Basic Supply Chain Sustainability Policy

The term of “human rights” in the Basic Supply Chain Sustainability Policy as used herein shall include the fundamental human rights provided for by the Constitution, the Labor Standards Law and the Universal Declaration of Human Rights and the UN Guiding Principles on Business and Human Rights.
In addition, the term shall include human rights with regard to equal employment, prohibition of forced labor and child labor, freedom of association and protection of collective bargaining rights, as prescribed by the International Labor Standards of International Labor Organization (ILO).

Conservation of the environment in Basic Supply Chain Sustainability Policy includes energy consumption, climate change, water consumption, impact on biodiversity, environmental issues, pollution, waste, and resource use.

Marubeni aims to have all its long-term business partners^*1understand and cooperate with the Basic Supply Chain Sustainability Policy, and we have been working to disseminate the policy to them.
Specifically, we are building a structure to deal with any revision to the Policy, by providing our existing and potential long-term business partners with a detailed explanation of each revision via a number of means, including briefing sessions, personal communications, and written communications to ensure our business partners have a full understanding of and are able to comply with our most updated Policy.

• “Long-term business partners” include Group companies, suppliers, service providers, contractors, third-party manufacturers, JV partners and outsourcing partners.

Policies for Individual Commodities

Based on the “Basic Supply Chain Sustainability Policy”, Marubeni has formulated individual procurement policies for certain commodities to be more specific.

Forest-derived Products

Palm Oil

Livestock Business

Beef

Seafood Products

Coffee Beans

Natural Rubber

Basic Policy on Contribution to Local Communities

The Marubeni Group recognizes that contribution to local communities is vital for conducting and growing business. Our sales activities contribute to the establishment and expansion of economic and social infrastructure in each country and region, and social investment via business activities and various regional support activities contribute to the development of local communities. Specifically, we help to address wealth inequality and regional unemployment by creating employment in the areas where we do business. We also help to stimulate local economies by procuring goods and services within the region as far as possible. Furthermore, we engage proactively with the community to promote regional development as we conduct business activities that promote mutual growth of the Marubeni Group and the region.

Measures to Counteract Noncompliance with Labor Standards under the Basic Supply Chain Sustainability Policy

Marubeni has formulated measures and procedures to counteract noncompliance with the labor standards set forth in the Basic Supply Chain Sustainability Policy, and effect improvements. The measures and procedures are as described below. There were no business partners that did not comply with the supply chain labor standards for FYE 3/2024.

Measures against Noncompliance with Labor Standards under the Basic Supply Chain Sustainability Policy[13KB]

Supply Chain Management Education/Training

To implement supply chain management, Marubeni holds webinar programs for the Company’s executives and employees to provide a better understanding of risks to human rights in the supply chain and other important issues.
Marubeni will continue to update the content every year and conduct the education and training programs.

Capacity Building of the Suppliers

In addition to dialogue and communication, Marubeni is working on capacity building efforts with our suppliers to ensure that our suppliers are informed of the Basic Supply Chain Sustainability Policy and deepen their understanding on environmental and social issues, and occupational health and safety. The advice, requests, or instructions are given, where necessary, and good examples are shared by the Marubeni’s sales personnel when visiting the suppliers.
As part of this effort, we provide training opportunities on environmental and social issues to our suppliers’ employees. The training is designed to help suppliers’ employees develop their knowledge and understanding of both environmental and social issues by sharing information on our sustainability initiatives, sustainability-related risks specific to each product, and case studies of how we have responded to them in a webinar format.
In FYE 3/2024, we offered a webinar that was attended directly by suppliers’ employees who handle cobalt.
We will continue our efforts to build a sustainable and resilient supply chain by communicating with suppliers and providing training opportunities.

Development of Sustainability Assessment Methods

The Marubeni Group is developing methods for assessing the potential risks from a business sustainability perspective as part of managing the risks involved in building supply chains that are sustainable and resilient. Incorporating the advice of an external consultant with specialized knowledge in the field, the definition of risk evaluation criteria takes into consideration relevant laws and regulations, international standards, and case studies taken from similar businesses.

