Idemitsu Group’s Sustainability

Sustainability Initiatives

Idemitsu Group Sustainability Policy

We established our Sustainability Policy in 2021. We lay out clearly initiatives related to sustainability in the aim of bringing the entire Idemitsu Group together to contribute to the resolution of environmental and social issues.

Idemitsu Group Sustainability Policy

As a reliable partner , the Idemitsu Group fulfills the following three responsibilities through its business activities: "Protect the Environment and Lifestyles," "Support Regional Communities," and "Provide for Society with Technological Capabilities." The Idemitsu Group discloses information appropriately , engages in earnest dialogue and collaboration with stakeholders, and aims to enhance its corporate value while remain ing a sustainable company that observes the following priority policies.

  • While fulfilling the Idemitsu Group’s crucial social mission of maintaining the stable supply of energy and materials, we continue striv ing to realiz e carbon neutrality not only with in the Idemitsu Group but also throughout society.
  • We promote the development of innovative technologies, pursue advance mitigat ion of environmental risks in our business activities , and contribute to the conservation of the natural environment , as well as the realization of a circular economy.
  • The Idemitsu Group places the highest priority on respect for human rights in all its decisions and actions, and strives in its business activities to prevent and ameliorate adverse impacts on human rights.
  • By implementing diversity and inclusion measures w e leverage our diverse capabilities to grow as a company and contribute to the realization of inclusive societies.
  • Working together with our partners, we contribute to the realization of a sustainable society throughout the supply chain.
  • We make maximum use of our resources to co create solutions that meet the needs of regional communities.
  • The Idemitsu Group s eek s to enhance deliberations by the Board of Directors and continues to improve its effectiveness.
  • We comply with international norms concerning the environment, human rights, labor, safety, and anticorruption.
  • We conduct fair and honest management, identify material risks, and implement appropriate risk management measures.

This policy has been approved by the Board of Directors of Idemitsu Kosan Co., Ltd.

Effective: October 19, 2021

出光興産, DFF Inc.

Promotion System

With our core business being energy, we believe that sustainability is the very definition of a management issue.

In addition to core ESG issues such as climate change and human rights, the various issues of each business are also closely tied to sustainability. We have a structure in place for all agenda items to be discussed by the Management Committee. The President & Representative Director serves as chair of the Management Committee, and the details discussed are reported to the Board of Directors as appropriate.

Furthermore, the Corporate Sustainability Office, which is dedicated to matters pertaining to sustainability, has been established within the Corporate Planning Department. Although each ESG issue is overseen by a designated department, the Corporate Sustainability Office is involved across departments to coordinate and promote sustainability management at Idemitsu.

The Corporate Sustainability Office puts together a summary of progress on sustainability issues and reports to management at least once a year, and the details are submitted by the supervising departments to enable sufficient discussion and monitoring of sustainability by management.

出光興産, DFF Inc.

Materiality (Key Challenges)

Materiality (Key challenges)

Since identifying materiality in 2019, the Idemitsu Group has been engaging in business activities based on recognition of the social issues important to Idemitsu.

Recently, the Vision for 2050 and the Medium-term Management Plan were established, and based on the changes in the external environment, we conducted a review of materiality.

(Key challenges)
KPI / Progress management Major related SDGs
1 Contribute to carbon neutrality / circular society
  • Reduce CO2 (Scope1+2)
  • Contribute to Scope 3
  • Investments / business strategy
  • ROIC, targeted earnings
11 12 13 14
2 Contribute to regional society (energy and mobility)
  • Investments / business strategy
  • Number of customers
7 9 11
3 Maximize employee growth and engagement
  • Idemitsu Engagement Index
  • Investments in training per employee
5 8
4 Expanding D&I
  • Female recruiting ratio
  • Male ratio taking childcare leave
  • Female ratio in managerial positions
5 10
5 Acceleration of digital innovations
  • DX investments
  • Enhancement of productivity
8 9 11
6 Progress in governance
  • Effectiveness of the Board of Directors
7 Ensure the health, safety, compliance and human rights
  • Management health indicators
  • Human rights due diligence
  • Major compliance violations
  • Safety indicators (# accidents, etc.)
10 16
Materiality (key challenges) identification process

While emphasizing continuity with the materiality identified in 2019, we reviewed materiality using the process below to reflect changes in the internal and external environment as well as to achieve the targets of the Medium-term Management Plan and the Vision.

