Environmental Management

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Basic Approach

As part of its responsibilities as a corporate group involved in the supply of energy and materials, the ENEOS Group maintains a proper understanding of the impact of its business activities on climate change risks and natural capital. Environmental conservation has been included as a standard in the ENEOS Group Code of Conduct, and the Group has also established a Long-Term Vision and a Carbon Neutrality Plan, and is implementing initiatives for the development of a sustainable society.
In May 2019, ENEOS Holdings signed a statement of support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and we are working to enhance and expand our disclosures concerning climate change. For details, see Our Response to Climate Change Risks and Opportunities (TCFD).

ENEOS Group Code of Conduct (excerpt)
  1. 3.Environmental conservation
    1. (1)We recognize that we are stewards of the environment and its limited resources. We strive to conserve biodiversity and natural capital, including, but not limited to, water, soil, and the atmosphere, and contribute to the development of a sustainable society.
    2. (2)We strive to promote renewable energy and energy conservation in order to contribute to the development of a decarbonized society.
    3. (3)We strive to contribute to the establishment of a circular economy by reducing, reusing and recycling, while using resources effectively and efficiently.
    4. (4)We strive to take actions to promote sustainable production and consumption for the benefit of society while taking the same actions throughout our value chain, including, but not limited to, resource development, procurement, production, distribution and sales.

Structure

In order to facilitate environmental management based on the Group Code of Conduct, the Group has established an environmental management system (EMS) headed by the president of ENEOS Holdings as Group chief executive. Under this system, we regularly confirm the status of achievement of environmental targets and compliance with environmental laws and regulations, and report the status to the ENEOS Holdings Executive Council and the Board of Directors, ensuring that environmental management performance is monitored and supervised by both organizations.
In addition, 89 of the 138 business sites that have adopted the EMS have obtained ISO 14001 certification, a set of international standards for environmental management, for a certification rate of 64%.

We have established the ENEOS Group Tripartite Safety, Health & Environment Committee, chaired by the officer responsible for the Safety, Health & Environment Department at ENEOS Holdings. The committee meets, in principle, twice annually, where it deliberates on environmental targets, plans and performance of ENEOS Holdings and the Group’s principal operating companies and shares information on the status of activities in an effort to improve Group-wide environmental issues.

ENEOS Group Environmental Management System (EMS)

ENEOS Group Environmental Management System (EMS)

Plan and Targets

Second Medium-Term Environmental Management Plan

In May 2020, we announced our intention to achieve carbon neutrality in our own emissions by fiscal 2040. As a milestone for this target, we formulated the second Medium-Term Environmental Management Plan (FY2020–FY2022). This plan focuses on three themes: “I. Contribution to a low-carbon society,” “II. Contribution to a recycling-oriented society” and “III. Contribution to environmental protection.” The plan sets out detailed initiatives for each of these themes.

Medium-Term Environmental Targets (Fiscal 2020 to Fiscal 2022)
Key themes Basic initiatives Concrete measures aimed at fiscal 2022
Contribution to a decarbonized society
Total CO2 reduction target of 4.28 million tons in fiscal 2022
  • Pursuit of energy conservation measures in business activities
  • CO2 recovery in business activities (Scope 1 and Scope 2)
  • Reduce CO2 emissions by 2.16 million tons compared to fiscal 2009 by pursuing energy conservation
  • CCS/CCUS initiatives
  • Reduction of CO2 emissions in the supply chain (Scope 3)
  • Develop businesses in hydrogen and renewable energy
  • Develop hydrogen station business
  • Develop renewable energy business; total reduction of 920,000 tons from biomass, solar power, wind power and other forms of renewable energy
Contribution to a recycling-oriented society
  • Pursuit of the “3Rs” (reduce, reuse, recycle)
  • Maintain zero emissions (waste-to-landfill ratio of less than 1%)
  • Develop recycling business (plastic waste, rare metals, etc.)
Contribution to environmental protection
  • Initiatives for reducing the environmental burden
  • Control emissions of hazardous substances
  • Reduce hazards by enacting voluntary standards on management of chemical substances
  • Soil pollution surveys and countermeasures
  • Protect the environment through high-efficiency lighting
  • Effective use of water resources
  • Biodiversity initiatives
  • Effective measures to preserve biodiversity in manufacturing sites
  • Forest conservation activities in Japan and overseas
  • Group initiatives
  • Strengthen the environmental management structure
  • Carry out environmental education for Group employees
  • *Available in Japanese only

Carbon Neutrality Plan

In May 2020, the Group announced its intention to achieve carbon neutrality in its own emissions by fiscal 2040, and in May 2022 released its Carbon Neutrality Plan, taking into account domestic and international trends. The following year, in conjunction with the formulation of our third Medium-Term Management Plan (FY2023–FY2025), we formulated a new Carbon Neutrality Plan, which we announced in May 2023. The new plan consists of two pillars; namely, reduction of our greenhouse gas emissions and contribution to the reduction of society’s greenhouse gas emissions.

