CSR Management

Basic Approach

The ENEOS Group recognizes that society's trust is essential for achieving sustainable growth as a company. With this understanding, we conduct ongoing CSR activities aimed at contributing to the development of communities and helping to ensure a vibrant future.

Basic Policy for CSR

In order for ENEOS Group executives and employees to realize the mission set forth in the ENEOS Group Philosophy, they follow in good faith the ENEOS Group Code of Conduct, which is based on our five core values. In this way, we aim to ensure that we are a corporate group worthy of the trust of our stakeholders.

Priority Fields for CSR Activities

Based on the 14 standards in the ENEOS Group Code of Conduct, we have established eight priority fields for CSR activities.

The ENEOS Group Code of Conduct

  1. 1.Compliance
  2. 2.Safety and security
  3. 3.Environmental conservation
  4. 4.Health enhancement
  5. 5.Respect for human rights
  6. 6.Product and service quality
  7. 7.Equitable and fair transactions
  1. 8.Appropriate relationships with governments and public administrations
  2. 9.Avoidance of conflicts of interest
  3. 10.Corporate asset protection and management
  4. 11.Information management and disclosure
  5. 12.Establishment of a healthy work environment
  6. 13.Contribution to the development of civil society
  7. 14.Actions for violations and measures to prevent recurrence

The Group's Top CSR Priorities (Material Issues)

The ENEOS Group has identified top CSR priorities (material issues) from two viewpoints: priority from an external perspective and priority from the Group's internal perspective.
After discussing the Group's top CSR priorities for fiscal 2019, we identified the same nine issues as those for fiscal 2018, and established 12 targets (KPIs).
Looking ahead, we will work to achieve each of these targets through the Group's CSR promotion framework.
Initiatives included in this report that address the Group's top CSR priorities are denoted with a heart () symbol.

Steps in the Review Process

STEP 1 Identify social issues to consider

Following an exhaustive review of various guidelines (GRI standards, ISO 26000, etc.) as well as the assessment items of ESG research providers and the Sustainable Development Goals (SDGs), 32 social issues were identified for consideration.

STEP 2 Prioritize from an external perspective

Priority from an external perspective was assessed for the 32 social issues identified at Step 1, taking into account such factors as the assessment weight given by ESG research providers.

STEP 3 Prioritize from the Group's perspective

Priority from the Group's internal perspective was assessed, taking into account such factors as our Medium-Term Management Plan and reviews of the expert committees within the CSR promotion structure, as well as the guidelines of the U.S. Sustainability Accounting Standards Board (SASB).

STEP 4 Identify the Group's top CSR priorities

After assessing priority from an external perspective and priority from the Group's internal perspective, nine issues of particularly high priority were identified as the Group's top CSR priorities.

Diagram of the Group's Top CSR Priorities

Table of the Group's Top CSR Priorities (Material Issues)

Fiscal 2018

Evaluation: Achieved/Steady progressNot achieved

Category The Group's top CSR priorities Initiative Target (KPI) Achievement target
(fiscal year)
Results/Progress Applicable companies
Environmental Development of a low-carbon society Reduction in CO2 emissions
(Reduction amount through own efforts)
Reduce by 2.72 million tons compared to 2009 Fiscal 2019

Reduce by 2.6
million tons
compared to
fiscal 2009

Core operating company groups
NIPPO (Total of 43 companies)
Development of a recycling-oriented society Reduction in landfill disposal Ratio of landfill disposal
Maintain zero emissions
(less than 1%)
Fiscal 2019

0.4%

Core operating company groups
NIPPO (Total of 42 companies)
Social Ensuring safety Reduction in occupational injuries Zero occupational fatalities Fiscal 2018

1

Core operating company groups
NIPPO (Total of 45 companies)
Respect for human rights Human rights awareness 100% participation rate in human rights training Fiscal 2018

94.2%

JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Human resource development Development of human resources responsible for enhancing corporate value Implementation of effective training based on human resource development plan Fiscal 2018

JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration, JX Nippon Mining & Metals
(Total of 4 companies)
Promotion of diversity and inclusion Advancement of women in the workplace Women comprise at least 25% of newly hired graduates Fiscal 2020

24.1%

JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Advancement of employees with disabilities At least 2.2% employment rate of people with disabilities Fiscal 2018

2.35%

JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Promotion of work-life management Promotion of workstyle reforms At least 80% of annual paid leave days taken Fiscal 2018

90.0%

JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Utilization of work-life balance support systems/programs Maintain 100% rate of return to work after childcare leave Fiscal 2018

