA Sustainability Co., Ltd., through an independent
assurance engagement in accordance with the International
Standard on Assurance Engagements (ISAE) 3000, “Assurance Engagements Other than Audits or Reviews of Historical
Financial Information” (revised December 2013), and ISAE
3410, “Assurance Engagements on Greenhouse Gas Statements” (June 2012).
For KPMG AZSA Sustainability’s Independent Assurance Report,
please refer to Marubeni’s website:

https://www.marubeni.com/en/sustainability/
environment/env_data/pdf/KPMG2018_EN.pdf

Energy and Electricity Consumption
Marubeni Corporation’s six principal offices: Electricity consumptionM arubeni Corporation’s other offices + consolidated subsidiaries:
Energy consumption(MWh)(TJ)
20,00020,00015,00010,00012,645
9,554

9,473

12,74013,532

9,167

15,00010,000

7,239

5,000

5,000

FYE
3/2014FYE
3/2015FYE
3/2016FYE
3/2017FYE
3/20180(MWh)(TJ)

Greenhouse Gas (CO2) Emissions (Energy-related)

1,000,000

959,276

950,000

907,409

900,000

Electricity consumptionof Marubeni Corporation’s six principal
offices

Energy consumption of
Marubeni Corporationand consolidated
subsidiaries

FYE 3/2014

9,554

—

FYE 3/2015

9,473

—

FYE 3/2016

9,167

12,645FYE 3/2017

7,239

12,740FYE 3/2018

5,021

13,532850,000

Activities for Tracking and Managing
the Supply Chain

10,000

4,619

4,515

4,978

FYE
3/2014FYE
3/2015FYE
3/2016

5,000
0

FYE
3/2017FYE
3/2018(t-CO2)
Scope 1Marubeni
Corporation’s six
principal
officesMarubeni
Corporation’s otheroffices andconsolidated
subsidiaries

FYE
3/2014137

FYE
3/2015FYE
3/2016FYE
3/2017FYE
3/2018

Scope 2

SubtotalMarubeni
Corporation’s six
principal
officesMarubeni
Corporation’s otheroffices andconsolidated
subsidiaries

Subtotal

—

137

4,482

—

4,482

4,619

135

—

135

4,380

—

4,380

4,515

91

—

91

4,887

—

4,887

4,978

41

626,237

626,278

3,425

277,706

281,131

907,4094

682,402 682,406

2,457

274,413

Total

276,870959,276

In recent years, companies have been required to further disclose information related to climate change and resource
issues, in the interest of building a sustainable society. In calculating greenhouse gas (GHG) emissions that have significant
effects on climate change, in addition to Scope 1 (directemissions) and Scope 2 (indirect emissions from the use ofpurchased energy), more and more companies are taking
account of and reporting GHG emissions for their overall corporate activities (Scope 3) such as resource procurement,
production, logistics, sales, and disposal, as well as capital
goods, business travel, and commuting. The Marubeni Groupis voluntarily disclosing a part of the data by categorizing its
supply chain activities and calculating the GHG emissions ineach category in line with the GHG Protocol guidelines, which
are the international standard. The Scope 3 data is also submitted in the Carbon Disclosure Project (CDP) climate change
questionnaire.
For further information on Scope 3, please refer to
Marubeni’s website:

https://www.marubeni.com/en/sustainability/
environment/env_data/pdf/Scope3_201803.pdf

21

MARUBENI CORPOR ATIONTokyo Head Office

Recognizing the importance of climate-related financial disclosure, the Marubeni Group has affirmed its commitment to
the TCFD recommendations, and is working to understandand enhance disclosure of the financial impact of the risks andopportunities arising from climate change.
In addition, the Marubeni Group is conducting scenario
analysis to analyze the impact that climate change is likely tohave on its businesses and finances. The Marubeni Group will
analyze the risks, opportunities and impacts on its businesses
from climate change based on a Current Policies Scenario andthe 2.0°C Scenario, and will use the results in consideringbusiness plans and strategies.

Marubeni submits plans to the Tokyo Metropolitan Government
describing its measures to reduce the CO2 emissions volume of
the Tokyo Head Office by approximately 17% from the reference
value (average emissions from April 2002 to March 2005)
during the five years from April 2015 to March 2020.
The emissions volume in FYE 3/2016 was 4,422 t-CO2, adecrease of approximately 36% compared to the reference
value.

5,021

0Marubeni Corporation’s six principal offices: Scope 1
Marubeni Corporation’s six principal offices: Scope 2
 arubeni Corporation’s other offices + consolidated subsidiaries: Scope 1
MM arubeni Corporation’s other offices + consolidated subsidiaries: Scope 2(t-CO2)

Initiatives Related to TCFD Recommendations

Initiatives• In feed ingredients procurement in the Food Group, taking
into account the possibility of increases in product prices andtransportation costs due to a decrease in production volume
in the agriculture and livestock industries resulting from climate change, the Marubeni Group is actively responding to
the risks that accompany climate change by viewing them asopportunities. This response includes geographic diversification of suppliers and customers, cultivation of new production
regions, research and development of alternative and new
products, and acquisition of new partners.
• In the power generation business of the Power Business &Plant Group, in September 2018 Marubeni released the Notification Regarding Business Policies Pertaining to Sustainability (In Relation to Coal-Fired Power Generation Businessand Renewable Energy Generation Business) to promote
reduction of GHG emissions from its power generation portfolio, based on transition risks such as changes in the energy
mix of each country under the 2°C Scenario, tightening of
regulations, changes in systems, and changes in stakeholder
awareness. On the other hand, the increase in renewableenergy projects, upgrades and efficiency improvements ofexisting power plants, the increase in energy storage andpower system stabilization projects, and the increase in distributed power sources will present business opportunities,
and we will therefore take a more active approach in the areaof clean energy generation. Furthermore, Marubeni recognizes the financial impact from changes such as insurance
premium increases as a transition risk based on the Current
Policies Scenario, and will use it for reference when formulating medium- and long-term strategies.

Environmental Protection at the Tokyo Head
Office and Tama Center
Marubeni is taking steps to address the Carbon Reduction
Reporting Program based on the Tokyo Metropolitan Ordinance on Environmental Preservation.

Tokyo Head Office: Past Submissions ofCarbon Reduction Reports
Covering FYE 3/2011-FYE 3/2015

Submitted in November 2011

Covering FYE 3/2011-FYE 3/2015

Submitted in November 2012

Covering FYE 3/2011-FYE 3/2015

Submitted in November 2013

Covering FYE 3/2011-FYE 3/2015

Submitted in November 2014

Covering FYE 3/2011-FYE 3/2015

Submitted in November 2015

The Tokyo Head Office was relocated in September 2016,
and notification of the closure of a specified global warming
countermeasure site was submitted to the Tokyo Metropolitan
Government in October 2016.
Tokyo Head Office: Past Submissions ofCarbon Reduction Reports of Specified Tenants, etc.
Covering FYE 3/2016-FYE 3/2020

Submitted in October 2017

Covering FYE 3/2016-FYE 3/2020

Submitted in October 2018

Tama Center
Marubeni submits plans to the Tokyo Metropolitan Government describing its measures to reduce the CO2 emissions
volume of the Tama Center, a training center managed by the
Tokyo Head Office, by approximately 15% from the reference
value (average emissions from April 2005 to March 2008)
during the five years from April 2015 to March 2020.
The emissions volume in FYE 3/2016 was 6,818 t-CO2, adecrease of approximately 47% compared to the reference
value.
Tama Center: Past Submissions of Carbon Reduction Reports
Covering FYE 3/2011-FYE 3/2015

Submitted in November 2011

Covering FYE 3/2011-FYE 3/2015

Submitted in November 2012

Covering FYE 3/2011-FYE 3/2015

Submitted in November 2013

Covering FYE 3/2011-FYE 3/2015

Submitted in November 2014

Covering FYE 3/2011-FYE 3/2015

Submitted in November 2015

Covering FYE 3/2016-FYE 3/2020

Submitted in November 2016

Covering FYE 3/2016-FYE 3/2020

Submitted in November 2017

Covering FYE 3/2016-FYE 3/2020

Submitted in November 2018

SUSTAINABLE DEVELOPMENT REPORT 201922

Environmental > 2. Environmental Management System (EMS)

2. ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)

Framework
Environmental Assessment of Development
Projects and Financing/Investment

PolicyThe Marubeni Group Environmental Policy, which was established in
1998, was updated in January 2019 under the leadership of theEnvironment Committee to strengthen environmental considerations in the Marubeni Group’s business operations.

Marubeni Group Environmental Policy
Updated in January 2019

Basic Principles
As a global corporate entity that engages in diverse business activities across a broad range of sectors, the MarubeniGroup will apply the Environmental Management System
to all the activities, services and products of the MarubeniGroup, and observe the following principles it has established for environmental conservation.
1. All business activities will be conducted in considerationof their possible impact on the environment. We willcontribute in cooperation with stakeholders to the preservation of the environment and the reduction of potential environmental impacts, including efficient use ofresources, prevention of pollution and taking appropriate
steps to address climate change and protect biodiversity,
focusing on the five themes below.
(1) Compliance with international and local applicable
environmental guidelines, laws and regulations, andagreed requirements;(2) Taking measures as necessary to reduce environmental impacts and prevent pollution, particularly inlaunching new projects and altering existing projects;(3) Facilitating resource and energy conservation (mineral resources, food and water, etc.)*1, waste reduction, green procurement, and increases in operational
efficiency;*2(4) Promoting business projects, offering products andservices, technical development and building social
systems that help protect and improve theenvironment;(5) Addressing climate change, striving to minimize
greenhouse gas emissions.
2. In keeping with this Environmental Policy, the MarubeniGroup’s Environmental Management System will be regularly reviewed to improve our environmental performance, fully conscious of the importance to comply with
its requirements.
3. This Environmental Policy will be shared with all MarubeniGroup officers and employees, employees of the Group’sbusiness partners, and the public.
＊1. “Energy conservation” in 1. (3) includes energy conservation in business facilities and logistics.
＊2. The Marubeni Group will conduct appropriate maintenance for“resource and energy conservation, waste reduction” and “increases
in operational efficiency” in 1. (3).

Before launching a development project or ﬁnancing or investing in a business, Marubeni assesses the project’s conformity
with environmental laws and regulations and the levels of
possible adverse impact on the environment in the event of an
accident or other emergency using the Environmental Evaluation Sheet. The complete evaluation sheet is used in making
the ﬁnal decision on whether the project should proceed.
Follow-up evaluation is also conducted for projects considered to have potential environmental risks as a result of theinitial assessment. Follow-up is continued until all concerns
have been dispelled. In FYE 3/2018, we assessed 45 projects
with environmental risks, including projects for natural
resources and energy development, real estate development
and others.
We also conduct assessments such as regular survey visitsthat take into account business details, location, and thestatus of facilities, not only for potential new operations or
projects, but also for our existing operations and projects. We
try to grasp the environmental impact, and share information
for improvement.

Number of Environmental Assessments in FYE 3/2018
by Risk Type
Atmospheric pollution

16

Water pollution

21

Soil pollution

14

Noise/Vibration

17

Offensive odor

3

Waste increase

7

Natural resource depletion

5

Global warming

5

Biodiversity

2

Others

0

Total

90

Note: The total is not equal to the aggregate of 45 environmental
assessments conducted as some assessments identified no applicable risks, while others detected more than one risk.

Action Plans and Targets
Energy Conservation, Natural Resource
Conservation and Waste Reduction Activities
In accordance with the policies of the Commitment to a Low
Carbon Society proposed by Keidanren, Marubeni is taking
action on climate change and has set targets for reducing
energy usage (electricity and gas) at the Tokyo Head Officeand the Osaka Branch in FYE 3/2021 by 10.5% compared to
FYE 3/2010, and is moving forward with the introduction ofenergy-efficient equipment.
Numerical targets and results for energy conservation,
natural resource conservation and waste reduction efforts for
FYE 3/2018 are shown below.

Numerical Targets for FYE 3/2021

Results in FYE 3/2018

Reduce energy usage (electricity and gas)by 10.5% compared to FYE 3/2010

72.5% decrease from FYE 3/2010(2) Waste Generation at Tokyo Head Office

Reduce waste generation by 30% compared to FYE 3/2011

98.5% decrease from FYE 3/2011(3) Waste Recycling Rate at Tokyo Head Office

Achieve a waste recycling rate of 90% or
more

22.1%

(4) Water Consumption at Tokyo Head Office

Reduce water consumption by 3% compared to FYE 3/2011

95.4% decrease from FYE 3/2011(1) Energy Consumption at Tokyo Head Office andOsaka Branch

Note: After setting target values, the Osaka Branch moved in July 2015, and the Tokyo Head Office moved to a temporary location in September 2016 (dueto the reconstruction of the permanent headquarters). At the Tokyo Head Office (for FYE 3/2018 until reconstruction is completed in 2020), goals
commensurate with management methods at its temporary location have been set for waste generation, recycling rate and energy consumption, andefforts are being made to reduce energy usage, recycle more, and waste less.

For further information on energy conservation, natural resource conservation and waste reduction activities, please refer to Marubeni’s website:

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

23

MARUBENI CORPOR ATIONSUSTAINABLE DEVELOPMENT REPORT 201924

Environmental > 2. Environmental Management System (EMS)

Specially Controlled Industrial Waste Output

Initiatives (Examples)
Marubeni Group’s Environmental Initiatives
Establishment of Environmental Goals
At the beginning of each ﬁscal year, Marubeni identiﬁes issues
speciﬁc to each group regarding environmental risk management, Marubeni Group company administration, environmental business promotion, energy conservation, resource
conservation, and other related matters using the Environmental Plan/Check Sheet. Marubeni then establishes environmental goals for each group and conducts related activities toachieve them.

Assessment of Environmental Performance
Inspection
Each group at Marubeni formulates environmental actionplans at the beginning of each ﬁscal year and self-checks its
progress against the plan in September and February using
the Environmental Plan/Check Sheet.

Auditing
Internal auditors perform annual environmental audits on
Marubeni Corporation and subsidiaries with multi-site
certiﬁcation.
In addition, our environmental performance is subject toaudits twice a year by Lloyd’s Register Quality Assurance Ltd.
(LRQA), an ISO 14001 certiﬁcation and registration
organization.
In FYE 3/2018, the LRQA assessment found no signiﬁcantissues in our EMS.

Compliance with Environmental Laws and Regulations
Each department at Marubeni and subsidiaries list applicable
environmental laws, regulations, standards, and rules, andperform periodic reviews to ensure compliance with the regulatory requirements.
During FYE 3/2018, Marubeni conducted an assessment todetermine whether its 102 departments and 106 MarubeniGroup companies were in compliance with Japan’s Waste
Management and Public Cleansing Act.
Marubeni also conducted an e-learning training programon issues related to the Waste Management and Public
Cleansing Act for all executives and employees, including
temporary employees. At the same time, external experts
were invited to speak at seminars held on the same topic at
the Tokyo Head Ofﬁce and major domestic branches (Osaka,
Nagoya, Hokkaido and Kyushu). In total, 579 Marubeni Group
employees participated in the training program. We also conducted more practical and hands-on forms of training for
respective groups.

25

MARUBENI CORPOR ATIONAs a result of these and other initiatives, there were noserious violations of environmental laws or regulations by the
Marubeni Group in FYE 3/2018.

Promoting Environmental Consideration at
Marubeni Group Companies
In an effort to reduce the environmental impact of our overallbusiness operations, Marubeni Group companies are encouraged to support and join environmental conservation activities, which are conceived in accordance with the MarubeniGroup Environmental Policy. We also monitor ISO 14001 certification status, emergency response measures, and environmental management systems of Marubeni Group companies.
In addition, Marubeni Group companies are asked to ensurecompliance with environmental laws and regulatory requirements and develop contingency plans for emergencies.

Operating Companies’ Environmental
Performance Review
Aiming to reduce the environmental impact of its operations
across the Group, the Marubeni Group conducts a survey-based
annual review of Marubeni Group companies’ environmental
performance.
This detailed assessment includes identiﬁcation and status
conﬁrmation of elements within our operations that impact
the environment, applicable environmental laws and regulations, emergency response measures, and environmental
problems.

Site Inspection at Marubeni Group Companies Yet to
Acquire ISO 14001 Certiﬁcation
Marubeni conducts on-site inspections of Marubeni Group
companies in Japan that are engaged in activities that have arelatively high risk of signiﬁcant environmental impact. By
classifying Marubeni Group companies according to theirpotential environmental impact based on operational details
and the condition of facilities, Marubeni determines which
companies to inspect and how often. For these inspections,Marubeni personnel visit the plants and ofﬁces of the target
companies together with auditors from LRQA, to inspect thesites, check systems designed to ensure compliance withenvironmental requirements, and conﬁrm the companies’
environmental risk control status. During FYE 3/2018, 25 sites
at 21 domestic and overseas companies were inspected. The
on-site inspections identified no significant issues at any of
the companies. Going forward, Marubeni will continue working to enhance its environmental management system acrossthe Marubeni Group.

Marubeni Corporation monitors and reports its output ofspecially controlled industrial waste defined in the Waste
Management and Public Cleansing Act. This includes polychlorinated biphenyl (PCB) waste, etc., such as PCB contaminated items, and processed PCB, which we dispose of inaccordance with the legal disposal period.
Specially Controlled Industrial Waste Output (Tons)
FYE 3/2016

0

FYE 3/2017

8.6

FYE 3/2018

0Each of our domestic subsidiaries appropriately monitors
and reports amounts of specially controlled industrial waste
in accordance with the Waste Management and Public
Cleansing Act.

Environmental Management System
Marubeni has introduced an environmental management
system (EMS) based on ISO 14001 as a tool to assist all
employees in addressing environmental issues based on acommon understanding.
Marubeni obtained ISO 14001 certification in 1998. Since
then, one overseas subsidiary and other Marubeni Group
companies have obtained certification as needed. As of March
31, 2018, 52 Marubeni Group companies (about 12%) havebeen certified.
The EMS utilizes a PDCA cycle to ensure ongoing improvement. The cycle includes planning, implementation andoperation, inspection, management and review of environmental measures.

