Climate Change

Basic Approach and Policies

When our founder Fusajiro Kanematsu established the Company in 1889, he personally laid down the following corporate principle: "Let us sow and nurture the seeds of global prosperity." These words represent Fusajiro's intention to sow the seeds (i.e., create businesses) to achieve prosperity of Japan and happiness through economic development. In a modern context, this corporate philosophy expresses our commitment to help achieve prosperity and happiness for people not only in Japan but all over of the world, which is similar to the ideas underlying the Sustainable Development Goals (SDGs).

In relation to SDG 13, Climate Action, we have selected and focused on particular businesses and promoted initiatives since our inception to create a business portfolio that does not include thermal power generation, coal, and other carbon-intensive businesses. In addition, all projects--investments, important contracts, significant asset purchases--are implemented in line with the Group's sustainability policy and key issues (materiality). We have thus developed a governance system for management and monitoring to ensure that our Group does not engage in carbon-intensive businesses.

Thanks to these extensive efforts to control our environmental impact, CO2 emissions (Scope 1, 2) from Group operations are extremely small relative to our size. We will maintain the current governance system to ensure that our emissions do no increase going forward. Furthermore, our Group has actively engaged in a forest conservation project and Joint Crediting Mechanism (JCM) project in recent years. Through these projects, we plan to offset all our CO2 emissions with credits generated by our Group or avoided emissions to be converted into credits (become carbon neutral*1) as soon as possible and eventually aim to become carbon negative*2 so that we can keep on contributing to Japan and the international community.

  • Carbon neutral is a state where the CO2 emissions (Scope 1, 2) of our Company and Group are balanced with the credits generated by our Group through the forest conservation project and JCM project or avoided emissions.
  • Carbon negative is a state where the credits generated by our Company and Group through the forest conservation project and JCM project or avoided emissions exceed(s) the CO2 emissions (Scope 1, 2) of our Group.

Disclosure based on Recommendations of the TCFD (Executive Summary)

In June 2021, our Company pledged its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We will strive to disclose information regarding climate change-related business risks and opportunities in accordance with the TCFD's framework and in a more accessible manner.

Items TCFD recommended disclosure items (11 items) Our initiatives (summary)
Governance a)Describe the board's oversight of climate-related risks and opportunities

Monitoring organization

Board of Directors
b)Describe management's role in assessing and managing climate-related risks and opportunities

Role of management

Discussion and reporting in the Sustainability Management Committee meeting attended by the Chief Officer of Corporate Planning and mainly chief officers from business divisions (executive officers)
Strategy a)Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term

Risks and opportunities

  • Conducted scenario analyses on four businesses: North American beef business, steel tubing business, corn business, and kerosene business, on the basis of climate-related impacts (qualitative aspects) and sales/profit (quantitative aspects)
  • The top priority areas in each of the businesses are as follows

    North American beef business (short-, medium-, and long-term, 4℃ scenario and below 2℃ scenario)

    Risk : Rise in feed and pasture prices due to higher average temperature (physical risk)

    Opportunity : New opportunities associated with the development/adoption of new technologies (plant-based meat)

    Steel tubing business (short-, medium-, and long-term, 4℃ scenario and below 2℃ scenario)

    Risk : Decline in fossil fuel demand (transition risk)

    Opportunity : New opportunities associated with the development/adoption of new technologies (CCUS, EOR)

    Corn business (short-, medium-, and long-term, 4℃ scenario and below 2℃ scenario)

    Risk : ・Decline in sales due to a fall in meat demand, and an increase in procurement costs resulting from an increase in demand for non-feed uses(transition risk)
    ・Increase in procurement costs due to higher average temperatures and drought(physical risk)

    Opportunity : New opportunities associated with the development/adoption of new technologies (bioplastics)

    Kerosene business (short-, medium-, and long-term, 4℃ scenario and below 2℃ scenario)

    Risk : Decrease in demand due to tightened regulations(transition risk)
    Supply chain disruption due to rising sea levels (Physical risks)

    Opportunity : Expansion of renewable energy business and selling of low-GHG emission products

b)Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning


Categorize into Large/Medium/Small
c)Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2℃ or lower scenario

Analysis results

  • Potential risks and opportunities exist for the North American beef business, steel tubing business, corn business, and kerosene business
  • On the basis of the analysis, we should formulate a business strategy that focuses on climate change-related opportunities
  • Promote investment in environment-related business areas as a priority measure under our medium-term vision, future135
Risk management a)Describe the organization's processes for identifying and assessing climate-related risks

