Business Continuity Plan (BCP) Initiatives
BCP for Earthquakes and Other Major Disasters
The Cosmo Energy Group sees the stable supply of petroleum products as its biggest mission, and this mission must still be fulfilled in crisis conditions. We have developed a Group BCP that covers the entire supply chain, from refineries to service stations, including all Group companies involved in supplying petroleum products.
We have established a system to ensure that a Crisis Response Headquarters is set up to initiate the BCP at each of the head offices of Cosmo Energy Holdings, Cosmo Oil, and Cosmo Oil Marketing in the event of a large-scale disaster, and each company has formulated its own BCP manual. Furthermore, to enable the continuation of stable supply even in the event that a Crisis Response Headquarters cannot be set up at the head offices due to a Tokyo Inland Earthquake, loss of head office functions, or other reasons, we have prepared a BCP manual for setting up Temporary Crisis Response Headquarters at the Sakai Refinery of Cosmo Oil and the Cosmo Oil Marketing Osaka Office. We conduct emergency simulation drills, as well.
Overview of Cosmo Energy Group’s BCP for Earthquakes and Other Major Disasters
| Basic policy |
|
|---|---|
| Scenarios | Tokyo Inland Earthquake, Nankai Trough Megathrust Earthquake, Subduction Zone Earthquake Around Japan Trench and Chishima Trench, other regional earthquakes |
| Business continuity goals | We will strive to ensure the continuation of business operations, from refinery shipments to service station operations, without interruptions to the stable supply of petroleum products |
| Advance response (disaster management and mitigation) |
|
1. A plan for petroleum supply in the event of a large-scale disaster in which oil wholesaling companies work together to implement joint operations, including the establishment of a joint working system, joint use of facilities, and cooperation in transportation
Disaster Management Operation Plan
As a designated public corporation, as defined by the national government, Cosmo Oil has established a Disaster Management Operation Plan based on Japan’s Basic Act on Disaster Management.
Head Office BCP Communication Equipment
The Cosmo Energy Group has installed satellite telephones and multi-channel access (MCA) radio systems1 at each business site, to ensure constant and reliable contact even when landlines and mobile phones are down. Furthermore, emergency generators have been installed in the head offices, and the system is designed so that during emergencies, the regular power supply in work areas automatically switches to emergency power, supplying electricity to each work desk.
1. Wireless communications services available throughout Japan
Implementation of Crisis Response Headquarters and Temporary Crisis Response Headquarters Drills
In order to strengthen preparedness for a disaster such as a mega-thrust earthquake, Cosmo Energy Holdings, Cosmo Oil, and Cosmo Oil Marketing implemented a joint BCP drill on setting up the Crisis Response Headquarters at the then Tokyo Head Office(Hamamatsu-cho Building) on September 3, 2024. On November 26, 2024, based on a scenario in which the Head Office building cannot be used for the Crisis Response Headquarters due to damage from a Tokyo Inland Earthquake, they also held a drill on setting up Temporary Crisis Response Headquarters at the Sakai Refinery of Cosmo Oil and the Osaka Office of Cosmo Oil Marketing.
We reflected the points for improvement we identified through these drills in the manual and will also make use of these issues for the next drill.
Going forward, we will implement a variety of BCP drills as part of our risk management activities to fulfill our commitment to providing a stable supply of petroleum products.