Initiatives to Address Climate Change

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.
https://www.paj.gr.jp/environ/carbon_neutral

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.

We have always positioned the reduction of GHG emissions as an important issue and have been working for years to reduce CO2 emissions throughout the supply chain.

Actual CO2 emissions in fiscal 2022, the final year of the Sixth Consolidated Medium-Term Management Plan, were 6.92 million tons, a 7.2% reduction compared to fiscal 2013 (against a target of 16%). Although CO2 emissions intensity improved due to the increased efficiency of our manufacturing segment, the amount of avoided CO2 emissions was affected by two factors: crude oil refining exceeded the plan due to increased sales, and startup for some renewable energy expansion facilities (wind power) was delayed until fiscal 2023.

Under the Group’ s Seventh Consolidated Medium-Term Management Plan, we will make further efforts to reduce GHG emissions based on our Roadmap for Achieving Net Zero Carbon by 2050.

1. Biofuel: The avoided CO₂ emissions resulting from adding ETBE to gasoline is calculated as negative CO₂ emissions.

2. Expansion of renewable energy: CO₂ emissions avoiding by using renewable energy is calculated as negative CO₂ emissions (total power generation for the fiscal year concerned multiplied by the emissions intensity of the displaced fossil fuel-based electricity for the fiscal year concerned).

＊1. “Group-wide CO₂ emissions” are different from the fiscal 2013 (base year) net emissions (6.86 million tons) listed in the Roadmap for Achieving Net Zero Carbon by 2050, which was calculated based on Scope 1 and 2 emissions under the GHG Protocol standards.

“Group-Wide CO₂ Emissions” include CO₂ emissions from the Group’s transportation segment, which are Scope 3 emissions, but do not include those from crude oil production, which are Scope 1.

For energy consumption intensity at Group refineries in fiscal 2023, there was an approximately 2% improvement compared to the previous fiscal year. This was due to the promotion of energy conservation activities (such as the consideration of optimal operation of utility equipment). 

CO2 emissions decreased by approximately 10% compared to the previous year due to this decrease in equipment operation associated with periodic maintenance, etc. In fiscal 2024, we will continue to pursue energy savings by improving both equipment and methods.

Please refer to ESG Data：Energy consumption for details of energy usage and energy consumption intensity.

Actual results for energy usage and consumption intensity