Environment

Information Disclosure based on TCFD Recommendations

「気候関連財務情報開示タスクフォース(TCFD)」提言に関する取り組みについて

Overall

Initiatives on TCFD Recommendations

Mitsui O.S.K. Lines, Ltd. (MOL) recognizes climate change as one of its highest priority management issues, and in November 2018, agreed with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
Following this agreement, MOL has moved ahead with initiatives required by TCFD, and carefully reviewed the methods of disclosing details. MOL gave more concrete form to the impact of risks/opportunities related to climate change on our businesses during fiscal year (FY)2020. In FY2021, we will add a new "1.5oC scenario" to our multiple scenarios, including the well- below 2oC scenario, which we had previously studied, as we move to enhance our response to climate change.

Status of MOL's initiatives on TCFD Recommendations

Item Main disclosure items
Governance
  • Environmental management organizational structure
    • Report to/Deliberate in Environment & Sustainability Committee (Involvement in management)
    • Establish Environment & Sustainability Strategy Division (Strengthening enforcement)
    • Proactive initiatives with eye to integration into Rolling Plan (Apply to business strategies and link to financial plan)
Strategy
  • Risks/opportunities having an impact on MOL
  • Examples of measures on risks/opportunities having an impact on MOL
Risk management
  • Selection/assessment/management processes of climate change risks/opportunities
Metrics and targets
  • GHG emissions of Scope 1, 2, 3 (refer to "Environmental Data")
  • Achieve net zero GHG emissions by 2050 (Refer to “MOL Group Environmental Vision 2.1”)
株式会社 商船三井 環境・サステナビリティ戦略部 サステナビリティ統括チーム, 株式会社 商船三井 経営企画部 総合企画チーム, 株式会社 商船三井 コーポレートコミュニケーション部 コミュニケーション企画チーム, 株式会社 商船三井 MBS コミュニケーションサポート部 MBS コミュニケーションサポート部, 人事部, 株式会社 商船三井 海上安全部 海務チーム, 株式会社 商船三井 海上安全部 安全推進チーム, 株式会社 商船三井 海上安全部 船員政策チーム, 株式会社 商船三井 海上安全部 船員教育・訓練チーム, 株式会社 商船三井 海上安全部 安全運航支援センター, 株式会社 商船三井 技術部 技術イノベーションチーム, 株式会社 商船三井 スマートシッピング推進部 スマートシップ戦略チーム, 商船三井システムズ株式会社 ICT 戦略推進部 ICT 戦略推進第一チーム

ガバナンス


Governance

Strengthening environmental management organizational structure

On April 1, 2019, MOL established the "Environmental Management Committee" as a subordinate committee of the Executive Committee. The committee, renamed the "Environment & Sustainability Committee" effective April 1, 2021, meets at least once a year to deliberate and determine basic policies and other climate-related matters.
On April 1, 2021, we also newly established the Environment & Sustainability Strategy Division to execute initiatives on the group environmental strategies and sustainability issues in an integrated manner.
We will integrate initiatives on TCFD into "Rolling Plan" (our management plan) to integrate the impact of climate changes into our business strategies, and move forward with initiatives to link those strategies to our financial plan.

株式会社 商船三井 環境・サステナビリティ戦略部 サステナビリティ統括チーム, 株式会社 商船三井 経営企画部 総合企画チーム, 株式会社 商船三井 コーポレートコミュニケーション部 コミュニケーション企画チーム, 株式会社 商船三井 MBS コミュニケーションサポート部 MBS コミュニケーションサポート部, 人事部, 株式会社 商船三井 海上安全部 海務チーム, 株式会社 商船三井 海上安全部 安全推進チーム, 株式会社 商船三井 海上安全部 船員政策チーム, 株式会社 商船三井 海上安全部 船員教育・訓練チーム, 株式会社 商船三井 海上安全部 安全運航支援センター, 株式会社 商船三井 技術部 技術イノベーションチーム, 株式会社 商船三井 スマートシッピング推進部 スマートシップ戦略チーム, 商船三井システムズ株式会社 ICT 戦略推進部 ICT 戦略推進第一チーム

