In July 2019, Idemitsu Kosan expressed its support for the ten principles of the U.N. Global Compact (UNGC) concerning human rights, labor, the environment, and prevention of corruption. We also joined the Global Compact Network Japan (GCNJ).
UNGC is a global initiative to urge private enterprises and associations to join efforts to address social issues with the aim of realizing a sustainable society, and they express their intention to participate by signing the compact on their own initiative. GCNJ is a local platform in Japan, and 300 enterprises and associations have joined it. By taking part in both initiatives, enterprises and associations can share expertise, latest trends, and examples of social and environmental activities with other members.
We support the 10 principles on human rights, labor, the environment, and anti-corruption, and raise the awareness of our employees to solve social issues, and as a global energy co-creation company, it will further step up its efforts to create a sustainable society through business operations.
Idemitsu expressed its support for the TCFD (Task Force on Climate Financial Disclosures) recommendations in February 2020. Considering and implementing the risks and opportunities of climate change and their countermeasures in line with the TCFD recommendations are the very essence of our business strategy and we believe that these will lead to contributions to a sustainable society. We will use the TCFD framework to appropriately disclose information to stakeholders and make sincere efforts to address climate change.
Current disclosures on our response to climate change in accordance with TCFD recommendations are as follows:
|Governance||The Safety & Environmental Protection Headquarters manages environmental issues including climate change. The Safety & Environmental Protection Headquarters reports the important issues of climate change to the Board of Directors and they can be oversighted by the Board of Directors.|
|Strategy||Based on scenario analysis including 2-degree scenario, we are considering risks and opportunities in the low-carbon society.|
|Risk management||The Safety & Environmental Protection Headquarters identifies and assesses risks, reports to Management. We are also developing the ESG governance system to manage risks comprehensively.|
|Metrics and Targets||We manage CO2 reduction targets and monitoring indicators.|
In November 2020, we joined IPIECA (International Petroleum Industry Environmental Conservation Association). This association is an international organization that examines how to respond to environmental and social issues in the oil and gas industry. Oil and gas companies, including oil majors in Europe and the United States, and industry groups from each country are members of this association, and we are working in collaboration with external groups such as the United Nations, NGOs, universities and research institutes. Through IPIECA, we understand the sustainability issues that companies should address and are involved in solving them from a global and diverse perspective.
We joined the ESG Information Disclosure Study Group in November 2020. The purpose of this study group, which was launched in June, 2020 is to help create a mechanism that harmonizes the sustainable development of society with the company growth through research on the appropriate way of ESG information disclosure. By participating in it, we strive to improve mutual understanding with stakeholders.
Idemitsu has joined the Japan Clean Ocean Material Alliance (CLOMA), which aims to solve the marine plastic problem. In addition, the group company Idemitsu Unitech Co., Ltd. also joined the alliance. CLOMA was established on January 18, 2019 to accelerate initiatives that span different industries, such as those focused on properly managing plastic waste, promoting the three Rs,* and spurring development of alternative materials. We aim to provide safe, stable energy and materials and is actively engaged in environmental conservation activities, including those aimed at solving the marine plastic waste problem, thereby helping build a sustainable society.
Idemitsu Unitech participated as a member company in a CLOMA seminar held on September 5, 2019 and was able to spark communication among member companies by announcing its stance on the marine plastic waste problem, which is a major topic at the moment, and showcasing eco-friendly products it has developed. The company received a lot of feedback on the products it exhibited that day, specifically various products that incorporate eco-friendly raw materials and zipper tape for mono-material packages. Idemitsu Unitech, which manufactures and sells packaging-related products, considers addressing environmental problems a key issue and will continue to take proactive initiatives going forward.
Idemitsu participates in the Japan Initiative for Marine Environment (JaIME), which was established by five groups in the chemicals industry: Japan Chemical Industry Association, The Japan Plastic Industry Federation, Plastic Waste Management Institute, Japan Petrochemical Industry Association, and Vinyl Environmental Council. JaIME promotes a wide range of activities, including the gathering of scientific knowledge on plastic waste and responding to enhanced management in Asian countries. We will actively contribute to the response of the newly emerging marine plastics problems throughout the chemical industry.
Idemitsu is a corporate partner with the e’s Future Co-Creation Forum and cross-industry workshops helmed by Junko Edahiro, who is well versed in global environmental problems, does consulting on CSR and CSV management for many Japanese companies, and frequently advises national governments and local authorities. Ms. Edahiro regularly holds workshops that serve as a place to facilitate co-creation across industries and sectors, as she is able to tap her network in Japan and overseas to invite experts in the environment, CSR, and sustainability from companies, governmental agencies, NPOs, NGOs, and other organizations. By participating in these workshops alongside other partner companies and organizations (51 total as of April 2020), we are garnering useful feedback on our own activities and gaining valuable knowledge and the latest information on various pressing issues, such as climate change and energy.