GLOBALCROSSVALUE
PLATFORM

Our Views on
Sustainability

SUSTAINABLE
DEVELOPMENTREPORT

Our Views on Sustainability

19

Organization20
Assessment of Sustainability Risk

21

Engagement with Stakeholders25

Participation in International Initiatives

26

2022
丸紅株式会社
サステナブル・デベロップメント・レポート 2022
Marubeni Corporation
Sustainable Development Report 2022

18

Our Views on Sustainability
Our Views on Sustainability

Organization

Engagement with Stakeholders

Assessment of Sustainability Risk

Participation in International Initiatives

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.

In accordance with the spirit of the Company Creed of “Fairness , Innovation , and Harmony ,” the Marubeni Group is proudly committed
to social and economic development and safeguarding the global environment by conducting fair and upright corporate activities.
Our Management Philosophy clearly expresses our views on sustainability. To us, sustainability means proactively engaging inenvironmental and social issues and challenges, delivering solutions through innovation, and living by the Management Philosophy.
Corporate value is composed of financial and non-financial value; non-financial value in particular is steadily growing in importance. With
regard to sustainability, such issues as climate change, the depletion of forestry resources and human rights issues pose grave threats tosocial and environmental sustainability. Adopting and implementing clear medium- and long-term corporate policies regarding theseissues 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 business model in anticipation of
the challenges facing society.

Marubeni Corporation
Sustainable Development Report 2022

19

From now on, however, we will further fortify our traditionally strong businesses (vertical evolution) and also leverage internal and external
expertise in order to generate better results than would otherwise be possible (horizontal expansion). This is 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 and conserving the global environment.

Click here for ESG Content Index

Organization
Our governance structure allows for adequate Board supervision of important sustainability-related issues.
Specifically, the Sustainability Management Committee, an advisory body to the President, leads on the formulation of strategy, evaluationof progress and revision and monitoring of metrics and targets relating to sustainability, including climate change, water management,
pollution prevention, sustainable forestry, biodiversity, circular economy, occupational health and safety, respect for human rights,
contribution to local communities, supply chain management and responsibility to customers. The Committee reports to the Board of
Directors once a year as a minimum, and important matters are deliberated and voted on by the Corporate Management Committee andthe Board of Directors.
The Sustainability Management Committee is chaired by the CSDO (Chief Sustainable Development Officer) and counts external directors
and Audit & Supervisory Board members among its advisory members to support the management and supervision of sustainabilityrelated matters from an independent external perspective.
Starting April 1, 2019, we take the following steps to enhance our sustainability management organization:
・A Chief Sustainable Development Officer serves as the head of the Sustainability Management Committee.
・A Sustainability Management Department is newly established within the Corporate Staff (CS) Group to coordinate sustainability management
among the Business Division, the CS Group, and our branches, offices and local subsidiaries.
・A Sustainability Leader in charge of sustainability management is appointed in each business division, each department within the CS Group, andat each branch, office and overseas corporate subsidiary. A Sustainability Manager is also appointed in each business department.

Organization

Marubeni Corporation
Sustainable Development Report 2022

20

Assessment of Sustainability Risk
ESG Risk Research/Analysis
As part of our efforts to strengthen ESG risk management, we have established the following framework for conducting research andanalysis.

Risk Analysis of Existing Businesses
1. ESG Risk Analysis
Marubeni conducted research and analysis of all products and projects handled by the Company for potential ESG risks, throughcollaboration with an external consultant with objective perspectives and methods.
For the risk analysis, we referred to the ESG risk-related data published by international organizations, government organizations,research institutions, NGO organizations, etc., then narrowed down the focus to approximately 30 products and projects that are generally
likely to have potential ESG risks, and carried out detailed risk analysis on them. For more information, please refer to the ESG Risk
Research/Analysis Process below.
2. Sustainability of Consolidated Subsidiaries
In order to ensure sustainable business operations at the Marubeni Group's consolidated subsidiaries around the world, we conducted asustainability survey of our consolidated subsidiaries from the fiscal year ended March 31, 2020 to the fiscal year ended March 31, 2021.
No problems requiring immediate action were identified as a result of this survey.
Click here for more information on the sustainability surveys for consolidated subsidiaries
3. Researching Supply Chain Risks
Marubeni communicates its Basic Supply Chain Sustainability Policy (hereinafter “Basic Policy”) to its suppliers, and requests theirthorough understanding, as well as cooperation and compliance with the Basic Policy. We conduct due diligence analysis and risk
assessment of all suppliers, new and existing, through questionnaires and on-site surveys. When a case of non-compliance is confirmed,
we provide guidance or review our business with the supplier. By ensuring widespread and thorough understanding of the Basic Policy, we
work to reduce social and environmental risk.