100%

JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Health enhancement Ensure health of employees Build database as infrastructure for planning
various measures
(covering 14,000 employees)
Fiscal 2018

JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals (Total of 4 companies)
Governance Compliance Legal compliance inspections Conduct legal compliance inspections Fiscal 2018

Companies for which legal compliance
inspections are carried out*
(Total of 101 companies)
Compliance with important laws and regulations (Anti-Monopoly Act, etc.) Implement training on important laws and regulations
(Anti-Monopoly Act, etc.)
Fiscal 2018

Companies for which legal compliance inspections are carried out*
(Total of 101 companies)
  • *JXTG Holdings, core operating companies, Nippo Corporation, and their main group companies.

Fiscal 2019

Category The Group's top CSR priorities Initiative Target (KPI) Achievement target
(fiscal year)
Applicable companies
Environmental Development of a low-carbon society Reduction in CO2 emissions
(Reduction amount through own efforts)
Reduce by 2.72 million tons compared to fiscal 2009 Fiscal 2019 Core operating company groups
NIPPO (Total of 43 companies)
Development of a recycling-oriented society Reduction in landfill disposal Ratio of landfill disposal
Maintain zero emissions
(less than 1%)
Fiscal 2019 Core operating company groups
NIPPO (Total of 42 companies)
Social Ensuring safety Reduction in occupational injuries Zero serious occupational injuries*

*Occupational fatalities

Fiscal 2019 Core operating company groups
NIPPO (Total of 45 companies)
Respect for human rights Human rights awareness 100% participation rate in human rights training Fiscal 2019 JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Human resource development Development of human resources responsible for enhancing corporate value Implementation of effective training based on human resource development plan Fiscal 2019 JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Promotion of diversity and inclusion Advancement of women in the workplace Women comprise at least 25% of newly hired graduates Fiscal 2020 JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Advancement of employees with disabilities Maintain employment rate of people with disabilities at 2.2% or higher Fiscal 2019 JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Promotion of work-life management Promotion of workstyle reforms Maintain annual paid leave days taken at 80% or higher Fiscal 2019 JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Utilization of work-life balance support systems/programs Maintain 100% rate of return to work after childcare leave Fiscal 2019 JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Health enhancement Ensure health of employees Achieve cancer screening rate of 70% or higher Fiscal 2019 JXTG Holdings, JXTG Nippon Oil & Energy,
JX Nippon Oil & Gas Exploration,
JX Nippon Mining & Metals
(Total of 4 companies)
Governance Compliance Legal compliance inspections Conduct legal compliance inspections Fiscal 2019 Companies for which legal compliance inspections are carried out*
(Total of 101 companies)
Compliance with important laws and regulations (Anti-Monopoly Act, etc.) Implement training on important laws and regulations
(Anti-Monopoly Act, etc.)
Fiscal 2019 Companies for which legal compliance inspections are carried out*
(Total of 101 companies)
  • *JXTG Holdings, core operating companies, Nippo Corporation, and their main group companies.

CSR Promotion Structure

We have established the ENEOS Group CSR Council, which is chaired by the representative director and president of ENEOS Holdings, as the body for promoting CSR activities in priority fields throughout the ENEOS Group.
The ENEOS Group CSR Council is composed of Group company presidents and relevant executives. The council deliberates basic policies and reviews and evaluates the status of activities from a perspective that spans the entire Group. The matters deliberated by and reported to the ENEOS Group CSR Council are in turn reported to the ENEOS Holdings Executive Council and Board of Directors, each of which provides instructions.
We have also assigned CSR promotion managers from each department to spearhead various activities and share information.

ENEOS Group CSR Promotion Structure

ENEOS Group CSR Council

Position Organization subordinate to the ENEOS Holdings Executive Council
Roles
  1. 1.Formulation and implementation of the ENEOS Group's Basic Policy for CSR
  2. 2.Review and evaluation of the ENEOS Group's CSR promotion structure and status of CSR activities (including degree of understanding and prevalence of the ENEOS Group Philosophy and ENEOS Group Code of Conduct)
Chair Representative director and president of ENEOS Holdings
Members
  1. 1.Members of the ENEOS Holdings Executive Council (including directors) and the officers responsible for CSR at the Group's core operating companies
  2. 2.ENEOS Group company presidents nominated by the Chair
  3. 3.Other persons nominated by the Chair
Frequency of meetings In principle, twice a year (April and October), and extraordinarily as required
Priority fields and ENEOS Group Code of Conduct standards overseen by the council All fields and standards