Specifically, the approach involves evaluating the degree of potential risk for each type of risk in the three categories of “Environmental,” “Occupational Health and Safety,” and “Social,” taking into account (1) the sector and type of each business and (2) the country/region where each business has its operations. The degree of risk is judged based on the impact due to specific factors such as scale, range and irremediable character. We are introducing sustainability assessments in sustainability surveys sent to consolidated subsidiaries and suppliers, and as part of the risk analysis conducted for new investments.

Risk Assessment Items by Category
Environmental	Climate change / Environmental pollution / Biodiversity / Resource management / Mitigation measures and administrative procedures (environmental)
Occupational Health and Safety	Machine safety / Fires and explosions / Toxic substance exposure / Infection / Hazardous operations / Mitigation measures and administrative procedures (occupational health and safety)
Social	Forced labor and human trafficking / Child labor / Working hours / Wages and employment contracts / Discrimination / Harassment at work and disciplinary measures / Respect for Diversity / Freedom of association and the right to collective bargaining / Land issues / Negative societal impact on local communities/ Indigenous peoples and cultural heritage / Conflict minerals / Privacy / Animal welfare / Responsible marketing / Mitigation measures and administrative procedures (social)

Sustainability Surveys for Consolidated Subsidiaries

The Marubeni Group consolidated subsidiaries around the world are the starting point for the supply chains with which we provide products and services. We recognize that safeguarding the sustainability of these business operations is a first step and a critical element of building sustainable and resilient supply chains.
With this recognition, the Marubeni Group has instituted sustainability surveys for our consolidated subsidiaries from FYE 3/2020 to FYE 3/2021. All of the Group’s consolidated subsidiaries, which are approximately 400, are included in the subject of the survey, and of these, approximately 200 subsidiaries, which are considered that they are necessary to have detailed confirmation of the potential risks, are surveyed. For these 200 subsidiaries, we first assessed the potential risk level of each company using the sustainability assessment method. After, taking into account the characteristics of subsidiaries’ industries, we selected those consolidated subsidiaries with a certain level of potential risk or higher, as candidates for the on-site survey, while we conducted a written survey of the other consolidated subsidiaries. We visited five of our domestic consolidated subsidiaries together with external consultants with specialized knowledge to conduct on-site investigations to confirm that the business is operated appropriately in terms of environmental, occupational health and safety, and social aspects. As a result of the document and on-site investigations, we did not identify problems that require immediate action.

Since then, we have continued to monitor risk factors, including the presence or absence of changes in their business models that could affect their sustainability risk profile, as follow-up activities for the sustainability survey of our consolidated subsidiaries (survey for managing sustainability-related points of change at consolidated subsidiaries) mentioned above. This survey is aimed at confirming that, when certain points of change in their businesses or services were confirmed in the last one year, our consolidated subsidiaries have fully enhanced their management in the environmental, occupational health and safety including labor standards, and social aspects in response to those changes. If any problems are discovered in this survey, we take actions to improve the management, such as giving advice or recommendations about necessary improvement measures. In the survey conducted in FYE 3/2023, we found points of change at 15 consolidated subsidiaries. Each had strengthened their management in response to the changes, and we found no problem requiring immediate additional measures.

【On-site Inspection of Shinko Chemical Terminal Co., Ltd. (Headquarter and Kobe Office) in November 2020】

We conducted an on-site inspection of the Headquarter and Kobe Office of Shinko Chemical Terminal Co., Ltd., which has bases in Kobe, Nagoya, and Hakata, and which operates and manages liquid chemical tank bases. Together with outside consultants, we confirmed the status of business operations in terms of its environmental, occupational health and safety, and social aspects, by interviewing management and on-site personnel and observing on-site operational conditions. Through the three-day survey, we confirmed the excellent initiatives which should be continued regarding environmental management, occupational health and safety, and disaster preparedness by Shinko Chemical Terminal Co., Ltd. and also discussed opportunities for improvement and completed the follow-up items.

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Visit to the Vietnam and Indonesia Sewing Factories in March 2024

In March 2024, we visited two of our suppliers in Vietnam (HOA THO QUANG NAM GARMENT JOINT STOCK COMPANY) and Indonesia (PT Gistex Garmen Indonesia) to investigate the status of their sustainability initiatives.
During the survey, in accordance with our Basic Policy, we confirmed the status of compliance with laws applicable to the apparel manufacturing process, respect for human rights, occupational health and safety, and environmental protection, and found no serious violations.

