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IDEMITSU GROUP
Corporate Social Responsibility Report 2011
Management Philosophy
Principles of Management
Since its establishment, Idemitsu has practiced the concept of respect for human beings in the conduct of business, and has sought to meet the high expectations of society and to earn its trust. In order to realize this ideal, the Company strives to do the following: to play a beneficial role in society by creating an environment where people trust each other and work together to realize through business the tremendous potential of human beings; to ensure that each employee develops into a reliable person and is respected in society, while upholding our vision and high ideals and engaging in mutual improvement through amicable competition, and; to attach great importance to our promises to customers and seek to be worthy of the trust vested in us by unfailingly fulfilling those promises.
Valuing respect for human beings, Idemitsu works toward a sustainable society.
The origins of Idemitsu date back to 1911 when Sazo Idemitsu started a lubricant sales company called Idemitsu Shokai in the town of Moji in Kita Kyushu City, Fukuoka Prefecture. After World War II, the Company became a designated primary oil distributor. Ever since, Idemitsu has continued to conduct business under the mission of ensuring the stable supply of energy and marked its 100th anniversary in 2011. Founder Sazo Idemitsu believed that the reason of existence of a business lies in its contribution to the nation and society and that making such a contribution is the key enabler for joint and sustainable growth of the business itself and the nation and society. He left many writings to instill this thinking in Idemitsu employees. Among these, his words of wisdom collectively summarized as the Principles of Management, Management Policies and Action Guidelines serve as the management philosophy of the Idemitsu Group. For the Group, corporate social responsibility (CSR) activities mean to remain true to the Principles of Management and strive to fulfill stakeholders commitments as depicted in the Management Policies, with employees acting in accordance with the Action Guidelines to unfailingly perform their respective roles.
Management Policies
Creation and provision of new value to customers We provide products, technologies and services that give customers a strong feeling of assurance, greater vitality and absolute satisfaction, as we strive to create new value. Contribution to society and the environment We make safety the cornerstone of business and strive to preserve and improve the natural environment. We also contribute to communities, culture and society. Assuring returns to shareholders We fulfill our corporate social responsibilities, strive for sound, sustainable growth and endeavor to generate stable returns for shareholders. Cooperation with partners We secure the confidence, greater vitality and absolute satisfaction of our customers through cooperation with the retail outlets of service stations and others involved in our businesses, and aim to share the results as well as the success. Pursuit of employees growth and self-realization We create a work environment in which each employee can pursue his or her own growth and self-realization. We also make every effort to ensure that each employee is respected.
Action Guidelines
Customers first Consider how customer satisfaction can be attained and act accordingly. Sense of ethics Maintain high ethical principles and act sincerely and fairly. Accepting challenges Exercise originality and ingenuity through flexible views and ideas, and consistently meet the challenge of high-speed innovation. Consensus and cooperation Devote effort to thorough discussion and work as one to implement conclusions. Autonomy Accomplish assigned tasks with responsibility and pride. Broad-mindedness and employee development Strive to create a broad-minded corporate culture for mutual growth. Harmony with communities Contribute to the development of local communities as a good corporate citizen.
Editorial Policy
This report was created for the purpose of disclosing mainly non-financial information concerning the activities of the Idemitsu Group. Upon developing this report, efforts are made to provide quantitative data to the extent possible and clarify activities and improvements in each field by implementing the PDCA (plan-do-check-act) cycle. Up until the previous year, we had shown a progress chart of medium-term targets and results only in the field of the environment. In this years report, the chart also covers the topics related to our social commitment. Financial information is disclosed separately in the securities report, financial statements and annual report.
Reporting period
This report basically covers the Idemitsu Groups performance for the period from April 1, 2010 to March 31, 2011 (fiscal 2010) and also contains information concerning activities conducted before or after this period. In some cases, data regarding overseas Group companies may represent cumulative totals for the period from January 1 to December 31, 2010, and are so designated in the corresponding charts.
Contents
Management Philosophy Editorial Policy Words of Founder Sazo Idemitsu/ Message from the President Special Feature: Great East Japan Earthquake Overview of the Idemitsu Group Corporate Governance Risk Management Safety and Security Compliance Social Commitment Product Responsibility Creating Rewarding Workplace Environments Relations with Stakeholders Environmental Performance Environmental Management Global Warming Prevention Response to Biodiversity Waste Reduction Management and Reduction of Chemical Substances Pollution Prevention
1 2 3 5 7 11 12 13 15
Scope of reporting
The scope of this report basically includes data and activities of Idemitsu Kosan Co., Ltd. and 69 consolidated subsidiaries, including overseas Group companies. Note that the Company and Idemitsu within this report refer to Idemitsu Kosan Co., Ltd., while the Group and the Idemitsu Group refer to Idemitsu Kosan Co., Ltd. and its consolidated subsidiaries.
17 20 26
Regarding figures
Figures indicated in graphs and tables within this report are rounded off and therefore may not exactly match the totals shown.
Guideline references
Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (G3.1) Japans Ministry of the Environment Environmental Reporting Guidelines (2007 version)
The GRI G3.1 Content Index at the back of this report shows where information required to be disclosed is provided under the G3.1 Guidelines.
33 35 39 40 41 42
Publication schedule
Japanese version: Published annually since 2001 (Previous 2010 edition issued in October 2010) English version: Published annually since 2003 (Previous 2010 edition issued in December 2010)
CSR Issues and Goals and Summary of 45 Implementation Status GRI Guidelines G3.1 Content Index Independent Assurance Report About the Cover 49 51 52
Today, hopes for peace and wishes for peoples welfare are becoming universal and growing ever stronger across the world. If that is what everyone wants, why cant we attain peace? Why do we still see confusion, and why is the situation getting worse every year? There must be a fundamental underlying reason. It is time for all of us, as members of the worlds human race, to regain our calmness and ask ourselves why. One thing we must remember when thinking about todays world is that significant advancements in transportation and communications have made the world small in terms of time, whereby we can now travel around the world in just one day. We have more than 100 ethnic groups living on this single planet, and conflict-resolution tactics are obviously no longer effective. We have entered an era in which we must completely reverse our way of thinking. Thats where dotoku comes in. Dotoku, which is often translated as morals, is essentially the spirit of mutual concession and support. In Japan, the word means to help each other and live in harmony together. I have talked with many philosophers, business people and politicians from various parts of the world about this Japanese spirit of mutual concession and support, and none understood the concept correctly.
Instead, they glared at me while shrugging their shoulders and saying that it is an abandonment of ones rights, submissive, the wrong approach and unrighteous. I was shocked at their disdain for the idea of mutual concession and support, which we Japanese naturally uphold and have a high regard for. It is true that we have lost some of the spirit nowadays. We must cultivate the spirit again, quickly return to the way we had been, show it to the world and suggest to people that there is another path toward world peace. What I have just said is a global mission shared among Japanese people. Fortunately, we, Idemitsu People, have walked the path of dotoku for the past 60 years. What we have to do now is to remain on the path, raise our dotoku standards further and set an example domestically. To the world, Japanese people must demonstrate their sense of dotoku. Our longterm goal is to eventually turn dotoku into a word commonly used throughout the world.
Sazo Idemitsu
Founder of Idemitsu
For another 100 years and beyond, we will continue to fulfill our social responsibility through our core businesses.
I would like to express my deep condolences to the victims of the March 2011 Great East Japan Earthquake. I sincerely wish for the swift recovery of the devastated areas. Our refineries and petrochemical plants did not sustain major damage, but the disaster disrupted the supply chain of petroleum products. In the immediate aftermath, disaster victims in the Tohoku region were still enduring a long winter with occasional snowstorms without gas or electricity. Thus, the Idemitsu Group placed the highest priority on restoration of its supply chain and resumption of petroleum delivery to the devastated areas in close collaboration with its distribution partners and retail outlets as well as other primary oil distributors. As you know, petroleum products are made by refining crude oil imported from oil-producing countries in the Middle East. In order to deliver petroleum products from refineries to customers throughout Japan, we must have a supply chain consisting of transport companies undertaking the transportation of petroleum products via ship or tanker truck, companies to which we consign the operation of oil depots that serve as relay stations in the distribution flow and retail outlets operating service stations. The earthquake and tsunami damaged many of our service stations and tanker trucks, and our oil depots located along the Pacific coast became unserviceable due to power failure and damage to facilities. Under such circumstances, our supply chain partners devoted considerable efforts to sustain the supply of petroleum products by fully leveraging what was left intact. At service stations where fuel dispensers were not operating due to power failure, crew used manual pumps and worked all day to supply fuel to vehicles waiting in long lines. From our less-damaged oil depots on the Sea of Japan side, tanker trucks crossed over the unsafe snowy mountains to transport fuel to the disaster areas.
Some of these dedicated crew members and drivers were disaster victims themselves, whose homes were swept away by the tsunami or who lost their families or relatives. Idemitsu dispatched a number of support teams to the disaster areas to control traffic around service stations to avoid confusion and help refueling operations. I went to the affected areas one month after the disaster and had a chance to directly talk with the staff of retail outlets and transport companies. Many remarked that they have come to recognize that the safe and stable supply of petroleum products plays an important role in society, and they feel proud for working to this end. I have always told our employees that corporate social responsibility (CSR) for Idemitsu means to unfailingly fulfill our responsibility of providing oil and petrochemical feedstock safely and stably. Our role has become clearer and more important after the disaster, and I have confirmed that this sense of mission is equally shared among employees, business partners and retail outlets within our supply chain. Idemitsu celebrates our 100th anniversary in 2011. We have reached this significant milestone because society has valued our management philosophy underscored by respect for human beings. Under this management philosophy, we have strived to foster employees capable of earning the respect of society and contribute to society by means of our business, while steadily meeting our social responsibility of ensuring the stable supply of oil and petrochemical feedstock. Remaining true to this founding spirit, we are committed to attaining a sustainable society by continuing to fulfill our CSR obligations for another 100 years and beyond.
Special Feature
We would like to extend our deepest condolences and prayers to the people affected by the Great East Japan Earthquake that occurred in March 2011. We sincerely hope for the quickest possible recovery and reconstruction of the disaster areas. In response to this unprecedented disaster, the Idemitsu Group placed the highest priority on delivering gasoline, kerosene and other petroleum products to the devastated areas. In doing so, we operated our refineries at full capacity and dedicated substantial efforts to speed up recovery of the affected oil depots, emergency transportation from other oil depots located on the Sea of Japan side and restoration of service station operations. This Special Feature section provides details on these activities. Confirming Damage Caused by the Disaster
A massive earthquake of magnitude 9.0, the largest ever recorded in Japans history, hit the Tohoku region at 2:46 p.m. on March 11, 2011. Its seismic center was off the Sanriku coast of the Tohoku region, and the tsunami that resulted from the earthquake swept up areas along the Pacific coast and caused catastrophic damage to a vast stretch of land from the Kanto to Tohoku regions. Within 14 minutes after the earthquake, we set up a crisis management headquarters within the head office and started accounting for Idemitsu employees and their families as well as employees of our retail outlets and other business partners. While doing so, we made efforts to confirm the level of damage to our oil refineries, petrochemical plants, oil depots, branch offices (currently, sales offices) and service stations. As a result, it was confirmed that all of our four refineries and two petrochemical plants were maintaining normal operation. On the other hand, among our oil depots that serve as distribution bases for petroleum products, operations were suspended at the four depots along the Pacific coast from Hokkaido to Ibaraki Prefecture, specifically, Kushiro, Hahchinohe, Shiogama and Hitachi, due to power failure and damage to facilities. Of the 454 Idemitsu service stations within the area covered by the Tohoku Branch Office, only 221 were operational as of March 13. The situation was truly devastating.
Concerted Efforts in the Oil Industry for Recovery of the Supply Chain
The Petroleum Association of Japan (PAJ), an organization for petroleum refining and primary sales companies in Japan, also set up the PAJ emergency task force at 4:00 p.m. on March 11, and began checking earthquake-caused damage in the evening of the same day. Immediately after the disaster, six oil refineries operated by other oil companies in Miyagi, Ibaraki, Chiba and Kanagawa prefectures were shut down, causing a temporary drop in the volume of crude oil processed per day from the normal level of 4 million barrels/day to 2.7 million barrels/ day. Oil companies operated their respective non-damaged oil refineries at maximum capacity to compensate for the decline in volume. As shipment from our oil depots on the Pacific coast side of Japan was suspended, we land-transported petroleum products from other less-damaged oil depots along the Sea of Japan using tanker trucks and drums. We also asked transport companies in western Japan to redirect about 300 tanker trucks to the Tohoku region because many were lost during the disaster. In addition, a 24-hour operation room was set up within PAJ to respond to emergency fuel supply requests from the office of the prime minister. As of March 31, we supplied fuel to 1,410 entities and vehicles, including helicopters of the Japan Self-Defense Forces, hospitals, local governments, government-designated emergency service stations (207 in the Tohoku region and 187 in Kanto) and emergency vehicles engaged in operations related to the Fukushima Daiichi Nuclear Power Plant accident.
