MOL’s Climate-related Disclosure earns high marks from government pension fund domestic equity managers

April 2, 2024

Strong Evaluations from 4 Institution

Mitsui O.S.K. Lines, announced that it earned high evaluations from four institutions in the Task Force on Climate-related Financial Disclosure selected by the investment organizations to which Japan’s Government Pension Investment Fund entrusts the management of domestic equities.
In this evaluation, the GPIF asked investment management institutions to select up to five companies for their “excellent TCFD disclosure. Five companies, including MOL, were rated as “excellent” in TCFD disclosure by four or more institutions.

Following are comments from the investment institutions that evaluated MOL.

Through the analysis of three scenarios (2.6°C, below 2°C, and 1.5°C), it has been verified that the transition plan set forth in the “Environmental Vision 2.2” can function as an appropriate mitigation measure and demonstrate sufficient resilience under all scenarios.
The report discloses a transition plan, in addition to a detailed risk analysis, to steadily implement the transition to a low-carbon society. The investment plan for the replacement of its assets is also disclosed at the same time, and the information is compiled to contribute to investors’ decision-making.
Milestones for each action plan for GHG reduction are clearly indicated and incorporated into the management plan as risks and opportunities. Internal Carbon Pricing (ICP) is also introduced and utilized for investment decisions, and the impact on the balance sheet is monitored regularly by the management committee for comprehensive evaluation.
Future demand projections are analyzed and planned commensurate with realistic scenarios.

In 2018, the MOL Group was one of the first companies to endorse the TCFD’s recommendations, and since becoming Japan’s first shipping company to begin disclosures using the framework, it has been enhancing the content of the disclosures in its annual revisions. The group will continue to proactively disclose information so that the stakeholders can deepen their understanding of the group’s decarbonization efforts.

Under MOL Group corporate philosophy of ‘Supporting people’s daily lives from the blue sea and opening up a prosperous future’, our group aims to deliver new value to all stakeholders and become a strong and flexible corporate group that grows globally by not only increasing economic value but also social value.