HOA THO QUANG NAM GARMENT JOINT STOCK COMPANY

Respect for Human Rights, Working Conditions, and Wages, etc.

• The hiring process is conducted based on position requirements and candidate competencies, and no discrimination in hiring was identified.
• Employees are hired for ages 18 and older, and ID checks are conducted.
• Employee salaries are required to be no less than the legal minimum wage.
• Employees are generally paid at least the local living wage.
• No disciplinary cases against employees were identified.
• Policies and procedures are in place to prohibit abusive or humiliating disciplinary practices. No cases of abuse or humiliating disciplinary actions were identified.
• A policy on the whistleblowing system has been established and is communicated to employees through induction training.
• Opinion boxes for whistleblowing are located outside the manufacturing plant and maintain a certain level of anonymity. The suggestion boxes are checked weekly by the HR team. Alternatively, the employee can directly talk to the team leader, the HR team, or a representative of the labor union (currently no grievance reports have been identified).
• 100% of employees are members of a labor union and meetings are held regularly (no employee grievances or concerns were identified through the minutes provided).
• No illegal terminations have been identified.
• A water purification system is in place and provided for drinking water. Drinking water quality is tested twice a year and was found to be within legal limits.
• There is a clean kitchen and cafeteria where lunch is provided to all employees.

Occupational Health and Safety

• An EHS (Environment, Health and Safety) officer has been appointed and an OHS (Occupational Health and Safety) committee and an occupational safety network consisting of departmental and worksite members are in place.
• No occupational accidents or incidents have been recorded in the past three years.
• A FPFF (Fire Prevention and Fire Fighting) system (including fire extinguishers, fire hoses, sprinkler system, fire alarm system, induction lights, emergency lights, fire pump station, and fire water tank) is in place on the premises. The FPFF system is regularly inspected and maintained.
• We confirmed that the premises are tidy and that exits, pathways, etc. are unobstructed.
• A fire safety inspection was conducted by the local fire department in 2024 with no specific findings.
• We verified that PPE (Personal Protective Equipment) regulations are in place and properly provided and worn (PPE includes face masks, uniforms, gloves, etc.)

Environment

• An environmental protection plan has been prepared in accordance with legal requirements. The plan identifies potential environmental impacts of the operation and specifies general mitigation and control measures accordingly.
• No asbestos or PCBs (Polychlorinated biphenyls) were identified.
• No environmental incidents or accidents were identified since the start of operations.
  In addition, no signs of soil or groundwater contamination were identified during the site investigation.

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PT Gistex Garmen Indonesia

General Compliance with Laws and Regulations

• Operational procedures and other aspects of factory operations are in compliance with national laws and regulations.
• For the HSE (Health, Safety　and Environment) department, the manager has a general OHS qualification.
• Information on SOPs (Standard Operating Procedures) can be found on the QR codes on the information boards located in the manufacturing plants and is disseminated during new employee training.
• All information to workers is provided in the local language (Indonesian).
• The company conducts internal audits every three months (audits cover marketing, HR&GA, document control, production, finishing, warehouse fabrics, warehouse accessories, etc.)
• The company has obtained environmental permits, temporary hazardous waste storage permits, etc.
• Some of its employees have obtained general OHS certification, forklift operator’s license, first aid certification, etc.

Respect for Human Rights, Working Conditions, and Wages, etc.

