ITOCHU ENEX CO.,LTD.

Action Plan for Key Issues

Sustainability Key Issues (Materiality)

Based on the sustainability policy formulated in November 2021, we have identified sustainability issues (materiality). We will contribute to the creation of a sustainable society through efforts to address these issues and strive to further improve corporate value.
The Sustainability Committee will keep managing the progress of initiatives of important issues.

①Correspondance to climate change
  ~Contribution to the realization of a carbon-neutral society~
②Access to Energy
  ~Offering energy to everyone~
③Utilization of human resources
  ~Strategy to create multivalues~
④Corporate Governance
 ~Clear, effective and fair decision making~

Sustainability at the Enex Group

Action Plan

After extracting risks and opportunities for the identified sustainability issues, we set specific action plans and goals for each business activity.
Lateron, we will accelerate the promotion of sustainability throughout the Group over the medium to long term in accordance with the PDCA cycle.
(Progress review for 2022 will be posted in 2023)

Action Plan for Key Issues (Initiatives)

1.Correspondance to climate change

  • Risks
    Weakening of the existing energy businesses Reduction of demand for fossil fuels due to the regulation of businesses' greenhouse gas emissions, etc.
    Opportunities
    Expansion of the alternative fuel market and increase of sales opportunities accompanying the rising demand for alternative fuels Creation of opportunities to construct infrastructure for hydrogen and other new energies Rising demand for renewable energy and creation of new business opportunities Expansion of the market that expects that social issues will be solved through business processes
  • SDGs Target

* The action plan for key issues was revised in fiscal 2023. 

Sector Commodity/business Initiative Target Target Year Progress and Review
Alternative fuel Renewable diesel Accelerating advanced use and increased use of next-generation fuel (renewable diesel (RD) and gas-to-liquids (GTL) fuel) Promote RD sales
  • FY2022
    Target:3,000 KL、Results:292KL、Achievement rate:9.73%
  • FY2023
    Target:1000KL
  • FY2030
    Target:100,000KL
Promotion of GTL sales
  • FY2022
    Target:60,000KL、Results:21,000KL、Achievement rate:35%
  • FY2023
    Target:17,000KL
  • FY2030
    Target:170,000KL
Short term, 2030 Although RD demand was increasing, results did not reach the target due to mitigation measures.
  • It began to be used by the JR Group and others for demonstration experiments and by large general constructors for delivery vehicles.
  • It was delivered to the venues of the Formula One Grand Prix race in Japan and the Super Formula event.
  • Adopted for the Carbon Neutral Technology Development and Verification Project of Osaka Prefecture
  • Maersk, the world's second largest container shipper, and Daikin Industries jointly introduced the RD to land transport.
The GTL was outside the scope of the mitigation measures. Results were far below the target because of a widening price gap with diesel oil.
  • It began to be supplied to the Omuta Asphalt Plant of Sumiken Mitsui Road for its burners. (From fiscal 2022 onwards, it is used in heavy machinery as well.)
GTL
Ammonia Early implementation of ammonia as a marine fuel Promote R&D to develop ammonia fuel supply locations (Japan and Singapore), the construction of a supply chain and the formulation of supply safety guidelines with the 23 companies participating in a council for the implementation of ammonia as a marine fuel.  2030,2050
  • Ongoing review by the Council
Hydrogen Building a hydrogen value chain Feb. 2021: ITOCHU ENEX, Air Liquide Japan and ITOCHU Corporation sign a memorandum of understanding on strategic collaboration for construction of a hydrogen value chain. 
Fiscal 2023: Be involved in the start of construction and operation of hydrogen stations for commercial vehicles and trucks
2030: Enter the hydrogen energy market and the EV market after closing watching these market trends
2030,
2050
  • Opening is scheduled in the first half of 2024 as planned.
  • Hydrogen station construction is expected to commence around Aug. 2023 and to finish in Dec. 2023.
LNG Creating a business to supply liquified natural gas (LNG) for vessels ITOCHU, KYUSHU ELECTRIC POWER CO., INC., NYK Line, and SAIBUGAS CO., LTD. will establish a joint venture to build and own an LNG distribution vessel and carry out a business selling LNG for vessels in the Kyushu and Setouchi areas.
 
Start of supply Apr. 2024
  • Joint venture of four companies: A bunkering carrier of KEYS Bunkering West Japan will reach completion in Mar. 2024.
  • Japan's first case of LNG fuel supply to ships in a broad region covering the Seto Inland Sea and further west
  • The carrier is equipped with a dual fuel engine for LNG and heavy oil to exhibit environmental performance.
Renewable energy Renewable Energy Business Promoting solar power generation businesses Expand the number of renewable energy power generation facilities operated by the Group. 2030
  • Renewable energy generation capacity as of Jul. 31, 2023: 269 MW (Breakdown: 27.9 MW owned by the Group + 240.8 MW owned by EIF)
Biomass power generation business Commencement of the biomass power generation business Development and start of operation of a biomass power plant . Short term
  • Trial operation will begin in Dec. 2022, and commercial operation will begin in Apr. 2023 (in collaboration with Oji in Anan City, Tokushima Prefecture)
Self-consumption solar power generation business and solar power-based agricultural business (solar power sharing) Developing a self-consumption solar power generation business and a solar power-based agricultural business (solar power sharing) [Private consumption type]
Promote the popularization of solar power generation by installing solar power generation systems in factories, stores and houses and proactively developing a business of leasing these systems.