Identification and evaluation

Each business division
b)Describe the organization's processes for managing climate-related risks


Sustainability Management Committee
c)Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management

Integration (reporting, monitoring and supervision)

Each business division → Sustainability Management Committee → Board of Directors
Metrics and Targets a)Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process


CO2 emissions
b)Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions and the related risks

GHG emissions

FY2023  28,321t-CO₂ (97 companies from Kanematsu Group)
(Assured: Scope 1: 9,507t-CO₂ / Scope 2: 18,814t-CO₂)
FY2022  29,497t-CO2 (95 companies from Kanematsu Group)
(Assured: Scope 1: 9,772t-CO2 / Scope 2: 19,725t-CO2)
FY2021  27,800t-CO2 (94 companies from Kanematsu Group)
(Estimates: Scope 1: 9,200t-CO2 / Scope 2: 18,600t-CO2)
Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets

Goals and results

2025 Carbon neutral
2030 Carbon negative (minus) 150,000t-CO2
2050 Carbon negative (minus) 1,000,000t-CO2

Disclosure based on Recommendations of the TCFD (Details)

Governance/Risk management


Our Group's business operations are promoted and executed by six business divisions, which are also responsible for identifying and evaluating climate-related risks in their respective business areas.


Our Company's Sustainability Management Committee is made up of mainly chief officers (executive officers) of our business divisions, which are executive organizations, who are well versed in their respective businesses, and the Chief Officer of Corporate Planning (executive officer) who oversees our Group's basic management policy and strategy and the distribution of management resources and who also serves as the committee chair. The Sustainability Management Committee discusses the climate-related risks that are identified and evaluated by the sales divisions. It is also responsible for calculating our Group's CO2 emissions on a regular basis, as well as discussing the factors contributing to increase or decrease of emissions and measures for improvement to ensure comprehensive risk management.

Monitoring and supervision

The Board of Directors receives regular reports from the Sustainability Management Committee and monitors and supervises the comprehensive management of climate-related risks in our Group.

Sustainability Management Committee agendas for FY2023 (climate change-related)

  • Goal setting for reduced CO2 emissions and information disclosure in accordance with TCFD recommendations
  • FY2022 GHG emissions report and increase/decrease analysis
  • Selection of businesses for TCFD scenario analysis
  • Initiatives to reduce GHG emissions and progress checks
  • Summary of executed investments from a sustainability perspective
  • Review and analysis of CDP climate change 2022 report

Sustainability Management Committee agendas for FY2022

  • Revision and identification of new materiality (key issues)
  • Support for the TCFD
  • Selection of businesses for TCFD scenario analysis
  • Calculation of CO2 emissions
  • Report on TCFD scenario analysis progress


Basic Concept

We have conducted a scenario analysis on the businesses in our Group that are considered to be significantly impacted by climate change. As a result of the analysis, we believe that even though both risks and opportunities exist in all the scenarios, the impact from opportunities surpasses that from risks. Since the promotion of investment in environment-related business areas is one of the priorities under our medium-term vision, future135,we consider addressing climate change to be a business opportunity.

Selection of businesses for scenario analysis

To evaluate the qualitative impact of climate change on our Group's businesses, we first classified them into high-risk sectors and non-high-risk sectors as per the TCFD recommendations.
Next, we categorized the impact on our Group from the perspective of sales (quantitative aspect). Of the four businesses that showed large qualitative and quantitative impact, we selected businesses that accounted for a relatively large portion of our sales on a consolidated basis (IFRS earnings) for the scenario analysis as shown below.

Continuing from FY2022

North American beef business, Steel tubing business

For FY2023

Corn business, Kerosene business

Selection of climate scenarios

In order to objectively determine the new risks and opportunities brought about by climate change and the resilience of the businesses under review, we used reports by the International Energy Agency (World Energy Outlook 2022, Net Zero by 2050 Roadmap for the Global Energy Sector), the IPCC Sixth Assessment Report, and other reference documents to conduct the analysis for 2030 and 2050 assuming the following scenarios:

