"MC`s Businesses From a Sustainability Standpoint" (PDF:2.5MB)
Transcription
"MC`s Businesses From a Sustainability Standpoint" (PDF:2.5MB)
Feature 1 MC’s Businesses From a Sustainability Standpoint The Starting Point for MC The Three Corporate Principles Corporate Responsibility to Society “Shoki Hoko” Strive to enrich society, both materially and spiritually, while contributing towards the preservation of the global environment. Integrity and Fairness “Shoji Komei” Maintain principles of transparency and openness, conducting business with integrity and fairness. The Spirit of the Three Corporate Principles Lives On Contributing to Society Even in Troubled Times Passing the Spirit of the Three Corporate Principles to Future Generations In 1920, the Japanese economy fell into recession and was in a state of disarray following a post-WWI boom and due to plummeting stock prices caused by the tightening of monetary policy. The old Mitsubishi Trading Company (Mitsubishi Shoji Kaisha ─ disbanded in 1947), which had only just been established in 1918, had to endure extremely difficult circumstances and was forced to suspend dividends for three years from 1919. Faced with these circumstances, Koyata Iwasaki, the first chairman of the old Mitsubishi Shoji Kaisha, and fourth president of Mitsubishi, called a meeting for all office general managers*1 at headquarters. Standing before the assembled managers, who were resigned to being blamed for the company’s results, he used the occasion to explain the need to question the economic function of trade and the responsibility of trading companies to producers and consumers. An excerpt of his speech is as follows: “We must wholeheartedly embrace competition, but we must compete fairly. And I want us to compete in terms of quality, not quantity. However, we must be careful not to get so caught up in competing that we use any means to justify the end. This would be regrettable in light of our founding traditions. We mustn’t speculate with the aim of profiteering, so as to get rich quick.” Based on the leadership of Mr. Iwasaki, the Three Corporate Principles were formulated in 1934 as the core values for the company. The spirit of these principles has been kept alive by successive generations of employees and remains to this day the touchstone for fulfilling our responsibilities to the global environment and society as we conduct business. For instance, when we conduct business in a new region, we communicate with all local stakeholders including the people that live there. We engage in business mindful of contributing to the development of local communities such as by taking into account the natural environment, creating jobs, and improving living environments. This approach extends across entire value chains, from upstream resource development and procurement to downstream sales and services. Today the spirit of the Three Corporate Principles remains the cornerstone of our organizational and corporate culture and represents what Mitsubishi Corporation stands for. As a good corporate citizen, we will ensure that the spirit of the Three Corporate Principles lives on through our core businesses. *1 General managers of Mitsubishi Corporation bases in Japan and overseas are generally referred to as office general managers. International Understanding through Trade “Ritsugyo Boeki” Expand business, based on an all-encompassing global perspective. ( The modern day interpretation of the Three Corporate Principles, as agreed at the Kinyokai meeting of the 28 companies that constitute the so-called Mitsubishi group in January 2001.) 8 Feature 1 The first issue of the in-house newsletter published in 1954 featured the Three Corporate Principles Mitsubishi Corporation Sustainability Report 2009 9 Feature 1 Contributing to Safe, Comfortable Transportation ──── Transport Systems Business 3, which will link Cairo with Cairo International Airport, is proceeding toward a scheduled opening date in 2011 with technical cooperation involving the transfer of Japan’s railcar manufacturing technologies to Egyptian manufacturers. As the coordinator for this project, MC is thus helping Egypt in its efforts to produce railcars domestically. For Local Communities The merits of railways are being revisited around the world as a means of public transportation with a lower environmental impact than automobiles and planes. In countries with underdeveloped infrastructure in particular, demand for railways as a means of city transportation is increasing due to the air pollution and economic losses that stem from chronic traffic congestion. MC is responding to the needs of these countries through its railways and other transport systems businesses. Enhanced transportation infrastructure naturally raises convenience for locals; but it also contributes to the advancement of regional communities, alleviating traffic congestion, easing environmental problems and creating jobs, among other benefits. Activities in Cairo, Egypt MC’s railway business activities began with the delivery of Japanese-made steam locomotives to India in 1955. Today, MC supplies railcars and equipment, and constructs, operates and maintains complete