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.
    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

Sector Commodity/business Initiative Target Target Year
Alternative fuel Renewable diesel Promoting non-fossil fuels (RD: Renewable Diesel) Promoting sales by proposing fuel conversions to purchasers. Sales target: 3000 kL in fiscal 2022, 6000 kL in fiscal 2023, 100,000 kL in fiscal 2030 Short term and 2030
GTL Promoting the effective use of non-fossil fuels
(gas to liquid or GTL)
Promote dissemination by arranging sales environments and increasing distribution areas and quantity. Sales target: 60,000 kL in fiscal 2022, 110,000 kL in fiscal 2023, 170,000 kL in fiscal 2030 Short term and 2030
Ammonia Early implementation of ammonia as a marine fuel Promote R&D to develop ammonia fuel supply locations (Japan and Singapore), the construction of an ammonia fuel supply chain and the formulation of ammonia fuel supply safety guidelines with other concerned parties and the 23 companies participating in a council for the implementation of ammonia as a marine fuel. 2030, 2050
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. Company to be established in February 2022
Business to commence in April 2024
Hydrogen Building a hydrogen value chain A memorandum was exchanged between Air Liquide and ITOCHU Corporation in February 2021 pertaining to a strategic collaboration for the construction of a hydrogen value chain from the upstream production of low-carbon hydrogen to it's use.
Promote entry into the market while watching the movement of the hydrogen energy market and the EV market while staying aware of 2030 by getting involved in the operation of hydrogen fueling stations for commercial trucks to be built in fiscal 2023.
Regarding the use of hydrogen and ammonia for industrial purposes, a demonstration experiment is being considered with the purchasers and manufacturers of the technology for their commercialization in or around 2030, such as the development of boilers for the fuel conversion of heating boilers at asphalt plants.
2030, 2050
Propanation Adopting LPG and bio LPG through propanation Adopt PG and bio LPG through propanation, adoption of LPG that includes bio DME (10%) (by 2050). 2050
e-fuel Converting fuel to e-fuel Convert the fuel currently sold to e-fuel gradually, satisfying environmental demand (2050). 2050
SAF Promoting a SAF (Sustainable Aviation Fuel) business Be responsible for the storage of SAF for import and the transport of SAF by sea and contribute to its commercialization and popularization. 2030
Proposal of low-carbon commodities Supporting customers' conversions for decarbonization Propose the best energy mix and conversions to energy with reduced environmental impact according to the customer's needs. Short-term, 2030, 2050
Renewable energy Renewable Energy Business Promoting solar power generation, wind power generation
and hydroelectric power generation businesses
Increase the total power generation capacity of facilities operated by the ITOCHU Group from approx. 250 MW to approx. 350 MW (2030). 2030
Biomass power generation business Commencement of the biomass power generation business Development and start of operation of a biomass power plant (2022). Short term
Self-consumption solar power generation business Developing a self-consumption solar power generation business (for businesses and homes) Promote the popularization of solar power generation by installing self-consumption solar power generation systems in factories, stores and houses and proactively developing a business of leasing these systems. Every year
Solar power-based agricultural business Developing a solar power-based agricultural business (solar power sharing) 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 and 2030
Energy Storage Business Develop a storage battery business Respond to demand and develop a storage battery business for businesses and homes 2030
Sale of low-carbon electricity Promoting the sale of low-carbon electricity Present a list of low-carbon/renewable energy power options to customers and promote proposals for service options that present CO2emissions reduction information (500,000 in 2025, 1,000,000 in 2030). Short term and 2030
Overseas development of other businesses related to renewable energy Overseas development of other businesses related to renewable energy Verify and develop thermal air conditioning systems overseas. Expand a Thai subsidiary's business leasing solar power generation equipment. 2030
Electric vehicles Sales Sales of Nissan electric vehicles that are environmentally friendly zero emissions cars Promote sales of electric vehicles. Every year
Infrastructure development Increased convenience for electric vehicle users Increase the stores equipped with electric vehicle chargers and improve services. Every year
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 Contribute to the popularization of EVs while verifying V2H, response to demand and other matters in cooperation with Nissan Osaka Hanbai. Provide 3200 households with EV sharing and V2H (by fiscal 2030). 2030
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
LPG (for household and business use) and high-efficiency equipment Reduction of CO2emissions 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
BCP system based on disposed batteries R&D for the BCP system based on disposed batteries Conduct research and development of a system that enables the use of solar power generation equipment during blackouts using batteries installed in hybrid vehicles. Demonstration experiment commenced in fiscal 2021. FY2021