[Agricultural]
Began the verification of a solar power-based agricultural business (solar power sharing) to promote the popularization of renewable energy and the efficient use of unused arable land (fiscal 2021).
Short term,
2030
[Private consumption type]
As of the end of Jul. 2023, systems had been introduced to a total of 10 locations.
(Enex Fleet Nishinomiya Interchange Car-Life Station, Kohnan, Watanabe Sato, Kinugasa Transport, ITOCHU INDUSTRIAL GAS Matsuyama Plant, Sanyo's Plant No. 1, Onomichi Kumika Industry, Ichimasa Kamaboko Headquarters Factory No. 2, and ITOCHU ENEX Sodegaura Asphalt Base)

[Agricultural]
Four in operation (FIT) in Anan City, Tokushima Prefecture (as of the end of Jul. 2023)
Energy Storage Business Develop a storage battery business Respond to demand and develop a storage battery business for businesses and homes. 2030
  • Power storage stations for the grid and a business of storage batteries for businesses and for households remain under consideration.
Overseas development of other businesses related to renewable energy Overseas development of other businesses related to renewable energy Expand a Thai subsidiary's business leasing solar power generation equipment. 2030
  • As of the end of Jul. 2023, seven contracts had been signed in Thailand.
Electric vehicles Sales Sales of Nissan electric vehicles that are environmentally friendly zero emissions cars Promote sales of electric vehicles. Every year
  • Sales of EV vehicles are strong at Nissan Osaka Sales Co., Ltd. After application of life cycle assessment (LCA), CO2 emissions from EVs are around 32% lower with regard to the LEAF brand, around 18% lower with respect to the ARIYA brand, and around 17% lower for the SAKURA brand, when compared with those of Japan-made gasoline vehicles in their respective comparable grades. (according to a comparison when driving 10 km with vehicles made in Japan)  
Infrastructure development Increased convenience for electric vehicle users Increase the stores equipped with electric vehicle chargers and improve services. Every year
  • Number of chargers installed at directly operated CSs and dealers as of Jun. 30, 2023: 94 units (89 locations)
Electric vehicle sharing service Developing an electric vehicle sharing service Launched the TERASEL Car Share community electric-vehicle-based car sharing service in fiscal 2021. Contribute to the decarbonization of communities through a combination of EVs and renewable energy. 2030
  • Operating for public offices (existing EVs for public use). Creating case studies and considering sales strategies for the private sector.
Energy solutions for storage batteries / household products Smart devices Promote sales of household storage batteries and power generation systems Promote proposals for the introduction of two electricity generating systems: solar power generation systems and ENE-FARM, which are high-performance products. Promote sales of a home-use lithium ion power storage system that enables to use electric appliances using batteries even in the event of a blackout due to a disaster. Every year Sales of smart devices results
  • 157 Enefarm units (as of the end of Mar. 2023)
  • 19 storage battery units (as of the end of Mar. 2023)
LPG (for household and business use) and high-efficiency equipment Reduction of CO2 emissions through sales of LPG (for household and business use) and high-efficiency equipment
  • Promote the popularization of ENE-FARM, ECO-JOZU, GHP, and glass-topped induction stoves.
  • Promote self-consumption through the popularization of solar power generation plus lithium ion batteries. Develop a surplus electricity purchasing service for customers who no longer benefit from FIT.
Every year LPG high-efficiency equipment sales results
  • Glass-top stoves: 11,192 units (as of the end of Mar. 2023)
  • Eco Joes: 23,079 units (as of the end of Mar. 2023)
  • GHPs: 19 units (as of the end of Mar. 2023)
Other environmental businesses Provision of heat Contributing to energy conservation by expanding the regional heat supply business Contribute to the efficient use of energy and town development from the initial development stages to subsequent management in cooperation with customers and communities to contribute to the realization of a decarbonized society. Every year
  • Tokyo Toshi Service continues offering regional heat supply and energy management services.
AdBlue Manufacture and sale of AdBlue, a water and urea solution Improve the purchasing portfolio and expand delivery centers (SP) to arrange a stable supply system to be ready for quantity increases. 
  • FY2022
    Target:110,000KL、Results:100,000KL、Achievement rate:90.90%
  • FY2023
    Target:140,000KL
  • FY2030
    Target:200,000KL
Short term,
2030
  • For fiscal 2023, efforts will be made for greater delivery efficiency and continued sales expansion.
Support decarbonization management Stepping up customer support in decarbonization management Work with business partners supporting the visualization of greenhouse gas (GHG) emissions for customers to provide support for GHG emissions visualization and energy conservation support as a decarbonization management solution for customers.  Short term
  • Initiatives for SDGs business feasibility assessments were conducted for fiscal 2022.
  • Support for GHG emissions visualization and for target settings and planning and services to support the introduction of reduction solutions were established and are now being offered.
  • ITOCHU ENEX's sales department carried out a calculation using primary data on Scope 1, 2 and 3 emissions
  • In Aug. 2022, the Tango Textile Industrial Association in the city of Kyotango commenced steam supply from LP gas-fired boilers and Tokyo Toshi Service started remote monitoring of facilities. Continue to maintain and improve boiler efficiency. 
Reduction of environmental impact within the organization Energy conservation, transition to green energy at offices and green office activities Accelerating the transition to green energy and reducing the consumption of electric power, fuels, photocopy paper and water and the amount of waste [Energy conservation in offices and business facilities]
Reduce general electricity consumption, offices' fuel consumption (LPG and fuel oil), and vehicles' fuel usage (reduce the use of gasoline, light fuel oil, autogas, switch to GTL, HVO, electricity and e-fuel). Reduce copier paper, water consumption, and waste output (99% of the previous year's results respectively).

