Biodiversity

A wide variety of living organisms live on Earth, and it is said that these organisms are intricately intertwined to form ecosystems that are equipped with the ability to absorb various external changes and restore the environment to its original state. The Idemitsu Group aims to achieve the objectives of the Convention on Biological Diversity, and believes that an important mission for a company is to pass on this ecosystem to the next generation and maintain and restore the environment in which diverse organisms can continue to live.
We have formulated a plan to address the TNFD ^*1 recommendations over a four-year period starting from fiscal 2024 and are working on it. The LEAP Approach ^*2 that we are currently implementing is described in the "Strategy" section, and we will gradually expand disclosure of it.
In addition, even before the importance of biodiversity conservation became widely recognized in recent years, Idemitsu has always been conscious of coexistence with nature in the conduct of its business and has carried out its operations with consideration for this field. Sazo Idemitsu, the company's founder, advocated "the realization of a lush park-like factory where industry and nature coexist in harmony," with park-like green areas that would prosper together with the local community. To realize this philosophy, Idemitsu's Refinery and Complex have created green areas that exceed the legally required area when they began operations, striving for harmony with the surrounding natural environment. Biodiversity conservation activities promoted by Idemitsu, 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.

We are assessing nature-related dependencies, impacts, risks, and opportunities using the LEAP approach recommended by the TNFD. We will disclose our implementation status in due course.

● Overview of the LEAP approach and its implementation status

As an initial assessment, we used ENCORE ^*, an online tool that can analyze the dependency on and impact on nature for each business process, to understand the points of contact between our Group's businesses and nature. In terms of dependency on nature, the following businesses were assessed as having an importance level of "High" or higher: crude oil transportation, coal mining, thermal power generation, solar power generation, wind power generation, biomass power generation, geothermal power generation, Advanced materials & Performance Chemicals manufacturing. In terms of impact, all businesses had items rated as having an importance level of "High" or higher, confirming that our Group's businesses have a deep connection with nature.
Considering these results and sales scale, we have recognized Petroleum business and coal business as high priority businesses and have begun an analysis using the LEAP approach. This time, the analysis was focused on direct operation bases, but in the future, we would like to consider analysis methods and expand the scope to upstream and downstream. In addition, since our group operates coal mines, the analysis this time includes coal mining at operating mines.

● Overview of our Group's business dependence on and impact on nature (ENCORE assessment results)

In order to identify sensitive locations that are considered to be ecologically sensitive, we analyzed the proximity to areas important for biodiversity and physical water risks. In terms of proximity to areas important for biodiversity, there are no sites close to IUCN protected areas of category Ia (strictly protected areas), Ib (wild wilderness areas), III (natural monuments), or World Heritage sites, but there are sites located within a 5km radius of IUCN protected areas of category II (national parks), Ramsar sites, and KBAs ^*1. In terms of physical water risks, no sites were assessed as having "High" or "Extremely High" water stress in the assessment using the Aqueduct Water Risk Atlas ^*2. We plan to select material locations with significant nature-related dependencies, impacts, risks, and opportunities based on the results of the Evaluate and Assess phases, and identify priority areas.

● Overview of priority regions and implementation status

● Indicators and tools used to analyze sensitive locations

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

● Water stress assessment results

In order to identify nature-related risks and opportunities, it is first necessary to understand the dependency and impact on nature. In the Evaluate phase, we first used ENCORE to organize the dependency and impact for each process. Next, we investigated the status of the processes and bases in which our group operates and identified the dependency and impact. We also organized the status of related initiatives.

● Steps for evaluation

● Summary of the main nature dependency and impacts of each business

Petroleum Business

Coal Business

● Major initiatives related to each business

※詳細はLEAPアプローチ関連情報＞事業の自然への依存とインパクト・関連する取り組みをご覧ください。 
※GHGに関する取り組みについては、カーボンニュートラル、気候変動対応をご覧ください。

Based on the dependency on nature, impacts, and related initiatives we have compiled, we will identify risks and opportunities, and if necessary, work to improve countermeasures and set targets. In addition, because it is important to have a bird's-eye view of the value chain when identifying dependency on nature, impacts, risks, and opportunities, and when implementing countermeasures, we will also consider analyzing upstream and downstream.

Preventing ecosystem disruption caused by invasive species transmitted via ballast water (Petroleum business)

We are working to prevent ecosystem disruption caused by invasive species in accordance with the Ballast ^Water Management Convention (International Convention for the Control and Management of Ships' Ballast Water and Sediments), an IMO guideline that came into force on September 8, 2017. All of Idemitsu Tanker Co., Ltd.'s managed ships (Very Large Crude Oil Carrier) are equipped with ballast water treatment systems that use electrolysis or filters and chemicals. In order not to disrupt the ecosystems of the waters around ports, the seawater loaded as ballast water when leaving port is treated with this treatment system to kill or remove harmful aquatic organisms and pathogens in the water.

Rehabilitation of coal mined sites (coal business)

Coal mining operations extract coal that is buried underground, and in the case of open pit mining, the topsoil is scraped away, at which point it has a negative impact on biodiversity. Therefore, we carry out activities (rehabilitation) to restore biodiversity by returning the topsoil after mining and planting the same types of plants as in the original state, thereby minimizing the impact on the surrounding environment. Our Australian coal mines disclose information such as the area they have excavated and the area they have rehabilitated, and we will continue to do so.

● Rehabilitation of mining sites

● Rehabilitation implementation status of Australian coal mining site (Bogabrai) (unit: ha)

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 plants and animals living in green spaces on the premises (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" green space on the premises (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.

Protecting the rare species "Mizo Koju" (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.

[Engagement with local communities]

Hosting of the nature experience event "Idemitsu Living Creatures Research Team" (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 cherry blossoms on Refinery open to the public (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 Forest" 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 Forest 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.).

Participating in the "Connecting Lives Project" (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.

Participating in volunteer work to maintain 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.

Participating in the "Town, Forest and Water Exchange Event" (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 receiving the highest ranking (Superlative Stage) out of five in the Social and Environmental Green Evaluation System (SEGES) run by the Organization for Landscape and Urban Green Infrastructure.
In addition, Aichi Complex has been certified as the highest-ranking SEGES facility since 2016, and in recognition of its significant contributions to enhancing the value of green spaces, it has been certified as a "Green Hall of Fame" in 2023. Specifically, the facility has been highly praised for its efforts to improve the forest cycle within the green belt by removing invasive species, replacing them with native species, and forming canopy gaps, as well as its efforts to regenerate ecosystem networks in collaboration with government and students. This is the 10th corporate green space in Japan to be certified as a "Green Hall of Fame," and the first for a Japanese Refinery.

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)."