Integrated Report 2019
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Mitsui & Co., Ltd. Integrated Report 2019 Report Integrated Ltd. Mitsui & Co., MITSUI & CO., LTD. Integrated Report 2019 1×1×1=10,000 Mitsui’s Equation for Value Creation Mitsui has adopted shared goals with its business partners and clients, local communities, and NPOs and NGOs. Guided by these goals, we are leveraging our strengths in unison with the strengths of these parties and complementing each other as we work to resolve the issues facing industries and society through our businesses. These efforts represent the Group’s business approach, which has been passed down since our establishment, as well as an indispensable equation for both Mitsui and society as a whole to be sustainable in the generations to come. Mitsui possesses a diverse range of talent that can be considered “pros in specific business domains, regions, products, and fields” in addition to a powerful business network. This is precisely what allows us to create unique synergies and new businesses by combining our functional, product, and regional expertise. During this process, we often create something from nothing, in numerical terms, “1” from “0,” and by multiplying that “1” with a series of “1’s” from collaborating parties, we can achieve “10,000”—an exponential outcome. In this way, we deliver a significant impact to industries, society, and the entire world, which far exceeds that of Mitsui acting on its own. Corporate Management Philosophy Mission Strive to contribute to the creation of a future where the aspirations of the people can be fulfilled. Vision Aim to become a global business enabler that can meet the needs of our customers throughout the world. Values • Build trust with fairness and humility. • Aspire to set high standards and to contribute to society. • Embrace the challenge of continuous innovation. • Foster a culture of open-mindedness. • Strive to develop others and oneself to achieve full potential. Mitsui & Co. Group Conduct Guidelines With Integrity Five Key Principles We will comply with laws and regulations, and act to the highest ethical standards. 01 We will respect human rights and never engage in discrimination of any kind. We will respect the individuality and diversity of every employee, and foster a 02 culture of open-mindedness. We will engage in fair business practices, and respond to the trust placed in us by 03 society with good faith and sincerity. We will place value on the global environment, and contribute to the realization of 04 prosperity and a high quality of life for society. We will speak up with courage when we have doubts or feel that something is 05 wrong, for the good of the company. MITSUI & CO., LTD. Integrated Report 2019 003 Publication of an Integrated Report akashi Masuda, the first president of the former Mitsui & Co.,* stated, “Let T not short-term gains tempt your mind, seek only enduring prosperity by embracing grand aspirations.” These words represent the foundation of the Mitsui’s business activities. Mitsui acknowledges companies can only be sustain- able if the societies they operate in are sustainable. We want to fulfill our social responsibilities by the sustainable growth of our own company, in order to con- tribute to the realization of a sustainable society through our business activities. In 2015, the United Nations adopted the Sustainable Development Goals (SDGs), which lay out 17 goals and 169 targets to end poverty, protect the planet, and ensure prosperity for all by 2030. The SDGs clearly underline priority issues on a global basis and the ideal visions for the future. Meanwhile, the megatrends with the potential to impact our business activities are rapidly changing. In response to this, in April 2019 we revised Mitsui’s Materiality, which was originally defined in 2015 as important management issues for our sustain- able growth ( please see pages 51–54). As a trading company, we possess various functions and develop a broad range of businesses in diverse countries and regions around the world. As our Materiality has strong association with the SDGs, we believe that we can make wide-ranging contributions to society through our businesses. Our diverse human resources leverage our comprehensive strengths and global network and continuously pursue industrial solutions to social issues. We consider it important to send a clearer message from a long-term and comprehensive perspective about the unchanging approach of Mitsui’s man- agement and each employee, pursuing sustainable development for both soci- ety and us continuously with the aim of creating a future where all aspirations can be fulfilled. Accordingly, we renewed as Integrated Report from the fiscal year ended March 31, 2019. We received more feedback than we could ever