• A human rights and labor policy is in place, specifying, among other things, the following:
  • - Annual leave for employees
  • - Maternity and menstrual leave
  • - Sick leave for workers
  • - New hires
  • - Labor unions
  • - Working hours
  • - Warnings and cautions for workers
  Separate written procedures were established for the following:
  • - Maternity leave procedures
  • - Procedures for the protection of pregnant women in the workplace
  • - Procedures on prohibition of harassment and abuse
  • - Procedures on grievance mechanisms
• Appropriate labor contracts with employees are in place.
• Training on company policies/procedures (e.g., occupational health and safety, work equipment, etc.) is provided to new employees.
• Employees keep a logbook on the HRIS (Human Resources Management System) application and complete it appropriately, including any overtime.
• Employees are hired at least 18 years of age and are properly checked with ID cards.
• The hiring process is open and no discrimination based on specific ethnicity, gender, religion, etc. was identified.
• Procedures have been developed regarding the prohibition of abuse and harassment. Most of the employees are members of a labor union, and currently no issues of harassment or abuse have been identified.
• There is a whistleblowing system and an anonymous suggestion box/phone/e-form is available. Whistleblower records are made public once a month at the union’s monthly meeting, where solutions and other issues are discussed.
• Overtime is recorded starting at one hour (attendance is recorded and controlled by fingerprint sensor).
• Employee salaries meet local minimum wage requirements and are paid appropriately on a regular basis.
• Employees were not subject to financial penalties or improper monetary collections.
• No immigrants were employed.
• Annual medical examinations are conducted for all employees in accordance with local laws and regulations.
• The factory sets its own standards regarding room temperature and humidity (it is equipped with an air-cooling system).
• Clean restrooms are provided.
• Adequate lighting is provided in the work area.
• Clean water is provided (including potable water).
• Fire extinguishers, hydrants, manual and automatic fire alarms, etc. are properly installed.
• First aid kits are in place.
• HSE related facilities are in place (alarms, medical rooms, electrical panels, eye washes, emergency exits, smoke detectors, emergency lights, etc.)
• Emergency evacuation routes have been developed and evacuation drills are conducted three times a year.
• A medical clinic is available and staffed by a resident physician.

Occupational Health and Safety

• Occupational Health and Safety Department is in place.
• An Occupational Health and Safety Advisory Committee and Occupational Health and Safety Management System are in place.
• Occupational Health and Safety Advisory Committee meets quarterly (members include a physician, an OHS officer, and a human resources and administration officer).
• There are 10 first aid certified employees.
• Occupational health and safety training is provided to employees once a year on a topic-specific basis.

Environment

• Procedures are in place for waste management and segregation.
• Environmental monitoring is conducted twice a year for domestic wastewater, air quality, and noise.

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• FYE 3/2023
  Sustainability Survey to Supplier
• FYE 3/2023
  Sustainability Survey to Supplier
• FYE 3/2019
  Sustainability Survey to Supplier
• FYE 3/2018
  Survey on Supply Chain CSR
• FYE 3/2017
  Survey on Supply Chain CSR

Working with Our Supply-chain Partners

Starting in FYE 3/2022, we are working on surveying our Tier 1 (direct) suppliers to identify sustainability risks in our supply chains. Specifically, we plan to focus mainly on the supply chains for commercial products where we believe there are major potential risks relating to sustainability.
From FYE 3/2021 to FYE 3/2023, we reaffirmed the Marubeni Group’s policy on sustainability to the Group’s approximately 23,000 Tier 1 suppliers in writing and requested their understanding and cooperation. From FYE 3/2023, based on the use of surveys and monitoring, we have requested cooperation from Tier 1 suppliers to identify and address the sustainability risks in supply chains for commercial products where we see major potential risks relating to this issue. Where surveys identify specific issues, we aim to take steps to improve and enhance management systems in cooperation with suppliers.

Animal Welfare Initiatives in Livestock Business

Marubeni Group’s Views on Animal Welfare

• The Marubeni Group has identified four categories of Environmental and Social Materiality in order to contribute to solving environmental and social issues, one of which is “building a sustainable and resilient supply chain and collaborating with business partners”. In the livestock business conducted by the Group, we recognize that “consideration for animal welfare” in addition to human rights and the environment is important for a sustainable and resilient supply chain as well as for improving productivity and producing safe and secure livestock products.
• Based on the above recognition, we have formulated the “Animal Welfare Policy” and will continue to operate our businesses with due consideration for livestock feeding and management. Through the formulation of this policy, the Marubeni Group will demonstrate its approach to animal welfare and promote initiatives that lead to the improvement of animal welfare in accordance with the laws and guidelines of each country, in cooperation with our Group companies related to livestock production.

Animal Welfare Policy

• In order to build a better symbiotic relationship with livestock, the Marubeni Group respects the concept of the Five Freedoms as the guiding principles of animal welfare as set forth by the World Organization for Animal Health (WOAH), an intergovernmental organization dedicated to improving animal health worldwide.
• The Marubeni Group will proactively consider and promote initiatives that lead to animal welfare-conscious livestock rearing.