[Transition to green energy at offices]
Reduce power consumption by installing solar panels at retail stores. Install solar panels at 32 Car-Life Stations run by Enex Fleet and 10 run by Kyushu Energy (by 2030).
Every year,
2030
[FY2022 results for energy savings]
  • Gneral electricity consumption: 91% (Achieved compared to the target and the previous year. Reduction by power saving and use of LED lighting in offices)
  • Fuel for offices: 90% (achieved over the previous year), fuel for vehicles: 99% (achieved over the previous year)
  • Copy paper: 97% (target and previous year's levels achieved)
[FY2022 results for green energy conversion]
  • A self-consumption solar power generation system was installed at Enex Fleet Nishinomiya Interchange Car-Life Station.
  • A self-consumption solar power generation system was installed and the fuel for heating boilers was shifted from heavy oil to the GTL fuel at ITOCHU ENEX Sodegaura Asphalt Base.
  • A self-consumption solar power generation system was installed at Itochu Industrial Gas' Higashimatsuyama Plant.
  • Green electricity with a non-fossil certificate was introduced to the Head Office in Kasumigaseki in fiscal 2020 (and it has since been used there).
  • All lighting at the Head Office in Kasumigaseki was replaced with LED lighting (by the manager of the building).
  • Solar power generation systems were installed at plants, warehouses and other facilities to provide services that help customers cut their CO2 emissions and energy costs. 
Preventing environmental pollution Preventing soil/environmental pollution Prevent soil/environmental pollution. Reduce impact. Reduce drainage discharge and the use of harmful substances and appropriately dispose of harmful substances. Every year
  • Ongoing
Increasing the efficiency of systems and logistics Reducing CO2 emissions and improving efficiency in the transport process through DX Give eco-driving training that raises energy-saving awareness and helps fulfill the obligations of specified consignors under the Act on Rationalizing Energy Use and reduce CO2 to supply chains (delivery personnel of commissioned truck operators and group companies) once a year, implement automatic meter reading with the use of the low-power wide-area (LPWA) system and streamline deliveries for CO2 reduction. Promote customers' introduction of LPWA for direct sales. Conduct inspections using iPads to enable paperless operations and improve efficiency. Every year [Eco-driving training for supply chains]
  • Ongoing
[State of introduction of LPWA terminals (at eight sales companies in the Home-Life business)]
  • A total of 437,127 terminals installed to cover 79% of the customers (on the basis of valves opened)(as of Mar. 2023)
Coal-fired power plant Reducing the environmental impact of coal-fired power plants Utilize non-fossil fuels (mixed fuel firing demonstration experiment under consideration). Change and appropriately operate equipment and other initiatives. 2030
  • In Dec. 2022, Hofu Energy Service succeeded in the experiment of mixed combustion with black pellets.
  • Measures for lowering environmental impacts, including a fuel shift, are being considered ahead of the reduction target for fiscal 2030.
Environmental Management ISO activities ISO14001 (environmental management) Maintain certification. Promote environmental protection and improvement activities. Continue to implement the PDCA cycle at all group companies appropriately using their functional environmental management systems Ensure safe operations through thorough compliance at all offices. Every year
  • ​​​​In Jul. 2022, ITOCHU ENEX underwent an annual surveillance audit performed by the Japan Audit and Certification Organization for Environment and Quality (JACO) to maintain certification for fiscal 2022. We will continue to work on efficient energy consumption and legal compliance based on our environmental management system. (The audit for fiscal 2023 is scheduled in July.)
Environmental conservation activities Forest and marine environment, biodiversity conservation activities [Environmental preservation]
Contribute to CO2absorption by contributing to afforestation and environmental conservation.Contribute to CO2 absorption through environmental conservation activities, such as the regeneration of blue carbon ecosystems. Commence initiatives in fiscal 2022.

[Biodiversity conservation]
Promote the activity of conservation of biodiversity.
2030,
Every year
[Environmental preservation]
  • ITOCHU ENEX made donations for fiscal 2022 to forest preservation projects for two local governments, namely the Yusuhara-cho and Nichinan-cho town governments, through the Corporate Version of Hometown Tax. That helps plant trees in an appropriate total of 35 hectares since fiscal 2021 and reduce approximately 570 t of CO2 over five years. 
  • ITOCHU ENEX signed a agreement for joint research on blue carbon with the University of Tokyo and with the Fukuura Fisheries Industry Cooperative Society. They started cultivation of wakame seaweed in Dec. 2022, harvested in Apr. 2023 and carried out measurements and others. On the basis of findings from the verification in 2022, preparations are being made for a second cultivation in winter 2023 and for the quantification of blue carbon. 
[Biodiversity conservation]
  • ITOCHU ENEX donated 100 yen per case of electronic exercise of shareholders' voting rights to the building of a community in the Hokkaido town of Naganuma-cho where the red-crowned crane (Grus japonensis) can live. (614,100 yen donated in fiscal 2023)
Conservation of regional environments through compliance with security regulations Reinforcing a security system, strengthening security checks, and improving security knowledge Fully prevent accidents by standardizing and improving security management systems in accordance with non-statutory security standards in addition to legally mandated inspections. Carry out training activities and improve awareness. Promote the ubiquitization of computerized documents for security inspections and audits. Every year
  • Various materials for safety education (15 types per product) and seven manuals related to submissions to governmental offices were prepared.
  • Safety education was provided using videos (e-learning).
  • Follow-up to promote qualification acquisition
  •  For smart safety initiatives, the introduction of DX was considered and facility-related materials were converted into digital materials (to increase work efficiency and pass down technologies to future generations).
  •  New HL Security Audit System (ESAS) will be operational in Jun. 2023. Improved operational efficiency by completing audits, reports, and transmittals within the system. 