Marubeni Corporation
Sustainable Development Report 2022

21

Sustainability Risk Assessment of Investment and Development Projects
In the fiscal year ended March 31, 2021, Marubeni adopted a“Sustainability Assessment Tool” based on international risk
management standards such as the Global Slavery Index and
Corruption Perceptions Index, in order to conduct priorassessments of sustainability risks involved in new investments
and development projects – environmental and social, particularly
occupational health and safety, and human rights – to inform thedecision-making procedure and respond to the needs of society.
Previously, we had been using an environmental assessment tool
for projects to identify environmental risks but in recent years ESGbased risk management with a broader scope and perspective isbeing called for reflecting the growing expectations and demandsof the stakeholders. Consequently, we have adopted this tool as away of assessing and identifying overarching sustainability risks.
Projects which are deemed to pose risks as a result of these checks
are followed up with further inquiries and this process is repeateduntil all concerns have been dispelled. The following table shows
the number of assessments of risks identified through theapplication of this risk assessment tool to assess new projects inthe fiscal year ended March 31, 2021.

Process of Managing Sustainability Risk in Investments and Loans

Number of Sustainability Risk Assessments in the Fiscal Year Ended March 31, 2021 by Risk Type
＜Environmental＞
Climate

Water

Air

Soil

changepollution

pollution

pollution

12

4

4

2

Noise/Vibration/Off-Chemicals

Water

Biodiversity

resource

ensive odor

6

3

4

3

Other
Waste

environmental

Total

issues12

2070＜Occupational Health and Safety＞
Machine safety

11

Fires and

Toxic substance

explosions

exposure

20

3

Marubeni Corporation
Sustainable Development Report 2022

Infection

0

22

Hazardous
operations

9

Other safety issues

Total

20

63

＜Social＞
Forced labor andhumanChild labor

Working hours

employment

trafficking

Discrimination

contracts

18

9Negative social
Land issues

Harassment atWages and

impact on local
communities

020

work andRespect forFreedom of

disciplinary

Diversity

association

9

7

measures

20

20

0

Mitigation

Indigenous
peoples andConflictculturalminerals

Privacy

Animal welfare

Responsible
marketingheritage1

18

measures andadministrative

Total

procedures(supply chain)

0

20

0

1

14

157

We also monitor the environmental and social impact of business projects initiated by our consolidated subsidiaries through the annual
Sustainability Information Survey and conduct risk assessments. In addition, we are working to further strengthen the governance of the
Marubeni Group through communication of the Marubeni Group Governance Policy and sharing its aims with group companies, as well as
strengthening their management by clarifying the roles of the Group companies and Marubeni as shareholder/owner.

ESG Risk Research/Analysis Process
Marubeni shares the Basic Supply Chain Sustainability Policy (hereinafter “Basic Policy”) with the suppliers, and thoroughly requests themto comprehend, as well as cooperate and comply with the Basic Policy. We conduct due diligence analysis and risk assessment throughquestionnaires and on-site surveys, to all suppliers, new and existing. When a non-compliance case is confirmed, we provide guidance orreconsider doing business with the supplier. By ensuring widespread and thorough understanding of the Basic Policy, we work to reducesocial and environmental risk.

1. Preparation for ESG Risk Evaluation
Review and organize all products/projects handled by the company

2. Conduct ESG Risk Primary Evaluation/Analysis
Step 1: Conduct ESG risk evaluation for all products/projects ⇒ Specify high-risk
products/projects
Step 2: Conduct risk evaluation of high-risk products/projects by ESG issue ⇒Narrow down to the final list of high-risk products/projects

3. Conduct ESG Risk Secondary Evaluation/Analysis
Step 1: Create risk profiles of the final high-risk products/projects
Step 2: Conduct general ESG country risk analysis for Marubeni’s supplier/project countries

Marubeni Corporation
Sustainable Development Report 2022

23

General Environmental/Social Risk Evaluation in Supplier/Project Country (for image only)
Supplier/project country

General ESG country
risk evaluation

Environment

Country A

Country B

Country C

Country D

Country E

Biodiversity

■high

■low

■very high

■high

■low

Water use

■moderate■moderate■moderate

■low

■high

Climate change

■low

■low

■high

■high

■low

Natural disaster/

■high

■low

■moderate

■low

■high

Working hours■moderate■high■moderate

■low

■low

Wages

■low

■low

■low

■low

■high

Forced labor

■low

■low

■high

■low

■low

Child labor

■high

■low

■moderate■low■moderate

Corporate■moderate■high■moderate■very high■moderate

pollution

SocialGovernancegovernance* The levels for each country in the chart are not representations of actual research results.

* The levels/areas are not representations of actual research results.