Marubeni Group Subsidiaries with
Multi-site Certification
The Marubeni Group in this Policy includes Marubeni Corporation and the subsidiaries with multi-site certification listed
below:Marubeni Group Subsidiaries with
Multi-site Certification• Marubeni Corporation• Yamaboshiya Co., Ltd.
• Marubeni Information Systems Co., Ltd.
• Marubeni Chemix Corporation• Marubeni Plax Corporation• Marubeni Paper Recycle Co., Ltd.
• Marubeni Pulp & Paper Co., Ltd.
• Marubeni Power Systems Corporation• Marubeni Service Corporation
Note: We shall publish the list of Marubeni Group Subsidiaries with Multi-site
Certification together with the Marubeni Group Environmental Policy
at all times.
For the list of Marubeni Group Subsidiaries with Multi-site Certification, please refer to Marubeni’s website:

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

For further information on the environmental management
system, please refer to Marubeni’s website:

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

SUSTAINABLE DEVELOPMENT REPORT 201926

Environmental > 2. Environmental Management System (EMS)

Related Data
Greenhouse Gas (CO2) Emissions (Energy-related)

Energy and Electricity Consumption

Marubeni Corporation’s six principal offices: Scope 1
Marubeni Corporation’s six principal offices: Scope 2
 arubeni Corporation’s other offices + consolidated subsidiaries: Scope 1
MM arubeni Corporation’s other offices + consolidated subsidiaries: Scope 2(t-CO2)Marubeni Corporation’s six principal offices: Electricity consumptionM arubeni Corporation’s other offices + consolidated subsidiaries:
Energy consumption(MWh)(TJ)

1,000,000

20,00020,000

Water Consumption

Waste GeneratedM arubeni Corporation’s six principal officesM arubeni Corporation’s other offices + consolidated subsidiaries(Thousand m3)M arubeni Corporation’s six principal officesM arubeni Corporation’s other offices + consolidated subsidiaries(Tons)
108,539

60,000110,000

99,531
52,37555,00051,025100,000

50,52950,00090,000959,276

950,000

15,000907,409

900,000
10,00012,645
9,554

9,473

12,74013,532

9,167

10,0007,239

850,000

15,000

5,021
10,000

5,000

4,619

4,515

5,000

4,978

150

80,000

96

97

100

1,000

50

500

0

FYE
3/2014FYE
3/2015

5,000
0
0

FYE
3/2014FYE
3/2015FYE
3/2016FYE
3/2017FYE
3/2018FYE
3/2014Marubeni
Corporation’s six
principal
offices

FYE
3/2014137

FYE
3/2015135

Subtotal

—

137

—

135

Marubeni
Corporation’s six
principal
offices

4,482
4,380

Marubeni
Corporation’s otheroffices andconsolidated
subsidiaries

Subtotal

—

4,482

—

FYE
3/2018Energy consumption of
Marubeni Corporationand consolidated
subsidiaries

FYE 3/2014

9,554

—

FYE 3/2015

9,473

—

FYE 3/2016

9,167

12,645FYE 3/2017

7,239

12,740

Total

4,380

FYE
3/2017

Electricity consumptionofMarubeni Corporation’s
six principal offices

Scope 2Marubeni
Corporation’s otheroffices andconsolidated
subsidiaries

FYE
3/2016

4,619
4,515

FYE
3/2016

91

—

91

4,887

—

4,887

4,978

FYE
3/201741626,237

626,278

3,425

277,706

281,131

907,409

FYE
3/20184

682,402 682,406

2,457

274,413276,870959,276

For further information on greenhouse gas (CO2) emissions(energy-related), please refer to Marubeni’s website:

FYE 3/2018

5,021

13,532For further information on energy consumption, please refer to
Marubeni’s website:

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

FYE
3/20170FYE
3/2018531

FYE
3/2014FYE
3/2015FYE
3/2016FYE
3/2017FYE
3/2018(Tons)

Water consumption of
Marubeni
Corporation’s
six principal
offices

Water consumption of
Marubeni
Corporation’s
other offices
and consolidated
subsidiaries

Total

FYE 3/2014

96

—

—

FYE 3/2015

97

—

—

FYE 3/2016

91

52,28352,3750(MWh)(TJ)(t-CO2)
Scope 1FYE
3/2015FYE
3/2016791

580

FYE 3/2017

40

50,98551,025FYE 3/2018

4

50,52550,529*For further information on water consumption, please refer to
Marubeni’s website:

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

FYE 3/2014

Waste generated byMarubeni
Corporation’s
six principal
officesWaste generated byMarubeni
Corporation’s
other offices
and consolidated
subsidiaries

Total

580

—

—

FYE 3/2015

531

—

—

FYE 3/2016

791

—

—

FYE 3/2017

432

108,107108,539

FYE 3/2018

6

99,526

99,531

For further information on waste generated, please refer to
Marubeni’s website:

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

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

27

MARUBENI CORPOR ATIONSUSTAINABLE DEVELOPMENT REPORT 201928

Environmental > 2. Environmental Management System (EMS) / 3. Biodiversity

Environmental Management System: Number ofReported Cases/Corrective Actions
We have an established system to report/correct cases related
to administrative guidance and non-compliance with laws/
ordinances in the operation of the Environment Management
System. These cases are shared across the company, andmeasures are taken to prevent recurrence.
Number of Reported Cases/Corrective Actions

Number of corrective actions

3
3(of which 3 include fines/penalties)

Total fines¥9 million*

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

Marubeni provides environmental education to its employees
to help raise their awareness of relevant issues. In FYE 3/2018,
the CSR/Global Environment e-learning Training Program wasconducted for all executives and employees, including temporary employees. Approximately 3,000 executives and employees participated in the training program. Marubeni organizes avariety of programs, including environmental training designed
for new employees. Other speciﬁc programs include: theEnvironmental Officers e-learning Training Program and theISO 14001 Internal Environmental Auditors Training Program.
In addition, personnel who perform a leading role in the implementation and operation of the EMS must receive ISO Environmental Auditors Training, which is conducted by external
training organizations.
Environmental Training Programs and Seminars
in FYE 3/2018

29

Training Program/Seminar

Number ofParticipants

ISO 14001 Internal Environmental Auditors Training
Program (Tokyo, Osaka)

75

Seminar on the Waste Management and Public
Cleansing Act (Tokyo, Osaka, Nagoya, Hokkaido,
Kyushu)579

CSR/Global(e-learning)

2,729

Training on the Waste Management and Public
Cleansing Act (e-learning)

3,089

Group-Speciﬁc Training on the Waste Management
and Public Cleansing Act

175

MARUBENI CORPOR ATION

14,413Administration cost

195,941

R&D cost
Social activity cost0

3. BIODIVERSITY
PolicyAs specified in the Marubeni Group Environmental Policy, theMarubeni Group always considers its impact on the environment, and will contribute in cooperation with stakeholders to
the preservation of the environment and the reduction ofpotential environmental impacts, including efficient use ofresources, prevention of pollution and taking appropriate
steps to address climate change and protect biodiversity.

Marubeni Group Environmental Policy, see page 23.

Forest Management Policy, see page 10.

14,5580234,411＊	Aggregate data based on the Ministry of the Environment’s Environmental Accounting Guidelines 2005

For further information on environmental protection costs,
please refer to Marubeni’s website:

Environmental Education and Training

Program

9,500

Upstream/Downstream cost

Total

For further information on the number of reported cases/corrective actions, please refer to Marubeni’s website:

Training

Environmental Accounting for FYE 3/2018*(Thousands of yen)

Environmental remediation cost

＊ Converted to yen at the median rate for March 31, 2018

Environment

Environmental protection costs for Marubeni’s six principal
offices (Tokyo Head Office and Hokkaido, Chubu, Osaka,
Kyushu and Shizuoka branches) for FYE 3/2018 are shown
below.

Business area cost

FYE 3/2018
Number of reported cases

Environmental Protection Costs

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

Initiatives (Examples)
Renewable Energy Generation
With the entry into force of the Paris Agreement in 2016, andthe planning that is under way toward international frameworks for global warming in 2020 and beyond, there has beena rise in interest in diversification of energy sources andrenewable energy.
Renewable energy sources, including wind, geothermal,
solar and hydroelectric power, emit virtually no carbon dioxide, a cause of global warming, and do not deplete natural
resources. For these reasons, renewable energy can play asignificant role in preservation of the global environment.

Biodiversity-friendly Micro-scale
Hydro-power Projects
The Marubeni Group considers micro-scale hydro-power
generation as an important business area, and has been conducting operations in this area through Group company Mibugawa Electric Power Co., Ltd. since 2006. As this business
utilizes natural energy sources, consideration for the environment is essential, and we are also actively working on reduction of waste materials, maintenance of water quality,
conservation of energy and resources, and other environmental activities.

“Micro-scale hydro-power” is a term used to refer to smallscale hydropower generation operations with output of lessthan 1,000 kW. These operations do not require the use ofdams or other facilities that entail large-scale construction
projects, but rather generate power by utilizing streams oragricultural irrigation canals, thus minimizing the development
footprint. The environmental impact on water quality and thewater habitat is exceptionally low, and there is no impact onland features or scenic beauty. Once up and running, these
operations emit almost no CO2, thereby offering benefits interms of minimal impact on biodiversity and environmental
preservation. Moreover, micro-scale hydro-power generation
can help regions develop more independently as these technologies enable them to generate their own power using theirown water resources.
In addition to the Mibugawa Power Station, the MarubeniGroup currently operates the following micro-scale hydropower facilities.

Producing power locally: Mibugawa
Electric Power

Micro-scale hydro-power station(Hokuto City, Yamanashi Prefecture)

SUSTAINABLE DEVELOPMENT REPORT 201930

Environmental > 3. Biodiversity

Micro-scale Hydro-power Project Facilities (As of October 2018)
Facility

Location

Approved Output

Facility

Mibugawa Power Station No. 1

23,100 kW

Misaki Wind Power

Mibugawa Power Station No. 2

10,800 kW

Tokachi-Shimizu Power Plant

Location

Power Output (Marubeni’s Share)

Type of Power Plant
Onshore wind power

Ikata Town, Ehime Prefecture

20 MW (49%)

Shimizu Town, Hokkaido Prefecture

4 MW

Tomakomai City, Hokkaido
Prefecture

7 MW

Iwanuma-Rinku Mega-solar

Iwanuma City, Miyagi Prefecture

28 MW

141 kW

Sekikawa Village Mega-solar

Sekikawa Village, Niigata
Prefecture

2 MW (50%)

93 kW

Iwaki Mega-solar

Iwaki City, Fukushima Prefecture

2 MW (50%)

Tateshina Power Station No. 4

145 kW

Tsuetsukitoge Mega-solar

Ina City, Nagano Prefecture

10 MW

Hokuto Nishizawa Power Station

220 kW

Inahiji Mega-solar

Ina City, Nagano Prefecture

1 MW

320 kW

Itako Solar Power Station

Itako City, Ibaraki Prefecture

2 MW (50%)

Oyama Solar Power Station

Oyama Town, Shizuoka Prefecture

2 MW (50%)

Kisosaki Mega-solar

Kisozaki Town, Kuwana City, Mie
Prefecture, and Yatomi City, Aichi
Prefecture

49 MW

Mibugawa Power Station No. 3

Ina City, Nagano Prefecture

260 kW

Mibugawa Power Station No. 4

480 kW

Tateshina Power Station

260 kW

Tateshina Power Station No. 2
Tateshina Power Station No. 3

Hokuto City Murayamarokkamuraseki
Hydro-power Station

Chino City, Nagano Prefecture

Hokuto City, Yamanashi Prefecture

Hokuto Kagoishi Power Station

230 kW

Hokuto Kurabara Power Station

200 kW

Shiroishi Power Station
Hananosato Power Station
Banyagawa Power Station
Himenuma Power Station
Minochigawa Power Station
Sagotani Power Station
Toyohira Power Station

Shiroishi City, Miyagi Prefecture
Shimogo, Fukushima Prefecture
Inawashiro, Fukushima Prefecture
Hiroshima City, Hiroshima Prefecture
Kitahiroshima, Hiroshima Prefecture

Mibugawa Power Station has obtained Eco Action 21*1 certification, the first hydro-power facility to do so. Given that the
intake of Power Station No. 2, which is located at the highest
elevation, is next to a quasi-national park, and the facilities ofthe Mibugawa Power Station are in a region with high biodiversity value, we strive not only to avoid destruction of nature,
but also to preserve it. As part of that effort, in addition to
conducting river cleanup activities and facility maintenanceand emergency response training to be prepared for possible
oil spills, Mibugawa Power Station takes measures for protection of biodiversity by conducting water quality inspections
twice a year, not only to determine whether pollutants arepresent, but also to check whether the water has the oxygen
content required by living organisms. The facility also welcomes local elementary and middle school students and over
100 residents each year for tours of the power station, andpresents exhibits of hybrid power generation systems (wind,solar and hydropower). These and other activities help educate people about renewable energy and pass on the region’s
traditional culture.
At the Hokuto City Murayamarokkamuraseki Waterfarm,*2
we use existing irrigation canals to supply renewable energy
while making appropriate adjustments to the volume of waterused to ensure adequate supplies of irrigation water for farmland and water for household use.

31

Main Renewable Energy Projects in Japan (As of October 2018)

MARUBENI CORPOR ATION

95 kW

Tomakomai Mega-solar

Solar power

175 kW
150 kW
160 kW
180 kW
108 kW
112 kWAt the micro-scale hydro-power power station in Shiroishi
City, Miyagi Prefecture, the elevation difference in water pipesof water supply facilities is used to generate electricity withminimal impact on the surrounding environment.
In addition, in selling power through Marubeni Power Retail
Corporation, we are helping to improve biodiversity by allocating a portion of the electricity fees to forest maintenanceand management.
The Marubeni Group aims to develop about 30 micro-scalehydro-power facilities in Japan by 2020. Across Japan, we are
actively working on generation of renewable energy that
contributes to preservation of the local environment andbiodiversity.
＊1. A system based on guidelines for environmental management systems
and environmental reporting set by the Ministry of the Environment＊2. The four micro-scale hydro-power stations at Murayamarokkamuraseki
in Hokuto City (Hokuto Nishizawa Power Station, Hokuto Murayamarokkamuraseki Hydropower Station, Hokuto Kagoishi Power Station and
Hokuto Kurabara Power Station)

Initiatives in Solar and Wind Power Generation
Throughout Japan, in addition to the development of microscale hydro-power projects, the Marubeni Group is actively
working on generation of renewable energy that contributes
to preservation of the global environment and biodiversity.

Sustainable Forest Management
Forest area throughout the world began to decline rapidly inthe 20th century. Forests fulfill a variety of environmental
functions, including biodiversity conservation, erosion control,
and watershed conservation. The wood resources we obtainfrom forests also play important roles in our daily lives.
Marubeni recognizes that sustainable forest management is of
the utmost importance because of the social and economic
value that forests provide.
The Marubeni Group*3 currently holds 140,000 hectares oftree plantations in Australia and Indonesia (total gross project
area is 320,000 hectares). Focusing on eucalyptus, afast-growing broadleaf tree that matures in six to ten years,
and through a controlled cycle of planting, cultivation, management and harvesting, we provide a stable and sustainablesupply of wood resources used for pulp and paper. Because
we plant on sites that do not threaten the lives and livelihoodof local inhabitants and do not harvest natural forests, ourforest plantation business is sustainable and demonstrates
consideration for the environment and regional communities.
＊3. The Marubeni Group’s forest plantation business is conducted by two
consolidated subsidiaries: WA Plantation Resources Pty. Ltd. (WAPRES)in Australia and PT Musi Hutan Persada (PT-MHP) in Indonesia.

The Marubeni Group’s forest management is operated inaccordance with standards established by forest certification
systems. WAPRES, which operates the forest plantation andwood chip production business in Australia, has obtained
Forest Management certification (FSC® C016260)*4 and Chainof Custody certification*5 from the Forest Stewardship Council*6 (FSC), and Sustainable Forest Management certification*4
from Responsible Wood.*7
PT-MHP, which operates the forest plantation business inIndonesia, has obtained Forest Management certification fromthe Indonesian Forestry Certification Corporation.*8 Wood
harvested from the plantations of both WAPRES and PT-MHP
is supplied as 100% certified wood as of March 31, 2018.
The Marubeni Group will continue to manage the supply
chain*9 for manufacturing pulp and paper in a sustainable
manner.
＊4. Forest Management certification/Sustainable Forest Management
certification:
Certification that a forest owner or management organization conducts
sustainable forest management based on certain criteria established byan independent third party＊5. Chain of Custody certification: A certification of manufacturers, processors and distributors that manage wood and wood products from certified forests separately from other materials based on certain criteria
established by an independent third party＊6. Forest Stewardship Council: An international organization that provides
systems of forest certification＊7. Responsible Wood (Certification Scheme): A forest certification system
in Australia endorsed and mutually recognized under the Programme
for the Endorsement of Forest Certification (PEFC), an international
forest certification system for the endorsement and mutual recognitionof forest certification systems of various countries＊8. Indonesian Forestry Certification Corporation: A forest certification
system in Indonesia endorsed and mutually recognized under the PEFC
＊9. The Marubeni Group has businesses that span the pulp and paper
supply chain, with a pulp mill at PT Tanjungenim Lestari Pulp and Paper,a consolidated subsidiary in Indonesia, the two paper mills of consolidated subsidiaries Koa Kogyo Co., Ltd. and Fukuyama Paper Co., Ltd.,and a paper recycling business at Marubeni Paper Recycle Co., Ltd.

SUSTAINABLE DEVELOPMENT REPORT 201932

Environmental > 3. Biodiversity

Commencement of RSPO SCCS Certified Fatty
Acids Inventory Business

Preservation of Biodiversity and Habitats

Marubeni will begin an inventory business selling RSPO*10
SCCS certified (MB)*11 palm oil-based fatty acids (hereinafter,“RSPO certified fatty acids”) in Japan, and build a stablesupply chain capable of meeting demand for small amounts.
Environmental and social concerns have been raised overpalm oil, a raw material used in fatty acids. These concerns
include environmental degradation and biodiversity loss
caused in the process of cultivation, as well as human rights
violations of plantation workers and other adverse impacts oncommunities. Consequently, requests for the use of fatty acids
produced from RSPO certified palm oil that is produced withdue consideration for the environment are increasing worldwide, including Japan. Marubeni, which has been selling RSPO
certified fatty acids directly to certain customers, will begin,for the first time in Japan, to maintain stocks of RSPO certified
fatty acids to meet latent customer needs.
Marubeni launched its Sustainability Management Committee in April 2018 under the supervision of the president and
CEO with the aim of strengthening the company’s ESG initiatives. Through the promotion of RSPO certified products, wewill contribute to a sustainable society.

TeaM Energy Foundation, Inc. (TEFI) was established tohandle the CSR activities of TeaM Energy Corporation (TeaM
Energy), an independent power producer in the Philippines inwhich Marubeni owns a 50% stake. In cooperation with theWild Bird Club of the Philippines and the Department of Environment and Natural Resources, TEFI has participated in the
Asian Waterbird Census, an Asian aquatic bird population
survey conducted by the international NGO Wetlands International, every year since 2010, and collects data on waterbirds
within a 10-kilometer radius of the Pagbilao and Sual power
plants, which are owned and operated by TeaM Energy. The
survey has confirmed that the environmental impact on theneighborhoods around the power plants is low, and a healthy
environment is being maintained.
The areas around the Pagbilao and Sual power plants are
sanctuaries of the Philippine duck (Anas luzonica), an endemic
species of the Philippines that is designated as “vulnerable” inthe IUCN Red List of Threatened Species 2014 issued by theInternational Union for Conservation of Nature. The sites ofthe power plants are resting spots for many other birds,
including migratory birds.
TEFI takes steps to safeguard the habitat of these birds
through noise reduction measures, limitations on development, and habitat relocation in the event of development. In
the 2017 survey, a total of 460 Philippine ducks and five brahminy kites were confirmed at the power plant sites and within
a 10-kilometer radius.

＊10. RSPO (Roundtable on Sustainable Palm Oil): The RSPO was established in 2004 by seven organizations, including the World Wildlife
Federation (WWF), to meet the increasing need for environmental-friendly sustainable palm oil. It is a non-profit organization that
promotes sustainable palm oil production and utilization, and is managed with the cooperation of stakeholders in the seven sectors of thepalm oil industry: oil palm producers, processors or traders, consumer
goods manufacturers, retailers, banks/investors, and environmental
and social NGOs. Marubeni joined the RSPO as a member on February
22, 2015.
＊11. SCCS (Supply Chain Certificate System): The SCCS guarantees that
palm oil products in the production and distribution process meet the
specified conditions. The system has three certified supply chain
models and one credit model. Marubeni achieved SG and MB certification on October 8, 2015.

Afforested area

Engagement to Reduce Loss of Biodiversity
Forest Preservation Activities and Providing
Livelihoods to Indigenous People
Since 2010, TEFI has been implementing a Community Carbon
Pools Program (C2P2) in the municipality of General Nakar in
the province of Quezon, in cooperation with the Philippine
Department of Environment and Natural Resources, local residents, and international and local NGOs.
TEFI conducts training and provides funding to a honeymanufacturing facility powered by solar energy. In addition tohoney, the communities of General Nakar produce resin, foodand other non-timber products and also engage in textile
dyeing and tea harvesting.

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

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

Habitat survey

Afforestation Program
TEFI is carrying out projects to plant acacia, eucalyptus andother tree varieties at its Pagbilao and Sual power plants inpartnership with neighboring communities as well as NGOs
such as Siosio East Environment. The average survival rate of
the saplings planted is 95%. To date, approximately 100 hectares at Sual and 150 hectares at Pagbilao have been planted
and are being maintained.

Forest conservation activities

Interaction with local residents

Various products are produced,
including tea and honey.

Collaboration with External Organizations
Results in FYE 3/2018

SG (Segregation): The SG supply chain model assures that RSPO certified palm oil and its derivatives delivered to the end user come only
from RSPO certified sources. It permits the mixing of RSPO certified
palm oil from a variety of sources.
MB (Mass Balance): The MB supply chain model administratively monitors the trade of RSPO certified palm oil and its derivatives throughout the entire supply chain, as a driver for mainstream trade insustainable palm oil.

These activities provide livelihoods and improve living standards for 40 communities and over 2,000 local residents, andhelp to preserve the 144,000 hectares of forest and prevent
deforestation. They also contribute to the reduction of GHG
emissions caused by deforestation, the long-term conservationof forests, and the promotion of carbon storage with forests.

