• For information about , see the Editorial Policy.

• Targets
  The Group’s greenhouse gas emissions reduction targets include not only carbon dioxide (CO₂) but also six other greenhouse gases: methane, nitrous oxide, hydrofluorocarbons, perfluorinated compounds, sulfur hexafluoride, and nitrogen trifluoride. These reduction targets were set with the aim of reducing pure emissions. Furthermore, we did not use the Sectoral Decarbonization Approach (SDA) in setting our targets, as the SBTi is in the process of preparing guidance for the oil and gas sector.
• Calculation
  The Group calculates its total greenhouse gas emissions in accordance with the Act on Promotion of Global Warming Countermeasures (Global Warming Countermeasures Act). This is because compliance with this Japanese law is mandatory. The calculation results include both direct measurements and estimates. Estimates are made in accordance with the calculation method stipulated in the Global Warming Countermeasures Act. Scope 1 and Scope 2 greenhouse gas emissions only cover companies subject to consolidated accounting and do not include other business entities.

The Group is moving forward with research in the following fields in order to realize energy transitions.
In fiscal 2024, the ENEOS Group spent a total of around 16.1 billion yen on research and development.

Development of Manufacturing Technologies for Synthetic Fuels Derived from Renewable Energy

ENEOS is working on the development of manufacturing technology for synthetic fuels that can replace fossil fuels such as jet fuel, gasoline, and diesel to achieve carbon neutrality in a wide range of fields, such as aircraft and vehicle mobility and raw materials for chemicals and lubricants.
Synthetic fuels are carbon-neutral fuels produced using hydrogen derived from renewable energy sources and CO₂, which means that they can reduce CO₂ emissions throughout the product life cycle. In addition, as their properties are equal to those of conventional fossil fuels, these synthetic fuels can be acceptable in existing vehicles, refinery facilities, and distribution routes, meaning they will play a vital role in realizing energy transitions.
In September 2024, we began operations at Japan’s first synthetic fuels demonstration plant that can handle the entire process of producing synthetic fuels from raw materials. The plant is located within the Central Technical Research Laboratory. The synthetic fuels produced there were used to fuel shuttle buses (diesel) and vehicles (gasoline) for guests and related parties at the 2025 Osaka-Kansai Expo.
ENEOS aims to establish manufacturing technologies for synthetic fuels early and their social implementation with the support of the Green Innovation (GI) Fund^*, which was adopted in April 2022.

• *A fund administered by the Japanese government that provides support to companies working to address management issues to help reach Japan’s goal for carbon neutrality by 2050. The fund offers ongoing financial assistance over a 10-year period in areas ranging from R&D and demonstration projects to social implementation, covering fields in energy-related industries, including the hydrogen and ammonia fuel industries; transportation and manufacturing-related industries; and household and office-related industries.

Renewable Energy-Based Synthetic Fuels Production Process

ENEOS established the ENEOS Hydrogen Trust Fund in March 2006 in order to help speed up the realization of a hydrogen society.
The fund is Japan’s first public trust specializing in supporting research on the supply of hydrogen energy. The fund is large enough that a stable supply of research grants worth 50 million yen (up to 10 million yen per project) can be provided for around 30 years to support innovative and pioneering basic research into hydrogen energy supply systems. As of June 2025, the fund’s assets total around 600 million yen, which will make it possible to provide stable grants for approximately 10 years going forward.

In the journey to carbon neutrality, bioethanol is expected to be used in various applications such as automobile fuels and raw materials for chemical products. In recent years, it has also attracted attention as a raw material for sustainable aviation fuel (SAF). On the other hand, the bioethanol produced around the world today comes mainly from food crops such as sugarcane and corn, raising concerns that it may compete with food.
ENEOS is developing technology for producing bioethanol (cellulosic ethanol) using cellulose resources that do not compete with food, such as woody biomass like pulp and used paper, as raw materials. In fiscal 2023, ENEOS concluded a joint development agreement with TOPPAN Holdings Inc., aiming for commercialization through a project combining the preprocessing process developed by TOPPAN Holdings using hard-to-recycle used paper as a raw material and the ethanol continuous production process developed by ENEOS.
In addition, ENEOS Corporation, Suzuki Motor Corporation, Subaru Corporation, Daihatsu Motor Co., Ltd., Toyota Motor Corporation, Toyota Tsusho Corporation, and Mazda Motor Corporation are jointly participating in the Research Association of Biomass Innovation for Next Generation Automobile Fuels to promote research on production technology for bioethanol fuels for automobiles.

With regard to marine transportation, which primarily involves the transport of crude oil to Japan, ENEOS is making active efforts to use oil tankers with superior delivery efficiency and fuel efficiency, and to improve fuel consumption by optimizing transportation routes and controlling navigation schedules and speeds.
Regarding land transportation, in addition to consolidating oil depots and improving the distribution efficiency of tank trucks, we are working to reduce fuel consumption through efforts such as insisting that drivers turn off their engines when stopped.

CO₂ Emissions from Domestic Transport

• Notes:
• Scope: ENEOS
• Domestic transport based on the Act on Rationalizing Use of Energy and Shifting to Non-fossil Energy (Energy Conservation Act)

ENEOS is actively implementing power-saving measures at its service stations nationwide through efforts such as the installation of solar panels and the adoption of LED lighting.

