Idemitsu Group's materiality (key challenges)
Concept of materiality (key challenges)
Our group reviews its key challenges (materiality) in line with the formulation cycle of Medium-term Management Plan, from the perspective of sustainability and enhancing corporate value.
In our Medium-term Management Plan (FY2026-2030), we have identified eight material issues, organized from the perspectives of business, environment, society, and governance, taking into account changes in the materiality environment and social issues, and we are working to address these issues.
materiality (key challenges) list
| Materiality | Key points for identifying materiality | |
|---|---|---|
| Thorough implementation of safe operations and stable supply |
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In light of the growing societal demand for energy and materials security and strengthened supply chains amidst rising geopolitical risks, we have clearly positioned "ensuring safe operations and stable supply" as a key challenges in our social mission. |
| Deepening existing businesses |
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In addition to an ESG perspective, we emphasized the linkage with business strategy and added "deepening existing businesses" and "creating growth businesses" in line with GRIT and GROWTH. |
| Creating growth businesses |
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| Harmony with the global environment |
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Based on Vision for 2050, "Shaping Change" we will continue to promote initiatives that are mindful of harmony with the environment. |
| Achieving sustainable growth for individuals and organizations |
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Reflecting the new medium-term plan's human resources strategy story, we have unified our focus on the human resources area, aiming to "achieve sustainable growth for people and organizations," and clarified the human resources foundation that will support our transformation. |
| Accelerating digital transformation |
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Considering the impact of DX/AX on corporate competitiveness in the medium to long term, we will once again position "accelerating digital transformation" as key challenges and promote it. |
| Deepening governance |
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Given the increasing importance of management decisions and risk management that significantly impact medium- to long-term sustainability, we will enhance our ability to respond to uncertainty through "deepened governance." |
| Thorough emphasis on health, human rights, and compliance |
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As a prerequisite for supporting "People-Centered Management," we will continue to uphold "thorough commitment to health, human rights, and compliance" as the foundation of our company, in order to thoroughly implement health management, respect for human rights, and actions based on high ethical standards throughout the entire group. |
Materiality (key challenges) identification process
At our company, we have established Corporate Sustainability Office within the Corporate Planning Department as a dedicated organization for sustainability. This office regularly identifies sustainability-related risks and opportunities across our group's business segments and value chain, and conducts materiality assessments. materiality assessment is based on the concept of "double materiality * We conduct our research from the perspective of "[...] and for each risk, we take into account future business environment assumptions based on scenario analysis, and extract materiality based on three elements: (a) financial impact, (b) likelihood of occurrence, and (c) short-term, medium-term, and long-term time axes, through interviews with external experts and discussions at management meetings.
*This approach examines the importance of environmental and social issues from both the perspective of their financial impact on a company (financial materiality) and the impact of corporate activities on environmental and social issues (impact materiality).
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- StepOrganization of issues and linking them to Idemitsu’s initiatives
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- List environmental and social issues with reference to sustainability-related goals and guidelines (GRI standards, SASB, SDGs, ISO26000, etc.)
- Organize the relationship between current business/initiatives and the above environmental/social issues (extract those that are related from both positive and negative perspectives)
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- StepLink businesses and initiatives to issues
- From a double materiality perspective, we map linked environmental and social issues and weight each impact.
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- Step dialogue with Stakeholders
- Based on the mapping results, we conducted dialogue with external experts to confirm the validity of their expectations and challenges for our group.
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- Step Discussion and decision at management level
- The final decision will be made after discussions at Management Committee chairperson by the President.