2.Access to Energy

  • Risks
    Loss of customer base due to worsened relationships with the local community Instability of business due to insufficient energy procurement and other issues
    Opportunities
    Expansion of business supported by the trust of the local community and the entire supply chain Creation of an environment that enables customers to choose from a diverse range of energy options, including alternative energy Entry into regions where access to energy is yet to be established Retainment and acquisition of customers by strengthening a disaster-resilient supply structure, and other initiatives Earning the trust of customers and the creation of new business through the stable supply of environmentally friendly resources and materials, and other initiatives
  • SDGs Target

* The action plan for key issues was revised in fiscal 2023. 

Sector Commodity/business Initiative Target Target Year Progress and Review
Relationships with local communities Disaster prevention efforts and BCP measures Maintaining infrastructure at times of disasters and enhancing the Group's BCP system [Maintaining infrastructure in times of disaster]
  • Maintain oil supply functions at times of disasters (to make it possible to preferentially refuel emergency vehicles at times of power failure) Operate disaster response stations and disaster-resilient core filling stations (equipped with non-utility electrical power facilities, fuel filling equipment for automobiles, and satellite phones) as facilities for stably supplying LP gas
  • The Kizuna Net Center is ready to ship fuels 24 hours a day using emergency small-lot vehicles.
  • Secure regional energy lifelines during disasters by operating a disaster-resilient LPG bulk energy system that permits collective power generation, hot water supply, and the provision of hot meals. 
  • Make sure that water storage tanks for the heat supply business can be used to supply domestic water and firefighting water in emergencies.
[Enhancing the Group's BCP]
  • Develop a business continuity plan (BCP) for large-scale disasters
  • Prepare for initial responses to disaster. Arrange a system for appropriate cooperation with an affected area. Review BCP regularly.
  • Train to maintain and strengthen backup systems for headquarters functions during a disaster.
  • Renew resilience certifications. Ensure the company can be constantly managed through appropriate evaluations by external organizations.
Every year [Maintaining infrastructure in times of disaster]
  • The functions and services stated in the targets were continuously maintained.

[Enhancing the Group's BCP]
  • The business continuity plan was revised (into the fourth edition) to upgrade the BCM system (in Sep. 2022).
  •  Eight drills for safety confirmation were conducted in a year in fiscal 2022.
  • Seven first-aid workshops were held at major bases in Tokyo, Nagoya, Osaka and Hiroshima with the participation of 101 personnel.  (Jan.-Mar. 2023)
  • To make business continuity management (BCM) more concrete, ITOCHU ENEX selected the sales functions and material operations and started creating a checklist on actions for business continuity (Jan.-Feb. 2023). It will reach completion in the first half of fiscal 2023. 
  • Enhancement of the BCP system was carried out. ((i) Sixty lines were shifted from satellite telephones to mobile phones for the top priority means of phone communication in emergencies (Feb. 2023). (ii) Additional portable power sources were purchased to ensure that 40 such power sources are stored at the Kasumigaseki Building (Feb. 2023).)
Natural disaster preparedness measures in collaboration with other companies Collaboration for the construction of disaster-resilient communications networks Construct a system that continuously supplies LPG to cellular base stations to be prepared for power outages in collaboration with SoftBank Corp. Supply gas to more facilities through this network in the future. Every year
  • Emergency power generators had been installed at 149 base stations (as of Jun. 2023).
  • For the current fiscal year, a system of supplying LP gas to fixed power generators is being constructed.
  • For the next fiscal year, power generators will be installed at newly launched base stations (in unknown areas).

Note: To further to increase the number of base stations, ITOCHU ENEX will continue consultations with Softbank and with operating companies.

Comprehensive partnerships with communities Comprehensive partnerships with diverse forms that contribute to community development Strengthen comprehensive partnerships contributing to community development and disaster prevention through the energy, services, and products provided by the group. Every year
  • In accordance with the comprehensive collaboration agreement with the Osaka Prefectural Government in 2020, Nissan Osaka Sales joined the sponsorship for the Zero Carbon Guinness Challenge as a fiscal 2021 Osaka project for supporting children's dreams. In fiscal 2022, it donated caravan vehicles to the Osaka Prefectural Government for transporting patients with mild COVID-19. It also sponsored the Osaka Marathon. 
Access to energy Stable supply of energy and services Stable supply of petroleum products, LPG, electricity and related services Contribute to people's rich lives by maintaining stable supply in times of disaster and normal times. Every year
  • The target was met.
Car life station Supporting the opening and operation of car life stations in sparsely populated areas Help correct gaps convenience among regions by supporting the opening and operation of car life stations in sparsely populated areas. As appropriate
  • Support was continued for a service station run by a store launched in a sparsely populated region in the village of Kawakami-mura in Nara Prefecture.

