Environmental Management

The Group’s Sustainability Strategy Committee is chaired by the Group CEO. Via these committee meetings, under the supervision of the executive officer in charge of sustainability, the Sustainability Initiative Department manages the progress of the Group’s environmental activities such as efforts to address climate change, as specified in the long-term vision and the Consolidated Medium-Term Management Plan, and also identifies issues and devises appropriate measures. The executive officer in charge of sustainability is responsible for environmental measures such as action to address climate change, while the Group CEO, who chairs the Sustainability Strategy Committee, has the final responsibility for decision-making.

The Sustainability Strategy Committee members include the executive officers, the general manager of the Corporate Planning Department, the general manager of the Internal Auditing Office of Cosmo Energy Holdings, as well as the CEOs of the core operating companies (Cosmo Oil, Cosmo Oil Marketing, and Cosmo Energy Exploration & Production). Directors who are members of the Audit and Supervisory Committee and independent outside directors also attend meetings as observers and provide objective perspectives.

Committee meetings deliberate on important operations and policies　related to environmental issues. Matters deemed to have a major impact on the entire Group are discussed and reported to the Board of Directors, thereby ensuring appropriate oversight by the Board.

In fiscal 2023, the Sustainability Strategy Committee reported to the Board of Directors on important matters related to climate change, including a review of the Group’s Roadmap for Achieving Net Zero Carbon by 2050, as well as an assessment of greenhouse gas (GHG) emission reduction target results. This information is also shared with Group companies at Sustainability Liaison Committee meetings to enable coordination across the entire Group.

The Group’s main business sites which have a significant impact on the environment — eight sites, including refineries — have obtained ISO 14001 certification. In addition to internal audits, the Group’s business sites also undergo external reviews to assess not only compliance with relevant laws and regulations, but also to determine whether initiatives are being implemented to reduce environmental impact on air and water.

Safety and environmental inspections are conducted at least once a year at Cosmo Oil’s Chiba, Yokkaichi, and Sakai refineries, as well as at Cosmo Matsuyama Oil. They are also conducted at least once every two years at Cosmo Oil Lubricants’ Shimotsu and Osaka plants.

Moreover, Maruzen Petrochemical’s Chiba and Yokkaichi plants carry out environmental and safety audits at least once a year.

We conduct regular soil surveys at Cosmo Energy Group business sites and service stations to prevent soil contamination and ensure a quick and proper response in the event of any oil leakage. We also conduct soil remediation and monitoring in response to environmental impacts, as needed.

In fiscal 2023, 14 soil surveys were conducted and one soil remediation project was completed.

As of the end of March 2023, a total of 1,180 service stations had been surveyed since 2001.

Based on the revision of Japan’s Fire Service Act in June 2010, underground fuel storage tanks installed 40 or more years ago were required to be reconditioned. We have completed the applicable rehabilitation processes at all service stations owned by the Group. For those owned by distributors, our sales representatives are providing them with the necessary support to determine the deadlines for underground tank rehabilitation and to prevent underground fuel leaks.

At new service stations, we are installing equipment that has an extremely low risk of leakage, such as double-shelled fuel tanks to prevent leaks and resin piping that does not corrode. We are also making equipment improvements at older stations, such as updating and strengthening piping materials and taking measures for electrical corrosion protection, to suit the needs of situation.

For the number of environmental accidents and our compliance with environmental laws and regulations, please see “Number of environmental accidents” in ESG Data.