Marubeni Corporation
Sustainable Development Report 2022

24

Engagement with Stakeholders
The Marubeni Group conducts business with the support of various stakeholders throughout the world. Marubeni recognizes theimportance of diligently listening to the opinions of stakeholders, and working together to move forward, based on an understanding ofstakeholder interests and concerns, as well as the impact of the Company activities on society and the environment.
Stakeholders

Customers &Business
Partners

ApproachEngagement methods

Aiming to be a company that enjoys the trust and conﬁdence・Integrated reports, official website

of customers and business partners, we strive to develop and・Responding sincerely based on the Marubeni Corporate

offer products and services that are useful to society as well
as safe. Furthermore, we constantly strive to improvesatisfaction and earn trust by responding sincerely tofeedback from our customers and business partners.

Principles and Basic Supply Chain Sustainability Policy
・Website inquiry and contact page・Supply Chain Sustainability Survey

Marubeni is dedicated to meeting shareholders’ expectations. ・Integrated reports, official website and Shareholders'
We strive thus to enhance our corporate value by responding

Reports

Shareholders

to changes in the business environment and maintaining

・General Meeting of Shareholders& Investors

stable profitability. In addition, we work to boost corporate

・Briefings for retail investors

value from social and environmental perspectives, and also
disclose pertinent information in a fair and timely manner.

・IR activities
・Response to ESG investment Index survey organization

We aim to become a valued member of the local

・Social welfare funding by the Marubeni Foundation

communities where we do business, and to contribute to the・Support through scholarships and donations overseas

creation of robust local districts through improvement ofliving standards, creation of job opportunities for the local
community, including youths, and offering employment with
Local

diversity and inclusion, being aware of gender andCommunity

disabilities.
Overseas, we respect local laws, cultures and customs, andstrive to operate our businesses in a way that contributes to・Association with NGOs and NPOs
・Stakeholder dialogues
・Activities implemented through business and industry
groups *1・Receiving company tours
・Cultural contributions through the Marubeni Collection

local development. Furthermore, we are ﬁrmly opposed toantisocial forces and groups that threaten the order andsafety of society.
We respect the individual values and life goals of each and・Employee Awareness surveys

every employee. We also work hard to eliminate all forms of・Compliance Access Point (Marubeni Hotline (formerly, “Doordiscrimination and foster an atmosphere that is pleasant for
Employees

all.

of Courage”))

・Marubeni Group magazine, company intranet
・Dialogue between management and employees
・Discussions with the Marubeni Employee Union
・Trainings*1 In accordance with the view of Japan Business federation (Keidanren) that corporate political donations play an important role as part of thecontribution to society, and its high evaluations on Liberal-democratic Party of Japan in terms of policy making, Marubeni makes political
donation as follows.
Organization to donate: The People's Political Association (political fund organization of Liberal-Democratic Party of Japan)
Political donation: FY2016: 17 million yen / FY2017: 20 million yen / FY2018: 20 million yen / FY2019: 20 million yen. / FY2020: 20 million yen.
（The donation in each year is only to The People's Political Association）
We confirm that these donations are not in violation of our anti-corruption provision, "Prohibition on Bribes and Matters relating to the
Exchange of Presents and Client Entertainment", stipulated in our Compliance Manual.
Additionally, the Group's overseas branches and offices and consolidated subsidiaries do not make political contributions, as stipulated by the
Political Funds Control Act, and thus no such contributions were made in the fiscal year 2020.

Marubeni Corporation
Sustainable Development Report 2022

25

Participation in International Initiatives
GeneralClimate Change

Respect for Human Rights

Sustainable Forestry
Supply Chain

Conservation of Biodiversity and Habitats

Responsibility to Customers

GeneralParticipation in the UN Global Compact
Marubeni Group declares its support for the UN Global Compact. The compact was proposed in 1999 by then UN Secretary-General Kofi
Annan, and formally launched in the following year. Participating corporations seek to support and practice 10 principles relating to theareas of human rights, labor, environment, and anti-corruption. Marubeni Group is working to realize the ideals of the UN Global Compact
by supporting these 10 principles.

The UN Global Compact’s 10 Principles
Human Rights

Principle 1:Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2:make sure that they are not complicit in human rights
abuses.

Labor

Principle 3:Businesses should uphold the freedom of associationand the effective recognition of the right to collective bargaining;
Principle 4:the elimination of all forms of forced and compulsory;
Principle 5:the effective abolition of child labor; andPrinciple 6:the elimination of discrimination in respect of
employment and occupation.

Click here to view the UN
Global Compact web site.

Environment

Principle 7:Businesses should support a precautionary approach toenvironmental challenges;
Principle 8:undertake initiatives to promote greater environmental
responsibility; andPrinciple 9:encourage the development and diffusion ofenvironmentally friendly technologies.

Anti-Corruption

Principle 10:Businesses should work against corruption in all its
forms, including extortion and bribery.