Asian Waterbird Census

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/

RSPO certification logo

RSPO (Roundtable on Sustainable Palm Oil):

https://www.rspo.org/

33

MARUBENI CORPOR ATIONSUSTAINABLE DEVELOPMENT REPORT 201934

Environmental > 4. Pollution and Resources

4. POLLUTION AND RESOURCES

Related Data

PolicyPolicy on Mine Closures
The Marubeni Group understands the importance of reducing
the impact on the environment and surrounding communities
when closing down mines. We use a local business entity tocommunicate with local communities and other stakeholders
from the project planning stage, formulate a mine closure
plan, conduct an environmental impact assessment, obtainenvironment-related authorizations from regulatory agencies,
carry out various types of monitoring necessary for maintaining those authorizations, and strive to minimize the social andenvironmental impact when the mine is decommissioned. We
also start the necessary rehabilitation before mine closure tolessen the environmental impact after the mine closes.

Waste Generated

Paper Consumption (A4 paper sheet equivalent)M arubeni Corporation’s six principal officesM arubeni Corporation’s other offices + consolidated subsidiaries(Tons)
108,539P aper Consumption (A4 paper sheet equivalent)(Thousand sheets)
60,000110,000

99,531
100,000

45,00042,59942,65939,28830,84190,00030,00027,89680,000
1,000

791

580

531

FYE
3/2014FYE
3/201515,000500
00Action Plans and Targets

Initiatives (Examples)

As a resource conservation measure, Marubeni’s consolidated
subsidiary Koa Kogyo Co., Ltd. is working to reduce theamount of water resources it uses in the production process.
Since large quantities of water are needed in papermaking
operations, Koa Kogyo secures the necessary water from bothindustrial and well water sources and recycles water in the
manufacturing process. In discharged water, strict water quality standards are met by using activated sludge tanks to
reduce chemical oxygen demand (COD) and biochemical
oxygen demand (BOD) and by purifying water.
Koa Kogyo is also working to reduce waste volume. By
pulping waste paper using a high-consistency pulper, Koa
Kogyo can recycle paper that was previously incinerated
because it could not be processed. Furthermore, all combustible garbage is disposed of utilizing high-temperature incinerators, and the thermal energy is recovered and used forthermal recycling. Because it processes waste at high temperatures of 900–1,000°C, this incinerator emits virtually no
toxic dioxins and meets environmental standards for NOx,
SOx and CO2 emissions.

35

MARUBENI CORPOR ATION

FYE
3/2017FYE
3/2018FYE
3/2014

Waste generated byMarubeni
Corporation’s
six principal
officesWaste generated byMarubeni
Corporation’s
other offices
and consolidated
subsidiaries

Total

FYE 3/2014

580

—

—

In addition, Koa Kogyo collects waste paper and officewaste to be recycled and reused as paperboard. By doing so,
the company has established a closed recycling system withcustomers and is reducing the burden on the environment.

FYE 3/2015

531

—

—

FYE 3/2016

791

—

—

FYE 3/2017

432

108,107108,539

FYE 3/2018

6

99,526

99,531FYE
3/2015FYE
3/2016FYE
3/2017FYE
3/2018Paper Consumption at Marubeni
Corporation’s Six Principal
Offices (A4 paper sheet
equivalent)(Tons)

Energy Conservation, Natural Resource Conservation, andWaste Reduction Activities, see page 19.

Initiatives for Reducing Environmental Impact(Koa Kogyo)

FYE
3/2016FYE 3/2014

42,599FYE 3/2015

42,659FYE 3/2016

39,288FYE 3/2017

30,841FYE 3/2018

27,896

For further information on paper consumption, please refer to
Marubeni’s website:

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

Koa Kogyo’s environmental initiatives:

http://www.koa-kogyo.co.jp/environment/ (Japanese only)

Life Cycle Assessment

For further information on waste generated, please refer to
Marubeni’s website:

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

Within the Marubeni Group, life cycle assessment (LCA) is
utilized in the cattle fattening business of Rangers Valley
Cattle Station Pty. Ltd. (Rangers Valley), a consolidated subsidiary in Australia, to quantitatively analyze and assess socialand environmental impact. Rangers Valley is pursuing efficient
operations through research of the optimal feed and feeding
and fattening methods, and is working to reduce social andenvironmental impact in this business by reflecting LCA analysis results in its business plans.
Rangers Valley’s approach to the environment:

https://www.rangersvalley.com.au/environment/

SUSTAINABLE DEVELOPMENT REPORT 201936

Environmental > 4. Pollution and Resources / 5. Supply Chain: Environment

Energy and Electricity Consumption

Recycling Rate at Marubeni Corporation’s Six Principal Offices

Marubeni Corporation’s six principal offices: Electricity consumptionM arubeni Corporation’s other offices + consolidated subsidiaries:
Energy consumption(MWh)(TJ)(%)

20,00015,00010,00012,645
9,554

9,473

12,74013,532

9,167
7,239

100

Policy94.6

20,00095

15,00090

10,000

85

5,000

80

92.4

91.9
89.8

88.7

5,021
5,000

0

FYE
3/2014FYE
3/2015FYE
3/2016FYE
3/2017FYE
3/2018FYE
3/2014FYE
3/2015FYE
3/2016FYE
3/2017FYE
3/2018(MWh)(TJ)
Electricity consumptionofMarubeni Corporation’s
six principal offices

Energy consumption of
Marubeni Corporationand consolidated
subsidiaries

FYE 3/2014

FYE 3/2014

9,554

FYE 3/2015

91.9

FYE 3/2016

94.6

—

FYE 3/2017

88.7

9,473

—

FYE 3/2018

89.8

FYE 3/2016

9,167

12,645FYE 3/2017

7,239

12,740FYE 3/2018

5,021

13,532

Specially Controlled Industrial Waste Output
Marubeni Corporation monitors and reports its output ofspecially controlled industrial waste defined in the Waste
Management and Public Cleansing Act. This includes polychlorinated biphenyl (PCB) waste, etc., such as PCB contaminated items, and processed PCB, which we dispose of inaccordance with the legally prescribed disposal period.
Specially Controlled Industrial Waste Output (Tons)
FYE 3/2016

0

FYE 3/2017

8.6

FYE 3/2018

0Each of our domestic subsidiaries appropriately monitors
and reports amounts of specially controlled industrial waste
in accordance with the Waste Management and Public
Cleansing Act.
For further information on specially controlled industrial waste
output, please refer to Marubeni’s website:

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

ESG Risk Assessment/Analysis
In FYE 3/2018, as part of efforts to strengthen ESG risk management, the Marubeni Group conducted an assessment andanalysis of all products and projects handled by the company
to identify potential ESG risks. This assessment and analysis
incorporated objective perspectives and methods in collaboration with an external consultant with specialized expertise.
For the risk analysis, we referred to the ESG risk-related dataand information published by international organizations,
government organizations, research institutions, NGOs andother organizations, then narrowed the focus to approximately
30 products and projects likely to have ESG risks, and applied
detailed risk analysis to them.

Supply Chain Risk Assessment
The Marubeni Group shares its Basic Supply Chain Sustainability Policy (the “Basic Policy”) with suppliers, and requests
that they thoroughly understand, cooperate and comply with
it. We conduct due diligence and risk assessment throughcommunication, questionnaires and on-site inspections for
new and existing suppliers alike, and provide guidance andreview the business relationship if any violations are confirmed. By ensuring that the Basic Policy is applied throughout
our operations, the Marubeni Group reduces social and environmental risks.
Basic Supply Chain Sustainability Policy, see page 16.

For compliance matters in the Basic Policy, a representativefrom the Marubeni Group conducts on-site inspections ofsuppliers who are based in countries that carry a high risk of

MARUBENI CORPOR ATION

Forest Management Policy, see page 10.

Product Procurement Policy (Forest-derived Products),see page 12.

Initiatives (Examples)

Supply Chain Sustainability Survey andOn-site Inspections

37

Basic Supply Chain Sustainability Policy, see page 16.

92.4

FYE 3/2015

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

To build a better tomorrow, the Marubeni Group has identified
Sustainable and Resilient Value Chains as an essential category of Environmental and Social Materiality, and formulated
a Basic Supply Chain Sustainability Policy. In addition to
managing the supply chain, we will also involve buyers of our
products and enhance the strength and competitiveness of
our entire supply chain, including our business partners.

Recycling Rate at
Marubeni Corporation’s
Six Principal Offices0

For further information on energy consumption, please refer to
Marubeni’s website:

5. SUPPLY CHAIN: ENVIRONMENT

non-compliance, and who trade in sectors such as apparel andagriculture. A representative from the Marubeni Group directly
visits the manufacturing or production sites of the suppliers to
conduct such inspections. The inspections survey the supplier’s efforts regarding the Marubeni Group’s Basic Supply
Chain Sustainability Policy.
Multifaceted surveys designed to fit the supplier’s businesssituation and regional characteristics are conducted on-site,covering areas such as respect for human rights, legal andregulatory compliance, environmental preservation, fair trade,safety and health, quality control, and disclosure of information. Issues targeted by the survey and the survey methods
are constantly reviewed, including through third-party opinions, in an effort to keep the survey relevant to the current
circumstances. Survey results are reported back to theinspected sites, and information relevant to improvement of
the relevant issues is shared. In addition, if there are cases ofviolation or of not meeting the Marubeni Group’s regulations,or cases that are likely to have a negative impact, we encourage proactive reports and initiatives for impact mitigationfrom the supplier. By doing so, we are working to reduce
environmental and social impacts throughout the supply
chain.
If violations are found, we take steps to help suppliers
improve. For example, we conduct training and awarenessactivities, provide support and make recommendations for
improvement, and promote environmental and social response
measures. If no improvement is seen even after these steps
are implemented, we will give notice that we are reviewing ourbusiness with the supplier.
For further information on the supply chain sustainability survey,
please refer to Marubeni’s website:

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

SUSTAINABLE DEVELOPMENT REPORT 201938

Environmental > 5. Supply Chain: Environment

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.

39

MARUBENI CORPOR ATION

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/

Cooperation with External Organizations
Support for WWF Japan

Supplier Capacity Building

Sustainable Production and Consumption

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.

Taking into account the impact of the Marubeni Group’s business activities on the natural environment, we cooperate withvarious stakeholders throughout the supply chain in efforts topreserve biodiversity and maintain sustainable production
and consumption.
One such example is our support for WWF Japan, an international environmental organization. Furthermore, Marubeni
participates in certification systems for forest products,
marine products, vegetable oil, and other categories, andhandles certified biodiversity-friendly products.

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.

For further information on supplier capacity building, pleaserefer to Marubeni’s website:

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

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

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

SUSTAINABLE DEVELOPMENT REPORT 201940

Environmental > 6. Water

6. WATER

Another example, The Nisshin OilliO Group, Ltd. has set thetarget of reducing water consumption (tap water and industrial water) intensity at its four production bases in Japan in
FYE 3/2021 by 8% compared to FYE 3/2013, and is implementing reduction measures and progress management tomeet that goal.

PolicyWater Resources Policy

Risk Management System

Based on the Marubeni Group Environmental Policy, theMarubeni Group recognizes that energy and resources, including water, are finite, and takes measures to ensure their effective and efficient use.
In the Marubeni Group Environmental Policy, we clearlystate our commitment to using energy and resources, including water, efficiently. By reducing water usage through promotion of efficient use and recycling of water, and by providing
stable supplies of water resources through effective water andsewerage operation and power and desalination projects, wewill continue to contribute to the environment and communities and to resolving water-related social issues.

Water Resources

Koa Kogyo’s initiatives:

In dealing with water problems in regions suffering from water
shortages, the Marubeni Group conducts risk analysis andimplements business risk assessments for new investments
and existing businesses. We make decisions on whether to go
ahead with projects after comprehensively analyzing andassessing not only local laws and regulations, but also theimpact on the local environment and communities.

Action Plans and Targets
Water Consumption at Tokyo Head Office

Water Consumption at Tokyo Head OfficeNumerical Target for FYE 3/2021

Results in FYE 3/2018

Reduce water consumption by
3% compared to FYE 3/2011

95.4% decrease from FYE 3/2011

For further information on water consumption at the Tokyo Head Office, please refer to Marubeni’s website:

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

http://www.koa-kogyo.co.jp/ (Japanese only)
The Nisshin OilliO Group’s initiatives:

http://www.nisshin-oillio.com/english/csr/index.shtml

Initiatives in Water-Stressed Regions
The Marubeni Group owns and operates four IWPP* projects
in the arid region in the United Arab Emirates. In total, 440
million imperial gallons of desalinated water per day are produced by those desalination plants, helping to reduce stresson the region’s water resources.
For example, the Taweelah B power and desalination complex, located 80 kilometers northeast of Abu Dhabi, which webuilt and operate, has generation capacity of 2,000 megawatts of electricity and 160 million imperial gallons of water
per day. To meet increased water demand resulting from
economic development and population growth, the MarubeniGroup is selling electricity and water for 20-25 years to the
Emirates Water & Electricity Company, a state-owned utility
under the Abu Dhabi Department of Energy. Water from theplant is used for tap water (household and commercial), agriculture, industry and other applications, and helps to relievestress on water resources. (To prevent exacerbation of theregion’s water stress, machinery cooling water and otherwater used in the Marubeni Group’s business operations is
produced at the desalination plant.)

Water treatment plant

Initiatives (Examples)

As of March 31, 2018, 22 (5.1%) of the 430 Marubeni Group
companies had established water management plans. These
companies monitor and manage the amount of water intake,waste water, and recycled water, as well as quality and temperature of discharged water, and take measures to use water
resources effectively and reduce their environmental burden.
Koa Kogyo Co., Ltd., for example, uses water efficiently in
production processes, and sets and manages standards for

41

MARUBENI CORPOR ATION

Outline of Maynilad’s Business
Treatment Facilities＊ Independent Water and Power Producer

Formulation of the Marubeni Group’s Water
Management Plan

We are involved in a variety of projects in arid regions andregions with scarce water sources around the world. They
include water and wastewater concessions to build-own-operate (BOO) projects, engineering, procurement and construction (EPC) projects, and operation, maintenance, andmanagement for water treatment facilities.
Specifically, the concession businesses and BOO project
we operate in Chile, Brazil, the Philippines, Portugal and Peru,
and our operation, maintenance and management of a wastewater treatment plant in Qatar, have a total water purification
capacity of 3.5 million cubic meters per day and wastewater
treatment capacity of 2.29 million cubic meters, and cover a
service population totaling approximately 16 million people.
One example of the Marubeni Group’s concession businesses is our investment in and personnel dispatch to Maynilad
Water Services, Inc. (Maynilad), a water and sewerage company in the West Zone of Metro Manila in the Philippines,
which has a population of 9.5 million people.
Amid the region’s ongoing urban expansion and increased
congestion, Maynilad is expanding its water distribution network to increase the coverage of water supply services. In
addition, it continues to provide a stable water supply to some
1.4 million households in the concession area by promoting
more efficient use of water resources with measures to prevent water pipeline leakage and improve water pressure. At
the same time, as a medium-to-long-term goal, it is working toraise the currently low percentage of the population connected to the sewage system, to improve the sanitary environment both in normal times and during flooding, and to improve
the water quality of the region’s water system and Manila Bay,
through development of sewage treatment facilities and thesewerage network in its concession area.

Wastewater treatment plant

the amount of fresh water used in each department, as part ofits efforts to conserve resources.
Since large quantities of water are needed in papermaking
operations, Koa Kogyo secures the necessary water from bothindustrial and well water sources and recycles water in the
manufacturing process. In discharged water, strict water quality standards are met by using activated sludge tanks to
reduce chemical oxygen demand (COD) and biochemical
oxygen demand (BOD) and by purifying water.

Treatment Capacity
2,550,000 m3/day
271,925 m3/day

Sludge treatment plant

450 t/dayMaynilad’s initiatives:

http://www.mayniladwater.com.ph/Taweelah B Power & Desalination Complex

IWPP Projects in the United Arab Emirates
Project

Gross Desalination Capacity(Million imperial gallons per day)Taweelah A2

50

Taweelah B

160

Fujairah F2

130

Shuweihat S2

100

For further information on the long-term water sales agreement for the Shuqaiq 3 water project in Saudi Arabia, pleaserefer to Marubeni’s website:

https://www.marubeni.com/en/news/2019/release/20190130E.pdf

SUSTAINABLE DEVELOPMENT REPORT 201942

Environmental > 6. Water

Cooperation with External Organizations
Participation in CDP’s Water Security Program
The Marubeni Group shares information about its ESG initiatives with its stakeholders around the world. As part of thateffort, the Marubeni Group has participated in the disclosure
program of CDP, an international NGO, since 2007. CDP is a
project that calls on companies in various countries to disclose
environmental information, including climate change measures. CDP analyzes and assesses the collected information,and makes it available to investors. CDP’s database of environmental information on corporate climate change measures is
one of the largest in the world.

The Marubeni Group has answered CDP’s Water Security
Program questionnaires, which evaluate corporate water
management, since FYE 3/2014. This information is provided
to stakeholders and is being used to improve the MarubeniGroup’s water management.
Note: Data on water management is collected from Marubeni Corporationand its domestic and international consolidated subsidiaries.

Recycling Rate

Water Risk Mitigation Measures and Investment

Water Recycling Rate

Expenses Related to Water Risk Mitigation Measures

The total water consumption of the Marubeni Group’s 297
locations in FYE 3/2018 was approximately 50,529 thousand
cubic meters, of which the amount recycled as non-potablewater was 16,120 thousand cubic meters, for a recycling rate ofabout 32%.

Marubeni spent a total of 128 million yen in FYE 3/2018 on
water risk mitigation measures through its Group companies.
These measures included maintenance and repair of water
intake and drainage systems and recycling treatment facilities,
installation of water-saving equipment, purchase of wastewater treatment chemicals, emergency response training for
scenarios assuming the outflow of hazardous substances, andimplementation of cleanup activities in the areas surrounding
water sources.
We also spent 29 million yen in FYE 3/2018 as R&D
expenses for maintaining water quality and securing watersupplies in our business operations.

For further information on the water recycling rate, please refer
to Marubeni’s website:

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

Cases of Legal or Regulatory Violations
Number of Legal or Regulatory Violations Related toWater Intake and Discharge

Related Data
Water Intake by Water Source
Water Intake by Water Source (Thousand m3)

Water Intake by
SourceFYE 3/2016

Rivers, lakes
and othersurface
water

Wells
(groundwater)

Water
pumpedfromquarries

Municipal
water(tap water)

External
drainageCollected
rainwater

Seawaterand water
extracted
from theocean

36,797

3,384

0

1,224

10,969

1

0

Total

52,375FYE 3/2017

35,206

6,127

0

803

8,721

1

167

51,025FYE 3/2018

34,216

7,706

0

1,113

7,418

2

73

50,529Amount of Wastewater by Destination (Thousand m3)
Ocean

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

Water Consumption Intensity inFood & Cement Production
Water Consumption Intensity
Water Consumption Intensity in Food Production (m3/ton)
FYE 3/2016

24.1

FYE 3/2017

24.5

FYE 3/2018

28

Water Consumption Intensity in Cement Production (m3/ton)Amount of Wastewater by Destination

Amount of Wastewater by
Destination

In FYE 3/2018, the Marubeni Group was found to have one
violation related to the amount of wastewater in Queensland,
Australia, and was fined 12,190 Australian dollars by the
Department of Environment and Heritage Protection.
This infraction occurred when water in excess of the permissible amount was released into an adjacent river from awater storage dam on a site related to the Marubeni Groupbecause of record downpours associated with a cyclone.
In addition to constructing a run-off channel and expanding the capacity of the dam, our response included completingchanges to environmental approvals and permits related toincreasing the amount of wastewater with the department.
The results of a water quality test showed that there was noharm to the environment.

For further information on expenses related to water risk
mitigation measures, please refer to Marubeni’s website:

Surfacewater

Underground/wells

Off-sitewater
treatment

OthersTotal

FYE 3/2016

12,091

31,9813924

044,999FYE 3/2017

10,62832,9493835

044,414FYE 3/2018

10,98333,0703884

044,940FYE 3/2016

0

FYE 3/2017

0

FYE 3/2018

0

For further information on water consumption, please refer to
Marubeni’s website:

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

Note: Water quality upon discharge is appropriately managed based on the laws and regulations of each country and region.

43

MARUBENI CORPOR ATIONSUSTAINABLE DEVELOPMENT REPORT 201944

Social > 1. Supply Chain: Society

SOCIAL
1. SUPPLY CHAIN: SOCIETY

If violations are found, we take steps to help suppliers
improve. For example, we conduct training and awarenessactivities, provide support and make recommendations for
improvement, and promote environmental and social response
measures. If no improvement is seen even after these steps
are implemented, we will give notice that we are reviewing ourbusiness with the supplier.

