Green Transformation (GX)
Transforming the supply chain in harmony with the Earth
Message from the Green Transformation Committee Chair
Hiroshi Yamashina
Senior Executive Officer
Green Transformation Committee Chair
Transforming Our Supply Chain to Coexist with the Earth
In “integration 1.0,” its medium-term management plan launched in April 2024, the Company sets forth its goal of becoming a “a solutions provider leading the transformation of efficient and sustainable supply chains” and promotes GX as one of its key measures. Three years have passed since the establishment of the Green Transformation (GX) Committee, which aims to build businesses that contribute to GX, and GX-related businesses continue to make steady progress.
Achieving GX in food and agriculture operations is an area of particular focus, and we are leveraging our strengths in the food supply chain to collaborate with farmers, fertilizer manufacturers, animal feedstuff manufacturers, meat packers, food manufacturers, retailers, and restaurant companies to develop various GX projects. For example, we are striving to mitigate methane gas emissions from rice cultivation, creating carbon credits based on this, and improving soil carbon storage and production efficiency through the use of high-performance biochar and biodegradable polymer materials. Through such initiatives, we helping to combat climate change and build a sustainable food production system. These initiatives are being promoted by the Sustainable Business Section, which serves as the secretariat for the committee, and the GX Accelerator Team, which is composed of volunteer employees from across the Kanematsu Group, in collaboration with external partners and business partners.
In addition, the number of investment and business partnership projects in other focus areas, such as renewable energy, GX for raw materials, and the venous business,* is steadily increasing, and we expect further expansion in the future.
How the environment is perceived is changing on a global scale, with some areas experiencing a backlash against decarbonization and GX initiatives. However, we view this situation as an opportunity to create new value and business models. GX is more than decarbonization and climate change measures. As a general trading company, we aim to become a leader in transforming supply chains to coexist with the earth by rallying the collective strengths of the Group and leading collaboration between industries and companies. Going forward, we will continue to achieve long-term growth by engaging not only our business partners but society as a whole.
* Refers to industries that turn solid industrial waste into reusable resources
GX promotion framework
Status of Initiatives
Investment in Green & AgriTech startup TOWING Co., Ltd. -Solving social issues with high-performance biochar “Soratan”-
In March 2025, Kanematsu subscribed to a third-party allocation of new shares by TOWING Co., Ltd. and acquired shares in the company.
TOWING develops, manufactures, and sells the high-performance biochar Soratan in addition to providing related technical services. It also promotes comprehensive initiatives that contribute to solving social issues, such as launching the world’s first project utilizing a business model patent related to reserve sales and creation in the carbon credit field.
Since signing a partnership agreement in July 2024, Kanematsu and TOWING have been working on joint projects in Japan, the United States, Brazil, and Southeast Asia. In this joint venture, we are analyzing and evaluating the effects of using Soratan in terms of improvements in food yield and quality as well as carbon storage and soil properties, while also verifying the potential for promoting regenerative agriculture that contributes to biodiversity conservation. We plan to transition to a broader demonstration phase on the basis of certain results. Looking ahead, we will help establish a sustainable food production and procurement system and promote the reduction of greenhouse gas emissions across the entire supply chain through actions centered on carbon offsets utilizing Soratan.
Through this investment, Kanematsu will further strengthen its mutual cooperation with TOWING and promote efforts to further advance climate change measures and build a sustainable food supply chain.
Promoting Decarbonization with Biodiesel Fuel for Domestic Vessels
Kanematsu Petroleum Corporation has been conducting mixed combustion tests of “B5A heavy oil,” which is a mixture of heavy oil and 5% biodiesel using its own fuel supply ship at Nagoya Port since November 2022. We have gradually increased the biofuel blend ratio and conducted mixed combustion tests up to a maximum of 24%.
In March 2025, we also refueled an asphalt carrier in Tokyo Port with the same B5A heavy oil using the ship-to-ship method (a method of refueling by connecting a refueling hose from a fuel supply ship to the receiving ship).
Switching to biodiesel is an effective means of reducing CO2 emissions that does not require large capital expenditures. The Kanematsu Group aims to contribute to the long-term decarbonization of fuel by expanding its supply network to not only ship operators but also factories, construction sites, bus operators, and other users.
Collaboration with Grid Beyond -Promoting the transition to renewable energy through “demand response”-
Kanematsu has entered a business partnership with Grid Beyond, the Japanese subsidiary of an Irish energy IT solutions provider, to promote “demand response” in Japan, an initiative that adjusts the balance between electricity supply and demand and promotes the transition to renewable energy.
Grid Beyond is a company that aggregates efficient electricity trading through demand response, utilizing cutting-edge technologies that include proprietary AI and robots, and has over 10 years of experience in electricity load control. Going forward, we will promote the use of demand response to the Kanematsu Group and our business partners, with the aim of realizing a sustainable society.
In order to realize a sustainable society, carbon neutrality and circular economy are the important environmental aspects. While immediate action is necessary, companies are facing various problems, such as the extremely difficult tasks of selecting the best solution among the various options including new technology, as well as the additional costs to take action.
For such customers, with our knowhows based on the actual business experiences of the decarbonization solutions adopted by various companies, Kanematsu formed a business alliance with partner companies including Asuene, Inc. and The Norinchukin Bank to support the viableand effective Green Transformation (GX), covering from calculation to reduction and visualization, that follow the latest trends required for the company. and eventually becomes an added value of the supply chain.