railway systems overseas, fulfilling the roles and offering the functions demanded of railway management. Railway projects span many years and cost enormous sums of money. Through its involvement, MC is helping to bring these major undertakings to fruition. MC’s activities in Egypt began in 1962 when it delivered street cars to the Heliopolis development company. Since then, we have continued trading activities, delivering more than 1,400 railcars thus far to railway operators in Egypt. The Cairo Metro subway stands out as one of the most noteworthy projects. Opened in 1987, it is the African continent’s only subway line. Comprising 2 lines today that stretch for 65 kilometers in total, the Cairo Metro subway has become a main arterial line, carrying some 2.5 million passengers per day. It is now so interwoven with the lives of Cairo residents that it is regarded as one of Egypt’s foremost 10 Feature 1 When railways are built, it is common practice for construction to go ahead only after an environmental survey is conducted and the fulfillment of conditions such as compliance with country laws and regulations is confirmed. To achieve even greater transparency, dialogue is held with environmental groups and public comment is also solicited. In Dubai, United Arab Emirates (UAE), the Dubai Metro is scheduled to begin first-stage operations in 2009. The Dubai Metro is the world’s longest fully automated railway with 76 kilometers of track. MC is participating in this project as a member of a five-company consortium. In addition to supplying rolling stock, signaling equipment, communications and station facilities, this project also involves civil engineering and construction work necessary to build elevated tracks, tunnels and stations. The consortium will also maintain the railway system under contract for three years after it opens. The Dubai Metro has already created many jobs, with some 30,000 people working on the project, and completion of this transport system in a highly motorized society like Dubai is expected to ease congestion that can choke economic growth. For these reasons, the project has considerable social significance and is highly anticipated by locals. Amid the worldwide reassessment of railways as an environmentally friendly means of transport, a CDM *1 application has been approved for the construction of a railway in India. “The opening of a railway can change people’s lives and lifestyles. We’re convinced of that and it’s for that reason that we are developing our transport system business in Egypt and other places,” says Takeo Kato, Transportation Systems Unit, Ship Aerospace & Transportation Systems Division, Machinery Group. A Japanese-made railcar is unloaded at the Port of Alexandria, Egypt. Cairo Metro subway railcars are designed with Cairo’s weather and regional characteristics in mind, so as to facilitate maintenance, when sand or dust gets into precision equipment. Dubai Metro *1: Clean Development Mechanism (CDM) is one of the Kyoto Mechanisms incorporated in the Kyoto Protocol for creating emission credits. Projects carried out by industrialized countries that reduce emissions in developing countries earn credits issued according to the volume of reductions. MC’s Worldwide Transport System Business public works projects, even to the extent that it has been referred to as the “Fourth Pyramid” after the three pyramids in the Giza Necropolis. Helping Egypt to Make Railcars MC delivered 60 Japanese-made railway cars to the Cairo Metro subway in 1993. Robust and dependable, Japanesemade railcars have earned a worldwide reputation. Cairo Metro Organization, the operator of the railway at the time, requested railcars that were made with regional characteristics in mind such as in terms of weather, climate and national character. MC met those demands, supplying new railcars with the cooperation of Japanese manufacturers. The government of Egypt views railways as an important national industry and is channeling efforts into the domestic production of railcars. For this reason, some of the railcars MC delivered are being assembled in Egypt by a local rolling stock manufacturer under the technical supervision of Japanese manufacturers. Furthermore, Cairo Metro Line MTR Corporation (Hong Kong) Delhi Metro Rail Corporation (India) Taiwan High Speed Rail Corporation (Taiwan) The copyright is preserved and licensed by Taiwan High Speed Rail Corporation Stakeholder Message Mitsubishi Corporation is known as one of the major suppliers of railway cars and our first transaction with them was in 1993 after they supplied us with railcars for the Number 1 Line (Helwarn–Elmarg). Thanks to Mitsubishi Corporation’s past performance we entered into a long-term maintenance contract with them for our Number 2 Line starting in August 2008. Although the time period for this contract was about to expire, we actually extended the contract for an additional three months because we valued their service flexibility and efficiency. We highly appreciate Mitsubishi Corporation’s superb ability to contribute to safe transportation within the region. Eng. Ahmed Abd Elhafez, Head of Central Department, Line No. 2 Maintenance, The