The Marubeni Group is expanding its business on a global level in a wide range of fields. We recognize that each of our business streams have some degree of impact on the natural environment and biodiversity, and that all businesses benefit from nature. As stated in the Marubeni Group Environmental Policy, the Marubeni Group will endeavor to protect biodiversity and ecosystems, and contribute to conservation of biodiversity, which is an urgent issue in the world along with climate change.
At the 15th Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP15 Part Two) held in Montreal, Canada in December 2022, the “Kunming-Montreal Global Biodiversity Framework” was adopted as a new global goal and companies are expected to take actions toward “living in harmony with nature” and “nature positive” (net positive biodiversity impact). We will contribute to “living in harmony with nature” by implementing the “Green Strategy”, which is the basic policy of our Mid-Term Management Strategy (GC2024).
As a practical implementation of the Marubeni Group Environmental Policy, we confirm the impact of new business projects on natural ecosystems in advance. Using our own sustainability assessment tool, we check whether the project site is located in the vicinity of a nature reserve or national park, whether the project itself will have an impact on the ecosystem, and whether the topography and geological structure of the land, including the area surrounding the project site, will be altered significantly as a result of project implementation.
TeaM Energy Foundation, Inc. (TEFI) was established to handle the CSR activities of TeaM Energy Corporation (TeaM Energy), an independent power producer in the Philippines in which Marubeni owns a 50% stake. In cooperation with the Wild Bird Club of the Philippines (WBCP) 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 stations, which are owned and operated by TeaM Energy. The survey has confirmed that the environmental impact on the neighborhoods around the power stations is low, and a healthy environment is being maintained.
The areas around the Pagbilao and Sual power stations are sanctuaries of the Philippine duck (Anas luzonica), an endemic species of the Philippines that is designated as “vulnerable” in the IUCN Red List of Threatened Species 2014 issued by the International Union for Conservation of Nature. The sites of the power stations 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.
During the pandemic from 2020 to 2022, TEFI held off its bird watching activities with WBCP. Sual Power Station and Pagbilao Power Station have separate monitoring surveys conducted by external parties.
In a survey conducted in 2021 in Sual Power Station, a total of 1,056 bird individuals in 56 species and 34 families were recorded.
Three threatened birds were recorded in 2021: Lonchura oryzivora or Java sparrow, Streptopelia bitorquata or Island collared dove, and Anas luzonica or Philippine duck.
For Anas Luzonica or Philippine Duck, 260 were recorded in the 1st semiannual report and 60 for the 2nd semiannual report, utilizing the man-made lagoons in the area.
There were no additional species recorded, with the overall total of recorded birds remaining at 129 species. However, recurrence of Motacilla cinerea or Grey wagtail and Orthotomus derbianus or Grey-backed tailorbird were noted. The former was last observed in 2011 while the latter was in 2015.
In a survey conducted in 2021 in Pagbilao Power Station, nine species are breeding residents.
Nine of 18 species are associated with non-forest to forest habitats. Only one threatened species, Anas luzonica, was recorded, while 16 are classified as Least Concern by IUCN.
Other than Pagbilao Power Station, monitoring is also conducted in 3 other locations: 1) Binahaan Watershed Forest Reserve, 2) Binahaan Mangrove Forest and 3) Danlagan Mangrove Forest. Across the 4 locations, 584 individuals of 39 bird species were recorded.
Afforestation Program
TEFI is carrying out projects to plant acacia and other tree varieties at its Pagbilao and Sual power stations since 2001 in partnership with neighboring communities as well as NGOs such as Sioasio East Forest Developers Association. The average survival rate of the saplings planted in Sioasio is 96.5% (as of March 2023). To date, approximately 100 hectares at Sual and 328 hectares at Pagbilao have been planted and are being maintained since 2001.
In 2021, Pagbilao Power Station planted a total of 300 native trees within 4,806 ㎡of station premises where employee volunteers planted seedlings of Agoho, Narra and Talisay.