Strategy


Strategy

Climate change risks/opportunities and impact on the group

MOL strives to grasp various risks and opportunities expected to result from climate change. In FY2020, we exchanged opinions with business divisions in a unified manner to embody not only transition risks caused by climate change, but also the impact we face when physical risks materialize.
In regard to climate change risks/opportunities, we also determine risks and monitor the status of our response at the Environment & Sustainability Committee to identify the impact on our businesses from a long-term viewpoint.

Main assumed risks

Transition risks Policy and legal risks Reinforcement of EEDI/EEXI regulations
  • Increase capital investment
Market risks Changes in energy mix
  • Reduce transport volume of carbon-related cargo, and increase associated business risks
Progress of electrification
  • Reduce crude oil transport volume associated with reduced demand for gasoline
Physical risks Acute risks Flood/typhoon
  • Temporary obstacles to transport due to divided supply chains
Drought
  • Change transport routes associated with changes in grain production areas

Main assumed opportunities

Opportunities Products/Services Introduction of alternative fuel-powered vessels
  • Increased demand from cargo owners seeking lower-carbon supply chains
Markets Fluctuation of ocean transport demand
  • Increase transport volume of decarbonization-related cargoes such as iron scraps
Progress of electrification
  • Increase transport volume of raw materials used for EVs and parts/components

Climate change risks/opportunities that have an impact on the group, and examples of measures

MOL has clearly defined the impact stemming from climate change-related risks; among them, our business divisions each create a long-term outlook for fluctuations in cargo trades based on the impact of climate change, and targeting FY2040, quantitatively assess the impact on our businesses based on the "well-below 2oC scenario" and the "3oC scenario."
We also plan to carry forward various measures as outlined below, demonstrating our resilience even in case of either of these scenarios.

Climate change risks/ opportunities Impact on MOL businesses Examples of measures
Products that will be affected Overview
Changes in cargo trade Overall
  • In the 3oC scenario, we expect firm growth of cargo trade overall except for some cargoes, and an increase in +10% in FY2040 from FY2019.
  • In the well-below 2oC scenario, while seaborne trade of LNG and grain is expected to remain firm, we expect a decrease in coal and oil trade, overall -1% in FY2040 from FY2019.
  • It tends to clarify the unevenness of growth fields and non-growth fields cargo by cargo due to higher levels of global warning. We will adjust our portfolio strategy to enhance demand forecasting and ensure accurate resource allocation.
Changes in energy mix Crude oil
  • In the well-below 2°C scenario, transport volume will decrease in step with a decrease in demand for oil, although will vary according to geographical location.
  • Adjust regional strategy to project demand increases and focus by geographical location and concentrate resource allocation on locations where growth is expected.
Coal
  • Long-term contracts, which are currently the mainstream, will be replaced with shorter-term ones as transport volume decreases, resulting in an increase in business risk.
  • Shift from the current specialized ship types to general-purpose vessels to accommodate changes in commercial distribution.
Changes in consumer tastes Grain
  • Change in demand—Demand for soybeans, which are a key raw material in plant-based meat products, will increase in step with wider acceptance of these products, and demand for livestock raised for conventional meat will decrease. These changes will affect transport volume and transport routes.
  • With an eye on the popularization of plant-based meat, establish appropriate fleet planning, after projecting main production areas/demand areas.
Introduction of alternative fuel-powered vessels Overall
  • Contribute to reduction of environmental expenditures (carbon tax), while fuel cost and ship construction cost are expected to increase compared to current vessels in service.
  • Introduce alternative fuel-powered vessels in a proactive manner, toward net zero in 2050, through the use of LNG, ammonia/hydrogen, and bio fuels.
株式会社 商船三井 環境・サステナビリティ戦略部 サステナビリティ統括チーム, 株式会社 商船三井 経営企画部 総合企画チーム, 株式会社 商船三井 コーポレートコミュニケーション部 コミュニケーション企画チーム, 株式会社 商船三井 MBS コミュニケーションサポート部 MBS コミュニケーションサポート部, 人事部, 株式会社 商船三井 海上安全部 海務チーム, 株式会社 商船三井 海上安全部 安全推進チーム, 株式会社 商船三井 海上安全部 船員政策チーム, 株式会社 商船三井 海上安全部 船員教育・訓練チーム, 株式会社 商船三井 海上安全部 安全運航支援センター, 株式会社 商船三井 技術部 技術イノベーションチーム, 株式会社 商船三井 スマートシッピング推進部 スマートシップ戦略チーム, 商船三井システムズ株式会社 ICT 戦略推進部 ICT 戦略推進第一チーム

