Slide 1: ESG Briefing
ESG Briefing August 11, 2021 Sojitz Corporation Caution regarding Forward-looking Statements This document contains forward-looking statements based on information available to the company at the time of disclosure and certain assumptions that management believes to be reasonable. Actual results may
Slide 2: Vision of Sojitz and Direction
Vision of Sojitz and Direction Corporate Statement： The Sojitz Group creates value and prosperity by connecting the world with a spirit of integrity. Sustainability management for a world with prosperity Value for Value for Sojitz Society Year 2030 Vision of Sojitz A general trading company that con
Slide 3: MTP2023 – Financial Targets
MTP2023 – Financial Targets Increasing shareholders value (three years avg.) Growth and financial discipline Investments ROE 10% or above ¥330.0bn （including ¥30.0bn of non-financial investment） Profit for the year Positive core cash flow over MTP2020 through MTP2023 approx. ¥65.0bn cumulative total
Slide 4: Targeting PBR 1.0x or above
Targeting PBR 1.0x or above Improvement of communications and disclosures as an initiatives to support sustainable growth Expand Equity Spread and non-financial efforts and disclosures in the aim to improve PBR, which is a corporate value evaluation index from the market Continuous High quality Redu
Slide 5: Growth Strategy for Creating Value
Growth Strategy for Creating Value Corporate Statement：The Sojitz Group creates value and prosperity by connecting the world with a spirit of integrity. Sustainability management for the realization of a prosperous future Value for Sojitz Value for Society Sojitz’s vision for 2030： A general trading
Slide 6: Focus areas
Focus areas Set focus area as follows and concentrate resources (human resources/ funds) Conduct organizational reforms to construct structure Growth of Environment Population growth and Essential infrastructure services developing countries issues aging population ⚫ Demand for infrastructure and es
Slide 7: Organizational Reforms: 7 Divisions
Organizational Reforms ◼ New Growth fields × Revision of business division structure to facilitate future growth initiatives Infrastructure & Healthcare Division Identification of infrastructure and medicine/healthcare businesses addressing social issues as growth fields and focus areas Metals, Mine
Slide 8: Sustainability Challenge
Sustainability Challenge Sojitz Group Statement ”Sustainability Challenge” The Sojitz Group creates value and Long-Term vision for 2050 prosperity by connecting the world with a spirit of integrity. Sojitz Value Creation Model “Two Types of Values” Two Types of Values Value for Sojitz Value for soci
Slide 9: Underlying Technology Trends and Sojitz’s Position
Underlying Technology Trends and Sojitz’s Position Anticipating and Adapting to Technology Trends 2020 2030 2040 2050 Technology & Social Trends Sojitz's Position ◆ Governments expected to implement ◆ Reduce SCOPE1/2 emissions from 1 1 policies to promote expansion of existing businesses by 60% by 2
Slide 10: Contribution to a low-carbon society
Roadmap for Carbon Emissions Reduce emissions 60% by 2030; achieve Net Zero emissions by 2050 *1 Scope 1 + 2 For Scope 2: Net-zero emissions by 2030 *2 *Coal-fired power generation : No current projects nor future projects planned Existing businesses Thermal coal interests : Reduce interests to half
Slide 11: CO2 Reduction Pathway
CO2 Reduction Pathway ＜Existing Businesses＞ ◼ Initially focus on electricity (SCOPE2) where clear alternatives exist, i.e. renewables ◼ Review businesses from perspective of decarbonization etc. against obsolescence risks with view to possibility of exiting ◼ For SCOPE1, priority on switching away f
Slide 12: Case of Business for Sustainability since FY2018
Case of Business for Sustainability since FY2018 ・Offshore Wind Power Projects (Taiwan) ・Biomass Power Plant Project (Japan) ・Capital and Business Alliance with Looop Inc (Japan) ・Starting Carbon Recycling Research and Development Project (Japan) Carbon Neutral ・Awarded Feasibility Study under NEDO
Slide 13: Image of Asset Transformation
Image of Asset Transformation Increasing “Green” Portion of Assets Zero Thermal Coal Interests by 2030 SCOPE1/2 temporary increase to be offset by long- Zero Coking Coal Interests by 2050 term SCOPE4 accumulation Reduction in CO2 Equivalents Global Seaborne Coal Trade (1.5℃ scenario) Sojitz’s Therma
Slide 14: Cycle to Promote Sustainability
Cycle to Promote Sustainability Drives Deeper Levels of Discussion within and outside the Group Report Executive Board of Team Advise Directors Annual Stakeholder Dialogue FY2018 FY2019 FY2020 Study Session for Division Discussion on Decarbonization COOs on Decarbonization Long-term Vision for 2050
Slide 15: Respect for Human Rights, Including Supply Chains <MTP2020>
Respect for Human Rights, Including Supply Chains <MTP2020＞ ◼ Long-term vision “Sustainability Challenge” focuses not only on decarbonization but also on respect for human rights across supply chains. ◼ Previous MTP(2017-2020) positioned as preparatory period; High risk business areas identified ref
Slide 16: Respect for Human Rights, Including Supply Chains <MTP2023>
Respect for Human Rights, Including Supply Chains <MTP2023> Measures during MTP2023 (FY2021-2023) 1) Ensure full alignment and understanding of issues contained in Sojitz Group Human Rights Policy across group companies ① Obtain written consent from Group operating companies (97％ complete) ② Sustain
Slide 17: Transformation of Diversity into Competitiveness
Transformation of Diversity into Competitiveness ◼ Sojitz established three pillars for human resource strategies to create the “two types of values” by assembling a team of diverse, autonomous individuals and produce human resources that can transform changes into opportunities and generate value O
Slide 18: KPIs for Human Resources (1)
KPIs for Human Resources (1) ●Quantitative effectiveness measurement of understanding/penetration of HR measures against KPIs; Data-driven approach to human resources development ●KPI-informed review of measures as necessary in light of external environment and progress made Dynamic KPIs: can KPIs f
Slide 19: KPIs for Human Resources (2)
KPIs for Human Resources(2) Introduce ”Dynamic KPIs” for adaptive response to Measures KPI change in environment and progress made Tangible Diverse and Year 2030 Growth Feeling Feeling Own Challenge- Autonomous A General own Growth/ Taking Index Individuals Trading Growth Contribution Challenge-Taki
Slide 20: Digital Transformation Human Resources
Digital Transformation Human Resources • Digital technologies essential to creating value in response to customer and social needs and thus to be recognized and used as a shared tool by all employees. Systematically Organize DX Human Resources DX Human Resources are defined as those capable of lever
Slide 21: Providing Human Resources System
Providing Human Resources System ◼ As the first step to become a trading company that constantly fosters new businesses and human resources until 2030, provide a system where each employee can take the lead and select their workstyles by providing options for diverse work styles and career paths ◼ E
Slide 22: Deeper-level of Governance (1)
Deeper-level of Governance（1） Ratio of Outside Directors to 50% Revision of Ratio of Women Executives to 23% Officer Remuneration Systems Audit & Supervisory Board ✓ Increase in ratio of performance-linked Board of Directors (variable) remuneration ✓ Revision of remuneration to link to degree of acc
Slide 23: Deeper-level of Governance (2)
Deeper-level of Governance（2） Primary areas of expertise, career background, and skills of each officer of Sojitz’s Board of Directors and Audit & Supervisory Board 23 Copyright © Sojitz Corporation 2021
Slide 24: Copyright © Sojitz Corporation 2021
24 Copyright © Sojitz Corporation 2021