Policy & Basic Approach

● Sustainability Policy

Sustainability Policy

The ITOCHU ENEX Group has a mission of delivering energy and services as a "The Best Partner for Life and Society"" and will aim to improve our corporate value while contributing to the development of a rich life for people and a sustainable society.

  • Contributing to a carbon neutral society through our business
  • Contributing to rich communities through a stable energy supply
  • Establishing a governance system stakeholders can rely on

Established in November 2021

 

● Sustainability Key issues (Materiality)

Based on the Sustainability Policy, we have identified sustainability key issues (Materiality). Through the activities for addressing those issues, we will contribute to development of a sustainable society and work for further improvement of our corporate value. In addition, for our activities related to the important issues, the Sustainability Committee will manage their progresses.

(1) Address climate change
 ~ Contributing to the realization of a carbon neutral society ~
(2) Access to energy
 ~ Delivering the gift of energy to everyone ~
(3) Utilize human resources
 ~ Human resources strategies for creating diverse value ~
(4) Corporate Governance
 ~ Making transparent, viable, and fair decisions ~

 

● Process for Determining Key Issues (Materiality)

 

● Action Plan for Key Issues (Initiatives)

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

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 items for key issues were revised in fiscal 2023. 

As of October 2024
Sector Commodity/business Initiative Target Target Year FY2023 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 RD: Although demand was increasing, results did not reach the target due to exclusion from mitigation measures.
  • Began long-term demonstrative testing in construction of facilities for Expo 2025 Osaka, Kansai, Japan.
  • Applied for and selected for Tokyo Metropolitan Government Program supporting the commercialization of biofuel utilization.
  • Began demonstration in Kitakyushu Airport shuttle buses.
  • Obtained the Eco Mark for Renewable Diesel. The first to be certified as a synthetic fuel(biodiesel).
GTL: Although demand was increasing, results did not reach the target due to exclusion from mitigation measures.
 
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
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
  • A hydrogen station opened and started operations in May 2024.
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
  • The LNG bunkering vessel "KEYS Azalea" was delivered and began operations in March 2024.
  • Expanded LNG bunkering and coastal transportation business operations to the Kyushu and Setouchi regions.
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 Jun. 30, 2024: 273.7 MW (Breakdown: 243.5 MW owned by EIF + owned by others (Eneden / Sodateru) 30.2 MW = 271.5 MW)(The only real increase was Sodateru / Chuene: 110 kW. Other increases were due to revision of EIF figures.)
Biomass power generation business Commencement of the biomass power generation business Development and start of operation of a biomass power plant . Short term
  • Oji Green Energy Tokushima (Anan City, Tokushima Prefecture) is operating as planned.
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 Jun. 2024, systems had been introduced to a total of 16 locations.
(Enex Fleet Nishinomiya Interchange Car-Life Station, KohnanKohnan Daito, Kohnan Niihama, 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,IMP Minoh, IMP Kasugai, IMP Kazo, IMP Yoshikawa Minami, Numajiri Sangyo, Kohnan Takamatsu)