Emergency fuel supply to the disaster relief teams of the Japan Self-Defense Forces
In Sendai City, the Sendai Ichiban-cho Service Station owned by a Group company was quickly reopened on the same day of the disaster. On the next and following days, we had a rush of customers and had to limit the amount of gasoline to be supplied to each vehicle and hand out numbered tickets to eliminate traffic congestion caused by cars waiting in line. The experience was shared among service stations within the disaster areas and used to develop various tools and improve customer services. By April 11, one month after the disaster, 407 service stations, or approximately 90% of the service stations in the Tohoku region, resumed operations.
Restored Ofunato Service Station: Two fuel dispensers serving as a distribution base for fuel transportation by truck
Company-Wide Support for Restoration of Service Station Operations The number of operational service stations within the area covered by the Tohoku Branch Office (now separated into the North Tohoku and South Tohoku Branch Offices) as of March 13 was 221, less than half of 454 service stations located in the area. Taking the situation seriously, we made strenuous efforts to restore operation of service stations. We dispatched supporting teams from the Head Office, each Branch Office (currently, Sales Office) and affiliate to help refueling work at service stations, control traffic in the surrounding areas, examine storage tanks and piping, and provide general support for service station operations. These teams also played a significant role in delivering kerosene and other relief goods to evacuation shelters.
In response to the disaster, the Sales Department of Idemitsu established the Tohoku Reconstruction Support Office on May 1. Its immediate goal is to provide mental care services and support for operational recovery to retail outlet owners who have sustained considerable damage from the disaster and have been under heavy stress. On a brighter note, we have owners who had decided to discontinue business just before the disaster and changed their mind to continue for a while longer as they became aware of the important role that a service station is playing in a local community in the aftermath of the disaster. The Tohoku Reconstruction Support Office intends to provide as much support as possible to these retail outlets owners and people in the Tohoku region, sharing the same hopes for the earliest possible recovery.
Tohoku Reconstruction Support Office located within the South Tohoku Branch Office
IDEMITSU Group CSR Report 2011
Domestic branches
8 (Currently there are 28 Sales Offices in lieu of domestic branches, for which operations were discontinued as of April 1, 2011 following organizational changes.)
Head Office
1-1, Marunouchi 3-chome, Chiyoda-ku, Tokyo 100-8321
President
Kazuhisa Nakano
Refineries
Hokkaido, Chiba, Aichi, Tokuyama
Establishment
March 30, 1940 (founded June 20, 1911)
Petrochemical plants
Chiba, Tokuyama
Research laboratories
9
Paid-in capital
108.6 billion (as of March 31, 2011)
Oil depots
25
3,864.3 3,798.5 3,659.3 3,593.2 3,478.5 3,394.7 3,275.6 3,112.3 3,000 3,107.8 2,864.7 2,000 1,000
North America
157.9 billion
(4.3%)
20.1 billion
(0.5%)
116.2 billion
(3.2%)
79.8 billion
(2.2%) Other areas
Petrochemical products
Petroleum products
Asia, Oceania
Japan
498.6 billion
2,982.7 billion
(81.5%)
323.7 billion
(8.8%)
3,127.4 billion
(85.5%)
(13.6%)
Operating Income
( billion) 150
Non-consolidated Consolidated
Number of Employees
10,000 8,000
Non-consolidated Consolidated
128.8 100 102.8 102.4 83.2 50 58.3 55.9 44.5 27.8 0 2006 2.0 2007 2008 8.0 2009 2010 (FY)
7,474
7,503
7,826
8,330
8,201
37.5 billion
(29.1%)
94.6 billion
(73.4%)
Petrochemical products
4.2 billion
(3.3%)
0
2006 2007 2008 2009 2010 (FY)
Aichi Renery Idemitsu Plantech Aichi Co., Ltd. Tokuyama Renery/Tokuyama Petrochemical Plant Idemitsu Plantech Tokuyama Co., Ltd.
Fukuoka Nagasaki Yatsushiro Kagoshima
Shiogama
Hitachi
Idemitsu Engineering Co., Ltd. Chiba Renery/ Chiba Petrochemical Plant Idemitsu Plantech Chiba Co., Ltd.
Hachijojima
Idemitsu Oil & Gas Co., Ltd. Idemitsu Snorre Oil Development Co., Ltd. Idemitsu Cuu Long Petroleum Co., Ltd. Idemitsu Retail Marketing Co., Ltd. S.I. Energy, Ltd. Idemitsu Supervising Co., Ltd. Apolloretailing Co., Ltd. Idemitsu Tanker Co., Ltd. Hokkaido Joint Oil Stockpiling Co., Ltd. Astomos Energy Corporation Idemitsu Unitech Co., Ltd. Idemitsu Technofine Co., Ltd.
Sartomer Idemitsu Corporation Prime Polymer Co., Ltd. PS Japan Corporation BASF Idemitsu Co., Ltd. LION IDEMITSU COMPOSITES CO., LTD. Chiba Chemicals Manufacturing LLP Idemitsu Oita Geothermal Co., Ltd. Idemitsu Insurance Service Co., Ltd. Joyama Estate Co., Ltd. Idemitsu Marines Co., Ltd. Idemitsu Credit Co., Ltd.
Hong Kong
IDEMITSU CHINA CO., LTD. Idemitsu Chemicals (Hong Kong) Co., Ltd.
Uranium project
Cigar Lake
Tianjin
Idemitsu Lube (China) Co., Ltd.
Calgary
Idemitsu Canada Resources Ltd.
Southfield
Idemitsu Chemicals U.S.A. Corporation Idemitsu Lubricants America Corporation Detroit Ofce
Oslo
Idemitsu Petroleum Norge AS
Amsterdam
Idemitsu International (Netherlands) B.V.
Los Angeles
Idemitsu Lubricants America Corporation Los Angeles Ofce
Herndon
Global OLED Technology LLC
Hanoi Chonburi
Apollo (Thailand) Co., Ltd.
Guangzhou
Idemitsu Lube (China) Co., Ltd., Guangzhou Ofce
Jeffersonville
Idemitsu Lubricants America Corporation
Pasir Gudang
Idemitsu SM (Malaysia) Sdn. Bhd. Idemitsu Chemicals (M) Sdn. Bhd. Petrochemicals (Malaysia) Sdn. Bhd.
London
Idemitsu International (Europe) PLC Idemitsu Chemicals Europe PLC Idemitsu E&P UK Ltd. Idemitsu E&P Shetland Ltd. Idemitsu Petroleum UK Ltd. Idemitsu North Sea Oil Ltd. Idemitsu UK Oil Ltd.
Republic of Singapore
Idemitsu International (Asia) Pte. Ltd. Idemitsu Chemicals Southeast Asia Pte. Ltd. Idemitsu Lube (Singapore) Pte. Ltd.
Coal mines
Brisbane
Idemitsu Australia Resources Pty Ltd Apollo Resources Pty Ltd Idemitsu Boggabri Coal Pty Ltd Bligh Coal Limited Ensham Resources Pty Ltd Ensham Coal Sales Pty Ltd Nogoa Pastoral Pty Ltd Ebenezer Mining Company Pty Ltd Muswellbrook Coal Company Limited Boggabri Coal Pty Limited Tarrawonga Coal Sales Pty Ltd
Republic of Liberia
Apollo Tanker Corp. Orpheus Tanker Corp. Zearth Tanker Corp.
Futamata Wind Power Station in Aomori Photo provided by Japan Wind Development Co., Ltd.
Import and transportation of crude oil, oil refining and domestic transportation, storage and sales of petroleum products
Manufacture and sales of generalpurpose chemicals produced primarily from naphtha, such as ethylene, propylene, C4 fraction, styrene monomer and paraxylene
Supply of geothermal steam to the Takigami Power Plant of Kyushu Electric Power Co., Inc., supply of renewable energy via wind power generation and development of biomass fuels
Resources Business
Idemitsu engages in exploration, development, production and sales of energy resources, such as petroleum, natural gas, coal and uranium. Coal Uranium
Petroleum Development
Copyright/Statoil ASA
Exploration, development and production of petroleum in the North Sea and off shore Vietnam, and acquisition of working interests in and operation of oilfields
Owns four coal mines in Australia and produces and sells approximately 10 million tons a year.
Preparations for production are underway at the Cigar Lake project in Canada, in which Idemitsu has acquired interests.
We develop and offer high-performance functional products in the fields of lubricants, performance materials, agri-bio products and electronic materials. Agri-Bio Products Electronic Materials
Performance Materials
Heat sink of LED bulb, which uses thermally conductive polyphenylene sulfide (PPS)
The Lubricants Department and Lubricants Research Laboratory are engaged in development and sales of high quality lubricants that serve to reduce energy consumption and prevent abrasion of machinery.
Development and sales of performance materials, such as plastics that provide excellent heat or impact resistance, less harmful solvents and photoresist materials
Development and sales of biopesticides, chemical pesticides and feed additives, which contribute to food safety and security and respond to increasing food demand
Development and commercialization of new technologies in the electronic materials field, such as OLED materials and transparent electrode materials
Import of LP gas
LP gas
Gasoline Sales
15.5%
Petroleum products
Service stations Gasoline
Distillation unit
Kerosene
35~180C
LP gas fraction
Jet fuel
A-heavy oil
170~250C
C-heavy oil Oil tankers
Customers
Lubricant Sales
27.0%
240~350C
Diesel oil A-heavy oil fraction
Lubricants
Crude oil
350C or higher
C-heavy oil Lubricant feedstock
Petrochemical plant
13.8%
Furnace
360C
Petrochemical products
10
Corporate Governance
Corporate Governance Structure
Type of governance structure Directors Statutory auditors Board of Directors Outside advisory committees Company with Auditors of the Japanese Companies Act 11 persons (No outside directors) 5 persons (including three outside statutory auditors) Generally convenes once per month Management Advisory Committee and the Safety and Security Advisory Committee
Operating Departments
*New body established in July 2010
Promotion of CSR
CSR concerning environmental matters, occupational safety, product safety, legal compliance and other areas is promoted by the departments and committees responsible for each respective area. The CSR Group established within the Corporate Planning Department cooperates with these departments and undertakes cross-sectional activities as well as gathers CSR-related information from Japan and overseas and responds to external matters concerning CSR.
CSR Aspect Main Department in Charge Committees, etc.
Overall advancement of CSR Legal compliance Risk management Security and occupational safety Environmental conservation Consumer protection and product safety Employment
Corporate Planning Department General Affairs Department General Affairs Department Safety, Environment & Quality Assurance Department*1 Personnel Department
Management Committee Compliance Committee Risk Management Committee Safety and Environmental Protection Council Safety and Security Advisory Committee Quality Assurance Headquarters Council*2
General Affairs Department, Protection of and respect for regional cultures four refineries, two petrochemical plants Investor Relations & Public Relations Office/ Disclosure/public communication Corporate Planning Department Information management General Affairs Department/ (including protection of personal information) Information Systems Department
*1 We conducted an organizational review in July 2010 for the purpose of reinforcing our quality assurance system and thereby established the Safety, Environment & Quality Assurance Department. *2 We conducted an organizational review in July 2010 for the purpose of reinforcing our quality assurance system and thereby established the Quality Assurance Headquarters Council.
11
Risk Management
Basic Policy
Identify and evaluate risks associated with the Idemitsu Groups business activities, minimize these uncertainties and strive for stable management.
(Strengthening Countermeasures for Serious Risks)
Results
C A
Evaluation/ Improvements
Review business continuity plan (BCP) (for the Tokyo Inland Earthquake) and implement comprehensive disaster drills.
Implement comprehensive disaster drills based on BCP (for the Tokyo Inland Earthquake).
Currently formulating BCP Formulate BCP (for the Tokai, Tonankai and (for the Tokai, Tonankai and Nankai Nankai earthquakes). earthquakes).
BCP and associated drills functioned effectively in the Great East Japan Earthquake. However, it is necessary to review BCP and drills considering that the earthquake and tsunami were at levels that exceeded assumptions.
Review the BCP (for the Tokyo Inland Earthquake) and formulate a new BCP (for the Tokai, Tonankai and Nankai earthquakes) based on the lessons learned from the Great East Japan Earthquake.
In fiscal 2004, Idemitsu established the Group-wide Risk Management Committee under the Management Committee. The Risk Management Committee identifies serious risks common to the Group and conducts quarterly management reviews of progress on countermeasures for those risks. In fiscal 2007, we set up the Risk Management Group within the General Affairs Department and integrated risk control and risk finance. In fiscal 2008, the operations of the secretariat of the Compliance Committee were also integrated with the Risk Management Group and by doing so we realized a framework for the comprehensive promotion of risk management. We also periodically review our targeted serious risks. As of the end of fiscal 2010, we designated nine risk aspects that include fires and explosions, major earthquakes and avian influenza.
In fiscal 2004, the Idemitsu Group drew up Guidelines for Addressing Crises, which represented a sweeping revision of our crisis-level definition, our system for liaison and instructions, and other matters. In fiscal 2006, we formulated a BCP for the eventuality of an earthquake with an epicenter in the Tokyo metropolitan area and in fiscal 2009 formulated a BCP for the eventuality of avian influenza. We adhere to these guidelines and BCPs in implementing periodic practical crisis response training at refineries, petrochemical plants, the corporate head office and all other business sites.
12
Results
C A
Evaluation/ Improvements
Focus on give full consideration to assuring safety in planning and executing work.
Accidents causing death or injury declined from the previous fiscal year and the majority of accidents were injuries from falls or collisions during transit at work sites.
