The effects of climate change are becoming increasingly severe, with progressively profound impacts on the natural environment, our societies, our business activities, and our everyday lives.
Against this backdrop, there is a growing swell of action across the globe with a collective mission to lower the temperature rise by decarbonising our planet. In 2015, at COP21, 196 parties adopted the landmark Paris Agreement, the goal of which is to limit global warming to well below 2 degrees Celsius, and preferably 1.5 degrees Celsius, by the end of the century. To achieve this ambitious temperature goal, a significant transformation of the current energy supply-demand structure is needed, and governments, institutions and corporations now need to invest heavily in climate change adaptation activities if we are to carve a path to a carbon neutral world by mid-century.
The Paris Agreement has heightened expectations not only for countries and governments to fulfill key roles in mitigating climate change, but also for the private sector. Companies are expected to implement measures to achieve a decarbonised society through their business activities, and there are growing calls for companies to disclose climate change-related information in line with initiatives such as the Task Force on Climate-related Financial Disclosures (TCFD)*1, and the disclosure framework being developed by the International Sustainability Standards Board (ISSB)*2 of the IFRS. As a result, opportunities for dialogue on climate change between companies and investors are expanding - including through the institutional investor initiative, Climate Action 100+, and the TCFD Consortium (launched in Japan in 2019). The purpose of these initiatives is to encourage the disclosure of information to allow investors and other stakeholders to properly monitor and evaluate the climate-related risks and opportunities of companies.
Since its inception in the 1950s, Mitsubishi Corporation (MC) has held the ”Three Corporate Principles” as its core philosophy. These guiding principles inspire us to conduct fair and sound business activities at all times. MC adopted the Environmental Charter and Social Charter in accordance with the Three Corporate Principles, and we commit to increase our corporate value as well as to contribute to the sustainable development of society through the simultaneous generation of economic, social, and environmental value, as a globally integrated business enterprise.
At MC, we believe that while climate change poses significant business risks, it also presents us with new business opportunities for innovation, disruption and growth. Accordingly, MC has set “Contributing to Decarbonized Societies” asone of its material issues as we strive to achieve sustainable growth.
In shifting to a decarbonized society, it is necessary to formulate specific policies that take into account the actual conditions (energy and power mix, geographical conditions and constraints, stage of economic development, population, etc.) that differ from country to country and region to region, and to steadily implement them one by one. Through our global network of offices, subsidiaries and around 1,700 group companies, we work with a wide range of stakeholders around the world each day in developing our business.