Idemitsu Group's materiality (key challenges)
Idemitsu Group's materiality (key challenges)
Concept of materiality (key challenges)
We are aiming for continuous growth as a company while realizing a sustainable global environment and society through our business activities. We are working on seven materialities (key challenges) in line with our Basic Policy for 2030: “contribute to carbon neutrality / circular society” and “contribute to regional society (energy and mobility)” (social challenges to which our Group is contributing), “maximize employee growth and engagement” and “expanding DE&I” (challenges we are focusing on to achieve the first two materialities (key challenges)), “acceleration of digital innovations” and “progress in governance” (the foundation of our Group’s activities), and “ensure the health, safety, compliance and human rights” (basic requirements).
●Image of the relationship between the 2030 basic policy and materiality (key challenges)
List of materiality (key challenges)
| Materiality | KPI/monitoring indicators |
Main related SDGs |
|||
|---|---|---|---|---|---|
| Item | FY2023 Results | Targets | |||
| 1 |
Contribute to carbon neutrality /circular society |
CO₂ reduction amount (Scope1+2) Compared to 2013 |
▲14.6% (compared to 2013) |
▲46% (FY2030) Carbon neutrality (FY2050) |
|
| Contribute to Scope 3 |
Carbon Intensity ▲1.1% (compared to 2020) |
▲10% (FY2030) ▲50% (FY2040) |
|||
| Investments / business strategy | Designated 4 key areas for investment towards CN in 2050 | Carbon neutrality investment: Approx. 800.0 billion yen (Reviewed our FY2023-2030 strategic investments based on a timeline) | |||
| ROIC, targeted earnings |
ROIC: 8.4% (excluding inventory impact) Operating + equity income (excluding inventory impact): 310.6 billion yen |
7% (FY2030) 270.0 billion yen (FY2030) |
|||
| 2 |
Contribute to regional society(energy and mobility) |
Investments / business strategy | Designated 4 key areas for investment towards CN in 2050 | Carbon neutrality investment: Approx. 800.0 billion yen (Reviewed our FY2023-2030 strategic investments based on a timeline) |
|
| Number of customers | 6,000 domestic service stations | - | |||
| 3 |
Maximize employee growth andengagement |
Idemitsu Engagement Index | 70% (FY2024 actual result) | 80% or more (FY2030) |
|
| Investments in training per employee | 52,000 yen | 100,000 yen (FY2030) | |||
| 4 |
Expanding DE&I
|
Female recruiting ratio | 47.3% (Total of graduates and above hired between April 1, 2023 and March 31, 2024, new graduates and career hires) | 50% or more (FY2030) |
|
| Female ratio in managerial positions | 4% | 10% or more (FY2030) | |||
| Male ratio taking childcare leave | 93% | 100% (FY2030) | |||
| 5 |
Acceleration of digital innovations
|
DX investment | 2.25 billion yen | - |
|
| Enhancement of productivity | Implementing company-wide initiatives to support business structure reforms | 30% (FY2025) | |||
| 6 |
Progress in governance
|
Effectiveness of the Board of Directors | In addition to the questionnaire, for the first time, all outside directors were interviewed individually by a corporate lawyer who is 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.) |
Number of serious accidents: 0 Number of fatal accidents: 0 at Idemitsu and 1 at partner companies |
0 | |||
| Major compliance violations | 0 | 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
Our group identified materiality for the first time in 2019, recognized social issues important to us, and have been working on our business activities. While emphasizing continuity from these, we will review materiality in 2022, taking into account Medium-term Management Plan (2023-2025), Vision for 2050, and changes in the external environment, and set KPIs and monitoring indicators to implement a sustainability strategy. doing.
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
- Verify the priority and validity of issues by aligning with Medium-term Management Plan
-
- Step Discussion and decision at management level
- Final decision is made after discussions at the management committee chaired 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
- Mapping linked environmental and social issues from a double materiality perspective and weighting each impact
-
- Step Dialogue with stakeholders
- Based on the mapping results, we held dialogues with institutional investors, external experts, etc., and confirmed the validity of expectations and issues for our group.
-
- Step Discussion and decision at management level
- Final decision is made after discussions at the management committee chaired 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
- Verify the priority and validity of issues by aligning with Medium-term Management Plan
-
- Step Discussion and decision at management level
- Final decision is made after discussions at the management committee chaired 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
- Mapping linked environmental and social issues from a double materiality perspective and weighting each impact
-
- Step Dialogue with stakeholders
- Based on the mapping results, we held dialogues with institutional investors, external experts, etc., and confirmed the validity of expectations and issues for our group.
-
- Step Discussion and decision at management level
- Final decision is made after discussions at the management committee chaired by the president.