Provide repeated education and guidance based on actual places, actual things and actual situations (genba, genbutsu, genjitsu).
There were no major accidents, but there was an incident in which small amounts of oil leaked into a body of water designated for public use.
For facilities with external corrosion, it is necessary to establish an order of priority from the perspective of risk and respond in a systematic and thoroughgoing manner. It is necessary to utilize the lessons learned from damage incurred by other companies in the Great East Japan Earthquake. There is a need to adhere to the fundamentals and thoroughly utilize instructions as stipulated to the fullest, and to establish security management systems for undertaking new businesses.
Make facility risk evaluations and systematic responses, establish tasks based on lessons from the Great East Japan Earthquake and respond in a relevant matter.
Assure safety through compliance with various rules and regulations when carrying out business, and establish safety and security management systems.
Potentially serious incidents* included those where improvements to work methods are needed due to insufficient adherence to regulations. There were actual instances of inadequate safety confirmation in undertaking new business overseas.
Thoroughly adhere to the fundamentals and deploy security management systems in new business fields.
There were process-related problems due to a lack of understanding of processes and the inadequate handing down of technologies.
There is a need for handing down the principles and fundamental rules of processes as well as unique technologies in addition to utilizing and handing down information concerning accident-related problems.
Enhance workplace education on the principles and fundamental rules of processes, unique technologies and information concerning accident-related problems. Understand and comply with security laws, regulations and ordinances.
There were no major cases involving security laws and regulations, but there There is a need to deepen the were reporting deficiencies related to understanding of ordinances as well. fire prevention ordinances.
*Potentially serious incident: An incident that does not result in a major disaster or accident, but that in some cases could have led directly to such a disaster or accident
The Idemitsu Group handles a large volume of combustible materials such as oil, and thus there is a possibility that a fire, explosion, leakage of large amounts of oil or other incidents could have a negative impact on local communities and the environment. Therefore, we have designated security as a risk control item of utmost importance.
The Safety & Environment Protection Headquarters promotes the assurance of security for the entire Idemitsu Group. An executive vice president of Idemitsu serves as head and its membership consists of the managers of each executive department, while the Safety, Environment & Quality Assurance Department functions as secretariat. The head summons the members to convene the Safety and Environmental Protection Council. Within the Safety & Environment Protection Headquarters, the Safety Subcommittee has been set up to consider and deliberate on important issues concerning security from an expert viewpoint. Moreover, the Safety and Security Advisory Committee, which is comprised of outside experts, convenes on a regularly scheduled basis.
Participants chant a slogan for confirming the importance of security at a safety assembly.
13
Idemitsu formulates basic policies for security management (previous page) within the General Principles of Safety. In accordance with these policies, the Safety & Environmental Protection Headquarters formulates basic policies for safety and the environment each fiscal year based on the status of the occurrence of accidents and the results of safety audits in the previous fiscal year and deploys these policies throughout the entire Group. The Safety and Environmental Management Office of the Safety, Environment & Quality Assurance Department, which serves as secretariat of the Safety & Environmental Protection Headquarters, undertakes regular safety audits at refineries, petrochemical plants, oil depots and laboratories and confirms whether security management systems are functioning properly.
Based on the preceding, in fiscal 2011 we will focus on the priority issues of Assuring the safety of people through repeated education and guidance based on actual places, actual things, and actual situations (genba, genbutsu, genjitsu), Assuring the security of facilities and processes by undertaking and responding to facility risk evaluations and setting tasks for and making responses to lessons learned from major earthquakes and Enhancing workplace education on the principles and fundamental rules of processes, unique technologies and information concerning accident-related problems.
Idemitsus refineries and petrochemical plants, in collaboration with cooperating companies, conduct thorough daily safety inspections and take all possible measures to prevent accidents, while forming self-protecting disaster prevention teams in the event of an accident and carrying out periodic disaster prevention training.
* The scope of computation of the average across all industries was expanded in fiscal 2008, resulting in a discontinuity between figures to fiscal 2007 and figures from fiscal 2008. As to the figures for fiscal 2008, the Ministry of Health, Labour and Welfare also released the figures prior to the change as a transition measure. The Idemitsu report for fiscal 2009 carried the figures prior to the change, but in fiscal year 2010 we will carry the figures following the change. **Frequency rates and severity rates are indicators used by the Ministry of Health, Labour and Welfare and others when assessing the incidence of workplace accidents. The frequency rate expresses the frequency of workplace accidents in terms of the number of casualties from workplace accidents per one million cumulative labor hours. The figure is calculated as the number of casualties from workplace accidents that occurred during the period of the statistics divided by the total number of labor hours of all workers and multiplied by one million. The severity rate expresses the degree of severity of accidents in terms of the number of work days lost per 1,000 cumulative man-hours. The figure is calculated as the number of work days lost due to workplace accidents that occurred during the period of the statistics divided by the cumulative total number of labor hours of all workers and multiplied by 1,000.
Frequency rate =
Number of casualties from workplace accidents Cumulative total of labor hours worked Number of work days lost Cumulative total of labor hours worked
x 1,000,000
Severity rate =
x 1,000
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Compliance
Basic Policy
Based on its management policy, Idemitsu considers compliance as a social responsibility and rigorously implements compliance within the Company.
(Rigorous Implementation of Compliance)
Results
C A
Evaluation/ Improvements
Ascertained the current state of The state of compliance promotion at compliance promotion at overseas overseas business sites is generally good. Formulate compliance action business sites. We will call for further attention to items guidelines (for overseas use). Formulated a list of compliance items involving human rights and labor, which that will be important overseas. are emphasized overseas.
Idemitsu established the Compliance Committee under the Management Committee. With an executive vice president of Idemitsu serving as committee chairperson, the Compliance Committee has membership consisting of the director in charge of General Affairs and the general managers of the Safety Environment & Quality Assurance Department, Corporate Planning Department, Investor Relations & Public Relations Office, General Affairs Department, Human Resources Department and Treasury Department. The Compliance Committee convenes on a quarterly basis jointly with the Risk Management Committee. Additionally, we have deployed compliance promotion general managers (general manager of each department/branch office/refinery/petrochemical plant, etc.) and compliance promotion managers (manager of each department/branch office/refinery/petrochemical plant, etc.) for carrying out self-directed compliance activities.
Idemitsu created the Compliance Handbook that sets out Compliance Action Guidelines and specific matters for compliance and distributes this to all group employees. Every year, Idemitsu also creates Compliance Case Studies, a compilation of past internal and external case studies concerning compliance, and makes these cases known throughout the Group. Case studies of familiar problems that seem more likely to occur are selected from the compilation and are introduced at workshops held in the head office area to raise employee awareness. These workshops had a participation rate of approximately 80% in fiscal 2010. Video streaming of the workshops in the head office area is also provided over the company intranet. These materials serve as reference at independently held workshops outside the head office area, where participants can identify potential problems and suggest solutions.
The Compliance Committee formulates compliance action plans for each department and promotes activities in accordance with the fiscal year policies. Moreover, the committee incorporates into the self-check list those items requiring particular attention from among laws and regulations concerning business operations of each department and undertakes periodic checks in each department. At the same time, compliance audits are implemented through periodic business operation audits by the Internal Audit Office.
Idemitsu established the Compliance Consultation Desk as a contact point for consultation and internal communications regarding compliance in addition to setting up external consultation desks at law firms. We make every effort to strictly protect information about individuals seeking consultation as well as to prevent unfavorable treatment of those individuals as a result of consultation.
15
Information Management
In preparation for the expansion of our overseas business in the future, we are progressing with the establishment of a global compliance structure that encompasses our overseas business offices. In fiscal 2010, we implemented a survey on the current state of compliance management at overseas branches and subsidiaries of Group companies as well as non-consolidated overseas companies and deliberated on the items that must be complied with globally. In fiscal 2011, we plan to formulate compliance action guidelines (for overseas operations).
Compliance Items Act sincerely Comply with various types of business laws. Contribute to the undertaking of proper export procedures and to safety assurance. Prohibit bribery and excessive gift giving and excessive hospitality. Prohibit illegal donations and political contributions. Cut off relations with antisocial forces. Undertake transactions based on fair and free competition Comply with the Antimonopoly Law and applicable laws and regulations. Prohibit insider trading. Respect the intellectual property rights, design and trademark rights and trade secrets of other parties. Assure management transparency and soundness Disclose information. Ensure proper accounting treatment and tax payments. Properly create and maintain documents. Manage company assets. Properly receive subsidies and benefits. Assure safety of products, prevent accidents and disasters, and protect the global environment Product safety Safety, security and accident prevention Environmental protection Create comfortable workplaces Respect human rights, prohibit undue discrimination, and prohibit sexual harassment and power harassment. Comply with labor-related laws and regulations, rules of employment and other regulations. Ensure safe and healthy workplaces. Draw a line between public and private matters. Protect personal information. Properly manage confidential information. Properly utilize information systems.
Under the Information Control Guidelines formulated in fiscal 2004, Idemitsu designated each departments general manager as a general director in charge of information management, and has placed information control supervisors under each director as it undertakes information management. In addition, we require that information management practices at each department and branch, including refineries, petrochemical plants and laboratories, undergo annual self-checks. We also implement regular e-learning and other training in Security Rules for the Use of Information Systems as part of our thoroughgoing information management measures.
Idemitsu Credit Co., Ltd. and Apolloretailing Co., Ltd., two Group companies that handle a great deal of personal information, have earned the Privacy Mark* and are making thorough efforts to ensure the proper handling of personal information. Meanwhile, the Learn About Service Station Safety Standards, a staff educational booklet distributed at Idemitsu service stations, uses specific examples in comic book format to provide readily understandable explanations of the protection of personal information to enable service station staff to understand and properly handle personal information within a short period of time.
* The Privacy Mark is a mark granted to companies certifying that enterprises are establishing systems for taking appropriate measures for protecting personal information in compliance with Japan Industrial Standards (JIS Q 15001:2006 [Personal Information Protection Management System - Requirements]).
16
Social Commitment
Product Responsibility
Policy on Quality Assurance
Idemitsu works to create new value and contributes to society by ensuring the stable and efficient supply of safe, quality products suited to customers needs.
(Quality Assurance)
Results
C A
Evaluation/ Improvements
Implemented such measures as working to improve the quality assurance structure of contractors.
Verify the effectiveness of quality assurance systems according to each business domain.
(Product Safety)
Results
C A
Evaluation/ Improvements
Completed registration of chemical substances subject to REACH regulation (substances handled in quantities of 1,000 or more metric tons/year).
Implemented registration of a portion of Comprehend and respond to chemical substances handled in quantities domestic and overseas regulations, of 1,000 or less metric tons/year) ahead and revisions (REACH, etc.). of plan. The check revealed there are issues for responding to new product launches or making inroads in undeveloped markets. Strengthen change management systems to enable response to new product launches or making inroads in undeveloped markets.
Examine change management systems for Confirmed existing change new product launches or making inroads in management systems. undeveloped markets.
Results
C A
Evaluation/ Improvements
The Quality Assurance Headquarters worked to promote the sharing Group-wide of case examples on claims and problems.
Verified the effectiveness of information sharing by using tools to share claim and problem information.
Continue to promote the sharing Group-wide of claim and problem information and utilization of information sharing tools.
The Idemitsu Group conducted an organizational review to bolster its quality assurance structure and established a new Quality Assurance Headquarters in July 2010 to supervise Group-wide quality assurance management, with the Safety, Environment & Quality Assurance Department serving as its secretariat. The Quality Assurance Headquarters, led by an Executive Vice President of Idemitsu, consists of General Managers of each department and convenes meetings of the Quality Assurance Headquarters Council on a regularly scheduled basis. The Group also established the Quality Assurance Subcommittee under the Quality Assurance Headquarters to examine and promote important qualityrelated issues and tasks.
Under the strengthened quality assurance structure, the Idemitsu Group has been undertaking concerted efforts toward the continuous enhancement of quality assurance throughout the Group. In fiscal 2010, we provided education on quality assurance activities to our contractors. We also examined the status of our quality-related change management for new product launches or making inroads in undeveloped markets.
In fiscal 2007, our main domestic and overseas business departments completed the acquisition of ISO 9001 certification. We immediately begin implementing the acquisition process when new business sites that require certification are established.
17
Based on the Product Safety Action Guidelines formulated in fiscal 2007, we conduct checks on product safety in each of the five product life stages from research and development to sales. We carefully manage chemical substances to ensure compliance with regulations of each country.
In the unlikely event of serious product safety or quality issues, we follow our Guidelines for Addressing Crises to minimize damage and any impact on society at large.
For products of the Idemitsu Group, we issue material safety data sheets (MSDS) as stipulated under the relevant laws. Each MSDS indicates the hazardous properties and safety of products according to chemical classification that complies with GHS*. The Companys website also provides a system to perform a search for a product by name or usage and to request its corresponding MSDS.
http://www.idemitsu.co.jp/msds/ index.html
(Japanese only)
At Idemitsu self-service stations, we attach to each of the fuel dispensers a readily understandable sticker showing types and degrees of hazardousness of chemical substances. These stickers serve to encourage customers to practice safety.
* GHS: Globally Harmonized System of Classification and Labeling of Chemicals
18
Social Commitment
Product Responsibility
The Quality Assurance Subcommittee, established in July 2010, has launched an initiative to prevent occurrence or recurrence of quality-related complaints and problems by compiling information on the incidents that have occurred in respective business departments and sharing such information internally.
