Healthy Work Environment

Basic Approach

The ENEOS Group promotes the management of work-life balance as a way for all employees to increase their motivation and creativity and perform at their full potential.
The Group believes that creating environments where employees accept a person’s individuality (diversity & inclusion), regardless of differences pertaining to gender, age, nationality, race, ethnicity, skin color, culture, thought, religion, belief, political opinions, sexual orientation, gender identity, presence or absence of disability, and familial or personal circumstances, and everyone is given equal opportunity (equity) will lead to the creation of new value throughout the organization and the growth of the Group.
Based on this belief, we have stipulated basic principles for the establishment of a healthy work environment in the Group Code of Conduct, and we implement various measures accordingly.

ENEOS Group Code of Conduct (excerpt)
  1. 12.Establishment of a healthy work environment
    1. (1)We strive to enable all personnel to carry out their business operations in the workplace with vigor, and to enable ourselves, our families and our colleagues to lead healthy and cultured lives by promoting health care and work-life balance.
    2. (2)We promote diversity in order to enable diverse individuals to maximize their abilities.
    3. (3)We strive to secure and maintain a pleasant work environment through interactive dialogue and ongoing communication.
    4. (4)We strive to train our people, and seek to enhance the abilities of ourselves and others.
    5. (5)We shall obtain the necessary confirmation and approval from the appropriate person(s) with authority before we commence any religious activity, political activity, or any similar activities during work.

Structure

For information about our structure, see ESG Management Structure.
We are responding to various issues in a more agile manner under our ESG management structure. Specifically, we are implementing measures such as workstyle reforms, workplace and career advancement initiatives for female employees and employees with disabilities, and the expansion of systems to promote work-life balance. We are also raising awareness about diversity, equity, and inclusion through in-house training for all personnel, including officers.

Material Issues, Plans and Results

Fiscal 2022 Targets, Results and Progress

Evaluation:Achieved/Steady progressNot achieved

Material ESG Issue Initiative Target (KPI) Results/Progress
Diversity and inclusion Advancement of women in the workplace Maintain rate of women among newly hired university graduates at 25% or higher

21.9%
Advancement of employees with disabilities Maintain employment rate of people with disabilities at 2.3% or higher

2.44%
Work-life management Workstyle reforms Maintain annual paid leave days taken at 80% or higher

88.8%
Utilization of work-life balance support systems/programs Maintain 100% rate of return to work after childcare leave

100%

Major Initiatives

Diversity, Equity, and Inclusion

The Group has clearly stated its basic approach that promoting diversity, equity, and inclusion leads to the creation of new value throughout the organization and the growth of the Group. In order to ensure that our diverse workforce can work with vigor and maximize their talents, we are promoting the advancement of female employees, employees with disabilities, and sexual minorities, implementing workstyle reforms, and expanding support systems to enable employees to balance work with childcare, family care, and medical conditions. In addition, we strive to further establish diversity, equity and inclusion in the Group through internal training for all employees, including officers.

Basic Approach to Diversity, Equity, and Inclusion
  • We aim to increase the motivation and creativity of all employees and enable them to maximize their talents by fostering a corporate culture where each and every employee understands the importance of diversity, equity, and inclusion, and where employees respect each other, help each other, and grow together.
  • Through the promotion of diversity, equity, and inclusion, we aim to ensure the diversity of the organization and employees and foster a culture that embraces different ways of thinking and ideas and encourages thorough discussion based on mutual trust. This will enable us to promptly and accurately meet the ever-changing needs of customers and society and create new social value.
  • We will continue to contribute to the realization of a society in which all stakeholders, including employees, can actively participate by promoting diversity, equity, and inclusion in Japan and overseas.

Advancement of Women in the Workplace

To support the career planning and growth of our female employees, the Group is working to reform individual workstyles and awareness, and is developing and expanding systems for all employees. Group companies also have their own action plans for the advancement of women in the workplace based on the Act on Promotion of Women’s Participation and Advancement in the Workplace. We have also set numerical targets for the hiring percentage of female university graduates and the number of female employees promoted to managerial positions, and we implement various measures to promote the active participation and career advancement of female employees.
For more information about our systems, see Major Systems for Promoting Work-Life Management.

