Sustainability Management Promotion System

In order to put into practice the Cosmo Energy Group Management Vision and Code of Conduct and to execute duties appropriately and efficiently, the Cosmo Energy Group has established and operates a system for the execution of duties by directors and employees of the Company and Group companies, a risk management and internal audit system to support this execution, and a system to ensure that audits by the Audit & Supervisory Committee are conducted effectively, all in accordance with our Basic Policy on Internal Control Systems. We have also established the Sustainability Strategy Committee chaired by the Group CEO as the organization that oversees internal control.

The Sustainability Strategy Committee members include the executive officers and the general manager of the Corporate Planning Department, the full-time Audit and Supervisory Committee member at Cosmo Energy Holdings, as well as the CEOs and executive officers in charge of sustainability at core operating companies. The committee evaluates the results of activities on material issues under the Seventh Consolidated Medium-Term Management Plan and reports important issues to the Board of Directors.

In addition, the Sustainability Committee, which is headed by the general manager of the Sustainability Initiative Department, meets as necessary, functioning as the practical working body of the Sustainability Strategy Committee.

In fiscal 2023, the Sustainability Strategy Committee met seven times and discussed 15 agenda items, of which 7 were reported to the Board of Directors for deliberation and further discussion. Where necessary, the matters discussed by the Sustainability Strategy Committee were shared with Group companies through the Sustainability Liaison Committee. Moreover, the evaluation of progress toward ESG targets has been reflected in executive remuneration since fiscal 2022 as the directors and executive officers promote sustainability management. 

Committees have also been established at core operating companies (Cosmo Oil, Cosmo Oil Marketing, and Cosmo Energy Exploration & Production) and the semi-core operating company (Maruzen Petrochemical) according to their respective functions. These committees work with the Company’s Sustainability Strategy Committee to ensure that all Group companies are on the same page.

1.  For the names of the core operating companies and the semi-core operating company, please refer to Editorial Policy and Reporting Scope.