PolicyTo build a better tomorrow, the Marubeni Group has identified
Sustainable and Resilient Value Chains as an essential category of Environmental and Social Materiality, and formulated
a Basic Supply Chain Sustainability Policy. In addition to
managing the supply chain, we will also involve buyers of our
products and enhance the strength and competitiveness of
our entire supply chain, including our business partners.
Social data is updated periodically on our website.

Basic Supply Chain Sustainability Policy, see page 16.

Forest Management Policy, see page 10.

Product Procurement Policy (Forest-derived Products),see page 12.

Initiatives (Examples)
ESG Risk Assessment/Analysis
In FYE 3/2018, as part of efforts to strengthen ESG risk management, the Marubeni Group conducted an assessment andanalysis of all products and projects handled by the company
to identify potential ESG risks. This assessment and analysis
incorporated objective perspectives and methods in collaboration with an external consultant with specialized expertise.
For the risk analysis, we referred to the ESG risk-related dataand information published by international organizations,
government organizations, research institutions, NGOs andother organizations, then narrowed the focus to approximately
30 products and projects likely to have ESG risks, and applied
detailed risk analysis to them.

Supply Chain Risk Assessment
The Marubeni Group shares its Basic Supply Chain Sustainability Policy (the “Basic Policy”) with suppliers, and requests
that they thoroughly understand, cooperate and comply with
it. We conduct due diligence and risk assessment throughcommunication, questionnaires and on-site inspections for
new and existing suppliers alike, and provide guidance andreview the business relationship if any violations are confirmed. By ensuring that the Basic Policy is applied throughout
our operations, the Marubeni Group reduces social and environmental risks.
Basic Supply Chain Sustainability Policy, see page 16.

45

MARUBENI CORPOR ATION

Supply Chain Sustainability Survey andOn-site Inspections
For compliance matters in the Basic Policy, a representativefrom the Marubeni Group conducts on-site inspections ofsuppliers who are based in countries that carry a high risk of
non-compliance, and who trade in sectors such as apparel andagriculture. A representative from the Marubeni Group directly
visits the manufacturing or production sites of the suppliers to
conduct such inspections. The inspections survey the supplier’s efforts regarding the Marubeni Group’s Basic Supply
Chain Sustainability Policy.
Multifaceted surveys designed to fit the supplier’s businesssituation and regional characteristics are conducted on-site,covering areas such as respect for human rights, legal andregulatory compliance, environmental preservation, fair trade,safety and health, quality control, and disclosure of information. Issues targeted by the survey and the survey methods
are constantly reviewed, including through third-party opinions, in an effort to keep the survey relevant to the current
circumstances. Survey results are reported back to theinspected sites, and information relevant to improvement of
the relevant issues is shared. In addition, if there are cases ofviolation or of not meeting the Marubeni Group’s regulations,or cases that are likely to have a negative impact, we encourage proactive reports and initiatives for impact mitigationfrom the supplier. By doing so, we are working to reduce
environmental and social impacts throughout the supply
chain.

For further information on the supply chain sustainability survey,
please refer to Marubeni’s website:

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

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: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/

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.

SUSTAINABLE DEVELOPMENT REPORT 201946

Social > 1. Supply Chain: Society / 2. Labor Practices

2. LABOR PRACTICES

Cooperation with External Organizations
Support for WWF Japan

Supplier Capacity Building

Sustainable Production and Consumption

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.

Taking into account the impact of the Marubeni Group’s business activities on the natural environment, we cooperate withvarious stakeholders throughout the supply chain in efforts topreserve biodiversity and maintain sustainable production
and consumption.
One such example is our support for WWF Japan, an international environmental organization. Furthermore, Marubeni
participates in certification systems for forest products,
marine products, vegetable oil, and other categories, andhandles certified biodiversity-friendly products.

To build a better tomorrow, the Marubeni Group has identified“Human Capital with High Social Value” as an essential category of Fundamental Materiality.
We regard human capital as our most valuable asset inmeeting environmental and social demand, and proactively
providing solutions. We define “Human Capital with HighSocial Value” as individuals who are essential not only to thecompany but also to society. We will nurture Human Capitalwith High Social Value, and thereby bring about innovationand provide solutions.

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 afoundation that facilitates the activities of our human capitaland establish a truly Robust Management Foundation. If wecannot accomplish this, our human capital will not be able tocontinue innovating and providing solutions. Enabling ourhuman capital to use our management foundation to the fullest will ultimately lead to maximizing corporate value.

For further information on supplier capacity building, pleaserefer to Marubeni’s website:

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

2-1. Work Environment for Diverse Individuals — Promotion of Diversity Management
PolicyWith the goal of being “a strong Marubeni Group in which
diverse individuals play active roles,” the Marubeni Group isfurther promoting diversity within the Group with a view tocreating a corporate culture and workplaces where employeeswith various characteristics, experience, capabilities, and values
can leverage their “diverse individual strengths.” Moreover, we
promote work-life management as the infrastructure that will
enable employees with various backgrounds to succeed.

Our Goal: A Strong Marubeni Group in Which Diverse Individuals Play Active Roles
The Role of the Management Level

Hire, develop and utilize
diverse human resources
Brainstorm with diverse
individuals
Positive
SpiralManagement Level
Internal and external commitment

The Role of Line Managers

Line Manager
Management to take advantage ofan organization of individuals

Understand the strengths of each subordinate and manage them to best utilize
these strengths in order to maximize theperformance as an organization.

Employees
Fully utilize strengths in a diverse environment
Increase brandvalue and enhancecompetitiveness of
the Marubeni Group47

MARUBENI CORPOR ATION

Infrastructure
Systems to support humanresources and organization

Foster a culture of respect for diversity
and a strong sense of unity by believingthat the active participation by diverse
individuals is the source of strength for
Marubeni for achieving goals and practicing its management philosophy, andmaking the commitment to realize thisboth internally and externally.

The Role of All Employees

Value creation throughsynergies with diverse
individuals
Organization withsuperior ability toadapt to change

In every situation, respect the diverse
strengths of other members, and makefull use of your own strengths to achieve
the goals of the organization.
Infrastructure
Systems that form the foundations fordiversity management (employee compensation, human resource development,
work-life balance related, etc.).

SUSTAINABLE DEVELOPMENT REPORT 201948

Social > 2. Labor Practices

Trial Measures to Support Overseas Postings
after Childbirth

Framework
Supervising Director

Yukihiko Matsumura (Senior Executive Vice President; CAO; CIO; Senior Operating Officer, Audit Dept.; Senior Operating Officer,
Executive Secretariat; Senior Operating Officer, New Office Building Project Dept.; Chairman of Compliance Committee; Chairmanof Internal Control Committee; Chairman of IT Strategy Committee)

Secretariat

Human Resources Department

Initiatives

49

Marubeni International Women’s Day

Promoting Opportunities for Women

In celebration of International Women’s Day, Marubeni International Women’s Day FYE 3/2018 was held on March 8 and 9,
2018. In order to create business that is not merely an extension of the past, people with diverse views, values, and ideas
are required. The event was held to share this perspective not
only within the Head Office but across the whole MarubeniGroup, and to further promote diversity within the Group.
Female Group executives and employees from more than 10
countries gathered and attended various programs including
keynote speeches, panel discussions, and group discussions.
The keynote speeches and panel discussions were open to
all Group employees regardless of gender, and many people
including male employees attended. President Fumiya Kokubu
offered encouragement in his opening video message, stating“We aim to be a Group where strong individuals with diverse
values and ways of thinking can work even more effectively,
regardless of characteristics like nationality, age, or gender. If
there is any problem related to being in the minority, I hopethat people will actively speak out.” In the keynote speech,
External Director Yuri Okina spoke about how she balanced
work with pregnancy and parenting, and her career and management experiences. Her message to the female employees
in the Group was “There are various events in your life, so takea long-term perspective, and don’t give up working.” In a panel
discussion, President and CEO Yumiko Noda of Veolia in Japan(Japanese subsidiary of major global water managementcompany Veolia Environnement S.A. of France), Ms. Okina, andExecutive Officer Yutaka Shimazaki, talked about their diverse
experiences and exchanged opinions on various topics, suchas career turning points that had affected their way of living
and thinking, and experiences of sharing workplaces withpeople of other cultures and different nationalities.
Additionally, everyone in the Marubeni Group helped set
the mood for the event by exchanging Thank You cards andmimosa flowers (following the Italian custom of men giving
mimosa flowers to the women around them as a sign ofappreciation), expressing gratitude to those close-by, including bosses, colleagues, and subordinates of any gender.

Since FYE 3/2007, Marubeni has had a strong focus on recruiting more women for management class. As of October 1, 2018,
there are 323 women in management class (9.6% of all management class) playing an active role in operations in Japanand other countries around the world. Many of these women
are in the early to mid-stage of their careers and are viewed as
potential candidates for executive positions in the future. As
such they are expected to play an even greater role in the years
to come. Furthermore, in FYE 3/2015, Marubeni started new
programs designed to increase opportunities for women in
management class. The BENInovation Program is one example.
It focuses on opportunities for female employees and their
immediate managers. In conjunction with other human capital
policies for junior employees that emphasize the acquisition ofoverseas and frontline experience, such programs are contributing to the steady cultivation of female talent and the career
progress of women in management class. Moreover, we haveestablished an action plan in response to the promulgation of
the Act on Promoting Women’s Empowerment in the Workplace. Under this plan, we are continuing efforts to increase theratio of women in management class to more than 10% andraise the ratio of women in managerial positions to above 7%
by March 31, 2021. The plan also defines the period leading up
to March 31, 2021, as a time for creating foundations forincorporating diversity into decision-making. Looking toward
the future, Marubeni will enhance hiring, overseas dispatch,and education activities based on this plan.

MARUBENI CORPOR ATIONBENInovation Program
The BENInovation Program is an initiative to further promote
the activity and success of women in management class byfocusing on those in the early to mid-stage of their careers
and their immediate managers. In FYE 3/2018, the scope of
the program was expanded to include new junior managers.

Working styles and family circumstances are diversifying, andthis includes an increasing number of families where bothparents work. Marubeni is therefore taking steps to appropriately allocate and appoint human capital, and to promote
continuous career and skills development. These steps include
providing the necessary support and environment whenemployees posted overseas are accompanied by their children. Specifically, we provide support to ensure trouble-freeoverseas postings and help to prepare a suitable environment
for the posting by providing a pre-posting visit, creating childcare check-sheets for posting destinations, and covering partof the cost of essential childcare services. We introduced
these measures on a trial basis in April 2018, and will consider
full-scale introduction after conducting reviews and revisions.

Promotion of Work-Life Management
Since 2005, Marubeni has gradually expanded support measures for maternity, childcare, and for nursing care, going
beyond simply what is required by law. In January 2017, we
shifted from a “support for balance” phase to “support forsuccess,” moving the focus from “work-life balance” to “worklife management” with the goal of being a company where it
is fulfilling to work. With this shift in focus, we aim to achieve“continuous career development” and “continuous performance” for employees at any stage of life. We also carry out
various follow-up measures that enable employees to utilize
the programs they need, when they need them.
Marubeni Work-Life Management
Continuous career development at any stage of life
for high-performing strong individuals and organizations

Autonomous work-life
management

Programs supporting career
continuation and flexible
working styles

Line management thatmaximizes the power of
all members

Main Measures Related to Work-Life Management
Maternity and Childcare Support Measures
In addition to self-management by program users, we promote cooperative frameworks that build understanding of theavailable programs among supervisors and other employees
and that encourage mutual respect, enabling workers to makeeffective use of these programs regardless of gender.
Improving Awareness of Programs
We provide information to broaden understanding of support
programs. In addition to distributing a Pregnancy and Childcare Support Handbook, we hold three-way interviews
between the employee going on maternity leave, their immediate manager, and a human resources representative (if the
spouse of the employee is also a Marubeni employee, then the
spouse and spouse’s immediate manager are also included).
Furthermore, we hold an interview three months prior to
return to work, and provide a checklist to the immediate manager of the relevant department that covers items relating tobefore and after the employee’s return.
Securing Places at Childcare Facilities
A current social issue in Japan is the increasing number ofchildren on waiting lists for places at day-care centers. In FYE
3/2011, Marubeni introduced a childcare support allowance for
returning employees, which covers part of the cost of childcare services so that employees can return to work when theywant to. In FYE 3/2019, we began a trial of securing permanent
places at a day-care center near our Tokyo Head Office.
Marubeni Family Day
Since FYE 3/2011, we have held Marubeni Kids Project – Visiting Mom and Dad at Work as an annual event mainly for children of elementary school age. In FYE 3/2019, we expanded
this event at the Tokyo Head Office into Marubeni Family Day,
featuring additional events for employees and their spouses
and for junior high and high school students. Moreover, severalof our overseas subsidiaries held similar events. These events
are an opportunity for deepening understanding of the companies and work that employees are involved with, thereby
cultivating Marubeni Group supporters, and for companies,
employees, and their families to consider the balance between
work and private life.

Promotion of workstyle reforms

SUSTAINABLE DEVELOPMENT REPORT 201950

Social > 2. Labor Practices

Family Care

Pregnancy/Maternity

Childcare leave

Balancing work and childcare

Preparation

Maternity leave (early stages of pregnancy)

Parental leave

Childcare support allowance for
returning workers

Maternity time (during pregnancy)Childcare leave for first 8 weeks after birth(paternity leave)

Maternity select time (during pregnancy)

Self-development/welfare program

Balance between work and care

Family care leave

Family care leave

Family care work hours(shorter hours)

Nursing care leave

Childcare work hours (shorter work hours)

Family support leave

Select-time work
(staggered hours)

Self-development
welfare program

Select time work (staggered hours)
for childcare

Special medical leave(for family care)

Nursery care flex-timeMaternity flex-time (during pregnancy)Childcare flex-care leave

Exemption from overtime/holiday/
late night work

Exemption from overtime/holiday/
late night work

Maternity leave

Limitations on overtime

Family support leave(to attend birth of a child)Childcare leave

Special leave for fertility treatment

Family support leave

Start of care

SystemSystemMaternity/Parenting

Exemption from overtime/
holiday/late night work
Limitations on overtime
Family care leave
Family support leave
Special medical leave(for family care)

Special medical leave (childcare/nursing)

Family Care Support Handbook
Family care seminars

Maternity and Childcare Support Handbook
Birth/Childcare support interview

Interview before return to work

Career consultation

Career consultation

Support supervisor of returning worker

Mission-setting meeting

Mission-setting meeting

Regular business contact from supervisor

Individual interviews
Follow-up

Follow-up＊Used to ensure a care system at thestart of family care and prepare for abalanced work and care life

Career consultation

Interview before return to work

Mission-setting meeting

Support supervisor of returning
workerRegular business contact fromsupervisor

Employee Assistance Program Consulting by phone/mail/interview (mental health)

Information from HR department

Return to work ”Concierge”

Nursing Care Support Programs
We live in a world characterized by declining birthrates, anaging population, fewer siblings, more people remaining
single, and more working couples. This means that nursing
care, which was traditionally taken care of mostly by stay-athome family members, is now an issue that working family
members must take the initiative in addressing. Marubeni hasestablished support programs so that employees can balance
work and care of relatives, while playing an active work role inthe medium and long term.

Improving Awareness of Programs
Marubeni has created and distributes a Family Care Handbook
and has also been holding nursing care seminars on various
topics since FYE 3/2011, with a cumulative total of 1,200 participants. The handbook and seminars not only explain our

51

MARUBENI CORPOR ATION

Securing childcare facilities and support
Discounts for baby sitting services, etc.

programs, but also strongly encourage employees to seek
external professional help rather than trying to take on nursing
care themselves, so that they can better manage their situation and balance work with nursing care.

Provision of External Services Including Personal
Consultations and Remote Nursing Care
We provide free consultation by telephone, email, or in person
in collaboration with the NPO Umi wo Koeru Care no Te. We
have also concluded contracts with various companies tomake senior monitoring services available to employees. As
part of such services, online security systems are installed at
the homes of parents who live far away or are alone during theday, thereby enabling 24-hour monitoring and emergency
call-outs.

Services offered

Benefit Station (services related to childcare)

NPO home care consultation (phone/mail/interview) Seacare program (individual support, fee-based)
Benefit Station (services related to family care/nursing care)
SECOM Co. Protective monitoring service (fee-based)
Employee Assistance Program Consulting by phone/mail/interview (mental health)

Other Life Event Support Programs
Leave and Reemployment System for Employees
Accompanying a Spouse on Overseas Posting
Marubeni has introduced a spouse relocation leave systemthat allows employees to take a leave of absence from theirjobs when accompanying a spouse on an overseas posting. In
April 2018, we also introduced a system for reemploying
people under certain conditions after accompanying theirspouses, in response to requests from those wishing to continue working during their stay overseas.

Other
SystemServices offered

Information from HR department

Special leave for relocation of a spouse
Rehire employees who temporarily left company in order to relocate with spouse

SUSTAINABLE DEVELOPMENT REPORT 201952

Social > 2. Labor Practices

Fair Recruiting and Hiring
Marubeni’s basic hiring policy is to select applicants solely
according to their capability and competence based on a fairrecruitment process in which no form of discrimination istolerated.
For example, we use an “open entry” system that offers
employment opportunities to applicants regardless of nationality, place of birth, gender, disability, or alma mater. Moreover,
the job application form does not ask for details such as placeof birth, religion, family circumstances, or any other information
not required for us to determine an applicant’s capability andcompetence. During interviews, we respect each applicant’s
basic human rights by avoiding inappropriate questions andselect employees based only on capability and competence.
To ensure that fair recruiting activities are conducted acrossthe entire Marubeni Group, we have prepared the Marubeni
Recruiting Manual, and strive to ensure that our policies arethoroughly understood across Marubeni Group companies.

Expanding Employment That Accommodates
the Needs of Persons with Disabilities
Marubeni Office Support Corporation
Marubeni Office Support Corporation was established in 2008as a special-purpose subsidiary of Marubeni designed to provide workplaces that accommodate the needs of persons withdisabilities. Today, the Company has a combined staff of 53
persons with disabilities and 5 persons without disabilities inTokyo and Osaka. They aim to create a company that grows
through mutual assistance.
Employees with physical, mental, or intellectual disabilities
engage in various office services, such as pay calculation,business card production, internal mail, and cleaning. In March
2016, Marubeni Office Support Corporation was certified by
the Ministry of Health, Labour and Welfare as a Superior Company for employing persons with disabilities. This certification
is granted to superior companies that actively employ individuals who have mental or other disabilities.
As of October 2018, the employment rate for persons withdisabilities stood at 2.62% (up from 2.47% as of April 2018),
higher than the legal minimum rate. Marubeni will continue
striving to create workplaces where all people can work,
regardless of disabilities.

53

MARUBENI CORPOR ATION

Promoting Active Roles for People of
All Nationalities
Under the Marubeni Global Mobility Program launched in April
2017, overseas Group employees who are management candidates are posted for a period to Group companies in othercountries, including the Head Office. By providing opportunities to work in a broader range of roles at Head Office orGroup companies in Japan or other countries, we enable
diverse human capital within the Group to play an active rolein different countries.

Related Data
Composition of Corporate Officers (As of June 30, 2018)

Employees Posted Overseas (As of April 1, 2018)
Numbers of female staff are shown in parentheses

Male
Directors

Female91(External directors)

(3)

(1)

Audit & Supervisory Board members

5

0

(3)

(0)

29

0

(External Audit & Supervisory
Board members)
Executive officers

Europe126 (5)Africa32 (0)

Middle andNear East
62 (0)

China
103 (5)North
America172 (12)

Total 901 (41)Overseas trainees includedin the above 24 (1)Latin
America81 (5)
Oceania30 (2)

Asia
295 (12)

Ratio of Women in Management Class (As of October 1)

Ratio of Women in Managerial Positions (As of October 1)

(%)

(%)

12.0

6.0

10.0
8.0
5.9
6.0

4.5

4.0
2.0
0.0

2.5

2.9

6.5

7.1

7.8

8.3 8.4

9.3 9.6
8.9 9.1

5.1

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

2017

2018

3.7

4.0

3.3

3.0

3.6

1.2 1.3 1.3

5.9

4.6

5.0

2.0

5.8
5.4

2.1

2.2

2008

2009

2.4

2.7

2.9

1.7
1.2

1.0
0.0

2006

2007

2010

2011

2012

2013

2014

2015

2016

External Evaluation
Marubeni Selected as a Nadeshiko Brand

Marubeni Certified as an “Eruboshi” Company

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 capital”
and “the ability to adapt to environmental changes,” and therefore canbe considered to be “companies withstrong growth potential.”