Marubeni Corporation
Sustainable Development Report 2022

26

Marubeni Corporation engages in activities as a Corporate Member of the Global Compact Network Japan (GCNJ), the local network of
United Nations Global Compact in Japan.
Working Groups, which are organized by theme, are held mainly by the network members of Global Compact Network Japan (GCNJ).
Marubeni takes part in the following Working Groups.

Committee of Supply Chain
Committee of Environmental Management
Committee of Study for Disseminating Global Compact
Committee of Human Rights Due Diligence
In the FYE 3/2021

Committee of Human Rights Education
Committee of Disaster Risk Reduction
Committee of SDGs
Committee of ESG
Committee of Corporate Reporting

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 respect for human rights within the Company and throughout our supply chain.

Sustainable Development Goals (SDGs)
SDGs are shared goals of the international community, with the aim of achieving sustainable development socially, economically andenvironmentally.
In 2015 the UN adopted an agenda of 17 goals, with 169 targets to be achieved by 2030. SDGs are goals shared by governments, theprivate sector and civil society for achieving sustainability and leaving the world a better place for future generations. We have identified
four categories of Environmental and Social Materiality in which the Marubeni Group can make a valuable contribution.

Click here to view the SDG website

Marubeni Corporation
Sustainable Development Report 2022

27

World Economic Forum
Marubeni participates in the project team of World Economic Forum to discuss the ESG issues. And we support the activities of theinternational environmental protection group, World Wide Fund for Nature Japan.

Click here to view the WEF website

Climate Change
TCFD
Recognizing the importance of climate-related financial disclosures, the Marubeni Group affirmed the recommendations of the TCFD*2 inFebruary 2019.
We are endeavoring to evaluate risks and opportunities engendered by climate change and to enhance related disclosure.
*2 The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability Board (FSB).

Click here to view Disclosure in Line with the Recommendations of the TCFD

CDP
CDP*3 (an international environmental non-profit organization) analyzes and assesses the collected information, and makes it available toinvestors. Marubeni has participated in the initiative of CDP since 2007. In 2021 Marubeni received A- grades in the areas of climatechange and forest protection by CDP. And the Company was selected as an A-list company in their water security program.
*3 CDP (an international environmental non-profit organization formerly known as the Carbon Disclosure Project)Founded in the United Kingdom in 2000, CDP has worked with approximately 590 investors representing over US$110 trillion in assets to pioneer
environmental disclosure, greenhouse gas emissions reduction, water conservation, and forest protection for companies through capital
markets and corporate procurement activities. In 2021, some 14,000 organizations worldwide, including some 13,000 companies representing
more than 64% of global market capitalization and 1,100 municipalities, disclosed environmental information through CDP. CDP has the world's
largest fully TCFD-compliant environmental database, and CDP scores are widely used to drive investment and procurement decisions to achievea zero-carbon, sustainable and resilient economy. CDP is a partner in the Investor Agenda and a founding member of the Net Zero AssetManagers Initiative.

This year's CDP A-List and other published scores can be found at here

A Working-group Member of Study Group on TCFD
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 the year ended March 31, 2019, we became a working-group member of the METI Study
Group on Implementing TCFD Recommendations for Mobilizing Green Finance through Proactive Corporate Disclosure (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.

Endorsement of “GX League Basic Concept” to Address Climate Change
The Company has announced its support for the basic concept of the “Green Transformation League” (tentative name, hereafter “GX
League”), which the Ministry of Economy, Trade and Industry (METI) plans to establish. It has also announced its participation in asecretariat for the preparation towards establishing the GX League.
The GX League aims to transform the economic and social system by engaging a group of companies working to decarbonize theiroperations, as well as governmental, academic, and financial institutions, discuss the creation of sustainable markets and rule-making, as
well as emissions trading. By taking an active role in the establishment of this league, the Company will contribute to efforts to address
climate change.

Marubeni Corporation
Sustainable Development Report 2022

28

Plan for achieving the Low-Carbon Society
As a member of the Japan Foreign Trade Council (JFTC), Marubeni agrees with the Low-Carbon Society Plan (for achieving the post-Kyoto
Protocol Targets) proposed by Japan Business Foundation (“Keidanren”), and takes part in the working groups and public meetings on
climate change held by Keidanren and JFTC.
Marubeni takes climate change countermeasures in accordance with the policies of Keidanren’s Commitment to a Low-Carbon Society. We
have set the goal of reducing the energy use (electricity and gas) at the Tokyo Head Office by 10% or more in the fiscal year ended March
31, 2026 relative to the fiscal year ended March 31, 2016, by introducing energy-saving facilities etc.

