Roadmap for Achieving Net Zero Carbon by 2050

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, the Cosmo Energy Group announced its 2050 Carbon Net Zero Declaration in May 2021.
We have developed a roadmap summarizing our efforts and processes to achieve this goal, based on scenario analysis by the Task Force on Climate-related Financial Disclosure (TCFD) and analysis of our external and internal environments.

Addressing climate change (Support for TCFD recommendations)/Japanese

GHG Emission Targets and Reductions

While fulfilling its responsibility to provide a stable supply of energy, The Group aims to reduce GHG emissions from its business operations(Scope 1+2) by 30% in 2030 (compared to fiscal 2013) through a shift to decarbonized energy and the use of negative emissions technologies. In addition, Aiming for net zero carbon emissions, including Scope 3, by 2050 to contribute to the realization of carbon neutrality for society as a whole.

<Scope 1+2 Emission Reduction Targets>

<Scope 3 Emission Reduction Initiatives>

We will work together with our stakeholders on "To create energy that shapes the Future" and contribute to the realization of a decarbonized society.
・Bolster green electricity supply chain
・Development and supply of biofuels including SAF  
・Initiatives for hydrogen supply chain and carbon recycled products

Priority Themes for Achieving Net Zero Carbon

The Group will contribute to the carbon neutrality for society as a whole by working on "To create energy that shapes the future" as well as working on the shift to decarbonized energy and negative emission technologies.


Basic Approach and Procedures for Achieving Net Zero Carbon

Initiatives for Achieving Net Zero Carbon: Oil Exploration and Production/Petroleum and Petrochemicals

Understanding the External Environment

Further efforts are required to achieve decarbonization in Cosmo Energy's oil exploration and production/petroleum and petrochemical businesses. Negative emissions technologies are expected to be more commonplace by 2030 as the development of separation, recovery and utilization technologies reduces cost. In the hydrogen sector, pilot manufacturing is underway, though further cost reduction is needed. As for ammonia, efforts are underway to secure its use as an energy source as quickly as possible. Progress is being made outside of Japan on the practical application of next-generation fuels, and the goal in Japan, too, is to achieve its widespread use in the future.

Initiatives to Reduce and Eliminate Carbon

1. Shift to Decarbonized Energy

The Group will reduce Scope 1 and Scope 2 emissions through a fuel shift (to use of LNG, hydrogen, ammonia, etc.), introduction of renewable energy, and energy conservation.
The Group is working to switch the electricity used at all service stations operated by Cosmo Oil Sales to electricity that is virtually all from renewable energy sources.

2. Use of Negative Emissions Technologies (CCS/CCUS, CO2-EOR, etc.)

The Group will study the feasibility of utilizing carbon dioxide enhanced oil recovery (CO2-EOR) technology in oil fields and other locations where it holds concessions. Studies will also be conducted on carbon dioxide capture and storage (CCS) and carbon dioxide capture, utilization and storage (CCUS) technologies to recover CO2 from major equipment and utilize CO2.

3. Initiatives for Next-Generation Energy/Raw Materials

Utilizing its expertise in producing and handling hydrogen, the Group will consider the hydrogen station business, engineering related to hydrogen production and other matters, and the use of receiving terminals in Japan and overseas hydrogen sources to establish a hydrogen supply chain.
Further, the Group has concluded a memorandum of understanding with Masdar, a UAE-based company with which the Group has maintained a close relationship, regarding the consideration of collaboration in the field of decarbonization in, for example, offshore wind power farms, hydrogen, and ammonia projects.

In addition, the Group’s proposal of “Establishment of a Supply Chain Model for Bio-jet Fuel Production from Domestic Used Cooking Oil” was selected as a public call project by the New Energy and Industrial Technology Development Organization (NEDO). Through this project, the Group aims to demonstrate and establish a supply chain model for bio-jet fuel production from used cooking oil and to begin full-scale supply of sustainable aviation fuel (SAF) by 2025.

