Policy & Basic Approach
The Basic Policy on Promotion of Sustainability sets the direction for ITOCHU Europe's efforts to further sustainability. It is written in the spirit of ITOCHU Group’s core philosophy, Sampo Yoshi, which is the management philosophy of merchants in the province of Ohmi in Japan. Meanwhile, we adopted an ESG mindset in organizing and integrating ITOCHU Group’s Basic Policies for CSR Promotion and Environmental Activities Policies.
The ITOCHU Group Basic Policy on Promotion of Sustainability
ITOCHU Europe considers that addressing global environmental and social issues is one of the top priority issues in its management policy. We contribute to the realization of a sustainable society based on the ITOCHU Europe code of conduct, in order to achieve the goals of The ITOCHU Group Corporate Philosophy, "Committed to the Global Good."
In keeping with the basic philosophy presented above, the ITOCHU Europe sets out the following action guidelines to promote its sustainability.
|(1) Identification of material issues and promotion of businesses that address the social issues||As a member of the international community, we seek to identify critical sustainability issues whose resolution will lead to the sustainable growth of society as well as our businesses, and aim to enhance corporate value through our operations.|
|(2) Establishment of mutual trust with society||We continue to address society's expectations and requests by increasing the disclosure of information and facilitating two-way dialogues with stakeholders. By pursuing these initiatives, we aim to become a trusted Group.|
|(3) Strengthening of natural resources, with consideration for the environment and respect for human rights||While engaging in business activities, we respect the legal systems of each country and international rules, and strive to prevent the occurrence of environmental pollution and/or human rights and labour issues that threaten our lives. In addition, we give due consideration to the mitigation of and adaption to climate change, the preservation of the global environment, such as through the conservation of biodiversity and ecosystems, and human rights issues.
We endeavour to understand how natural resources are utilized (such as air, water, land, food, minerals, fossil fuels, animals, and plants) and what consideration is given to human rights and labour issues, both in the businesses where we invest and in the supply chains related to the products we handle. We request our business partners to understand and implement our concept of sustainability, and aim to build a sustainable value chain.
|(4) Education and awareness of employees to promote sustainability||Since promoting sustainability rests in the hands of individual employees, we conduct employee training and awareness activities to deepen their awareness about solving social issues.
Along with other conditions to which we have agreed, all employees observe domestic and international laws and regulations. They also follow this policy when executing action plans for their respective units. With this approach, ITOCHU aims to contribute to society through its business.
Critical Issues (Material Issues)
In April 2018, ITOCHU adopted an Environmental, Social and Governance (ESG) mindset to identify material sustainability issues. Addressing these critical issues through our primary business operations is how we are working toward sustainable growth through a reinvented Sampo Yoshi approach that will achieve the goals of ITOCHU’s Medium-Term Management Plan named Brand-new Deal 2020.
In a sustainability effort to carry out the company's responsibilities for the society of today and the future, we are also helping to achieve UN SDGs.
ITOCHU Europe, as the regional head quarter in Europe, identified the following material sustainability issues that address the social issues, which are substantially identical to the ITOCHU’s material sustainability issues.
Material Sustainability Issues
Reinvent Businesses Through Technological Innovation
We create new value by proactively exploring new technologies as we adapt to a transforming industrial establishment by venturing beyond the framework of our existing business.
Address Climate Change
(Contribute to Realization of a Low-Carbon Society)
As we endeavor to adapt to climate change's impact on business, we further business activities that contribute to a low-carbon society and work to reduce greenhouse gas emissions.
We provide a setting where employees are proud and motivated, and where we can leverage diversity so they can fully exhibit their capabilities.
Respect Human Rights
While showing respect and consideration for human rights in our operations, we bring stability to our business and contribute to the development of local communities.
Contribute to Healthier and More Enriched Lifestyles
With the intention of raising quality of life for all people, we help make healthy, bountiful living possible.
Ensure Stable Procurement and Supply
With aspirations for a recycling-oriented society, we give consideration to biodiversity and other important aspects of the environment to engage in effective use and steady procurement and supply of resources in line with their demand in each country.
[Drafted 26 April 2019]
Sustainability in Our Supply Chain
BASIC STANCE ON SUPPLY CHAIN MANAGEMENT
To fulfill the ITOCHU Credo, “Committed to the global good,” ITOCHU Europe PLC promotes CSR through its business activities, with the aim of achieving a sustainable society.
Due to the characteristics of its business activities, ITOCHU Europe PLC has to keep working to manage its supply chains, taking into consideration the social or environmental impact of a variety of products and services handled.
ITOCHU Europe PLC has established the CSR Action Guidelines for Supply Chains to explain its position to suppliers, and expects and encourages their understanding and implementation of every item mentioned below.