Expert Committees

ENEOS Group Compliance Committee

Position Advisory body to the president of ENEOS Holdings
Roles
  1. 1.Deliberation on compliance matters (policy, direction, etc.) for the ENEOS Group, and reporting on these matters to the ENEOS Group CSR Council
  2. 2.Confirmation, evaluation and the sharing of information on the status of compliance measures at each ENEOS Group company, and reporting to the ENEOS Group CSR Council
Chair Officer (director) responsible for the Legal & Corporate Affairs Department at ENEOS Holdings
Members
  1. 1.Relevant general managers at ENEOS Holdings nominated by the Chair
  2. 2.Relevant officers and general managers of the Group's core operating companies
  3. 3.Other persons nominated by the Chair
Frequency of meetings In principle, twice a year (April and October), and extraordinarily as required
Priority fields and ENEOS Group Code of Conduct standards overseen by the committee

Priority field: Compliance

  1. 1.Compliance
  2. 7.Equitable and fair transactions
  3. 8.Appropriate relationships with governments and public administrations
  4. 9.Avoidance of conflicts of interest
  5. 10.Corporate asset protection and management
  6. 11.Information management and disclosure
  7. 14.Actions for violations and measures to prevent recurrence (whistleblowing system development and promotion of its use)

ENEOS Group Environment & Safety Committee

Position Advisory body to the president of ENEOS Holdings
Roles
  1. 1.Deliberation on matters concerning safety and the environment (policy, direction, etc.) for the ENEOS Group, and reporting on these matters to the ENEOS Group CSR Council
  2. 2.Confirmation, evaluation and the sharing of information on the status of measures concerning safety and the environment at each ENEOS Group company, and reporting to the ENEOS Group CSR Council
Chair Officer (director) responsible for the Safety, Health & Environment Department at ENEOS Holdings
Members
  1. 1.Relevant general managers at ENEOS Holdings nominated by the Chair
  2. 2.Relevant officers and general managers of the Group's core operating companies
  3. 3.Other persons nominated by the Chair
Frequency of meetings In principle, twice a year (April and October), and extraordinarily as required
Priority fields and ENEOS Group Code of Conduct standards overseen by the committee

Priority field: Safety and Environment

  1. 1.Compliance (laws and regulations concerning safety and the environment)
  2. 2.Safety and security
  3. 3.Environmental conservation
  4. 4.Health enhancement (primarily occupational safety)

ENEOS Group Human Rights Promotion and Human Resource Development Committee

Position Advisory body to the president of ENEOS Holdings
Roles
  1. 1.Deliberation on matters concerning human rights, human resource development and health (policy, direction, etc.) for the ENEOS Group, and reporting on these matters to the ENEOS Group CSR Council
  2. 2.Confirmation, evaluation and the sharing of information on the status of measures for human rights, human resource development and health at each ENEOS Group company, and reporting to the ENEOS Group CSR Council
Chair Officer (director) responsible for the Human Resources Department at ENEOS Holdings
Members
  1. 1.Relevant general managers at ENEOS Holdings nominated by the Chair
  2. 2.Relevant officers and general managers of the Group's core operating companies
  3. 3.Other persons nominated by the Chair
Frequency of meetings In principle, twice a year (April and October), and extraordinarily as required
Priority fields and ENEOS Group Code of Conduct standards overseen by the committee

Priority fields: Human Rights, Human Resource Development, Health

  1. 1.Compliance (laws and regulations concerning human rights, human resource development and health)
  2. 4.Health enhancement (primarily occupational health)
  3. 5.Respect for human rights
  4. 12.Establishment of a healthy work environment

Major Initiatives

CSR Council Meetings

In fiscal 2018, the JXTG Group held two meetings of the JXTG Group CSR Council. In these meetings, discussions were held on the Group's top CSR priorities (material issues), and the council confirmed the activities of the expert committees and progress on raising awareness of the Group Philosophy and the Code of Conduct. The council also confirmed the JXTG Group's ESG initiatives and deliberated on related policies.
The content of deliberation and reports by the JXTG Group CSR Council were reported to the Board of Directors and the Executive Council, which affirmed the direction of the Group's CSR activities.

CSR Promotion Manager Workshop

CSR promotion manager workshop

The ENEOS Group appoints personnel at the deputy general manager level as CSR promotion managers to facilitate CSR activities.
Every year, CSR promotion managers from across the Group meet for a workshop, where we convey our basic policy on CSR and share information. At the workshop held in fiscal 2018, reports were made on the Group's CSR activities and a presentation was made by an outside expert on ESG and corporate management.