[Agricultural]
Five in operation (FIT) in Anan City, Tokushima Prefecture (as of the end of Jun. 2024)
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 Jun. 2024, twelve 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, 2024: 93 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
  • Introduced at two locations (Sanko and Isuzu Dormitory). Continuing to make proposals to local governments and companies based on case studies.
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
  • 72 Enefarm units (as of the end of Mar. 2024)
  • 43 storage battery units (as of the end of Mar. 2024)
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: 10,540 units (as of the end of Mar. 2024)
  • Eco Joes: 17,094 units (as of the end of Mar. 2024)
  • GHPs: 16 units (as of the end of Mar. 2024)
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
  • Okayama plant completed in November 2023.
  • Improving efficiency by optimizing logistics system and working to strengthen sales.
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
  • alculated (visualized) GHG emissions and consulted regarding GHG reduction plans. We also proposed our environmental products (GTL and renewable fuels) as solutions and specifically worked to reduce GHG emissions.
  • In addition to supplying steam from LPG-fired boilers to the Tango Textile Industrial Association, we achieved a 25% reduction in CO2 emissions in comparison with the previous year, as a result of efforts to maintain and improve boiler efficiency. ITOCHU ENEX is actively developing proposals to new customers for decarbonization equipment.
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
[FY2023 results for energy savings]
  • Gneral electricity consumption: 95% (Achieved compared to the target and the previous year. Reduction by power saving and use of LED lighting in offices)
  • Fuel for offices: 224% (not achieved: due to new investment in LPG), fuel for vehicles: 107% (not achieved)
  • Copy paper: 95% (target and previous year's levels achieved)
[FY2023 results for green energy conversion]
  • 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. 
  • Solar power generation systems for self-consumption were installed at Enex Fleet Kadoma CS store (*+1 CS YoY; *total number of solar power generation system installations: 2 CS)
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 489,375 terminals installed to cover 101% of the customers (on the basis of valves opened)(as of Mar. 2024)
  • Security inspection survey mobile was utilized at HOME-LIFE HOKKAIDO, TOHOKU, NISHI-NIHON, SHIKOKU, EA Kanto, and EA Chubu to make inspection forms for LPG and other gas retail and bulk sales paperless.
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 July 2024, ITOCHU ENEX underwent a renewal audit performed by the Japan Audit and Certification Organization for Environment and Quality (JACO) to maintain certification, renewing its certification for a three-year period valid until September 1, 2027. We will continue to work on efficient energy consumption and legal compliance based on our environmental management system. (The next external audit is scheduled to be conducted in July 2025, during the valid period.) 
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 2023 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 38 hectares  and reduce approximately 667 t of CO2 since fiscal 2021. 
  • ITOCHU ENEX signed an agreement for joint research on blue carbon with the University of Tokyo and the Fukuura Fisheries Industry Cooperative Society. They started cultivation of wakame seaweed in Dec. 2022, harvested in Apr. 2023 and Apr. 2024, and carried out measurements and other related activities. Based on the findings from the verification in 2022, we are currently considering policies for 2024 and 2025.
[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. (ongoing since fiscal 2021)
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
  • Follow-up to promote qualification acquisition(Conducted e-learning training to prepare for the C-Type Chief Gas Engineer examination. )
  • Implemented smart safety initiatives to improve operational efficiency (shifted to mobile device solutions for statutory inspections and considered introduction of DX)
  • Utilized the HL Security Audit System (ESAS) to complete audits, report preparation, transmittals, and aggregation of results 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 items for key issues were revised in fiscal 2023. 

Sector Commodity/business Initiative Target Target Year FY2023 Progress and Review
As of October 2024
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]
  • Continue and maintain functionality and services at filling stations (equipped with non-utility electrical power facilities, fuel filling equipment for automobiles, and satellite phones), which are facilities for stably supplying LPG even during disasters.

[Enhancing the Group's BCP]
  • The business continuity plan (BCP) was revised, preparing a business recovery plan for each sector, and for individual key products and services, for over 180 minutes. (Fifth edition / October 2023)
  • Safety confirmation drills were conducted four times in fiscal 2023 and twice between April and June 2024.
  • First-aid workshops were held at major bases in Tokyo, Sapporo, Sendai, Nagoya, Osaka and Hiroshima. First-aid lifesaving skills certificates will be issued to 350 personnel. (Fiscal 2023)
  • Drills for establishing alternative location disaster HQs were held in Hiroshima (August) and Fukuoka (September).
  • Routes for personnel to return home in the event of a large-scale disaster were confirmed. (September 2023, April 2024)
  • Self-defense fire brigade (Kasumigaseki Building) district units were reorganized (27, 28 and 29F) (April 2024).
  • While BCP documents, systems, and operation structures have been prepared internally until now, the fifth version of the BCP was completed reflecting resilience certification and the evaluations and knowledge of external consultants. We judge that the role of resilience certification at the time of introduction has been fulfilled, and will not renew it in fiscal 2024. ITOCHU ENEX will continue to focus on enhancing practical disaster prevention, safety assurance, recovery frameworks and operations, and undergo resilience certification evaluations as necessary. 
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
  • Fixed emergency power generators had been installed at 153 base stations (as of Jun. 2024).
  • Three fixed emergency power generators will be installed during the first half of the current fiscal year. Supply of one more is scheduled to begin during the second half of the year.
  • ITOCHU ENEX plans to start supplying LPG to non-fixed portable emergency power generators in some regions during the first half of the current fiscal year.  Discussions on SoftBank's disaster response are ongoing.
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
  • Fiscal 2023: Lent vehicles for DWAT activities in areas impacted by the Noto Peninsula Earthquake.
*DWAT = Disaster Wel*DWAT = Disaster Welfare Assistance Team.

