Management System Plastic Strategies Climate Change Policy

Climate Change Policy

We believe that priority must be afforded to solving climate change-related issues in order to realize an ideal future society.
The Mitsui Chemicals Group takes into account foreseeable opportunities and risks from a long-term perspective with a view to the year 2050 and tackles climate change issues with two approaches: mitigation and adaptation. With this in mind, we formulated a policy on addressing climate change that covers the entire global value chain.

Mitsui Chemicals Group Climate Change Policy

Taking climate change as a top priority issue, the Mitsui Chemicals Group will undertake initiatives for collaboration and co-creation in the global value chain.

Mitigation

Realizing a low-carbon society by reducing GHG emissions

Opportunities and risks
Low-carbon manufacturing
  • Energy conservation and renewable energy
  • Switching to alternative raw materials and fuels
Product-driven GHG reductions
  • Blue Value™ products
Improved recycling technology
  • Innovation in materials and design
Maximization of value chain contributions

Adaptation

Realizing a healthy and sound society resistant to climate change risks

Opportunities and risks
Improving water security
  • Risk management at production sites
  • Effective use of water resources
Expanding lineup of adaptable products
  • Rose Value™ products
  • Disaster prevention/mitigation products
Strengthening of value chain resilience

Realizing a low-carbon society by reducing GHG emissions

Low-carbon manufacturing

Chemical products use raw materials derived from fossil resources. And they are manufactured through a number of processes in which fossil fuels are converted to steam or electricity. For these reasons, the chemical industry emits far more GHGs than other industries. We believe we can contribute to greatly reducing GHG emissions in the manufacturing of our chemical products up ahead by implementing various measures. For example, switching to low-carbon raw materials and fuels, cutting down on energy used in manufacturing by mainly using high-performance catalysts and installing energy-efficient equipment, and making active use of renewable energy.

GHG reduction contributions by products

Chemical products are used in a broad range of end products and can contribute to reducing GHGs at each stage of the product lifecycle. Within the Mitsui Chemicals Group, we certify those products that are environmentally friendly as Blue Value™ products. One of the contribution categories used in our certification assessment is CO2 reduction—we therefore evaluate how much a product reduces GHGs at each stage of its lifecycle. Furthermore, the sales ratio of Blue Value™ products is one KPI set in our 2025 Long-Term Business Plan. We intend to accelerate the development of products that fully reflect our Blue Value™ perspectives.

Improved recycling technology

We think promoting the recycling of resources is also an important challenge both in terms of reducing the use of fossil fuels and lowering GHG emissions. As outlined in our plastic strategies, we intend to work on designing products that can be easily recycled.

Contribution example of reduced GHG emissions throughout the lifecycle of chemical products

Realizing a healthy and sound society resistant to climate change risks

Improved water security

Damage from wind, floods, and drought are expected to increase as unrelenting global warming causes major changes in climate phenomena. Population increase and economic development are also expected to trigger large-scale water shortages. Owing to the fact that a lot of water is required in the manufacturing of chemical products—for example, for heating/cooling and product purification—changes in the available water supply or its quality could have a negative impact on our business activities. Given that the Mitsui Chemicals Group maintains production sites in multiple regions around the world, we believe that it is necessary to conduct risk assessments and take measures in accordance with local conditions.

Expanding lineup of adaptable products

It is expected that the rise in temperature increase associated with climate change will have a serious impact on health and the basic needs of humans, i.e., food, clothing, and shelter, as well as agricultural produce and ecosystems. Within the Mitsui Chemicals Group, we certify those products that help improve QOL, mainly in regards to extending healthy life expectancy and addressing food problems, as Rose Value™ products. As part of the certification process, we evaluate a product’s contributions to preventing infectious diseases or minimizing food loss, for example. Moreover, the sales ratio of Rose Value™ products is one KPI set in our 2025 Long-Term Business Plan. We intend to accelerate development and expand our lineup of adaptable products that fully reflect our Rose Value™ perspectives.

Supporting the Recommendations of the TCFD

In January 2019, the Mitsui Chemicals Group announced its support of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD*). As a chemical company, we intend to earnestly tackle climate change, deepen our understanding of the opportunities and risks that affect our businesses, and endeavor to actively disclose our initiatives.

*TCFD:
The TCFD was set up by the Financial Stability Board. In June 2017 it announced recommendations calling for financial institutions, corporations, and governments to disclose the business impacts of climate change in their financial reports. According to the TCFD, 792 institutions worldwide have expressed their support for the recommendations (as of June 2019).

The recommendations of the TCFD urge companies to disclose information about climate change-related governance, business strategies, risk management, indicators, and targets. In line with the TCFD’s recommendations, the Group will take the following approach.

1. Materiality assessment of climate change-related risks

Qualitatively analyze risks and opportunities concerning climate change in our key businesses

2. Identification and determination of scope of scenarios

Forecast the changes in our business environment concerning climate change (scenarios) and examine their impacts

3. Quantification of business impacts

Quantify impacts on future business strategies and financials based on our scenarios and reflect them in strategies

4. Identification of potential measures

Determine the measures for climate change strategy and select management control indicators

1. Materiality assessment of climate change-related risks

As a first step, we assessed the impacts of climate change on the Group’s businesses. Going forward, we plan to use this information to perform a scenario analysis of the climate change impacts on our businesses and disclose the results.

1)Assessment scope

Selected key business domains in the Group susceptible to the impacts of climate change.

(1) Mobility, (2) Petrochemical feedstocks, (3) Agriculture, (4) Health Care, (5) Electricals and electronics,
(6) Packaging, (7) Energy solutions

2)Assessment method

1. Identification of climate change risks and opportunities

Identify risks (both physical and those pertaining to the transition to a low-carbon society) and opportunities based on the information disclosure framework presented in the TCFD’s Final Report.

2. Picking out major risks and opportunities

Pick out the particularly major risks and opportunities from those identified above in light of their potential occurrence and impact on business (human loss, financial impacts, etc.). When doing so, take into account factors such as trends in international discussions, the Group’s business regions, and case examples at other companies.

3)Assessment results ( denotes risks; denotes opportunities)

Assessment items Group-wide Specific business domains
Physical risks/
opportunities
Acute Heightened risk of wind or rain damage (floods/storms)  
Chronic Heightened risk of rising sea levels (high tides)
Heightened risk of freshwater scarcity
Changes in arable land and development of new agricultural technology (3)
Wider distribution of pests, weeds, and bacteria (3)
Wider prevalence of infectious diseases caused by climate change (4)
Risks and opportunities pertaining to shift to low-carbon society Policies and legislation Risks from introduction of, and increases in, carbon pricing
Increase in litigation risks
Impacts on business from shift to EVs (1)(5)
Restrictions on use of synthetic chemical fertilizers (3)
Technologies Uptake of renewable energies
Accelerated development of CCU technology and advanced recycling technology
Uptake of biomass plastics (1)(2)(6)
Faster transition to low-GHG emissions technology (2)(5)(6)
Markets Spread of circular economy
Transition to renewable raw materials
Calls for manufacturers to use renewable energy
Higher prices for scarce resources due to shift to EVs and transition to a hydrogen-fueled low-carbon society
Decrease in auto manufacturing and sales volume owing mainly to increase in ridesharing and carsharing (1)
Shortage of naphtha due to decline in oil production output (2)
Increased demand for renewable energy (7)
Reputation Increased investor approaches  

*External data used include IPCC RCP2.6, RCP8.5, IEA B2DS, and SDS.

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