Five Freedoms

1. Freedom from hunger, malnutrition, and thirst
2. Freedom from fear and distress
3. Freedom from heat stress or physical discomfort
4. Freedom from pain, injury, and disease
5. Freedom to express normal patterns of behavior

The Marubeni Group will continue to promote sustainable production and procurement activities that take into consideration the environment, human rights and animal welfare in its supply chain in accordance with the laws and guidelines of each country.

Click here to view specific initiatives related to animal welfare and food safety

Marubeni Group Meat (Beef) Supply Initiatives

The Marubeni Group is committed to procuring beef with an emphasis on ensuring food safety to meet the increasing demand for high quality beef from all around the world.

For imported beef, we select suppliers from beef-producing areas around the world, including North America, Australia, and South America, not only for the quality of their beef, their production processes and hygiene management, but also on condition that their beef can be traced back to the farms from which the live cattle were shipped.

The Group’s major beef-related businesses are Rangers Valley Cattle Station Pty. Ltd. (“Rangers Valley”), a feedlot in Australia, and Creekstone Farms Premium Beef LLC (“Creekstone”), a beef processing business in the United States. These two companies produce, process, and sell high quality, sustainable premium beef.

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Our Policy

The Marubeni Group is committed to maintaining food safety, and to expanding the sales of high quality, sustainable premium beef, as outlined in the policy below:

1. Ensuring Traceability

    The Marubeni Group’s beef-related businesses ensure traceability of beef back to the herd at farms and/or feedlots. For our imported beef we are also aiming to secure traceability back to the herd at farms and/or feedlots.

2. Initiatives to Reduce Environmental Impact

    The Group’s beef-related businesses regularly assess the impact of their operations on the environment and aim to reduce their environmental footprint.

3. Animal Welfare and Food Safety Initiatives

    During the production of our beef products, as well as ensuring food safety, we manage our business operations with animal welfare in mind.

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Examples of Initiatives

1. Initiatives to Ensure Traceability

In the procurement of the Group’s beef-related businesses, at Rangers Valley we have ensured traceability for each head of cattle back to the shipping farms, and at Creekstone, back to the feedlots, as detailed below. For the beef that we import, we are also aiming to establish traceability back to the shipping farms and/or feedlots. The number of cattle shipped and the traceability rate for each beef-related Group company’s business are as follows:

Head of Cattle Shipped and Traceability

Beef (grain-fed) Supply Chain

The Australian feedlot operator Rangers Valley ensures the traceability of its cattle based on the National Livestock Identification System^*2. All cattle are given electronic radio frequency identification (RFID) tags for tracking birth dates and breeding history. In addition, the company has built a close relationship with more than 400 breeding and rearing farms, and procures live cattle after ascertaining genetic information and birth records. Rangers Valley ensures the supply of beef with a focus on food safety through individual management and traceability.

• Australia’s system for identification and traceability of livestock.

2. Initiatives to Reduce Environmental Impact

＜Initiatives at Rangers Valley＞
Rangers Valley uses life cycle assessment (LCA) to check the impact of their business on the environment. Additionally, the company aims to increase animal size efficiently by independently reviewing feed formulation and feeding/fattening methods. Rangers Valley continually strives to reduce the environmental impact of its feedlot operations.

＜Initiatives at Creekstone＞
Creekstone takes great care to reduce its impact upon the natural environment as below.

• Creekstone’s processing plant and distribution center are designed with energy-efficient LED lighting along with water reuse and reconditioning systems to help conserve limited natural resources.
• Regarding packaging materials, Creekstone is making incremental improvements to reduce and replace single-use plastics and non-recyclable materials in our packaging with renewable materials.
• Creekstone is working to reduce the volume of water it consumes by, for example, reusing wastewater from its plant to use as cleaning water for live cattle holding pens.

Through both businesses, we will continue our efforts to reduce our environmental impact.

3. Other Initiatives Related to Animal Welfare and Food Safety

＜Initiatives at Rangers Valley＞
Rangers Valley is committed to raising healthy cattle to guarantee food safety. In particular, the company prepares its own in-house blends of plant-derived feed ingredients for each stage of fattening and fattens the cattle without the use of growth hormones. The company also places an emphasis on ensuring the safety of feed ingredients by requiring feed ingredient suppliers to submit a Commodity Vendor Declaration.

＜Initiatives at Creekstone＞
At Creekstone, every step of the process is designed for safe and humane animal handling. A Humane Animal Handling program has been in place since 2010 which encompasses the care and well-being of live cattle during transportation and while they are in the facility.