  1. 4℃ scenarios (current scenarios)
    • Stated Policies Scenario (STEPS)
      Scenario in which policies that have already been introduced or announced are implemented
    • - Announced Pledges Scenario (APS)
      Scenario in which the pledges announced by the world's governments are completely achieved as scheduled
    • Business-as-usual (BAU)
      Scenario in which fossil fuels continue to be the main source of energy, and greenhouse gas emissions keep increasing
  2. Below 2℃ scenarios (transition scenarios)
    • Sustainable Development Scenario (SDS)
      Scenario in which all net-zero pledges are completely achieved, and broad efforts are made for the short-term reduction of emissions (i.e., scenario that matches the Paris Agreement's goal to limit global warming to well below 2℃)
    • Net Zero Emissions (NZE) by 2050 Scenario Scenario in which the global energy sector achieves CO2net zero by 2050
    • Toward Sustainability Scenario (TSS)
      Scenario in which progress is made toward achieving the SDGs on a global scale, and the world's energy demand is satisfied by renewable resources

Impacts of climate-related risks and opportunities

The (financial) impacts of climate-related risks and opportunities do not apply to the whole Company but are impacts on the profits or expenses of the businesses selected for the scenario analysis. The impacts are classified into three categories (Large, Medium, Small) on the basis of the following quantitative criteria:

(Quantitative criteria)

Large: 1 billion yen or more
Medium: 500 million yen or more to less than 1 billion yen
Small: less than 500 million yen
―: Qualitative evaluation only

Scenario analysis and strategy resilience

(1) North American beef business

For financial impact, revisions were made based on the latest scenarios in the World Energy Outlook 2022 and the IPCC Sixth Assessment Report.


The average temperature during the summer season is expected to rise in North American corn production regions.


There are no direct climate change-related impacts. However, demand for beef is expected to grow due to population increase in all scenarios.

(2) Steel tubing business


Fossil fuel demand is expected to decline significantly in the below 2℃ scenarios.


The amount of captured CO2 is expected to increase due to CCUS.

(3) Corn business


A significant decline in demand for corn feed is expected as a result of slowing demand for beef and other meats in the below 2℃ scenario.


Demand is expected for low-GHG emission products such as bioplastics.

(4) Kerosene business
  • (*)Based on the WEO-2022, the 4℃ scenario assumes an increase in crude oil prices as a result of increased demand, and the below 2℃ scenario assumes a decline in crude oil prices due to decreased demand.


The below 2℃ scenario forecasts a decline in demand for kerosene as a result of tighter regulations and the 4℃ scenario forecasts an increase in procurement costs due to demand increases.


Expansion of the renewable energy business and sales of low-GHG emission products

Metrics and Targets

Indicator (CO2 emissions)

As our Group does not own many plants and generates little greenhouse gas emissions other than CO2, we used CO2 emissions as the indicator for evaluating the climate-related risks and opportunities.


(FY2023) 28,321t-CO2
(Assured Scope1:9,507t-CO2 Scope2 : 18,814t-CO2 97 companies reviewed)
(FY2022) 29,497t-CO2
(Assured Scope1:9,772t-CO2 Scope2 : 19,725t-CO2 95 companies reviewed)
(FY2021) 27,800t-CO2 
(Estimates、 Scope1:9,200t-CO2 Scope2 : 18,600t-CO2 94 companies reviewed)


(Targets for Scope 1, 2)

2025 Achieve carbon neutrality
2030 Carbon negative (minus) 150,000 t-CO2 (△) 150,000 t-CO2
2050 Carbon negative (minus) 1,000,000 t-CO2 (△) 1,000,000 t-CO2

(Targets for Scope 1, 2 and Scope 3)

They will be set separately.

First, we will aim to achieve carbon neutrality as soon as possible, by 2025. We will reduce CO2 emissions by shifting to renewables; for any remaining emissions that cannot be reduced, we will offset them with the credits generated from our business--converting our contribution to GHG emissions reduction in the REDD+ project, etc. into credits--to achieve carbon neutrality.

We will keep expanding our clean fuel and renewable energy business, REDD+ project, and JCM project to increase avoided emissions, aiming to become carbon negative at −150,000 t-CO2 and −1,000,000 t-CO2 by 2030 and 2050, respectively, thereby contributing to GHG emissions reduction on a global scale.

Collaboration with external parties

Industry association: Japan Foreign Trade Council, Inc.

We are promoting initiatives to build a low-carbon and recycling-oriented society as a member of the Global Environment Committee of the Japan Foreign Trade Council,Inc (JFTC), an industry association for trading companies.

We will also continue to support the JFTC’s "Long-term Vision for Climate Change Countermeasures", which aligns with our policies and goals.