We will reduce our greenhouse gas emissions while pursuing energy transition and a circular economy to contribute to the reduction of society’s greenhouse gas emissions.
The Group established its target for carbon neutrality in 2019, well ahead of other companies. Subsequently, based on trends in Japan and overseas, we formulated a new Carbon Neutrality Plan at the same time as the third Medium-Term Management Plan and announced it in May 2023.
This plan summarizes the Group’s Long-Term Vision and the third Medium-Term Management Plan from the perspective of carbon neutrality, and sets policies, quantitative greenhouse gas reduction targets, specific measures, and roadmaps for FY 2025, 2030, and 2040.
The plan consists of two pillars; namely, reduction of our greenhouse gas emissions and contribution to the reduction of society’s greenhouse gas emissions. As for the former, we aim to achieve carbon neutrality in terms of Scope 1*1+2 emissions by FY 2040 and minimize business costs (risks) in preparation for future carbon price increases. The latter clearly articulates the pillars (opportunities) of our future business, specifically, to work on energy transitions and a circular economy in the materials and services field, aiming for net zero Scope 3*1 emissions by FY 2050.
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Scope 1: direct emissions from corporate activities, Scope 2: indirect emissions from energy use, Scope 3: indirect emissions from supply chain
Conceptual Diagram of Carbon Neutrality PlanENEOS Group's Carbon Neutrality Plan
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Reduction of Our Greenhouse Gas Emissions
Preparation for Future Increases in Carbon Prices
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Aim for the realization of carbon neutrality in our emissions (Scope 1+2) by FY2040.
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Aim for the reduction of greenhouse gases by 46% (compared to FY2013) by FY2030.
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To achieve carbon neutrality, we will broadly engage in the reduction of greenhouse gas emissions, CCS (carbon dioxide capture and storage), and CO₂ removal (absorption by forests, etc.).
ENEOS Roadmap for Reduction of ENEOS Group Greenhouse Gas EmissionsSeethe ESG Data Book for results.
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Main Initiatives
Reduction of Green House Gas Emissions
To reduce emissions at refineries, ENEOS introduced a CO₂ visualization system that enables us to centrally manage our CO₂ emissions company-wide, and the system was designed to enable us to calculate the carbon footprints (CFP) for each product. This is the first time a Japanese oil company has made efforts to calculate CFP using real data obtained from refineries.
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Artificial Fixation of CO₂
For CCS projects in Japan, in February 2023, ENEOS, ENEOS Xplora, and J-Power jointly established West Japan Carbon dioxide Storage Survey Co., Ltd. to conduct a large-scale CO₂ storage project off the coast of western Kyushu. This project has been selected for the fiscal 2023 “Survey on the Implementation of Advanced CCS Projects” by Japan Organization for Metals and Energy Security (JOGMEC). Following these efforts, in April 2023, ENEOS Xplora acquired the shares of Japan Drilling Co., Ltd., which has the injection well drilling technology needed for CO₂ storage, and made it a consolidated subsidiary.
Overseas, we are also conducting joint studies with state-run oil companies and others and considering participation in overseas CCS projects.CCS/CCUS (Capture, Storage, and Utilization of CO₂) -
Increase of Natural Absorption of CO₂
Concerning forestry projects in Japan, following J-Credit creation agreements with Niigata Public Corporation of Agriculture and Forestry and Kumakogen Town, Ehime, we started initiatives with Nippon Life in cooperation with Mori Town, Hokkaido in November 2023, and with Wakayama Mori To Midori No Kousha, General Inc. Association in June 2024.
Internationally, we invested in a US forestry fund formed by the Sumitomo Forestry Group in July 2023.
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Contribution to the Reduction of Society’s Greenhouse Gas Emissions
Carbon Neutrality as a Pillar of Future Business
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Working in step with the government and other companies, aim for the realization of carbon neutrality, including Scope 3, by FY2050.
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In the energy area, we aim to halve CO₂ emissions per unit of energy supplied (CI*2) by around FY2040 by promoting energy transition through expansion of renewable energy and early practical implementation of hydrogen and carbon-neutral fuel.
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In the materials and services area, we will develop a circular economy and expand of avoided emissions through conversion of raw materials, etc.
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Carbon Intensity
Roadmap for the Reduction of Greenhouse Gas Emissions of SocietyMain Initiatives
Carbon Intensity (CI) Targets for the Energy Supplied by the ENEOS GroupPromoting Energy Transition
We have set new carbon intensity (CI) targets to accurately express and put into practice the Group’s goal of contributing to the reduction of greenhouse gas emissions in society.
CI is an indicator of CO₂ emissions per unit of energy supply (Scope 1+2+3). It cannot be reduced simply by reducing the supply of fossil fuels. CI is reduced by replacing fossil fuels with the supply of hydrogen, carbon-neutral fuels, renewable energy, and CCS, or in other words, by pursuing energy transitions. The Group aims to halve its CI by fiscal 2040.Pursuing a Circular Economy
In order to achieve carbon neutrality, it is important to build a circular economy in addition to pursuing energy transitions. Products supplied to society generate CO₂ at each stage of their life cycle, from resource procurement to manufacture, sale, use, and disposal. By recycling manufactured products without discarding them, CO₂ emissions can be curtailed. The Group will contribute to the realization of a circulating society through chemical recycling and material recycling, utilizing its strengths, including its technological capabilities and its assets and networks such as refineries and smelters.
Efforts for Circular Economy to Realize Circulating Society Independent from Conventional Resources -