have imagined from our stakeholders on our first-ever Integrated Report. During the fiscal year ending March 31, 2020, we made improvements to make Integrated Report 2019 easier to understand while referring to this feedback. Looking ahead, we will continue to do our utmost to ensure that the Integrated Report serves as an effective communication tool that positively contributes to constructive dialogue with our stakeholders. In the process, we referred to “the International Integrated Reporting Framework” propounded by International Integrated Reporting Council (IIRC) and “the Guidance for Collaborative Value Creation” formulated by Ministry of Economy, Trade and Industry, in addition to other frameworks. In the course of preparing this report, we have worked closely with each of our internal depart- ments to provide a summary of our holistic perspective on the Group as a * From a legal perspective, there is no continuity between the former Mitsui & Co. and the present whole. Through these means, I can say with confidence that this report was Mitsui & Co., and they are totally separate corpo- rate entities. created in an honest and sincere manner. September 2019 Masami Iijima Representative Director and Chairman of the Board of Directors Chairman of the Governance Committee 004 MITSUI & CO., LTD. Integrated Report 2019 Mitsui’s Information Systems This integrated report summarizes relevant information with a particular focus on factors that impact Mitsui’s corporate value. In addition to this report, the Company publishes various communication tools for Mitsui’s stakeholders (please refer to the end of this report for details on reports issued by the Company). Integrated Report 2019 Purpose Corporate Site I would like to know more about P.001 Mitsui’s Collective Impact Mitsui’s corporate philosophy, P.002 Corporate Management management vision, and Philosophy & Mitsui & Co. Group corporate culture, as these Conduct Guidelines make up the foundation for P.018 DNA of “Challenge & Innovation” management decision making. Company I would like to know more about P.050 Megatrends That https://www.mitsui.com/jp/en/ management issues as well as Mitsui Envisions company/index.html the social issues that P.051 Material Issues of Focus • Top Message Mitsui identifies as business (Materiality) • Corporate Mission Vision Values risks and opportunities. • Organization • Major Subsidiaries & Associated Companies • History I would like to know more about P.018–035 Mitsui’s Strength the drivers that give Mitsui its competitiveness. P.044 Efforts to Address Climate Change through Our Business I would like to know more about P.046 Human Resources Strategy ESG issues that impact the P.048 An Organization with Integrity sustainability of P.051 Material Issues of Focus Mitsui’s business model. Sustainability (Materiality) https://www.mitsui.com/jp/en/ sustainability/index.html • Message from the Chairperson of the I would like to know more about Sustainability Committee P.028 Strong Relationship with the relationship Mitsui has • Sustainability at Mitsui & Co. Stakeholders with its major stakeholders. • Mitsui & Co.’s Materiality • Sustainability Report • ESG Related Policies and Data I would like to know more about Mitsui’s strategies for realizing P.036–049 Mitsui’s Long-Term Strategy a sustainable business model through its businesses. P.041 Indicators We Focus on with Our I would like to know more about Investors Financial Strategies the KPIs Mitsui uses to P.058 Performance Highlights measure the results of https://www.mitsui.com/jp/en/ir/ P.064 Quantitative Targets each strategy. index.html • Financial Results • Mitsui & Co. Investor Day • Medium-Term Management Plan P.074 Results by Operating Segment • Business Model P.076 Review of Segments I would like to know more about • Corporate Governance P.090 LNG Business Strategy Mitsui’s earnings structure. • Risk Factors P.093 Healthcare Business Strategy • IR Library (Securities Reports, Business Reports, etc.) • IR Meetings I would like to know more about Mitsui’s governance, P.097 Corporate Governance which guides a corporation on a path to improving corporate value in a sustainable manner. MITSUI & CO., LTD. Integrated Report 2019 005 MITSUI & CO., LTD. Integrated Report 2019 Publication of an Integrated Report 004 CEO Message 008 CHAPTER 1 015 1×1×1=10,000 CHAPTER 2 057 Our Progress CHAPTER 3 073 Business Structure & Strategic Approach CHAPTER 4 097 Corporate Governance CHAPTER 5 125 Fact Data 006 MITSUI & CO., LTD. Integrated Report 2019 As used in this report, “the Company” is used to refer to Mitsui & Co., Ltd. (Mitsui Bussan Kabushiki Kaisha), while “Mitsui,” “the Companies,” “the Group,” “we,” “us,” and “our” are used to indicate Mitsui & Co., Ltd. and affiliated companies, unless otherwise understood from the