Biodiversity

The Earth is home to a wide variety of organisms, and these organisms interact in complex ways to form ecosystems. It is said that these ecosystems possess a restorative function that allows them to absorb various external changes and return to their original state. Our group aims to achieve the objectives of the Convention on Biological Diversity, and we believe that it is an important mission for our company to pass on these ecosystems to future generations and maintain and restore an environment in which diverse organisms can continue to thrive.
In response to the TNFD ^*1 recommendations, we have developed a plan to address them over a four-year period starting in fiscal year 2024 and are proceeding with our efforts. Currently, we are conducting assessments of nature-related dependencies, impacts, risks, and opportunities in accordance with the LEAP approach ^*2 recommended by the TNFD, and are progressively expanding our disclosures.
Furthermore, even before the importance of biodiversity conservation became widely recognized in recent years, our company has always been mindful of coexisting with nature in conducting our business and has carried out our operations with consideration for this area. Our founder, Sazo Idemitsu, advocated for the realization of "a park-like factory where industry and nature are in harmony," which would have green spaces like parks and thrive together with the local community. To realize this philosophy, our Refinery and Complex have installed green spaces exceeding the area stipulated by law at the start of operations to harmonize with the surrounding natural environment. Our biodiversity conservation activities promoted by our group, including these, are summarized in the "Initiatives" section.

In the Idemitsu Group Sustainability Policy, our group outlines our efforts to reduce environmental risks arising from our business activities, to protect the natural environment, and to contribute to the realization of a recycling-oriented society. In addition, we are working to conserve biodiversity while building partnerships with local communities in accordance with the Biodiversity Guidelines described below.

Governance regarding nature-related issues

At our company, sustainability-related issues are discussed within Management Committee. The President serves as chairperson of Management Committee, and the contents of the discussions are submitted to and reported to Board of Directors as appropriate. Regarding efforts toward the TNFD recommendations, Corporate Sustainability Office, established within the Corporate Planning Department, takes the lead, reporting the response plan to Management Committee and promoting it across departments. Please see the following page for details on our sustainability promotion system.

Human Rights Policy and Engagement

In assessing and managing nature-related dependencies, impacts, risks, and opportunities, relationships with stakeholders such as indigenous peoples and local communities who have deep ties to nature are crucial. Therefore, the TNFD recommends disclosing an organization's human rights policy from a governance perspective.
In 2019, with the approval of Board of Directors, we formulated the "Idemitsu Group Human Rights Policy," declaring our respect for internationally recognized human rights, including the Universal Declaration of Human Rights and the ILO's Declaration on Fundamental Principles and Rights at Work. This policy explicitly states that "the use of land, water, and natural Resources" and "respect for the rights of indigenous peoples" are important human rights issues for our group, and we promote our business activities based on these principles. For further details, please see the next page.

In line with the LEAP approach recommended by TNFD, we are conducting assessments of nature-related dependencies, impacts, risks, and opportunities, and are progressively expanding our disclosures.

● LEAP Approach Implementation Plan

To identify ecologically sensitive locations, we conduct analyses of the proximity of our manufacturing sites to areas important to biodiversity and the physical water risks associated with them.
Regarding proximity to areas important for biodiversity, there are no bases located near IUCN protected area categories Ia (Strictly Protected Area), Ib (Primitive Natural Area), or III (Natural Monument), but there are bases located within a 5km radius of IUCN protected area category II (National Park).
Regarding physical water risks, some manufacturing sites located in the Asian region are situated in areas where water stress is rated as "High" or "Extremely High" according to the Aqueduct Water Risk Atlas ^*1. However, none of the production processes at these sites require large amounts of water, and the total amount of water taken by the sites rated as having high water stress in FY2024 is less than 0.01% of the group's total water intake. In addition, we have conducted interviews with each site and confirmed that no operational problems due to water shortages have occurred at any of the manufacturing sites. Furthermore, we are continuously working to mitigate potential risks by promoting water recycling and developing water storage tanks. Based on these circumstances, we believe that the likelihood of water shortages having a significant impact on operations at this time is low.

