Partnership
Basic approach
The Idemitsu Group, which operates businesses both domestically and internationally, considers various risks and countermeasures during normal times as part of its supply chain management (SCM) to maintain its supply chain.
Policy
In June 2022, we announced the "Partnership Building Declaration" declaring that we will build new partnerships by promoting collaboration and co-existence and co-prosperity with our supply chain business partners and businesses that aim to create value. did.
We will continue to work together with our partners to contribute to the realization of a sustainable society throughout the supply chain.
Idemitsu Partnership Building Declaration
Our company has declared that it will focus on the following items in order to build new partnerships by promoting cooperation and coexistence and co-prosperity with all of our supply chain business partners and businesses that aim to create value. Masu.
1. Coexistence and co-prosperity across the entire supply chain and new collaboration that transcends scale and affiliated companies
By reaching out to business partners through direct business partners (from "Tier N" to "Tier N+1"), we are working to improve added value throughout the supply chain, as well as improving existing business relationships and company size. We aim to build coexistence and co-prosperity with our business partners through collaboration that transcends boundaries.
(Individual items)
〇Work on collaboration between companies using open innovation and joint development of decarbonization and low-carbon technologies.
2. Compliance with “promotion standards”
Comply with desirable trade practices between parent businesses and subcontractors (“promotion standards” based on the Subcontracting Small and Medium Enterprise Promotion Act), and proactively correct trade practices and business practices that impede building partnerships with business partners. I'll work on it.
① Price determination method
We will not make unreasonable requests for cost reductions. When determining transaction consideration, we will respond to requests for consultation from subcontractors and fully discuss them to ensure that appropriate profits of subcontractors are included, such as taking into account the impact of increases in labor costs. . When concluding a contract, including determining the transaction consideration, the parent business entity will clearly state and issue the terms of the contract in writing.
② Payment terms for bills, etc.
Subcontract fees will be paid in cash. You don't pay by bill.
③ Intellectual property/know-how
We conduct transactions based on guidelines and contract templates regarding intellectual property transactions, and do not require the conclusion of unilateral confidentiality agreements, the disclosure of know-how using our position in transactions, or the free transfer of intellectual property rights. not.
④ Wrinkling due to work style reform, etc.
In order to enable our business partners to respond to work style reforms, we do not place orders with subcontractors with short delivery times or make sudden changes to specifications without incurring appropriate costs. In the event of a disaster, etc., we will not impose a unilateral transaction burden on subcontractors, and when business resumes, we will do our best to maintain business relationships.
3. Others
We have established a "Sustainability Policy" and work together with our partners to contribute to the realization of a sustainable society throughout the supply chain.
Idemitsu Kosan Co., Ltd.
President and CEO
Shunichi Kito
Governance
Initiatives
Collaboration with dealers
President Kito giving a speech at the 2024 dealers Joint Meeting
We work with over 1,000 dealers nationwide, forming a strong network through approximately 6,000 service station (SS) and developing each business. dealers and our company are working to improve communication by utilizing the portal site "apollostation Portal." In addition, the "National Apollo Association," which is made up of dealers nationwide, is also working together in the field of social contribution, such as promoting local contributions and revitalization.
Going forward, we will continue to strengthen the knowledge and skills acquisition of our staff by establishing our own qualification and training systems, in order to increase customer trust in our group's technology and services, and to continue to be sensitive to customer needs and create new added value.
Main unique qualification certification system
[Idemitsu Technical Master System]
This is a qualification system aimed at developing human resources who can put into practice comprehensive energy proposals that meet customer in the field of industrial Petroleum and lubricant sales.
● Number of people certified in 2023 (unit: person)
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*The number of people promoted or certified in each department from 2009 to 2023 includes the total number of people.
[Apollo Royal Manager Program]
Royal Manager Program is a system to develop "store management professionals'' who will be responsible for managing SS and stores in a new era.
● Cumulative number of certified individuals as of the end of June 2024 (unit: person)
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Collaboration with partner companies
Refineries / Complexes outsource plant maintenance work and product import/shipment work to many partner companies. Under the Idemitsu Safety Council, each subcontractor belongs to three cooperative associations organized by industry (Construction Maintenance Cooperation Association, Land Transportation Cooperation Association, and Marine Transportation Cooperation Association) and works together with our company to carry out safety activities. We are working on this.
At Chiba Complex Construction Maintenance Cooperation Association, our employees go to the construction site with their supervisors to confirm the safety of the construction environment, and also encourage workers from partner companies to work safely with the slogan "Be safe!" We are conducting a "Sympathetic Voice for Friends Campaign'' to raise awareness.
The Land Transport Cooperation Association holds regular meetings with the managers of each transport company to share their concerns and requests, and to make improvements that will lead to safe cargo handling.
The Maritime Transport Cooperation Association, together with the managers of each shipping company, conducts safety patrols of cargo handling equipment, focusing on identifying sources of danger and nipping them in the bud.
Collaboration with shipping and shipping companies
Initiatives to maintain the supply chain
In order to supply Petroleum, which is an important infrastructure for people's lives, our group will take all necessary measures, such as building mutual support systems with other companies and strengthening relationships with group companies and partner companies, regardless of normal times or emergencies. , ensuring the maintenance of the supply chain.