リスク管理 指標と目標


Risk management, Metrics and Targets

Initiatives on risk management

Risks of not only interest rate fluctuations, but also bunker price fluctuations related to climate change, ship operation, and various factors related to natural disasters may have an impact on our businesses and performance. Please refer to the following for details.

Link:Risk Management

Initiatives on metrics and targets

MOL sets ambitious targets in the MOL Group Environmental Vision 2.1, including: "Deploy net zero emissions ocean-going vessels in the 2020s," "Reduce GHG emissions intensity by approximately 45% by 2035 (versus 2019), and "With the concerted effort throughout the Group, achieve net zero GHG emissions by 2050."
We also announced greenhouse gas (GHG) emissions in the range of Scope 1, 2 (direct/indirect carbon dioxide (CO2) emissions from sources that are owned or controlled by the company) and Scope 3 (CO2 emissions from business activities in supply chains). These are examples of how we disclose the status of our GHG reduction efforts in a proactive manner.

Link:Environmental data
MOL Group Environmental Vision 2.1

株式会社 商船三井 環境・サステナビリティ戦略部 サステナビリティ統括チーム, 株式会社 商船三井 経営企画部 総合企画チーム, 株式会社 商船三井 コーポレートコミュニケーション部 コミュニケーション企画チーム, 株式会社 商船三井 MBS コミュニケーションサポート部 MBS コミュニケーションサポート部, 人事部, 株式会社 商船三井 海上安全部 海務チーム, 株式会社 商船三井 海上安全部 安全推進チーム, 株式会社 商船三井 海上安全部 船員政策チーム, 株式会社 商船三井 海上安全部 船員教育・訓練チーム, 株式会社 商船三井 海上安全部 安全運航支援センター, 株式会社 商船三井 技術部 技術イノベーションチーム, 株式会社 商船三井 スマートシッピング推進部 スマートシップ戦略チーム, 商船三井システムズ株式会社 ICT 戦略推進部 ICT 戦略推進第一チーム
Environment
Environmental Policy Statement

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MOL Group Environmental Vision 2.1

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Promoting Environmental and Emission Free Businesses

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Promoting Environmental and Emission Free Businesses

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Promoting Environmental and Emission Free Businesses

Wind Challenger

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Promoting Environmental and Emission Free Businesses

LNG-fueled Tugboat

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Promoting Environmental and Emission Free Businesses

Long-term Charter Deals for LNG Bunkering Vessels with Total, Pavilion Gas

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Promoting Environmental and Emission Free Businesses

Teaming up with Karpowership in LNG-to-Powership Project

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Promoting Environmental and Emission Free Businesses

New Partnership Looks toward Zero-emission Fully Electric Vessels

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Promoting Environmental and Emission Free Businesses

Upgraded Version of PBCF

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Ocean Shipping’s Impact on the Environment

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Organizational Structure

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Internal Carbon Pricing (ICP) System

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Organizational Structure

Environmental Management System

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Organizational Structure

The MOL Group Environmental Target System

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Organizational Structure

Group Environmental Audits

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Information Disclosure based on TCFD Recommendations

「気候関連財務情報開示タスクフォース(TCFD)」提言に関する取り組みについて

Overall Initiatives on TCFD Recommendations Mitsui O.S.K. Lines, Ltd....

