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Mitsubishi has an "Environmental & Social Responsibility Committee" which consists of Environmental & Social Responsibility Managers from each Business Group, as well as the heads of each department in the Corporate Staff Section. The committee meets to discuss policies and measures in the following three areas: CSR, global environmental issues and corporate citizenship. The CSR Task Force serves under the Environmental & Social Responsibility Office. It consists of mid-level managers from each Business Group and from the departments of the Corporate Staff Section. The CSR Task Force meets to share information between internal departments and to examine relevant measures.
CSR Surveys of Business Investments
Through its business operations, MC invests in companies operating in diverse industries ranging from resources development and manufacturing to logistics, sales and services. The company recognizes the importance of extending its CSR governance to business investments. Since fiscal 2004, the company has conducted surveys covering four segments--working conditions, the status of human rights, local community support, and products and services--adding these to the existing survey of environmental performance. The scope of the surveys was expanded in fiscal 2005 to investigate the procurement sources of business investments, in an effort to understand the conditions surrounding their supply chains.
Surveying Product Supply Chains
Consumer interest in the traceability of products has grown tremendously in recent years. The trend is evident in the popularity of products that enable consumers to determine the exact producer, place of origin and production method used for products and goods. There is also growing demand to indicate the place of origin on agricultural products. An example of this is the increasing adoption of international programs aimed at certifying products, primarily in the agricultural sector that certify certain ecofriendly standards. Furthermore, there is elevated interest in apparel and in other products made in factories that observe basic human rights and working conditions without the use of child labor or forced labor.
In response to these trends, the company has implemented surveys to determine the conditions surrounding the products it handles, mainly focusing on agricultural products and apparel.
The surveys are currently restricted to a limited range of products handled by MC. However, the company is committed to expanding the initiative as part of a continued effort to achieve sustainability in its supply chains.
Employee Education
Human resources development at MC is aimed at providing employees with a solid business sense while also increasing their awareness of CSR. Both of these efforts are considered essential elements to human resources development in order for the company to conduct its business globally. MC has implemented elearning courses for employees in order to boost knowledge and awareness of CSR, and has distributed a useful employee information booklet called On-the-Go Information for Employees, which also helps to boost CSR awareness. In addition, CSR training is given to every employee (currently, the scope for these initiatives is limited to all employees in Japan).
Information Disclosure
Past sustainability reports
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MC pursues business activities that are consistent with the principles of openness and transparency, based on its stated commitment to "Integrity and Fairness" in business. The company was the first general trading company in Japan to issue a Sustainability Report, a transition that was made in 2002 from the previous Environmental Report format. This current publication is the fifth Sustainability Report from MC. The company also held its first stakeholder dialogue session in March 2004, inviting stakeholders involved in various fields to participate. The company has conducted stakeholder dialogue sessions abroad since fiscal 2005, holding sessions in London and in New York. These sessions have provided valuable input for the company's business activities and for its social and environmental initiatives.
The company also actively responds to inquiries it receives from various stakeholders through surveys and interviews, on topics such as socially responsible investment (SRI). Accordingly, MC will continue to place a strong emphasis on mutual dialogue in an effort to gain input from a wider spectrum of stakeholders and to utilize this valuable source of information in its business practices.
Loan and investment proposals are examined by the Executive Committee, which acts as the strategic decision-making body for MC. Social and environmental risks are examined as part of this process, with some proposals receiving further review from the Board of Directors.
Loan and investment decisions by the Executive Committee are based on advisory input from the Portfolio Management Committee, which in turn bases its advice on comments submitted by specialized internal departments. The screening and review process is a comprehensive one, taking into account not only economic but also global environment and community impact factors. The process is specifi cally guided by the following mechanisms:
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Inclusion of environmental and social impacts in loan and investment proposals |
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Screening of environmental and social impacts by Environmental & Social Responsibility Office |
The Environmental and Social Responsibility Office uses the following documents to guide its screening process: Guidelines for Confi rmation of Environmental and Social Considerations published by the Japan Bank for International Cooperation (JBIC) and International Finance Corporation (IFC) guidelines. The office has also formulated a CSR checklist for consideration before advancing loan and investment proposals. In addition to screening for environmental criteria, social criteria such as human rights and working conditions are also examined from a global perspective.
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