As the Idemitsu Group operates in a broad range of regions in Japan and abroad, we are paying close attention to the maintenance of our supply chain, to this end regularly discussing relevant risks and countermeasures. In light of the particular importance of petroleum supply, which supports essential living infrastructure, the Group has implemented the best possible risk countermeasures by, for example, developing a mutual assistance framework involving external companies and strengthening collaboration among subsidiaries, affiliates and subcontractors. By doing so, we are striving to ensure that our supply chain is viable no matter the circumstances, even at times of emergency.

Idemitsu’s petroleum products are transported by land and maritime contract transport companies. To promote safety and strengthen cooperation, the contract transport companies have organized two councils, one related to maritime safety and another related to land safety. We are a special member of both councils. In May 2020, a council of tanker truck operators was reorganized and rebranded “Koun-kai” with 32 contract transport companies constituting its membership. This council of land transport companies holds safety campaigns and training sessions for operations managers and gives awards to crew members boasting accident-free and violation-free operations. Also, in May 2020, the ISG Marine Environment Safety Council was formed from a total of 10 maritime transport companies operating coastal tankers. To promote safe maritime transport, the council carries out safety campaigns through which it ensures the thorough implementation of safety activity policies and specific measures as well as the sharing of best practices and cautionary case studies.

While placing emphasis on promoting safety activities rooted in the workplace, we are working to build a competitive logistics system in addition to enhancing the safety and quality of logistics operations.

Our efforts to this end are not confined to calling attention to the safety, environmental, and quality aspects of operations through these councils. We reach out to tanker truck and coastal tanker crews, who are the people actually undertaking safety operations and safe transportation, listening to their comments and opinions, providing feedback to them, and using their input to inform our activities.

In addition, as a new initiative, seven companies in Japan, including Idemitsu and maritime transport companies, established the e5^* Consortium in May 2020. The consortium focuses on the abundant potential and prospects for EV ships and has brought together the strengths of its participating companies, including technical know-how and networks. The aim is to construct a platform that provides revolutionary maritime infrastructure services as a foundation for EV ships.

• * e5: In the maritime transport industry, providing safe, secure, and quality transport services by realizing the five values of electrification, environment, evolution, efficiency, and economics.