Sustainability Management Promotion System

Based on our management vision—“In striving for harmony and symbiosis between our planet, man and society, we aim for sustainable growth towards a future of limitless possibilities.”—and our fundamental sustainability approach, which was developed by reflecting on the origins of this vision, we have systematically established Group Corporate Conduct Guidelines and various Group policies to put sustainable management into practice.

To reflect these principles in our business activities, the Group has identified material issues (“materialities”) that impact sustainable growth and the enhancement of medium- to long-term corporate value and is working to address them.

In fiscal 2025, as part of the key initiatives under the Seventh Consolidated Medium-Term Management Plan, we promoted initiatives related to our eight materialities, while also reviewing these materialities in preparation for the formulation of the Eighth Consolidated Medium-Term Management Plan.
From fiscal 2026 onward, we will promote sustainable management based on the revised materialities.

In fiscal 2021, when the Group started full-scale sustainability management, it established the Sustainability Strategy Committee, chaired by the Group CEO, to serve as the organization overseeing internal control. The committee played a key role in laying the foundation for the Group’s sustainability management. Through discussions within the committee, sustainability management became increasingly embedded in the Group’s operations, and efforts to integrate financial and non-financial initiatives progressed. Then in 2025, the Group adopted a new sustainability governance structure with the decision-making role assumed by the Executive Officers’ Committee. As a result, the Sustainability Strategy Committee was replaced by the Sustainability Strategy Council.

The Sustainability Strategy Council is chaired by the Executive Officer in charge of the Sustainability Promotion Department and comprises the Company’s Executive Officers, the officers in charge of sustainability at our core operating companies, and full-time members of the Audit and Supervisory Committee.

The Council deliberates on policies and plans relating to the non-financial aspects of the management plan, the identification, assessment and management of risks and opportunities, and the evaluation of the results of initiatives addressing materiality; it also submits and reports on important matters to the Executive Management Committee and the Board of Directors.

The Sustainability Committee, which is headed by the general manager of the Sustainability Initiative Department, meets as needed, functioning as the practical working body of the Sustainability Strategy Council.

In addition, 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 Council to ensure that all Group companies move forward in the same direction.

In fiscal 2025, the Sustainability Strategy Committee met seven times and discussed 22 agenda items, of which 8 were submitted or reported to the Executive Management Committee and 9  to the Board of Directors.

Where necessary, the matters discussed by the Sustainability Strategy Council are shared with Group companies through the Sustainability Liaison Committee. Moreover, the evaluation of progress toward Materiality KPIs (ESG Targets) has been reflected in executive remuneration as the directors and executive officers promote sustainability management.