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 capitaldevelopment of female employees.

SUSTAINABLE DEVELOPMENT REPORT 201954

Social > 2. Labor Practices

Marubeni Receives “Platinum Kurumin”
Certification

Received Award for Excellence at the HR Award
2018 Held by Nihon no Jinjibu

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.

Marubeni’s strategy for “Going beyond the boundaries of‘Human Capital,’ ‘Mechanisims,’ and ‘Time’” received the Award
for Excellence in the Corporate HR Category at the HR Award
2018 held by the HR portal website, Nihon no Jinjibu, whichhas 120,000 registered members.

PolicyWith the aim of creating a greater sense of unity, we provide
regular opportunities for direct dialogue between management and employees as well as interaction between employees. This dialogue energizes and deepens communication
within the Company.

Internal Exchange Meetings

Engagement Survey

Marubeni holds roundtable meetings between the President and small groups of employees to deepen mutual
understanding between management and employees
through forward-looking dialogue. Participants are drawn
from a wide range of career stages, from managers to newrecruits, and engage in lively conversation across generations and roles, facilitated by the President. In FYE 3/2019,we held 13 meetings.

Marubeni conducts an engagement survey to gather feedback
from employees and identify management issues at eachorganization, with a view to making improvements.
Survey results are used to score engagement, defined as “arelationship in which individuals and the organization cometogether to contribute to each other’s growth.” Having identified issues for improvement, we organize lectures by external
experts for line managers and intensive programs to transformthe management of each organization. Based on the survey
results, we implement measures that will improve the abilities
of management, energize organizations, and promote performance enhancement.
The results of the survey are referenced in the formulationand improvement of human resources systems and initiatives.
The most recent survey was conducted in July 2018.

Meetings between the Labor Union and Management

2-2. Communication with Employees

Communication between Management and
Employees, and Among Employees

Initiatives

Employee Awareness Survey
Marubeni conducts employee awareness surveys to promote
improvements in the organization, and to formulate andimprove human resources systems and initiatives. Survey
results are used to score employee engagement, defined as “arelationship in which individuals and the organization cometogether to contribute to each other’s growth,” and to identify
issues to be addressed.

Relationship with Labor Union
The Company and the Marubeni Employees’ Union sharecommon goals, namely to improve the prosperity of the Company and the socioeconomic status of employees. Both parties are committed to respecting each other’s positions andengaging in sincere dialogue to build orderly labor-management relations.

Each year, opportunities for dialogue between the labor unionand management, including the President, are provided in theform of discussion meetings. Six meetings were held in FYE
3/2019. Furthermore, negotiations with various organizations
and opinion exchange meetings with labor union subcommittees were held eight times. In this way, Marubeni proactively
engages in communication with the labor union about the
introduction of systems and measures related to the working
environment, and their ongoing implementation.

Related Data
About the Marubeni Employees’ Union
Established: 1949
Membership*: 2,645 members (60% of the organization)*As of March 31, 2018

Framework

55

Supervising Director

Yukihiko Matsumura (Senior Executive Vice President; CAO; CIO; Senior Operating Officer, Audit Dept.; Senior Operating Officer,
Executive Secretariat; Senior Operating Officer, New Office Building Project Dept.; Chairman of Compliance Committee; Chairmanof Internal Control Committee; Chairman of IT Strategy Committee)

Secretariat

Executive Secretariat, Human Resources Department

MARUBENI CORPOR ATIONSUSTAINABLE DEVELOPMENT REPORT 201956

Social > 3. Human Rights and Local Communities

3. HUMAN RIGHTS AND LOCAL COMMUNITIESPolicyPolicy Regarding Human Rights
To build a better tomorrow, the Marubeni Group has identified
Human Rights & Co-development with Communities as an
essential category of Environmental and Social Materiality. In
our Basic Policy on Human Rights, we have included the threebasic principles of the UN’s Guiding Principles on Businessand Human Rights: 1) respect for human rights, 2) due diligence on human rights, and 3) redress.
Basic Policy on Human Rights, see page 13.

unemployment by creating employment in the areas
where we do business. We also help to stimulate local
economies by procuring goods and services within theregion as far as possible. Furthermore, we engage proactively with the community to promote regional development as we conduct business activities that promotemutual growth of the Marubeni Group and the region.

Policy on Environmental and Social Initiatives in the Real Estate Business
The Marubeni Group’s business activities contribute tosolving environmental and social issues with the aim ofproviding people with comfortable places to live.
For the environment, in design, construction and property
management, we not only apply existing environmental measures, but also take steps to improve energy efficiency andenergy-saving performance in materials procurement as wellas our various facilities and systems. In this way, we are helping
to realize a low-carbon society and curb global warming.

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

57

MARUBENI CORPOR ATION

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/

Initiatives

Basic Policy on Contribution to Local Communities
The Marubeni Group recognizes that contribution to local
communities is vital for conducting and growing business.
Our sales activities contribute to the establishment andexpansion of economic and social infrastructure in eachcountry and region, and social investment via businessactivities and various regional support activities contribute to the development of local communities. Specifically,
we help to address wealth inequality and regional

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.

For society, in every aspect of design, construction, andproperty management, we build relationships with tenants,
the region, and communities, working together with themto tackle social issues. In urban redevelopment projects, we
cooperate with stakeholders to create neighborhoods that
contribute to the local community as a whole, thereby
contributing to sustainable regional development.

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

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.

Dialogue 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.

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:

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:

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.

Compliance Manual
The first matter highlighted in the Compliance Manual is“respect for human rights and prohibition of any form of discrimination, sexual harassment and workplace bullying.” Here,the notion of human rights includes the fundamental humanrights stipulated in the Constitution of Japan, the LaborSUSTAINABLE DEVELOPMENT REPORT 201958

Social > 3. Human Rights and Local Communities / 4. Health and Safety

Standards Act, the UN’s Universal Declaration of Human
Rights and its Guiding Principles on Business and Human
Rights, as well as the human rights prescribed in the ILO’s
International Labour Standards.*1＊1. The International Labour Standards prescribed by the International
Labour Organization establish fundamental standards for labour. The
standards are comprised of eight conventions in four categories, namely:(1) freedom of association, (2) prohibition of forced labor, (3) prohibitionof discrimination in employment, and (4) prohibition of child labor.
For further information on the Compliance Manual, please refer
to Marubeni’s website:

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

Marubeni Hotline (formerly, “Door of Courage”)
To facilitate counseling and reporting outside the regular channels, the Marubeni Group has established the Marubeni Hotline.

Respect for Employees’ Right to Unionize andBargain Collectively
Marubeni has declared its commitment to the 10 principles of
the UN Global Compact, which calls for the support and practice of universal principles concerning human rights, labor, andother areas. Accordingly, Marubeni respects the right of
employees to unionize and bargain collectively in conducting
negotiations between labor and management on working
conditions, wage levels, and other matters.

Human Rights and Discrimination Issues Committee
This committee (established in 1981) is chaired by the CAO,*2
and its members comprise the senior managers of the Corporate Staff Group and Business Division planning and strategy
departments, as well as the general managers and deputy
general managers of branches.
＊2. CAO: Chief Administrative Officer

Selection of Officers for the Promotion of Fair
Recruitment and Human Rights AwarenessOfﬁcers for the Promotion of Fair Recruitment and Human
Rights Awareness are appointed at the Tokyo Head Ofﬁce andthree branches. This process contributes to the Company’sfair recruitment system.

Awareness Raising and Training on Human Rights
Marubeni conducts in-house training that includes “Training for
new executive officer,” “Training for new GM for Dept.,” “Training
for new GM for Sec.,” “Corporate examination (Promotion to“M” grade),” “Basic business knowledge,” “Package program for
new employee,” and “Training for Administrative Class.”
Marubeni also works continuously to raise awareness ofhuman rights issues by updating the Company intranet withtraining materials and information that includes the Company’s Basic Policy on Human Rights, and by holding regularawareness campaigns, for example by soliciting human rights
slogans from employees and publicizing them.

Contribution to Local Communities
Initiatives for Global Health Issues
At our operating company in the Philippines, Maynilad Water
Services, Inc. (Maynilad), we run programs related to healthissues and prevention of infectious diseases for our employees
and local residents.
For employees, we provide an annual health check andmonitor individual results.
Since 2009, we have provided low-priced access to vaccinations, including for influenza, pneumonia, hepatitis A and B,
meningitis, chicken pox, rabies, tetanus and cervical cancer. In
2017, 1,703 employees received vaccinations. We also provide
free vaccinations against rabies and tetanus for employees
working at wastewater treatment facilities.
In 2012 and again in 2015, in order to prevent dengue fever,
we distributed mosquito trap kits to residents of our service
area, which covers the cities of Quezon, Paranaque, andMuntinlupa, and we are looking into continuing this initiative.
Maynilad aims to reduce dengue fever infection rates in its
concession service area by raising disease awareness andimplementing anti-mosquito measures.
Elsewhere, from December 2018, at Myanmar Japan Thilawa Development Ltd., which has been developing an industrial park project in Myanmar, we began providing tuberculosis
testing for every employee at tenant companies (2,463 people

59

MARUBENI CORPOR ATION

as of December 2018). We will continue to conduct testing at
the start of each month and take measures to prevent the
spread of tuberculosis.
The Marubeni Group will continue taking measures toaddress health issues among employees and local residents,
and to prevent infectious diseases.
Information about our initiatives to contribute to local
communities is updated periodically on our website.

4. HEALTH AND SAFETY
PolicyMarubeni Group Basic Policy on Occupational Health and Safety
The Marubeni Group recognizes that ensuring healthy, safe
working environments for all Group employees and executives, as well as contractors working at labor sites, business
partners, and other related parties, is fundamental to theviability of our business. We conduct our business basedon this policy, aiming to realize zero occupational accidents
and illnesses. Furthermore in cases directly connected to
Marubeni Group business activities where our affiliates,
business partners, or other related parties are not taking
steps to ensure occupational health and safety, we ask
them to take appropriate measures in line with this policy.

3. Fostering Safety Awareness through Training

1. Continuous Improvement of Occupational Healthand Safety Management System

5. Support for Maintaining and Promoting HealthWe build and continuously improve our occupational
health and safety management system under the leadership of top management.

2. Compliance with Applicable Laws and Regulations
We comply with laws and regulations, rules, and agreements related to occupational health and safety in eachcountry and region where we conduct business activities.
We also develop relevant internal regulations in accordancewith the level of risk.

The Marubeni Group has established the Marubeni Group
Basic Policy on Occupational Health and Safety, and conducts
occupational health and safety risk assessments for new andexisting projects.

Health, Safety, Environmental and Quality Policy
Initiatives of the Power Business Division

Lecture for neighboring communities held by Maynilad
Maynilad’s initiatives:

http://www.mayniladwater.com.ph/company-csr.php

Marubeni’s Power Business Division conducts diverse powerbusinesses and is a global leading player as an Independent
Power Producer (IPP) in terms of power generation assets.
The Division has established a standard code of conducts on
health, safety, environment and quality that includes prioritizing safety in all operations, making ceaseless efforts to achieve
zero occupational accidents, and creating a culture that puts
safety first. We establish and implement appropriate health,safety, environment, and quality management systems incoordination with our operating companies and other relevant
parties. We have also established the Integrity Management
Application (IMA) as concrete guidelines for the execution of
the standard code of conducts. Through education and othermeans we are working to ensure that the IMA is understood

We foster safety awareness by continuously providing
adequate training necessary for ensuring health and safety.

4. R isk Reduction and Continuous Improvement ofWork Environment
We identify and specify hazards and sources of harm
related to our business activities, and eliminate or reducethem. We also maintain and continuously improve theworkplace environment by ensuring smooth communication within our organization.

We continuously support the maintenance and promotion of health for all Group employees and executives.

6. Information Disclosure
The Marubeni Group discloses accurate and highly transparent information regarding this policy and related initiatives
through the Group’s official website and other avenues.

and implementation is enforced by all relevant personnel
within and outside the Power Business Division.
In the Power Business Division, we work to ensure projectsafety by emphasizing a risk-based approach with a target ofzero occupational accidents. This entails continuous improvement via a PDCA cycle that identifies, evaluates, manages andmonitors risk. Specifically, we work together with people on the
project side to achieve targets by identifying project safety
risks through visits by safety management experts at sites
where we manage power generation assets, through audits
conducted by the Power Business Division, among othermeans, by promoting risk reduction from the project side, andmanaging the progress of improvement plans. We audit newand existing projects in terms of both systematic and implementation aspects, making reference to our Health, Safety,
Environment, and Quality Management Systems to evaluate
appropriate response to risk in accordance with business scaleand operations. The audits look at items such as initiatives toreduce occupational accidents, operation risk assessments,
appropriate investigation of accidents and implementation of
prevention measures, and emergency response drills.

SUSTAINABLE DEVELOPMENT REPORT 201960

Social > 4. Health and Safety

In addition to site visits and audits, we strive to inculcate aculture of prioritizing safety throughout the Group. These efforts
include holding forums for sharing safety initiatives, distributing
safety-related study materials about accidents to relevant personnel at operating companies, and presenting safety awards toprojects that implement outstanding safety measures.
The Power Business Division will continue striving to achieve
zero accidents by steadily implementing and continuously
improving its management systems based on the standard codeof conducts on health, safety, environment, and quality. Throughthese efforts we will meet the expectations and demands ofcustomers and society, and contribute to the economic growthof countries throughout the world, as well as development oflocal communities.

Marubeni Group Health Declaration
The Marubeni Group has established the Marubeni Group
Health Declaration based on the Marubeni Group Basic Policy
on Occupational Health and Safety, as follows.

Marubeni Group Health Declaration
Employees are a vital asset for the Marubeni Group, and theirhealth is of paramount importance. The Group has therefore
positioned maintaining and promoting employee health as a
top management priority.
The Marubeni Group supports employees’ success byworking to create an environment where each individual canautonomously and proactively take steps to maintain andpromote his or her health. These efforts will lead to the growthof the Marubeni Group.

Framework
Marubeni Health Promotion Structure
Marubeni has established the Marubeni Health Promotion
Structure, under the responsibility of the director in charge ofthe Human Resources Department. The system promotes
health and productivity management through the coordination of four groups: occupational physicians (Internal Medical
Clinics), the Health Insurance Association, the Human
Resources Department, and health and productivity management promotion officers selected from among the Company’s
employees. Representatives of these groups meet at a HealthManagement Promotion Meeting to review health management measures and discuss future initiatives. The HealthManagement Promotion Committee, which is made up ofrepresentatives from the Internal Medical Clinics (occupational
physicians), the Health Insurance Association, and the Human
Resources Department, meets twice a year to discuss healthprojects of the Health Insurance Association and various
health management initiatives, and other matters relating to
occupational health and safety.
In addition, a legally mandated Health Committee is chairedby the Chief Health and Safety Supervisor (General Managerof the Human Resources Department) and comprises members including health and productivity management promotion officers in each Business Division and the Corporate Staff
Group; the Internal Medical Clinics (occupational physicians);

61

MARUBENI CORPOR ATION

and representatives of the labor union and the Health Insurance Association. The committee meets once a month to discuss various issues including health management and healthand productivity management initiatives, improving theworking environment, measures to tackle long working hours,
and countermeasures for occupational accidents.
Marubeni Health Promotion Structure
Chief HealthManagement Officer(director in charge ofthe Human Resources
Department)

HealthManagement
Promotion
Meeting

Health Management
Promotion Committee

Human Resources
Department

Health Insurance
Association

Health and productivity management
promotion officers(employees)

Occupational
physicians (Internal
Medical Clinics)

Initiatives
Marubeni Health Project
Under the Marubeni Health Project, we will continuously rollout various initiatives based on four key themes: 1) Improving
health literacy, 2) Strengthening countermeasures against

cancer and lifestyle diseases, 3) Strengthening mental healthmeasures, 4) Strengthening initiatives for maintaining andpromoting women’s health.

1) Improving health literacy
In cooperation with the Health Insurance Association and occupational physicians, Marubeni conducts initiatives to improve employees’
health literacy.
Measures (Initial fiscal year)
Setting and announcement of KPIs for health(FYE 3/2020)

Overview
Set and announced focus health indicators as Company KPIs. Used indicators for discussing integrated measures based on regular reviews.

Introduction of health management app and distribution ofDistributed health management app and app-linked body composition monitor to improve health literacy of
app-linked body composition monitor on voluntary basis
employees and their families.
(FYE 3/2020)
Walking events (FYE 3/2019)

Held walking events in conjunction with health management app. Held in-house award presentation.

Strengthening of efforts to achieve 100% participation in
regular health examinations (FYE 3/2019)

Focused efforts on ensuring participation in legally mandated regular health examinations, which play a significant role in early discovery and treatment of disease. Recommended participation to every employee yet tohave a health examination to achieve 100% participation every year.

Strengthening of initiatives to provide healthy menu
options at staff cafeterias (FYE 3/2019)

Held a health promotion campaign, provided special menu options in support of blood donors, and labeled
nutritional information, among other measures.

2) Strengthening countermeasures against cancer and lifestyle diseases
Among our measures to maintain and promote health, we focus intensively on countermeasures against cancer and lifestyle diseases, which
include the following.
Measures (Initial fiscal year)

Overview

Expansion of cancer screening subsidy (FYE 3/2020)

Expanded screening subsidies for prostate cancer, cervical cancer, and breast cancer to support early
detection.

Strengthening of smoking cessation measures(FYE 3/2019)

Expanded subsidies for smoking cessation therapy, began smoking cessation therapy program at our Internal
Medical Clinics, and ran smoking cessation campaign.

Strengthening of measures for employees eligible for specific health guidance (FYE 3/2019)

Provided health and nutrition guidance from occupational physicians, public health nurses, and registereddieticians at our Internal Medical Clinics, not only for employees aged 40 and above, who qualify for specifichealth guidance, but also for younger employees.
Increased guidance participation rate by sending health examination recommendations from the Human
Resources Department to eligible employees.

Participation in trial program using IoT for type 2 diabetes(Ministry of Economy, Trade and Industry; PRISM-J)(FYE 3/2019)

Provided information to target individuals about participation in a clinical study using IoT on preventing theexacerbation of diabetes.

Sleep apnea syndrome treatment program at Internal
Started sleep apnea syndrome screening and treatment at our Internal Medical Clinics.
Medical Clinics (FYE 3/2018)
Practical Health Seminars; Three-month Intensive Program(FYE 3/2018)

Ran a program aimed at improving lifestyle and exercise habits.
The three-month intensive program involves eight lectures and workshops, and aims to eliminate metabolic
syndrome through guidance on daily meals and exercise.

Introduced fully subsidized brain checkups (FYE 3/2016)
and full-panel medical checkups (FYE 3/2015)

Fully subsidized full-panel medical checkups for employees in the fiscal year in which they reach ages 35, 40, 45,
50, and 55, as well as brain checkups for employees in the fiscal year in which they reach ages 45, 50, and 55.
(Implemented ongoing partial subsidy for full-panel medical checkups for employees aged 35 and over,other than at the ages specified above.)
Also began offering fully subsidized full-panel medical checkups and brain checkups for employees who
have retired at the mandatory retirement age.

Enhancement of health guidance from registered dieticians Established a system for registered dieticians to provide specialist diet management and guidance, etc., at our(FYE 3/2011)
Internal Medical Clinics.
Enhancement of health guidance from public health nurses Established a system for public health nurses to provide individual health guidance and consultations, etc., at(FYE 3/2009)
our Internal Medical Clinics.
Introduction of H. pylori testing (FYE 3/2009)

Added H. pylori test to health examination to enhance early detection of and treatment for diseases such as
stomach cancer.

Introduction of Hepatitis B and Hepatitis C testing(late 1990s)

Added viral hepatitis testing to health examination to enhance prevention and early detection of cirrhosis andliver cancer.

Smoking cessation measures (late 1990s)

Implemented full indoor smoking ban at Tokyo Head Office and Osaka Branch, and introduced designatedsmoking areas at other branch offices.
Implemented smoking bans or designated smoking areas at overseas offices, in accordance with local laws
and regulations.

