Green Transformation (GX)
Message from the Green Transformation Committee Chair
Jun Nakajima
Senior Executive Officer
Green Transformation Committee Chair
Making GX a Driving Force for Value Creation
Under the “integration 1.1” medium-term management plan, the Kanematsu Group is promoting Green Transformation (GX) as one of its key growth initiatives, with the goal of becoming “a solutions provider leading the transformation of efficient and sustainable supply chains.” Having assumed the role of GX Committee Chair in fiscal year ending March 2027, I aim to build on the practical experience I gained in the Grain, Oilseeds & Feedstuff Division to ensure that GX evolves further, developing from a concept into a business that generates both revenue and social value in collaboration with our business partners.
When it comes to promoting GX, the Group’s strengths are most effectively leveraged in areas related to food, agriculture, and meat products thanks to its established relationships with a wide range of stakeholders across the food supply chain, including farmers, fertilizer manufacturers, animal feedstuff manufacturers, food manufacturers, retailers, and restaurant companies. Utilizing this network, we pursue initiatives that balance climate change mitigation with sustainable food production. Specific initiatives include reducing methane gas emissions from rice cultivation; enhancing soil properties and carbon storage through the use of high-performance biochar and environmentally friendly materials; boosting production efficiency; reducing enteric methane emissions in the form of ruminant eructation (such as from cattle); and developing carbon credits and a carbon insetting system.
Beyond emissions reduction, a next-generation business model that supports a stable food supply, improved agricultural productivity, a more resilient supply chain, and business partners’ efforts to reduce Scope 3 emissions while enhancing corporate value is the very embodiment of GX principles. Globally, various environmental shifts are emerging, and while there are signs of a backlash against decarbonization policies in some regions, this is precisely why we believe that GX rooted in actual demand—that is, “GX that is needed, sustainable, and profitable”—is so important.
As we move forward, the cornerstone of our GX efforts will continue to be in areas related to food, agriculture, and meat products. At the same time, we will pursue collaboration in such areas as renewable energy, materials GX, and recycling and upcycling while drawing on the expertise and trade routes of the entire Kanematsu Group. Furthermore, we will step up collaboration across departments and Group companies, creating concrete business opportunities based on front-line challenges. We will transform our supply chain in partnership with our business partners, contributing both to solving social issues and to the sustainable growth of the Kanematsu Group, helping to protect the Earth for future generations.
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.