The Global Environment Committee
Marubeni also takes part in discussions related to environmental initiatives of trading companies, as a member of the Global Environment
Committee of the Japan Foreign Trade Council (JFTC).
At the Committee, we make plans for the Voluntary Action on the Environment (Commitment to a Low Carbon Society and a RecyclingBased Society) for the trading company industry, grasp energy consumption, promote the 3R (reduce, reuse, recycle) activity, andincorporate new energy through our business activities.
Click here to view “Energy Conservation, Natural Resource Conservation, and Waste Reduction Activities”

Japan Climate Initiative
The Marubeni subsidiary Mibugawa Power Company takes part in the Japan Climate Initiativeand promotes renewable energy projects

with the aim of creating a society that leaves a minimal carbon footprint.

Eco Action 21
Since 2005, Mibugawa Power Company has been participating in “Eco Action 21,” a program of the Ministry of the Environment. In
registering for certification under this system, the company continues to “establish and operate effective and efficient methods forenvironmental initiatives, set environmental goals, take action, summarize, evaluate, and report results.” In 2015, the Eco Action 21
Central Secretariat presented the company with a letter of appreciation and a commemorative gift in recognition of these efforts. The
company will continue to take positive action to protect the global environment by reducing waste, maintaining water quality, conserving
energy and resources, and conducting local environmental activities.
Please see the Mibugawa Power Company's website for details of initiatives other than those mentioned above. (Japanese Only)

Japan Sustainable Fashion Alliance (JSFA)
We have a full membership of the Japan Sustainable Fashion Alliance (hereinafter “JSFA”), a platform for corporate collaboration that aims
to jointly find solutions to sustainable fashion issues. With the goals of achieving “zero fashion loss through proper quantity of production
and purchasing, recycling” and “carbon neutral of the fashion and textile industries in 2050,” we collaborate to identify solutions to thecommon issues that arise in the fashion and textile industries, and promote the transition to a sustainable fashion industry. As a company
that identifies “Climate Change” as one of our Environmental & Social Materialities, we participate within a leading role in the JSFA as a full
member and will contribute to the transition to a sustainable fashion industry through the activities of the alliance.

Marubeni Corporation
Sustainable Development Report 2022

29

Sustainable Forestry
Forest Management and Forestry Certification at Marubeni Group
The Marubeni Group currently owns forest plantation businesses in the two countries of Indonesia and Australia. Using a controlled cycleof planting, cultivation and management and harvesting focused on eucalyptus hardwoods that mature quickly in 6-10 years, we provide astable and sustainable supply of wood resources for pulp and paper production. Based on the principle of No Deforestation, oursustainable forestry management practices prioritize natural and social capital by not harvesting natural forests. We also undertakeproactive programs jointly with local communities.

Group company
PT. Musi Hutan Persada (MHP)

Location
Indonesia

Australia

WA Plantation Resources Pty.,
Ltd. (WAPRES)

Forestry certification

Nature of business
Forest plantation

Indonesian Forestry Certification Cooperation*4

business

・Sustainable Forest Management certification

Forest plantation/

FSC®certification*6

wood chips

・FM (Forest Management) certification

production

・CoC (Chain of Custody, processing/distribution processes)

businesscertification

Responsible Wood*7
・Sustainable Forest Management certification*4 Indonesian Forestry Certification Cooperation is a forest certification system in Indonesia endorsed and mutually recognized under the PEFC*5.
*5 The Programme for the Endorsement of Forest Certification (PEFC) is an international system for forest certification that is based on a framework
for mutual recognition of national forestry certification schemes.
*6 The Forest Stewardship Council® (FSC®) is a non-profit organization that operates an international forest certification scheme with the aim ofpromoting the worldwide adoption of responsible forest management practices. (FSC® C016260)*7 Responsible Wood is an Australian forest certification scheme endorsed and mutually recognized under the PEFC*5.

Conservation of Biodiversity and Habitats
Participation in the TNFD Forum
TNFD Forum is an organization which shares the vison and mission of Taskforce on Nature-related Financial Disclosures (TNFD)*8, aninternational organization that builds a risk management and disclosure framework related to nature capital and biodiversity. Marubeni
participated in the TNFD Forum in March 2022.
By participating in the TNFD Forum, Marubeni will continue to contribute to the conservation of biodiversity, which is an urgent issue inthe world along with climate change, through supporting the development of TNFD’s framework.
*8 TNFD is an organization to build a risk management and disclosure framework related to nature capital and biodiversity, inspired by the 2019
World Economic Forum (Davos Conference). The mission of TNFD is to develop a disclosure framework for organizations to report, which aims to
support a shift in global financial flows toward nature-positive outcomes.

Click here to view the TNFD Website

Marubeni Corporation
Sustainable Development Report 2022

30

Support of the Declaration of Biodiversity by Keidanren
In January 2020, the Company announced its agreement with and support of the Revision to “Declaration of Biodiversity by Keidanren andAction Policy” of October 2018 put out by the Keidanren Committee on Nature Conservation.

