2022.04.07
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Special Feature : For People, Society and the Earth Vol.2
What is the current situation for Mitsubishi Materials and which direction should it take?
To realize a sustainable society, what should Mitsubishi Materials Corporation be focusing on? What type of potential do the business and initiatives of the company have? We interviewed Mr. Kenji Fuma, an expert in sustainability management and ESG investments.
CEO, Neural Inc.
Kenji Fuma
Profile: Kenji Fuma
He founded a sustainability management and ESG investment advisory company in 2013, of which he currently serves as CEO. Its clients are listed on the first section of the Tokyo Stock Exchange and major financial institutions. He also serves many startups and venture capital companies as an adviser. His company is one of the United Nations Principles for Responsible Investment (PRI) signatories. He has given lectures on ESG investments, sustainability management, and the financial risks from climate change to the World Bank, United Nations University, etc. He has been interviewed by numerous media outlets such as CNN, Financial Times, Weekly Economist, Washington Post, NHK, Nippon Television Network, TV Tokyo, TBS Radio, Nippon Keizai Shimbun, Mainichi Shimbun, and Forbes. He is the editor-in-chief of the news website Sustainable Japan.
What is “ESG”, a concept critical for the sustainable growth of companies?
――Q: In recent years, we have been seeing “ESG” mentioned more and more with regard to business activities. What exactly is ESG? Why is it attracting attention now?
The acronym “ESG” first appeared in 2006. While studying in the US from 2010 to 2012, I personally witnessed ESG investments becoming a robust trend and saw that they were essential for corporate growth. However, ESG only became popular in Japan over the last few years. This was due to late responses in the financial market. ESG finally began to be recognized by the public when the largest institutional investor in Japan, GPIF (Government Pension Investment Fund) started stock investments based on the ESG index in 2017.
ESG is a very important element for companies to achieve sustainable growth. Unless companies incorporate this viewpoint into management, they are likely to lose support from customers and other stakeholders, which might affect their business continuity. A typical example of this is the field of coal fired power generation. As alarms have been raised over GHG gas emissions and other issues for a long time in the field, the business environment is likely to become even more difficult going forward. For the same reason, the automobile industry is now facing a major turning point. The world of manufacturing is in the midst of drastic changes mainly from an environmental and social perspective. It is being called the 5th Industrial Revolution, with many companies seriously considering their future business directions.
The acronym “ESG” first appeared in 2006. While studying in the US from 2010 to 2012, I personally witnessed ESG investments becoming a robust trend and saw that they were essential for corporate growth. However, ESG only became popular in Japan over the last few years. This was due to late responses in the financial market. ESG finally began to be recognized by the public when the largest institutional investor in Japan, GPIF (Government Pension Investment Fund) started stock investments based on the ESG index in 2017.
ESG is a very important element for companies to achieve sustainable growth. Unless companies incorporate this viewpoint into management, they are likely to lose support from customers and other stakeholders, which might affect their business continuity. A typical example of this is the field of coal fired power generation. As alarms have been raised over GHG gas emissions and other issues for a long time in the field, the business environment is likely to become even more difficult going forward. For the same reason, the automobile industry is now facing a major turning point. The world of manufacturing is in the midst of drastic changes mainly from an environmental and social perspective. It is being called the 5th Industrial Revolution, with many companies seriously considering their future business directions.
Possibilities for Mitsubishi Materials to shine bright in a turbulent age
――Under such an environment, how do the businesses of Mitsubishi Materials look?
Copper and other non-ferrous metals, as well as the rare metals that Mitsubishi Materials mainly deals with, are anticipated to be a field where favorable winds will blow, thanks to factors like the spread of electric vehicles. However, you should avoid relaxing your guard, as competition among copper-related companies will become even more intense. What is most important here is to understand the environment surrounding copper. Where and how is copper mined and how is it sold? It will not be possible to survive in the copper business, where competition is becoming harsher, unless you are aware of the construction of a supply chain that is efficient on all fronts, including environmental and social impacts, costs, and stable procurement.
This said, what I expect from Mitsubishi Materials is the recovery of copper from urban mines (E-Scrap).
It is said that the supply of copper will not be able to keep up with the increasing demand, and there will be an emphasis on finding out how to efficiently recover and recycle copper. To prepare for this new age, competitors are vying for the lead in terms of copper recovery technology. If Mitsubishi Materials can overcome this competition, it will be possible to become the world’s leading company.
