Marubeni Corporation, based on the Paris Agreement, recognizes the importance and urgency of limiting the global average temperature increase by the end of this century to 1.5°C (hereinafter, the “1.5°C pathways”). For the purpose of medium- and long-term contributions to measures addressing climate change, Marubeni has formulated a long-term vision on climate change. In that vision Marubeni has set a goal to strive for net-zero GHG (greenhouse gas) emissions from the group by 2050. To make the goal of net-zero GHG emissions by 2050 an effective one, Marubeni has formulated action plans to be implemented heading towards 2030.
(1) Net-Zero GHG Emissions by 2050
Marubeni will abate GHG emissions at a level consistent with the said 1.5? pathways. Any residual emissions that cannot be abated will be neutralized (GHG elimination) through internationally recognized nature-based solutions (e.g., forests, farmland, etc.), or through technological solutions, with the aim of achieving net-zero GHG emissions by 2050. *1
*1 Boundary of the net-zero GHG emissions:
Scope 1: Direct emissions from owned or controlled sources of Marubeni and its consolidated subsidiaries, such as through burning of fuel, industrial process, etc.
Scope 2: Indirect emissions from the generation of purchased energy consumed by Marubeni and its consolidated subsidiaries.
Scope 3, Category 15 (Investments): Among all other indirect emissions that occur in the Marubeni Group’s value chain, Scope 1 and Scope 2 for associate investees account for using the equity method (hereinafter, “associate investees”).
Action Plans towards 2030
Marubeni has formulated the following action plans heading towards the year 2030 in order to make the goal of net-zero GHG emissions by 2050 effectively.
Halve the CO2 emissions of FYE 3/2020, about one million tons of CO2, emitted by Marubeni and its consolidated subsidiaries (Scope 1 and Scope 2)
Marubeni has revised the targeted abatement figure released in September 2020 (a 25% abatement from FYE 3/2019 levels by 2030) to make it at a more consistent level to the 1.5°C pathways, and will halve its total volume of emissions, which was about one million tons of CO2 in FYE 3/2020 by 2030.
2) Reduce by one fifth the CO2 emissions of the FYE 3/2020, about 36 million tons of CO2*2, emitted by associate investees of the Marubeni Group (Scope 3, Category 15 (Investments))
*2 This emissions volume comprises the FYE 3/2020 performance of existing investees plus the estimated emissions from projects already contracted at the current point in time (as for power generation projects, projects for which associate investees of the Marubeni Group has entered into power purchase agreements but has yet achieved commercial operations.)
Changes in the emissions volume associated with increased emissions from new investments and fluctuations in the emissions volume by plant load factors, as well as reductions in the emissions volume due to the utilization of new technologies (CCS*3, co-combustion of hydrogen and ammonia, etc.), are not included in the assumptions for the above estimation. In the interest of meeting the needs of society as it makes the low-carbon transition, the development of new gas-related projects such as gas-fired power generation businesses will continue. For aspects which could affect the emissions volume by associate investees going forward, we will monitor the progress of abatement of GHG emissions and conduct reviews thereof. In addition, we will continually perform studies with the aim of establishing milestones towards net-zero GHG emissions by 2050 that are consistent with the 1.5°C pathways.
*3 CCS: Carbon dioxide Capture and Storage
3) Move up the timetable to halve the net power generation capacity of our coal-fired power generation businesses
Based on our Business Policies Pertaining to Sustainability (In Relation to Our Coal-Fired Power Generation Business and Renewable Energy Generation Business) that Marubeni released in September 2018, and taking into account the progress made so far in pulling out of coal-fired power generation, we will accelerate our goal of cutting our FYE 3/2019 coal-fired power net generation capacity in half by 2030 to 2025, and aim for approximately 1.3 GW as our coal-fired power net generation capacity in 2030 (included in the above reduction figure (2) for associate investees), and further, aim for zero by 2050.
4) Absorb and sequestrate CO2 through our forests
Marubeni will strive to expand the volume of carbon stocks in our forests (currently about 11 million tons of CO2 equivalents*4) and, at the same time, expand the sequestrated volume of carbon through the multi-purpose utilization of afforested assets.
*4 By enlarging some of our plantation areas, improving stock volume per-unit area, and through the proper management of managed forests, estimated volume of carbon stocks in our forests will be about 19 million tons of CO2 equivalents in 2030.
By executing these actions, by 2030 the Marubeni Group will try to abate its FYE 3/2020 emissions by one fifth over the total scope covered by our net-zero GHG emissions goal. This plan was formulated to apply to the Marubeni Group’s business portfolio at the present time and is based on certain assumptions about current international recognition and foreseeable changes in system and technological innovations. Marubeni will revise them appropriately in light of any future changes to these premises.
(2) Contributing to low-carbon/carbon-free goals through business activities
The Marubeni Group views the transition to low-carbon/carbon-free goals as a business opportunity, and will use its business activities to continue contributing to the abatement of GHG emissions that our society produces. In terms of contribution by energy supply, Marubeni strives to construct the energy systems that will serve as the foundations for a decarbonized society, and in terms of energy demand, Marubeni will help other emitters to control/abate GHG emissions over a broad range of industries. Moreover, in the realm of land use, Marubeni will promote initiatives towards sustainable agri-input businesses and forest management.