Long-Term Strategy on Climate Change

In accordance with the spirit grounded in “Fairness, Innovation and Harmony,” the Marubeni Group is proudly committed to social and economic development and safeguarding the global environment by conducting fair and upright corporate activities as our Management Philosophy. The Marubeni Group’s long-term strategy is to put our Management Philosophy into practice and to create value and grow by anticipating the challenges of customers and society and providing solutions.

The challenges faced by customers and society are diverse and constantly evolving. To stay ahead of these changes, the Marubeni Group continues to evolve, using four key aspects of diversity—1. human capital, 2. regions, 3. sectors, and 4. business models—as an important differentiator. This is major strength and source of value creation for the Marubeni Group. To further enhance this strength, we have identified the “Fundamental Materiality (1. Human Capital That Creates New Value, 2. Robust Management Foundation, 3. Governance for Coexistence with Society)” and are committed to its continuous strengthening.

Climate change is a key factor that impacts the growth of the Marubeni Group and, as such, has been identified as one of the issues under “Environmental & Social Materiality.” To anticipate the societal issues posed by climate change and provide solutions, we have formulated “The Marubeni Long-Term Vision on Climate Change.” In alignment with the Paris Agreement, the Marubeni Group aims to reduce GHG emissions and views the transition to a low-carbon and decarbonized society, both within and outside the Group, as a growth opportunity.

Marubeni categorizes time horizons for its climate change initiatives into short-term (up to 3 years), medium-term (3 to 10 years), and long-term (10 to 30 years). Regarding the financial implications in the long term, the high degree of uncertainty in measurement renders quantitative information less useful. Therefore, qualitative information is provided in the sections “Long-Term Strategy on Climate Change” and “Marubeni Group’s Initiatives for a Low-Carbon and Decarbonized Society.”

For details on “Fundamental Materiality” and “Environmental & Social Materiality,” please refer to the Materiality for the Marubeni Group.

The following, with some exceptions, is based on the information available as of December 2024. Updates for the fiscal year ended March 31, 2025, are scheduled for September 2025 or later.

Marubeni Group’s Initiatives Leading the Transition to a Low-Carbon and Decarbonized Society

Leveraging the strengths of the Marubeni Group, we present three examples of how the transition to a low-carbon and decarbonized society is being seized as an opportunity for growth.

Contribute to Low-Carbon/Decarbonization Through Our Businesses

We view GHG emissions across the value chain as opportunities to contribute to their reduction and have calculated all relevant Scope 3 categories. A distinctive characteristic of the Marubeni Group is that its Scope 3 emissions (89 million t-CO₂e) are more than 70 times greater than its Scope 1 and Scope 2 emissions (1.2 million t-CO₂e).

Scope 1, Scope 2, and the Main Categories of Scope 3 for Our Group (for details, please refer to the “Data” section)

The total of each category and the overall total may not match due to rounding.

Category 1: Includes fertilizers, grains, chemicals, and other products.

Category 11: Includes fossil fuels and other products.

Category 15: Includes power generation projects and other projects.

Updates for the fiscal year ended March 31, 2025, scheduled for September 2025 or later.

The entities responsible for Scope 3 emissions span a wide variety of sectors. Providing low-carbon and decarbonization solutions to these entities not only significantly contributes to climate change mitigation but also represents a transition opportunity to a low-carbon and decarbonized society, and a driver of growth for the Marubeni Group.
In the energy supply sector, solutions include the development of energy systems that serve as the foundation for a decarbonized society.
On the energy demand sector, efforts to reduce and mitigate GHG emissions over a broad range of industries are crucial. In the land use sector, initiatives such as sustainable agri-inputs businesses and forest management are also key solutions being promoted.
Furthermore, to quantitatively evaluate the effectiveness of these solutions, we calculate both avoided emissions and volume of carbon stocks. These also serve as indicators of how the Marubeni Group is capitalizing on business opportunities.

Specific Examples of Solutions

Avoided Emissions

Avoided emissions refer to a metric that quantifies how the company’s products and services contribute to the overall emission reduction of society.
In the calculation, actual data and publicly available information are used whenever possible. However, when such data is difficult to obtain, reasonable assumptions or scenarios are applied.
As a reference, we primarily use the “Guidance on Avoided Emissions” from the World Business Council for Sustainable Development (WBCSD). However, as international discussions on calculation rules continue, we will regularly review and update our calculation and disclosure methods in accordance with these developments.