Targets for Action Plan on the Advancement of Women in the Workplace
  • ENEOS
    1. 1.Ensure that the ratio of women among newly hired university graduates from fiscal 2023 to fiscal 2025 is at least 50% for administrative positions and at least 20% for engineering positions
    2. 2.Change the behavior and mindset of employees, focusing on management, toward the promotion of diversity
    3. 3.Aim to have 100 female managers* (from group managers to officers) by April 2026
    4. *Including female managers seconded to main Group companies

    Reference: Summary and Results of Second ENEOS Action Plan

    • Period of plan: April 1, 2020 to March 31, 2023 (3 years)
    • Targets
      1. (1) Ensure that the ratio of women among newly hired university graduates in fiscal 2022 is at least 32%*
        Did not achieve: Ratio of women among newly hired university graduates in fiscal 2022 was 30.2% (35.3% in fiscal 2021 and 38.7% in fiscal 2020)
      2. (2) Change the behavior and mindset of employees, focusing on management, toward the promotion of diversity
        Did not achieve: Although efforts were made to build a system and raise awareness as planned, results of an engagement survey indicated that awareness of inclusion was low
      3. (3) Aim to at least double the number of female managers (from group managers to officers), compared to fiscal 2019 (24), by April 2023
        Achieved: 51 female managers as of April 2023 compared to 24 in fiscal 2019
      4. *Excludes company baseball team and second round of new graduate hires
  • JX Nippon Oil & Gas Exploration
    1. 1.Maintain the percentage of female workers at 20% of the workforce
    2. 2.Promote thorough awareness of diversity and inclusion within the company
    3. 3.Increase the hours of participation in training for career advancement for female employees by 20% per person compared to the previous plan
  • JX Metals
    1. 1.Increase the number of women in managerial positions to 30 or higher by March 31, 2026 (non-consolidated basis)
    2. 2.Ensure that employees take at least 80% of their annual paid leave
    3. 3.Continuously enhance and implement recruitment activities to increase the number of female employees and develop a workplace environment for increasing recruitment
    4. 4.Examine and implement ways to inform employees about work-life balance support systems and encourage their use to ensure that our diverse workforce can utilize these systems based on their individual needs
    5. Note: Formulated pursuant to the Act on Promotion of Women’s Participation and Advancement in the Workplace and the Act on Advancement of Measures to Support Raising Next-Generation Children.
Promoting Female Employees to Managerial Positions

ENEOS had 24 women in positions of group manager or above in fiscal 2019, and worked to promote women to leadership positions with a target of at least doubling that number by April 2023. As of April 2023, the number of women in leadership positions was 118, and of these, the number of female managers was 51 (two executive officers, two department general managers or equivalent, nine department deputy general managers or equivalent, and 38 group managers or equivalent). The company aims to have 100 female managers (from group managers to officers) by April 2026.
JX Nippon Oil & Gas Exploration aims to have at least 10 women in leadership positions in fiscal 2023. As of April 2023, 10 women held leadership positions.
JX Metals was aiming to increase the number of women in leadership positions to at least 24 from April 2021 to April 2023, but as of April 2023 had only 21. From fiscal 2023, the company will work to increase the number of women in leadership positions to at least 30 by the end of March 2026.

Employment Status of Female Employees

(As of March 31, 2023)

Category Number of female employees Percentage of total
Newly hired employees 145 22.2%
Employees 1,547 13.8%
Leadership positions 152 5.3%
Directors* 3 21.4%
Average years of service for female employees 15.6 years (Difference in average years of service between male and female employees: 2.5 years)
  • Note:
  • Data on number of female directors is from ENEOS Holdings; other data is for ENEOS Holdings and principal operating companies.
  • *Data on number of female directors is as of December 19, 2023.
Training and Seminars for the Advancement of Women in the Workplace

ENEOS holds the following training and seminars to further promote the advancement of women in the workplace.

