We formulated the “Crisis Response Rules” as the highest rules for crisis response. These rules stipulate our policy on crisis response, crisis level definitions, reporting lines, and methods for establishing emergency task forces, among other matters related to crisis response.

Should an incident occur at any facility run by a group entity, the business unit responsible for the incident site will swiftly relay the ascertained risk-related information will be swiftly reported to the business unit responsible for the incident site and the General Affairs Department’s Risk Management Section in accordance with these rules. This risk-related information will also be communicated to the Risk Management Committee as necessary. Furthermore, corporate and other relevant departments will work to assist or spearhead risk countermeasures undertaken at the incident site to minimize the social impact and potential damage. These departments also act in collaboration with external stakeholders, including fire, police, and other public safety departments as well as municipalities and customers.

We formulated BCPs assuming the occurrence of an earthquake with an epicenter in the Tokyo metropolitan area, a megathrust earthquake involving the Nankai trough, and the outbreak of avian influenza, respectively. Based on said BCPs, we have held annual comprehensive disaster drills and confirmed problems regarding actual execution and coordination among all business bases in order to strengthen our practical response capabilities and have reflected appropriate revisions to the BCPs. Also, each refinery, complex and plant carries out periodic disaster prevention drills encompassing their entire site in accordance with applicable crisis response regulations.

In FY2015, Idemitsu was appointed as a designated public institution by the Cabinet Office and we accordingly announced the Disaster Prevention Action Plan. This plan was updated in conjunction with management integration, with the latest edition being submitted to the relevant authorities in December 2019. As a designated public institution, we worked to ensure that the tanker trucks we operate in each prefecture have been registered for emergency use.

Idemitsu’s Disaster Prevention Action Plan is posted on the Cabinet Office’s disaster prevention information website (Japanese only).

Based on our BCP assuming the outbreak of avian influenza, in February 2020 we established a task force headed by the President and Representative Director. Aiming to ensure the stable supply of petroleum products and materials, which are essential to supporting economic and social activities, we have constantly updated our relevant policies and measures in light of changes in social conditions. At the same time, we rallied the Group’s overall strengths to protect the safety of employees and implemented thoroughgoing countermeasures to prevent the spread of infection.

In January 2020, Idemitsu became the first oil refiner and primary oil distributor to receive the highest “Rank A” rating awarded by the Development Bank of Japan (DBJ) under the DBJ BCM Rated Loan Program. This program provides a loan menu that incorporates Business Continuity Management (BCM) ratings. Using a proprietary screening system, DBJ assesses disaster prevention measures and BCPs in place at prospective borrowers’ facilities and offers loan conditions that favor borrowers deemed excellent based on the assessment results. The ratings are classified into three grades from “Rank C” to “Rank A.” We were granted “Rank A: an outstanding company in terms of disaster prevention and business continuity initiatives” thanks to high evaluations in the three areas that follow.

1. Under the commitment of the top management, we have established a risk management system that covers all-risk hazards, including geopolitics and cyber risks. Employees work with management to strengthen the Company’s resilience to risks via, for example, risk control through prior investment in addition to the preparation of various risk financing methods based on the analysis of financial impact at the time of risk occurrence.
2. As we are aware of our social mission of maintaining oil supply and believe that its disruption can affect people’s lives, we have thoroughly implemented industry-leading quake-resistance measures. As part of these efforts, we have introduced risk engineering survey methods employed by our overseas peers to undertake safety and disaster prevention inspections and implemented robust countermeasures in conformity with global standards. In addition, we have established a system to ensure continued oil supply across Japan based on the “Plan for Joint-Operations of Oil Supply in Disasters,” which is an industrial cooperative framework for emergency supply.
3. We work to constantly improve our BCPs by implementing various drills involving outside stakeholders, including Japan’s Self-Defense Forces (SDFs). We also work to improve the effectiveness of emergency response via, for instance, the enhancement a human resource development system to support sophisticated risk management.