Creekstone’s live cattle holding facility is an indoor facility—a rarity in the U.S.—that was designed to reduce stress on live cattle based on the opinions of Dr. Temple Grandin, a leading expert on animal welfare in the U.S. The facility is designed to avoid cattle being exposed to direct sunlight and maintains a constant temperature inside, with its outside walls helping to maintain an environment with less external stress on the animals. Creekstone’s indoor cattle holding facilities provide proper ventilation and temperature controls to keep cattle comfortable in any weather conditions.

The program is monitored by Quality Assurance (QA) staff who are trained and have achieved the highest degree of Humane Handling knowledge and understanding by way of the Professional Animal Auditor Certification Organization (PAACO). Quality Assurance management staff in all facilities are Beef Quality Assurance (BQA) certified on a biannual basis.

Creekstone conducts a series of animal welfare e-learning training courses designed specifically for animal handlers by Intertek Alchemy and the North American Meat Institute, for all employees who may handle live cattle, to raise awareness of the importance of animal welfare.

To meet market needs, Creekstone has established a USDA (United States Department of Agriculture) certification program to provide “Creekstone Natural Black Angus Beef,” raised without the use of growth hormones, antibiotics, or animal-derived feed. The Creekstone Natural Black Angus Beef program has obtained the “Certified Humane” certification from the HFAC (Humane Farm Animal Care^*3) organization, a third-party certification body, since September 2015.

• Humane Farm Animal Care: A non-profit organization established to promote and administer the “Certified Humane® Raised & Handled” certification and labeling program for meat, dairy, eggs and poultry raised in accordance with U.S. animal welfare standards.

4. Our Local Community and Team Members

＜Initiatives at Rangers Valley＞
Rangers Valley is committed to taking the surrounding environment into consideration by regularly checking for odors on the premises.
Rangers Valley has built a friendly relationship with the local community by providing cow manure as fertilizer to local farmers and inviting them to an annual social gathering.

＜Initiatives at Creekstone＞
Creekstone is the largest employer in Arkansas City, Kansas, with a significant economic impact on the community and the families who live and work there. Its processing facility is founded on the cornerstones of animal welfare, worker safety, food safety, traceability, and product quality and we are dedicated to helping our customers and consumers understand where their food comes from.

• Its automated distribution center significantly reduces injuries, labor, and human error, while improving efficiencies and ensuring more consistent product quality and accurate order fulfillment.
• Creekstone established the Walnut Valley Learning Center near our processing facility to provide on-site childcare for more than 100 of our team members’ children.
• We give to and support local schools and families, as well as many local organizations that focus on hunger relief and poverty.
• On a national scale, we support various disaster relief, hunger relief and military veteran support programs.

To see more initiatives of Creekstone and Rangers Valley, click the links below.

Creekstone

Rangers Valley

Environmentally Conscious Seafood Product Procurement Initiatives

The Marubeni Group is committed to procuring seafood products that have received MSC certification^*4, which certifies that the products are wild-caught in consideration of marine resources and the environment, and ASC certification^*5 and BAP certification^*6, which certify that the products are produced through responsible aquaculture.
The status of the certified seafood products handled by the operating companies is as follows:

Seafood Procurement Performance Data

Danish Salmon A/S – Harvest volume of land-based aquaculture salmon and percentage of landings that are ASC certified

Eastern Fish Company – Percentage of MSC, ASC, and BAP certifications in terms of purchase volume

• MSC: A certification system for sustainable fisheries to protect the world’s marine resources, administered by the Marine Stewardship Council.
• ASC: An international certification program for environmentally and socially responsible aquaculture products, administered by the Aquaculture Stewardship Council.
• BAP (Best Aquaculture Practices): An international certification system for environmentally and socially responsible farmed seafood, administered by the Global Seafood Alliance.

Marubeni Group Initiatives relating to Natural Rubber

The Marubeni Group is engaged in the natural rubber trading business, mainly through our consolidated subsidiary, Marubeni Techno Rubber Corporation, and has established a natural rubber procurement policy.
In accordance with the procurement policy, we are working to ensure traceability through on-site inspections of natural rubber suppliers and other measures, and to promote sustainable procurement of natural rubber.

