Rated 2^nd Best in Japan

Mitsui O.S.K. Lines,  announced that, for the second consecutive year, its climate-related disclosure earns high marks from fund management institutions to which the Government Pension Investment Fund  entrusts the management of domestic stocks. In this year’s ratings, MOL placed second best in the country.
For this evaluation, the GPIF asked investment management institutions to select up to five firms for “excellent TCFD disclosure,” and five firms, including MOL, received high evaluations from four or more institutions.
MOL was one of the first Japanese companies to endorse its recommendations in 2018, in the early days of the TCFD, and since it became the first domestic shipping company to use the TCFD framework for disclosure, it has been revising the framework every year to enhance disclosure.
MOL will continue to proactively disclose information so that its stakeholders can deepen their understanding of the group’s initiatives on decarbonization.

Following are comments from the investment institutions that participated this year’s program.

• The scenario analysis clearly identifies the profit/loss variables and suggests that it has significance to invest in decarbonization when carbon taxes are taken into account. It also provides detailed disclosure of physical risks. In addition, specific fleet configurations are provided for initiatives on decarbonization.
• MOL not only discloses in line with the TCFD framework on the website in an easy-to-understand way, but also explains details of its measures integrated with its business strategy to address climate change in the “MOL Group Environmental Vision 2.2,” such as investment plans for replacing its own assets and building a supply chain to expand its low-carbon business. The company summarizes useful information for investors.
• It was very easy to understand not only the TCFD disclosures, but also the back casting approach to climate change, such as the GHG reduction roadmap and transition plan (2050) for each cargo segment in the scenario analysis.
• MOL has reviewed the demand forecast for 2050 and estimated the financial impact based on more realistic scenarios, presenting a roadmap to specific realization against environmental targets.
• MOL’s risk analysis of the international shipping industry is not just sophisticated, the company also sets KPIs, which are incorporated into specific actions, to carry forward initiatives. MOL is also progressive in its initiatives to secure removal and sinks, including involvement in the creation of carbon credits.