We make quick and careful responses to quality-related inquiries from customers. When we receive, for instance, an inquiry from a customer expressing a doubt about the quality of Idemitsu-brand gasoline because the fuel efficiency has apparently dropped after refueling at one of our service stations, we promptly identify the responsible service station, inspect the stock in storage tanks, examine fuel unloading operations and check if there are similar inquiries from other customers. We conduct a detailed quality analysis if further examination is deemed necessary as a result of these checks.
19
Social Commitment
Results
C A
Evaluation/ Improvements
Employment
Promote recruitment according to the medium-term personnel recruitment plan. Achieve a balanced workforce age distribution.
Hired 63 new graduates as of April 2011 and 13 mid-career employees in fiscal 2010. Added a basic self-development training program. Conducted a self-development training seminar Visionary Women for female employees Offered training on Idemitsu philosophy and self-development training for subsidiaries. 1) armo utilization rate: 100% (as of September 1, 2011); number of eligible employees: 11 2) Rate of armo users who have returned to work in fiscal 2010: 91%
Received favorable feedback from participants of the two newly established training programs.
Maternity and Childcare Leave Support for Balancing Work and Personal Life
Promote the use of armo* program to support selfdevelopment of employees on maternity and childcare leave.
The program to support selfConsider implementing a personnel development of employees on development plan with a focus on maternity and childcare leave is well balancing work and home life. administered in each workplace. Introduction of these systems were limited to certain research domains. Verify the effectiveness and how Performed verification of these well these systems take root. systems with a view to expand their scope to other research domains. Goal attained. Successfully maintained the level above the legally prescribed rate of 1.8%. Create new jobs and work environments making it conducive for people with disabilities to secure stable job opportunities.
Introduced these systems at the Examine introduction of Advanced Technology Research Diverse Work Formats discretionary work and flextime Laboratories and Electronic systems mainly in research domains. Materials Development Center. Employment of Persons with Disabilities Achieve employment rate of people with disabilities exceeding the legally prescribed rate of 1.8%. Achieve overtime and holiday work hours per person per month of 6.2 hours (average of employees besides management-level employees in each job group) (a decrease of 0.3 hours vs. fiscal 2009 level). Achieve the number of days of annual paid leave taken (average of all employees) of 11 days per person (an increase of 1.0 day vs. fiscal 2009 level). Offer executive candidate training for local staff of the Lubricants Department jointly with the Human Resources Department. Set up a way to show activities of visionary persons who are actively engaged in work with a strong career vision. Promote follow-up activities to encourage employees who did not pass a regular health checkup to receive secondary examinations or treatment and check the number of employees who have actually received recommended examinations or treatment. Employment rate of people with disabilities: 1.97% (As of June 2011)
Overtime and holiday work hours per person per month: 5.2 hours (a decrease of 1.3 hours from fiscal 2009 level) Number of days of annual paid leave taken per person: 10.3 days (an increase of 0.3 day vs. fiscal 2009 level)
Attained improved work efficiency through a review of work utilizing the Work Management System, and overtime and holiday work hours consequently declined. Continue to encourage employees to take paid leave.
Maintain overtime and holiday work hours per person per month at or below 6.2 hours. Maintain the number of annual paid leave taken per person at or above 11 days.
Conducted a one-year training program for one executive candidate of an overseas Group company.
The training program in Consider developing local staff as collaboration with the Human Resources Department worked well. training systems under the Human Resources Department. Consider expanding the scope of the program. Foster a corporate culture in which female employees take active roles on a long-term basis.
Established a bulletin board for It is necessary to implement a visionary persons on company variety of initiatives to continue to intranet and introduced the dynamic raise awareness among employees. efforts of two female employees. Conducted follow-up activities at business sites where medical staff are permanently stationed in medical offices to encourage employees to receive secondary examinations or treatment and checked the number of employees who have actually received recommended examinations or treatment.
Lifestyle-Related Diseases
Consider expanding the scope of follow-up activities, as they have been proven effective at the previously noted business sites.
Expand the scope of follow-up activities to include employees working at business sites where no medical staff are permanently stationed as well as employees working overseas.
Mental Health
Enhance skills of management-level employees to deal with mental health problems of subordinates to stop the upward tendency in the number of employees on leave for mental health reasons.
Conducted workshop for management-level employees 44 times with a total of 660 participants.
Successfully put a stop to the upward tendency in the number of employees who have been diagnosed with mental health problems and on leave for more than one month. Believed to be the result of our knowledge and skills enhancement efforts targeting management-level employees.
Cultivate awareness, knowledge and skills for mental health care among management-level employees for prevention of occurrence, recurrence and early detection of mental health problems and the promotion of a smooth transition back to work.
*armo is a system provided by Work Life Balance Co., Ltd. to which employees on leave are permitted to log in from their home computers. The system provides (1) the latest information on Company (workplace) activities and information on childcare; (2) a users community and blogs for exchange of information on childbirth and child care; and (3) free e-learning courses that can be taken at home.
IDEMITSU Group CSR Report 2011
20
Social Commitment
Employment
Status of Employment
Currently, the ratio of employees in their 30s and 40s in our workforce is rather small, causing an imbalance in the age distribution of employees. In addition, as we accelerate business development in new fields and expansion of existing businesses, we will need more specialists in those fields. Accordingly, we have developed a medium-term personnel recruitment plan and are recruiting employees. Idemitsu employees at the end of March 2011 stood at 8,201 for the Group as a whole (apart from temporary workers*, which totaled 3,756), and 4,410 in Idemitsu on a non-consolidated basis (apart from temporary workers, which totaled 724). We hired 63 new graduates as of April 2011 and 13 mid-career employees in fiscal 2010. In the future, we will consider expanding mid-career recruitment to increase the number of employees in their 30s and 40s.
* Temporary workers include dispatched workers who were not directly hired by the Idemitsu Group.
Idemitsu measures the level of employee job satisfaction by using the ratio of employees who have stated in their respective Records of Activity Objectives* (submitted every year to the Human Resources Department) that their jobs are rewarding and the rate of attrition of new hires who quit less than three years after joining the Company. In fiscal 2010, 76.2% of Idemitsu employees felt their jobs were rewarding, and the rate of attrition of new hires with less than three years of service was 5.2%.
* Record of Activity Objectives: An interview sheet used in interviews for respective employees to discuss with his or her superior about personal matters and career aspirations, including desired transfers, that is designed to facilitate the sharing of thoughts, and in turn, create a better work environment for each employee. Also used as a tool to promote communication among employees, designated personnel managers and General Managers of respective offices, and departments and the Human Resources Department.
75
75.7
Philosophy on Welfare
70
With the aim of enabling employees to concentrate their efforts on their work with reassurance and enabling employees and their families to have a sense of security throughout their lives, Idemitsu has in place a range of welfare systems that are designed to complement national social security programs and are suited to each life stage, from the start of ones career to after retirement. In order to help provide employees and their families with a sense of security in their lives, we offer health management services through Idemitsus health insurance association. Idemitsu Insurance Service Co., Ltd. offers group and other forms of insurance, and conducts life planning and health-related seminars as well as insurance consultations to explain various insurance products available to employees.
As a general rule, Idemitsu employees manage their work hours and report the hours they have actually worked to their superiors. In fiscal 2009, we introduced a new Work Management System as a web tool to support employees self-management and self-reporting of work hours. We utilize this system to comprehend the actual work conditions of employees and promote a work-life balance by reviewing and trying to improve work efficiency, working with individual employees or their superior, and within the overall workplace.
21
Idemitsu promotes employee skills development via programs commonly provided to all employees companywide in combination with job-specific support programs. Company-wide support programs are based on Idemitsus unique perception of skills development, which encompasses a sense of independence, willingness to take on challenges, mutual trust and teamwork. In addition, Idemitsu offers a variety of education and training programs (See table below) to supplement selfdevelopment efforts and help employees gain insight into Idemitsu as well as themselves outside the workplace.
As a basic policy, we seek to uphold fair compensation based on the idea of guaranteeing a basic level of living for each employee. Our employee compensation structure focuses on respecting each employees lifestyle, values and quality of family life. The structure plays the dual roles of serving as a steady source of income and providing compensation that reflects the scores of growth step evaluations (the degree of achievement of objectives) as previously noted.
Personnel Assignments and Transfers to Match the Right Person in the Right Place
The basic approach to evaluation at Idemitsu involves the use of step-specific growth objectives, which constitute a common, company-wide evaluative yardstick, to identify an employees comprehensive competence. At the same time, a growth support system called Management by Objectives is used to check whether an employee is demonstrating work quality and capabilities appropriate to each growth step. Growth objectives, capability enhancement, set targets and the degree of achievement are confirmed in an interview with ones superior using an Action Plan Table created semiannually. The evaluation results are used to determine the next objectives for growth and reflected in compensation (pay and allowances) as well as personnel assignments and transfers.
The Idemitsu Groups Education and Training System
Group Training
Training Development Stage Hierarchical Employee Training
New employee education Goal achievement training Primary and secondary introductory training for mid-career employees
Idemitsu does more than simply assign personnel to appropriate positions in line with changing business structure. We also consider changes in job description (job category) and work location to be opportunities for employees to achieve new growth. Every autumn, Idemitsu employees have individual interviews with their superiors to talk about personal matters and desired transfers using Record of Activity Objectives sheets. Superiors enter advice on these sheets and return them to employees. These records are also submitted to the Human Resources Department and used to share information about the direction of each individual employees development between superiors and the Human Resources Department and make transfer decisions. Idemitsu has also introduced the Internal Recruiting System (the Job Challenge System) in order to motivate employees to undertake challenges and match up workplace needs and transfer requests in a timely manner. In fiscal 2010, six recruitment notices were posted and four employees were successfully transferred to their respective desired positions.
By Category
Specialized Training
Means of Self-Development
Practical Mastery
Age 30
Age 40
Newly appointed management-capable employee* training Management-level Training I (new appointments) Management-level Training II Idemitsu Business School Sending to outside seminars
Age 50
*The educational training benet system is available for any correspondence training program or course designated by the Ministry of Health, Labour and Welfare.
*Management-level: Persons with the ability to execute their duties corresponding to persons in charge of management
IDEMITSU Group CSR Report 2011
Acquisition of qualications
22
Social Commitment
During fiscal 2010, we introduced discretionary work and flextime systems for a group of employees working at the Advanced Technology Research Laboratories and Electronic Materials Development Center. We will consider expanding the scope of these systems to include other research departments.
Maternity and Childcare Leave Support for Balancing Work and Personal Life
We help employees balance work and child care by offering systems of maternity leave, childcare leave and reduced working hours for parenting. These systems, with the exception of maternity leave, are available for both female and male employees. To encourage employees to fully utilize these systems, we also provide a program to support the return to work and a system in which the Company pays the full tuition fees for correspondence training courses completed during leave.
Idemitsu promotes the hiring of persons with disabilities in order to allow everyone with or without disabilities to exert his or her strengths, help each other and work enthusiastically. We seek advice from industrial physicians for safety and health considerations when deciding tasks to assign to people with disabilities.
2.0 1.94 1.9 1.8 1.80 1.7 0 2006 2007 2008 2009 2010 1.86 1.84 1.85
1.97
Nursing Care Leave and Reduced Working Hours for Parenting (Cumulative Total Number of Persons)
Maternity leave (Persons) Childcare leave Nursing care leave Reduced working hours for parenting Figures in parentheses represent temporary workers (included in total)
2011 (Year)
22 20 15 12 9 6 3 1 0 2006 2007 2008 2009 3 4 5 3(1) 10(3) 7(2) 12(3) 10(2) 9(2) 8(2) 7(1) 8(1) 15(1) 14
22
14(2)
15
1 2010
(FY)
23
The Lubricants Department and Basic Chemicals Department, which have already launched their respective businesses overseas, provide local staff of overseas Group companies with the opportunity to receive education and training in Japan for skills development along with raising awareness as a member of the Idemitsu Group.
Until fiscal 2006, almost all female employees at Idemitsu were general employees, and their job placement, training, evaluation and compensation differed from those of male career-track employees. In order to rectify this difference, Idemitsu eliminated the general-career two-track system in March 2007 and has since been working to support the career development of female employees.
Ratio of Male and Female Employees (As of March 31, 2011)
Male 91% 4,027 Female 9% 383
The then General Manager of the Lubricants Department (left) congratulating an executive candidate who has just completed the training program in Japan
We received positive feedback from participants. Many regarded the seminar as a chance to become stronger with a willingness to take on challenges and take a step forward. Others valued the opportunity to get together with female staff of other departments and expand their internal network.
24
Social Commitment
Health Management
Mental Health
Lifestyle-Related Diseases
In an effort to provide greater support for employee health management, the Idemitsu Group conducts regularly scheduled health checks that include screening items beyond that called for by relevant laws and regulations based on advice given by industrial physicians. In particular, lifestyle-related disease checkups are offered for employees aged 35 and overfive years earlier than legally required and specific checkups for metabolic syndrome for people aged 40 and older. In addition, all employees receive this lifestyle-related disease checkup when they reach age 30. Screening items are similar to those generally covered in a complete medical checkup.