Note: ITOCHU ENEX will provide launch support if there are needs in other regions.

Enriching car life services and spreading multi-fuel stations [Enhancing car life services]
  • Conduct a demonstration experiment for the introduction of new services at car life stations in collaboration with Rakuten Group, Inc.
  • Pursue convenience, specifically, safe and secure shopping that ensures social distancing, paperless operations to reduce environmental impact, and reservation and payment using mobile devices.
[Spreading multi-fuel stations]
  • 2050: Enable more CSs to be multi-fuel stations. Convert commodities from GA to electricity for EVs and hydrogen-powered vehicles gradually.
  • 2050: Gradually add infrastructure for EVs, hydrogen stations, and other infrastructure equipment.
Short term,2030,2050 [Enriching car life services]
  • In 2021, a demonstration trial service of Rakuten One-Stop, in which users can consult and apply for different services including Rakuten's smartphones, vehicle inspection and insurance, was started at the Yugawara Car-Life Station, which was selected for this trial. Offering Rakuten's services to customers of the Car-Life Station, it is operated as a base that linked between online and offline services. It is advertised with the use of LINE. It is continuously operated as a pilot station for the Rakuten One Stop. 
  • Smartphone fueling introduced to 150 Car-Life Stations (as of Mar. 2023) A campaign for d-Barai (Docomo Mobile Payment) was conducted in addition to that for PayPay points. For fiscal 2023, Rakuten Pay will be introduced as a means of payment in addition to sales promotion on LINE.
[Spreading multi-fuel stations]
  • ITOCHU ENEX takes part in the strategic collaboration in construction of Japan's first hydrogen value chain for fuel cell trucks in the city of Motomiya in Fukushima Prefecture. Enex Fleet aims to launch a hydrogen station that will be in 24/7 operation in 2024. Progress is being made as planned. 

3.Utilization of human resources

  • Risks
    Lower labor productivity, human capital flight, loss of business opportunities, higher wellness costs, impaired corporate image, and other risks resulting from a failure to appropriately respond
    Opportunities
    Increased labor productivity, better health, higher motivation, bettered communications, retention of talent, creation of a platform for corporate growth and innovation due to to the increase ability to respond to change and business opportunities and other factors resulting from the establishment of working environments where workers can have job satisfaction
  • SDGs Target

* The action plan for key issues was revised in fiscal 2023. 

Sector Classification Initiative Target Target Year Progress and Review
Diversity and inclusion Diversity in the workforce Active roles for diverse human resources
  • Appoint excellent human resources to managerial jobs regardless of age or gender.
  • Support the successful careers of mid-career professionals who have experience in many different things
  • Ensuring diversity by employing newly graduated students
Every year
  • Under the new personnel system, a broad range of personnel, ranging from young staff to senior workers, were appointed as managers and supervisors to encourage diverse human resources to play active roles. (Ratio of managers and supervisors under the new personnel system: 9% (as of Jul. 2023)
  • Ratio of mid-career employees hired: 21% (as of Jul. 2023) Some personnel are appointed as managers and supervisors in consideration of their duties and skills, irrespective of whether they were hired as new graduates or in the middle of their careers to ensure diversity. 
  • Ratio of women newly employed (at ITOCHU ENEX): 46% in Apr. 2023 and 38% (expected) in Apr. 2024
Increase the ratio of female managers and supervisors
  • FY2023
    Results:3.80%
  • FY2030
    Target:10%
  • FY2035
    Target:30%
  • A meeting for boosting diversity was held for the purpose of developing female leaders serving as role models. A roundtable talk with ITOCHU ENEX's female officers was organized to discuss the attitude expected from leaders and what to do to be role models, among other topics. Participants realized that the roles of managers cannot be played without the cooperation of people around them. 
Establishment of systems and internal environments Establish systems and internal environments Incorporate work styles according to specific life plans, and develop personnel systems and the internal environment Every year
  • Those on childcare leave or nursing care leave are interviewed with their superiors and human resources staff to enable a smooth return to work. Their duties, working style, support from colleagues and others are shared to eliminate anxiety on both sides. 
  • The program was explained in rank-based training and in training for managers for the purposes of preventing cases where employees were unfamiliar with it and where they were unable to use it because of their superiors' ignorance, while raising the level of understanding about internal programs and about laws and regulations. A handbook that summarizes the program was created and made available on the internal portal. It was used to make the program known to eligible employees, their superiors and colleagues. 
  • Email addresses that are valid only while they are on maternity or childcare leave are issued for direct communication with health nurses and with personnel handling such leave. 
  • Development of a system for submission documents related to the leave opened the way for procedures on the CWS and for smooth application. 
Utilizing the work-family life balance support system
  • Promoting Diverse Working Styles
  • Promote the utilization of the staggered/shortened work hours systems by people raising children, caring for family members and facing other issues
Every year [Diverse working styles (actual at ITOCHU ENEX for fiscal 2022)]
  • Percentage of employees taking childcare leave: 58% among males and 100% among females
  • Average length of leave taken per person: 30 days by males and 266 days by females
[Support for childcare and nursing care (as of Jul. 2023)]
  • Number of employees with shorter working hours for childcare: 15
  • Number of employees with staggered working hours for childcare: 3
  • Number of employees who took family care leave: 1
Utilizing the re-employment system Re-employ employees who have left the company due to relocation due to their spouse's employment. Support people returning to work at events. Every year
  • Total number of employees rehired after their retirement due to transfer of their spouses: 3 (as of Jul. 2023)
Health and safety Workstyle reforms Promoting ENEX EARLY BIRD (workstyle reform) Make Itochu Enex a better company and a rewarding place to work for each employee, and a company that they are able to boast about to their families and society. Change from work styles focused on working overtime at night to working overtime in the morning. Set an end time of 10:00 p.m. for dining/drinking parties with customers/other employees. Ensure that at least 80% of employees have a BMI lower than 25. Ensure that at least 80% of employees don't smoke. Ensure that at least 80% of employees have a paid vacation. Improve the quality of communications by two grades. Improve the quality of meetings and conferences by two grades. Improve the quality of materials and documents by two grades. Ensure that management and guidance is in place for appropriate overtime hours. Every year [Fiscal 2022 results]
  • Percentage of employees with a BMI of under 25: 70.5%
  • Percentage of non-smoking employees:73.1% 
  • Percentage of paid leave taken: 88.9%
Health and productivity management Promoting Health Management Ensure that 100% of employees have regular health check-ups. Ensure that 100% of applicable employees undergo detailed examinations. Ensure that 90% or more of employees have a systolic blood pressure less than 130 mmHg, and a diastolic blood pressure less than 85 mmHg. Ensure that 80% or more of employees have a triglyceride level lower than 150 mg/dL, and an HDL cholesterol level of 40 mg/dl or more. Ensure that 80% or more of employees achieve GOT and GPT levels that are 40 or lower and γ-GPT of 80 (men) or 70 (women) or lower.
 