However, just recycling copper will not be sufficient. On the assumption that recycled copper, which has a higher cost than usual due to resource collection, resolution, and recycling, should be offered at the same cost and quality as virgin copper, any additional values that Mitsubishi Materials can offer will become critical for the company to sustainably grow. In addition to establishing new technologies and collection and sorting models, Mitsubishi Materials will need technologies to improve consumption and collection efficiencies, such as manufacturing products with a quality comparable to that of conventional types with a small amount of copper, making products have simpler structures for easier recycling, and others . In this regard, MEX, the new E-Scrap business platform operated by Mitsubishi Materials, is a very interesting initiative.
Such new viewpoints will become indispensable for product development going forward. In the US, a certain company has already developed a cutting-edge technology to recover copper from coaxial cables and started a business. Maybe for materials whose recycling has been said to be impossible, difficult or involve huge costs, Mitsubishi Materials may find value in addressing the challenge of their recycling. If this is possible, it will be an overwhelming advantage. In this case, the wide range of recycling technologies that Mitsubishi Materials has cultivated over the years will surely gain the upper hand.
Copper and other non-ferrous metals, as well as the rare metals that Mitsubishi Materials mainly deals with, are anticipated to be a field where favorable winds will blow, thanks to factors like the spread of electric vehicles. However, you should avoid relaxing your guard, as competition among copper-related companies will become even more intense. What is most important here is to understand the environment surrounding copper. Where and how is copper mined and how is it sold? It will not be possible to survive in the copper business, where competition is becoming harsher, unless you are aware of the construction of a supply chain that is efficient on all fronts, including environmental and social impacts, costs, and stable procurement.
This said, what I expect from Mitsubishi Materials is the recovery of copper from urban mines (E-Scrap).
It is said that the supply of copper will not be able to keep up with the increasing demand, and there will be an emphasis on finding out how to efficiently recover and recycle copper. To prepare for this new age, competitors are vying for the lead in terms of copper recovery technology. If Mitsubishi Materials can overcome this competition, it will be possible to become the world’s leading company.
However, just recycling copper will not be sufficient. On the assumption that recycled copper, which has a higher cost than usual due to resource collection, resolution, and recycling, should be offered at the same cost and quality as virgin copper, any additional values that Mitsubishi Materials can offer will become critical for the company to sustainably grow. In addition to establishing new technologies and collection and sorting models, Mitsubishi Materials will need technologies to improve consumption and collection efficiencies, such as manufacturing products with a quality comparable to that of conventional types with a small amount of copper, making products have simpler structures for easier recycling, and others . In this regard, MEX, the new E-Scrap business platform operated by Mitsubishi Materials, is a very interesting initiative.
Such new viewpoints will become indispensable for product development going forward. In the US, a certain company has already developed a cutting-edge technology to recover copper from coaxial cables and started a business. Maybe for materials whose recycling has been said to be impossible, difficult or involve huge costs, Mitsubishi Materials may find value in addressing the challenge of their recycling. If this is possible, it will be an overwhelming advantage. In this case, the wide range of recycling technologies that Mitsubishi Materials has cultivated over the years will surely gain the upper hand.
Turning “For People, Society and the Earth” toward all suppliers
――Finally, please give a message to our employees.
What I would like to say to your employees is to perceive things from a broader perspective. Mitsubishi Materials has a corporate philosophy of “For People, Society and the Earth.” Upon hearing this phrase, one tends to only think about how one can contribute to society by themselves. However, even if each of you takes the right actions, you cannot be proud of your work unless you improve the social and environmental impacts of suppliers involved in the products. It is necessary to really comprehend the degree to which suppliers are taking action, as well as your company, and improve things together. I would like you to be engaged in operations while asking yourself if the corporate philosophy is materialized across the value chain as well as at your company. The future depends on your efforts. I have high hopes for the roles Mitsubishi Materials will play from now on.
What I would like to say to your employees is to perceive things from a broader perspective. Mitsubishi Materials has a corporate philosophy of “For People, Society and the Earth.” Upon hearing this phrase, one tends to only think about how one can contribute to society by themselves. However, even if each of you takes the right actions, you cannot be proud of your work unless you improve the social and environmental impacts of suppliers involved in the products. It is necessary to really comprehend the degree to which suppliers are taking action, as well as your company, and improve things together. I would like you to be engaged in operations while asking yourself if the corporate philosophy is materialized across the value chain as well as at your company. The future depends on your efforts. I have high hopes for the roles Mitsubishi Materials will play from now on.
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