Step 1
Identification of the issues
With reference to such international guidelines as the GRI Standards and evaluation criteria of the SDGs and ESG evaluation organizations, we identified environmental and social issues that may be related to our business activities.
Step 2
Confirmation of their importance to stakeholders
We conducted a wide-ranging survey to determine each issue’s importance to stakeholders, both internal and external.
Step 3
Alignment with the corporate strategy
We ensured consistency with the Medium-term Management Plan, verifying the priority level and relevance of each issue.
Step 4
Management discussions and decisions
Final decisions were made after discussion via the Management Committee chaired by the President.
Review of materiality
  • Re-evaluate the importance of sustainability issues from the perspective of double materiality in light of changes in the internal and external environment since 2019
  • Carry out weighting of Idemitsu’s impact on social and environmental issues and the impact of social and environmental issues on Idemitsu
  • Make decisions after deliberation by management, dialog with outside experts, and discussion by the Management Committee
Correlations between materiality (key challenges) and the SDGs

We seek to contribute to achieving the SDGs as a member of the international community.

We recognize that our activities concern all 17 of the SDGs. At the same time, from among the material issues we recently identified, we have recognized and sorted the SDGs where we can make a larger difference and the SDGs requiring attention due to risks arising from our business activities.

SDGs where we make a larger difference
5 7 8 9 11 13
SDGs requiring attention due to risks arising from business activities
6 12 13 14 15

The Idemitsu Group will engage in technological development to promote initiatives to minimize or negate our negative impact on social issues and implement them through our business.

出光興産, DFF Inc.

Participation in the Initiatives / Business-Academia Alliances

Participation in the initiatives
Signing of the United Nations Global Compact and initiatives

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.

The 10 Principles of the UN Global Compact
Human Rights
  • Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
  • Principle 2: make sure that they are not complicit in human rights abuses.
  • Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
  • Principle 4: the elimination of all forms of forced and compulsory labour;
  • Principle 5: the effective abolition of child labour; and
  • Principle 6: the elimination of discrimination in respect of employment and occupation.
  • Principle 7: Businesses should support a precautionary approach to environmental challenges;
  • Principle 8: undertake initiatives to promote greater environmental responsibility; and
  • Principle 9: encourage the development and diffusion of environmentally friendly technologies.
  • Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

United Nations Global Compact Website
Global Compact Network Japan (GCNJ) Website (Japanese only)

Support for TCFD recommendations

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.

For more details, please refer to "Governance"

Strategy Based on scenario analysis including 2-degree scenario, we are considering risks and opportunities in the low-carbon society.

For more details, please refer to "CN transition strategy"

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.

For more details, please refer to "Risks and opportunities"

Metrics and Targets We manage CO2 reduction targets and monitoring indicators.

For more details, please refer to "Metrics and Targets"

TCFD Website

Participation in IPIECA

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.

Participation in the GX League

We have joined the GX League which has been established based on the GX League Basic Concept announced by the Ministry of Economy, Trade and Industry. The GX League was established as a forum for companies proactively tackling green transformation (GX) looking ahead to achieving carbon neutrality and transforming society by 2050. It is a place for those companies to hold discussions to transform the entire economic and social system and to put the fruits of those discussions into practice to create new markets in cooperation with the government, educational institutions and financial institutions. We want to contribute to the realization of a carbon neutral and circular society by participating in the GX League.

Participation in ESG Information Disclosure Study Group

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.

ESG Information Disclosure Study Group Logo
Participating in the Japan Clean Ocean Material Alliance (CLOMA)

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.

  • * Three Rs: Reduce. Reuse. Recycle.
Japan Clean Ocean Material Alliance (CLOMA) Logo
Participating in JaIME

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.

Business-academia alliances
Initiatives with Tokyo University

As an energy company, we engage in global activities to lead society toward a sustainable path. Since February 2007, we have been dispatching researchers to the University of Tokyo Integrated Research System for Sustainability Science (currently Institute for Future Initiatives), with the aim of helping craft sustainable energy strategies.

As a part of these efforts, we run the Energy Sustainability Forum. This new framework for collaborative research between business and academia promotes sustainability science with the aim of solving global environmental and energy problems and realizing a sustainable society. On February 25, 2019, we jointly held the 14th Energy Sustainability Forum’s public symposium entitled, “A Sustainable Energy Society that Aims to Achieve the SDGs.” Through panel discussions and lectures featuring experts and business veterans, we got people talking about their vision for a sustainable energy society that aims to achieve the SDGs and initiatives to help create that kind of society.