Training for Managers
As part of our efforts to provide positive work environments for a wide variety of employees, we held diversity management training for our executives and managerial staff at the team leader level and above. This included training on management methods to help employees achieve work-life balance in terms of childcare or family care.

Networking session held for female operators

Training for Female Employees
We are supporting the formation of networks of female employees so that they can think about and envision their own careers. As part of this effort, we held networking events for female employees working as operators at manufacturing sites. The events included lively group discussions about the unique rewards and challenges of working in the operating division and participants’ visions for their future careers. We have also introduced an external mentorship program for female employees who aspire to managerial positions, with the aim of alleviating issues and anxieties in thinking about their careers and encouraging their growth.

ENEOS Receives Highest “Eruboshi” (L Star) Certification

In October 2020, ENEOS received the highest of three “Eruboshi” (L Star) certifications from the Minister of Health, Welfare and Labour as an enterprise fully compliant with the standards of the Act on Promotion of Women’s Participation and Advancement in the Workplace.

Promoting Mid-Career Hires to Managerial Positions

The Group is working to transform its human resources portfolio in accordance with the third Medium-Term Management Plan (FY2023–FY2025). As part of this effort, we are increasing the hiring of experienced professionals with expertise and knowledge that we currently do not have in-house in order to transform our business portfolio. We are also increasing the number of experienced personnel appointed to managerial positions.
As of March 31, 2023, ENEOS had 259 mid-career hires, 37 of whom were in managerial positions. The number of mid-career hires has already reached 40% of the number of university graduates hired, and we will continue to accelerate the recruitment of experienced personnel in order to acquire human resources with new ideas and abilities.
At JX Nippon Oil & Gas Exploration, the number of mid-career hires was 37, with five in managerial positions.
At JX Metals the number of mid-career hires was 560, with 76 in managerial positions.

  • Note:
  • Figures indicate the number of employees hired mid-career and those in managerial positions since fiscal 2017.

Promoting Foreign National Employees to Managerial Positions

The Group plans to strengthen its overseas business as it accelerates its energy transitions toward 2040. As one of the measures to retain and develop human resources who will play leading roles in our efforts, we are focusing on hiring foreign nationals. We will also increase the appointment of foreign nationals to managerial positions.
As of March 31, 2023, ENEOS had 55 employees of foreign nationality, of which four were in managerial positions. At JX Nippon Oil & Gas Exploration, the number of employees of foreign nationality was seven, with four in managerial positions, and at JX Metals the number of employees of foreign nationality was 16, of which four were in managerial positions.
In addition to the above, there were a total of 644 employees of foreign nationality serving in managerial positions at our overseas subsidiaries.

Promoting Career Opportunities for Employees with Disabilities

The Group promotes active participation by employees with disabilities by providing assignments based on individual characteristics and aptitudes rather than grouping individuals at specific worksites. The Group also engages counselors and job coaches to support employees with disabilities in worksite adaptation.
At the end of fiscal 2022, the percentage of employees with disabilities was 2.44%, higher than the legal requirement of 2.3%. Looking ahead, we will continue our efforts to hire and enhance our support structure for
people with disabilities. In addition, we are a signatory and participant in The Valuable 500, an international
initiative that supports the advancement of people with disabilities.

Re-employment of Retired Employees

The Group has put in place a re-employment system for employees who have the desire and motivation to continue working after mandatory retirement. This system provides these employees with further opportunities to share their valuable knowledge, skills, and experience with the company.
In fiscal 2022, the number of employees re-employed after retirement was 473.