Click here to view the “Declaration of Biodiversity by Keidanren and Action Policy” (Revised Edition)

Marine Eco-Label Japan (MEL)
Marubeni is a full member of Marine Eco-Label Japan (MEL), and promotes initiatives of fisheries, aquaculture, and chain of custody thatconsiders environment, biodiversity, and sustainable use of fishery resources.
Marubeni will continue to contribute to sustainable fishery that is environmentally and ecologically friendly within our business as well as
in our supply chain.
Click here to view the "Marine Eco-Label Japan Council (MEL)" web site

Sustainable Seafood Week 2021
With increasing concern that seafood is being depleted from seas around the world, efforts are being made to shift toward sustainable
use of marine resources. The Marine Stewardship Council (MSC) Japan and, Aquaculture Stewardship Council (ASC) Japan held theSustainable Seafood Week (SSW) 2021 to further spread the awareness of sustainable seafood across Japan in October. The annual
campaign started in 2014 and this time was the eighth year.
Sustainable Seafood refers to food made from fish caught by methods that prevent depletion of marine resources or farmed responsibly,and do not have adverse effects on the biological system, to preserve the valuable marine resources into the future. Marubeni has beenpromoting the handling of MSC certified products, which are guaranteed as natural marine products caught with consideration of marine
resources and the environment, and ASC certified seafood, which are guaranteed as seafood products through environmentally andsocially responsible aquaculture. Marubeni, through our Group company, supports the activities of the Sustainable Seafood Week that aim
to spread the practice of sustainable seafood.
Click here for more information on Sustainable Seafood (Japanese only)

Respect for Human Rights
Forum on Business and Human Rights
Marubeni participates in the annual UN Forum on Business and Human Rights, and strive to share our experience and grasp the latest
trends for promoting respect for human rights among corporations, based on the UNʼs Guiding Principles on Business and Human Rights.

Industrial Federation for Human Rights
Marubeni participates in the Industrial Federation for Human Rights, Tokyo and continue to raise awareness of human rights of the
Directors, the Executive Officers and the employees by sharing issues and holding dialogues with its member companies.

Marubeni Corporation
Sustainable Development Report 2022

31

Supply Chain
Sedex
Cia. Iguaçu de Café Solúvel and Marubeni Foods, Marubeni’s subsidiary companies, take part in the platform of Sedex*9 for coffee andother beverage raw materials, and collaborates with suppliers on respect for human rights, occupational health and safety, reduction ofenvironmental impact, and quality assurance in the supply chain.
*9 Sedex: A global ethical trading service provider dedicated to improving working conditions in global supply chains.

EcoVadisMarubeni America Corporation, Marubeni International (Europe) GmbH, a subsidiary company of Marubeni Europe plc, and operatingcompanies (Marubeni Intex Co., Ltd. and Marubeni Techno Rubber Corporation) are subscribed to EcoVadis*10.
Marubeni will build sustainable supply chains, strengthen risk management, and expand ethical business practices.
*10 EcoVadis: A global cloud-based SaaS platform that provides comprehensive corporate social responsibility (CSR) assessment services.

RSPO
Marubeni Corporation joined RSPO in 2015 to procure certified palm oil sustainably.

Responsibility to Customers
Principles for Responsible Investment (PRI) Signed by Asset Management Company
Japan REIT Advisors Co., Ltd. (JRA), a Marubeni Group company in the real estate asset management business, has been conducting theinvestment management for United Urban Investment Corporation (UUR). In November 2018, JRA signed the Principles for Responsible
Investment (PRI), and became a PRI signatory.
Click here for details on PRI
News Release: Japan REIT Advisors Co., Ltd. Recognized as a Principles for Responsible Investment (PRI) Signatory

Marubeni Corporation
Sustainable Development Report 2022

32

As a comprehensive J-REIT, UUR aims to reduce various risks and secure medium- to long-term stable earnings by making real estate
investments spanning diverse uses and locations that are not limited by purpose or area. UUR is also working to improve sustainability
through environmental, social and governance (ESG) considerations for sound management that can coexist with society and the naturalenvironment. When considering real estate investments, JRA carefully examines the impact on the environment (asbestos, soil
contamination, etc.), tenants (antisocial forces, work environment, etc.), and neighborhood (relationship with the community, traffic
volume as a result of the relevant properties, etc.), in addition to the profitability. JRA has earned third-party environmental performance
evaluations such as CASBEE (Comprehensive Assessment System for Built Environment Efficiency) through analyses not just at the time ofacquisition, but also for efforts to improve the environmental performance after acquisition as well. As a result of these initiatives, as of2020, JRA has earned the Green Star (the highest award) for six consecutive years in the survey for the Global Real Estate Sustainability
Benchmark (GRESB), the annual benchmark that assesses sustainability practices in the real estate sector.
UUR and JRA will continue to make further efforts to achieve asset management that considers ESG in the future.
Click here to view the “United Urban Investment Corporation” web site.
Click here to view the initiatives for ESG.
Click here to view the “Japan REIT Advisors Co., Ltd.” web site.

