Integrated Report 2020
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MITSUI & CO., LTD. MITSUI & CO., LTD. Integrated Report 2020 Printed in Japan 1 PublicationofanIntegratedReport OurInformationSystems “Letnotshort-termgainstemptyourmind,seekonlyenduringprosperity ThisintegratedreportsummarizesrelevantinformationwithaparticularfocusonfactorsthatimpactMitsui’scorporatevalue. byembracinggrandaspirations.” Inadditiontothisreport,theCompanypublishesvariouscommunicationtoolsforMitsui’sstakeholders(pleaserefertotheend ThesewordsfromthefirstpresidentoftheformerMitsui&Co.,*Takashi ofthisreportfordetailsonreportsissuedbytheCompany). Masuda,representourfoundation.Hiswordsurgeustoavoidbecoming Integrated Report 2020 Purpose Corporate Site overlyfocusedonnear-termprofit.Rather,wemustrealizegrowthby cr eatingbusinessesthatcontributetosociety’slong-termdevelopment. I would like to know more about InMay2020,MitsuireleasedarevisedversionofitsMission,Vision, P.14 Mitsui’sCorporateCulture Mitsui’s corporate philosophy, P.32 Mitsui’sCollectiveImpact management vision, and Values,ourcorporatemanagementphilosophytocoincidewiththe P.24 CorporateManagementPhilosophy corporate culture, as these announcementofMedium-termManagementPlan2023–Transformand P.132 Mitsui&Co.GroupConduct Guidelines make up the foundation for Grow.Revisedforthefirsttimein16years,thenewphilosophyputsTakashi management decision-making. Masuda’smessagefrontandcenterandincludesavisionwhereby“As Company I would like to know more about ChallengersandInnovators,wecreateandgrowbusinesswhileaddressing https://www.mitsui.com/jp/en/ management issues as well as P.26 MegatrendsandBusiness company/index.html materialissuesforsustainabledevelopment.” Environment the social issues that Whenpreparingthenewplan,wesetgoalsforrespectivefrontlineopera- P.27 Materiality Mitsui identifies as business • TopMessage risks and opportunities. •CorporateMission,Vision,Values tionsbykeepingfirmlyinmindtheMaterialitythatwehadpreviouslyrevised •Organization in2019andwhichisthebaseofourbusinessactivities.Morespecifically, •MajorSubsidiaries&Associated wediscussedtheaspectsofourMaterialityonwhicheachtypeofday-to-day P34–37 TrackRecordofChallenge& Companies Innovation I would like to know more about •History workandactivityshouldfocus. P.38 ABusinessModelThatMaximizes the drivers that give Mitsui OurComprehensiveStrength In2015,theUnitedNationsidentifiedprioritytasksandsetoutaconcrete P.65–73 Medium-termManagementPlan its competitiveness. planofactionforhumanity,theearth,andglobalprosperitywiththeadop- 2023—“TransformandGrow” tionof17SustainableDevelopmentGoals(SDGs)and169relatedtargets. P.44 SustainabilityManagement— TacklingClimateChangethrough TheSDGsareembeddedinMitsui’sMateriality.Ibelievethatbyplacing OurBusinesses I would like to know more about P.50 HumanResourcesStrategyfor Materialityatthecoreofabroadrangeofbusinessesandactivitieswecan ESG issues that impact the aPoolofDiverseProfessionals helpaddresstheissueslistedintheSDGs. P.116 AnOrganizationwithIntegrity sustainability of Mitsui’s business model. Effortstorealizeasustainablesocietyarebecomingevermoreimportant P.27 Materiality Sustainability P.65–73 Medium-termManagementPlan duetotheunprecedentedspeedofsocialchangebeingdrivenbytheemer- 2023—“TransformandGrow” https://www.mitsui.com/jp/en/ sustainability/index.html genceofCOVID-19.Inadaptingtothisdramaticchange,Mitsuiwillleverage •MessagefromtheChairpersonofthe thewide-rangingnetworkthatithasdevelopedoveralonghistoryasa P.118 HumanRightsandSupplyChain I would like to know more about SustainabilityCommittee Management the relationship Mitsui has generaltradingcompany.Moreover,wewillreformthemindsetofeach •SustainabilityatMitsui&Co. P.119 StakeholderEngagement with its major stakeholders. •Mitsui&Co.’sMateriality employeebasedonthewordsofTakashiMasudacitedearlier.Inaddition, •SustainabilityReport Mitsuiwillachievegrowthbydrawingonits“ChallengersandInnovators” •ESGRelatedPoliciesandData DNAtocreatebusinessesthathelpaddresssocialissues. I would like to know more about Inpreparingourthirdintegratedreport,wereferredtotheInternational P.4 Mitsui’sValueCreation Mitsui’s strategies for realizing P.12–29 ContinuousValueCreation IntegratedReportingFrameworkpropoundedbytheInternational a sustainable business model P.30–53 StrategicEdge IntegratedReportingCouncil(IIRC),theGuidanceforCollaborativeValue through its businesses. CreationissuedbytheMinistryofEconomy,TradeandIndustry,andalarge volumeoffeedbackreceivedfromstakeholders.Also,thereporthasbeen preparedthroughclosecollaborationamongarangeofin-housedivisions P.42 IndicatorsWeFocusonin I would like to know more about OurFinancialStrategies the KPIs Mitsui uses to Investors toprovideourholisticperspectiveoftheGroup.Ibelievethatthisprocess