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
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. Sales target: 110,000 kL in fiscal 2022, 140,000 kL in fiscal 2023, 200,000 kL in fiscal 2030. Short term and 2030
Recycled slop oil business Expanding the recycled slop oil business (a recycling business collecting slop oil from vessels and selling it as reclaimed oil) Increase sales volume Short term
Fly ash (coal ash, biomass fuel ash) recycling business Fly ash (coal ash, biomass fuel ash) recycling business Expand a business recycling fly ash (biomass ash discharged from power plants and others facilities including coal ash and woody biomass) and selling it as a commodity (recycled beads). 9600 t in fiscal 2022, 9600 t in fiscal 2023. Short term
Support decarbonization management Demonstration experiment supporting customers' visualization of greenhouse gas emissions Commence a demonstration experiment supporting the visualization of greenhouse gas emissions as a management solution for customers' decarbonization efforts in collaboration with corporate partners (2022). Short term
Regional revitalization businesses Collaborating with local governments to reduce GHG
emissions and energize communities
Verify the CO2collection and utilization technologies to be used by dispatching personnel to Saga-shi in and after fiscal 2021. Verify a model for cooperation with local governments and ensure cooperation with other local municipalities after that. Every year
Heat utilization Expanding sales channels for heat utilization systems Expand sales channels for TTS heat utilization systems in the Southeast Asia region. Promote the overseas deployment of desiccant air conditioning (SDS). Short term and 2030
Reduction of environmental impact within the organization Green office activities Reducing the consumption of electricity, fuel, copier paper and water, and the generation of waste in business activities Reduce general electricity consumption. Reduce offices' fuel consumption (LPG and fuel oil). Reduce vehicles' fuel usage (reduce the use of gasoline, light fuel oil, autogas, switch to GTL, HVO, electricity and e-fuel). Set the reduction goals for copier paper, water consumption, and waste output to 99% of the previous year's results. Every year
Initiatives to conserve energy at offices and switch the electricity they use to green energy Promoting offices' conservation of energy and
their switching the electricity they use to green energy
Encouraging offices' conservation of energy and their switching the electricity they use to green energy Reduce power consumption by installing solar panels at retail stores. Install solar panels at 32 enexfleet Co., Ltd. CSs
Install solar panels at ten KYUSHU-ENERGY Co., Ltd. CSs (by 2030).
Increasing awareness to encourage energy conservation and decarbonization actions Promoting cool choices Promote energy saving actions within the company supporting the Ministry of the Environment's COOL CHOICE campaign encouraging actions to address climate change such as green purchasing, ending the wearing of neckties, eco-driving, electricity conservation, and the use of staircases instead of elevators. Every year
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
Approach to supply chains Reducing CO2emissions in the transportation stage Provide eco-driving training to responsible people from consigned carriers operating trucks and group companies once a year to enable shippers to fulfill obligations and reduce CO2emissions in accordance with the Act on Rationalizing Energy Use and raise awareness of the need to conserve energy. Every year
Increasing the efficiency of systems and logistics Increasing efficiency using LPWA and conducting inspections using iPads to enable paperless operations Reduce CO2emissions through automated meter reading and increased efficiency using LPWA. Promote customers' introduction of LPWA for direct sales. Conduct inspections using iPads to enable paperless operations. Every year
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
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
Reduction of CO2emissions utilizing demand forecasting Reduction of CO2emissions by applying optimal charges based on demand forecasts Reduce CO2emissions by applying optimal fees based on demand forecasts. Propose LPG and electricity charges using J-Credits. Every year
Environmental conservation activities Afforestation/environmental conservation activities Contribute to CO2absorption by contributing to afforestation and environmental conservation. 2030
Blue carbon Marine environmental conservation activities Contribute to CO2absorption through environmental conservation activities, such as the regeneration of blue carbon ecosystems. Commence initiatives in fiscal 2022. 2030
Conservation of Biodiversity Promoting the conservation of biodiversity Promote the activity of conservation of biodiversity. Every year
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
TCFD Disclosures Based on the TCFD Recommendations Disclose information appropriately in line with the TCFD recommendations. Aim to improve precision by reviewing details as appropriate and disclosing information appropriately. Every year
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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
    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

