The Cosmo Energy Group recognizes that the formulation and implementation of management plans with greater awareness of climate change is essential for the planet, society, and the company to achieve sustainable growth. Accordingly, the Cosmo Energy Group announced its 2050 Net Zero Carbon Declaration in May 2021 and established a roadmap outlining the initiatives and steps needed to achieve this goal.
Support for the TCFD Recommendations
In 2026, as part of the development of the Eighth Consolidated Medium-Term Management Plan, we revised the roadmap by envisioning three social scenarios that account for the uncertainty of changes in the external environment surrounding decarbonization, and by setting targets for both our own emission reductions and contributions to emission reductions across society as a whole.
Approach to Carbon Neutrality
Three Social Scenarios
With external factors affecting society and the economy expected to fluctuate even more significantly, we have envisioned multiple possible futures and developed three different social scenarios in order to respond flexibly to unpredictable situations. By using multiple scenarios, we will advance climate change response strategies that address uncertainties such as rapid environmental changes and unforeseen risks.
Greenhouse Gas Emission Reduction Targets
While fulfilling our mission to ensure a stable energy supply, the Group is promoting measures to reduce greenhouse gas emissions (Scope 1 and 2), working toward a reduction of 21% or more by fiscal 2030. By fiscal 2050, we aim to achieve net-zero carbon emissions, including Scope 3 emissions, together with the broader society.
Reducing Greenhouse Gas Emissions Across Society (Carbon Intensity Reduction Targets)
As part of efforts to reduce greenhouse gas emissions across Scope 1, 2, and 3 and throughout the supply chain, the Group is promoting reductions in the carbon intensity (CI*1) of the energy products it supplies. We will help accelerate the energy transition across society and contribute to realizing a carbon-neutral society through measures such as expanding the use of renewable energy and improving energy efficiency.
*1 CO2 emissions per total energy (mega joules) supplied by the Group
Target CO2 emissions: Scope 1 + 2 + 3 (Categories 1, 3, 4, 9, and 11)
Reducing Greenhouse Gas Emissions Across Society (Avoided Emissions Targets)
In addition to reducing its own emissions, the Group is working to contribute to reducing greenhouse gas emissions across society and among customers. By increasing GHG emissions avoided through our products and services, we aim to help build a carbon-neutral society, working together with local communities and other stakeholders.
Process for Achieving a Carbon-Neutral Society
While advancing renewable energy initiatives, one of the Group’s strengths, we will also pursue the supply of SAF and biofuels in step with advances in decarbonization technologies and markets, as well as demonstration projects and technological development in areas such as CCS, hydrogen/ammonia, and synthetic fuels — always with an eye on the future.
Initiatives for Carbon Net Zero
Initiatives to Reduce Greenhouse Gas Emissions
The Cosmo Energy Group aims to achieve net-zero carbon emissions by 2050 and is taking actions such as conserving energy at its refineries and running service stations on renewable energy-derived electricity. We will continue working to further reduce the environmental impact of our energy use.
Efforts in CCS/CCU
We are looking into CCS/CCU as part of our efforts to reduce emissions while fulfilling our responsibility to ensure a stable energy supply. We are developing a value chain focused on reducing CO2 emissions by separating and capturing CO2 emitted from refineries and other facilities, while also assessing the feasibility and investment profitability of CCU technologies for the effective use of CO2.
Efforts in the SAF and Hydrogen Businesses
In pursuit of resource circulation and a sustainable society, our SAF business has led the industry in working toward domestic mass production of SAF in Japan, establishing a supply chain from feedstock procurement to SAF production and sales. In the hydrogen business, we have formed a business partnership with Iwatani Corporation and are collaborating to build a hydrogen supply chain.
Efforts in Renewable Energy
Expecting long-term growth in renewable energy demand due to the global shift toward decarbonization, we are working to expand our renewable energy supply. Going beyond just power generation, we are integrating the entire supply chain—including supply-demand adjustment, power storage, and electricity sales—to encourage widespread adoption of renewable energy.
Circular Economy Initiatives
Promoting the circular use of resources and energy is essential to achieving net-zero carbon emissions by 2050. The Cosmo Energy Group collaborates with stakeholders and a wide range of partners to help build a circular society by using valuable resources and energy more efficiently.
Other Initiatives
Aiming to achieve net-zero carbon emissions and help build a circular society, we are promoting collaboration with local communities and pursuing DX/AI. In addition to improving energy efficiency based on local characteristics and needs, and achieving both regional revitalization and carbon offsetting, we are further enhancing the efficiency of energy use across the entire supply chain.
