Message from the Executive Officer in Charge of Sustainability

The Cosmo Energy Group’s corporate mission is to contribute to both society and the environment through our energy business. While petroleum remains a foundation for global economic growth, the industry faces pressing challenges in reducing environmental impact and addressing climate change. In response, we are proactively pursuing transformations while prioritizing safe operations and stable supply, fulfilling our role as an energy company that supports a sustainable society.

For more than 20 years, the Group has positioned sustainable development (sustainability), as defined in our Group Management Vision, at the heart of corporate management, and has committed to undertaking environmentally friendly business operations. Building on this, in 2024, in addition to our existing brand statement, we defined six values—Integrity, Harmony, Safety, Pioneering, Self-startership, and Evolution—to guide us as we go forward and advance our sustainability efforts under a new brand framework. Our pursuit of sustainable value enhancement and development, grounded in our Group Management Vision, constitutes the very foundation of sustainability at the Group. Since FY2022, the evaluation of efforts to achieve ESG targets has been reflected in executive remuneration as directors and executive officers work to ensure sustainable management.

Based on our Group Management Vision and Basic Concept of Sustainability, the Group has identified its eight most important material issues.

When it comes to climate change countermeasures, one of these material issues, we announced our Net Zero Carbon Declaration in May 2021, committing to achieving net zero greenhouse gas emissions from our business operations by 2050. With the publication of the Seventh Consolidated Medium-Term Management Plan, we expanded this commitment to include our entire supply chain, aiming for net zero carbon emissions that include Scope 3 as well. We will continue to take on this challenge as a unified group, working steadily toward a carbon-neutral future.

Furthermore, investment in people is essential for implementing sustainable management. Defining promoting

human resources’ success, health, and job satisfaction as a material issue, we are pursuing a people strategy that motivates employees and harnesses their skills in an effort to cultivate talent who can help us realize Vision 2030. To enhance enterprise value, we are focused on strengthening the capabilities of individual employees and maximizing their performance by increasing employee engagement, while also prioritizing health and productivity management, which serves as the foundation for everything we do.

Regarding strengthening of Group risk management, another of our material issues, we recognize growing concerns over emerging risks, including geopolitical tensions, environmental regulations, and the impact of policy trends related to decarbonization and climate change. With the business environment constantly evolving, the need for even swifter responses has grown. To address this, our Group is working to further enhance risk management across all organizations through the operation of our Enterprise Risk Management (ERM) system.

From 2022 to 2024, we engaged in active dialogue with our investors and disclosed information in the area of sustainability through measures such as our annual investor-targeted ESG Presentation. Fulfilling our social responsibilities is vital to sustainable corporate growth. Aiming to continuously enhance enterprise value, we are committed to meeting stakeholders’ expectations by listening carefully to their opinions, engaging in continuous dialogue and collaboration, and working for the sustainable growth of society and the Cosmo Energy Group.