Since fiscal 2004, we have been keeping track of the number of employees on leave for mental health reasons (employees on leave for more than one month due to mental illness). As the number had continued to show an upward tendency, we began conducting two types of workshops in 2008 as a continuous effort to raise awareness among employees for mental health care. One is a self-care workshop for employees besides managementlevel employees and the other is a line care workshop for management-level employees to teach how to prevent and deal with their subordinates mental health problems. In fiscal 2010, while the number of employees on leave for mental health reasons did not show any increase, these activities will continue for the next few years until we see a continued downward trend.
Legally Required Health Checkups and Specific Health Checkups for Prevention of Lifestyle-Related Diseases
Paragraph 1 of Article 66 of the Industrial Safety and Health Law states that the employer shall, as stipulated by the Ordinance of the Ministry of Health, Labour and Welfare, provide to its workers medical examinations conducted by a physician. Paragraph 5 of the same article also states that workers shall undergo the medical examination conducted by the employer under provisions of the preceding paragraphs. Recently, lifestyle-related diseases are said to be responsible for one-third of all deaths in Japan. To counter the situation, the Japanese government introduced a new system in April 2008 to provide health checkups and health guidance specifically for the purpose of preventing lifestyle-related diseases.
25
Social Commitment
The major points of contact between the Idemitsu Group and individual customers are its service stations, website and advertising and publicity media. We are working to increase the level of customer satisfaction at our service stations, improve the usability of our website and provide useful and appropriate information through advertising and publicity. The Customer Relations Center established within the Investor Relations & Public Relations Office receives customer comments and inquiries by telephone, letters and e-mail as well as customer opinion cards provided at service stations and inquiry forms available on our website. The Customer Relations Center promptly responds to customer comments and inquiries in close collaboration with other divisions within the Group.
26
Social Commitment
The Idemitsu Group maintains close communication with corporate clients to promote the development and supply of products matched to their needs. Idemitsu Branch Offices (currently, Sales Offices) throughout Japan hold seminars for corporate clients to deliver information on the latest technical trends, regulatory conditions and other information useful to their business.
27
http://www.idemitsu.co.jp/csr/ activities/cooperation/index.html
(Japanese only)
Under the brand banner of Hotto, Motto, Kitto: Idemitsu (Assurance, Greater Vitality, and Absolute Satisfaction: The Idemitsu Promise), we form a simple and powerful supply chain with about 900 retail outlets of service stations and 4,000 service stations located throughout Japan. Our sales offices serve as consultation desks to offer support for retail outlets by working closely with management and the operation of service stations. We also work in cooperation with the Idemitsu-kai, an association comprising Idemitsu service station retail outlet owners, to conduct activities for community and regional vitalization. The Joint Meeting and All-Japan Convention of Excellent Retail Outlets, both held annually, provide an opportunity to foster communication and promote dialogue between Idemitsu management and Idemitsu-kai members.
We consign transportation of petroleum products to transport and shipping companies. These contracted transport and shipping companies organize safety councils to promote transportation safety and strengthen collaboration among respective companies. Idemitsu participates in activities as a special member of these councils. The 19 land transport companies operating tanker trucks with the Apollo logo have formed the Koun-kai council of transportation companies and have been holding safety promotion campaigns, training seminars on truck operation management and giving awards to excellent drivers who have not caused any accidents or committed any traffic violations. Our partner shipping companies have organized the Asahi Tanker Environment and Safety Council with the aim of forming high quality, competitive fleets and a reliable shipping structure. The council conducts visits to oil tankers berthed at refineries, petrochemical plants and oil depots and engages in dialogue with captains and crew members to spread the councils action policies and share information on potentially serious incidents. Idemitsu provides various alert and warning information concerning safety, the environment and quality to the council.
Idemitsu refineries and petrochemical plants consign maintenance work to plant maintenance companies and transportation operations to land and sea transport companies. The number of such cooperating partners is about 50 for a smaller business site and over 200 for a larger business site. Our partners in each field form Cooperative Associations for Sea Transport, Cooperative Associations for Land Transport and Cooperative Associations for Building and Maintenance, respectively. Idemitsu joins together with these three associations in working to promote zero accidents and zero disasters and environmental conservation.
Idemitsu works to provide shareholders and investors with corporate information in a fair, timely and appropriate manner. We also seek to maintain two-way communication by passing on opinions and comments received and reflecting such feedback in the management of operations. On the day we announce our quarterly business results, we hold a briefing on financial results for institutional investors along with posting relevant financial materials and providing video streaming of the briefing session via our website to maintain the fair and timely dissemination of information. We also held briefings for institutional investors and individual investors to explain our Third Consolidated Medium-Term Management Plan announced on April 28, 2010.
28
Social Commitment
Idemitsu seeks to build still stronger relations of trust with oil-producing countries, particularly in the Middle East. To achieve this goal, we have established local offices within the region from which we conduct direct dialogue and exchanges with the countries concerned. Moreover, we have recently been working to strengthen our trusted relationships with oil-producing countries by pursuing joint business development with capital participation. In addition, we have been providing personnel development support and technical assistance to oilproducing countries by dispatching our expert staff to these countries with the help of the Japan Cooperation Center, Petroleum (JCCP) and accepting executive candidates and technical trainees for training in Japan. We have also been participating in projects implemented by JCCP to develop industrial infrastructures in oil-producing countries.
Idemitsu uses Record of Activity Objectives interview sheets (See explanatory note on page 21) as a tool to communicate with employees. Each Idemitsu employee maintains this record and enters personal information, career aspirations and other thoughts and opinions. This record is used during an annual employee-supervisor interview held in autumn. After the interview, the supervisor enters comments into the record and submits it to the Human Resources Department. The members of the Human Resources Department visit each of our business sites after the interviews have ended for the purpose of sharing information. We believe that the series of dialogues is effective in confirming the direction of each employees development and encourages and motivates him or her to take on challenges. Our basic stance is to solve employee issues through dialogue in the workplace. However, the Sexual Harassment Consultation Desk established within the Human Resources Department handles matters concerning sexual harassment, which are often difficult to resolve through consultations with superiors.
Top executives of Idemitsu take various opportunities to visit business sites throughout Japan to convey managerial policies and plans to employees. They also travel around to work sites to directly talk with persons in charge. On the company intranet, employees can also view for a specific period of time the year-end or New Year speech given by the president and press conferences held by management representatives. During fiscal 2010, a total of 31 top executives visited Idemitsu oil refineries and petrochemical plants to interact and engage in direct dialogue with staff members. Executive Vice Presidents travelled around to 14 business sites (refineries/petrochemical plants, branch offices and laboratories) to provide background and details of the Companys Third Consolidated Medium-Term Management Plan and answer questions from young employees. We also edited and produced four Message from the President videos and posted these videos on our intranet. Immediately after the Great East Japan Earthquake, the president sent an e-mail message to all Idemitsu employees to call for their cooperation in performing our duty as an energy supply company and solicit support for the disaster areas.
An Idemitsu employee giving a lecture at the 19th JCCP the Joint GCC-Japan Environment Symposium held in Muscat, Oman (from December 19 to 21, 2010)
29
& Coal Marketing Department at our head office has been working with the Asahi Shogakusei Shimbun, a newspaper for elementary school children, in organizing classes at schools called Take on the Challenge to Realize Your Dream. These classes, held by racing driver Tetsuya Ota, convey to children the importance of holding on to ones dream and to keep on fighting.
Tetsuya Ota talking about the will to keep on fighting during a class held at an elementary school
Idemitsu refineries and petrochemical plants help keep nearby roadsides clean, cooperate to ensure traffic safety and participate in local traditional events. We also open company-owned facilities to the public, offer tours of refineries to elementary and junior high school students, conduct classes at schools, offer internships and host career development events, and make goodwill visits to welfare facilities. Each Idemitsu refinery and petrochemical plant holds an annual briefing session to explain our security and safety efforts to local community members. During the session, we provide details of safety measures adopted within each business site and effects on the neighboring areas of our periodic maintenance work during which all facilities are shut down.
A total of 130 employees from Idemitsu Tokuyama participated in the Tokuyama Summer Festival Mikoshi Togyo (parade of portable shrines).
The Koun-kai has been actively promoting social contribution activities carried out by members of our partner land transportation companies. Their activities, which have become deeply rooted in local communities, include traffic safety lessons using tanker trucks held at elementary schools, offering internships at oil depots, group blood drives, cleanup activities and purchasing goods from welfare workshops.
The Idemitsu Group undertakes Activities for Community and Regional Vitalization through collaboration with Idemitsu Branch Offices (currently, Sales Offices) and the Idemitsu-kai, an organization comprising Idemitsu retail outlet owners throughout Japan. Activities that have become deeply rooted in local communities are being promoted in a wide range of areas, including safety (disaster prevention and rescue), traffic safety and environmentrelated initiatives as well as local cleanup activities and fundraising events. As a nationwide activity, the Petroleum
30
Social Commitment
Idemitsu makes policy recommendations and states opinions regarding such issues as the stable supply of energy and environmental problems through the Petroleum Association of Japan (PAJ), an industrial association of petroleum refining and primary oil distributors in Japan. In fiscal 2010, proposals were made in regard to a tax for global warming countermeasures, emissions trading and other relevant matters. Recognizing the importance of petroleum products that are essential in securing the stable supply of energy within Japan, recommendations were also made on Japans petroleum policy to ensure sustainability of a supply chain that is less vulnerable to disasters based on the lessons learned through the Great East Japan Earthquake.
We cooperate in group blood donation efforts of the Japanese Red Cross Society in winter and other seasons during which a blood donation shortage frequently occurs. Some of the business sites occupying a portion of buildings as tenants ask for the dispatch of blood donation shuttle buses and solicit support from other tenants in the same building.
Key Examples of Group Blood Donation Efforts
Business Site Date No. of Total Amount Participants Donated
Head Office (Marunouchi, Tokyo) Information Systems Department (Shin-Urayasu Office) Lubricants Research Laboratory Joyama Estate (Nagahori Building)
June 4, 2010 October 29, 2010 July 28, 2010 February 25, 2011 April 20, 2010 December 7, 2010
59 29 26 27 50 51
Disaster Relief
The Idemitsu Group sends teams of support staff, funds and relief supplies to areas greatly affected by natural disasters. After the Great East Japan Earthquake that occurred on March 11, 2011, we called off some of our 100th Anniversary Commemorative Events scheduled during fiscal 2011 and decided to donate a total of 500 million yen, which includes the amount equal to the cost of the cancelled events, to the disaster-stricken areas. On March 30 and 31, we made a direct donation of 100 million yen each to the five prefectures of Aomori, Iwate, Miyagi, Fukushima and Ibaraki. We also dispatched support teams from our Head Office, Branch Offices (currently, Sales Offices) and affiliates to the devastated areas. At Idemitsu refineries, we listed up goods and supplies needed by people engaged in recovery work at our Shiogama Oil Depot, collected these supplies jointly with our partners and sent them on oil tankers heading for the oil depot.
Cultural Activities
Working with the Cooperative Association for Sea Transport to load relief supplies onto the TOYO MARU NO.82, an oil tanker owned by Asahi Tanker Co., Ltd., heading for the Shiogama Oil Depot
Another important mission of Idemitsu is to deliver cultural and art experiences to a wide range of audiences. To this end, we make monetary donations to the Idemitsu Museum of Arts in Tokyo and the Idemitsu Sazo Memorial Museum of Arts, sponsor the television program Daimei no Nai Ongaku-kai (Untitled Music Concert) and plan and organize Music in Museum by Idemitsu concert events. As part of efforts to enhance Japans music culture, we have been offering the Idemitsu Music Awards to support the development of young musical talent and providing scholarships to three to five young talented musicians every year. In fiscal 2010, we granted this award to one Japanese musician (koto player), one violinist and one conductor. To date, Idemitsu has given this award to a total of 79 musicians and one organization. In addition, we operate a replicas of a Idemitsu service station at KidZania, family entertainment centers where children experience various occupations and learn how society works, in Toyosu, Tokyo and Koshi-en, Hyogo Prefecture to provide opportunities for children to learn how to welcome and send off customers and how to perform a vehicle safety check in a service station (called gas station in Kidzania). More details are provided on the Know and Have Fun page on our website.
31
A company with a history of 100 years showing a strong interest in art and culture Idemitsu is, in a sense, a company symbolizing Japan.
Yutaka Sado, Conductor
What is your impression of Idemitsu, the sponsor of the program?
Sado: I have been watching this TV program for a long time since I was a small child, and it has become so natural for me that the program opens with the commercial message of Idemitsu. But when I tell people in BBC and other TV stations in France and Italy that this program has continued for 46 years, they are quite surprised. I myself am quite impressed by the fact that a music program of this quality has been presented by one company for such a long period of time despite the prolonged recession. The program is proof that Japan respects and highly values culture and art. I usually identify myself as the host of the program, something that I am very proud of.