  • Note:
  • Data from ENEOS Holdings and principal operating companies.
Promoting the Active Participation of Senior Employees

Senior personnel with a wealth of knowledge and experience are invaluable resources for transforming and improving our base businesses in accordance with the third Medium-Term Management Plan. Retaining human resources is becoming increasingly critical, and as part of these efforts we have developed a system that enables more active participation by senior employees.
ENEOS ensures appropriate treatment of employees rehired after mandatory retirement through a system in which ranking (grade) and salary are based on the magnitude of the role they play in our operations. We expect many of these rehired retirees to fulfill roles equivalent to those of the current generation of managers, and have accordingly established a new role grade equivalent to the manager level.
JX Nippon Oil & Gas Exploration has applied the same system as the one for its current employees, which has eliminated imbalances in job responsibilities and treatment.
JX Metals raised the mandatory retirement age from 60 to 65 and applies the same salary increases and promotion system for rehired retirees as it does for general employees.

Creation of Local Jobs

The Group is actively engaged in employing local staff at our overseas business sites.

Number of Locally Hired Staff at Overseas Sites (Fiscal 2022)

(Persons)

ENEOS 1,160
JX Nippon Oil & Gas Exploration 337
JX Metals 3,137
Total 4,634

Ikuboss Corporate Alliance Membership and Activities

ENEOS has been a member of the Ikuboss Corporate Alliance*, established by NPO Fathering Japan, since fiscal 2017. Within the company, we are sharing the ideal attributes for supervisors required in an increasingly diverse workplace and pursuing various initiatives to develop suitable human resources.
In fiscal 2022, we held diversity management training for managerial staff at the team leader level and above, including officers. The curriculum was designed to instill the knowledge and awareness of diversity management required of managerial staff from a standpoint of uniting subordinates with various attributes and making them the underlying strength of the organization. Voluntary training was also conducted as a follow-up for the participants in the training. The participants brought their own workplace issues and awareness to the table, and each participant shared their thoughts and opinions.

Main Points

Diversity management training (e-learning) for all managerial staff

  • Enhancing the strengths of subordinates
  • Preparedness as a supervisor
  • Elimination of time wasting
  • Enhancing organizational strengths
  • Employee awareness

Voluntary diversity management training

  • Dealing with unconscious bias
  • Sharing of problem awareness in the workplace and group discussions
  • *An “ikuboss” is a boss (executive or manager) who thinks about the work-life balance of staff under his or her supervision. Ikubosses support the careers and lives of their staff, while delivering results to the organization and enjoying their own work and private lives. The Ikuboss Corporate Alliance is a network of companies that are actively working to change the mindsets of their management staff as part of their efforts to foster ikubosses in this new age.
ENEOS Ikuboss Declaration
  1. 1.We will work to reduce total annual working hours to enable our entire workforce to reach their full potential despite time constraints due to life events.
  2. 2.We will promote diversity, equity, and inclusion centered on the advancement of women in the workplace in order to pursue business reforms under a flexible mindset.
  3. 3.We value work-life balance and will support bosses who actively enjoy life and encourage those around them to do the same.
  4. 4.We will foster Ikubosses as drivers of these initiatives.

Initiatives for Sexual Minorities

The entire Group is working to foster an organizational culture that correctly understands sexual minorities and accepts their individuality. In fiscal 2022, we published the Workplace Support Guidebook for Sexual Minorities and set up a dedicated in-house consultation contact point.
For example, ENEOS conducts e-learning for all employees as part of its human rights awareness training. We also have a consultation contact point for sexual minorities. In fiscal 2022, we strengthened our internal support system by forming an in-house support group called ENEOS ALLY to show understanding for the values and conduct of sexual minorities.
In November 2022, as in the previous year, work with Pride* awarded ENEOS the Gold Award, their highest honor, based on their “PRIDE Index,” an evaluation index on programs related to sexual minorities within businesses and organizations.

  • *A private organization that supports the promotion and instillment of diversity management concerning
    sexual minorities within business organizations.

Raising Awareness among Employees

We conduct e-learning to inform and raise awareness among employees about the importance of diversity, equity, and inclusion.

Publication of Women’s Empowerment Newsletter

ENEOS publishes the Women’s Empowerment Newsletter for its manufacturing sites in order to make diversity, equity, and inclusion a more familiar topic to all employees. In fiscal 2022, the newsletter featured articles on topics such as the advancement of women in the workplace, the promotion of diversity, equity, and inclusion, and networking sessions held for female operators working at manufacturing sites.