SUSTAINABLE DEVELOPMENT REPORT 201962

Social > 4. Health and Safety

3) Strengthening mental health measures
Marubeni has recognized mental health as an important issue for improving occupational health and safety, and is taking the following
measures for employees and their families.
Measures (Initial fiscal year)

Overview

Introduction of support services to assist people who have
had mental health issues returning to work (FYE 3/2019)

Provided support for the return to work of people who have had mental health issues through counselingbefore and after returning.

Expansion of employee assistance program (EAP) services;
promotion of service use; trial counseling (FYE 3/2019)

Offered counseling sessions on a trial basis to all new employees and newly appointed junior managers in order
to raise awareness of EAP services and strengthen self-care and line care.
Also, provided self-check and mental health study programs and articles on the intranet to promote accurate knowledge and awareness regarding mental health care and to assist employees in monitoring their own
mental condition.

Stress checks (FYE 3/2017)

Conducted stress checks for employees at all offices in Japan and overseas (including employees on assignment), also covering offices where there is no legal requirement.

Introduction of EAP services (FYE 3/2007)

Established consultation desk at our Internal Medical Clinics and in the Human Resources Department. Establishedexternal counselor consultation desk, available to employees and their families on a 24-hour, year-round basis.

Expansion of examination times for mental health outpatients at Internal Medical Clinics (FYE 3/2007)

Increased number of examination times for mental-health related outpatients from one to two a week.

Mental health care-related training (FYE 3/2007)

Conducted training related to mental health care for new employees, line managers, employees posted overseas and their families.
Created and distributed a manual with information about mental health care and consultation desks.

4) Strengthening initiatives for maintaining and promoting women’s healthMarubeni recognizes maintaining and promoting women’s health as an issue to be addressed, and will strengthen the following initiatives
going forward.
Measures (Initial fiscal year)

Overview

Expansion of subsidies for cervical and breast cancer
Expanded subsidies for cervical and breast cancer screening.
screening (FYE 3/2020)
Women’s health maintenance and promotion literacy semi- Held seminars by external experts to increase awareness of all employees with regard to maintaining and pronars (FYE 3/2019)
moting women’s health.
Establishment of dedicated health consultation desk for
Established a consultation desk for women’s health issues.
women (FYE 3/2019)
Dissemination of articles on “Women’s Health Maintenance Used Company-wide notification system to spread knowledge about maintaining and promoting women’sand Promotion” to all employees (FYE 3/2019)health to all employees.

Establishment of Internal Medical Clinics
The Internal Medical Clinics at the Tokyo Head Office and Osaka
Branch play an important role in promoting health management. At the Tokyo Head Office Internal Medical Clinic, specialist departments for internal medicine, dermatology, radiology,
neuropsychiatric, and dental services are available for employee
consultations at any time. Regular annual and specified healthexaminations are conducted by the Internal Medical Clinics, andbased on the results, employees can receive follow-up services
including re-testing and other treatment for lifestyle diseases,
as well as health guidance from an occupational physician,public health nurse or registered dietician.

Initiatives on Global Health Issues
Marubeni is expanding its business globally, with businesssites in 66 countries/regions around the world.
HIV/AIDS, tuberculosis, and malaria are serious problems insome of these countries/regions.
Marubeni adopts a proactive approach to these and otherglobal health issues. We take appropriate and timely measuresagainst infectious diseases such as HIV/AIDS, tuberculosis,
and malaria, overseas and in Japan.
Overseas, we strive to collect information and understandthe situation regarding the outbreak and spread of infectious
diseases in collaboration with occupational physicians, based on
information provided by the WHO and local authorities, andon-site surveys. Employees and their families receive health63

MARUBENI CORPOR ATION

examinations prior to travel overseas, as well as vaccinations
against infectious diseases that pose a risk at overseas postings.
Furthermore, when employees based in Japan travel to areas
where there is a high risk of infection, they are given appropriate
cautions and business trips are restricted if necessary.
In Japan, we offer vaccinations against influenza to all
employees, and our Internal Medical Clinics offer vaccinations
against infectious diseases such as measles, rubella, andmumps. Furthermore, the Health Insurance Association subsidizes employee vaccinations at external medical institutions.

Initiatives on Crisis Management
We recognize that people at every business site of the MarubeniGroup in Japan and overseas are exposed to various risks,
including acts of terrorism, natural disasters, civil unrest, robbery, traffic accidents, aviation accidents, injury, and disease. In
particular, we have positioned crisis management at overseas
locations as a highly important Company measure. When an
incident occurs, we make the safety of employees and theirfamilies our primary concern. As such, we strive to foster everyday awareness of crises, and we have established a permanent
Overseas Crisis Management Headquarters that is able torespond immediately should a crisis occur.
Specifically, the Overseas Crisis Management Headquarters
has prepared a manual summarizing crisis management measures, such as initial actions to be taken in the event of a crisis, andconducts crisis management training for employees who areassigned overseas and their accompanying family members. We
have a system in place for gathering and analyzing the latest
public security information from areas around the world and shareit with the relevant people. When an incident occurs, the Headquarters solely controls related information about the incident
coordinating with overseas offices to make and implement appropriate judgments and countermeasures.

Support for Overseas Assignees and Their Families
Currently, there are approximately 900 Marubeni employees
and around 900 of their family members living overseas on
assignment from Japan. Ensuring the health of employees andtheir families is essential for enabling overseas assignees toperform at their best.
Before and during overseas assignments, we conduct healthexaminations and training for employees and their families to getan accurate appraisal of their health status and raise their awareness about disease prevention and health maintenance. We
place particular emphasis on health examinations in order toachieve prevention and early treatment of diseases, and in addition to the legally mandated examination for employees assigned
overseas, we require each employee to undertake annual healthexaminations during their assignments. We aim to achieve 100%
participation by following up on employees who have not had
their examinations. We also offer annual health examinations andexaminations after repatriation to accompanying family members. If health examination services are not available at theassignment location, our system for subsidizing travel to a
nearby area with advanced medical facilities or to Japan ensures
employees’ peace of mind. We encourage both employees andtheir families to consult with occupational physicians regarding
examination results and their daily health status.
We have systems in place to transport people to a nearby
area with advanced medical facilities or Japan in the case ofan emergency so that they can receive the necessary treatment. We also partner with specialist organizations to provide
nursing care support for employees’ family members living
apart from them in Japan.

Management of Working Hours and Encouraging
Use of Vacation Time
The Marubeni Group has established guidelines for the management of working hours to enable working styles that ensure thehealth and safety of employees, as well as the Company’s sustainable growth through improved productivity. The guidelines
specifically call for working hours to be properly ascertained
from the perspectives of observing labor-management agreements under Article 36 of the Labor Standards Act, eliminating
long working hours, and properly managing working hours. The
guidelines also call on those in management and supervisory
roles outside the scope of working hour management to trackworking hours to ensure occupational safety (i.e. health management). In addition, Marubeni holds individual interviews withdepartments that consistently register long working hours andtakes steps to reduce chronic long working hours.
In addition to compliance with all laws and regulations,Marubeni conducts the Marubeni Cool & Smart (MaCS) Work

Project. The aim of the project is to strengthen competitiveness by making all companies, organizations, and employees
fully aware that time is a finite resource, and encouraging
them to pursue higher levels of efficiency and productivity.
The project designates times for which overtime is prohibitedand promotes a shift toward morning-oriented working times.
Work after 8 p.m. is not permitted in principle, and prohibited
after 10 p.m. Measures to encourage morning-oriented working times include providing breakfast at Company cafeterias,
and paying overtime rates for early morning work at the samerate as late-night overtime.
With regard to the use of vacation time, Marubeni encourages employees to maintain and promote their health, andseeks to ensure employees have the mental health and good
physical condition to efficiently produce high-quality results.
To this end, in addition to annual paid holidays, the Company
also offers its own unique special leave systems, such as
all-season special leave, family support leave, and recharge
leave. Every employee is encouraged to concentrate fully on
work during work hours, and to take the time to fully relax
during vacation periods.

Occupational Accidents
Marubeni strives to prevent the incidence of occupational
accidents. In the event that an accident does occur, we ensurethat it is promptly reported to the Human Resources Department in every case. Accidents are also reported to the HealthCommittee, and every effort is made to prevent recurrence.
Accidents and incidents at Marubeni Corporation or any of its
Group companies are reported as appropriate through thecompliance incident reporting channel. Depending on thenature of the incident, we carry out follow-up investigations
and checks and implement measures to prevent recurrence.
Targets• Zero fatal accidents• Zero lost-time injuries• 100% participation in health examinations by employees
assigned overseas

OHSAS 18001 Occupational Health and Safety
Management System Certification Status
A number of Marubeni Group companies have acquired
OHSAS 18001 certification. OHSAS 18001 Occupational Healthand Safety Assessment Series, a management system for
managing occupational health and safety risks, stipulates
requirements for continuously improving performance. The
system prescribes a series of processes: setting an occupational health and safety policy, establishing targets and actionplans, evaluating initiatives taken to achieve the targets, andimproving on them. As of March 31, 2018, 14 of 430 MarubeniGroup companies, or 3.3%, had acquired certification. By
continuing to encourage acquisition of the certification within
the Group, and thereby ensuring due consideration for occupational health and safety, we are working toward creating anorganization where each employee can achieve their fullpotential with a view to increasing corporate value.

SUSTAINABLE DEVELOPMENT REPORT 201964

Social > 4. Health and Safety

Related Data

Training and Education

Occupational Health and Safety Data

Lost-time injuries frequency rate*1
Occupational illness frequency rate*2

Program
FYE 3/2018

FYE 3/2017

FYE 3/2016

0.36

0

0

0

0

0

No. of occupational accidents or incidents leading toinjuries or fatalities*1

5

4

0

No. of fatal occupational accidents*3

0

0

0

All the indicators for FYE 3/2018 are assured by an external assurance provider based on the international standard ISAE 3000.
＊1. Figures for Marubeni Corporation. The lost-time injuries frequency rate is the frequency rate of occupational injury cases that result in one or more daysof employee absence. Lost-time injuries frequency rate = Lost-time injuries / Total working hours × 1 million. As for occupational injuries, there were nocases that required revisions in the labor safety and health system or improvement in the work environment. There were other cases of falling accidents
in stairways or corridors, but none which required corporate measures.
＊2. Figures for Marubeni Corporation. Occupational illness frequency rate = No. of occupational illnesses / Total working hours × 1 million＊3. Figures for Marubeni Corporation.

Usage of Internal Medical Clinics
Number of users in FYE 3/2018 (cumulative users)

OutlineTargetNumber ofparticipants(FYE 3/2018)

Number ofparticipants(FYE 3/2017)

New graduates

135

164

Employees prior to
becoming GM for Sec.

228

102

Package program for
new graduates

Lecture by head of the medical clinic on “safety andhealth management”

Mental health

Lecture by head of the medical clinic on “working hour
management, health management, and mental health care”
from the perspective of developing subordinates

Training for new GM
for Dept.

Lecture on “working hour management, healthmanagement, and mental health care”

New GM for Dept.

26

27

Promoted training for
Administrative Class(upper tier)Lecture on “working hour management, healthmanagement, and mental health care”

Employees promoted in
Administrative Class(upper tier)11

14

4th-year training for
Junior Professional Grade

Lecture on “working hour management, healthmanagement, and mental health care”

Junior Professional
Grade in their fourth year

104

117

4th-year training for
Administrative Class

Lecture on “working hour management, healthmanagement, and mental health care”

Administrative Class intheir fourth year

34

46

Career development

Lecture on “health management”

Employees aged 49-55

116

128

For the year: Approx. 26,000(Medical examination: 3,700; General treatment: 18,000; Specifichealth guidance: 700; Consultation and other: 3,600)

External Evaluation
Inclusion in Health & Productivity Stock Selection

Stress Checks

Number of subjects
Number of respondents (response rate)

FYE 3/2018

FYE 3/2017

4,369

4,497

3,906 (89.4%)

4,027 (89.5%)

Regular Health Examinations
FYE 3/2018

FYE 3/2017

Participation in health examinations in Japan(legally mandated)

97.6%

97.6%

Participation in health examinations overseas

95.3%

74.3%

Legally Defined Overtime and Use of Paid Vacation Time (Company-wide Average)
FYE 3/2018
Number of hours legally defined overtime (monthly)
Days of paid vacation time used (annual)

65

MARUBENI CORPOR ATION

19.2
hours/month12.3 days

In 2015, Marubeni was selected in the Health & Productivity
Stock Selection Program by the Ministry of Economy, Tradeand Industry and the Tokyo Stock Exchange (TSE). Launched
in FYE 3/2015, this program recognizes TSE-listed companies
that exhibit excellence in strategically practicing “health andproductivity management,” thereby making employee healtha management issue. Marubeni has
been developing more sophisticated healthcare management systems in order to help employees
improve their health, while also
supporting employees so that they
can have more fulfilling social andprivate lives. Going forward, we willcontinue to invest in employee
health to further boost our global
competitiveness.

Marubeni Certified as a Health and Productivity
Management Organization (White 500)
As an organization with an excellent track record of healthand productivity management, Marubeni was certified as a
Health and Productivity Management Organization (White
500) for 2019, by the Ministry of Economy, Trade and Industry
and the Nippon Kenko Kaigi on February 21, 2019.
The Certified Health and Productivity Management Organization Recognition Program highlights outstanding enterprises

engaged in efforts to advance health and productivity management based on initiatives that align with regional healthissues and health promotion endeavors supported by the
Nippon Kenko Kaigi. Marubeni has been selected for a second
consecutive year.
The Marubeni Group has formulated the Marubeni Group
Health Declaration, and Marubeni has established the Marubeni
Health Promotion Structure. Under the Marubeni Health Project, we are working to improve employees’ health literacy,
strengthen countermeasures against cancer and lifestyle diseases, strengthen mental health measures, and strengthen
initiatives for maintaining and promoting
women’shealth.
The
Marubeni Group supports employees’ success by working to create
an environment where each individual can autonomously and proactively take steps to maintain andpromote his or her health. These
efforts will lead to the growth of the
Marubeni Group.
Ministry of Economy, Trade and Industry press release

https://www.meti.go.jp/english/press/2019/0221_002.html
For details about health and productivity management at
Marubeni, please refer to Marubeni’s website:

https://www.marubeni.com/en/sustainability/
human_resources/health/SUSTAINABLE DEVELOPMENT REPORT 201966

Social > 5. Responsibility to Customers

5. RESPONSIBILITY TO CUSTOMERS
PolicyPolicy on Initiatives for Food Safety and Reliability
In the Food Business, the Marubeni Group supplies a wide
range of products to meet the increasingly diverse needsof the times. In a number of our businesses, through ourownership of manufacturing and processing facilities, wehave built an extensive value chain stretching from raw
As an example of our initiatives on food safety and reliability,
at Group company Toyo Sugar Refining Co., Ltd. we produce
and sell various types of sugar, as well as functional ingredients such as Rutin and Hesperidin that can be used in foodproducts, beverages, supplements, and cosmetics.
We will proceed to develop new products, making full use
of our proprietary enzyme processing technologies andmaterial procurement to delivery of products and services
to consumers. In this way, we are contributing to foodsafety and reliability, while addressing nutrition issues by
providing food products with outstanding functionality.

accumulated expertise, while addressing nutrition issues
through the sale of these functional ingredients.
Overview of Rutin

http://www.toyosugar.co.jp/en/item/agrutin.html

Japan Food Additives Association

Japan Soft Drink 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.

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 Food Additives Association
Overview of Hesperidin

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

http://www.toyosugar.co.jp/en/item/hesperidin.html

All Japan Coffee Fair Trade Conference

Initiatives
Compliance System for Ensuring Safety
and Reliability of Processed Food Products
and Beverages
Marubeni strives to keep up with industry trends, including
through membership of the Association for the Safety ofImported Food, Japan and the Japan Food Hygiene Association. At the same time, to improve our technology, we havebeen working in partnership with an external specialist organization since 2004, accumulating expertise on food safety andhygiene management. In particular, to ensure the safety ofimported agricultural, livestock, and marine produce, as wellas processed food products, we gather information and checksafety ourselves. Furthermore, depending on product characteristics and risks, we may have external specialists perform
plant inspections of local suppliers.
If a food safety-related incident does occur, we have systems in place to implement immediate response measures incommunication with relevant government agencies and suppliers. These initiatives help to build awareness of food safety
among overseas suppliers, leading to improvement of safetymeasures throughout our supply chain.

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MARUBENI CORPOR ATION

We ensure that employees receive appropriate training
and that relevant information is shared. We hold internalGroup training for all newly assigned employees twice annually, and quarterly Group compliance liaison meetings withGroup companies.
Twice annually we hold seminars on selected topics andissues related to food safety, such as ensuring safety of foodproduct imports. In FYE 3/2019, we invited an external expert
to hold a seminar on the revised Food Sanitation Act inJapan. Group companies and suppliers were invited to participate in the seminar as part of our efforts to raise awareness of food safety.

Participation in Food Safety Initiatives andAssociations, etc.

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

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.

All Japan Coffee Fair Trade Conference

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

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.

SUSTAINABLE DEVELOPMENT REPORT 201968

Governance > 1. Corporate Governance

GOVERNANCE
To build a better tomorrow, the Marubeni Group has identified Governance for Coexistence with Society as an essential categoryof Fundamental Materiality.
We will deepen our engagement with diverse stakeholders, enhance the effectiveness of the Board of Directors’ oversightfunction, and bring greater transparency to our management in order to build a governance framework that allows for improved
coexistence with society and works toward achieving sustainability.

Corporate Governance Structure
General Meeting of Shareholders
Election and dismissal

Board ofDirectors

Election and dismissal

Audit

Directors
10 (four External)

1. CORPORATE GOVERNANCE

Accounting
audit

Audit &
Supervisory Board

Audit & Supervisory
Board Members
Five (three External)

Audit &
Supervisory
Board
Member’s
OfficeNomination Committee

1-1. Corporate Governance

Governance andRemuneration Committee

Election and dismissal

Basic Policy on Corporate Governance
The Company believes in responding to the expectations of its
stakeholders—shareholders, customers, local community andemployees—by increasing its corporate value to become aproud corporate group committed to social and economic
development and safeguarding the global environment byconducting fair and upright corporate activities in accordancewith the spirit of the Company Creed of “Fairness, Innovation,and Harmony.” To realize this, we have been making efforts toenhance corporate governance as the platform for ensuringsoundness, transparency and efficiency of management. To
coexist with society based on social expectations anddemands, we will deepen our engagement with stakeholders,enhance the effectiveness of the Board of Directors’ oversightfunction, and bring greater transparency to management inorder to strengthen our governance system – in other words,
to practice Governance for Coexistence with Society.

Audit
Department

President

Framework(a) Ensuring rapid and efficient decision-making(b) Ensuring appropriate supervisory functions
The Company ensures appropriate supervisory functions byimplementing various measures, including appointing External Directors that account for a third or more of the membersof the Board of Directors; establishing the Audit & Supervisory
Board Member’s Office; fostering collaboration among the
Audit & Supervisory Board Members, the Audit Department
and the Accounting Auditor; and carrying out advance briefings, on the same occasion, on matters referred to the Boardof Directors for both External Directors and External Audit &Supervisory Board Members.

Compliance Committee

Internal Control Committee
Committee of
Executive Officers

Disclosure Committee

Board of Directors
The Board of Directors comprises 10 Directors (including four
External Directors; nine males and one female. The percentage
of female directors on the Board is 10.0%), and makes decisions
regarding management policy and other important mattersand supervises the execution of duties by Directors.
To clearly segregate management and execution, the Chairman of the Board without representative rights and the authority for business execution, in principle, chairs the Board of
Directors meetings.
The term of Board of Directors is one year to clarify management responsibility and flexibly build optimum management
structure in response to changing management environment.
For information on attendance at meetings of the Board of
Directors, please see pages 6-13 of the Reference Materials for
the General Meeting of Shareholders.

Audit & Supervisory Board
The Audit & Supervisory Board comprises five Audit & Supervisory Board Members (including three External Audit &Supervisory Board Members). The Company adopts a

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MARUBENI CORPOR ATION

Accounting audit

Investment and Credit Committee

Sustainability Management Committee

The Company ensures rapid and efficient decision-making byappointing Directors who serve concurrently as Executive
Officers and are well-versed in the Company’s diverse business activities.

