ENEOS Group Environmental Management System (EMS)

In May 2020, the Group announced its intention to achieve carbon neutrality in its operational emissions by fiscal 2040. We subsequently released our Carbon Neutrality Plan in May 2022, taking into account domestic and international trends. In conjunction with the formulation of our third Medium-Term Management Plan (FY2023–FY2024), we formulated a new Carbon Neutrality Plan in May 2023. In May 2025, in light of changes in the business environment, we formulated the 2025 edition of the Carbon Neutrality Plan and announced it along with the fourth Medium-Term Management Plan.
The new Carbon Neutrality Plan was the subject of extensive discussions at meetings of the Carbon Neutrality Promotion Committee (chaired by the CTO), which was established in fiscal 2024. Amid growing uncertainty surrounding decarbonization, we presumed three societal scenarios and formulated the new Carbon Neutrality Plan. To reduce operational greenhouse gas emissions, we are carrying out initiatives based on reduction targets aligned with Japan’s Nationally Determined Contributions (NDCs), and to contribute to the reduction of downstream greenhouse gas emissions from sold products, we have created roadmaps for energy and materials transitions that meet societal demands. We will continue to lead the supply of energies and materials necessary for these transitions.

Policies on Initiatives for Realizing Carbon Neutrality

1. 1This includes initiatives of both reduction and removal actions. Removal is conducted as a mitigation activity outside the value chain. These activities are also applied to offset the operational emissions through the generation of credits.
2. 2This includes non-fossil certificates and other similar mechanisms.
3. 3Bioenergy with carbon capture and storage. Capture and storage of CO₂ emitted during biomass power generation.
4. 4Direct air capture with carbon storage. Direct capture and storage of CO₂ from the atmosphere.
5. 5This includes biogenic CO₂ removals and emission mitigation methods such as blue carbon and rice paddy methane suppression in addition to afforestation and forest management.
6. 6Carbon dioxide removal
7. 7This includes bio-derived fuels.

• Note:
• For details of the ENEOS Group Carbon Neutrality Plan, see our corporate website (Measures to Realize a Carbon-Neutral Society).

The ENEOS Group, together with the government and society, will promote the reduction of its operational greenhouse gas emissions. We aim to achieve a 73% reduction in line with the government’s targets by fiscal 2040 and carbon neutrality for operational emissions by fiscal 2050.

1. 1Greenhouse gas emissions and emission targets may be adjusted as necessary, taking into account the application of future Sustainability Standards Board of Japan (SSBJ) Climate Standard.
2. 2Assumes that the external environment, including policies and regulations by the government and other parties, has been sufficiently developed to achieve Japan’s nationally determined contributions (NDCs) across the entire nation.

Greenhouse Gas Emissions Target (Scope 1+2)

1. 1Base year greenhouse gas emissions (fiscal 2013): 34 million tonnes
2. 2Methane emissions (fiscal 2021): 1,600 tonnes
3. 3Fiscal 2040 targets are based on the assumption that the external environment, including policies, laws, and technological progress, is sufficiently developed to enable large-scale commercialization.

The ENEOS Group will lead the supply of energies and materials necessary for the transition to meet the societal demand for the reduction of greenhouse gas emissions, aiming to achieve carbon neutrality by fiscal 2050.

Roadmap for the Reduction of Downstream Greenhouse Gas Emissions from Sold Products

1. 1The CI of supplied energy (an indicator of CO₂ emissions [g] per unit of energy supply [MJ]) may be adjusted as necessary, taking into account the future application of climate change-related standards of the Sustainability Standards Board of Japan (SSBJ).
2. 2The items included in CI are fuel oil, carbon-neutral fuels (biofuels and synthetic fuels), hydrogen, electricity (LNG-powered and renewable energies), CCS (implement into in-house manufacturing processes and sites to which energies are supplied), carbon offsets, and so on.
3. 3Avoided emissions are estimated based on the GX League’s guidelines for emission reduction measures consistent with the Ministry of Economy, Trade and Industry’s technology roadmaps for each sector. Energy is based on stock; materials are based on flow.
4. 4Ratio of products made from green chemicals to ones made from crude oil processed by a naphtha cracker

• For information about , see the Editorial Policy.

Input-Output of the ENEOS Group (Fiscal 2024 Results)

• Notes:
• Fuel consumption, electricity consumption, and GHG emissions are calculated based on the Act on Promotion of Global Warming Countermeasures. Fuel consumption and GHG emissions are calculated taking into account electricity sold and heat sold. GHG emissions from electricity use were calculated using the emissions factors by electricity supplier.
• Scope 3 emissions are calculated based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain ver. 2.7. Data covers ENEOS.
• GHG emissions associated with “Category 11: use of sold products” are calculated based on the latest petroleum product sales volumes.
• The Group’s GHG emissions (Scope 1 and 2) are calculated using the controlled approach in the GHG Protocol and cover main applicable organizations.

• *A framework based on the basic concept of the Ministry of Economy, Trade and Industry. With an eye toward achieving carbon neutrality and social transformation by 2050, the GX League is a venue where companies that are taking on the challenge of GX and aim to achieve sustainable growth in society both in the present and future collaborate with government and academia.

With the aim of raising environmental awareness even further, the Group distributes environmental newsletters, holds e-learning sessions and provides regular classification-leveled education, training and drills for all employees to instill awareness of the Group’s basic environmental policies and various laws and regulations, and also to ensure basic knowledge of the environment.

All business sites that have obtained ISO 14001 certification are subject to regular internal audits based on the requirements of the standard in order to confirm and evaluate the effectiveness and conformance of their EMS activities. They also undergo an annual review by a third-party certification body to maintain their certification.

As in fiscal 2023, there were no serious environmental accidents at our manufacturing sites in fiscal 2024.