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