Overview of SAF Production and Supply Chain Model Development

The Group company Maruzen Petrochemical Co., Ltd. was selected for a NEDO Green Innovation Fund project in recognition of its chemical recycling technology. Through this project, the company aims to establish chemical recycling technology by 2030.
As a further initiative, the company is also studying the possibility of supplying recycled carbon products (synthetic fuels and chemicals).

Initiatives for Achieving Net Zero Carbon: Renewable Energy Business

Understanding the External Environment

In 2021, the Japanese Cabinet approved its Sixth Strategic Energy Plan. This plan presents an outlook that, in light of the new GHG emission reduction target for fiscal 2030, anticipates renewable energy accounting for 36–38% of power sources in fiscal 2030 under the ambitious assumption that various challenges in both supply and demand will be overcome. As part of these efforts, the introduction of solar photovoltaic/onshore wind generation is expected to continue and offshore wind projects are expected to accelerate.

In addition, with an eye toward achieving a carbon neutral world, efforts to decarbonize led by corporations and local governments are expanding. The Group recognizes the growing need for electricity from renewable energy sources and increased expectations for the development and supply of renewable energy power sources.

Initiatives to Reduce and Eliminate Carbon

1. Onshore/Offshore Wind Power Projects

The Group company Cosmo Eco Power plays a central role in the Group's renewable energy business. The company is building an entirely in-house system capable of developing, designing, constructing, operating and maintaining onshore wind power plants. The company is also engaged in offshore wind power projects, which are expected to expand in the future.


2. Retail Electricity Sales (Supply of Electricity from Renewable Energy Sources)

The Group supplies renewable energy generated at Group power plants to both individuals and corporations.

3. Other Renewable Energy

The Group is studying the possibilities for solar, geothermal and biomass power generation that utilizes its technologies and networks.

4. Cosmo Zero Carbon Solution

The Group has consolidated its assets to provide a package of products related to the introduction and utilization of renewable energy and EVs to help promote decarbonization by corporations and local governments.

Cosmo Zero Carbon Solution logo


Initiatives for Achieving Net Zero Carbon: Mobility Business

Understanding the External Environment

In light of Japan's 2050 Carbon Neutral Declaration, the Group recognizes the growing demand among corporations and local governments for EVs and other next-generation vehicles.

Initiatives to Reduce and Eliminate Carbon

Package of Solutions for Introduction and Effective Utilization of EVs

The Group has proactively incorporated EVs into its existing car leasing business and has begun providing easy and convenient EV car sharing services. In addition, by leveraging the assets of its renewable energy business, the Group provides comprehensive support for decarbonization efforts.

1. Providing EVs via Cosmo My Car Lease Services

The Group is now able to provide EVs through its Cosmo My Car Lease and Yasashii (friendly) Car Sharing services. By supplying these EVs with its own electricity generated from renewable energy sources, the Group aims to help achieve a zero-emission EV world.

Wind to the car

2. Hydrogen Station Projects

The Group is working to enter the hydrogen supply chain by opening its first hydrogen station in 2024, utilizing existing assets and developing a hydrogen station for trucks.

3. Rapid EV Charging Equipment at Service Stations

The Group is focused on installing rapid charging equipment for EVs at affiliated service stations and developing related services.


Initiatives for Achieving Net Zero Carbon: Contributing to Co-Creation with Local Communities

Understanding the External Environment

As more municipalities are declaring themselves to be zero carbon cities, the need for a variety of decarbonization methods is rising. At the same time, companies affiliated with these municipalities are also expected to take the initiative in decarbonizing, as well.

Initiatives to Reduce and Eliminate Carbon

Contributing to Community Decarbonization in Energy and Mobility Sectors

The Group is considering projects that contribute to community revitalization and lead to next-generation businesses in the mobility, renewable energy, and distributed energy sectors. The Group is also pursuing initiatives to help communities decarbonize by utilizing its nationwide network of service stations.

1. Aizu Innovation Office

The Group established its Innovation Office in Aizu Wakamatsu to help create regional models utilizing ICT, environmental technology, and other technologies in Aizu Wakamatsu Smart City. The office aims to analyze energy and mobility-related case studies in order to grasp the needs of the community and incorporate these needs into Group projects.