Volume of Carbon Stocks

Financial Implications [Current] [Short Term]

Based on the financial results for the fiscal year ended March 31, 2024, an assessment was conducted on the financial implications (impact on financial position, financial performance, and cash flows) of climate-related risks (cash flows, its access to finance or cost of capital that could reasonably be expected to affect the Marubeni Group) in the current period (1. total assets: ¥8,923.6 billion, 2. net profit: 471.4 billion, 3. core operating cash flow^*1: ¥ 548.0 billion) and the short term (up to 3 years). This assessment, based on climate-related “transition risks” and “physical risks,”^*2 concluded that the direct impact on the Marubeni Group within the current and short-term time horizon is less than 1% in each of the categories 1.–3., indicating that the impact is limited.

1  Core operating cash flow: Operating cash flow excluding net increase/decrease in working capital and others

2  Climate-related "transition risks" related to the risks arise from efforts to transition to a lower-carbon economy, including policy, legal, technological, market, and reputational risks. "Physical risks" refer to the risks resulting from climate change that can be event-driven (acute physical risk) or from longer-term shifts in climatic patterns (chronic physical risk).
In assessing “transition risks,” we conducted calculations based on the trends in policies and laws related to carbon pricing in major countries where it has already been implemented. The calculations considered businesses that fall under carbon pricing systems currently in place or expected to be introduced within the next three years (short term) in the countries where the business operates, and where the risk of changes to these systems has not been hedged. As a result, the current financial implications are less than 1%, and even if the carbon pricing rate used for the calculation doubles within the short-term time horizon, the impact is still expected to be less than 1%.
As for the financial implications of “physical risks,” the impact in the current and short-term periods is limited. However, the Marubeni Group has implemented various risk mitigation measures in response to these risks. These measures include assessing potential impacts on business base facilities, logistics, and supply chains at each business site, developing Business Continuity Plans (BCP), disaster prevention strategies, subscribing to various insurance policies, and conducting disaster awareness activities for relevant stakeholders (including employees and local communities), such as initiatives for wildfire prevention. For more details, please refer to the “Policies and initiatives” section in the “Scenario Analysis.”

Greenhouse Gas Emissions

＜Click here[721KB] to view greenhouse gas emissions metrics and targets＞

〈Scope 1 & 2 Greenhouse Gas Emissions〉

• CO₂ emission factors for fuels and steam
  CO₂ emission factors stipulated by the Act on Promotion of Global Warming Countermeasures (version before April 2024 enforcement) are used.
• CO₂ emission factors for electricity
  Emission factors (adjusted emission factors) for each electric power provider released by the Ministry of the Environment are used for Marubeni Corporation.
  Alternative emission factor stipulated by the Act on Promotion of Global Warming Countermeasures was replaced by Emission factors (adjusted emission factors) for each electric power provider for the domestic consolidated subsidiaries from FYE 3/2021. The impact on emissions due to the change in emission factors is a decrease of 7,627 t-CO₂e.
  Country-specific emission factors (CO₂ emissions per kWh from electricity generation) published by the International Energy Agency are used for the overseas consolidated subsidiaries. A zero-emission factor is applied to purchased electricity derived from renewable energy in calculating Scope 2 greenhouse gas emissions since FYE 3/2021.
• Emission factors of non-energy-related GHG
  Emission factors stipulated by the Act on Promotion of Global Warming Countermeasures (version before April 2024 enforcement) are used.
• Non-energy-related GHG emissions are not included in GHG emissions before FYE 3/2020.
  From FYE 3/2021, non-energy-related GHG emissions are included in GHG emissions, however, Scope 1 emissions excluding non-energy-related GHG emissions and grand total emissions excluding non-energy-related GHG emissions are also presented separately.
• Since FYE 3/2022 Marubeni Corporation’s principal offices have achieved zero Scope 2 by purchasing 100% renewable energy for electricity at domestic offices of Marubeni Corporation and procuring J-credits derived from renewable energy heat for steam and cold water purchased as energy at the Tokyo Head Office.