● Indicators and tools used to analyze sensitive locations

● Number of locations located near areas important for biodiversity (within a 5km radius)

● Water stress assessment results

To identify nature-related risks and opportunities, it is first necessary to understand our dependence on and impact on nature. Using ENCORE^*, an online tool that allows for the analysis of nature dependence and impact for each business process, we organize the dependence and impact for each process. For processes that are deemed to be of high importance, we directly investigate the situation at our operational sites and organize the relevant initiatives along with the findings. For details on the relevant initiatives, please see "Reducing the Impact of Business Activities on Nature" under "Initiatives" on this page.

●Implementation Steps

●Organizing dependencies and impacts for each process using ENCORE

●Overview of the environmental dependence and impact of Petroleum business

Recognizing that nature-related risks and opportunities arise from the dependence on and impact of business activities on nature, we are conducting analyses that take into account the regional characteristics of each business location, the degree of dependence on and impact on nature, and external factors such as institutional trends and social demands.
Physical risks include operational constraints and additional costs arising from a decrease in the supply of water Resources used in the production process. Each business site is continuously implementing measures such as water recycling and the development of water storage tanks to mitigate potential risks.
Transition risks include a decline in social reputation due to concerns about the environmental impact of business activities, operational constraints and additional costs arising from revisions and strengthening of environmental laws and regulations, and liability for damages and a decline in social trust in the event of environmental accidents such as oil spills. Under our environmental conservation policy and environmental management system, our group has continuously promoted initiatives to reduce environmental impact at each of our business sites. We believe that these initiatives contribute to reducing nature-related Transition risks. For specific initiatives at each site, please see "Initiatives" on this page.
Furthermore, we recognize and assess the importance of considering the interaction with climate change when identifying nature-related dependencies, impacts, risks, and opportunities. Climate-related risks, opportunities, and initiatives are disclosed on the "Carbon Neutrality, Climate Change Response" page.

Going forward, we will continue to review and evaluate the nature and importance of nature-related risks and opportunities, taking into account the state of the natural environment and changes in social demands.

Identification and evaluation process for nature-related issues

We are considering processes for identifying, assessing, and managing nature-related issues, referencing the LEAP approach recommended by TNFD.

●Process for identifying and evaluating nature-related issues

Measurement indicators for evaluating and managing nature-related issues

Our group's disclosures regarding the core global indicators of dependence on nature and impact as presented by TNFD are as follows:

●Core global indicators related to dependence on and impact on nature

Under our environmental conservation policy and environmental management system, our group is continuously promoting initiatives to reduce environmental impact at each of our business locations. Our main initiatives are as follows:

● Main initiatives

*For details,LEAP Approach Related Information > Business Dependence on Nature and its Impact - Related Initiatives.

ENCORE's assessment identifies coal mining as a process deeply intertwined with terrestrial ecosystems. ^*3 Based on this assessment, we will introduce the initiatives at Boggabri Mine as a specific example.

Biodiversity-Related Initiatives at Boggabri Coal Mine

Coal mining involves extracting coal resources buried underground. In the case of open-cut mining, this requires the removal of topsoil, which results in temporary adverse impacts on biodiversity. At Boggabri Coal Mine, we implement systematic environmental impact management to minimize potential impacts on biodiversity associated with mining activities. This is undertaken based on comprehensive environmental assessments and in accordance with approvals and management plans that have been reviewed and approved by the State and Federal Governments following consultation with our local community.

【Environmental Impact Controls】

The mine plan has been specifically designed as far as　possible to reduce environmental impacts. For example, we avoid additional disturbance to remaining vegetation by reviewing plans for new infrastructure and prioritizing the use of existing facilities.　Vegetation clearing is limited to the minimum necessary, and impacts on biodiversity are minimized through measures such as two-stage clearing.
Following the implementation of these avoidance and minimization measures, rehabilitation and biodiversity offset are being undertaken.