Sector Commodity/business Initiative Target Target Year
Relationships with
local communities
Disaster prevention Maintaining infrastructure in times of disaster Operate disaster-resilient fueling stations that enable fueling even during disasters. They should enable fueling for emergency vehicles even during power outages. Continue the operation of the disaster-resilient core filling stations (equipped with non-utility electrical power facilities, fuel filling equipment for automobiles, and satellite phones) that are facilities for stably supplying LPG even during disasters. Secure regional energy lifelines during disasters by operating a disaster-resilient bulk energy system that permits collective power generation, hot water supply, and the provision of hot meals using LPG. The Kizuna Net Center is ready to ship fuels 24 hours a day using emergency small-lot vehicles. The underground water tanks can provide water for daily needs and fire-fighting in an emergency while they are usually used for a heat supply business. Every year
Business continuity (BC) measures Reinforcing the group's business continuity (BC) system Implement the business continuity plan (BCP) in times of disaster. 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 so that headquarters can function even during a disaster. Renew resilience certifications. Ensure the company can be constantly managed through appropriate evaluations by external organizations. Every year
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
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
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
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
Enhancing car life services Conduct a demonstration experiment for the introduction of new services at car life stations in collaboration with Rakuten Group, Inc. 2022
Deploying 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.
Developing car wash and coating businesses in Vietnam Contribute to a higher quality of car life. Verify overseas car life businesses. 2030
Smartphone fueling Pursue convenience, specifically, safe and secure shopping that ensures social distancing, paperless operations to reduce environmental impact, and reservation and payment using mobile devices. 2030
Development of overseas sales of LPG Overseas LPG business (Asia including Thailand and Philippines) Expand the LPG sales business and other new businesses in Thailand and neighboring countries in collaboration with WP ENERGY PUBLIC COMPANY LIMITED. Short term, 2030
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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
    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

Sector Commodity/business Initiative Target Target Year
Diversity in the workforce Successful careers for employees of all ages Appoint excellent human resources to managerial jobs regardless of age or gender. Every year
Successful careers for mid-career professionals Support the successful careers of mid-career professionals who have experience in many different things Every year
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
Encouraging employees to take childcare leave Promoting Diverse Working Styles Every year
Utilizing the work-family life balance support system Promote the utilization of the staggered/shortened work hours systems by people raising children, caring for family members and facing other issues Every year
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
Active participation of female employees Ensuring diversity by employing newly graduated students Promotion of female participation and career advancement in the workplace Every year
Recruiting diverse core human resources Percentage of managers/supervisors that are women: 10% in 2030, 30% in 2035 Every year
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
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
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
Managing labor thoroughly Improve employees' work-life balance Every year
Taking action to control infections Prevent the spread of infections including COVID-19. Take measures to prevent infection. Provide accurate information and increase awareness. Every year
Pursue continual improvement in occupational
safety and health
Lost time injury frequency rate: 0 Every year
Enable the organizational culture to take root in the company Providing cross-functional training Hold training that encourages employees at large to learn about businesses and people and think about the future of the company: 285 participants Every year
Implementation of employee satisfaction surveys Enabling an organizational culture to take root and improving overall satisfaction Once every couple years
Human resources
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
Support personal growth Enhancing an array of programs supporting the personal growth of employees
(e.g., support studying at graduate schools, financial aid for qualification acquisition)
Support employees' personal growth and development of skills and abilities Every year
Employee training Providing an array of training opportunities Increase employee awareness of personal growth and the development of skills and abilities Every year
Social Contribution
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
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4.Corporate Governance

  • Risks
    Risk of business discontinuity accompanied by the dysfunction of corporate governance and internal control, unexpected losses/costs, and other risks
    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

Sector Commodity/business Initiative Target Target Year
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. Every year
Increasing stakeholder engagement Improve transparency and increase stakeholder engagement by reinforcing and enhancing many types of disclosure. Every year
Operating committees appropriately Ensure the appropriate operation and effective functioning of committees. Every year
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
Strengthening information security Analyze the current status of information risks within the group companies and implement reliable measures. Every year
Enhanced Group Governance Continue to enhance group governance through reviews of the system. Every year
Enhancing risk management Reduce risk by strengthening the risk management structure and steadily implementing risk management processes and controlling risk. Every year
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
Responding to social issues by reviewing policies Review corporate policy and other matters to respond to requests from society and issues faced by the company. Every year
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