Prole
Yutaka Sado
Critics have unanimously hailed Yutaka Sado as one of the most enthralling and charismatic conductors of the new generation. Born in Kyoto, Japan and studied ute at Kyoto City University of the Arts, Sado soon won the condence of Leonard Bernstein and Seiji Ozawa at Tanglewood Music Festival in 1987. In 1988, Sado served as assistant to Bernstein and toured Europe with the Schleswig-Holstein Music Festival Orchestra. Sado captured world attention by receiving the rst prize at the 39th International Conducting Competition in Besanon in 1989, and the rst prize at the Leonard Bernstein International Competition in Jerusalem in 1995. Sado assisted late Bernstein, Michael Tilson Thomas and the London Symphony Orchestra in 1990 to inaugurate Pacific Music Festival in Sapporo, Japan where he has served as resident conductor and later as guest conductor. Having served as Principal Conductor of the Orchestre des Concerts Lamoureux, Paris from 1993 to 2010, as First Guest Conductor of the Orchestre National BordeauxAquitaine and Principal Guest Conductor at Orchestra Sinfonica di Milano Giuseppe Verdi from 1999 to 2002, Sado has been guest conducting major orchestras throughout Europe including Berlin Philharmonic, Bayerisches Staatsorchester, Symfonieorchester des Bayerischen Rundfunks, Gewabdhausorchester Leipzig, Deutsches Symphonie-Orchester Berlin, Orchestre de Paris, Orchestre National de France, Orchestra Sinfonica dellAccademia Nazionale di Santa Cecilia of Rome and Orchestre de la Suisse Romande. In 2005 Sado has been appointed as Artistic Director for Hyogo Performing Arts Center and its resident orchestra in Nishinomiya, Japan. More than 20 CDs have been released and most recently he has released a CD SHOSTAKOVICH:SYMPHONY NO.5/ TAKEMITSU:FROM ME FLOWS WHAT YOU CALL TIME with Berliner Philharmoniker.
Idemitsu celebrates its 100th anniversary this year. What expectations do you have for the Company?
Sado: In and after the Meiji period, Japan followed the path toward modernization by incorporating Western culture and technology. Idemitsu is cerebrating its 100th anniversary this year, which means that the Company was established roughly about the same time as the countrys first private orchestra was born. It is truly great that a company like Idemitsu, which plays a fundamental role in society by handling natural resources and manufacturing products, has continued to exist for 100 years without being merged into another company and has maintained its deep interest in art and culture. Idemitsu is, in a sense, a company symbolizing Japan. I am grateful for that personally because Ive always felt strongly connected to Idemitsu since I was a small child. Unlike the old days, the speed at which information travels around the world has become considerably faster. This has made it more difficult to foresee changes in the world, but I hope that Idemitsu will continue to grow for another 50 and 100 years, passing down its traditions from generation to generation.
http://www.maido39.net/youyouyou/index.html
(Japanese only)
http://yutaka-sado.meetsfan.jp
(Japanese only)
http://www.yutakasado.com/
32
Environmental Performance
Environmental Management
Basic Policy on the Environment
The Idemitsu Group works to reduce the environmental impact of its business activities while undertaking progressive initiatives for environmental conservation to contribute to the creation of a society in which the economy and the environment are in harmony.
we strive to raise awareness of environmental issues via such initiatives as implementing environmental quizzes and soliciting ideas for enhancing energy conservation.
Idemitsus Safety & Environmental Protection Headquarters is involved in strengthening the environmental conservation activities of the entire Group. Idemitsu also deploys environmental conservation managers and environmental staff in each department and also promotes environmental conservation activities in these departments.
Promotion Framework for Safety and Environment Safety & Environmental Protection Headquarters
Head Co-head Secretariat Members Executive Vice President General Manager of Safety, Environment & Quality Assurance Department Safety, Environment & Quality Assurance Department* General Managers and the Presidents of Key Subsidiaries and Afliates
Environmental Communication
The Idemitsu Group discloses its stance on environmental conservation and provides information on specific initiatives and other matters via our website, CSR Report and environmental booklets and community briefings at refineries. We also invite residents (parents and their children) of local communities to our refineries and petrochemical plants to participate in events that familiarize them with the nature inside green spaces at these facilities. Other activities include inviting those customers who cooperated in surveys to participate in tree-planting activities.
Department
Astomos Energy Corporation Also Utilizes Customer Opinions to Help Create Forests
Orange Letter is a questionnaire-type postcard that asks customers for their frank impressions and opinions of Astomos Energy Corporation and persons in charge. These valuable customer opinions are subsequently reflected in the companys business operations. With an environmental non-governmental organization serving as a partner, in fiscal 2010 Astomos Energy commenced mangrove tree-planting activities in the Philippines under which one tree is planted for every Orange Letter postcard that is mailed back. We are promoting this program under the name Asu-wo-tomosu Mori-zukuri (Creating Forests that Light Tomorrow). During the first fiscal year of this project, a drawing was held for persons who mailed back their Orange Letters, and persons selected were invited to participate in treeplanting activities together with local high school students. In the future, we intend to further expand the Asu-wo-tomosu Mori-zukuri program as we fulfill our role as a company that handles environmentally friendly energy. For specific details, please access the website shown below.
*To strengthen quality assurance, the organization was revised in July 2010 and the name changed to the Safety, Environment & Quality Assurance Department.
Under the basic policies prescribed by the head of the Safety & Environmental Protection Headquarters, the Idemitsu Group promotes ongoing environmental conservation activities. Also, the Idemitsu Groups principal domestic and overseas business sites have obtained ISO 14001 certification and are building and operating environmental management systems that conform to these standards.
Environmental Education
The Idemitsu Group provides environmental education through various means, including new employee training courses and routine workshops at workplaces. Moreover,
33
INPUT
Import Extraction
(one way by tanker)
Domestic manufacturing
Domestic transportation
(one-way)
Domestic sales
and others
Domestic consumption
Energy: 31 PJ
Equivalent in crude oil: 808 thousand k
Energy: 9 PJ
Equivalent in crude oil: 230 thousand k
Energy: 144 PJ
Fuel 3,400 thousand k Coal 382 thousand tons Electricity 228,000 thousand kWh
Energy: 3.1 PJ
Equivalent in crude oil: 79.2 thousand k
Material Procurement
Base oil, additives
Lubricants
Domestic only
Gasoline 9,006 thousand k Kerosene 3,312 thousand k Diesel fuel 5,740 thousand k Fuel oil A 3,014 thousand k Jet fuel 1,436 thousand k Fuel oil C 2,341 thousand k
Crude oil production volume: 29,438 thousand k Idemitsu production volume: 1,660 thousand k
Domestic only
LP Gas 3,364 thousand tons Basic chemicals domestic 1,986 thousand tons
(export 758 thousand tons)
Material Procurement
Naphtha, etc.
CO2 1,800 thousand tons SOx 21,426 tons NOx 3,421 tons
CO2 640 thousand tons CO2 7,580 thousand tons SOx 11,000 tons SOx 7,050 tons NOx 17,000 tons NOx 7,050 tons Soot/dust 271 tons
Wastewater 1,370,000 thousand tons
CO2 219 thousand tons CO2 25 thousand tons CO2 86,000 thousand tons SOx 68,000 tons SOx 1,460 tons
COD 98 tons Total nitrogen (TN) 97.4 tons Total phosphorus (TP) 2.2 tons Final disposal (landll) 105 tons
4 tons
OUTPUT
* Accounting Period: January 1 December 31, 2010
IDEMITSU Group CSR Report 2011
34
Environmental Performance
To further reduce CO2 emissions, we are advancing energy conservation in our business activities, including in production and transport, providing products and services that help save energy at the stage of consumption and utilizing the Kyoto mechanisms.
(Promote Energy Conservation in the Manufacturing Sector)
Results
C A
Evaluation/ Improvements
Promote operational improvements, equipment modifications and the introduction of energy-saving technologies and reduce unit energy consumption.
Refineries: 8.89/k (0.2% decrease vs. FY2009) Petrochemical plants: 0.343k/t (1.4% increase vs. FY2009)
The effects of initiatives were evident at business sites that operated smoothly. Unit energy consumption rose at some business sites owing to factors such as production adjustments.
Continue to promote operational improvements, equipment modifications and the introduction of energy-saving technologies and reduce unit energy consumption.
Results
C A
Evaluation/ Improvements
Unit energy consumption of 9.24k/ million t-km (0.4% increase vs. FY2009)
Unit energy consumption improved in each business department, but overall unit energy Continue to promote large-sized consumption increased slightly because of shipping lots, etc. a rise in the proportion of departments with high unit energy consumption.
Advancement of Energy Conservation in Our Business Activities including Manufacturing and Transport
petrochemical plants. In the future as well, we will progress with efforts to improve operations and modify facilities as well as introduce energy-saving technologies with the aim of improving unit energy consumption. Based on the Act on Promotion of Global Warming Countermeasures, the reported amount of total CO2 emissions by Idemitsu on a non-consolidated basis amounted to 7.61 million tons, an increase of 114,000 tons from fiscal 2009.
* Petroleum industry (Petroleum Association of Japan): Working to achieve a 13% average reduction in unit energy consumption from fiscal 2008 through fiscal 2012 compared with fiscal 1990 level Petrochemical industry (Japan Chemical Industry Association): Working to reduce unit energy consumption on average from fiscal 2008 through fiscal 2012 to 80% of fiscal 1990 level
The petroleum industry (Petroleum Association of Japan) and the petrochemical industry (Japan Chemical Industry Association) are each formulating voluntary action plans* that set industry targets for improving unit energy consumption. Idemitsus refineries and petrochemical plants have already attained these targets and, in conformity with the Act on the Rational Use of Energy, have currently set the goal of reducing unit energy consumption by 1% yearly on average over the medium to long term.
Adjusted emissions
(1,000 t-CO2)
Note: Greenhouse gas emissions reported based on the Act on Promotion of Global Warming Countermeasures (Greenhouse gas emissions of CO2 from energy sources and CO2 from non-energy sources)
35
(Crude Oil Equivalent) and Unit Energy Consumption at Refineries and Petrochemical Plants
Refineries
(1,000 k)
300,000
crude oil equivalent 1,000 k
Volume of transportation (million t-km) CO2 (1,000 t) (k/million t-km) (1,000 t) 10.0 500 400 300 200 100 0
285,382 282,267 280,336 256,716 268,810 2,389 10 250,000 2,500 2,496 2,462 2,472 2,286 192,740 2,025 8.89 8 200,000 2,000 8.82 8.75 8.91 8.72 10.51
150,000 100,000 50,000 0 1,500 1,000 500 0
3,000
Production volume (1,000 k) Total energy consumption (crude oil equivalent, 1,000 k) Unit energy consumption (/k) (/k) 12
8,431 8,426 8,739 79,567 9.5 77,880 77,531 9.20 9.24 9.11 9.00 9.0 231 218 211 212 8.5
8.0 7.5 (FY)
6 4 2 0
165
2006
2007
2008
2009
2010
1990
2006
2007
2008
2009
2010
(FY)
Total energy consumption in fiscal 2006-2010 was calculated using Idemitsu standards that are based on the Companys March 2007 policy in response to the Petroleum Association of Japans Greenhouse Gas Emissions Calculating, Reporting and Disclosure System for the Oil Refining Industry.
Petrochemical Plants
(1,000 k)
5,000 4,000 3,000 2,000 1,000 0
crude oil equivalent 1,000 k
2,500
Production volume (ethylene equivalent, 1,000 k) Total energy consumption (crude oil equivalent, 1,000 k) (k/t) Unit energy consumption (/k) 0.5
8 % 18,000 t
2% 4,000 t
0.444
2,000 1,500 1,000 500 0
4,191 0.330
4,339
2,350 1,042
0.4
Total 212,000 t
Lubricants 13 % 27,000 t
Fuel oils
1990
2006
2007
2008
2009
2010
77% 164,000 t
(FY)
In accordance with the Act on the Rational Use of Energy, the Idemitsu Group is working toward a target of reducing unit energy consumption by 1% yearly on average over the medium to long term in tandem with promoting energy conservation in the transport sector (as a consignor).
To reduce CO2 emissions from service stations, as of fiscal 2010 Idemitsu had switched to LEDs for lighting for 1,073 sign poles at 4,148 Idemitsu service stations (as of the end of March 2011) throughout Japan. Idemitsu has also started using LEDs for indoor and forecourt lighting at service stations.
36
Environmental Performance
Idemitsu Tanker Co., Ltd., which handles the Groups ocean-going transportation sector, manages five ships. The vessel Nissho Maru, built in fiscal 2004, minimizes energy loss through the use of an additional thrusting fin (AT fin) fitted to each side of its helm to save energy. The Idemitsu Maru, built in 2007, is also equipped with AT fins in addition to an electronically controlled engine (flex engine) for fuel-efficient operation. Moreover, exhaust gas economizers, which are currently installed on our all ships under management, recover exhaust heat from combusted fuel to generate electricity and provide nearly all on-board power needed while the ships are operating at sea.
The Idemitsu Group undertakes the research and development of products and services that contribute to energy conservation and a reduction of greenhouse gases in a variety of fields. For example, we are working on the development of safe, large-capacity all-solid-state batteries to contribute to the greater use of electric cars and help stabilize the supply of green electric power and are also creating lighting applications for OLED materials.
Providing Products and Services That Help Save Energy at the Consumption Stage
Fuel oils account for the majority of Idemitsus petroleum products, while around 90% of the CO2 generated throughout their lifecycle, from crude oil extraction to consumption, is generated at the consumption stage. For this reason, in addition to energy-saving measures in production and product transportation, we also focus our energy conservation efforts on products and services that lower CO2 emissions during consumption.
