Initiatives to Achieve Net Zero Carbon
In 2021, the Group issued its 2050 Net Zero Carbon Declaration, and set the goal of reducing Scope 1 and 2 greenhouse gas (GHG) emissions from the Group's business activities to net zero by 2050. In 2022, we established a roadmap that outlines the required initiatives and processes to achieve this goal.
Then, with the release of the Seventh Consolidated Medium-Term Management Plan, we announced that we would expand the scope of our Net Zero Carbon Declaration to include supply chain emissions, thereby broadening the goal to include Scope 3 emissions. Accordingly, the Group is investigating initiatives to reduce GHG emissions and ways to achieve them.
Roadmap for Achieving Net Zero Carbon by 2050
Our Roadmap for Achieving Net Zero Carbon by 2050 was prepared using a scenario analysis recommended by the Task Force on Climate-related Financial Disclosures (TCFD), along with an analysis of the Group’s external and internal environments.
Pursuing Carbon Neutrality in Collaboration with the Oil Industry
As members of the Petroleum Association of Japan, which is made up of oil refining and wholesaling companies, Cosmo Oil and Cosmo Oil Marketing are participating in the association’s Vision for Carbon Neutrality in the Petroleum Industry, and taking action accordingly.
Vision for Carbon Neutrality in the Petroleum Industry
Japan’s oil industry is accelerating its efforts to decarbonize the petroleum supply chain and products. While aiming for net zero CO2 emissions (Scope 1 and 2 emissions) arising from business activities, the industry is actively working on research and development and social adoption of innovative decarbonization technologies that can utilize existing infrastructure, such as (1) CO2-free hydrogen; (2) synthetic fuels; and (3) carbon capture and storage/utilization (CCS/CCU). By also taking on the challenge of achieving net zero Scope 3 emissions arising from the products supplied, the industry is working to contribute to carbon neutrality for society as a whole.
For details, visit the Petroleum Association of Japan website.
If our industry organization were to adopt a position that is significantly weaker or inconsistent with the Cosmo Energy Group Code of Conduct, we would engage with the organization. If the organization failed to revise its position, our Code of Conduct would take precedence.
Progress in Reducing GHG Emissions
The Cosmo Energy Group has always positioned the reduction of GHG emissions as an important issue, and we have been working to reduce CO2 emissions throughout the supply chain. In FY2025, the first year of the Seventh Consolidated Medium-Term Management Plan, actual GHG emissions (Scopes 1 and 2) amounted to 7.01 million tons of CO2, a 13% reduction compared to FY2013 (direct CO2 reduction of 1,050,000 tons). This was the result of increased efficiency of our manufacturing division (improved energy consumption intensity) and a decrease in crude oil processing due to regular maintenance.
Furthermore, as part of green transformation (GX), one of the management foundation transformation themes set forth in the Seventh MTMP, we are working towards our goal of reducing GHG emissions by 30% by 2030 compared to FY2013 (including Scopes 1 and 2, and reduction contributions). In FY2025, we achieved a 19% reduction compared to FY2013, which includes contributions from biofuels and renewable energy, equating to a total CO2 reduction of 640,000 tons.
For actual GHG emissions and reduction contributions, please refer to the ESG Data: Greenhouse gas (GHG) emissions.
Energy Saving Activities
Energy consumption for the entire Cosmo Energy Group in fiscal 2025 was 111,273 TJ, up about 7% from the previous fiscal year.
Energy consumption intensity at Group refineries in fiscal 2025 worsened by approximately 1% compared with the previous fiscal year. This result reflected the impact of reduced operations associated with scheduled maintenance, even as we continued our energy saving activities.
Energy consumption intensity in transport operations in fiscal 2025 worsened by approximately 1% for marine transport (coastal tankers) and improved by approximately 1% for land transport (tank trucks) compared with the previous fiscal year.
In fiscal 2026, we will examine energy saving measures that account for changes in the external environment and will work to advance our energy saving activities.
Please refer to ESG Data：Energy consumption for details of energy usage and energy consumption intensity.
Developing Environmentally Friendly Businesses
In addition to electricity services for households and corporations, Cosmo Oil Marketing works to help customers to decarbonize by offering solutions that combine renewable energy, solar PPAs, *1 batteries and an EMS, *2 EV leasing and chargers, and vehicle and charging management. In particular, for corporations and local governments, it offers the Cosmo Zero Carbon Solution, which combines renewable energy and EVs in a single package and provides comprehensive support for efforts to achieve carbon neutrality.
Cosmo Denki Green for Households
With the Cosmo Denki Green program, customers can purchase CO2-free electricity that is essentially 100% renewable energy. This is done by offering non-fossil-fuel energy certificates for electricity derived from renewable energy that are equivalent to or exceed the customer’s annual electricity consumption. This option results in a CO2 emission coefficient of zero. For this program, Cosmo Oil Marketing procures wind-generated electricity from Cosmo Eco Power and supplies it to customers.
Moreover, since a portion of the electricity sales is donated to the COSMO Eco Fund, Cosmo Denki Green customers are also able to support the environmental activities of this fund.
Cosmo Denki Business Green for Corporations
Cosmo Denki Business Green supplies renewable electricity to a wide range of business sites and facilities across Japan, covering everything from low-voltage to high-voltage and extra-high-voltage needs.
Under Cosmo Denki Business Green, in addition to a plan that supplies 100% renewable electricity (RE100-compliant), we offer the Business Green MIX plan, which allows customers to select a renewable energy rate of 30%, 50%, or 70%. This enables flexible plan design tailored to customers’ sustainable management goals and their stage of adoption.
As an option for Cosmo Denki Business Green contracts, we also offer the Cosmo Denki Business On-site PPA Plan, which allows customers to install a solar power generation system with no initial investment in their own equipment. This makes it possible to use renewable energy for self-consumption and to secure an emergency power source in the event of a disaster.
We also propose the Cosmo Denki Business Off-site Physical PPA Plan, which procures renewable energy generated outside the customer’s premises. Under an off-site physical PPA, electricity and environmental value are supplied together via a retail electricity provider. This enables customers to introduce renewable energy sources with additionality without installing equipment on site.
In all of these ways, Cosmo Oil Marketing is combining on-site PPAs, off-site PPAs, and renewable electricity menus to provide comprehensive support for introducing the renewable energy best suited to the business characteristics and decarbonization policies of corporate customers and local governments.
Cosmo Zero Carbon Solution
The Cosmo Zero Carbon Solution is a one-stop service that starts from renewable energy, such as wind and solar power, and combines energy management, energy conservation programs, and mobility services to meet customers’ low-carbon and energy-saving needs. For the adoption of renewable energy, we focus on sales of Cosmo Denki Business Green and offer a wide range of solutions, including EV leasing (Cosmo My Car Lease), EV chargers, energy conservation, batteries and EMS, and air-conditioning control.
These solutions seek to reduce CO2 emissions and lower contract power and electricity usage by facilitating the installation of higher efficiency equipment. They are used by businesses and local governments to comply with decarbonization regulations and to reduce costs by saving energy.
1. Power purchase agreement (PPA): A contract where the equipment installation provider installs a solar system on the customer’s property and the customer purchases the generated electricity.
2. Energy management system (EMS): A system for optimizing battery charging and discharge.