 
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. We plan to discuss risk management in the event of a disaster with them.

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 the end of Mar. 2024). PayPay, dBarai, au Pay, Mercari Pay, and Rakuten Pay electronic payment methods were introduced. Most major QR code payment services are now supported. Sales promotion activities for customers using smartphones to refuel have also been made paperless by linking with the LINE app.
[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. A hydrogen station opened and started operations in May 2024, and Enex Fleet is operating 24/7,365 days a year. (Sales results: 70 vehicles (230 kg) in May 2024, 98 vehicles (415 kg) in June 2024)

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 items for key issues were revised in fiscal 2023.  

Sector Classification Initiative Target Target Year FY2023 Progress and Review
As of October 2024
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
  • 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 mid-career employees hired: 20% (as of Jul. 2024) 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): 41% in Apr. 2024 
Increase the ratio of female managers and supervisors
  • FY2023
    Results:3.80%
  • FY2030
    Target:10%
  • FY2035
    Target:30%
  • In fiscal 2023, ITOCHU ENEX obtained Kurumin certification (a certification for companies that support employees with childcare responsibilities) for the sixth time, and Eruboshi certification for the first time. The purpose of the survey was to clarify the progress and position of efforts to promote women's participation and advancement by comparing the content of internal efforts with external evaluations.
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 Long-term childcare 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. 
  • A handbook that summarizes the program was created and made available on the internal portal 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. 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 2023)]
  • Percentage of employees taking childcare leave: 81% among males and 100% among females
  • Average length of leave taken per person: 43 days by males and 442 days by females
[Support for childcare and nursing care (as of Jul. 2024)]
  • Number of employees with shorter working hours for childcare: 15
  • Number of employees with staggered working hours for childcare: 4
  • Number of employees who took family care leave: 0
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. 2024)
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 2023 results]
  • Percentage of employees with a BMI of under 25: 70.7%
  • Percentage of non-smoking employees:74.1% 
  • Percentage of paid leave taken: 88.7%
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 Apr. 2023 
  • Ratio of employees who receive regular health checkups: 100%
  • Ratio of employees who receive thorough checkups: 59.2%
  • Ratio of employees with a systolic blood pressure under 130 and a diastolic blood pressure under 85: 81.0%
  • Ratio of employees with a level of neutral fat under 150 and that of HDL cholesterol at 40 or higher: 75.9%
  • 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): 80.4%(Fiscal 2023 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
  • Harassment training, compliance training, and anger management training were conducted based on topics in line with the issues of each company, with the aim of strengthening compliance at ENEX Group companies. A total of 16 sessions were held, with a total of 525 employees from 15 group companies participating.
  • In September 2023 and February 2024, ITOCHU ENEX employees received compliance training through e-learning conducted by ITOCHU Corporation. They learned about psychological safety. September: 1,431 participants, February: 231 participants
  • Between December 2023 and January 2024, all ITOCHU ENEX employees received harassment training. They learned about psychological safety.