  1. 1Scope 1+2
  2. 2Compared to the base year FY2013
  3. 3Carbon Intensity

Overview of the ENEOS Group’s Environmental Impact

Input-Output of the ENEOS Group (Results from Fiscal 2022)

  • Notes:
  • Fuel consumption, electricity consumption, and GHG emissions are calculated based on the Act on Promotion of Global Warming Countermeasures. From FY2022, fuel consumption and GHG emissions are calculated taking into account electricity sold and heat sold. GHG emissions from the consumption of electricity are calculated using emission factors by operator.
  • Scope 3 emissions are calculated based on the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain ver. 2.5. Data covers ENEOS.
  • GHG emissions associated with “Category 11: use of sold products” are calculated based on the latest petroleum product sales volumes.

Major Initiatives

External Engagement Activities for a Decarbonized Society

The entire world must work together to achieve the Paris Agreement and the 1.5°C target, and government and policy will play an extremely large role in this. As such, the Company is involved with and contributes to the formulation of policy recommendations by actively participating in government initiatives, as well as economic organizations and trade associations and their activities.
Organizations with a particularly strong relationship with the Company and influence over climate change policy are government bodies the Ministry of Economy, Trade and Industry (METI) and Ministry of the Environment (MOE), and trade associations the Japan Business Federation (Keidanren) and the Petroleum Association of Japan (PAJ). Through collaboration and advocacy with these government bodies and trade associations, we are working to ensure that policy, technological innovation, the orientation of society and customer needs are aligned toward the achievement of carbon neutrality by 2050.

External Engagement Initiatives, Activities and Results

Government Stance Achieve a decarbonized society and net-zero greenhouse gas emissions by 2050
Our initiatives
  • Involvement in and contribution to policy recommendations for the oil refining and marketing business, the electricity and gas business, the hydrogen business, the CCS business, the SAF business, and the synthetic fuels business in alignment with the government target of carbon neutrality by 2050
  • As Keidanren Vice Chair of the Board of Councillors and PAJ Vice President, participate in deliberations of various councils, including those where energy and climate change issues are discussed, and proactively make policy recommendations
  • As member of the GX (Green Transformation) Implementation Council, chaired by the Prime Minister and deputy chaired by the Minister in charge of the promotion of GX implementation and Chief Cabinet Secretary, participate in the examination of measures necessary for the implementation of GX
Our activities and results METI
  • Based on the government’s long-term CCS roadmap, pursued public-private initiatives for starting CCS businesses by 2030, and our project was selected for JOGMEC research funding (West Japan CCS business)
  • Participation in the Hydrogen and Fuel Cell Strategy Council, the Public-Private Council to Promote the Introduction of Sustainable Aviation Fuel (SAF), the Public-Private Council to Promote the Introduction of Synthetic Fuels (e-fuels), and the Carbon Recycling Roadmap Study Group
  • Our projects (hydrogen business, etc.) selected for the Green Innovation Fund administered by the New Energy and Industrial Technology Development Organization (NEDO)
  • Participation in the GX League*, where we actively made recommendations on ETS system design
MOE
  • Commercialization of oil production from waste plastics with the support of the program on the promotion of advanced resource recycling equipment installation for building of a decarbonized society (operations to begin in fiscal 2023)
Keidanren Stance Unwavering commitment to work with the government toward carbon neutrality by 2050
Our initiatives
  • Take the lead in the implementation of policies related to energy and the environment and get involved in and contribute to the formulation of policy recommendations
Our activities and results
  • Participation in Challenge Zero, an initiative of Keidanren and the Japanese government to promote innovation for the achievement of a decarbonized society
  • Stated support for voluntary emissions trading
PAJ Stance Contribute to the realization of carbon neutrality in society as a whole by aiming to achieve net-zero (carbon-neutral) CO2 emissions (Scope 1+2) associated with business activities and taking on the challenge of reducing CO2 emissions from our products (Scope 3) to net zero (carbon neutral) by 2050
Our initiatives
  • As the largest company in the petroleum industry in Japan, take the lead in the implementation of policies related to the petroleum and energy industries as a whole, and get involved in and contribute to the formulation of policy recommendations
  • As Vice President, lead petroleum industry discussions on climate change and disseminate information externally through monthly board meetings
  • As Chair of the Carbon Neutrality Promotion Expert Committee, lead discussions on carbon neutrality in the petroleum industry
Our activities and results
  • Stated support for voluntary emissions trading
  • * 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.

Environmental Education

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.

Environmental Audits

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.

Preventing Environmental Accidents

As in fiscal 2021, there were no environmental accidents at our manufacturing sites in fiscal 2022.