【Rehabilitation of Mined Areas】

At Boggabri Coal Mine, rehabilitation is carried out in accordance with the Rehabilitation Management Plan. Following mining activities, topsoil is replaced and locally native plant species are re-established to promote the recovery of biodiversity.
The Rehabilitation Management Plan is a management framework designed to ensure that landform reconstruction and revegetation are implemented in a planned and consistent manner after mining. The plan clearly defines the final landform and post-mining land use, as well as setting rehabilitation objectives.
The progress of ecosystem recovery through rehabilitation is monitored frequently through surveys of vegetation, soils, and fauna. The status of rehabilitation activities at the Boggabri Coal Mine is as follows.

● Rehabilitation of mining sites

●Rehabilitation implementation status at Bogabrai Mine (unit: ha)

【Biodiversity Offsets】

Biodiversity offsets are measures that compensate for unavoidable impacts on ecosystems by securing equivalent or higher conservation and restoration outcomes at alternative locations, thereby maintaining or enhancing biodiversity at a regional scale.
For an operational mining disturbance area of 1,459 hectares, Boggabri Coal has acquired more than 11,500 hectares of biodiversity offset areas to fulfill our obligations. These offset areas comprise a diverse range of vegetation types, including grasslands, riverine woodland, grassy woodland on fertile soils, open forest on skeletal soils, and former agriculture and farm dams. 
The offset areas are strategically managed in accordance with the Biodiversity　Offset Strategy, which aims to maintain and enhance regional biodiversity. The Biodiversity Management Plan specifies management methods and performance criteria for vegetation regeneration, restoration of fauna habitats, and the control of feral animals, weeds, and invasive species. A range of management measures are implemented on an ongoing basis in line with this plan. 

Main Objectives of Biodiversity Offsets

For further details on environmental management plans and their implementation, please visit Idemitsu Australia’s website.

Our greening efforts, an activity that leads to the preservation of biodiversity, began with the construction of our first Refinery, Tokuyama Refinery (now Tokuyama Complex), which was completed in 1957. At the time, the Factory Location Law and other regulations and laws concerning factory green spaces were not enforced, but the founder Sazo Idemitsu believed that it was necessary to create a factory that would be loved by the public, and he advocated the creation of a lush green park factory where industry and nature would blend together, and a large green space with a Western-style garden was created at Tokuyama Refinery. The founder's thoughts were later carried over to Refinery and Complex, which were built in various locations, and green space-related activities continue to this day.
In addition, we believe that it is important to work with local communities to conserve biodiversity from the perspective of coexisting with local nature, and we are working with other organizations in various regions to achieve this goal. Major biodiversity-related activities are as follows

● Major biodiversity-related activities

Green Space Management

【Monitoring of flora and fauna in the plant's green space (Hokkaido Refinery)】

Hokkaido Refinery has created a buffer green space after much trial and error, building sacrificial forests and artificial hills, and installing salt damage fences in the harsh environmental conditions unique to Tomakomai, such as sea breezes and volcanic ash. Approximately 12,000 trees, including rowan, birch, and black pine, are grown there. Currently, it also functions as a habitat for living creatures, and surveys of plants, dragonflies, birds, and shellfish have been conducted since 2012. Bird song monitoring and migratory bird monitoring, which have been conducted every three years since 2016, have shown that the diversity of birds living in the green space of Hokkaido Refinery has been largely maintained, and that the green space of Refinery has become a permanent migratory route for small birds. Please see the next page for details.

【Improvement activities for the "Local Forest" area within the company grounds (Chiba Complex)】

Refinery (currently Chiba Complex) established and maintained a green belt 100m wide and 3km long at the same time it began operations in 1963. In addition, in order to create a local evergreen broadleaf forest known as the "Local Forest," the planting of non-native species of trees that had been planted on the premises since the plant began operations has been carried out since 2011 with plants native to Japan (especially the Boso Peninsula). In 2011, non-native species such as Chinese walnut, which had overwhelmed other tree species, were systematically cut down, and a total of 100 trees, including Machilus thunbergii, Castanopsis sieboldii, Chinese hackberry, and Hazenoki, which are commonly found in natural forests along the coast of Chiba Prefecture, were then planted. Since then, management of the branches of upper-story trees that overwhelm the planted trees has been continued, and by 2023, the planted trees have grown steadily and the shrubs of the natural forest have grown. From 2022 onwards, the target area will be expanded and improvements to the green space will be implemented.

