Supply Chain Management and Sustainable Procurement

The Cosmo Energy Group recognizes the importance of all of its business partners in the effort to achieve sustainable development. By communicating effectively and building healthy relationships with business partners, we pursue mutual prosperity while helping to build a sustainable world.

Sustainable Procurement

To fulfill the Cosmo Energy Group Management Vision, we believe we must deliver on our social responsibilities across the entire supply chain by ensuring legal compliance, fair transactions, respect for human rights, and environmentally responsible operations. Accordingly, we revised our Sustainable Procurement Policy in February 2022. It is based on our Management Vision and Code of Conduct and outlines our basic approach to fulfilling our social responsibilities across supply chains.

Sustainable Procurement Guidelines

Based on the Sustainable Procurement Policy, the Group has created the Sustainable Procurement Guidelines, which outline more specific measures in nine areas: (1) fair transactions and ethics; (2) human rights and labor; (3) disaster prevention and health and safety; (4) environmental conservation; (5) quality and product safety; (6) information security; (7) social contribution; (8) business continuity planning; and (9) supplier management. We ask every supplier to understand and agree to the details of these guidelines, and to work in accordance with them.

All of the Group’s suppliers are asked to fully understand and comply with the Sustainable Procurement Policy and Sustainable Procurement Guidelines.

Initiative Details

In addition to green purchasing activities, in which the Group’s main companies comprehensively evaluate materials to be procured in terms of quality, price, delivery date, and green criteria, we also check the status of supplier compliance with the Sustainable Procurement Guidelines. The Group is working to ensure sustainable development by collaborating with suppliers that agree to the guidelines.

In fiscal 2022, Cosmo Oil made progress on expanding the scope of its Sustainable Procurement Policy and Sustainable Procurement Guidelines, and other Group companies also made efforts to expand the scope. In line with this, the scope of the relevant supplier survey was also expanded. For example, Cosmo Oil now conducts the survey for 100% of its suppliers of equipment, parts, construction materials and services, and chemicals, etc., used by its refineries. Cosmo Oil and 10 other Group companies surveyed approximately 900 companies regarding their compliance with the Sustainable Procurement Guidelines, and received responses from nearly 90% of them. In the second half of fiscal 2023, we plan to expand the scope of survey implementation to more Group companies. We will continue to step up our efforts under these guidelines, gain the understanding and support of our suppliers, and aim for mutually sustainable development.