Egyptian Company for Metro Mitsubishi Corporation Sustainability Report 2009 11 Feature 1 Responding to Society’s Expectations From Raw Material Procurement to Retail Sales ──── Supply Chain Management CSR Action Guidelines for Supply Chains Surveys and Site Monitoring MC handles a multitude of products around the world and accordingly supply chain management is one of the key areas of focus in our overall commitment to CSR. We request that our suppliers adhere to our CSR Action Guidelines for Supply Chains (see below) to help ensure that the products we deal with have been produced in an environmentally and socially responsible manner. These action guidelines, which were first formulated in February 2008, are published on MC’s website and communicated directly to our suppliers and other relevant parties. The guidelines cover the basic environmental and social standards that we expect all of our suppliers to adhere to. MC conducts surveys of suppliers of a range of products, including those industries where CSR considerations are particularly impactful, such as agricultural produce and apparel. In the fiscal year ended March 31, 2009, replies were received from 193 companies in 28 countries and regions. Respondents answered questions pertaining to matters such as the existence of regulations and legal compliance; forced labor, child labor and prohibition of discrimination; environmental conservation; and information disclosure. No particular problems were identified by this survey, but as a measure of assurance we have also begun site visits to key suppliers. In July 2009, we visited two companies in China to inspect manufacturing work sites, interview management and monitor the CSR activities of each company (see below). Survey Responses for Fiscal Year Ended March 2009 by Region Looking Ahead Supplier surveys and site visits provide a valuable opportunity to communicate MC’s stance on CSR and environmental affairs and will therefore be conducted on an ongoing basis. MC conducts transactions with a large number of suppliers throughout the world. Moving forward, the company plans to continue efforts to ensure that its supply chain guidelines are well understood by overseas offices and MC Group companies, while eliciting the understanding and cooperation of suppliers on a global basis. OECD Countries China 19 97 Asia Latin America 29 Africa 11 37 Supply Chain Field Surveys CSR Action Guidelines for Supply Chains Mitsubishi Corporation conducts various trading models and must manage supply chains according to the characteristics of each industry therein. In order to communicate Mitsubishi Corporation’s basic stance regarding supply chains, the company has established the following “CSR Action Guidelines for Supply Chains” which it expects all suppliers to embrace, understand and abide by: 1. Forced Labor Suppliers shall employ all employees of their own free will with no employee being subject to forced or bonded labor. 2. Child Labor Suppliers shall not employ people under the minimum legal working age of the country in question. 3. Safe and Healthy Working Environments Suppliers shall work to provide employees with safe and healthy working environments. 4. Freedom of Association Suppliers shall respect the right of employees to associate freely and for these groups to negotiate working environments, wages and other matters with employers. 5. Discrimination Suppliers shall strive to ensure equal opportunities in the work place and shall not engage in discrimination with regard to recruitment and employment practices. 12 Feature 1 6. Abuse and Harassment Suppliers shall respect employees’ human rights and must not tolerate abuse or any form of harassment. 7. Working Hours Suppliers shall ensure that employees’ working hours and use of leave entitlements are appropriately monitored so as not to infringe upon any statutory regulations. 8. Suitable Remuneration Suppliers shall pay employees at least the statutory minimum wage and shall not unreasonably reduce wages. 9. Consideration for Environmental Issues Suppliers shall work to protect the environment and will consider the environmental impact of their business activities on local communities and ecosystems. 10. Information Disclosure Suppliers shall disclose information with respect to the aforementioned matters in a timely and appropriate manner. Zhangjiagang Guotai United Creation Garments (Zhangjiagang, Jiangsu) Nantong Sunrise Industrial and Commercial (Nantong, Jiangsu) This company is a member of the Guotai Group, which is made up of 16 operating companies and 45 factories. The company has approximately 400 employees with an average age of 25, and produces mainly knitwear such as sweaters and dresses. In 2004, Zhangjiagang Guotai United Creation Garments drafted CSR regulations pertaining to various key areas like legal compliance, labor conditions, prohibition of child labor and the environment and regularly reviews these regulations. In 2005, it obtained CoC (Chain of Custody) supplier certification regarding its CSR from customers in Japan, the U.S. and Europe. When hiring, it checks the government-issued identity cards of prospective employees to