(Cooperation)

Internal audit

Corporate Management
Committee

Committee ofHeads of Divisions

The Company conducts a diverse range of business globally.
Accordingly, the Company has established a corporate audit
governance model of a company with auditors in which theBoard of Directors consisting of Internal Directors and External
Directors has been established (to appoint External Directors
and liaise with the Audit & Supervisory Board) in order toensure rapid and efficient decision-making and appropriate
supervisory functions in management. The Company has
determined that this governance model is functioning effectively as set forth in items (a) and (b) below. Therefore, theCompany will retain the current governance structure.

Accounting Auditor

Appointing, removing, and supervising(Business Execution System)

Business Group
Business DivisionCorporate Staff Group
Domestic and Overseas Branches & Offices

corporate audit governance system and each Audit & Supervisory Board Member is responsible for overseeing Directors
in the execution of their duties by attending important meetings, such as the Board of Directors meetings, and by monitoring business activities and financial conditions inaccordance with the auditing policies and plans set by the
Audit & Supervisory Board.
The Audit & Supervisory Board Members and the Accounting Auditor are striving to grasp the audit status of each otherthrough measures such as exchanging information at monthly
meetings. The Company’s Accounting Auditor for FYE 3/2019
is Ernst & Young ShinNihon LLC. The Audit & Supervisory Board
Members and the Audit Department, the department that performs internal audits, exchange opinions at monthly meetingsand implement audit operations through close cooperation.
The President holds meetings with the Audit & Supervisory
Board Members on a regular basis, reports on execution ofduties and exchanges opinions. Other Directors, Group CEOs,
COOs and Corporate Staff Group General Managers reporttheir duty execution status to the Audit & Supervisory Board
Members every year.

SUSTAINABLE DEVELOPMENT REPORT 201970

Governance > 1. Corporate GovernanceCorporate Management Committee

Nomination Committee

The Corporate Management Committee is an advisory committee for the President and consists of five Representative
Directors including the President, two Senior Managing Executive Officers and three Managing Executive Officers. It deliberates important matters related to management.

The Nomination Committee is an advisory body to the Boardof Directors and the majority of its members are External
Directors/Audit & Supervisory Board Members. The Nomination Committee deliberates on nomination of candidates forthe positions of Director, Audit & Supervisory Board Member
and President, as well as succession plans formulated andimplemented by the President (including necessary qualifications and conditions, successor candidate pool and careerdevelopment plans), and reports to the Board of Directors.
• Committee’s Members: one Internal Director, two External
Directors, one External Audit & Supervisory Board Member• Chairperson: External Director

Committee of Heads of Divisions
The members of the Committee of Heads of Divisions are thePresident, the representative directors, the Division COOs andRegional CEOs and COOs appointed by the President. They
discuss matters pertaining to budgeting, account settlement
and financial planning as well as other issues related to the
execution of business.

Committees
The Company has established various committees forstrengthening corporate governance. Main committees andCommittee Roles
Committee

Role

Chairman

Meeting Frequency

Investment and Credit
Committee

Projects pending approval, such as investments, are discussed and approvedby the Investment and Credit Committee prior to appearing on the Corporate
Management Committee’s agenda.

Managing Executive
Officer, Member ofthe Board(Nobuhiro Yabe)

Held three times amonth in principle

Compliance Committee

The Compliance Committee provides support and guidance with regard topracticing compliance and as such develops, maintains, and manages the
Marubeni Group’s compliance structure.

Senior Executive Vice
President, Member ofthe Board(Yukihiko Matsumura)

Held four times ayear and wheneverelse necessary

Sustainability Management
Committee

The Sustainability Management Committee defines/redefines materiality
inclusive of ESG (environmental, social and governance) considerations acrossall business domains and deals with sustainability-related matters, including
ESG compliance.

Managing Executive
Officer, Member ofthe Board(Nobuhiro Yabe)

Held once a year inprinciple andwhenever else
necessary

Internal Control Committee

The Internal Control Committee is responsible for developing and monitoring
the enforcement of internal control policies based on the Companies Act aswell as drafting revisions when necessary. It also establishes, operates, andverifies the effectiveness of internal control systems for financial reports inaccordance with the Financial Instruments and Exchange Act, while also
drafting internal control reports.

Senior Executive Vice
President, Member ofthe Board(Yukihiko Matsumura)

Held whennecessary

Disclosure Committee

The Disclosure Committee creates disclosure policies, ensures that internal
systems concerning legally mandated and timely disclosure are in place, anddecides the importance and appropriateness of the information targeted forlegally mandated or timely disclosure.

Managing Executive
Officer, Member ofthe Board(Nobuhiro Yabe)

Held whennecessary

Governance and Remuneration Committee
Committee of Executive Officers
The Committee of Executive Officers consists of 34 Executive
Officers (five of whom also serve as Director) and its purpose
is to communicate management policies issued by the President and other information and discuss matters that affectbusiness execution such as financial performance and resultsof internal audits.

The Governance and Remuneration Committee is an advisory
body to the Board of Directors and the majority of its members are External Directors/Audit & Supervisory Board Members. The Governance and Remuneration Committee
deliberates on the policy for determining remuneration for
Directors and Executive Officers as well as appropriateness of
the level of remuneration, and reports to the Board of Directors. The committee also conducts evaluation and review
concerning the overall Board of Directors, including its composition and operation, and reports to the Board of Directors.
• Committee’s Members: two Internal Directors, two External
Directors, two External Audit & Supervisory Board Members• Chairperson: External Director

Roles and Functions of External Directors and External Audit & Supervisory Board Members

Overview of Corporate Governance Systems
Organization Form
Chairperson of the Board
Number of Directors
Number of Audit & Supervisory
Board Members

Company with auditors
Chairman
10 (including 4 External
Directors*)
5 (including 3 External Membersof Audit & Supervisory Board*)＊ All External Directors and Audit & Supervisory Board Members are
independent officers as defined by the Tokyo Stock Exchange.

Roles and Functions of External Directors
Number of Times Convened in FYE 3/2018
Board of Directors

18 times

Audit & Supervisory Board

10 times

Corporate Management Committee

30 times

Committee of Heads of Divisions

3 timesCommittee of Executive Officers

4 times

External Directors offer opinions on business management
drawn from their broad experience and high-level perspective,
and give advice to better implement corporate governance.
External Directors attend the meetings of the Board of
Directors and the Committee of Executive Officers, making
active contributions from the perspective of internal control.
Prior to meetings, External Directors are provided with agendas and fully briefed on management issues and project execution status. Two of the External Directors are members of
the Governance and Remuneration Committee (one is thechairman) and two are members of the Nomination Committee (one is the chairman).
For reasons of appointment, please refer to Marubeni’s
website:https://www.marubeni.com/en/company/governance/
data/20181221cg_en.pdf#page=6

Roles and Functions of External Audit &Supervisory Board Members
External Audit & Supervisory Board Members monitor the
Directors’ execution of duties and draw upon their wealth ofprofessional expertise to offer various recommendations andadvice to enhance the Audit & Supervisory Board.

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MARUBENI CORPOR ATION

their roles are as follows:

External Audit & Supervisory Board Members attend meetings of the Audit & Supervisory Board and also the Board of
Directors and Committee of Executive Officers. In addition,
the External Audit & Supervisory Board Members meet with
the President on a regular basis, as well as with members of
the Audit Department, Corporate Accounting Department,
and external auditors, for an exchange of opinions. They
receive audit-related information from Full-time Audit &Supervisory Board Members, which they use in the executionof their auditing duties. Two of the External Audit & Supervisory Board Members are also members of the Governanceand Remuneration Committee and one is a member of theNomination Committee.
For reasons of appointment, please refer to Marubeni’s website:

https://www.marubeni.com/en/company/governance/
data/20181221cg_en.pdf#page=10

Executive Compensation
Amounts of executive compensation, details of policies regarding calculation methods used to decide compensation, andmethods for making compensation decisions are as follows.
Compensation for Directors and Audit & Supervisory Board
Members is decided based on limits to the amount of totalcompensation for Directors and Audit & Supervisory Board

SUSTAINABLE DEVELOPMENT REPORT 201972

Governance > 1. Corporate GovernanceMembers determined by the General Meeting of Shareholders.
Compensation for Directors is decided through a process
involving discussion and formulation of proposals by the Governance and Remuneration Committee, a body whose membership consists of a majority of External Directors and Audit &Supervisory Board Members, with the proposals then being
approved by the Board of Directors. Compensation for individual Audit & Supervisory Board Members is decided throughdeliberation by the Audit & Supervisory Board Members.
Remuneration for Directors other than External Directors
consists of basic compensation, which is a fixed amount corresponding to each Director’s position, and variable compensation, which is linked to business performance in the previous
business year. Instead of cash, 20% of the aggregation of basic
compensation and variable compensation is granted as compensatory stock options, in order to share the benefits and risksof stock price fluctuations with shareholders and further boost
motivation to improve the Company’s stock price and corporate value. Compensation for Audit & Supervisory Board Members, all of whom are completely independent from businessexecution, consists entirely of basic compensation.
.

Total remuneration and other payments for
Directors and Audit & Supervisory Board Members
in FYE 3/2018•D irectors (other than External Directors): six;
Total remuneration, etc.: ¥512 million•A udit & Supervisory Board Members (other than External
Audit & Supervisory Board Members): three;Total remuneration, etc.: ¥76 million• External Directors/Audit & Supervisory Board Members: ten;
Total remuneration, etc.: ¥84 million

Notes:
1) The amounts less than 1 million yen are rounded off.
2) The maximum annual amount of remuneration for Directors was set at¥1,100 million (including ¥60 million for External Directors; by a resolution of the 92nd Ordinary General Meeting of Shareholders held on June24, 2016), the maximum monthly remuneration for Audit & Supervisory
Board Members was set at ¥12 million (by a resolution of the 88th Ordinary General Meeting of Shareholders held on June 22, 2012) and the
maximum annual amount of compensatory stock options for Directors(excluding External Directors) is ¥220 million (by a resolution of the
92nd Ordinary General Meeting of Shareholders held on June 24, 2016).
3) The Company abolished the retirement remuneration plan at the close of
the 83rd Ordinary General Meeting of Shareholders held on June 22,2007, which also resolved on making a final payment of retirement remuneration. In accordance with the resolution, the Company decided to pay
retirement remuneration to each Director who is eligible to receive thefinal payment either at the time of retirement as Director or at the timeof retirement as Executive Officer, whichever is later, and to each Audit &Supervisory Board Member who is eligible to receive the final payment
at the time of retirement as Audit & Supervisory Board Member. In FYE
3/2018, retirement remuneration was not paid to Directors/Audit &Supervisory Board Members who are eligible to receive a final payment
in relation to the abolition of the Retirement Remuneration plan.

Individuals to whom the total amount ofcompensation paid exceeded ¥100 million
in FYE 3/2018• Teruo Asada (Director): ¥104 million (cash compensation of¥83 million and compensatory stock options worth ¥21
million)• Fumiya Kokubu (Director): ¥128 million (cash compensationof ¥103 million and compensatory stock options worth ¥25
million)Evaluation of Effectiveness of the Board of Directors
The evaluation of effectiveness of the Board of Directors in
FYE 3/2018 was conducted as described below:

I. Framework and Method of Evaluation
1. Target•
All Directors (10 people) and Audit & Supervisory Board
Members (five people) (As of December 2017)(3) Organizational design and composition of the Board of
Directors and other bodies(4) Quality and expertise of Directors and of the Board of
Directors(5) Deliberation by the Board of Directors(6) Relationship and dialogue with shareholders(7) Engagement with stakeholders other than shareholders

4. Evaluation Process
2. Implementation Method•A questionnaire survey was conducted. (Anonymous responses.)
The Company utilized an external specialized institution for
its implementation.

3. Evaluation Items(1) Roles and responsibilities of the Board of Directors(2) Relationship between the Board of Directors and senior
executives

73

MARUBENI CORPOR ATIONThe Board of Directors deliberated in view of the results of theevaluation and review by the Governance and Remuneration
Committee concerning the overall Board of Directors, including its composition and operation, based on the responses tothe questionnaire.

II. Overview of the Evaluation Results
The Board of Directors deliberated in view of the results of theevaluation and review by the Governance and Remuneration

Committee and confirmed that, on the whole, the Board of
Directors is being operated effectively. The Company willcontinue to work to maintain and improve the effectiveness of
the Board of Directors, reflecting the results of the evaluation
and review.

Response to the Corporate Governance CodeMarubeni issued the Corporate Governance Report andMarubeni’s Corporate Governance Code Initiatives in responseto the revised Corporate Governance Code announced by the
Tokyo Stock Exchange on June 1, 2018.

Corporate Governance Reporthttps://www.marubeni.com/en/company/governance/
data/20181221cg_en.pdf
Marubeni’s Corporate Governance Code Initiatives

https://www.marubeni.com/en/company/governance/
data/20181221cgcord_en.pdf
For further information on the corporate governance structure,please refer to Marubeni’s website:

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

Marubeni will continue to enhance corporate governance inpursuit of improved medium-to-long-term corporate value.

1-2. Internal Controls
Basic Internal Control Policy
Marubeni seeks to steadily increase and maximize corporate
value through business activities that are in accordance with
its Company Creed*1 and Management Philosophy,*2 and tobuild a stable and sustainable group business foundation. To
this end, the Company, in accordance with the Companies Act
and its implementation guidelines, establishes the policy
described below (hereinafter referred to as the “Basic Internal
Control Policy”) to ensure that all business activities ofMarubeni and the business group (hereinafter referred to as
the “Marubeni Group”) made up of Marubeni and all MarubeniGroup companies (Marubeni’s consolidated subsidiaries andcompanies deemed as equivalent to subsidiaries; the same

shall apply hereinafter) are conducted appropriately. Marubeni
regularly reviews the Basic Internal Control Policy in responseto changes in social conditions so as to realize a system that ismore appropriate and efficient.
＊1. 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.
＊2. Marubeni Management Philosophy
In accordance with the spirit grounded in “Fairness, Innovation and Harmony,” the Marubeni Group is proudly committed to social and economic development and safeguarding the global environment byconducting fair and upright corporate activities.”

1-2-1. System for ensuring that the execution of duties by Directors and employees
complies with laws and regulations and the Articles of Incorporation(1) Corporate Governancei. Directors and Board of Directors
The Board of Directors, in accordance with laws and regulations and the Articles of Incorporation, sets the importantmatters related to management and supervises the executionof duties by Directors. To clearly segregate execution andsupervision, the Chairman of the Board without representative
rights or authority for business execution, as a rule, chairs theBoard of Directors meetings.
Directors execute business operations and report the situation of their duty execution to the Board of Directors once
every three months or more often based on operations incharge decided by the Board of Directors in accordance withthe laws, regulations and Articles of Incorporation. The term ofoffice of Directors is one year to clarify management responsibility and flexibly build optimum management structure in
response to changing business environment.

Marubeni appoints External Directors to ensure the effectiveness of corporate governance.
Marubeni adopts the executive officer system to improve
efficiency of business execution, and a system where its Group
CEOs participate in the Company’s overall management andsupervise overall operation of the respective business groups incharge by complying with the Company’s management policy.

ii. Audit & Supervisory Board Members and the Audit& Supervisory Board
Audit & Supervisory Board Members audit execution of duties
by the Directors in accordance with the Rules of the Audit &Supervisory Board and the Standards for Audit by the Audit &Supervisory Board Members by exercising their statutory
authority in collaboration with the Audit Department andAccounting Auditor.

SUSTAINABLE DEVELOPMENT REPORT 201974Governance > 1. Corporate Governance(2) Complianceiii. Blocking relationships with anti-social forces

i. Compliance system

Marubeni will stand firm against anti-social activities andforces that are threats to social order and public security, andwill never form or foster relationships with any organizationthat poses such threats.

Marubeni sets forth a code of conduct common for the
Marubeni Group such as the Marubeni Corporate Principles
and Compliance Manual for its Directors and Executive Officers (hereinafter referred to as the “officers”) and employees
to practice corporate activities in accordance with compliance.
To achieve the goal, it establishes various committees including the Compliance Committee and takes various measures.

ii. Internal whistleblowing system
To provide for a situation in which a person learns of a questionable
act from the perspective of compliance and the organizational
reporting line does not function for some reason, Marubeni hasestablished the following compliance reporting and consulting
points for the entire Marubeni Group.

(a) Marubeni Hotline (Compliance Committee line andexternal legal counsel line)
The Compliance Access Point for general compliance mattersfor the Marubeni Group(b) Marubeni Anti-Corruption Hotline
The Compliance Access Point for concerns relating to bribery
and other serious crimes involving the Marubeni Group and its
business partners(3) Internal audit
Marubeni has established the Audit Department directly
under the President to study the appropriateness of duty
execution by executing persons and compliance status andimplements internal audits by the Audit Department andself-inspection of Marubeni company-wide under instructions
from the Audit Department. The results of internal audits arereported to the Board of Directors on a regular basis.

(4) Disciplinary actions
When the execution of duties by an officer or employee resultsin violation of law or regulation, Marubeni shall seek judgement of the Governance and Remuneration Committee, anadvisory committee to the Board of Directors with the majority of members being External Directors/Audit & Supervisory
Board Members, in the case of an officer, and the Award andDisciplinary Committee in the case of an employee, and takestrict actions in accordance with relevant regulations.

1-2-2. Systems to preserve and manage information related to the execution of duties
by Directors(1) Preservation and management of informationand prevention of information leakage
Based on the Regulation for Management of Information
Assets, Marubeni sets forth the assets subject to storage, storage period and employees in charge of managing the information regarding information related to execution of duties byofficers and employees to develop a system to store andmanage information and prevent information leakage.

(2) Browsing information
The officers and Audit & Supervisory Board Members may
browse such information assets at any time.

Officers and employees with titles are given necessary authority for executing their duties based on resolutions of the Boardof Directors and the Regulations of Authority and Duties andmanage risks associated with execution of duties within thegiven scope and take responsibility for the results.

(2) Approval system
Individual projects such as important investment are deliberated by the Investment and Credit Committee, submitted to
the Corporate Management Committee and approved by the
President based on the Regulations of Job Authority Ringi
Approval Procedure. They become subject to approval by the

75

MARUBENI CORPOR ATION(4) Emergency management
In preparation for occurrence of serious issues such as a natural
disaster, Marubeni formulates Business Continuity Plans. Whena serious situation actually occurs, Marubeni establishes an
emergency task force with the President as the head based on
the said plan and makes decisions on and implements concretemeasures to limit the damage and loss to a minimum.

1-2-4. Systems necessary to ensure the efficient execution of duties by Directors(1) M anagement policy, management strategy andmanagement plan
To ensure efficient execution of duties by Directors, Marubeni
sets forth goals shared by all officers and employees at the
Marubeni Group, such as management policy, management
strategy and management plan and instill them, while establishing concrete targets that individual officers and employees
should implement for achieving the goals.

(2) Corporate Management Committee
To ensure efficient execution of duties, Marubeni establishes
the Corporate Management Committee and deliberates onhighest-order policy regarding management and importantcompany-wide matters.

(3) Business Groups and Corporate Staff Group
Marubeni has introduced the Business Group system and delegates authority to Group CEOs to enable a structure thatfacilitates swift decision-making regarding products they arein charge of in Japan and abroad. Further, the Corporate Staff
Group manages, checks and supports the Business Groups ineach specialized field to enable efficient execution of duties.

(4) Clarification of authority, duties and responsibilities
The Board of Directors decides Directors in charge and clearlystipulates each officer’s and employee’s roles, authority, responsibilities and rules for decision-making in various regulations.

1-2-5. Systems necessary to ensure the appropriateness of operations by the Group(1) Marubeni Group operation structure

Board of Directors depending on laws and regulations, Articles
of Incorporation and the importance of the project. The progress of important projects such as a new business is required tobe reported on a regular basis to the Corporate Management
Committee to strengthen individual risk management.

Marubeni shall stipulate necessary systems including a system
for appropriate reporting to Marubeni regarding managers incharge of grasping business status of Marubeni Group companies, giving instructions and supervising, guidelines regarding
the management system of Marubeni Group companies andexecution of duties by Directors etc. of each Marubeni Group
company, a system regarding appropriate management of riskof losses at Marubeni Group companies, a system for ensuring
efficient execution of duties by Directors, etc. of MarubeniGroup companies and a system for ensuring Marubeni Group
companies’ compliance with laws and regulations in order toenhance internal control of the entire Marubeni Group, improvebusiness performance and progress management.
Marubeni Group companies shall ask for advice fromMarubeni regarding important management-related mattersand report to Marubeni.

