Human capital strategy

Considering our human capital strategy, the fundamental value is that our diverse human resources demonstrate their individuality and grow through their work. To achieve our Vision for 2050, “A strong and flexible team that can shape the future, no matter what the future has in store,” we are implementing various measures that are linked to each of the three perspectives: embodying the Management Philosophy / Vision, expanding DE&I, and bringing out the full potential of each individual.
The path to advancing our business structure reforms that we are pursuing has many variables, and optimal solutions are hard to find. Even in such a situation, it is extremely important to develop as many those human resources who take on challenges without fearing failure and who embody the Management Philosophy, “Truly inspired.” as possible. We would like to remain a group where a team of diverse human resources works as one to achieve something.

●Three pillars of human resources strategy

Declining domestic demand for core products has been a long-standing issue, and in 2019, Idemitsu Kosan and Showa Shell Sekiyu merged in an effort to break the chronic oversupply of the industry. The personnel system and Action Mindset were formulated and established under the policy of establishing a new concept rather than leaning heavily on either company's system at the time of the merger. However, the terminology used in Action Mindset and other documents was so generic that it did not reflect the company's unique values, and evaluation criteria were often unclear.
Therefore, based on Management Philosophy "Truly inspired," which was formalized in April 2021, we have established new Action Mindset.
Based on this Action Mindset, we will revamp our personnel system, aiming to have employees embody Management Philosophy through their daily work and achieve sustainable growth.

●New Action Guideline

Our KPIs and intermediate indicators for human capital management are shown in the diagram below.
This KPI is also linked to the seven materiality (priority issues) that the Group has identified as social issues to which it will contribute in accordance with its 2030 Basic Policy.
This time, we have established a new intermediate indicator, the "Idemitsu Growth Score," which will lead to improvements in the Idemitsu Engagement Index.
Idemitsu EI, which discloses its current status, will continue to disclose its results as a goal indicator, and will track the Idemitsu Growth Score, which is a leading process that leads to the improvement of Idemitsu EI and an intermediate indicator for achieving urgent important organizational challenges, as an important management indicator, and will create a movement for improvement among all employees.We believe that this initiative will ultimately lead to the growth of existing businesses.

●Our KPIs and intermediate indicators

Holding townhall meeting

In fiscal 2024, we held two company-wide townhall meeting (THMs) (June and November) as a hybrid of in-person and online sessions to provide a forum for direct dialogue between management and employees. Including viewing of recordings, a total of approximately 5,000 people participated. Idemitsu Employee Association a dedicated organization independent of the company, is responsible for planning and running these meetings, providing proposals and dialogue to management on behalf of employees. In June, management explained the current business situation and future strategic direction, leading to an active Q&A session with employees. Based on this, opinions were collected at each department and office level, and based on the results of a engagement survey, we explored current company-wide issues and presented recommendations to management at the November THM. In April, management provided a company response along with concrete actions, and we are now moving into the implementation phase of specific measures to resolve these issues. In parallel with these company-wide THMs, we also regularly hold THMs at each Complex and department, and through this mutual exchange, we strive to enhance a sense of unity and a desire to contribute as a company. Idemitsu Employee Association will continue to make proposals and engage in dialogue at THM, and in fiscal 2025, as a new initiative, it plans to make proposals for various systems (revisions to existing systems and proposals for new systems) and engage in internal and external communication activities initiated by employees.

Human Gallery Reopening

The Idemitsu Kosan Human Gallery, which communicates our company's philosophy and history, reopened in October 2024 on the 8th floor of the SI Building Aoyama (1-3-6 Kita-Aoyama, Minato-ku, Tokyo). The gallery displays valuable historical documents that tell the story of our company's history over the past 100 years, as well as introducing our current business ventures. The gallery has been highly praised by many visitors, including employees and shareholders, with approximately 800 people visiting in the past six months. We will continue to deepen our interactions with people both inside and outside the company, and evolve as a place to communicate our company's mission and history.

With the key message of "Let's create the future of the company," we established the Idemitsu Employee Association, in April 2024. The purpose of the Idemitsu Employee Association is to create a "place" where all employees can proactively participate in discussions to create "a better company and a better organizational culture," and to foster a sense of participation in management through activities that transcend existing relationships such as department, generation, and hierarchy, leading to the autonomous growth of each individual.
At our company, each employee plays a key role. We encourage employees to think and communicate freely, develop policies to foster an OFA (Open, Flat, Agile) culture, and promote individual growth, and work to change the company for the better.

Structure and characteristics of Idemitsu Employee Association
・ An organization independent of the company, with a dedicated director (person in charge) planning and managing activities
・All employees participate in activities
・ Consolidate existing activities (dialogue with management, various roundtable discussions, interdepartmental exchange projects, engagement surveys, etc.)
・Representatives from each workplace (activity promotion committee members) promote workplace activities

・ Appointing a full-time director requires a lot of work. It is now even easier to gather opinions and make recommendations from across the company
・ Because the employee association is independent from the company, Allows for independent activities for employees
・ Because employee association activities include those in senior positions, Proposals that reflect the voices of those in senior positions are also possible