【Protection of the rare species "Mizokouju" (Aichi Complex)】

When installing new equipment at Refineries / Complexes, we conduct environmental assessments and protect rare plants identified through ecosystem surveys. Currently, the rare plant ''Mizokoju'' (designated as a near-threatened species by the Ministry of the Environment), which was discovered during the construction of equipment at Aichi Complex is protected in a protected area.

【Efforts to protect and nurture the grasslands of Akiyoshidai (Seibu Oil Co., Ltd. Sanyo-Onoda Complex)】

As part of our efforts to protect the water source of "Akiyoshidai," we are taking part in a collaborative water source conservation activity called "Activities to Protect and Cultivate the Grasslands of Akiyoshidai," organized by the Kotogawa Industrial Water Users Council (a voluntary organization consisting of 12 companies that draw industrial water from the Kotogawa River).
As supporters of activities such as "fire cut" which is important for maintaining the grasslands of Akiyoshidai, we are involved in conservation activities every year leading up to the "mountain burning" which is a seasonal event in early spring.

Engagement with local communities

【Idemitsu Wildlife Survey Team Nature Experience Event to be Held (Hokkaido Refinery)】

With the aim of passing on the preservation of biodiversity to future generations, we have been holding the "Idemitsu Living Creatures Research Team" nature experience event for elementary school students since 2014, focusing on the flora and fauna that live in the green spaces on our premises. Please see the next page for details.

【Double-flowered cherry blossoms open to the public on the Refinery (Hokkaido Refinery)】

Within Hokkaido Refinery, a row of approximately 80 double cherry blossom trees is planted over a distance of approximately 800m, and is open to the public when in full bloom.

Collaboration with other organizations

【Participation in the "Corporate Forestry" System (Hokkaido Refinery)】

Since December 1996, Hokkaido Refinery has been using the Forestry Agency's "Corporate Forest" system, which allows corporations and other corporations to participate in the maintenance of national forests and carry out social and environmental contribution activities. The forest is managed under the name "Idemitsu Appenai Water Source Forest."
In May 2008, we newly leased 4.5 hectares of land in Tomakomai City for reforestation, and in June of the following year, we invited 102 elementary school students in the city to participate in a hands-on learning experience in planting trees such as red spruce, white birch, and double cherry tree. We planted 6,500 trees. This forest has been named the ''Idemitsu Green Natural Forest,'' which was chosen by elementary school students who participated in the tree-planting project, and will be maintained.

【Participation in "Haskap Bank" (Hokkaido Refinery)】

Hokkaido Refinery is working with the local community to protect, preserve, and cultivate the haskap Resources that is native to Tomakomai, as well as to acquire and improve related technology through its participation in the Haskap Bank.

【Participation in the "Corporate Forestry Project" (Chiba Complex)】

Chiba Complex has signed an agreement with Chiba Prefecture on the "Corporate Forest Project" and will be carrying out forest maintenance as "Idemitsu Chiba Forest" from fiscal year 2024. This initiative contributes to the local community by having the company carry out forest maintenance on behalf of Chiba Prefecture in prefectural forests. In addition, we plan to utilize a system in the future in which the prefectural governor evaluates and certifies the amount of CO2 absorbed by forests. In 2024, we carried out three conservation activities (grass cutting, repairing a promenade that was damaged by a major typhoon several years ago, etc.).

【Participation in the "Project to Save Lives" (Aichi Complex)】

Aichi Complex is active as a key member of the "Connecting Lives Project" ^*1, which aims to improve biodiversity and promote the formation of ecosystem networks. In fiscal 2024, we participated in the project's event, "LOVE GREEN DAY 2024."
This project was highly praised for its potential as a prototype for initiatives that contribute to biodiversity in buffer green zones and for being a social framework that continues from COP10 (2010). In October 2024, it received the Prime Minister's Award, the highest award, at the 44th Green City Awards ^*2.