Every year
  • Revision to the implementation system and strategy map for health and productivity management: Done in Oct. 2022 For the current fiscal year, revisions will be made around Oct.
  • Ratio of employees who receive regular health checkups: 100%
  • Ratio of employees who receive thorough checkups: 61.0%
  • Ratio of employees with a systolic blood pressure under 130 and a diastolic blood pressure under 85: 80.8%
  • Ratio of employees with a level of neutral fat under 150 and that of HDL cholesterol at 40 or higher: 77.5%
  • Ratio of employees with GOT and GPT levels at 40 or lower and those with γ-GPT at 80 or lower (men) and 70 or lower (women): 81.6%(Fiscal 2022 Results)
Occupational safety and health Harassment Prevention Revise the harassment guidelines. Ensure all employees are familiar with the guidelines and follow them. Hold harassment training regularly.Regularly provide opportunities to collect complaints and comments about problems using GEPPO to reduce harassment incidents. Every year
  • In Apr. 2023, explanations on the whistleblowing response system and the compliance program were explained to compliance managers and compliance staff. They accompanied explanations on preventing harassment. (81 participants)
  • Two compliance training sessions for ITOCHU Group employees were organized by ITOCHU Corporation. The first session in Dec. 2022 was on the subject of approaching psychological safety from the cerebral function theory and had 1,782 participants. The second one in Feb. 2023 was on the subject of improving the ability to listen to others for creating harassment-free workplaces with high work efficiency and productivity and had 1,840 participants.
  • In Jan. 2023, a survey of 573 employees using GEPPO, a survey tool provided by Recruit, was conducted.
Pursue continual improvement in occupational safety and health Lost time injury frequency rate: 0 Every year
  • Frequency of occupational accidents: 1.68 (actual at ITOCHU ENEX for fiscal 2022)
  • Severity of occupational accidents: 0 (actual at ITOCHU ENEX for fiscal 2022)
Organizational culture Enable the organizational culture to take root in the company Providing cross-functional training A cross-functional team comprises members in different positions from different companies and departments and with different experience and skills. Its missions are to discuss cross-departmental issues and to propose solutions.Hold training that encourages employees at large to learn about businesses and people and think about the future of the company. Every year
  • A total of six cross-functional training (CFT) sessions took place in fiscal 2022 with the total participation of 306 trainees. On the theme of learning and thinking about the company they work for, they conducted group work on proposing new businesses. A total of 60 teams separately proposed new businesses. 
  • Overseas training program: Four employees were receiving training in Thailand, Guam, the Philippines and Singapore.(As of Jul. 2023)
Implementation of employee satisfaction surveys Enabling an organizational culture to take root and improving overall satisfaction Once every couple years
  • No progress because it is not scheduled for the current fiscal year.
Human resources development Establishment of systems and internal environments Fostering multi-human resources who are active in Japan and overseas, fostering diverse values, and developing and expanding in-house training systems Cultivate multi-talented human resources who will flourish in Japan and overseas (overseas on-the-job training). Foster diverse value (innovate through cross-functional training). Short term
  • A total of CFT sessions took place in fiscal 2022 with the total participation of 306 trainees. On the theme of learning and thinking about the company they work for, they conducted group work on proposing new businesses. A total of 60 teams separately proposed new businesses. 
  • Overseas training program: Four employees were receiving training in Thailand, Guam, the Philippines and Singapore (as of Jul. 2023).
Support for self-development and employee education Offering opportunities for training and enriching support for self-development
  • Support employees' personal growth and development of skills and abilities
  • Increase employee awareness of personal growth and the development of skills and abilities
Every year [Support for self-development and skill development]
  • Number of employees using the graduate school admission program for working professionals: 5 (studying at graduate school in fiscal 2023)
  • Number of employees using the English learning support program: 28 (actual for fiscal 2023)
  • Number of employees using the program of financial support for correspondence education course fees: 135 (actual for fiscal 2023)
[Raising awareness of self-development and skill development]
  • Seven rank-based training sessions
  • Two training sessions for newly appointed managers
  • Workshops on tax affairs, legal affairs, IT and personnel affairs were held online (with the participation of 150 employees each on average for fiscal 2022).
Social Contribution Activities Planning and engaging in social contribution activities Continue to implement an array of social contribution activities to hand a sustainable society to future generations, themed on the environment, human resources and community development for the future. Every year
  • Ninety-three people, consisting of Group employees, their family members and friends, took part in the WFP Walk the World event in May 2023.
  • Blood donation activities were joined by 30 employees as donors in Jun. 2022, 31 in Dec. 2022, and 18 in Jun. 2023 across the Group.
  • ITOCHU ENEX made donations based on the electronic exercise of shareholders' voting rights to the building of a community in the Hokkaido town of Naganuma-cho where the red-crowned crane (Grus japonensis) can live. (540,600 yen in FY2022 and 614,100 yen in FY2023)
  •  A Family Day was organized. (In fiscal 2022, an event with 25 children featured the distribution of videos showing working fathers and mothers. In fiscal 2023, the event had 32 children.)
  • The Enjoy the Power of Words events took place: One in Tokyo in Jan. 2022 and the other in Osaka in Sep. 2022. Note: The video clip featuring the event in Osaka on YouTube gained at least 1,100 views. For fiscal 2023 as well, the event will be held twice in person.
  • Dietary and fire education activities were conducted for 192 children at six facilities in fiscal 2022. They are scheduled at two facilities in fiscal 2023. 
  • Support for people with disabilities includes donation to Yumeken (non-profit organization), volunteer activities for swimming classes, donation to Artbility, adoption of a design for a calendar, sponsorship for professional golfer Hayato Yoshida and cooperation in the sale of bread produced by Swan Bakery.
  • An SDGs campaign was conducted that allowed the points earned at the Enex Fleet Truck Festival to be donated to social contribution activities. (A total of 225,230 yen donated in the period from May 2022 to Aug. 2023)
  • Enex Fleet SMILE: A program under which Enex Fleet offers donations according to the number of vehicles inspected and sold to the Foundation for Orphans from Automobile Accident. (A total of 793,950 yen donated in the period from Jun. 2022 to May 2023)
  • ENEX Electric Power held an after-school class on the subject of electricity for elementary school children in the city of Minami-Awaji.