〈Scope 1 Greenhouse Gas Emissions (Components of non-energy-related GHG emissions^*1)〉

• Non-energy-related GHG emissions cover carbon dioxide from the use of dry ice, carbon dioxide, methane, and dinitrogen monoxide from waste incineration or use in the manufacture of products and the use of waste fuels, methane and dinitrogen monoxide from the use of fuel in facilities and machinery used for fuel combustion, livestock waste management, methane from livestock feeding (fermentation in the digestive tract of livestock), hydrofluorocarbons in the recovery and encapsulation of HFCs in the maintenance of commercial refrigeration and air-conditioning equipment, and sulfur hexafluoride in the use of electrical machinery and equipment such as transformers. There are no emissions of perfluorocarbons and nitrogen trifluoride. For sulfur hexafluoride, there are no companies obliged to report based on the Act on Promotion of Global Warming Countermeasures.

The total of each breakdown and the overall total may not match due to rounding.

〈Scope 3 Greenhouse Gas Emissions〉

Marubeni is voluntarily disclosing a part of the data by categorizing its supply chain activities and calculating the GHG emissions in each category in line with the GHG Protocol guidelines.

The breakdowns of Category 15 and the total value for Category 15 may not match due to rounding.

The total of each category and the overall total may not match due to rounding (the data was updated on March 19, 2025, with additional categories added, excluding Scope 3 Category 15).

The calculation categories: Until FYE 3/2023, the calculation included only Categories 2 to 9 and 15. Starting from FYE 3/2024, Categories 1 and 10 to 13 have been included in the calculation.

Applicable to Categories 1 to 14:

• The boundary of calculation: The calculation includes both Marubeni Corporation and consolidated subsidiaries. For Categories 3 and 4, the boundary has been expanded starting from FYE 3/2024.
• Double counting between companies included in the calculation is excluded when clearly identified.
• In trading, transactions with purchases from or sales to collectors, import/export agents, wholesalers, or intermediaries (i.e., transactions with traders) are excluded when clearly identified.
• Emissions factors: Primarily using the Inventory Database for Environmental Analysis (IDEA) from the National Institute of Advanced Industrial Science and Technology (AIST). Additionally, values from the IEA’s country-specific CO₂ emission factors (CO₂ emissions per kWh from electricity generation), the Ministry of the Environment's emission intensity database, and LCA literature for various industries are also used.
• References: Corporate Value Chain (Scope 3) Accounting and Reporting Standard (GHG Protocol), Technical Guidance for Calculating Scope 3 Emissions (GHG Protocol), Estimating Petroleum Industry Value Chain (Scope 3) Greenhouse Gas Emissions (International Petroleum Industry Environmental Conservation Association, IPIECA), The Product Carbon Footprint Guideline for the Chemical Industry (Together for Sustainability), etc.

Category 1: Includes fertilizers, grains, chemicals, and other products.
Category 4: Until FYE 3/2023, the calculation covered only domestic contracted transportation as a consignor for Marubeni Corporation within Japan. Starting from FYE 3/2024, the calculation includes international maritime transportation, both departing from and arriving in Japan, for Marubeni Corporation as well as its consolidated subsidiaries basis within Japan. Category 10: Sales of intermediate products and raw materials are excluded when the processing stages up to the final product cannot be traced. Category 11: Includes fossil fuels and other products.

Category 15:

• Category 15 covers Scope 1 and Scope 2 emissions for associate investees of the Marubeni Group accounted for using the equity method, (hereinafter, “associate investees”), which are not included in the Scope 1 and Scope 2 emissions of Marubeni Corporation and its consolidated subsidiaries. The emissions are calculated by multiplying by our equity share. Emissions from businesses designated to be liquidated or sold, renewable energy businesses, and businesses which consist of office operations only are not included.
• Generally, emissions are calculated using the same methods as Scope 1 and Scope 2 for Marubeni Corporation and its consolidated subsidiaries. However, in some cases, emissions reported by associate investees and estimated emissions are included.
• For overseas power generation projects, emission factors from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories are used, including CO₂, CH₄, and N₂O. All emissions from coal are calculated assuming weight on an air-dried basis.