Environment
Information Disclosure based on TCFD Recommendations

ガバナンス

Governance Strengthening environmental management organizational struc...

Environment
Information Disclosure based on TCFD Recommendations

Strategy

Strategy Climate change risks/opportunities and impact on the group ...

Environment
Information Disclosure based on TCFD Recommendations

リスク管理 指標と目標

Risk management, Metrics and Targets Initiatives on risk management ...

Environment
Regulations

Regulations

Various environmental regulation Active action against Environmental r...

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Regulations

Various environmental regulation Ship-related issues should not be addre...

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Regulations

Active action against Environmental regulation Viewing its response to e...

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Prevention of Global Warming

Prevention of Global Warming

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Prevention of Global Warming

Next-generation Car Carrier FLEXIE

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Prevention of Global Warming

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Prevention of Global Warming

Low-friction hull paint

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Prevention of Global Warming

Vessel equipped with high-efficiency waste heat energy recovery system

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Prevention of Global Warming

A Commitment to ECO SAILING

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Prevention of Global Warming

Improving Transport Efficiency and Increasing Fuel Efficiency

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Prevention of Global Warming

MOL Supports Initiatives on Prevention of Global Warming

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Prevention of Global Warming

Working Group for Zero Emission Alternative Fuels

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Prevention of Air Pollution

Prevention of Air Pollution

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Prevention of Air Pollution

NOx (nitrogen oxide) Emission Countermeasures

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Prevention of Air Pollution

SOx (sulfur oxide) Emission Countermeasures

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Prevention of Air Pollution

Methanol-Fueled Vessels

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Prevention of Air Pollution

Soot/Smoke and Dust Countermeasures

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Prevention of Air Pollution

Research Project of LNG-fueled Capesize Bulker

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Conservation of Ocean Environment

Conservation of Ocean Environment

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Conservation of Ocean Environment

Recycling of Lashing Belts Used in Car Carriers

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Conservation of Ocean Environment

Approaches to Marine Environmental Protection

Approaches to Marine Environmental Protection World-first to Adopt "NSaf...

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Conservation of Ocean Environment

Ship Recycling Issues

Ship Recycling Issues Aged vessels need to be scrapped from the viewpoin...

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Conservation of Ocean Environment

Stepping up Initiatives on Marine Plastic Waste

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Conservation of Biodiversity

Conservation of Biodiversity

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Conservation of Biodiversity

Ballast Water Issue

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Conservation of Biodiversity

Ballast Water

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Conservation of Biodiversity

Viable Organism Analyzer for Ballast Water

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Conservation of Biodiversity

Organisms on Vessels

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Conservation of Biodiversity

Participation in "Nippon Keidanren's Declaration of Biodiversity" as a Promotion Partner

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Group Companies’ Initiatives

Group Companies' Initiatives

Modal Shift Promotion Initiatives to Reduce Environmental Load at Cont...

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Group Companies’ Initiatives

Modal Shift Promotion

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Group Companies’ Initiatives

Initiatives to Reduce Environmental Load at Container Terminals

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Group Companies’ Initiatives

Environmentally-Friendly Buildings

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Group Companies’ Initiatives

Efforts to Reduce the Environmental Impact on Cruise Ships

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Environmental Activities Results

Environmental Activities Results

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Environmental Data

Environmental Data

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Environmental Data

Actively Disclose Environmental Data

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Environmental Data

MOL Group's Environmental Data (As of March 31, 2021)

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Environmental Data

Third-party Verification of CO2 Emission Data

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Environment

Environment

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