Environmental Data

Actively Disclose Environmental Data
MOL Group's Environmental Data
Third-party Verification of CO₂ Emission Data
FY2019 Environmental Accounting

Actively Disclose Environmental Data

Demand for proactive disclosure of environmental data is increasing. Customers have raised their awareness of the importance of calculating and reducing the environmental impact such as CO₂ emissions generated in transport activities because their efforts on reducing the environmental load on their supply chains contribute to improving their social evaluations and positions. At the same time investors recognize that businesses whose activities produce GHG emissions may be imperiling their corporate value more than ever due to various policies and regulations to address the environmental issues such as escalation of global warming, and growing concern among consumers.

Clean Shipping Index (CSI)

The Clean Shipping Index is an environmental assessment tool for ships and shipowners, used by a network of cargo owners and forwarders (customers) when buying sea transport. Ship owners present the environmental performance on emissions of CO₂, sulfur oxides, particulate matter and nitrogen oxides and the use and handling of chemicals, waste and waste water. Vessels are then ranked from 'low performance' to 'good performance'. With the information collected, the cargo owners and forwarders evaluate the ship owner in the procurement process. In line with MOL's target to "Actively Disclose Environmental Data", MOL started reporting in CSI in 2013.

Clean Cargo Working Group(CCWG)

The global nonprofit organization "Business for Social Responsibility (BSR)," which works with containership owners, container shipping customers, and non-vessel operating common carriers, has established the Clean Cargo Working Group (CCWG) in 2003. CCWG measures, evaluates, and reports the Ship owner environmental performance including CO₂, NOx, SOx and Environmental Management System. MOL has been participating since 2012.

CDP

CDP is a U.K.-based non-governmental organization that represents 827 institutional investors all over the world. It holds about $100 trillion in total. It sends specific questionnaires asking about strategies on climate change and on greenhouse gas emissions to companies. Answers and scores of the results are publicly announced around the world, and the scores are becoming a key indicator in measuring corporate value. MOL has responded to CDP's inquiries every year, and was recognized for "B" in FY2018.

MOL Group's Environmental Data (As of March 31, 2020)

Energy Consumption

	Unit	FY2017	FY2018	FY2019
Fuel oil (C oil)	thousand tons	5,321	4,876	4,483
MOL vessels	thousand tons	4,591	4,048	3,739
Group company vessels	thousand tons	730	829	744
Diesel oil (A oil)	thousand tons	346	341	378
MOL vessels	thousand tons	267	252	271
Group company vessels	thousand tons	79	89	106
Electricity	thousand kWh	83,552	85,605	86,924
Municipal gas	thousand m³	1,637	1,799	1,648
Energy consumption (equivalent)	thousand GJ	245,896	225,976	216,731

C oil/A oil: Used mainly for vessel fuel
Energy consumption: The energy equivalent of heat originated from C oil, A oil, electricity, municipal gas and other energy consumed.

Greenhouse Gas Emissions

	Unit	FY2017	FY2018	FY2019
Scope 1: CO₂ emissions	thousand tons	17,774	16,369	15,304
MOL vessels	thousand tons	15,239	13,499	12,616
Group company vessels	thousand tons	2,510	2,849	2,666
others	thousand tons	25	21	22
Scope 2: CO₂ emissions	thousand tons	46	47	45
Scope 3: CO₂ emissions	thousand tons	2,246	2,166	3,717

Scope 1: CO₂ emissions originating mainly from A oil and C oil used as fuel in vessels
Scope 2: CO₂ emissions originating mainly from electricity consumption
Scope 3: CO₂ emissions originating mainly from when the capital goods and/or ship's stores are produced, fuels the vessels used are generated etc.
(*：The Scope3 emission of FY2019 increased for change of emission factor)

NOx and SOx Emissions

	Unit	FY2017	FY2018	FY2019
NOx emissions	thousand tons	481	438	408
MOL vessels	thousand tons	406	361	337
Group company vessels	thousand tons	76	77	71
SOx emissions	thousand tons	328	286	194
MOL vessels	thousand tons	278	237	161
Group company vessels	thousand tons	50	49	34
coverage rate * coverage rate=vessels calculated/total vessels on consolidated basis	%	-	-	95

Other Resources

	Unit	FY2017	FY2018	FY2019
Waste	tons	78,225	2,391	39,883
Recycled	tons	77,388	1,584	38,797
Non-recycled	tons	838	807	1,086
Recycling rate (MOL Head Office Building)	%	67	66	62
Water	m³	623,924	579,341	599,478
Tap water	m³	623,924	579,341	599,478
River water	m³	-	-	-
Seawater (cyclic usage)	m³	-	-	-

Waste: Mainly vessels sold to be scrapped; recycled at scrapping yards
Water: The volume of water used in offices. Most of the water used in vessels is made from seawater and recycled

Eco Sailing Initiatives

	Unit	FY2017	FY2018	FY2019
Ocean-going vessels
CO₂ emissions per unit load (ton-mile)	g/ton-mile	11.4	11.2	10.6
MOL	g/ton-mile	11.0	10.9	10.3
Domestic coastal vessels
Unit energy consumption	FY2009=100	102.9	100.8	101.2

Onshore Initiatives

	Unit	FY2017	FY2018	FY2019
Unit energy consumption (MOL, Daibiru, Shosen Koun)	FY2009=100	78.1	76.0	75.8
Solar power generation	thousand kWh	243	247	237

Data scope
MOL Group consolidated subsidiaries in Japan and overseas. Excludes some small offices
Noted areas such as "(MOL)" are limited to that scope

■Emissions per unit load (ton-mile: Ocean-going vessels) (Comparison with FY2009*)
■Emissions per unit load (ton-mile: Ocean-going vessels) (Comparison with FY2012*)
*Reduction target benchmark year

Environment Investment Amount (Unit:¥ billion)

	FY2017 (Results)	FY2018 (Results)	FY2019 (Results)
Environment-related R&D activities	5	9	10
Utilization and expansion of existing environmental technologies	8	18	5
Compliance with environmental regulations	31	36	41
Initiatives to save bunker fuel	8	6	6
Initiatives of Group companies	5	4	16
Total	57	73	77

Third-party Verification of CO₂ Emission Data

MOL acquired third-party verification by SGS Japan, Co., Ltd. to ensure the fairness, accuracy, and transparency of FY2019 CO₂ emission data included in this report. The verification was conducted based on ISO14064-3:2006.

Through the third party verification, we will identify issues and enhance our efforts to further reduce CO₂ emissions.

FY2019 Environmental Accounting

Environmental Protection Costs (unit: ¥ million)

Category	Items	Investment	Cost
(1) Costs in business areas
Global environmental protection	Measures to reduce exhaust gas from vessels	2,208	987
	Measures on vessels to preserve the marine environment	3,505	0
	Office related	35	0
Costs for resource circulation	Related to the vessels	23	0
(2) Costs for management activity	Environmental management activities	0	124
(3) Costs for R&D	R&D	0	828
(4) Social activity costs	Social contribution activities	0	0
TOTAL		5,771	1,938

Reference Guidelines
Japan's Ministry of the Environment "Environmental Accounting Guideline (FY2005)" Cost does not include depreciation and amortization expenses.
Tabulation Period
FY2019 (April 1, 2019 to March 31, 2020)
Scope of Tabulation
Head Office and operated vessels of Mitsui O.S.K. Lines, Ltd. (non-consolidated) and ocean-going vessels operated by MOL Group companies in Japan.