Energy and Electricity Consumption

＜Click here to view Tokyo Head Office’s targets to be achieved by FYE 3/2026＞

• 3.6 GJ/MWh is used for heat value per unit for electricity.
• For fuels, the heat values stipulated by the Act on Promotion of Global Warming Countermeasures (version before April 2024 enforcement) are used.
• Biomass energy is not included.
• From FYE 3/2022, Marubeni Corporation’s principal offices have been purchasing 100% renewable energy for electricity at domestic offices of Marubeni Corporation and procuring J-credits derived from renewable energy heat for steam and cold water purchased as energy at the Tokyo Head Office.

Environmental Impact of Transport

• This table shows the impacts associated with the domestic outsourced shipment (upstream transportation) of goods consigned by Marubeni Corporation.

Costs Associated with Climate Change

Endorsement of ISSB’s Statement “Championing the ISSB’s climate global baseline”

CDP

Joining the GX League to Address Climate Change

Marubeni has joined the Green Transformation League (GX League) established by the Ministry of Economy, Trade and Industry (METI).
The GX League includes companies working towards decarbonization as well as government bodies, academia, and the financial sector, and aims to bring about changes in economic and social systems. As such it will focus on emissions trading (GX-ETS) and the creation of sustainable markets. Marubeni will contribute to decarbonization and the reduction of Japan’s greenhouse gas emissions by participating in the GX League’s discussions on the formation of market rules (regarding voluntary credits and carbon offsets, etc.), utilizing our global expertise and know-how spanning a broad range of sectors, which is one of the strengths of a general trading company.

Plan for Achieving a Low-Carbon Society

As a member of the Japan Foreign Trade Council (JFTC), Marubeni agrees with the Low-Carbon Society Plan proposed by Japan Business Federation (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 FYE 3/2026 relative to FYE 3/2016, by introducing energy-saving facilities etc.

Sustainability Promotion Committee

Marubeni takes part in discussions related to environmental initiatives of trading companies, as a member of the Sustainability Promotion Committee and its affiliated Environmental Working Group of the Japan Foreign Trade Council (JFTC). At the Committee, we make plans for the Voluntary Action on the Environment (Commitment to a Decarbonized Society and a Recycling-Based Society) for the trading company industry and grasp the progress of the plan. In recent years, the Committee has also been disseminating its views to relevant organizations in response to climate change and other sustainability information disclosure.

Committee on Environment

We participate in the Committee on Environment, an environment- and energy-related committee of the Japan Business Federation (Keidanren) which promotes the mainstreaming of climate change countermeasures, circular economy, biodiversity, and the improvement of environmental regulations and systems, and works towards the realization of environmental policies that are compatible with the economy.

Japan Climate Initiative

The Marubeni subsidiary Mibugawa Power Company takes part in the Japan Climate Initiative and 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 for environmental 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.

Japan Sustainable Fashion Alliance (JSFA)

We have a full membership of the Japan Sustainable Fashion Alliance (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, purchasing and recycling” and “carbon neutral of the fashion and textile industries in 2050,” we collaborate to identify solutions to the common 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 the categories of Environmental & Social Materiality, 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.

Click here to view the JSFA website (Japanese only)

ACT FOR SKY

Marubeni is a member of “ACT FOR SKY”, an organization dedicated to the commercialization, dissemination, and expansion of domestically produced Sustainable Aviation Fuel (SAF). With the urgent need to reduce CO₂ emissions globally in order to tackle global warming, the aviation industry must accelerate the technological development, production, distribution, and use of SAF. Also, in response to the growing global demand for SAF, a stable supply of domestically produced SAF is essential in Japan. Marubeni has identified “contribution to climate change countermeasures” as one of four categories of our Environmental and Social Materiality, and through “ACT FOR SKY” we will accelerate the commercialization, dissemination, and expansion of domestically produced SAF. At the same time, companies, local governments and others are acting together in cooperation and collaboration to promote the importance of SAF, carbon neutrality, and resource recycling, and to bring about new behaviors through changing the thinking of citizens and companies.

Click here for the ACT FOR SKY website (Japanese only)