TeaM Sual Corporation on the other hand has been rehabilitating the coast of Barangay Baquioen of Sual through annual mangrove planting and maintenance for the past 5 years.
In 2021, Sual Power Station employee volunteers together with representatives of Baquioen Barangay Government unit in attendance planted 3,000 mangrove seedlings along the coast of Barangay Baquioen in Sual.
In 2022, 2,000 mangrove seedlings were planted in that area with employee volunteers, and representatives from the same government unit, the local school, and contractors.
In 2022, TEFI, with an external partner and members of the local community, planted 21,000 mangrove propagules in Barangays Victoria and Pilar, both in the Santiago Island of Bolinao town, Pangasinan; this is under TEFI's Project CATCH ME (Community Alliance Transforming Coast Habitat and Mangrove Ecosystem).
Until the ownership of Sual and Pagbilao power stations are transferred to the state-run power company from 2024 through 2025, Marubeni will continue to support the protection and maintenance of a total of about 144,000 hectares of natural forests where TEFI has been carrying out conservation and afforestation, as well as at other activity areas, with the goal to protect biodiversity and to foster forest preservation.
Tree Planting Activities to Reduce and Restore Negative Impacts on Biodiversity
Maynilad Water Services, Inc. (Maynilad), a Marubeni Group company engaged in water supply and sewerage services in Metropolitan Manila, has planted more than 219,000 mangrove propagules in the coastal area for the purpose of land conservation (including conservation of species), reduction of negative impacts caused by the population growth, and recovery. This activity employs fishermen in some areas and provides them with additional income opportunities. With the support of the country's government agencies (such as the Department of Environment and Natural Resources and local government entities), businesses, and volunteers, the company also arranges events to educate people on responsible water consumption and proper wastewater management. Together with our stakeholders, Maynilad will continue to invest in local communities through tree planting activities to conserve ecosystems, prevent flooding, provide high-quality water and operate the sustainable water business.
Engagement to Reduce Loss of Biodiversity
Forest Conservation Activities and Providing Livelihoods to Indigenous People
Since 2010, TEFI has had various activities in 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 conducted training and provided funding to a honey manufacturing facility powered by solar energy. In addition to honey, the communities of General Nakar produce resin, food and other non-timber products and also engage in textile dyeing and tea harvesting. These activities provided livelihood intended to improve living standards for 34 tribal communities and over 2,000 local residents, and to help preserve about 144,000 hectares of forest and prevent deforestation. They also contribute to the reduction of GHG emissions caused by deforestation, the long-term conservation of forests, and the promotion of carbon storage with forests.
Contribution to Sustainable Forest Management and Biodiversity Conservation Through Engagement with the State Government of Western Australia
WA Plantation Resources Pty., Ltd. (“WAPRES”), an Australian plantation and wood chip business wholly owned by Marubeni Corporation, has been engaging with the local government to comply with local laws and regulations, including the Environment Protection and Biodiversity Conservation Act 1999 (as amended), and has obtained international sustainable forest certifications.
WAPRES believes that sustainable forest management contributes to the conservation of biodiversity, and will continue such business activities.
Contributing to Biodiversity Conservation Through a Desalination and Water Transmission Project in Chile
In connection with the desalination and water transmission project for Corporación Nacional del Cobre de Chile (CODELCO) (the Project), prior to participating in the Project we identified the potential impacts on biodiversity, and took measures to avoid and reduce negative impacts.
Part of the proposed site of the Project falls within a priority conservation area for the Eriosyce Laui, a species of cactus that is listed as an endangered species (EL cactus). Therefore, in order to conserve the species, prior to our participation in the Project an external expert was retained to conduct due diligence to determine whether the EL cactus is present at the proposed construction site in the priority conservation area and the status of its habitat. As a result, it was confirmed that the EL cactus is not present at the proposed construction site.