- Suppliers shall respect the human rights of its employees, and shall not treat employees in an inhumane manner including verbal abuse and physical punishment.
- Suppliers shall not engage in forced labor or child labor.
- Suppliers shall not practice discrimination in hiring and employment.
- Suppliers shall prevent unfair low-wage labor.
- Suppliers shall respect the rights of employees to organize and bargain collectively to promote smooth negotiation between labor and management.
- Suppliers shall ensure that employees' working hours, holidays, and use of leave of absence are properly managed so as to comply with statutory standards.
- Suppliers shall strive to provide employees with a safe and healthy work environment.
- In the course of their business activities, suppliers shall duly consider the need to conserve ecosystems as well as local and global environments, and strive to prevent the occurrence of environmental pollution.
- Suppliers shall observe all related laws and international rules, ensure fair transactions, and prevent corruption.
- Suppliers shall disclose information regarding the above items in a timely and appropriate manner.
At ITOCHU Europe PLC, we are serious about addressing human rights issues, including modern slavery and human trafficking.
Please refer to our statements for further information.
ITOCHU Europe Green Finance Framework
As the regional headquarters of ITOCHU’s operation in Europe, ITOCHU Europe Plc (ITOCHU Europe) published its Green Finance Framework in March 2019 and raised its first green loan of EUR150Million from Mizuho Bank and ING Bank through ITOCHU Treasury Centre Europe Plc, ITOCHU’s group finance vehicle for Europe and the Middle East. This is the first green finance procured by any of the Japanese trading houses (so-called “Sogoshosha”). ITOCHU Europe Green Finance Framework was supported by ING, which acted as a Green Structuring Advisor, and was independently reviewed by Sustainalytics.
As a group, ITOCHU believes in the importance of fulfilling its social responsibilities. This is accomplished through the continuous enhancement of sustainable corporate values within its core business, in accordance with the ITOCHU Mission Statement "Committed to the Global Good". This is also in the spirit of Sampo Yoshi (good for the buyer, good for the seller, and good for society), the management philosophy of merchants in the province of Ohmi that has been embraced by the company since its founding in 1858.
In April 2018, ITOCHU adopted an Environmental, Social and Governance (ESG) mindset to identify material sustainability issues in its Medium-Term Management Plan entitled “Brand-new Deal 2020”. By addressing these critical issues through our primary business operations, we are working towards sustainable growth through a reinvented Sampo Yoshi approach that will achieve the goals of Brand-new Deal 2020. Sustainability initiatives of ITOCHU, which fulfil its responsibilities for the present and future society, also contribute to the achievement of the Sustainable Development Goals (SDGs), which were adopted at a UN Summit in 2015.
The ITOCHU Europe Green Finance Framework highlights how the activities of ITOCHU Europe are supporting two of the SDGs, namely affordable and clean energy and responsible consumption and production. These consist of material sustainability issues identified by ITOCHU at group level.
Mr Hiroshi Sato, CEO of ITOCHU Europe, explained “Sustainability is a key driver of ITOCHU Europe’s business activities, ranging from textiles, machinery, non-ferrous metals, foodstuffs, chemicals, general merchandise and some financial transactions. ITOCHU Europe, together with ITOCHU group companies in the region, would like to achieve growth by expanding our sustainable business in such ways as developing and introducing new technology for environmentally friendly materials, deploying sophisticated technology to save energy, and investing in energy efficient and/or renewable energy projects. Establishing the green finance framework is an important milestone for us, showing our clear commitment to sustainability to the public here in Europe”.
"Mizuho is proactively contributing to the sustainable growth of our clients and the communities that we serve, and we believe it is vital to assist our clients with the provision of sustainability finance. As our clients' best financial solutions partner, offering a full range of innovative services including green loans, we will continue using our group's full capability to support our clients' ESG initiatives." said Hiroshi Nagamine, Managing Executive Officer and Head of EMEA, Mizuho Bank, Ltd.
“ING is committed to creating sustainable solutions for clients. Our team is proud to have done so for Itochu,” said Reiji Matsushima, Head of Diversified Corporates at ING in Tokyo.
“As a bank, the choices we make in financing our clients enable us to contribute to a sustainable economy, and green loans are a big part of our sustainable finance portfolio. While we continuously support our clients with sustainable business solutions, we make the biggest impact through our financing” said Leonie Schreve, Global Head of Sustainable Finance, ING.
Use and Source of green finance:
1. List of eligible projects
(*1) COD=Commercial Operation Date
(*2) “Capacity” is generation capacity for Renewable Energy and capacity for waste treatment volume per year for EfW.
2. Use and source table as of March 2019
|Use of Proceeds (€Mil)||Source of Proceed(€Mil)|
|Renewable Energy||206||Green Loan March 2019
from Mizuho and ING
|Pollution Prevention and Control||68||Other Sources||124|