(3) Risk evaluation(2) Compliance

From the perspective of dispersing company-wide risks,
Marubeni implements integrated risk management to grasp
risks that can be quantified, such as credit and investment
risks regarding countries and regions, industries, markets
and customers.

The Compliance Committee and other committees shall support and give guidance regarding compliance activities by
Marubeni Group companies. Marubeni Hotline and Marubeni
Anti-Corruption Hotline shall be available for officers andemployees of all Marubeni Group companies.

1-2-3. Internal regulations for the risk management of losses and other related systems(1) Principle of authority and duties

Marubeni implements management of qualitative risks
including reputation risks and information security risks,
which are difficult to quantify, through enhancement of compliance structure.

(3) Establishment of system for ensuring
appropriateness of financial reporting andsafeguarding of assets
Marubeni Group shall develop, through activities, etc. of theInternal Control Committee, necessary systems for ensuring
reliability and continuous monitoring of financial reporting suchas consolidated financial statements as well as a system forensuring appropriate acquisition, storage and disposal of assets
held by Marubeni Group companies. It shall also establish theDisclosure Committee and develop the necessary system for
information disclosure in an appropriate and timely manner.

(4) Audits
The Audit Department carries out visiting audits at MarubeniGroup companies and reports the result to the Board of Directors. The Audit & Supervisory Board Members and Accounting
Auditor independently carry out audits or accounting audits
at Marubeni Group companies.

SUSTAINABLE DEVELOPMENT REPORT 201976

Governance > 1. Corporate Governance / 2. Compliance

1-2-6. Matters concerning employees assisting the duties of Audit & Supervisory Board Members,
and matters concerning the independence of these employees from Directors(1) The Audit & Supervisory Board Members
attending important meetings(2) Personnel affairs of the Audit & Supervisory
Board Members’ Office staff

Marubeni establishes the Audit & Supervisory Board Members’
Office and appoints dedicated staff members to assist in theduties of the Audit & Supervisory Board Members.

The Director in charge of human resources shall implement
personnel affairs of the Audit & Supervisory Board Members’
Office (personnel changes, evaluation, disciplinary actions,etc.) by hearing the opinions of the Audit & Supervisory Board
Members in advance and upon receiving their consent.

2. COMPLIANCE
PolicyAs it advances its global operations, Marubeni acts in accordance with the belief that compliance goes beyond merely
following the letter of the law. In its truest sense, compliancemeans corporations—as good members of society—practicing
high levels of ethics, living up to the expectations of stakeholders, and fulfilling their social responsibilities.

To achieve this type of compliance, Marubeni is reinforcing
and regularly improving its compliance systems under theguidance of the Compliance Committee, which is overseen by
the President and CEO. The Compliance Committee oversees
the Marubeni Group Compliance Manual and regularly reviews
its effectiveness and validity in light of changes in laws, regulations, and society.

1-2-7. Systems for Directors and employees to report to Audit & Supervisory Board
Members and other systems for reports to Audit & Supervisory Board Members(1) The Audit & Supervisory Board Members
attending important meetings
The Audit & Supervisory Board Members shall attend Board of
Directors meetings and receive reports from Directors on
execution of duties and other important matters. They shallalso attend the Corporate Management Committee and otherimportant meetings.

(2) Reporting by officers and employees to the
Audit & Supervisory Board Members
The President holds meetings with the Audit & Supervisory
Board Members on a regular basis, reports on execution ofduties and exchanges opinions. Other Directors, Group CEOs,
COOs and Corporate Staff Group General Managers reporttheir duty execution status to the Audit & Supervisory Board
Members every year.
Marubeni develops a system for Directors, Audit & Supervisory Board Members and employees of Marubeni Group
companies, or those who received a report from them, toreport directly or indirectly to the Audit & Supervisory Board
Members.
Notwithstanding the above, the Audit & Supervisory Board
Members may seek reports from officers and employees
whenever necessary.
Marubeni has in place a system to ensure that the person
who makes a report to the Audit & Supervisory Board Members would not be treated unfairly at Marubeni or MarubeniGroup companies because of the concerned report.

Framework
Each company within the Marubeni Group has been developing its own compliance system customized to its own businessactivities. Overseas offices and subsidiaries have also beencreating compliance systems customized to suit the laws,

regulations, and business practices of their respective countries. Overseas offices and subsidiaries formulate their compliance action plans and review their plans.

Organizational Diagram for the Marubeni Group Compliance System
Board of Directors

Audit & Supervisory Board Members

President

Chief Compliance Officer(Chairman of Compliance Committee)
ReportInstructGroup and Branch Office Compliance Committee

1-2-8. Other systems necessary to ensure effective audits by Audit & Supervisory Board Members(1) Collaboration with the Audit Department,
Accounting Auditor and Audit & Supervisory
Board Members of Marubeni Group companies
The Audit & Supervisory Board Members receive respective
audit plans in advance from the Audit Department andAccounting Auditor, and hold regular meetings to exchange
opinions regarding audit policy and audit result reports. The
Audit & Supervisory Board Members cooperate with Audit &Supervisory Board Members of Marubeni Group companies
through the Group Auditor Liaison Meeting and exchange
information regarding the development of internal controls at
each company and their operation.

77

MARUBENI CORPOR ATION(2) Appointment of external experts
The Audit & Supervisory Board independently has a contract
with a corporate lawyer, and if the Audit & Supervisory Board
Members deem it necessary, they can appoint external advisors such as lawyers and certified public accountants.

Reporting Lines(Through Supervisors)

Compliance Committee

direct control

Corporate
Management
Committee

Report or consult through regular reporting lines
Compliance reporting and consultation hotline
Feedback

Report/Consult

Secretariat (ComplianceControl Department)

Employees“Marubeni Hotline”(Compliance Committee)

Instruct/Advice

Marubeni Group Company
Compliance Officer
Compliance Access Point

Reporting Lines(Through Supervisors)“Marubeni Hotline”(External Legal Counsel)
Marubeni Group
Employees

Marubeni Anti-Corruption
Hotline (Serious Crimes,
such as Bribery)(3) Audit-related expenses
Marubeni shall allocate a budget and pay expenses arising fromthe execution of duties by the Audit & Supervisory Board Members, including the cost of appointing external experts describedabove in response to requests from the Audit & Supervisory
Board Members, through a prescribed procedure.

SUSTAINABLE DEVELOPMENT REPORT 201978

Governance > 2. Compliance

Response When a Problem Occurs

Initiatives
Stringent Application of Compliance ManualPart of the Marubeni Group’s Company Creed is “Fairness.”
This symbolizes our pledge to always conduct ourselves in afair and upright manner. We have defined Marubeni’s stanceon compliance as: “When you are faced with a choice between
integrity and profit, choose integrity without hesitation.”
Based on this stance, Marubeni has compiled the MarubeniGroup Compliance Manual, which specifies the standards of
behavior that Group officers and employees are expected tofollow in all their daily work activities. Every year, the Company’s executives and employees, as well as the presidents of all
domestic Marubeni Group companies, make a written statement to adhere to the code expressed in this manual. As of
October 2018, the Compliance Manual, now in its 15th edition,
is available in English as well as Japanese, and can be viewed
on the Company’s website.
For further information on the Compliance Manual, please refer
to Marubeni’s website:

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

Anti-Corruption Measures
Overview of the Marubeni Group’s Measures
We believe that transactions that involve unlawful conduct are
not only unnecessary, but also harmful to the MarubeniGroup’s interests. In recent years, an increasing number ofcompanies in both developed countries and emerging countries are refusing to tolerate bribery. Marubeni Group, as a
global enterprise, also has a strong interest in actively working
towards the prevention of bribery.
As a part of this effort, we have the “Anti-Corruption Handbook”. This handbook requires all executives and employeesof the Marubeni Group worldwide to adopt and follow robust
anti-bribery practice.
In addition, Marubeni has established a strict anti-bribery
system. This includes setting rules for managing the appointment of agents, consultants, subcontractors, and joint venture
partners (hereinafter, “business partners”), and rules for managing entertainment of and gifts to public officials, and requiring Group companies to set similar rules.

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MARUBENI CORPOR ATION

Initiatives for Managing Appointment of
Business Partners

When compliance problems arise, the following procedure
shall be followed.

Marubeni has set the following rules to prevent bribery not only byofficers and employees, but also by business partners. These rules
mandate that we appoint only business partners who agree with the
Marubeni Group’s anti-bribery initiatives. Appointments are madeonly after having obtained the consent of the Group Compliance
Officer and the general manager of the Compliance Control
Department.
• When appointing a business partner, carry out prior due diligence
to ascertain that the business partner has a compliance system inplace, or plans to introduce such a system in the future, to ensurecompliance with anti-bribery laws, and that Marubeni will not be
exposed to bribery and corruption risks by the business partner.
• Exchange contracts that include the anti-bribery provisions necessary to reduce or eliminate the risk of improper payments being
made between Marubeni and business partners.

1. 1When a Group or Branch Office Compliance Officer identifies a problem, he/she shall report it immediately to theCompliance Committee.
2. Upon receipt of a report, the Compliance Committee shallinstruct the relevant department(s) to investigate the problem and determine an appropriate remedy.
3. If the Chairman of the Committee considers the problem tobe serious, he/she shall report the problem promptly to the
President and Audit & Supervisory Board Members.
4. When the problem affects the whole company, the Compliance Committee shall investigate the problem by forming
an Investigation Sub-committee and shall propose appropriate remedies including measures to prevent recurrence.

Internal Whistleblowing System

Compliance Education and Training

Marubeni operates the Marubeni Hotline (formerly the “Doorof Courage”) for general compliance matters. In addition to
officers and employees of Marubeni Corporation, the hotline isavailable to officers and employees of Marubeni Group companies, who may consult with or make reports either to
Marubeni’s Compliance Committee or to an external lawyer.
The name changed in FYE 3/2018 to Marubeni Hotline (thename written in Japanese is a play on words that also carries
the meaning of “feeling relieved” or “at ease”) to make it feel
more familiar to users and provide reassurance to those whoare hesitant to use it.
In addition to the Marubeni Hotline, Marubeni has also set
up a compliance hotline called the Marubeni Anti-Corruption
Hotline for reporting serious crimes such as bribery, money
laundering, illegal accounting practices, or violations of theAnti-Monopoly Act (competition law). This is available to the
Marubeni Group’s business partners as well as to the Group’s
officers and employees.
If consultations or reports are made to these hotlines, weundertake investigations and preventive measures as necessary, and provide feedback to the person who made thereport. In responding to reports, we maintain strict confidentiality, and guarantee that those making the report or consultation will not be treated unfavorably.
In FYE 3/2018, there were 25 matters reported at Marubeni.
None of these were compliance violations that would have aserious impact on the operations of Marubeni or its consolidated subsidiaries.

The Marubeni Group conducts education and training programs throughout its organization in accordance with the
Marubeni Group Compliance Manual.
Specifically, we conduct e-Learning programs and grouptraining sessions featuring roleplay and case studies to teachemployees about general compliance topics, anti-bribery
precautions, and cartel countermeasures. In addition, theChairman of the Compliance Committee and representatives
from the Compliance Control Department make periodic visits
to Group companies and overseas offices to provide training
and raise awareness of compliance. As a company that conducts business globally, Marubeni shares information on current trends in laws and regulations with the relevant officers
and employees in order to comply with the anti-corruption
and bribery laws and competition laws of each country, particularly in cross-border transactions.

Cartel Prevention
Marubeni treats the fact that Marubeni and its subsidiaries havebeen involved in a number of cartel-related cases as a very
serious problem, and is taking steps to prevent recurrence.
Specifically, we conducted internal investigations in cooperation with an external law firm, revised our internal regulations, and are educating employees with in-house training ande-Learning, and strengthening our competition law (including
the Japanese Antimonopoly Act) compliance system by preparing and distributing an in-house manual.

Management Regulations Related toCompetition Law
Marubeni has established Management Regulations Related
to Competition Law in order to prevent acts that violate competition law (including the Japanese Antimonopoly Act), suchas acts that constitute or give the appearance of cartels or
bid-rigging. These regulations include items such as thoselisted below.
• Prohibition of exchanging sensitive information with competitors, such as pricing, transaction terms, strategies, andsales volume related to specific products or services, except
in certain cases such as when acting as transaction partners
with competitors• Prohibition of involvement in competition law violations bycustomers or other transaction partners• System for notification and reporting in the event of contact
with competitors• Reporting obligations on member organizations• Reporting obligations and response if a violation is suspected• Measures to be taken in the event of a violation

Adequacy and Transparency of Tax Payments
PolicyIn addition to maintaining a system for proper filing of tax
returns, as an enterprise that does business globally, Marubeni
will maintain and strengthen its internal organization to enable
it to respond appropriately as countries update their legal
systems to reflect the content of the Base Erosion and Profit
Shifting (BEPS) Action Plan.

Status of Initiatives“Proper filing of tax returns” is included in the matters to beobserved in the Marubeni Group Compliance Manual. In practice, we also use external experts when conducting business
transactions and filing of tax returns, which helps to ensure
proper filing. Additionally, since the announcement of the
BEPS Action Plan, various countries are enacting related legislation. We are responding in ways such as systematizing
country-by-country reporting and cooperating with local
subsidiaries and operating companies in submission of country-by-country reports and master files, and in contemporaneous transfer pricing documentation.

SUSTAINABLE DEVELOPMENT REPORT 201980

Governance > 3. Risk Management

3. RISK MANAGEMENT
Structure
In the course of its diversified business activities, Marubeni
conducts risk management activities which address risk froma variety of perspectives: macro and micro, as well as qualitative and quantitative. Increased volatility in exchange rates,
natural resource prices, and other parameters has continued
unabated. Under these conditions, the Company is promoting
integrated risk management, measuring the maximum level ofrisk on a consolidated basis and limiting it to within the scopeof total equity. By conducting thorough screening and follow-up for individual projects and further enhancing internal
control systems, the Company has established a structure thatminimizes losses due to unforeseen events.
Individual projects such as important investment are deliberated by the Investment and Credit Committee, submitted to

the Corporate Management Committee and approved by the
President based on the Regulations of Job Authority Ringi
Approval Procedure. They become subject to approval by the
Board of Directors depending on the importance of the project. Following implementation, each business department
manages its own risk exposure and, for important cases,
periodic status reports are made to the Investment and Credit
Committee, Corporate Management Committee, and theBoard of Directors.
In addition, a corporate planning and strategy department
was placed under direct control of the Group CEO, the highest
authority with regard to all business groups, thereby establishing a risk management system that has been optimized tothe business models of each business group.

Marubeni’s Risk Management Approach
PATRAC
Investment standards and withdrawal
conditions for individual projects
Internal ratings

Risk assets

Quantitative
Ongoing improvement ofintegrated risk management

Micro

Stringent evaluation procedures for new
investments and financing
Enhanced systems for post-investment
monitoring

Group-wide risk exposure management
Country risk management
Market risk management

Macro

Enhanced management ofbusiness execution risks

Qualitative

Credit management

Internal control/compliance
Customs clearance supervision
Security trade control

Initiatives
Integrated Risk Management
Marubeni operates in a diverse range of industries and regions.
Therefore, the Company has established an integrated risk
management system that not only focuses on individual risk
factors at a micro level, but also takes a macro view of thevarious factors that affect the entire Marubeni Group. Integrated risk management takes a broad overview of the assets
for the entire Group, gauging risk based on the exposure ofthese assets to each specific risk factor—country risk, industry
risk, credit risk for each client, and so on. These risks form thebasis for calculating Value at Risk (VaR), which takes into

81

MARUBENI CORPOR ATION

account dispersion effects and correlations to calculate maximum risk. VaR is used as a primary benchmark for our portfolio management.
Integrated risk management looks at various risk factors in
a comprehensive way to enable managers to understand risk
as a single monetary value. By using computer simulations
that reflect the latest information, Marubeni has made it possible to grasp the degree of risk. We calculate PATRAC*1 basedon risk assets—a value based on the maximum decline in thevalue of Group assets as quantified by the Company. PATRAC
indicates profit after tax following adjustment for risk.

Marubeni has adopted PATRAC as an important management
indicator, using it as a method of screening proposals requiring approval. Each Portfolio Unit*2 constantly takes steps toadjust its portfolio in a flexible manner, seeking to improve
PATRAC in order to achieve maximum returns for a given levelof risk, enabling the Marubeni Group to achieve steady andbalanced earnings growth.
＊1. PATRAC (Profit After Tax less Risk Asset Cost): Marubeni’s proprietary
management index for measuring the degree to which the return on arisk exceeds a minimum target＊2. Portfolio Unit: Unit of business management linking business departments and Group companies by business domain

Business Continuity Plans (for business continuity
in the event of a major disaster)
Marubeni has formulated Business Continuity Plans (BCPs) toprepare for natural disasters, including large-scale earthquakes and flooding, epidemics of new strains of infectious
diseases, and situations in which the Tokyo Head Office loses
its ability to function. In addition to BCPs for the Tokyo Head
Ofﬁce, Marubeni has also prepared individual BCPs for ofﬁces
both in and outside Japan that are essential to the continuation of corporate activities. These plans are updated regularly.
For earthquakes in particular, the whole company is working
to enhance resilience through regular evacuation drills andenhancement of BCPs, based on simulations of earthquake
scale and the extent of damage.
When a massive earthquake hit Japan in March 2011, an
emergency headquarters under the direction of the President
was established in accordance with the initial response guidelines stipulated in the BCPs. Information on the safety of
employees, the status of our infrastructure, and damage tofacilities was quickly collected and necessary measures weretaken in a timely manner.

Information and Data Security
To protect information assets and ensure the safe conduct ofbusiness activities, Marubeni has established IT security regulations and other internal rules for information security management that all officers and employees are expected tocomply with. These regulations are emphasized throughout
the company so that all employees are well informed.
In addition to rules, we also implement system measures toincrease the confidentiality, integrity and availability of information security based on our recognition of risks such as
unauthorized access to and loss, falsification and leakage of
information.
In April 2017, we reorganized our Document Management
Regulations into Information Asset Management Regulations,and created an environment in which information assets canbe stored and used safely according to their degree of confidentiality. The reason for these changes was to enhancebusiness efficiency by incorporating new rules for handlingand management of information, including production, storage, preservation and disposal of information assets.

For Group companies, we created the Marubeni Group IT
Governance Rules in April 2013 based on the above IT security
regulations and other internal rules. The unification of information security rules within the Group will contribute to stronger
security. We also call on Group companies to establish rules
equivalent to the Information Asset Management Regulations.
The Marubeni Group is creating a secure and convenient IT
environment in accordance with the Group IT Governance
Rules, and is promoting the introduction of that environment
at Group companies.

Measures to Address Climate Change
The Marubeni Group is incorporating climate change perspectives into its risk management process to respond to risks andopportunities related to climate change.
Specifically, we are including climate change as an evaluation item in the integrated risk management process mentioned above, and are analyzing and making judgments on its
potential impact on our businesses.
As a risk management measure for climate change, theMarubeni Group is analyzing the risks, opportunities andimpacts on its businesses from climate change based on a
Current Policies Scenario and a 2.0°C Scenario. We will use
the results in formulating business plans and strategies.
For further information on our climate change scenario
analysis, please refer to Marubeni’s website:

https://www.marubeni.com/en/sustainability/
environment/approach/?id=anc_04

Protection of Water Resources
In dealing with water problems in regions suffering from water
shortages, the Marubeni Group conducts risk analysis andimplements business risk assessments for new investments
and existing businesses. We make decisions on whether to go
ahead with projects after comprehensively analyzing andassessing not only local laws and regulations, but also theimpact on the local environment and communities.
For further information on water management, please refer to
Marubeni’s website:

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

Risk Assessments of Human Rights Issues,
Labor Problems and Corrupt Practices
The Marubeni Group conducts risk assessments on social
issues such as human rights issues, labor problems (includingchild labor, forced labor and illegal employment) and corrupt
practices. We make business decisions after conducting risk
analysis and assessments for new loans and investments aswell as existing businesses.
For further information on ESG risk surveys and analyses,
please refer to Marubeni’s website:

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

SUSTAINABLE DEVELOPMENT REPORT 201982

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/

83

MARUBENI CORPOR ATIONSUSTAINABLE DEVELOPMENT REPORT 201984

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.

85

MARUBENI CORPOR ATION

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.

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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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