• *ENEOS and its Group companies

For information on our structure, see Environmental Management.

In fiscal 2022, the Group used the Integrated Biodiversity Assessment Tool (IBAT), an online tool available to the general public, to survey 27 of its manufacturing sites¹, including overseas sites, to determine their proximity to important protected areas. As a result, it was determined that there are no protected areas that fall under the categories of strict nature reserve, wilderness area, national park, or natural monument or feature （see table below for categories Ⅰa,b,Ⅱ,Ⅲ） within a five-kilometer radius of any of these sites. The results of the risk assessment are reviewed regularly, and if new protected areas are identified as a result of the expansion of the target sites or other factors, we will obtain detailed information from external organizations and assess the impacts on our operations.
Starting in fiscal 2024, we began positioning biodiversity risks as a material ESG issue and considering our response.
In fiscal 2024, we used ENCORE², an online tool available to the general public, to assess the impact and dependence on natural capital in our main business sectors and identified items with a high degree of impact and dependence. From fiscal 2025, we will closely examine these items to identify biodiversity risks in the supply chains of our main business sectors.
The results of these efforts are reported to the Executive Council and the Board of Directors at least once a year.

1. 1ENEOS: 17 (11 in Japan, 6 overseas), ENEOS Xplora: 3 (1 in Japan, 2 overseas), and JX Advanced Metals: 7 (6 in Japan, 1 overseas).
2. 2Exploring Natural Capital Opportunities, Risks and Exposure: A tool to help organizations investigate their exposure to nature-related risks and understand their dependencies and impacts on nature.

The ENEOS Negishi Refinery is one of Japan’s largest oil refineries, with an area of 2.2 million square meters and a circumference of around 12 kilometers. The area in which it is located has a network of ecosystems with a diverse array of organisms inhabiting an expansive greenbelt that includes Sankei-en and Negishi Forest Park. The Negishi Refinery carries out activities for the conservation of biodiversity utilizing the greenbelt (approximately 60,000 square meters), a hub for the area’s ecosystem network, at the center of the premises.
Ecosystem surveys were begun in fiscal 2013, and in surveys to date, the presence of over 150 types of living organisms has been confirmed in the greenbelt and surrounding areas. Additionally, we regularly hold interactive events and use goat grazing to weed the greenbelt areas. While expanding these initiatives, we will continue promoting the utilization and maintenance of these areas.
The Negishi Refinery was granted certification by ABINC¹ in February 2020. The refinery was also certified by the Ministry of the Environment as a Nationally Certified Sustainably Managed Natural Site in October 2023 and registered as an Other Effective area-based Conservation Measures (OECM²) site in August 2024.
The ENEOS Sendai Refinery, the only refinery in the Tohoku region, has set aside a vast greenbelt of approximately 180,000 square meters on its premises. In fiscal 2024, new green spaces were added and a biotope was installed as a model area for biodiversity. These spaces are being utilized for interaction between the refinery and the local community. The refinery carries out activities such as tree thinning and maintenance of the greenbelt aimed at creating a satoyama within the facility, which will allow local residents and employees to experience the blessings and importance of biodiversity. In recognition of these efforts, the refinery received ABINC certification in February 2025.

The ENEOS Sakai Refinery is located in the Sakai-Semboku Coastal Industrial Zone in the inner part of Osaka Bay. Osaka Bay is an enclosed sea area, and the inner part of the bay has a water quality that makes it difficult for living things to thrive, as nutrients such as nitrogen and phosphorus flowing in from the land tend to stagnate, resulting in red tides.
In fiscal 2022, the refinery began working to create seaweed beds along its coastal area so that a variety of creatures can live in the waters. By creating seaweed beds, we can expect multi-dimensional effects such as improving water quality through the absorption of nutrients and the supply of oxygen, increasing places for the spawning and growth of marine life, and accumulating blue carbon through the photosynthesis of algae.
In 2024, the refinery joined the Members of the Osaka bay Blue carbon ecosystem Alliance (MOBA) (established by Osaka and Hyogo prefectures) and will continue working with neighboring organizations to advance this activity.

Group companies are involved in forest stewardship activities that contribute to the preservation of biodiversity.
ENEOS implements forest stewardship activities called ENEOS-no-Mori at six locations across Japan in partnership with local governments and the National Land Afforestation Promotion Organization (NALAPO).
Since 1998, ENEOS Xplora has implemented a forest stewardship project called ENEOS Xplora Nakajo Forest on and around the site of its Nakajo Field Office in Niigata Prefecture.

Oil tankers from Japan bound for oil-producing countries carry ballast water (seawater) as weight to maintain stability for unloaded voyages. However, this ballast water contains microorganisms and plankton from Japanese waters that are carried to the waters of oil-producing countries, where, if released, they can disturb the balance of local ecosystems.
Since 2004, the Group has replaced this ballast water while still at sea, and installed water treatment systems^* for ballast water on its new vessels in an effort to avoid disturbing the ecosystems of the coastal waters of oil-producing countries. In fiscal 2022, we completed installation of ballast water treatment systems on all of the Group’s 15 tankers.
Furthermore, we release ballast water from ships using methods compliant with international treaties.

• *Systems that keep the level of aquatic organisms in ballast water within certain standards prior to release.

In expanding solar and onshore wind power generation, the Group considers the impact on forest ecosystems. Additionally, in utilizing biomass resources, we undertake initiatives such as obtaining certifications that consider forest conservation and the impact on land use.
In initiatives related to generating credits through CO₂ removal by forests, we implement forest management that considers biodiversity in collaboration with local communities and municipalities.

In advancing the introduction of offshore wind power generation, the Group conducts preliminary environmental assessments that consider the impact on marine ecosystems.
In generating blue carbon credits through CO₂ removal by seaweed, we are contributing to ecosystem conservation through the creation and restoration of seaweed beds.