Click here to view the Procurement Policy of Marubeni Techno Rubber Corporation

Marubeni Group’s Initiatives in Textile Raw Materials and Products

In recent years, sustainability has become a trend in the global fashion market, and awareness of this trend has been increasing among both producers and consumers.
As such, Marubeni is expanding its environmentally friendly textile business as one of its initiatives to contribute to sustainability.

Launch of the “MALOOP PROJECT”

Textile Recycling Business in Collaboration with Circ, Inc.

From FY2023, Marubeni started to supply polyester raw materials and cellulose fiber raw materials recycled from cotton and polyester products by utilizing the textile recycling technology of Circ, Inc., a United States-based company in which Marubeni invested in 2019. By combining this initiative with Marubeni’s global network, Marubeni will not only supply recycled fiber raw materials, but also aim to establish a global circular supply chain in the Americas, Europe, and Asia―markets with great future potential.

Click here for more details on Circ, Inc. initiatives

Procurement of Organic Cotton

Marubeni has partnered with a textile company in India to supply organic cotton yarn to weaving and knitting factories.
This textile company selects farms with organic certification and purchase raw cotton which is certified by GOTS (Global Organic Textile Standard) from the ginning (the post-harvest process of separating cotton seeds from fibers) factories.
As the company itself also has GOTS certification, the organic cotton Marubeni handles is 100% traceable. Going forward, Marubeni will continue to stably procure and supply this organic cotton.

Performance data

Stakeholder Engagement Initiatives in Vietnam

In December 2023, Marubeni met with SIMEXCO DAKLAK LTD. (SIMEXCO) in Vietnam as part of the stakeholder engagement initiatives of both parties from an ESG perspective with the aim of further enhancing the value of the coffee bean supply-chain in which both companies are involved. In addition to each business department, the sustainability department of both companies participated in constructive discussions to deepen mutual understanding of existing initiatives implemented by each company, and also to consider future areas to focus on, confirming our mutual recognition as to the importance of addressing climate change and environmental issues, such as greenhouse gas (GHG) emission reductions, and international salient social and human rights issues, such as eliminating forced labor and child labor, and ensuring occupational health and safety and basic workers’ rights.

Marubeni and SIMEXCO recognize that all operators involved in the coffee bean value chain, including the farms and each step in production, including the farmers at the production sites and factory workers, are all important stakeholders in this value chain. Prior to the meeting above, we together visited farms and factories to engage in direct dialogue with operators and workers involved in the coffee farming and production process. Based on these continuous efforts to ensure face to face dialogue with all stakeholders, SIMEXCO has provided voluntary support that will contribute to improving the living standards and wellbeing of these operators, for example by providing medical supplies, protective clothing and equipment and training on best practices.

Marubeni are committed to continue our stakeholder engagement initiatives with SIMEXCO to work together to build a sustainable and ethical coffee value chain.

Other Initiatives of the Marubeni Group

＜Initiatives at Marubeni Plax Corporation＞

The Marubeni Group, led by Marubeni Plax Corporation, a consolidated subsidiary of Marubeni Corporation, has launched an initiative to recycle marine and agricultural residues, which until now have been disposed of as waste, into high value-added products, starting in 2024.

The first project will be the manufacture of environmentally friendly plastic bags using scallop shells (annual production quantity: 30 tonnes).

We will continue to seek ways to utilize unused resources in accordance with the characteristics of each region, striving for both environmental protection and regional revitalization.

Sedex

Cia. Iguaçu de Café Solúvel and Marubeni Foods Corporation, Marubeni’s subsidiary companies, take part in the platform of Sedex^*7 for coffee and other beverage raw materials, and collaborates with suppliers on respect for human rights, occupational health and safety, reduction of environmental impact, and quality assurance in the supply chain.

• Sedex: A global ethical trading service provider dedicated to improving working conditions in global supply chains.

EcoVadis

Marubeni America Corporation, Marubeni Europe plc, Marubeni International (Europe) GmbH, a subsidiary company of Marubeni Europe plc, and subsidiary companies of Marubeni Corporation (Marubeni Intex Co., Ltd., Marubeni Techno Rubber Corporation and Marubeni Chemix Corporation) are subscribed to EcoVadis^*8.
The Marubeni Group will build sustainable supply chains, strengthen risk management, and expand ethical business practices.

• 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.