Formulation of Biodiversity Action Plan (BAP) and Biodiversity Management Plan (BMP)
In this Project, a Biodiversity Action Plan (BAP) was developed by identifying areas with sites, species, and functions of particular importance for conservation. Detailed surveys of the relevant areas are conducted by experts, and the results are reflected in the Biodiversity Management Plan (BMP), which is continuously monitored (audited) in order to conserve biodiversity.
Entry into the Salmon Farming Business via Recirculating Aquaculture System
Responding to the Rising Global Demand for Marine Products
The improvement of living standards in the developing countries and growing health consciousness in the developed countries have resulted in the yearly increase in the global demand for marine products. Nevertheless, as the fish catch from fisheries has remained stable for the past 30 years, aquaculture has taken on an increasing significance. Within this field, in the sub-industry of salmon farming, which has been geographically limited due to the scarcity of coastal regions that are suited to seawater culture, expectations are especially high for the growth of land-based salmon farming through the use of a Recirculating Aquaculture System (hereinafter “RAS”*1), which is not limited by geographical conditions.
A Recirculating Aquaculture System (RAS) is a farming method that filters and circulates 90% or more of the water used in an enclosed, land-based facility. Given that water temperature, water quality, and other conditions are controlled within the facility, it is minimally impacted by outside factors.
In April 2020, Marubeni, jointly with Nippon Suisan (Europe) B.V., acquired shares of Danish Salmon A/S (hereinafter “DS”), a globally top-ranked company with a track record in RAS production. Marubeni will meet the growing global demand for marine products through DS, one of the few companies to have established manufacturing expertise and technology in this field.
Contribution to Sustainability
RAS has minimal impact on the surrounding environment and the ecosystem, as it uses and recirculates water within an enclosed facility, thereby reducing water pollution and the risk of escaping farmed fish. RAS also has an established control framework and is thus capable of retaining records, making it a farming method that supports traceability. It is also being regarded as a viable method of effectively resolving future shortages in protein supply which may occur in conjunction with the growing global population.
Marubeni is ready to contribute to the resolution of social problems by not only meeting the growing global demand for marine products but also providing a stable supply of environmentally-friendly marine products.
The Handling of RSPO/ISCC Certified Products
Roughly 30% of the palm oil and palm oil derivative products handled by our subsidiary Pasternak, Baum & Co., Inc. (USA) are RSPO/ISCC/RFA certified products. We are doing our part to promote such certified products by responding to the needs of our environmentally conscious customers.
Participation in International Initiatives
Participation in the TNFD Forum
TNFD Forum is an organization which shares the vison and mission of Taskforce on Nature-related Financial Disclosures (TNFD)*2, an international 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 in the world along with climate change, through supporting the development of TNFD’s framework.
TNFD is an organization to build a risk management and disclosure framework related to natural 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.
Registering Our Intent to Adopt the TNFD Recommendations as a TNFD Adopter
Marubeni registered its intent to adopt the TNFD Recommendations, becoming an TNFD Adopter*3.
TNFD Adopter is an initiative to allow organizations to register their intention to adopt the TNFD Recommendations via the TNFD website.
Adoption Pathway:
Our organization intends to publish its first TNFD-aligned disclosures alongside financial statements as part of the same reporting package for our financial year 2025 outcomes.
Marubeni endorsed the Nature Positive Declaration of the Japan Conference for 2030 Global Biodiversity Framework (J-GBF, chaired by Keidanren’s chairman, secretariat: Ministry of the Environment), and is working toward realizing Nature Positive in accordance with the National Biodiversity Strategy and Action Plans, in cooperation with the government, relevant ministries and agencies, and industry organizations.
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 and Action Policy” of October 2018 put out by the Keidanren Committee on Nature Conservation.
Marubeni is a full member of Marine Ecolabel Japan (MEL), and promotes initiatives of fisheries, aquaculture, and chain of custody that considers 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.