Basic Approach to Human Rights

The Cosmo Energy Group recognizes the responsibility to ensure that the human rights of every stakeholder are fully respected. This is why our Code of Conduct clearly states our respect for human rights, and why our Human Rights Policy stresses the importance of human rights and our corporate responsibility to respect them. The Cosmo Energy Group will fulfill its Management Vision and contribute to the development of a sustainable world by maintaining respect for human rights across all of its business activities, in accordance with the Human Rights Policy.

Implementation Structure 

The Board of Directors supervises the Group’s efforts to decide, promote, implement, and verify execution of basic policies on corporate ethics. This includes the Group’s efforts to promote, implement, and verify execution of efforts to respect human rights and prevent and rectify any human rights violation that my occur either in or outside of Japan. Our Sustainability Strategy Committee and Sustainability Committee serve to fulfill these purposes.

 

We also look at the entire supply chain, investigating human rights compliance across the supply chain within the framework of our sustainable procurement initiatives.

Implementing Human Rights Due Diligence

In fiscal 2022, the Group conducted human rights due diligence in accordance with the United Nations Guiding Principles on Business and Human Rights (UNGPs) on the value chain of petroleum products, our main business. The goal was to identify and evaluate human rights risks, and to propose improvement measures (such as establishing an educational mechanism). Based on written and interview-based surveys, employee awareness surveys, and external information, we evaluated apparent and latent risks and management structure vulnerabilities, seeking to create a map of potential human rights issues related to our petroleum-related businesses. Today, we are working on corrective and remedial measures to address the human rights-related vulnerabilities we identified.

Map of human rights issues

Relief Mechanism

The Group has established the Cosmo Energy Group Corporate Ethics Office to promote and implement activities related to corporate ethics and human rights. In addition, contact points for the Cosmo Energy Group Corporate Ethics Consultation Helpline, which allows employees to anonymously consult on and report misconduct and ethical issues, such as violations of laws and company rules, have been established both within and outside the Group.

Expert Dialogue

We invited Hideki Matsuoka, Special Project Manager at the Asia-Pacific Human Rights Information Center (Hurights Osaka) to exchange views on our human rights initiatives with Takaki Kodama, General Manager of our Sustainability Initiative Department.

 

Kodama: In December 2021, we established our Human Rights Policy, which states our commitment to protecting human rights not only within the Group but also throughout the supply chain. Between August and November 2022, we conducted the first phase of human rights due diligence on the value chain of petroleum products, our main business. We intend to expand the scope to the entire Group in the future. We would be interested in receiving your recommendations on our human rights initiatives.

 

Matsuoka: From what you have told me, I have the impression that you have made a lot of progress on your initiatives since two years ago. However, I am worried about the discrepancies between the key human rights issues described in the Human Rights Policy and the list of potential issues identified via due diligence. In addition, harassment, violation of women’s rights and gender issues, for example, are serious problems that can happen any time. However, it is important not to be complacent about “remediation” just because risk hedging mechanisms are in place. In other words, “remediation” is used in the UNGPs to mean the remediation of adverse impacts, so care must be taken to avoid confusion within the company. The UNGPs also require careful treatment of the connotations of “risk” when incorporating it into risk management systems. The situation has changed dramatically in the last ten years, and interest in business and human rights concerns has increased considerably in the past few years especially. I would to see a focus on what you are doing as a company first. Governments have also started to take various initiatives, but it is companies that are ultimately responsible for their own business activities.

 

Kodama: Your comments helped me to understand the next issues we need to address. Thank you very much for giving us your valuable feedback today.

Hideki Matsuoka,
Special Project Manager,
Asia-Pacific Human Rights Information Center

 

Takaki Kodama,
General Manager,
Sustainability Initiative Department

Participating in External Human Rights-Related Organizations

The Cosmo Energy Group participates in the Industrial Federation for Human Rights, Tokyo and is working hard to address human rights issues.

 

The Industrial Federation for Human Rights, Tokyo is a voluntary body with 124 corporate members, most of which are headquartered in Tokyo. Approximately 1.5 million people, including those from group companies of corporate members, have participated in the federation’s activities (as of April 2022). The aim is to firmly establish the respect for human rights that companies must have from a corporate perspective, including by promoting exchange of information among member companies, in-house training and awareness initiatives, raising awareness of human rights, and establishing rewarding workplaces.

Enhancing Human Rights Initiatives


The Cosmo Energy Group regards human resources as the source of value creation. We strive to create workplaces where employees with a variety of backgrounds can leverage diversity to achieve success, and we work to develop mechanisms that make it easier for them to create value.

Under the Consolidated Medium-Term Sustainability Plan (FY2018-2022), we set targets and KPIs for the material issues of occupational safety and health, diversity, and human resource development. We also took measures to maintain the health of employees by properly managing working hours and providing health checkups and stress checks. Further, we worked to create an environment in which diverse human resources can succeed, and to improve the skills of employees through an enhanced training and self-development menu.

Fiscal 2022 Results and Evaluation of Initiatives under the Consolidated Medium-Term Sustainability Plan (FY2018-2022)

ThemeMain activity measures / targetsFY2022 resultsScore
Occupational safety and healthPromote health
  • Health checkup participation rate: 100%
100%A
Reduce long working hours
  • Total working hours at or less than prescribed working hours (Daytime work: 1,811 hours; shift work: 1,826 hours)1

1,939 hours

(+3 hours compared to previous year)

C
 
  • Paid leave usage rate: 100% 1

93%

(+2% compared to previous year)

C
Diversity and equal opportunitiesSuccess of diverse human resources
  • Percentage of managerial positions held by women: 6% 2
    (as of April 2023)
6.7%A
  • Percentage of women in new graduates hired: 50% 2
    (as of April 2023)
60%A
Human resource developmentMaximize the skills of employees
  • Training expenses per employee: 50,000 yen 2
100,000 yenA

Scores (compared to Medium-Term Management Plan targets) = A: Progress according to plan; B: Some progress delayed; C: Not achieved; - Not applicable

1. Data is for Cosmo Energy Holdings, Cosmo Energy Exploration & Production, Cosmo Oil, Cosmo Oil Marketing (including employees seconded from Cosmo Engineering and Cosmo Trade & Service).

2. Data is for employees of Cosmo Oil Co., Ltd., including those seconded externally.

Initiatives to Improve the Work Environment


The Cosmo Energy Group implements initiatives to improve the work environment, including ensuring respect for basic human rights and prohibition of discrimination. We also conduct an employee awareness survey every year to ascertain the actual situation in each workplace.

The Cosmo Energy Group pays employee wages above minimum wage standards, exceeding such standards and complying with relevant laws and regulations, both in and outside Japan.

We also strive to improve the workplace environment, enhance welfare benefits, and increase wages paid as social circumstances evolve.

Cosmo Mutual Aid Association


The Cosmo Mutual Aid Association provides benefit, loan, and other programs necessary to achieve its objectives, seeking to improve the welfare of its members and their families, including employees and officers of Cosmo Oil and its main affiliated companies.

In addition to various benefit programs such as maternity/childcare leave benefits and nursing care leave benefits, the association provides various loan programs for daily life, such as educational funds and disaster recovery funds.