Idemitsu is promoting its renewable energy business centered on geothermal energy and wind power. In geothermal energy, since fiscal 1996 Idemitsu and Kyushu Electric Power Co., Inc. have been jointly operating the Takigami Power Plant (Kokonoe, Oita Prefecture) that has provided stable supplies of power-generating steam equivalent to an output of 25,000 kW. From June 2010, the plant raised its rated power output to 27,500 kW. In wind power, in March 2010 Idemitsu invested in Futamata Wind Development Co., Ltd., a subsidiary of Japan Wind Development Co., Ltd., and from April 2010 began using electric power generated by this company as a power source for our green electric power business.
For automobiles
For automobiles, we provide engine oils that enhance fuel efficiency through lower viscosity and tires that enhance fuel efficiency by minimizing rolling resistance.
37
Idemitsu is investing in the Carbon Fund targeting greenhouse gas emission reduction projects being implemented by the World Bank and other organizations in developing nations. The table below shows the breakdown of our investments as of the end of fiscal 2010.
Greenhouse Gas Reduction Funds in Which the Group
is Investing
FY Invested Fund Name
(U.S. dollars)
Community Development Carbon Fund, World Bank Japan Greenhouse Gas Reduction Fund Bio Carbon Fund, World Bank
Besides its involvement with the Carbon Fund, Idemitsu is also progressing with the development of programs for the transfer of energy-saving and environmental technologies to emerging countries. In July 2011, Idemitsus Program Organization Research on Efficiency Enhancement Project of Coal-Fired Thermal Power Plant in the Republic of India was adopted from among applications solicited for the Global Warming Mitigation Technology Promotion Project by The New Energy and Industrial Technology Development Organization (NEDO).
Plant performance forecast Determination of usability Optimal coal blending design Technical information data
38
Environmental Performance
Response to Biodiversity
Whenever we explore for oil, produce coal or build new facilities at our refineries or petrochemical plants, the Idemitsu Group performs an environmental assessment to confirm impacts on ecosystems, and when necessary, takes such measures as protecting rare species. In addition, Idemitsu endorsed the Declaration of Biodiversity by Nippon Keidanren (Japan Business Federation) announced in March 2009, and from January 2010 began participating as a Promotion Partner putting this declaration into practice.
the evaluation results of this survey as a reference, we are making further improvements to the management and operation of green spaces at each refinery and petrochemical plant to contribute to biodiversity in every region (for specific details, refer to the Topics section on this page).
A Social and Environmental Green Evaluation System (SEGES) review of green spaces at our business sites conducted by the Organization for Landscape and Urban Green Infrastructure was completed in fiscal 2010 at all our refineries and petrochemical plants in Japan. Using
Adhering to the guidelines of the International Maritime Organization, our ocean-going tankers take in seawater as ballast when they leave port and during transit replace this with ocean water that has little impact on ecosystems. This prevents the disturbance of ecosystems at the port of call. In fiscal 2010, Idemitsu Tanker began considering the onboard installation of equipment for removing organisms contained in ballast water.
Social and Environmental Green Evaluation System (SEGES) Review at All Refineries and Petrochemical Plants
In fiscal 2008, Idemitsus Chiba Refinery and Petrochemical Plant underwent a Social and Environmental Green Evaluation System (SEGES) review and received Stage 2 certification. This marked the first time that any facilities in the petroleum and petrochemical industries underwent SEGES reviews. These reviews were subsequently implemented at all our refineries and petrochemical plants.
Five Grades of SEGES Certication Badges
and Tokuyama Refinery and Petrochemical Plant received Stage 2 certification and the Aichi Refinery and Chiba Refinery and Petrochemical Plant received Stage 3 certification. These recent reviews affirmed that the green areas within our business sites are being utilized as venues for communication with residents of local communities and are also beneficial as wildlife habitats.* Using the results of this survey as a reference, we will make efforts to manage and operate green areas that further contribute to society and the environment.
* It was confirmed that the Ezo red fox (Vulpes vulpes schrencki) inhabits the area around the Hokkaido Refinery and that raccoon dogs and rabbits inhabit the areas around the Aichi Refinery.
In fiscal 2010, the Hokkaido Refinery, Aichi Refinery and Tokuyama Refinery and Petrochemical Plant underwent first-time reviews while the Chiba Refinery and Petrochemical Plant underwent a renewal review. As a result, the Hokkaido Refinery
39
Environmental Performance
Waste Reduction
The petroleum industry (Petroleum Association of Japan) and the petrochemical industry (Japan Chemical Industry Association) are each setting voluntary targets* for reducing landfill waste volume of industrial waste. Because Idemitsu has already attained these targets, we have set the target of keeping the industrial waste ultimately deposited in landfills at or below 0.5% of the volume of waste generated at all refineries and petrochemical plants.
* Voluntary Targets for Reducing the Final Disposal (Landfill) of Industrial Waste The petroleum industry (Petroleum Association of Japan): Reduce the final disposal (landfill) of industrial waste by more than 94% in fiscal 2010 versus fiscal 1990 level. Along with this, realize zero emissions of industrial waste as an independent industry target. Zero emissions is defined as an industrial waste landfill disposal rate of 1% or below. Final disposal (landfill) rate = Final disposal volume/volume of industrial waste generated Petrochemical Industry (Japan Chemical Industry Association): Reduce outsourced final disposal (landfill) of industrial waste by 40% in fiscal 2010 versus fiscal 1990 level. Raise the amount of recycled industrial waste in fiscal 2010 by 15% versus fiscal 1990 level.
0.047%
223,773 t
Recycled volume 59% 133,134 t
Recycling of Catalysts
Our refineries use approximately 2,000 tons of catalysts annually in the process that removes sulfur from heavy oil. Used catalysts with reduced desulfurization activity are regenerated by an outside contractor and used again at our refineries. Utilizing regenerated catalysts allows us to reduce the use of new catalysts by about 20%. Moreover, these used catalysts contain rare metals like molybdenum and vanadium. When used catalysts cannot be regenerated, we sell these as valuable resources.
Departments of plastic processed products are promoting the development of such easily recyclable products made from single-plastic resins and from recycled materials. We have also established a recycling system for used plastic containers. These containers are used as ink containers and for other purposes.
Refineries
(t)
16,600
468 2007
240 2008
281 2009
58 2010 (FY)
Among waste generated at service stations, empty plastic lubricant pails are collected by an outside specialist company for partial recycling into resources. We are also arranging for used batteries to be collected for recycling by companies that are members of the Battery Association of Japan (BAJ).
Petrochemical plants
(t)
5,926
102 2007
93 2008
40 2009
48 2010 (FY)
40
Environmental Performance
Managing CFCs
Our refineries, petrochemical plants and oil depots handle chemical substances subject to the Pollutant Release and Transfer Register (PRTR) system in accordance with the PRTR Law.* These PRTR-designated chemical substances include highly volatile substances, such as benzene and xylene, which partially evaporate into the air when oil is transferred into or removed from storage tanks and when products are loaded onto tanker trucks or ships. Some PRTR-designated chemical substances with low volatility are discharged into water bodies or mixed with other waste materials and transferred to locations outside our business sites. By fiscal 2007, Idemitsus refineries and petrochemical plants reduced atmospheric emissions of PRTR-designated chemical substances by over 70% compared with fiscal 2001 levels.
The Groups refineries and petrochemical plants strictly manage equipment using fluorocarbons as coolants in accordance with related laws and regulations while undertaking ongoing efforts to replace fluorocarbons with alternative coolants. For large-sized equipment that uses chlorofluorocarbons (CFCs) at refineries and petrochemical plants, we have switched to a hydrocarbon coolant substitute for 88.2% of CFC coolants used compared with fiscal 2002. We plan to switch to the use of other types of coolants for the remaining CFCs after 2013.
Controlling PCBs
In accordance with the Law concerning Special Measures for Promotion of Proper Treatment of PCB Wastes, at refineries and petrochemical plants, the Idemitsu Group appropriately stores and manages oil containing polychlorinated biphenyls (PCBs) as well as transformers or other equipment that have these substances attached inside. Under the same law, the treatment of all PCB waste must be completed by July 2016, and accordingly, the Group is steadily carrying out the processing of such waste.
PRTR-Designated Chemical Substances Discharged and Transferred in FY2010 (refineries, petrochemical plants)
CAS No. Name Discharged into atmosphere Discharged into water Discharged into soil Transferred to locations outside business sites
Total 94.8 12.9 9.8 14.3 9.6 8.2 220.3 18.0 19.6 1.3 4.1 2.3 0.4 25.9 0.1 1.3 11.8 179.3 5.8 11.0 7.1 657.7
141-43-5 1332-21-4 80-05-7 100-41-4 1330-20-7 75-45-6 1975-9-2 68-12-2 100-42-5 127-18-4 121-44-8 95-63-6 108-67-8 108-88-3 91-20-3 108-95-2 112-02-7 110-54-3 71-43-2 1336-36-3
2-aminoethanol asbestos 4,4 isopropylidenediphenol (bisphenol A) ethylbenzene xylene chlorodiuoromethane (HCFC-22) dichloromethane N,N-dimethylformamide styrene tetrachloroethylene triethylamine 1,2, 4-trimethylbenzene 1,3,5-trimethylbenzene toluene naphthalene phenol hexadecyltrimethylammonium = chloride n-hexane benzene polychlorinated biphenyls (PCBs) molybdenum and its compounds
0.0 0.0 0.0 9.7 9.6 8.2 120.0 0.0 18.4 0.0 0.0 2.3 0.4 25.8 0.1 0.3 0.0 179.3 5.7 0.0 0.0 379.7
4.1 0.0 0.0 0.0 0.0 0.0 4.3 0.0 0.0 0.0 4.1 0.0 0.0 0.0 0.0 0.0 11.8 0.0 0.0 0.0 0.0 24.3
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
90.7 12.9 9.8 4.6 0.0 0.0 96.0 18.0 1.2 1.3 0.0 0.0 0.0 0.1 0.0 0.9 0.0 0.0 0.1 11.0 7.1 253.7
Note: Chemicals are not listed if the discharged and transferred amounts are less than 0.1 ton per year.
41
Environmental Performance
Pollution Prevention
Atmospheric Pollution Measures in the Manufacturing Sector
Air pollutants discharged from Group facilities include sulfur oxides (SOx), nitrogen oxides (NOx) and soot and dust emitted from boilers and furnaces and volatile organic compounds (VOCs) from crude oil or petroleum product storage tanks and tanker truck loading facilities. Refineries and petrochemical plants carry out operational management to ensure compliance with emission standards under laws and regulations and with emission limits prescribed by pollution prevention agreements with local governments.
VOCs are substances thought to be the cause of atmospheric photochemical oxidants. To reduce VOC emissions, Idemitsu is promoting such measures as shifting to the use of product tanks that have an internal floating roof and installing VOC recovery equipment in tanker truck loading facilities. Through such measures, by fiscal 2007 Idemitsu reduced VOC emissions from refineries, petrochemical plants and oil depots by over 41% from 8,109 tons in fiscal 2000. Since then, maintaining this level has been a management goal.
Initiatives for areas besides refineries, petrochemical plants and oil depots
From January 2011, Idemitsu began to gradually switch from organic-based paints to water-soluble paints, which have little environmental impact, for painting at approximately 4,000 Idemitsu service stations throughout Japan. As a result, Idemitsu will be able to reduce VOC emissions by 220 tons for every 1,000 service stations that are painted. Additionally, Idemitsu Engineering Co., Ltd. engages in the sale of various types of VOC recovery equipment and proposes systems for use at the plants of corporate customers.
To reduce SOx emissions, sulfur content is removed from byproduct gases generated by various types of equipment and is used as fuel, while SOx is removed from smoke using exhaust gas desulfurizers. NOx emissions are reduced through the use of low-NOx burners, two-stage combustion and exhaust gas denitrifiers, while soot and dust are captured by dust collectors.
6,809 6,675
6,000
6,893 6,393
6,786
7,054 7,046
4,000
2,000
264 2006
189 2007
146 2008
120 2009
271 2010
(FY)
42
Environmental Performance
Pollution Prevention
Water Contamination
The Water Pollution Control Law and other regulations, as well as regional agreements on pollution prevention, stipulate emission standards for pH and chemical oxygen demand (COD) and suspended substances in effluent wastewater and for nitrogen and phosphorus emissions for discharge into closed water bodies. Idemitsus refineries and petrochemical plants deploy an integrated wastewater treatment system equipped with an activated sludge processor and activated carbon absorption unit to treat wastewater and carry out strict monitoring to ensure that these emissions standard levels are not exceeded.
Action
Frequency Cost ( million)
Refineries and Petrochemical plants Oil depots Service stations Idle sites Total
2 8 130 1 141
1 0 54 5 60
43
Idemitsu Oil & Gas is carrying out petroleum exploration operations off the coast of Vietnam as a sole operator and petroleum development operations as a joint operator. Exploration operations involve drilling wells to confirm the existence of gas or oil (test drilling) based on underground data gained through seismic surveys. If commercial drilling is deemed viable based on the results of this test drilling, extraction equipment is installed (developed) and the production of oil and gas is carried out. Idemitsu Oil & Gas conducts evaluations of environmental impact prior to test drilling and development to confirm minimal impact on the marine and coastal environments and on society, and operations are then carried out upon obtaining the approval of the Vietnamese government. Effluent water containing oil generated during test drilling and development is treated using a separator. The oil is transported to land for processing and the water is returned to the sea. In the eventuality of a marine oil spillage, the company deploys an oil containment boom to restrict spreading and recovers the spilled oil in accordance with its Oil Pollution Contingency Plan. Since 2006, the company has implemented its own Safety, Health & Environment Management System (SHEMS) and requires that contractors adopt SHEMS as a perquisite for concluding contracts.