Participating in Chuo University Graduate School’s Project to Research and Promote Work-Life Balance and Diversity

Since fiscal 2020, Idemitsu has participated in Chuo University Graduate School’s Project to Research and Promote Work-Life Balance and Diversity. The project was launched in 2008 with the aim of exchanging information and assessing specific measures for achieving work-life balance and realizing workplaces and communities where diverse human resources can reach their full potential. With the aim of promoting diversity and inclusion within the company, Idemitsu is gathering data on companies taking progressive measures related to work-life balance, work styles, and the promotion of diversity and inclusion as well as hearing advice from experts and networking with other companies.

出光興産, DFF Inc.

Dialogs with Stakeholders

Our Group will continue striving to create new value together with our stakeholders.

We organize the stakeholders based on consideration of the impact we have on them and the impact we receive from them in terms of the environment, society, and economy. We conduct engagement activities by also considering the interests of each stakeholder and the degree of impact on the future, including risks.

We think high transparency in disclosing information to stakeholders builds relationships of trust and leads to creating value. Our Group strives to be thorough in compliance and in managing safety and quality. When a problem occurs, we disclose information on our website and disclose the appropriate information in a timely manner through a press release or other form, even when the information is negative for us.

We will enhance corporate value and contribute to social development through responsible dialogue with a diverse range of stakeholders.

Creating value with stakeholders
Stakeholders Initiatives Details
All Information disclosure via website
  • We operate an official website to provide our stakeholders with timely corporate disclosure of the latest information on the activities of Idemitsu Group. Contacts are also presented on the website to accommodate various types of inquiries as part of our proactive communication efforts.

    Official Website

PR activities through advertising and publicity
  • We constantly engage in advertising activities to enhance the general public’s understanding of the business operations and other initiatives being undertaken by the Idemitsu Group.
PR brochure
  • We produce a seasonal PR brochure four times a year to communicate information on our businesses and initiatives, and produce a printed brochure along with posting the digital brochure on our website. These brochures are distributed to our clients in Japan and overseas, dealers, relevant parties in the communities surrounding our sites in Japan, and to the members of the Idemitsu alumni association (Koyukai) and the company social club (Shayukai).
Shareholders and investors Information disclosure to individual investors
  • In regions around Japan, we hold corporate briefings while participating in IR events for individual investors, with the Executive Officer in charge of IR, the General Manager of the Finance & Accounting Department and other personnel giving presentations on the business overview, management strategies, and operational status.
  • The annual general meeting of shareholders is held in June.
Holding briefings for and individual meetings with analysts and institutional investors.
  • In addition to quarterly financial results briefings, we also hold individual IR meetings and small meetings with analysts.
  • Top management team members visit institutional investors in Europe, the United States, and Asia to update them on our management strategies and operational status.
(Individual consumers)
Customer center counters in place
  • We respond to inquiries that require specialized technological expertise regarding petroleum, lubricants, and other products while accepting a wide range of other inquiries. We also accept complaints about service and customer reception at service stations and tanker truck incidents. Inquiries and complaints receive proper treatment and a quick response through the customer center, via collaboration with relevant departments, and are utilized to make necessary improvements.
  • We also promptly cooperate with relevant departments to respond appropriately when receiving concerns or reports regarding Idemitsu’s other business activities.
    Customer center counters
PR activities through advertising and publicity
  • We constantly engage in advertising activities to enhance the general public’s understanding of the business operations and other initiatives being undertaken by the Idemitsu Group.
Corporate customers Holding customer seminars
  • We maintain close communication with corporate clients and promote the development of products and solutions suited to their needs. Our branches throughout Japan hold seminars for corporate clients to deliver information on the latest technical trends and legal regulations in the energy-saving and environment-related fields, as well as on other topics directly useful to their operations.
Partner companies Collaboration with partners
  • We work to create value through cooperation with our partner companies. We work to realize mutual sustainable development by having common goals, policies, guidelines, etc.
NPOs, NGOs, and research organizations Participation in initiatives, etc
  • We join in and collaborate on various kinds of initiatives to gather information and work together on resolving social issues.
Country and community Holding community briefing sessions
  • We hold community briefing sessions at least once a year. In doing so, we invite heads of neighborhood associations and other representatives from communities in the vicinity of our refineries, complexes, and plants. We explain our safety and environment-related efforts and hear the opinions of the attendees.
Implementation of environmental education
  • We hold environmental classes focused on global warming, climate change, and other environmental concerns to help elementary school students and other young people from communities near our refineries, complexes, and plants deepen their understanding of these topics.
Implementation of environmental protection activities
  • We participate in cleanup activities in the vicinity of refineries, complexes, and plants, as well as local forest and beach conservation activities. In addition to contributing to local communities, these activities facilitate interaction between employees.
Employees Next Forum
  • In a concerted effort to create an even better company, we hold this forum twice a year to provide a place for employees to engage in direct dialog with top management and exchange their opinions and proposals with regard to company-wide issues.
    Forum members appointed by each department engage in direct dialogue with top management to deliver real voices regarding issues at the workplace.
Holding Townhall Meeting, a platform where all employees can directly have a dialog with top management
  • We have been conducting townhall meetings since FY2020 as a place for our employees to directly engage in dialog with top management. Top management shares information and engages in direct dialog with all employees regarding various management issues.
  • We have also held quarterly mini-townhall meetings since November 2021 to brief employees on financial results. Various other opportunities are provided to engage in dialog with company executives.
Conducting an employee engagement survey
  • We conduct this survey on an annual basis to quantitatively and continuously analyze employee engagement, mutual trust, and a sense of unity. A total of 11,177 employees of Idemitsu and its affiliated companies in Japan and overseas (response rate: 95.8%) participated in the survey from late July to early August FY2022.
Communicating information via Group bulletins, in-house signage, the intranet, etc.
  • We added a comment function under the Group bulletin (posted on the intranet) to help enhance two-way communication. Various kinds of information are communicated through in-house signage, including information on the company’s businesses, compliance and health management, and the results of the Employee Engagement Survey.
Announcement of the Multi-stakeholder Policy
Multi-stakeholder Policy