Engagement Survey

ENEOS conducted an engagement survey in fiscal 2022 with the aim of improving employee engagement through the visualization and improvement of issues and problems between the company and employees. In this process, we also checked motivation to work and demonstrate one’s abilities, career perception, and the status of diversity, equity, and inclusion. Findings from the survey are now being used to consider subsequent measures.
JX Nippon Oil & Gas Exploration plans to conduct an engagement survey in fiscal 2023.
JX Metals conducted an employee awareness survey in fiscal 2022, which it will continue to conduct once every two years.

Work-Life Management

In accordance with the basic approach below, the Group aims to reduce total annual working hours and encourage the taking of annual paid leave to increase the motivation and creativity of each and every employee and enable them to maximize their abilities.

Work-Life Management Guidelines
  • To allow adequate time for each and every employee to achieve a good balance between work and private life, we promote the reduction of total annual working hours and encourage the taking of annual paid leave by improving productivity and workflow.
  • We work to ensure the establishment and utilization of effective human resource systems and programs, so that even employees limited in their workstyles by circumstances such as childcare and family care can achieve sustainable career development and performance.
  • We raise employee awareness to promote understanding of the importance of work-life management.

Proper Management of Total Annual Working Hours

The Group defines those regulations related to Japan’s Labor Standard Act, such as working hours, rest periods, days off, and leave, as human resource regulations.
We have developed a mechanism for the proper calculation and management of working hours in order to reduce total annual working hours (reduce overtime work and encourage the taking of annual paid leave), including for managerial staff.

  1. 1.Prevention of prolonged working hours
    Implement Action 5+, an internal program that prohibits working on Sundays and between the hours of 10 p.m. and 6 a.m. IT systems issue reminders to those working prolonged hours and their supervisors. Additionally, robotic process automation (RPA) is used to automatically aggregate data on working hours and distribute it to the relevant human resources staff at all business sites daily.
  2. 2.Visualization of overtime hours
    Post the working hours of all workplaces monthly on our intranet.
  3. 3.Training to encourage changes in mindset/behavior
    Hold training sessions for managers at the deputy general manager level on closely managing working hours in their organizations. Implement e-learning for managers at the section manager level and below and non-managerial employees on working hours and rest periods based on the Labor Standards Act.

Encouraging Employees to Take Annual Paid Leave

The Group promotes various initiatives at our Group companies to encourage employees to take annual paid leave.

Major Measures

  1. 1.Formulation of plans for taking annual paid leave: At the start of each year, each employee draws up a schedule for taking paid leave for the year.
  2. 2.Designation of first extended holiday (five consecutive days or more) and second extended holiday (three consecutive days or more): Employees are encouraged to designate two extended holidays for the year using their annual paid leave.
  3. 3.Designation of memorial day (one day per year): Fostering a culture where employees set one day a year of their choice to take annual paid leave.
  4. 4.Designation of days where employees are encouraged to take annual paid leave (around 2 days/year): The Company designates weekdays, adjacent to national holidays, when employees are encouraged to take annual paid leave.
  5. 5.Availability of annual paid leave in half-day increments: Encourages flexible use of annual paid leave.
  6. 6.Managerial staff serve as role models in actively taking annual paid leave.

Status of Annual Paid Leave in Fiscal 2022

Number of days granted 22.0
Number of days taken 19.5
Usage rate 88.8%
  • Note:
  • Data from ENEOS Holdings and principal operating companies.

Review of Operational Efficiency and Unnecessarily High Quality of Work

By promoting vigorous workstyles and work-life management through workstyle reforms, ENEOS Holdings and ENEOS are working to secure and develop talent as well as enable employees to engage in higher-value-added work.
Specifically, our initiatives target work efficiency and the maximization of results through a best mix of on-site work and telework (working from home). To this end, when delegating work to others or when starting one’s own work, we encourage employees to mutually clarify deadlines, workloads, and work responsibilities. In addition, we previously required employees using telework to come to the workplace at least one day per week, but we have eliminated this requirement to encourage more autonomous workstyles.

