The Cosmo Energy Group has engaged in extensive discussions on its approach to the use of artificial intelligence (AI) and has established this approach in the form of its “AI Principles,” which were approved by the Board of Directors. We will ensure accountability for the implementation of these Principles under the supervision of the Board of Directors.
AI Principles
The Cosmo Energy Group recognizes AI as a key technology for driving business transformation and creating new value to realize the Cosmo Energy Group Management Vision (hereafter, the “Group Management Vision”): “Striving for an infinite tomorrow, developing sustainably in harmony with humanity, society, and our planet.”
As a provider of essential infrastructure, the Group contributes to solving societal challenges and building a better society by leveraging AI, while upholding its fundamental commitments to safe operations, stable supply, and consideration for the environment.
At the same time, the use of AI presents various challenges and risks arising from its inherent characteristics. To address these appropriately, these Principles set out the Group's fundamental approach to the use of AI from the perspectives of both value creation and risk management. They serve as a group-wide policy based on the Group Management Vision and the Corporate Code of Conduct.
1. Human-Centered and Fair Use of AI
In leveraging AI, the Group will strive to ensure fair use to protect human dignity and rights, as well as to prevent any individual or group from being subjected to unfair disadvantage. We will ensure appropriate human involvement in important decisions and clearly define where accountability lies.
2. Safety and Reliability
The Group will implement necessary safeguards to prevent unexpected AI behavior or inappropriate outputs from significantly impacting human safety, facility and operational stability, environmental preservation, customer service, management decision-making, and other key areas. For particularly critical operations, we will establish mechanisms such as pre-deployment validation, continuous monitoring, and fail-safe systems.
3. Data and Privacy Protection
The Group will properly manage data used by AI and protect sensitive information, such as personal and confidential information. When using information generated by AI, we will give due consideration to the rights of related parties, including privacy and intellectual property rights.
4. Information Security
The Group will implement appropriate security measures to prevent unauthorized access, information leaks, and other such incidents, thereby ensuring the safe use of AI models and connected systems.
5. Transparency and Explainability
The Group will clarify the purpose of AI use, applicable business operations, expected benefits, and key risks, and will strive to provide appropriate explanations to stakeholders. When using AI in critical operations or decision making, we will document the process and rationale for its use, verifying and reviewing its implementation as necessary.
6. Continuous AI Risk Management
The Group will establish a management framework according to AI use cases and risk levels, and will implement appropriate risk management measures. While taking into account changes in laws and regulations and technological developments, we will continuously review management practices and rules by incorporating insights gained through risk assessments, monitoring, incident response, and recurrence prevention measures.
7. AI Literacy Enhancement
The Group will provide education to develop the knowledge and judgment necessary for each employee to properly understand AI, including its mechanisms and risks, and to use it appropriately.
The Group will review and update the content of these Principles as necessary.
Established: August 6, 2026