Implementing Measures to Raise Awareness About the Group Philosophy and Code of Conduct

The ENEOS Group believes that understanding and implementation of the ENEOS Group Philosophy and the ENEOS Group Code of Conduct by all officers and employees plays an important role in the fulfillment of our social responsibilities.
Therefore, we are implementing various measures to enable all officers and employees to reference the ENEOS Group Philosophy and the Code of Conduct at any time and return to the basics when necessary.
Additionally, after deliberations by the JXTG Group CSR Council, in fiscal 2018 we established the Anti-Corruption Policy and the Human Rights Policy to complement the JXTG Group Code of Conduct.
See the Anti-Corruption Policy and the Human Rights Policy.

Measures to Raise Awareness of the Group Philosophy and Code of Conduct

Purpose Measure
Ensure awareness Distribute Group Philosophy cards and Code of Conduct handbooks
Display posters
Use of digital signage in company workplaces
Translation into 9 languages (English, Chinese [Simplified / Traditional], Korean, Spanish, Portuguese, Vietnamese, Thai, Indonesian) and distribution
Promote understanding Dissemination of information through the Group employee magazine and intranet
Implementation of e-learning for all officers and employees
Monitoring Confirmation using awareness surveys targeting all officers and employees
Code of Conduct handbook
Group Philosophy card
Digital signage in company workplace

Stakeholder Engagement

The ENEOS Group conducts its business activities while maintaining relationships with a broad range of stakeholders, including shareholders, investors, customers, business partners, and employees. We seek to earn society's trust by accurately assessing the needs of our stakeholders and responding conscientiously.

Discussions with the Corporate Human Rights Benchmark (CHRB)

In July 2019, the ENEOS Group met with the CHRB to discuss business and human rights. During the meeting, the CHRB provided background on its establishment and explained its mission. It also provided an explanation about the stance of global companies in terms of human rights and problem areas, taking into account its assessment results for 2018.
Looking ahead, we will continue to promote understanding of our human rights initiatives through dialogue with various stakeholders and identify new human rights issues to be addressed.

ENEOS Group Awareness Survey

The ENEOS Group periodically conducts an anonymous awareness survey of all its officers and employees. This survey comprises questions covering such topics as the Group Philosophy, the Code of Conduct, compliance, awareness of workplace culture initiatives, and problems in day-to-day operations.
The most recent survey was conducted in the first half of fiscal 2019, and the fact that issues to be addressed as an organization were clearly identified through the results of the survey has been reported in accordance with the Group's CSR promotion structure.

Principal Declarations and Initiatives the ENEOS Group Participates in and Supports

UN Global Compact (UNGC)

Four Group companies (ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration, and JX Nippon Mining & Metals) participate in the UN Global Compact, supporting the compact's 10 principles in the four categories of human rights, labor standards, the environment, and anti-corruption.

The Ten Principles of the UN Global Compact

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

Task Force on Climate-related Financial Disclosures (TCFD)

As a signatory of the TCFD recommendations, ENEOS Holdings will actively implement ESG initiatives for the realization of a sustainable society. We will also disclose information on our business activities to the greatest extent possible in accordance with the recommendations of the TCFD.

World Business Council For Sustainable Development (WBCSD)
CDP
International Council on Mining & Metals (ICMM)
Extractive Industries Transparency Initiative (EITI)
Council for Better Corporate Citizenship (CBCC)
Japan Business Initiative for Biodiversity (JBIB)
Sport for Tomorrow

Communication with Industry Organizations

  Organization Name Position Held by Group Executive, etc.
ENEOS Holdings Japan Business Federation (Keidanren) Vice Chair, Executive Secretary, Permanent Secretary
ENEOS Petroleum Association of Japan Vice-President, Vice Executive Secretary
Japan Petrochemical Industry Association Director
Japan Chemical Industry Association Policy Coordinating Committee member, Labor Committee member
JX Nippon Oil & Gas Exploration Japan Petroleum Development Association Vice Chairman
Japan Natural Gas Association Director
JX Nippon Mining & Metals Japan Mining Industry Association (JMIA) Vice Chairman, Director
The Sulphuric Acid Association of Japan Chairman
Japan Copper and Brass Association (JCBA) Director
Japan Society of Newer Metals Director
Japan Catalyst Recovering Association Chairman

Inclusion in ESG Indices

MSCI Japan ESG Select Leaders Index
MSCI Japan Empowering Women Index (WIN)

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