The Group’s CO₂ emissions from the use of sold products (Scope 3) in fiscal 2024 totaled 159.00 million tonnes.
The ENEOS Group is working to reduce CO₂ emissions at the consumption stage through the development and sale of environmentally friendly products, which contribute to a lower environmental impact. We have specified standards and procedures for certification of our environmentally friendly products and services and manage these appropriately.

We implement CSR procurement, in which we take into account social impacts, such as effects on the environment, when purchasing materials and other goods and services.
For details, see Supply Chain Management.

We are working toward the visualization of greenhouse gas emissions in order to reduce operational greenhouse gas emissions and downstream greenhouse gas emissions from sold products.
ENEOS established a CO₂ visualization system because it is important to determine emissions in a timely manner in order to reduce emissions at its refineries. We established this system to enable centralized management of operational emissions and calculation of emissions (carbon footprint: CFP¹) for each product. This is the first CFP calculation in the domestic petroleum industry that uses real data obtained at refineries.
The system will be used to streamline statutory reporting, manage the implementation of plans through monthly forecasting and result management, and provide CFP data to customers. In 2024, we started providing CFP data for some products to customers, and we plan to gradually expand the scope of the applicable products.
The development of this system aims to achieve unified monitoring and management of carbon information on a per-product basis, analyze the impact that decarbonization initiatives in manufacturing has on CFP and visualize CFP at the new product planning stages, and create business opportunities by highlighting the environmental value of low-carbon products.
Our CFP data will be “cradle to gate²,” meaning it will cover all greenhouse gas emissions from raw materials procurement to product shipment. We will use the life cycle assessment (LCA) method³ to calculate emissions associated with material procurement and product manufacturing.

1. 1Carbon footprint of products (CFP) is a system for converting greenhouse gas emissions throughout the life cycle of a product or service, from the procurement of raw materials to manufacturing and beyond, to CO₂.
2. 2Refers to the process from raw materials procurement to production within the life cycle stages, comprising raw materials procurement, manufacturing, distribution, sales, use and maintenance, disposal and recycling.
3. 3LCA (life cycle assessment) methodology involves quantitatively evaluating the environmental effects of product manufacturing throughout the entire life cycle, from procurement of raw materials to manufacturing, transport, use, and disposal.

ENEOS Group CO₂ Visualization

The Group is working to grow its Renewable Energy business, centered on ENEOS Renewable Energy (ERE), a leader in the development and operation of renewable energy power plants in Japan. The Group’s renewable energy generation capacity stands at 1,375,000 kW (as of June 2025, including facilities under construction).
The renewable energy power plants operated by ERE generated approximately 1.6 billion kWh of electricity in fiscal 2024, which is equivalent to the annual electricity consumption of approximately 400,000 average households. This contributed to a reduction in CO₂ emissions of approximately 670,000 t-CO₂ compared to conventional power generation methods.
Going forward, by combining ERE’s advanced business development and power plant operation capabilities with the Group’s long-standing expertise in the energy business, we will further develop and speed up the business to become Japan’s leading supplier of renewable energy and contribute to the realization of the 3E+S (energy security, economical efficiency and environment, plus safety) of energy in a decarbonized society. For information on our renewable energy power plants, see the ERE website.

Building a Hydrogen Supply Chain Using Our Refineries as Hubs

ENEOS is working to build an SAF* supply chain by establishing an in-house SAF manufacturing system and an import system.
For the in-house manufacturing system, we are currently proceeding with plans to install SAF manufacturing equipment that utilizes used cooking oil (hereinafter referred to as UCO) and tallow as feedstocks at our Wakayama Plant, with the aim of establishing a mass production and supply system with an annual capacity of 400,000 KL from fiscal 2028 onward. Globally, in July 2025 we agreed to enter the biofuel manufacturing and sales business in the United States with Par Pacific Holdings, Inc. and Mitsubishi Corporation. By utilizing and partially renovating existing facilities at the Kapolei Refinery in Hawaii, operated by Par Pacific, we will expect to produce approximately 150,000 KL of SAF per year.
On the import system, we signed agreements for the purchase and sale of SAF with Japan Airlines Co., Ltd. (JAL) in July 2024 and Skymark Airlines Inc. in February 2025. As the first domestic oil company to import SAF into Japan, we are positioned to supply the aviation industry, which is pursuing SAF procurement both domestically and internationally. Through these partnerships, we aim to accelerate SAF adoption and growth in Japan.
Regarding feedstock, currently 120,000t of UCO from restaurants and other businesses (total 500,000t per year) is exported overseas, while approximately 90% of the UCO generated by ordinary households (total 100,000t per year) is discarded. In order to utilize this UCO as SAF feedstock, we are considering establishing a collection and recycling scheme through partnerships with other companies.
For more details of our initiatives, see Sustainable Aviation Fuels (SAF).

• *Sustainable aviation fuel: Low-carbon, sustainable aviation fuel made from feedstocks such as UCO, biomass, and waste residues.

Building an SAF Supply Chain

Domestic CCS Value Chain of ENEOS