  • In January 2024, ITOCHU ENEX added guidelines regarding customer harassment and notes for caution at drinking parties to its harassment guidelines, revised rules regarding prohibited behaviors regarded as harassment based on recent cases, and made the changes known internally, via its internal portal site.
Pursue continual improvement in occupational safety and health Lost time injury frequency rate: 0 Every year
  • Frequency of occupational accidents: 1.69 (actual at ITOCHU ENEX for fiscal 2023)
  • Severity of occupational accidents: 0 (actual at ITOCHU ENEX for fiscal 2023)
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 seven cross-functional training (CFT) sessions took place in fiscal 2023 with the total participation of 76 trainees. Trainees visited company-related facilities in each area for the purpose of strengthening frontline capabilities. Training was also conducted to incorporate the perspective of the SDGs into existing businesses. 
  • A group-wide meeting was held with the aim of sharing examples of initiatives by people active on the frontlines among Group companies (a total of eight companies participated). After the presentation of case studies, problem-finding and problem-solving training was conducted, and opinions were actively exchanged through group work.
Implementation of employee satisfaction surveys Enabling an organizational culture to take root and improving overall satisfaction Once every couple years
  • A Fiscal 2023 Work Engagement Survey was conducted (standard deviation: 53.0) *Wholesale, trading company, retail: average 50.3
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
  • Karuizawa LABO was established, with the aim of improving the employee education system, expanding and enhancing training, and fostering a sense of unity among Group employees. It operates as a training facility for Group companies and as a company-owned recreation center for employees.
  • Career design training is conducted with the aim of contributing to long-term career planning for mid-career to veteran employees, including their personal lives.
  • Overseas training program: Three employees were receiving training in Thailand, the Philippines and Singapore (as of Jul. 2024).
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: 2 (studying at graduate school in fiscal 2024)
  • Number of employees using the English learning support program: 22 (actual for fiscal 2024)
  • Number of employees using the program of financial support for correspondence education course fees: 108 (actual for fiscal 2024)
[Raising awareness of self-development and skill development](Results for fiscal year 2023)
  • Rank-based training: 7 sessions
  • Training sessions for newly appointed managers: 7 sessions
  • Finance training: total of 80 participants (as of March 31, 2024)
  • Introduced an online learning tool to support independent learning among employees on a trial basis (70 employees in total).
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
  • Blood donation activities were joined by 18 employees as donors in Jun. 2023, 33 in Dec. 2023, and 13 in Jun. 2024 
  • A Family Day was organized. (32 children participated in Jul. 2023)
  • The Enjoy the Power of Words events took place: Nagoya performance in Sep. 2023: 450 attendees Tokyo performance in Mar. 2024: 243 attendees
  • 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.
  • Donation for Noto Peninsula Earthquake Disaster Area: 3,000,000 yen
  • The Corporate Version of Hometown Tax Implementation: Total of 7,000,000 yen (1.Yusuhara-cho, Kochi  2. Etajima-shi, Hiroshima  3. Saga-shi, Saga  4. Rumoi-shi, Hokkaido  5. Aira-shi, Kagoshima)
  • The WFP Walk the World event: Implemented in May 2023: 93 participants, including group employees and their families. Implemented from May to June 2024: 86 participants, including group employees and their families
  • 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. (Continuing since FY2021)

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 items for key issues were revised in fiscal 2023.  

