Idemitsu Group's materiality (key challenges)
Idemitsu Group's materiality (key challenges)
Concept of materiality (key challenges)
Through our business activities, we aim to achieve sustainable growth as a company while realizing a sustainable global environment and society.In accordance with our 2030 Basic Policy, we are working to address materiality (key challenges) ①Contributing to a carbon-neutral, circular economy and ②Contributing to local communities (energy and mobility) which are social issues to which the Group will contribute; ③Maximize employee growth and engagement and ④Expanding DE&I which are key issues in achieving these goals; ⑤Accelerating digital transformation and ⑥Evolving governance which form the foundation of our Group's activities; and ⑦Thorough commitment to health, safety, compliance, and human rights protection, which is materiality (key challenges) requirement for these.
● Image of the relationship between the 2030 Basic Policy and materiality (key challenges)
materiality (key challenges) list
| Materiality | KPI/monitoring indicators |
Main related SDGs |
|||
|---|---|---|---|---|---|
| Item | FY2024 results | Targets | |||
| ① |
Contribute to carbon neutrality /circular society |
CO₂ reduction amount (Scope1+2) Compared to 2013 |
▲19.2% (compared to 2013) |
▲46% (FY2030) Carbon neutrality (FY2050) |
|
| Contribute to Scope 3 |
Carbon Intensity ▲0.6% (compared to 2020) |
▲10% (FY2030) ▲50% (FY2040) |
|||
| Investments / business strategy |
CN investment: 41.9 billion yen Growth investment: 60.5 billion yen |
Approximately 800 billion yen (until fiscal year 2030) Approximately 550 billion yen (until fiscal year 2030) |
|||
| ROIC, targeted earnings |
ROIC 6.0% (excluding inventory impact) Operating profit + equity profit (excluding inventory impact) 214.7 billion yen |
7% (FY2030) 270.0 billion yen (FY2030) |
|||
| ② |
Contribute to regional society(energy and mobility) |
Investments / business strategy |
CN investment: 41.9 billion yen Growth investment: 60.5 billion yen |
Approximately 800 billion yen (until fiscal year 2030) Approximately 550 billion yen (until fiscal year 2030) |
|
| Number of customers | Approximately 6,000 domestic service stations | - | |||
| ③ |
Maximize employee growth andengagement |
Idemitsu Engagement Index | 70% | 80% or more (FY2030) |
|
| Investments in training per employee | 55,000 yen | 100,000 yen (FY2030) | |||
| ④ |
Expanding DE&I
|
Female recruiting ratio | 38.7% (Total of new graduates and mid-career hires, including those who graduated from university or above, hired between April 1, 2024 and March 31, 2025) | 50% or more (FY2030) |
|
| Female ratio in managerial positions | 4.6% (as of March 31, 2025) | 10% or more (FY2030) | |||
| Male ratio taking childcare leave | 92% | 100% (FY2030) | |||
| ⑤ |
Acceleration of digital innovations
|
DX investment | 2.5 billion yen | - |
|
| Enhancement of productivity | Company-wide efforts are ongoing to support business structure reforms | 30% (FY2025) | |||
| ⑥ |
Progress in governance
|
Effectiveness of the Board of Directors | In addition to the questionnaire, all executives (both internal and external) were individually interviewed by a corporate lawyer familiar with the company's business situation. | - |
|
| ⑦ |
Ensure the health, safety, compliance andhuman rights |
Management health indicators | Health checkup attendance rate: 100% | 100% |
|
| Safety indicators (# accidents, etc.) |
Serious accidents: 0 Fatal accidents: 0 at our company, 1 at a partner company |
0 | |||
| Major compliance violations | 1 item | 0 | |||
| Human rights due diligence | Human rights violations: 0 | 0 | |||
Relationship between materiality (key challenges) and SDGs
As a member of the international community, our group aims to contribute to achieving the SDGs. The 17 goals of the SDGs are interconnected, and our group's activities are particularly relevant to both areas that can contribute to achieving the goals and areas that need to be addressed because they may pose a burden through our business activities. recognizing.
Our group will advance technological development and put it into practice through our business in order to promote initiatives to minimize or eliminate the burden on social issues.
Areas that can particularly contribute to goal achievement
Areas that require attention as they may cause a load
Materiality (key challenges) identification process
The Group first identified materiality in 2019, recognized important social issues for the Company, and has been working on its business activities. While placing emphasis on continuity from those, and taking into account Medium-term Management Plan (FY2023-2025), Vision for 2050, and changes in the external environment, the Group is reviewing materiality in 2022, setting KPIs and monitoring indicators, and implementing a sustainability strategy.
2019
-
- StepIdentification of the issues
- Referring to international guidelines, SDGs, and evaluation items from ESG rating agencies, we identify environmental and social issues that may be related to our business activities and through them.
-
- StepConfirmation of their importance to stakeholders
- Conducted a survey of various stakeholders and evaluated the importance of each issue to internal and external stakeholders
-
- Step Alignment with company-wide strategy
- Ensure consistency with Medium-term Management Plan and verify the priorities and appropriateness of issues
-
- Step Discussion and decision at management level
- The final decision will be made after discussions at Management Committee chairperson by the President.
2022
-
- StepOrganization of issues and linking them to Idemitsu’s initiatives
-
- 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)
-
- StepLink businesses and initiatives to issues
- From a double materiality perspective, we map linked environmental and social issues and weight each impact.
-
- Step dialogue with Stakeholders
- Based on the mapping results, we will hold dialogue with institutional investors and external experts to confirm the validity of their expectations and challenges for our group.
-
- Step Discussion and decision at management level
- The final decision will be made after discussions at Management Committee chairperson by the President.
2019
2019
2019 2019
-
- StepIdentification of the issues
- Referring to international guidelines, SDGs, and evaluation items from ESG rating agencies, we identify environmental and social issues that may be related to our business activities and through them.
-
- StepConfirmation of their importance to stakeholders
- Conducted a survey of various stakeholders and evaluated the importance of each issue to internal and external stakeholders
-
- Step Alignment with company-wide strategy
- Ensure consistency with Medium-term Management Plan and verify the priorities and appropriateness of issues
-
- Step Discussion and decision at management level
- The final decision will be made after discussions at Management Committee chairperson by the President.
2022
2022
2022 2022
-
- StepOrganization of issues and linking them to Idemitsu’s initiatives
-
- 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)
-
- StepLink businesses and initiatives to issues
- From a double materiality perspective, we map linked environmental and social issues and weight each impact.
-
- Step dialogue with Stakeholders
- Based on the mapping results, we will hold dialogue with institutional investors and external experts to confirm the validity of their expectations and challenges for our group.
-
- Step Discussion and decision at management level
- The final decision will be made after discussions at Management Committee chairperson by the President.