Promoting Stable, Sustainable Societies and Lifestyles

Global energy demand is expected to increase mainly due to population growth and economic development. While the switch to renewable energy is expected to progress in the power sector in the future, dramatic technological innovation is essential to supplement renewable energy sources in terms of intermittency, location and other factors. Therefore, to meet the world’s growing energy demand and at the same time realize a carbon-neutral society, it is essential to decarbonize fossil fuels.

MC is committed to fulfilling its responsibility to provide a stable supply of natural gas and LNG, which will support the transition period with its relatively low environmental impact among fossil fuels, as well as reduce GHG emissions throughout the value chain via improvements in operational efficiency, CCUS and other methods.

Tangguh is the largest gas-producing project in Papua Barat Province of Indonesia, accounting for around 30% of the country’s gas output. MC is participating in the project as a joint venture with bp, the project operator. Tangguh LNG Project began operations in 2009 and has safely delivered more than 1,700 cargoes to global markets including Indonesia and Japan. In 2023, the expansion of a third LNG train added 3.8 million tons per year of LNG production capacity to the existing 2 trains (production capacity: 7.6 million tons per year), increasing the total LNG production capacity of the Tangguh LNG Project to 11.4 million tons per year.

In addition, we are planning the next phase of development including CCUS project, which is based on a Plan of Development approved by SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities Republic of Indonesia) in 2021. Once the CCUS project is implemented, which is subject to a final investment decision by Tangguh Partners, it will remove up to 90% of the reservoir-associated CO₂ which represents nearly half of Tangguh’s LNG emissions, making Tangguh one of the lowest GHG intensity LNG plants in the world.

Since steel is a basic material that is difficult to replace, its demand is expected to remain strong over the long term in line with global economic growth. In the steel industry, the ironmaking process (blast furnace method), which uses primarily iron ore as raw materials, emits a high amount of GHG emissions. Therefore, it is expected that the use of electric furnaces, which mainly use steel scrap, and the use of hydrogen in the ironmaking process will expand in the future. However, it will take considerable time to realize the necessary technological innovations and switching of production facilities. Therefore, decarbonization of the blast furnace ironmaking process, which is currently the mainstream process, will be an important issue for the time being. MC will continue to contribute to the decarbonization of the steel industry by fulfilling our responsibility to provide customers with a stable supply of high-quality metallurgical coal as one of raw materials for the blast furnace ironmaking process, one of MC’s major commodities, and contribute to the decarbonization of the existing blast furnace method.

Mitsubishi Development Pty Ltd. (MDP) which conducts exploration, development, production, and sales of mineral resources, jointly operates its metallurgical coal business, BMA, together with its partner. BMA operates one of the world’s largest metallurgical coal operations. BMA is fulfilling its responsibility to provide a stable supply of high-quality metallurgical coal that contributes to the decarbonization of the blast furnace method of steelmaking. In April 2024, divestment of some of its coal mines was officially concluded, marking the culmination of our efforts to consolidate its holding in high-grade/quality mines.

Also, while staying aware of changes in the business environment, MDP will strive to reduce GHG emissions from BMA’s production processes. Furthermore, together with its metallurgical coal business partner BHP, MDP is working to support research that contributes to reducing emissions throughout the entire metallurgical coal value chain. In October 2022, MDP entered into a collaboration agreement with ArcelorMittal, Mitsubishi Heavy Industries, Ltd. and BHP regarding the application of CO₂ capture technology in the field of steel making and jointly conduct demonstration tests for the application of CO₂ capture technology at ArcelorMittal's steel works.

With demand for food rising in line with global population growth, and an increased interest in sustainability, the establishment of a sustainable production and supply system is becoming increasingly important. MC is working to develop sustainable production, processing and sales business model, as well as increasing products that have international fishing/farming certifications such as MSC/ASC, and promoting transactions with suppliers that comply with our Policy for Sustainable Supply Chain Management.

Cermaq is one of the major salmon (including coho) farming, processing and sales companies in the world which became a subsidiary of MC in 2014. Cermaq produces salmon in Norway, Chile and Canada for a total production quantity of around 200 thousand metric tons per year and supplies sustainable, safe and secure farmed salmon to consumers around the world.

Cermaq, has identified biodiversity protection as a key part of its license to operate in all the countries where it has operations. Cermaq works actively in cooperation with local stakeholders to protect biodiversity, including salmonids in all areas where they are present, monitoring of benthic impacts and tracking bird and marine mammal mortalities at its sites in compliance with all laws and regulations of Chile, Canada, and Norway and additional requirements set by different certification standards (ASC and BAP).Cermaq also engages in beach cleaning in the regions it operates, irrespective of the source of the litter.

In its feed supplier Code of Conduct, Cermaq mandates that no fish meal or fish oil used in the feed for its fish shall originate from IUU (Illegal, unreported, unregulated) fisheries and that soy shall be deforestation free.