Sector Commodity/business Initiative Target Target Year FY2023 Progress and Review
As of October 2024
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 2023, 12 meetings were held with the participation of all members.)
  • Members of the Special Committee:Five independent officers(In fiscal 2023, 7 meetings were held with the participation of all members.)
  • On-site inspections (3 in fiscal 2023) and pre-briefing sessions (11 in fiscal 2023) were conducted to deepen the level of understanding of outside officers with regard to the business.
  • Issues in assessing the effectiveness of the board of directors and the results of analysis
    1. Further enhancement of discussions on medium to long-term management strategies
    2. Improvement in operation system for stimulating discussions
  • <Measures>
    1. Provision of opportunities for progress reports on the medium-term business plan and determining key themes
    2. Consider setting up a forum to hear the opinions of outside officers in order to re-energize 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
  • Audit & Supervisory Board Members attend meetings of each committee to ensure that they are operating appropriately.
  • Separate committees strictly implemented the practice of distributing materials in advance. 
  • The dates of meetings were quickly determined and communicated and minutes of meetings were swiftly produced.
  • Meetings held in fiscal 2023
    • Meetings of the Governance Committee and the Special Committee were as mentioned above.
    • The Sustainability Committee had six meetings, the Risk Management Committee eight and the Internal Control Committee seven.
    • The Disclosure Committee had four meetings (and 20 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
  • Fiscal 2023 training for the Group's compliance managers and personnel. Explanations were given on "perception of roles as supervisors and persons in charge," "response to incidents," and "the compliance (including whistleblowing) system." Seminar held with an external lecturer (held in person in April 2023, with 81 participants (including 39 Zoom participants)).
  • Workplace interviews were conducted with each division and seven Group companies to confirm the progress of measures to address issues identified in the compliance awareness survey, and inter-divisional collaborative training was conducted (July to September 2023: 137 participants). Follow-up is ongoing.
  • Training was conducted for practical compliance personnel with the aim of improving their skills in dealing with compliance incidents and helping them to understand the importance of implementing measures to prevent recurrence. June 2023: 21 participants, November 2023: 14 participants.
  • ITOCHU ENEX Group staff received compliance training sessions that ITOCHU Corporation conducts for its group employees (711 participants in Sep. 2023 / 231 participants in Feb. 2024).
  • A meeting of divisional compliance officers was held for the purpose of reorganizing the Group's compliance system (September 2023: 11 employees).
  • 674 ITOCHU ENEX employees underwent harassment training. Harassment and compliance training for Group employees was also conducted, with a total of 292 participants, with the aim of intensively eliminating violations of the Three Rules on prohibited behavior.
  • A check of the effectiveness of the Whistleblower Protection Act compliance system was conducted at Group companies (June to August 2023 / five companies).
Strengthening information security Analyze the current status of information risks within the group companies and implement reliable measures. Every year
  • Group IT information liaison meetings (two) and Group IT staff meetings (three) were held. 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 approximately 90 to 100 participants from 19 companies in the Group.
  • E-learning (two sessions) and targeted e-mail attack training (two sessions) were conducted.
    • In view of the increasing number and sophistication of cyberattacks, e-learning was provided to help personnel learn about methods of cyberattacks through specific examples, and targeted e-mail attack training was conducted to raise their awareness of cyber security.
    • Ratio of employees using it: just over 93% (Approximately 4,100 employees using it out of 4,400 eligible for it in ITOCHU ENEX and 19 group companies)
  • Note: The ratio was far above the level in fiscal 2021, which was 80.8%. 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, 2023 to Sep. 22, 2023 to 17 eligible personnel.)
  • A meeting of presidents of group companies was held in Sep. 2023 on the subject of Bolstering the comprehensive strength .
  • As of fiscal 2023, a function to check the internal control systems of small Group companies was added to the Audit Department's mandate (for the purpose of ensuring sound operation and risk management).
  • The Group's Audit & Supervisory Board meeting was held in Aug. 2023 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).
  • As of fiscal 2024, Subsidiaries & Associated Companies Management Department was established under Corporate Administration Division II (for the purpose of managing operating companies).
Enhancing risk management Reduce risk by strengthening the risk management structure and steadily implementing risk management processes and controlling risk. Every year
  • A Risk Management Section has been established as an organizational unit to oversee and manage the Group's risk management, to enhance risk management and reduce risks. (April)
  • The Risk Management Committee annually reviews risks that could have a significant impact on the Group. In fiscal 2024, nine risks* were selected as important risks (May).  *This content is also disclosed in the Business and Other Risks section of our securities report for the fiscal year ended March 2023.
  • Record of Risk Management Committee meetings: FY2023 / 8 meetings held, and as of the end of July FY2024 / 2 meetings held.
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 2023 was 97.9%.
  • Making the Sustainability Policy known.  
Sustainability education and training was provided for all employees of the Group in the form of e-learning, together with the aim of explaining and promoting understanding of sustainability initiatives.