Japan Food Additives Association
The Japan Food Additives Association (JAFA) is comprised of companies and organizations that are involved in the production, import, saleand use of food additives in Japan. The association was established in October 1982 as a nation-wide consolidated body with the additionof new members.
JAFA works under the guidance of the Ministry of Health, Labour and Welfare and other related government agencies with the objectivesof providing members with accurate knowledge pertaining to the production, sale, and use of food additives, and promoting consumer
understanding of safety and utility. In addition, JAFA seeks to contribute to the sound development of food-related industries, and tobetter 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 such as labeling for food additives and interpretations of the relevant laws.
Japan Food Additives Association

All Japan Coffee Fair Trade Conference
The All Japan Coffee Fair Trade Conference formulated the Fair Competition Code for Labeling of Regular Coffee and Instant Coffee
Products, designed to aid consumers in the purchase of regular 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, with full enforcement starting from May 28, 1993.
On November 29, 1991, the conference was inaugurated as a discretionary body with membership consisting of coffee-related business
operators who agree with the objectives of the conference. It is dedicated to ensuring the fair labeling of coffee products.
The Marubeni Group receives advice regarding coffee labeling and related matters from the All Japan Coffee Fair Trade Conference.
All Japan Coffee Fair Trade Conference (Japanese only)

Marubeni Corporation
Sustainable Development Report 2022

33

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

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 toprovide technical support so that the soft drink industry can continue to develop in harmony with the public interest.
Through the Society of Soft Drink Technologists, Japan, the Marubeni Group receives advice on matters such as beverage labeling andquality management.
Society of Soft Drink Technologists, Japan (Japanese only)

Marubeni Corporation
Sustainable Development Report 2022

34

GLOBALCROSSVALUE
PLATFORM

Materiality
for Marubeni
Group

SUSTAINABLE
DEVELOPMENTREPORT

The Idea of Materiality for
Marubeni Group

36

Fundamental Materiality

37

Environmental & Social Materiality

38

Identification andReview Process of Materiality

40

2022
丸紅株式会社

サステナブル・デベロップメント・レポート 2022
Marubeni Corporation
Sustainable Development Report 2022

35

Materiality for Marubeni GroupThe Idea of Materiality for Marubeni Group

Fundamental Materiality

Identification and Review Process of Materiality

The Idea of Materiality for Marubeni Group

Marubeni Corporation
Sustainable Development Report 2022

36

Environmental & Social Materiality

Fundamental Materiality
The Marubeni Group has identified three categories of Fundamental Materiality for living by our Management Philosophy, building abetter tomorrow, and accomplishing the goal of ensuring sustainable growth for the company.
1. Human Capital with High Social Value
2. Robust Management Foundation
3. Governance for Coexistence with Society
1. Human Capital with High Social Value
We regard human resources 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 with High Social Value, and thereby bring about innovation and provide solutions.
To us, Human Capital with High Social Value means:
・Individuals who observe laws and act in conformity with accepted international customs, and who also maintain high ethical standards for thegood of society.
・Innovative individuals with the foresight, insight and creativity needed to anticipate social change.
・Individuals with sound judgment and the ability to make correct decisions and act quickly.
・Individuals with the communication skills to truly address the demands 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.

2. Robust Management Foundation
We have identified Robust Management Foundation as the second category of Fundamental Materiality, as we believe it is necessary bothfor maximizing the potential of our human capital and for maximizing corporate value.
We must build a foundation that facilitates the activities of our human capital and establish a truly Robust Management Foundation. If wecannot accomplish this, our human capital will not be able to continue innovating and providing solutions. Enabling our human resources
to use our management foundation to the fullest will ultimately lead to maximizing corporate value.
To us, Robust Management Foundation means:・A fundamentally sound management foundation with a strong brand presence, reputation, sales foundation and network, and financial footing.
・A corporate climate and culture that is capable of producing abundant Human Capital with High Social Value, and can enable that human capital toengage in meaningful work.
・An environment that places importance on the ability to create diverse values and generate quality solutions within a diverse and inclusive
organization.

3. Governance for Coexistence with Society
We will endeavor to increase corporate value based on a Robust Management Foundation in which Human Capital with High Social Valuedevelops innovative ideas and continues providing solutions.
Within that framework, and given social expectations and demands, we believe that strengthening our corporate governance system for
improved coexistence with society is important to all of our stakeholders. We will deepen our engagement with diverse stakeholders,enhance the effectiveness of the Board of Directors’ oversight function, and bring greater transparency to our management in order tobuild a governance framework that allows for improved coexistence with society and works toward achieving sustainability.