Collaboration with shipping and shipping companies
The transportation of our petroleum products is handled by land and sea contract transportation companies. Contract transportation companies have organized safety councils for sea and land, with the aim of promoting safety and strengthening cooperation between companies, and we participate in these activities as a special member. On land, the 31 contract transportation companies responsible for transportation by tanker Koun-kai carry out safety campaigns, training sessions for operation managers, and awards for crew members with no accidents or violations. ISG Marine Environment Safety Council, which is made up of 10 shipping companies that use coastal tankers for maritime transport, conducts safety campaigns, thoroughly enforces safety activity policies and specific measures, and disseminates good and dangerous examples.
Our company aims to build a competitive logistics system while placing emphasis on safety activities rooted in the field. In addition to raising awareness through both councils, we also listen to the voices and opinions of lorry crews and tanker crews who are actually involved in safe transportation, and use this information to improve the working environment.
Strengthening cooperation with Koun-kai, which supports safe land transport and stable supply of petroleum products
The land transport safety promotion council "Koun-kai", consisting of 31 lorry contract transport companies, held a general meeting on May 9, 2024 and approved this year's key issues and activities based on the accident and trouble trends in fiscal 2023. Following the general meeting, our company awarded outstanding drivers who have achieved no accidents or violations for more than 15 years, and transport companies that achieved no accidents in fiscal 2024, and praised their achievements. In addition, as one of our activities, we hold a "safety campaign" during the summer when demand is high and the weather is harsh, and during the year-end and New Year holidays. At the "Summer Safety Campaign" held in July 2024, our company officials gave encouraging speeches to transport company officials at the kickoff at 41 venues nationwide.
Strengthening cooperation with ISG Marine Environment Safety Council for safe transportation and stable supply at sea
ISG Marine Environment Safety Council which is made up of 10 shipping companies promoting maritime transport safety, held its annual general meeting on March 28, 2024, and confirmed its basic policy and activity schedule for preventing accidents. In addition, the council holds accident-free campaigns every year during dense fog, when the risk of accidents is high, and at the end of the year and New Year period. In the "Dense Fog Accident-Free Campaign," which was held over a two-month period starting May 15, 2024, representatives from our company and the council companies gathered and declared that they would work together to achieve zero accidents and zero disasters. We will support the council's safety activities and work together to ensure the safe operation of our coastal tanker fleet and the stable supply of petroleum products.
Collaboration with partner companies
We cooperate with partner companies in various industries at home and abroad to develop our business by establishing joint ventures or launching projects. In Japan, we have established a joint venture in the Basic Chemicals business and started collaboration with Japan Grease Co., Ltd., and are engaged in discussions on R&D collaboration, product portfolio optimization, sales channels, and technical exchanges. Overseas, Nison Refinery Petrochemical Limited (NSRP), a joint venture in Vietnam, operates Nghi Son Refinery. Advanced materials & Performance Chemicals In our business, we have established Formosa Petrochemical Corporation (FPCC) in Taiwan and Idemitsu Formosa Specialty Chemicals to commercially produce hydrogenated petroleum resins.
Solar Frontier signs business matching agreement with Chiba Bank
Business matching image diagram
Solar Frontier Co., Ltd. and Chiba Bank, Ltd. entered into a business matching agreement in October 2020. This will allow us to introduce Solar Frontier to customers who have needs to promote environmental management and improve profits through the introduction of renewable energy. By introducing a self-consumption solar power generation system, you will not only increase your corporate value by using renewable energy, but you will also be able to use the electricity generated by your solar cells in your own equipment without selling it, which will reduce your electricity bill. can be reduced. In the future, we will propose total solutions for decarbonization, including solar power generation systems tailored to each customer, to an even wider range of customers.
Exchange and dialogue with oil-producing countries
Interactions with oil-producing countries in 2024
In order to build strong relationships of trust with oil-producing countries, particularly those in the Middle East, we have established representative offices in those countries and are promoting exchanges and dialogue.
Furthermore, in recent years, we have been strengthening our relationships of trust with oil-producing countries by engaging in joint ventures through capital participation, etc. With the support of JCCP (Japan Cooperation Center, Oil, Gas and Sustainable Energy), we dispatch experts to oil-producing countries and accept managerial candidates and engineers in Japan, thereby cooperating with oil-producing countries in human resource development and technical support.
In 2023, we accepted training participants and dispatched experts from the United Arab Emirates, Qatar, and Oman.
Through these activities, we are promoting further collaboration with national oil companies in each oil-producing country in crude oil procurement, and are agilely and flexibly selecting, procuring, and transporting the crude oil that will optimize the performance of our Refinery in response to market trends.
Industry-academia collaboration
Participation in Chuo University Graduate School Work-Life Balance & Diversity Promotion/Research Project
Our company has been participating in the "Chuo University Work-Life Balance & Diversity Promotion and Research Project" since 2020. This project was launched in 2008 with the aim of conducting research and exchanging information on specific initiatives aimed at achieving work-life balance and creating a workplace and society where diverse human resources can demonstrate their abilities. We collect information on companies that are making advanced efforts in work-life balance, work styles, and promoting DE&I, and utilize this information to promote internal DE&I through advice from experts and exchanges with other companies.