Major Systems for Promoting Work-Life Management

The Group has developed systems to promote work-life management at Group companies.

Systems Introduced in Fiscal 2022

Increased number of paid leave days for menstrual leave, allowed in half-day increments
In order to create an environment in which women can play an even more active role, ENEOS Holdings and ENEOS have set the number of days of paid leave permitted for menstrual leave at three days per time, which can now be taken in half-day increments.

Major Systems for Work-Life Management at Group Companies

  System Implemented at
Childbirth/Childcare Special time off for spouse’s childbirth (paid) ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration, JX Metals
Childcare leave (until the child reaches the age of 2; first 14 days are paid) ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration, JX Metals (unpaid*)
Time off for child rearing (paid) ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration
Time off to care for an ill child (paid) ENEOS Holdings, ENEOS (taken in 1-hour increments), JX Nippon Oil & Gas Exploration (taken in 1-hour increments), JX Metals (unpaid*)
Time off for expectant mothers to receive health guidance (paid) ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration
Time off for childcare (paid) ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration, JX Metals (unpaid*)
Childcare leave benefit ENEOS
Support for babysitter use ENEOS, JX Metals
Childcare subsidies ENEOS, JX Metals
Daycare at business sites ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration, JX Metals
Counseling services for pregnancy, childbirth and childcare ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration, JX Metals
Return-to-work grant JX Metals
Childcare concierge service JX Metals
Family care Family care leave (730 days; first 14 days are paid) ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration (365 days; first 14 days are paid), JX Metals (unpaid*)
Time off for family care (paid) ENEOS Holdings, ENEOS (taken in 1-hour increments), JX Nippon Oil & Gas Exploration (taken in 1-hour increments), JX Metals (unpaid*)
Family care leave benefit/allowance ENEOS, JX Metals
Home helper subsidies ENEOS, JX Metals
Family care subsidies ENEOS, JX Metals
Telephone family care consultation service ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration, JX Metals
Re-hiring system for retirement due to family care JX Nippon Oil & Gas Exploration
General Telework (working from home) system ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration, JX Metals
Flextime system ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration, JX Metals
Reduced work hours system ENEOS Holdings, ENEOS, JX Nippon Oil & Gas Exploration, JX Metals
Study abroad (at own expense) leave of absence system ENEOS
Spouse accompaniment leave of absence (retirement) system ENEOS Holdings, ENEOS
Spouse accompaniment job transfer system ENEOS Holdings, ENEOS
Job transfer deferment system ENEOS Holdings, ENEOS
Leave system for supporting continuation of career JX Nippon Oil & Gas Exploration
Reduced work days system (employees re-hired after mandatory retirement) JX Nippon Oil & Gas Exploration
Cumulative annual paid leave JX Metals
Return-to-work system JX Metals
  • Notes:
  • Data from ENEOS Holdings and principal operating companies.
    The systems listed above are company systems, which are separate from public systems.
  • *Accumulated days of annual paid leave can also be used to take leave for family care and childcare (paid leave).

Utilization of Major Systems in Fiscal 2022

Number of employees taking childcare leave 357 (of which 316 are male)
Percentage of male employees taking childcare leave 77.9%
Percentage of employees returning to work after taking childbirth or childcare leave 100%
Retention rate 12 months after returning to work 97.4%
Number of employees taking family care leave 9
  • Note:
  • Data from ENEOS Holdings and principal operating companies.
Telework

ENEOS Holdings and ENEOS have introduced a telework system to enable employees to work in a variety of ways that take into account their individual circumstances. We are also promoting telework, and we give employees the option of using both telework and office work as they see fit to maintain and improve individual and organizational productivity. Currently, the percentage of head office staff working at the office is around 50%.

Shareholding Association System

The ENEOS Group has established an employee shareholding system to help employees build their wealth. Through the shareholding association, employees of Group companies can acquire shares of ENEOS Holdings.