Marubeni Corporation
Sustainable Development Report 2022

37

Environmental & Social Materiality
The Sustainable Development Goals (SDGs) adopted by the United Nations in September 2015 are goals for achieving sustainability andleaving the world a better place for future generations shared by governments, the private sector and civil society. In recognition of this,the Marubeni Group has identified the following categories of Environmental and Social Materiality in which it can truly make a valuable
contribution.
1. Climate Change
2. Sustainable Forestry
3. Human Rights & Co-development with Communities
4. Sustainable & Resilient Value Chains
In addition to the 17 goals and 169 targets of the SDGs, and taking into consideration stakeholders’ expectations and interests as well as
the environmental and social impact of our business, our categories of Environmental and Social Materiality are based on the criteria
described below. Building on initiatives set out through our Fundamental Materiality, we will contribute to achieving the SDGs and work
toward building a better tomorrow.
1. Climate Change
Climate change, which is responsible for phenomena such as global warming, changes in the natural environment and more 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 itpresents business opportunities.
We see contribution to climate change mitigation and adaptation as a category of Environmental and Social Materiality. We contribute toclimate change countermeasures mainly through the following policies:
・Coal-fired Power Generation and Renewable Energy Generation Businesses
The Marubeni Group has 12GW net power generation capacity (as of March 31, 2019) and is a leading independent electric power
operator. We announced our “Policy on Coal-Fired Power Generation and Renewable Energy Generation Businesses” on September 18,
2018 as part of our proactive climate change countermeasures.
・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 climate change countermeasures, includes the following.
・Sales of products certified as contributing to sustainable forestry, fisheries, etc.
・Sales from businesses (real estate, etc.) contributing to lessening environmental impact
・Sales from businesses dealing in power generation from renewable 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 to efficient 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 the recommendations of the TCFD*1, we will endeavor to better understand the financial impact of both the risks
and opportunities brought about by climate change, and also engage in improved climate-related financial disclosure.
*1 TCFD (Task Force on Climate-related Financial Disclosures): Established by the Financial Stability Board (FSB).

Climate Change
Disclosure in Line with the Recommendations of the TCFD

Marubeni Corporation
Sustainable Development Report 2022

38

2. Sustainable Forestry
Forests are a precious resource and enrich life on Earth in many ways. The Marubeni Group currently holds some 130,000 hectares of tree
plantations across the world (total gross project area is about 300,000 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) toconserve and sustainably use valuable forest resources. By operating our businesses in accordance with these policies, we will promotesustainable forest management and contribute to forest conservation.
Sustainable Forestry
3. Human Rights & Co-development with Communities
Due to the globalization of economic activity, serious abuses of human 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 businessactivities, and there are growing expectations that businesses should play a role in remedying human rights abuses.
The Marubeni Group does business in 133 locations*2 in 68 countries and regions and employs 40,000 people*3 of many different
nationalities and ethnicities. We are active in a wide range of businesses and conduct global, multi-faceted activities.
To create a better tomorrow, we take a sincere approach to dealing with human rights issues facing the international community. As partof our initiatives, we have included the three basic principles of the United Nations’ Guiding Principles on Business and Human Rights: 1)
respect for human rights, 2) due diligence on human rights, and 3) redress in our Basic Policy on Human Rights.
*2 As of April 1, 2021
*3 As of March 31, 2021

Respect for Human Rights
4. Sustainable & Resilient Value Chains
The Marubeni Group deals with thousands of suppliers*4 in conducting 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 have identified Sustainable and Resilient Value
Chains and working together with our business partners as an essential category of Environmental 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 to suppliers, conducted surveys, and dispatched personnel to suppliers’ manufacturing or production sites to conduct
direct on-site inspections. Since we believe that value chain management is important, we will continue taking initiatives toward bothsuppliers and buyers of our products to resolve issues in this 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.
*4 Approximately 3,000 firms have direct dealings with Marubeni (as of March 31, 2021)

Supply Chain

Marubeni Corporation
Sustainable Development Report 2022

39

Identification and Review Process of Materiality
We believe that the material issues for sustainability must be constantly reviewed as the society and environment surrounding thecompany continue to change.
Specifically, we perform regular reviews through dialogs with stakeholders and confirmations of the expectations from society, as well as
constantly analyzing the impact on the company.

・Extract existing/potential environmental and social issues
・Dialogue and engagement with stakeholders and external advisers/confirm expectations from society
・Identify material issues for sustainability (materiality) for the Marubeni Group, based on the following criteria:— Importance to stakeholders— Impact and scope of our business activities on the environment and society— Impact on our earnings
・Reflect in operational goals/targets, implement and review periodically

The Sustainability Management Committee under the supervision of the President reports to the Board of Directors at least once a year
on the important matters that it deliberates. These periodic reviews form the basis for the supervision of sustainability-related matters bydirectors.

Identification and Review Process

Marubeni Corporation
Sustainable Development Report 2022

40