ensure they are of legal working age. In terms of environmental performance, the company has identified manufacturing waste ─ wastewater from washing, textile waste such as cotton waste as well as packaging waste like bags and boxes ─ as the main source of its environmental impact. The company properly treats waste and has installed wastewater treatment equipment to prevent pollution. When the company was established in 1997, it was initially engaged only in trading. In 2003, however, it built a factory and began producing mainly casual wear for the Japanese market. Today, it employs around 600 people, with an average age of 30 years old. In 2006, the company obtained ISO 9001 and ISO 14001 certification as well as CoC certification from major customers and also undergoes several audits each year. All employees belong to a labor union, which negotiates changes in working hours and other terms and conditions of employment with the company. Nantong Sunrise Industrial and Commercial regards prevention as of paramount importance in terms of safety management and carries out maintenance of steam irons and other equipment and facilities twice a month. Wires inside the factory have also been laid with safety in mind. Wastewater and energy use (electricity, coal, etc.) were identified as its main sources of environmental impacts. The company not only measures these impacts but also works to lessen them by implementing various steps like cutting energy use through employing energy-saving lamps in factories. Mitsubishi Corporation Sustainability Report 2009 13 Feature 1 Supporting Regional Development Globally ──── MC’s Regional Contributions MC’s Global Network Accurately Assessing the Current State and Needs of Regional Communities, Promoting Business and International Contribution Activities In April 2008, MC launched a medium-term management plan called INNOVATION 2009 that has as one of its main aims the acceleration of efforts to tap into global growth. Under this plan, MC began consolidating its strategic planning activities, and appointed a Corporate Global Strategy Officer with responsibility for worldwide strategic planning. This new strategic planning structure was needed in order to respond and adapt to the global business environment that has been in constant flux since the onset of the financial crisis in September 2008. This move is based on the recognition that it is increasingly important to further assess and understand various local issues when developing business from one region to the next, and to be more strategic in how we make business decisions and how we fulfill our overall commitment to the communities where we operate. As a global business enterprise, MC must think of how it can support the countries and regions where it conducts business over the medium and long terms. MC’s business units both in Tokyo and around the world are working in a coordinated and cohesive manner to integrate business strategy and philanthropy in order to more effectively use our core competencies to help solve various local issues. Moving forward, MC will leverage its extensive global network to identify social trends and understand the needs of local communities where we operate, and we will strengthen our CSR policies and philanthropic programs accordingly to make them more effective. (As of May 1, 2009) ● Office ■ Overseas Regional Subsidiary (Main and branch offices) Offices: In Japan: 34, Overseas: 200 (In addition, there were 34 Project Offices) Europe & CIS Japan Middle East Asia & Oceania Latin America Africa Europe & CIS, Middle East & Africa Europe & CIS In Western Europe, MC is maintaining and strengthening its core businesses in metals, machinery, chemicals, living essentials and other areas. In Central & Eastern Europe, Turkey, Russia, the Ukraine and elsewhere, meanwhile, we are working hard to discover and develop new projects. Key fields we are concentrating on include solar, wind and other renewable energy, electric vehicles and next-generation batteries. Furthermore, in addition to social contribution activities carried out by each office to contribute to the region, in 1992 MC established the Mitsubishi Corporation Fund for Europe and Africa (MCFEA). This fund is conducting activities to promote environmental conservation, education and research into the environment, and poverty alleviation. In terms of activities for 2009, MCFEA will provide a grant for two years to support a forest conservation project in Tanzania, and support the Wildfowl and Wetlands Trust (WWT) for one year as part of a major initiative to save the Madagascar Pochard, the world’s rarest species of duck. For details of these and other activities of MCFEA, please visit the following website: Web: 14 Supporting the Permanent Galleries for Japanese Culture at the British Museum (UK) The British Museum and MC signed a 10-year sponsorship agreement in January 2008 under which MC will be the sole sponsor of the permanent galleries dedicated to Japanese culture *1 in the Museum. The galleries will feature objects from the Museum’s extensive Japanese collection, the most comprehensive in Europe. Moreover, for a two-year period from September 