4.Corporate Governance

  • Risks
    Risk of business discontinuity accompanied by the dysfunction of corporate governance and internal control, unexpected losses/costs, and other risks
    Opportunities
    Increased decision-making transparency through the establishment of a robust governance system, increased corporate value due to appropriate responses to change and the establishment of a foundation for stable growth, and other opportunities
  • SDGs Target

* The action plan for key issues was revised in fiscal 2023. 

Sector Commodity/business Initiative Target Target Year Progress and Review
Corporate Governance Strengthening the functionality of Board of Directors Increase disclosure of the board's supervisory/monitoring functions. Enhance open-minded strategic discussions. Evaluate the effectiveness of the Board of Directors, analyze results, and make improvements.
  • Governance Committee: For the purpose of deliberation and examination of the nomination and remuneration of Directors and Executive Officers, material transactions or actions with a related party (excluding a controlling shareholder) and other matters relating to corporate governance
  • Special Committee: For the purpose of deliberation and examination of material transactions or actions involving conflicts of interest with a controlling shareholder or a minority shareholder(Newly launched in Oct. 2021)
  • Evaluation of the effectiveness of the Board of Directors: Their purpose is to assess if the board of directors of the company effectively performs its roles and duties. 
Every year
  • Members of the Governance Committee:Five members, consisting of three independent officers and two inside directors(In fiscal 2022, 10 meetings were held with the participation of all members.)
  • Members of the Special Committee:Five independent officers(In fiscal 2022, one meeting was held with the participation of all members.)
  • Issues in assessing the effectiveness of the board of directors and the results of analysis
    1. Deepening of discussions on medium- and long-term management strategies and policies
    2. Improvement in operation system for stimulating discussions
  • <Measures>
    1. Report the state of consideration of the medium-term management plan and exchange opinions
    2. Provide opportunities to discuss issues in assessing the effectiveness of the board of directors
Increasing stakeholder engagement Improve transparency and increase stakeholder engagement by reinforcing and enhancing many types of disclosure. Every year
  • Integrated report: Relationships with individual shareholders were clarified, constructive communication was enabled and the methods of enabling such communication were stated.
  • Website: Content was enhanced.
  • Different research and assessment bodies: Accurate and considerate response and actions for improvement were taken as needed on the basis of assessment results and information acquired.
Operating committees appropriately Ensure the appropriate operation and effective functioning of committees. Every year
  • Separate committees strictly implemented the practice of distributing materials in advance. (The Governance Committee also did this for prior briefings for outside officers.)
  • The method of reviewing the effectiveness of internal control under the Companies Act was revised.
  • The dates of meetings were quickly determined and communicated and minutes of meetings were swiftly produced.
  • Meetings held in fiscal 2022
    • Meetings of the Governance Committee and the Special Committee were as mentioned above.
    • The Sustainability Committee had seven meetings, the Risk Management Committee five and the Internal Control Committee six.
    • The Disclosure Committee had five meetings (and 14 meetings in writing).
Strengthen compliance Ensure the people responsible for, in charge of, or performing practical group compliance work of group understand their role and increase their ability to respond to events. Continue compliance training for all employees. Investigate potentially illegal situations. Train employees on important laws and regulations. Establish a whistleblowing system and ensure that the contact points for the internal and external whistleblowing systems are widely known under the revised Whistleblower Protection Act. Conduct awareness surveys periodically, analyze results, and make improvements.
 