【Participation in volunteer work for "maintaining crane roosts" (Tokuyama Complex)】

Every year, Tokuyama Complex participates in and cooperates with the volunteer activities for "creating a crane roost" promoted by Shunan City to protect the Hooded Crane, a species designated as endangered in the second category, which migrates to the Yatsushiro area of Shunan City around the end of October.

【Participation in the "Town, Forest, and Water Exchange Meeting" (Tokuyama Complex)】

The "Town, Forest and Water Exchange Meeting" hosted by the Shunan Agriculture, Forestry and Fisheries Office aims to deepen understanding of the water source conservation and global warming prevention functions of forests, which are essential to the lives and business activities of the prefecture's residents, as well as to promote voluntary activities for forest development and appropriate management.The event involves the development of water source forests with the wide participation of water-using companies and others.
Our company, which is a member of the Industrial Water Users Council and uses water, is also participating in this activity.

Participation in the 30by30 Alliance

In order to achieve the goals of 30by30 ^*, we have been participating in the 30by30 Alliance for Biodiversity, which is composed of the Ministry of the Environment (secretariat) and interested companies, local governments, and organizations, since its inception in April 2022.

Clean Ocean Materials Alliance (CLOMA)

Shunan City, Yamaguchi Prefecture Wood Biomass Material Utilization Promotion Council

Our ecosystem conservation activities in the areas surrounding our Refineries/Complexes have been highly praised by external organizations, with our Hokkaido Refinery and Aichi Complex achieving the highest possible ranking (Superlative Stage) on a five-point scale in the Social and Environmental Green Evaluation System (SEGES) run by the Organization for Landscape and Urban Green Infrastructure.
Additionally, Aichi Complex has been certified with the highest SEGES rating since 2016, and in recognition of its significant contributions to enhancing the value of green space, it was certified as a "Green Hall of Fame" in 2023. Specifically, it has been highly praised for its efforts to restore the forest cycle within the green belt by clearing out invasive species, converting to native species, and creating canopy gaps, as well as its efforts to regenerate the ecosystem network in collaboration with government and students. This marks the 10th corporate green space in Japan to be certified as a "Green Hall of Fame," and the first for a Japanese Refinery.
Following this, Hokkaido Refinery was also certified as a "Green Hall of Fame" in 2025.
Since its inception, the plant has been working on greening activities within the harsh natural environment unique to Tomakomai, and has cultivated 20,000 trees to date, using various methods such as installing net fences and creating artificial hills to protect the trees from sea breezes and volcanic ash. Furthermore, the plant has been carefully cultivating a 200-meter-long row of double cherry blossom trees for over 50 years, which is open to the public in the spring. The plant also participates in conservation and cultivation activities for native haskap, a local specialty, and has opened part of its grounds to the local community as a cultivation garden. The plant also works to preserve its natural heritage, providing opportunities for elementary school students to learn about the importance of nature through environmental studies that focus on the flora and fauna of the plant site.
Going forward, we will continue our efforts to maintain and develop green spaces and contribute to the local natural environment.

Towards the realization of 30 by 30, the country (Ministry of the Environment) is building a system in which areas where biodiversity is being conserved through private sector initiatives will be certified as "Nationally Certified Sustainably Managed Natural Sites". Hokkaido Refinery　has been certified as a  ”Nationally Certified Sustainably Managed Natural Sites” in 2023.
Since its launch in 1973 Hokkaido Refinery has been managing its green spaces in harmony with the surrounding natural environment with the aim of becoming a "green park factory," and now, 50 years into its operation, a forest has formed that is home to a diverse range of plants and animals. In the green spaces on the premises, the cherry blossom trees are open to the public, a nature experience event for elementary school students called the "Living Creatures Research Team" is held, and the refinery is involved in activities to contribute to the local community, such as participating in the conservation and cultivation of wild haskap trees.
The certified areas, excluding any overlap with protected areas, have been registered in an international database as "OECMs (areas other than protected areas that contribute to biodiversity conservation)."