2008, Mitsubishi Corporation (UK) Plc. will provide support for a special project manager. This manager will promote various programs related to the permanent galleries and special Japan exhibits, including holding public seminars, academic symposiums, artists’ exhibitions and workshops for children. *1: The Mitsubishi Corporation Japanese Galleries Africa In addition to engaging in commercial transactions in automobiles, general merchandise, foods, chemical raw materials and other products, we are active in infrastructure development, which will be essential to regional growth. We are also focusing on projects that may come to fruition in the future with an eye on securing metals and energy resources. Given the extent of the need for sustainable economic development in Africa, we are also promoting CSR and environmental activities as important aspects of our business strategy in this region. Besides developing and trading energy resources, we continue to engage in petrochemical, chemical fertilizer and other businesses. With countries in the Middle East introducing new energies as part of their national strategies, we also see opportunities to contribute to regional development in the infrastructure and environmental businesses. Youth Center Extends a Helping Hand to Disadvantaged Children North America China Middle East MC and leading Egyptian conglomerate Orascom Telecom have teamed up to support a program for helping street children. A signing ceremony for the project was held in September 2008. In the fiscal year ended March 31, 2009, MC donated ¥12 million to help build a youth center and fund educational programs in Egypt, where the issue of street children has become a major social problem. Built alongside the Suez Canal, the new youth center offers one-on-one counseling and brings in specialist social workers to participate in educational programs. Regional Contribution in Mozambique MC is a shareholder in Mozal S.A.R.L (MOZAL) *2, an aluminum smelting company in Mozambique. MOZAL is devoted to giving back to the local community and every year US$5 million from business profits is contributed to Mozal Community Development Trust (MCDT). MCDT supports small businesses, helps build social infrastructure and provides assistance in various areas such as public health, education, sports and cultural initiatives. The education field is a special area of focus and so far MCDT has built 10 elementary schools and 1 junior high school. In December 2008, construction of a schoolhouse for an industrial high school was completed. Activities are continuing with the goal of eventually building industrial high schools in all 10 of Mozambique’s provinces. * 2: MOZAL’s shareholders are MC, global resources major BHP Billiton Ltd., the government of Mozambique, and the Industrial Development Corporation of South Africa Ltd. www.mcfea.org Feature 1 Mitsubishi Corporation Sustainability Report 2009 15 Feature 1 Supporting Regional Development Globally ── MC’s Regional Contributions China Europe & CIS Japan North America China Middle East Japan Asia & Oceania Latin America Africa Americas North America The U.S. has slipped into recession due to the financial crisis that began in the fall of 2008. However, the Obama administration has moved to rebuild the country, in part, by promoting a green economic development agenda, with increased federal government support for the development of renewable energy and other businesses that address pressing environmental concerns. While establishing a firmer footing in existing businesses, we will focus on developing new business in anticipation of changes that are being implemented to revive and reshape U.S. industry going forward. In January 2008, Mitsubishi International Corporation (MIC) established the position of Chief Sustainability Officer (CSO) for North America, reflecting MC’s overall commitment to conducting business in a more socially and environmentally sustainable manner. Among the activities in the fiscal year ended March 31, 2009, environmental and CSR surveys and SWOT analyses were conducted in all divisions and an internal CSR education program was initiated. In December 2008, MIC also announced a CSR vision for North America. In April 2009, Koichi Komatsu was appointed president of MIC and also took over as CSO. The following June, MIC ran its first-ever CSR education program for senior executives in North America. In addition, employees continue to actively take part in volunteer activities and through Mitsubishi Corporation Foundation for the Americas (MCFA), MIC is supporting environmental conservation programs on an ongoing basis. For more information about the activities of MCFA, please go to the following website: Web: 16 Feature 1 www.mcfamericas.org The strength of MC’s branches and branch offices in Japan is that they operate on the cutting-edge of business. They leverage this strength to detect developments in regional industries and customers in response to changes in economic conditions, and based on this information work with MC Group companies throughout Japan to better serve customers. In this way, they are strengthening core businesses as well as developing