P.65–73 Medium-termManagementPlan measure the results of https://www.mitsui.com/jp/en/ir/ 2023—“TransformandGrow” *Fromalegalperspective,thereisnocontinuitybetween reflectsasincereandhonestcommitmenttoexplainingourvaluecreation each strategy. index.html theformerMitsui&Co.andthepresentMitsui&Co.,and theyaretotallyseparatecorporateentities. inareadilyunderstandablemanner. •FinancialResults August2020 •Mitsui&Co.InvestorDay •Medium-termManagementPlan P.76 ResultsbyOperatingSegment •BusinessModel MasamiIijima P.78–91 SegmentStrategies I would like to know more about •CorporateGovernance P.70–73 StrategicFocus Mitsui’s earnings structure. •RiskFactors RepresentativeDirectorandChairmanoftheBoardofDirectors P.74 InitiativesinDigitalFields ChairmanoftheGovernanceCommittee •IRLibrary(SecuritiesReports,Business Reports,etc.) •IRMeetings I would like to know more about Mitsui’s governance, P.114 GlobalGroupRiskManagement which guides a corporation on a P.100–111 Mitsui’sCorporateGovernance path to improving corporate value in a sustainable manner. MITSUI & CO., LTD. Integrated Report 2020 2 3 Editorial Policy The integrated reports we have published to date have conveyed the attractiveness of the Contents Mitsui Group from various angles. Integrated Report 2020 is our third publication in this series, and we endeavored to advance its usefulness as a communications tool by diving deeper into MITSUI & CO., LTD. Integrated Report 2020 what makes the Mitsui Group attractive, while also taking a systematic approach to explaining our strategies to improve Mitsui’s corporate value sustainably over the long term. We hope that this report can help further an understanding of the Mitsui Group’s long-term competitive advantages in a rapidly changing business environment. Gate Gate Gate Gate Gate 1 2 3 4 5 Continuous Strategic Medium-term Management Fact Value Edge Management Foundation Data Creation Plan page page page page page 12 30 54 94 122 In this section, we explain what kind of This section draws a picture of our Medium-term Management Plan As a general trading company This section summarizes a value Mitsui will continue to create, strategy, as Mitsui strives to 2023—“Transform and Grow” com- involved in a broad array of variety of data about Mitsui. Mitsui’s direction rooted in a long-term increase corporate value in any menced in April 2020. Here, we business domains, Mitsui must outlook, our vision, and the corporate era. We also discuss Mitsui’s summarize this new manage- constantly seek a sophisticated culture and people who will make this strengths and strategies. ment plan while reviewing the level of corporate governance. vision a reality. progress made under the previous In this section, we discuss medium-term management plan. Mitsui’s constantly evolving management foundation. A Cautionary Note on This report contains statements (including figures) regarding Mitsui & Co., Ltd. (“Mitsui”)’s cor- This integrated report was • GRI (Global Reporting Initiative), Sustainability Reporting Standard porate strategies, objectives, and views of future developments that are forward-looking in Forward-Looking Statements: completed with reference to • Ministry of the Environment, Japan, Environmental Accounting Guidelines 2005 nature and are not simply reiterations of historical facts. These statements are presented to • ISO 26000 (Guidance on social responsibility) inform stakeholders of the views of Mitsui’s management but should not be relied on solely the following guidelines: • IIRC (International Integrated Reporting Council), International Integrated Reporting in making investment and other decisions. You should be aware that a number of known or Framework unknown risks, uncertainties and other factors could lead to outcomes that differ materially • Ministry of Economy, Trade and Industry, Japan, Guidance for Integrated Corporate from those presented in such forward-looking statements. These risks, uncertainties and Disclosure and Company-Investor Dialogues for Collaborative Value Creation other factors referred to above include, but are not limited to, those contained in Mitsui’s latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements. MITSUI & CO., LTD. Integrated Report 2020 MITSUI & CO., LTD. Integrated Report 2020 4 5 Mission, Continuous Vision, Values Mitsui's Value Creation Value Creation Build brighter Roadmap to Value Creation with “Challenge and Innovation” DNA futures, everywhere Mitsui has created value for industry for many years, while evolving its own business models in response to trends of Long-term Management Vision the times and changes in society. Mitsui continues to contributes to the sustainable development of society through its 2030 business activities, by drawing