- Structural reforms to core revenue-generating businesses
- Build a strong supply chain and further strengthen stability and competitiveness through collaboration with partners in the core revenue-generating businesses centered on petroleum products and chemicals.
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- Pursuing profits in the petroleum business
(maximizing integration synergies, making refineries more reliable)
- Enabling Nghi Son Refinery to contribute to profits
- Utilizing the Pacific Rim supply chain to capture growing demand in Asia
- Gas development in Southeast Asia
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- Risks
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- Increased use of resources (energy, water, materials and land) by businesses may lead to the consumption of natural capital
- Stagnant energy demand and lower resource prices due to greater energy conservation and economic deceleration caused by, for example, U.S.-China trade tensions
- Unforeseeable events, such as large-scale disasters or pandemics, impacting the supply chain
- Lower profitability due to higher social demand for climate change action
- Opportunities
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- Reduced GHG emissions through the development and promotion of renewable energy
- Contribution to local communities through the stable supply of energy and the job creation on a global scale
- Increasing energy demand in Asia region backed by population growth and economic development
- Higher demand for petrochemical products due to lifestyle changes in Japan and expansion of new markets
- Enhanced competitiveness and realization of stable energy supply through the business integration
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- Expansion of growth businesses
- Expand business scale and scope by strengthening R&D in growth fields such as functional materials and renewable energy, which are becoming increasingly necessary in the world.
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- Expansion of business scale and domains (M&As on a scale of ¥100 billion during the Medium-term Management Plan period)
- Increasing the share of functional materials business to 30% by 2030
- Increasing total power generated from renewable energy overseas to 5GW by 2030 (of which, 4GW is renewable energy)
- Transformation of solar-power business
- Black pellet development (biomass fuel)
- Strengthening development of functional materials utilizing open innovation
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- Risks
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- Consumption of food and plant resources due to development and promotion of biofuels derived from edible sources
- Delayed development of renewable energy due to changes in government policies and programs in Japan and overseas
- Delayed adaptation to changes in the demand structure due mainly to technological advancements and the emergence of new products
- Opportunities
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- Changes in consumption reflecting the creation of high-performance and environmentally friendly products attributable to government policy incentives and technological innovation
- Growing need for energy-efficient products against the backdrop of climate change
- Growing demand for functional materials geared toward EVs, electronic components, AI, and IoT devices
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- Creation of next-generation businesses
- Accelerate technological innovation and innovation beyond organizational frameworks to create new businesses with an eye to the future.
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- Creating new businesses with an eye on social changes, diversifying customer needs, and lessening environmental impact
- Development of next-generation service stations business
- Distributed energy business
- Circular business
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- Risks
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- Delayed action on social issues due to increasing difficulty of market entry by changes in government policy and programs in Japan and overseas
- Potential inability to contribute to industrial and social transformation due to delayed action on technological development and open innovation
- Deterioration in value of new investments due to rapid changes in the business environment
- Opportunities
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- Solutions to social issues through new products and services created through revolutionary R&D and innovation
- Launch of regional revitalization activities leveraging the growing social need for distributed energy, such as a more resilient energy supply in Japan, local production for local consumption, and home energy generation and consumption
- New business development at service stations in Japan that serve as local hubs for day-to-day life
- Ensuring employee growth and job opportunities
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- Harmony with the global environment and society
- low-carbon and circular economy in consideration of climate change risks, and promote diversity and inclusion in partnership with business partners, communities, and employees.
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- Efforts to reduce GHGs (2030: ▲2 million t-CO2 compared to 2017)
- Contributing to the areas where we operate business
- Implementing diversity and inclusion initiatives
- Making work more rewarding for employees
- SDGs educational activities
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- Risks
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- Delayed response to drastically stronger environmental regulations, including on GHG reduction
- Possible difficulty in ensuring a stable supply of energy due to supply chain disruptions caused by large-scale disasters
- Delayed environmental action due to stalled international cooperation and the increased cost of addressing social division
- Impact of increasingly competitive labor market on challenges the Company faces in hiring and retaining employees
- Opportunities
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- Promoting solutions to social issues by advancing the SDGs
- Creating businesses and contributing to solutions through cooperation with local communities
- Expanding business opportunities due to social demand for low carbonization
- Seizing business opportunities by acquiring excellent personnel who support the Group’s vision and policies
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- Progress in governance
- Strengthen governance functions to maintain the trust of shareholders and all other stakeholders.
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- Enhancing the roles and functions of the Board of Directors
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- Risks
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- Potential reputational damage if efforts to introduce appropriate governance functions are abandoned
- Opportunities
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- Enhanced corporate value through highly transparent and fair management
- Business expansion enabled by swift business execution seizing various opportunities
- Appropriate promotion of sustainable growth and the medium-term management plan
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- Acceleration of digital
- innovations
Capitalize on evolving digital technologies to transform existing business processes and management in response to the business environment and customer needs.
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- Utilizing digital technologies to create new value
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- Risks
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- Growing risk of data leaks due mainly to computer viruses and hacking
- Rising initial investment costs due to the introduction of new systems and troubles during the transition
- Opportunities
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- Solutions to social issues through technological innovation
- Lower costs through more efficient operations and higher added value by freeing up time
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