promising fields. International Student Scholarships Support for a Seasonal Exhibition at The New York Botanical Garden ─ Kiku: the Art of the Japanese Chrysanthemum ─ MIC was a presenting sponsor for two years of a seasonal exhibition displaying the art and beauty of Japanese chrysanthemums at The New York Botanical Garden. This exhibition showcased traditional styles of growing the Japanese chrysanthemum, while also highlighting the artistry of traditional Japanese gardens and bonsai techniques. MIC was instrumental in drumming up support to make the exhibition a success, including soliciting donations from the Japanese business community in New York. Latin America Latin America is blessed with an abundance of metal and energy resources, as well as food resources, and its importance as a source of vital natural resources has been growing. Besides continuing to discover new business opportunities in energy and mineral resource development, we plan to focus on new energy, environment and water-related businesses as well as strategic CSR activities that will help facilitate sustainable development in the region. Since 1991, MC has provided scholarships to international students attending Japanese universities (undergraduate and graduate school levels). In the fiscal year ended March 31, 2009, MC provided support to 105 international students. Furthermore, during the year, 18 schools in 12 countries were added to the MC International Scholarship program, which now totals 29 schools in 22 countries. In addition, MC held informal get-togethers with the students at its headquarters and branches in the Kansai, Chubu and Kyushu areas. Tree-Planting Project in Guizhou, China The China Green Foundation, one of China’s largest NGOs, aims to contribute to environmental conservation through support for afforestation activities on a national level to prevent desertification and soil erosion. It is also contributing to economic development in impoverished areas through the harvesting of fruit trees and other activities. MC donates to projects organized by this foundation. At the end of February 2008, 40 MC staff members from 12 offices across China, including Beijing, Shanghai and Guangzhou, gathered to take part in a greenification project in Kaili, Guizhou, one of the foundation’s projects. This was a rare opportunity for the staff members to meet each other, and work together to plant the trees. It was also an opportunity to talk with local government authorities and local residents. Asia & Oceania Despite the difficult economic environment, we are working to promote infrastructure projects, as well as businesses that target domestic demand in the region, which are relatively strong and still growing. At the same time, we continue to develop the resource and energy fields and are strengthening our hand in new fields such as environment, new energy and agriculture in order to lay down the foundations for future growth. Ongoing efforts to bolster partnerships with important customers are another aspect of our strategy in the region as we seek to develop international contribution activities that align with regional needs. Supporting Agricultural Development in India Assisting Coffee Plantations in Colombia As an environmental and CSR activity in the field of agriculture, since 2003 MC has been supporting small coffee bean growers in Colombia in a government-led project intended to promote safe and sustainable livelihoods. MC is providing financial support totaling US$1 million over 10 years to the joint business project involving the office of the Colombian president, the National Federation of Coffee Growers of Colombia (FNC) and regional communities. The funds will MC is expanding transactions in growing domestic markets in China, exporting competitive Chinese-made products and engaging in other activities in China in cooperation with leading local companies. We are aiming to create businesses in a variety of fields, such as infrastructure, a focus of the Chinese government, as well as medicine, education, the environment, energy conservation and the service industry, to contribute to China’s further progress. be allocated to 2,880 small farming families in 10 cities in 7 provinces for three purposes: increasing quality and productivity; farmer education and training; and environmental protection. In November 2008, MC began a program through the MS Swaminathan Research Foundation*3 to contribute to the development of agriculture in India. Under the program, which aims to eradicate poverty, improve the living standards of farmers and increase the productivity of agriculture, MC will contribute US$150,000 a year over 5 years to the Foundation. In the fiscal year ended March 31, 2009, MC supported a training development program for ethnic minorities in the Koraput district of Orissa in the eastern part of India, where agriculture is a way of life. Activities for future fiscal years will be decided each year in consultation with the Foundation. *3: A foundation established in New Delhi in 1988 by Dr. MS Swaminathan, who is referred to as the father of India’s “green revolution.” Mitsubishi Corporation Sustainability Report 2009 17