Every year
  • Findings of the compliance awareness survey were shared with separate departments and 15 group companies. Measures to address issues that emerged were drawn up. Their progress will be reviewed half a year after their formulation (around Aug. to Sep. 2023).
  • ITOCHU ENEX Group staff received compliance training sessions that ITOCHU Corporation conducts for its group employees. The first session in Dec. 2022 involved 1,782 personnel and the second one in Feb. 2023 involved 1,840.
  • Anti-misconduct video training for the Group's managers was held in Oct. and Nov. 2022. (The training was taken by 939 trainees)
  • Compliance training titled Compliance Decisive to Corporate Value for ITOCHU ENEX officers, compliance managers and personnel and functional departments was conducted (from Nov. 2022 to Feb. 2023).
  • Fiscal 2023 training for the Group's compliance managers and personnel. An invited outside lecturer held a seminar to explain about awareness of duties as managers and personnel, about the response to the occurrence of incidents and about compliance systems including whistleblowing. (The seminar was held physically in Apr. 2023 and was joined by 81 participants in person and 39 on Zoom.)
  • From fiscal 2023 onwards, the Group prepare different e-learning materials on compliance and provide e-learning and video training on compliance at individual companies. (As of Jun. 2023, Enex Fleet, Kyushu Energy and OJEX had provided these learning opportunities.)
  • Compliance meeting was held for the Tohoku Junior CL Enex Association in Jun. 2023. (It had 16 participants.)
Strengthening information security Analyze the current status of information risks within the group companies and implement reliable measures. Every year
  • The Group's IT information liaison meeting was held twice. It had the purpose of building up the Group's risk management capabilities, including information security activities, constructing next-generation mission-critical systems and ensuring compliance with laws and regulations and responses for cyber security. It was joined by 88 participants from 18 companies in the Group.
  • E-learning was provided (Mar. 2022)
    • In view of the increasing number and sophistication of cyberattacks, the e-learning was provided to help personnel learn about methods of cyber attacks through specific examples and to raise their awareness of cyber security.
    • Ratio of employees using it: 80.8% (3,717 employees using it out of 4,599 eligible for it in ITOCHU ENEX and 18 group companies)
  • Note: The ratio was far above the level in fiscal 2020, which was 67%. The importance of information security measures is broadly recognized. The Group will continue to provide education and training regularly to build awareness of information security.
Enhanced Group Governance Continue to enhance group governance through reviews of the system. Every year
  • Training on the obligations and responsibility of officers, i.e. directors and audit & supervisory board members, was offered to newly appointed officers (directors and audit & supervisory board members) of group companies. (It was offered in the form of e-learning from Aug. 17, 2022 to Sep. 23, 2022 to 15 eligible personnel.)
  • A meeting of presidents of group companies was held in Sep. 2022 on the subject of consolidated management. * A meeting is also scheduled in 2023.
  • In fiscal 2023, the Monitor & Review Section was launched in the Audit Department. (Its purposes are to perform auditing on contracts, labor affairs, accounting, internal control and harassment in small-sized group companies and to prevent such incidents.)
  • The Group's Audit & Supervisory Board meeting will be held in Aug. to share expectations from the Group's Audit & Supervisory Board members and specific audit items.
  • A meeting with working-level personnel for internal control was held to strengthen collaboration (to ensure understanding by internal control departments of group companies).
Enhancing risk management Reduce risk by strengthening the risk management structure and steadily implementing risk management processes and controlling risk. Every year
  • The Project Review Committee was reorganized and regulations and other rules for operation were revised in Aug. to toughen the process of creating investment projects and advancing materials to be submitted to meeting bodies.
  • In accordance with the Credit Management Regulations, changes in the credit statuses of business partners were checked on a monthly basis (throughout the year). Specified business partners and specified subsidiaries were designated and undesignated. (Oct.) Any specified business partner is undesignated on the condition that it is deemed by a general credit assessment to have its credit capability deteriorated or that it has no sales records in the last three years.
  • Risk Management Committee: Subjects discussed in fiscal 2022
    1. Risks of accidents and disasters: Maintenance of equipment for preventing major disasters
    2. Sales risks: Product balance management (changes in international situations, market conditions and other external circumstances)
    3. BCM activities: Improvement in BCP and BCN (effective measures against disasters and other situations)
Enabling the group's values to take root within the group Share the Corporate Philosophy, the group's action declaration, code of conduct, sustainability policy and other policies. Develop employee awareness of them and ensure they are implemented. Every year
  • Signing of the Corporate Philosophy, the Declaration of the Group Code of Conduct and the Code of Conduct. This was carried out for all officers and employees in the Group in the form of e-learning. The achievement rate in fiscal 2022 was 96.6%.
  • Making the Sustainability Policy known. The Jun. 2022 issue of the Group's in-house newsletter carried a special feature on it. Cross-functional training, which was conducted in a cross-departmental manner, explained it in addition to efforts on sustainability in a bid to improve understanding within the Group. (Sep. 2022)
  • For fiscal 2023, sustainability education and training will be provided for all employees of the Group in the form of e-learning.