We believe it is important to co-create value in our corporate management together with diverse stakeholders including our employees, dealers, business partners, partner companies, creditors and local communities in addition to our shareholders. Based on that belief, we engage in appropriate collaborations with multi-stakeholders. In addition, we think it is important to give back to our employees and to give consideration to our business partners from the perspective that appropriately distributing profits and results produced through the co-creation of value and improved productivity to multi-stakeholders will lead to maintenance in the momentum of wage raises and sustainable economic development. Based on that idea, we will work on the following initiatives.

  1. Giving Back to Our Employees
    We have advocated the idea of “people are capital” and “People-Centered Management ” since our foundation. Placing our human resource strategy at the core of our management strategy and establishing the growth of people as a management objective, we will work to achieve sustainable growth and improved productivity through focused investment of our management resources in growth fields and the development of the abilities of our employees and an improvement in their skills. We will focus on business structure reforms and the maximization of added value to realize a carbon neutral and circular society. On top of that, we will raise wages through appropriate methods in light of our situation in accordance with the main principle of wage determination based on the profits and results we produce. Together with that, we will aim to sustainably give back to our employees by proactively working mainly in human resource investment so as to contribute to greater employee engagement and further improved productivity as comprehensive improvement in labor conditions in addition to wage raises.
    (Individual Item)
    We will sincerely work to raise wages in light of social conditions and the operating environment. Moreover, we will set KPIs for each item of employee engagement, D&I and amount invested in education per employee based on the human resources strategy in our Medium-term Management Plan (FY2023-2025) we announced in FY2022 in regards to our human capital investment. Upon that, we will strive to grow organizations and people w ith our priority themes of “resonance with the Management Philosophy / Vision,” “expanding D&I” and “bring out the full potential of each individual.” Specifically, we will deploy extensive measures. For example, we will hold round-table discussions to instill our Mmanagement Pphilosophy and Ttown hall Mmeetings to share management information. We will engage in unconscious bias dialogues and provide inclusion training aimed at the inclusion of different values. We will create opportunities for our employees to proactively interact with people outside our company and provide cross-border learning to expand horizons and perspectives. We will also dispatch our employees to tough assignments to develop next-generation managers.
  2. Consideration for Our Business Partners
    We will continue to work to comply with the contents of the Partnership Building Declaration.

We will continue to steadily work on these initiatives while confirming the situation surrounding them for these items.

April 19, 2023

Idemitsu Kosan Co.,Ltd.
Representative Director,
President and Chief Executive Officer
Shunichi Kito

Details of the Partnership Building Declaration are provided here.

Customer center initiatives

At the Idemitsu Customer Center, we strive to carefully listen to customer feedback.

We don’t just respond to customer inquiries; to make people feel glad they called, we strive to achieve the following and thereby provide exceptional service.

  • Provide simply worded explanations
  • Reliably provide what customers seek
  • Maintain and enhance Idemitsu’s brand message

In addition, to sincerely address customer feedback, we are working to improve the quality of our responses through regular training.

Number of inquiries and complaints received by customer center counters (FY2022)
  • Unit: cases
Total number of inquiries received 12,372
  Inquiries 9,012
Complaints 1,357
Proposals 202
Awards 377
Others 1,464
出光興産, DFF Inc.