Idemitsu Tanker, which operates ocean-going tankers, has established various regulations for safe navigation and marine pollution prevention in accordance with the ISM Code*1, ISO 14001*2 and ISO 9001*3 management systems. To maintain a record of zero oil spillage, in the area of equipment, crews regularly conduct planned onboard maintenance of ballast tanks as a voluntary conservation activity. In terms of personnel, the company provides training and education, including on-board emergency response drills, regular safety and environmental education, for all crew members. Meanwhile, every very large crude carrier (VLCC) operated by Idemitsu Tanker is double-hulled*4. The Idemitsu Maru, completed in 2007, also features a double-hulled fuel tank as an additional measure to reduce the risk of oil spills.
*1 International Safety Management (ISM) Code: International Management Code for the Safe Operation of Ships and for Pollution Prevention *2 ISO 14001: An environmental management system standard of the International Organization for Standardization *3 ISO 9001: A quality management system standard of the International Organization for Standardization *4 Double Hull: The outside part of a ship, including the bottom, is called the hull. The hull of a single-hulled tanker is also the bottom of the cargo tank, so if the bottom of the vessel is damaged, oil immediately starts leaking into the ocean. Double-hulled tankers, as the name implies, have double hulls, so even if some impact results in damage to the bottom, the structure does not allow oil to leak quickly.
Double-Hulled Structure
Outer hull
Inner hull
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Category
Assurance of security
Assure safety through compliance with various rules and regulations when carrying out business, and establish safety and security management systems.
Compliance
Creating Rewarding Workplace Environments Recruitment Employment Promote systematic recruitment according to the business portfolio defined under the Third Consolidated Medium-Term Management Plan. Create a workplace culture that allows employees to have a sense of and learn about the Idemitsu philosophy through work. Promote recruitment according to the medium-term personnel recruitment plan. Achieve a balanced workforce age distribution.
Employee Development
Skills development and education and training system Maternity and childcare leave support for balancing work and personal life Diverse work formats
Provide more flexible work systems and strengthen support for smooth return to work.
Promote the use of armo*1 program to support self-development of employees on maternity and childcare leave.
Examine introduction of discretionary work and flextime systems mainly in research domains. Achieve employment rate of people with disabilities exceeding the legally prescribed rate of 1.8%. Achieve overtime and holiday work hours per person per month of 6.2 hours (average of employees besides management-level employees in each job group) (a decrease of 0.3 hours vs. fiscal 2009 level). Achieve the number of days of annual paid leave taken (average of all employees) of 11 days per person (an increase of 1.0 day vs. fiscal 2009 level). Offer executive candidate training for local staff of the Lubricants Department jointly with the Human Resources Department. Set up a way to show activities of visionary persons who are actively engaged in work with a strong career vision. Promote follow-up activities to encourage employees who did not pass a regular health checkup to receive secondary examinations or treatment and check the number of employees who have actually received recommended examinations or treatment. Enhance skills of management-level employees to deal with mental health problems of subordinates to stop the upward tendency in the number of employees on leave for mental health reasons.
Employment of persons with disabilities Diversity and Equal Opportunities Support for selfmanagement of work hours
Maintain employment rate of people with disabilities above the legally prescribed rate of 1.8%.
Avoid long work hours and encourage employees to take paid leave.
Personnel support for global business development Promoting a dynamic female workforce
Reinforce development of local staff. Foster a corporate culture and raise awareness among employees to support a dynamic female workforce. Increase the ratio of employees who receive follow-up tests or treatment on a voluntary basis after problems are found during a periodic health checkup. Enhance skills of management-level employees to prevent mental health problems of their subordinates and ensure smooth return to work of employees on leave for mental health reasons.
*1 armo is a system provided by Work Life Balance Co., Ltd. to which employees on leave are permitted to log in from their home computers. The system provides (1) the latest information on Company (workplace) activities and information on childcare; (2) a users community and blogs for exchange of information on childbirth and child care; and (3) free e-learning courses that can be taken at home.
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In working to realize its management philosophy, the Idemitsu Group promotes continuous improvement through the PDCA cycle in social and environmental fields as well.
Results (Do)
C A
Evaluation/Improvements (Check/Action)
Implement comprehensive disaster drills based on BCP (for the Tokyo Inland Earthquake). Currently formulating BCP (for the Tokai, Tonankai and Nankai earthquakes). Accidents causing death or injury declined from the previous fiscal year and the majority of accidents were injuries from falls or collisions during transit at work sites. There were no major accidents, but there was an incident in which small amounts of oil leaked into a body of water designated for public use. Potentially serious incidents*2 included those where improvements to work methods are needed due to insufficient adherence to regulations. There were actual instances of inadequate safety confirmation in undertaking new business overseas. There were process-related problems due to a lack of understanding of processes and the inadequate handing down of technologies. There were no major cases involving security laws and regulations, but there were reporting deficiencies related to fire prevention ordinances. Ascertained the current state of compliance promotion at overseas business sites. Formulated a list of compliance items that will be important overseas.
BCP and associated drills functioned effectively in the Great East Japan Earthquake. However, it is necessary to review BCP and drills considering that the earthquake and tsunami were at levels that exceeded assumptions. It is necessary to further raise safety awareness. For facilities with external corrosion, it is necessary to establish an order of priority from the perspective of risk and respond in a systematic and thoroughgoing manner. It is necessary to utilize the lessons learned from damage incurred by other companies in the Great East Japan Earthquake. There is a need to adhere to the fundamentals and thoroughly utilize instructions as stipulated to the fullest, and to establish security management systems for undertaking new businesses. There is a need for handing down the principles and fundamental rules of processes as well as unique technologies in addition to utilizing and handing down information concerning accident-related problems. There is a need to deepen the understanding of ordinances as well. The state of compliance promotion at overseas business sites is generally good. We will call for further attention to items involving human rights and labor, which are emphasized overseas.
Review the BCP (for the Tokyo Inland Earthquake) and formulate a new BCP (for the Tokai, Tonankai and Nankai earthquakes) based on the lessons learned from the Great East Japan Earthquake. Provide repeated education and guidance based on actual places, actual things and actual situations (genba, genbutsu, genjitsu). Make facility risk evaluations and systematic responses, establish tasks based on lessons from the Great East Japan Earthquake and respond in a relevant matter.
Thoroughly adhere to the fundamentals and deploy security management systems in new business fields. Enhance workplace education on the principles and fundamental rules of processes, unique technologies and information concerning accident-related problems. Understand and comply with security laws, regulations and ordinances. Formulate compliance action guidelines (for overseas use).
Hired 63 new graduates as of April 2011 and 13 mid-career employees in fiscal 2010. Added a basic self-development training program. Conducted a self-development training seminar Visionary Women for female employees. Offered training on Idemitsu philosophy and selfdevelopment training for subsidiaries. 1) armo utilization rate: 100% (as of September 1, 2011); number of eligible employees: 11 2) Rate of armo users who have returned to work in fiscal 2010: 91% Introduced these systems at the Advanced Technology Research Laboratories and Electronic Materials Development Center. Employment rate of people with disabilities: 1.97% (As of June 2011)
Received favorable feedback from participants of the two newly established training programs.
The program to support self-development of employees on maternity and childcare leave is well administered in each workplace. Introduction of these systems were limited to certain research domains. Performed verification of these systems with a view to expand their scope to other research domains. Goal attained. Successfully maintained the level above the legally prescribed rate of 1.8%.
Consider implementing a personnel development plan with a focus on balancing work and home life. Verify the effectiveness and how well these systems take root. Create new jobs and work environments making it conducive for people with disabilities to secure stable job opportunities. Maintain overtime and holiday work hours per person per month at or below 6.2 hours. Maintain the number of annual paid leave taken per person at or above 11 days.
Overtime and holiday work hours per person per month: 5.2 hours (a decrease of 1.3 hours vs. fiscal 2009 level) Number of days of annual paid leave taken per person: 10.3 days (an increase of 0.3 day vs. fiscal 2009 level)
Attained improved work efficiency through a review of work utilizing the Work Management System, and overtime and holiday work hours consequently declined. Continue to encourage employees to take paid leave. The training program in collaboration with the Human Resources Department worked well. Consider expanding the scope of the program. It is necessary to implement a variety of initiatives to continue to raise awareness among employees. Consider expanding the scope of follow-up activities, as they have been proven effective at the previously noted business sites. Successfully put a stop to the upward tendency in the number of employees who have been diagnosed with mental health problems and on leave for more than one month. Believed to be the result of our knowledge and skills enhancement efforts targeting management-level employees.
Conducted a one-year training program for one executive candidate of an overseas Group company. Established a bulletin board for visionary persons on company intranet and introduced the dynamic efforts of two female employees. Conducted follow-up activities at business sites where medical staff are permanently stationed in medical offices to encourage employees to receive secondary examinations or treatment and checked the number of employees who have actually received recommended examinations or treatment. Conducted workshop for management-level employees 44 times with a total of 660 participants.
Consider developing local staff as training systems under the Human Resources Department. Foster a corporate culture in which female employees take active roles on a long-term basis. Expand the scope of follow-up activities to include employees working at business sites where no medical staff are permanently stationed as well as employees working overseas. Cultivate awareness, knowledge and skills for mental health care among management-level employees for prevention of occurrence, recurrence and early detection of mental health problems and the promotion of a smooth transition back to work.
*2 Potentially serious incident: An incident that does not result in a major disaster or accident, but that in some cases could have led directly to such a disaster or accident
IDEMITSU Group CSR Report 2011
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Category
Promote wind power business. Promoting our renewable energy business Global Warming Prevention
Strengthen geothermal energy business. Energy conservation in the manufacturing sector Energy conservation in domestic transportation
Supply steam to increase output of Kyushu Electric Powers Takigami Power Plant. Promote operational improvements, equipment modifications and the introduction of energy-saving technologies and reduce unit energy consumption. Promote large-sized shipping lots and reduce unit energy consumption. Final disposal (landfill) volume of industrial waste at all refineries and petrochemical plants was 0.5% or lower. 75% or higher Goal 134 tons
Reduce unit energy consumption by 1% yearly on average over the medium to long term.
Reduce unit energy consumption by 1% yearly on average over the medium to long term. Maintain final disposal (landfill) volume of industrial waste at all refineries and petrochemical plants at 0.5% or lower. Maintain a 75% or higher green procurement rate for office supplies Group-wide. Achieve sales plan of PC recycle-grade resin at an early date. Contribute to energy saving and resource saving by developing and expanding sales of lowvoltage drive/long-operating life OLED materials, high-durability special polycarbonate resin and transparent electrode materials. Expand our lineup of environmentally friendly agribio products.
Reducing final disposal (landfill) volume Green procurement for office supplies Group-wide
Expand sales volume (vs. previous fiscal year) of OLED materials, special polycarbonate resin and transparent electrode materials.
Enhancing lineup of environmentally friendly products and services and expanding sales
Agricultural field: 2 products Livestock field: 1 product Environmental greening field: 1 product Expand sales of energy-saving engine oil for gasoline-engine vehicles and energy-saving engine oil for diesel engine vehicles with DPF (105% vs. previous fiscal year).
Clarifying the effects of environmentally friendly products and services Minimizing Environmental Contamination Risks Reinforcing Environmental Management Infrastructure Measures against chemical substances Implementing longterm environmental strategy
Examine quantifying the environmental impact reduction effects of individual products and services.
Ascertain next-period framework for global warming and biodiversity and trends in domestic systems, and examine Idemitsu Group countermeasures, policies and objectives.
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Results (Do)
C A
Evaluation/Improvements (Check/Action)
Implemented such measures as working to improve the quality assurance structure of contractors. Completed registration of chemical substances subject to REACH regulation (substances handled in quantities of 1,000 or more metric tons/year). Confirmed existing change management systems. The Quality Assurance Headquarters worked to promote the sharing Group-wide of case examples on claims and problems. Undertook marketing activities through call centers; undertook marketing activities through face-to-face proposalbased sales; and achieved sales of 200 million kWh. Power output: More than 100 million kWh Secured agricultural land through the use of a consultant and deliberated on commercialization through collaboration with a local partner but was unable to decide on investment. Increased amount of steam supplied to respond to increased output (25.0 thousand kWh 27.5 thousand kWh) of Kyushu Electric Powers Takigami Power Plant. Refineries: 8.89 /k (0.2% decrease vs. FY2009) Petrochemical plants: 0.343 k/t (1.4% increase vs. FY2009)
Improvement activities resulted in no serious quality-related claims or issues regarding contractors. Implemented registration of a portion of chemical substances handled in quantities of 1,000 or less metric tons/year) ahead of plan. The check revealed there are issues for responding to new product launches or making inroads in undeveloped markets. Verified the effectiveness of information sharing by using tools to share claim and problem information.
Verify the effectiveness of quality assurance systems according to each business domain. Comprehend and respond to domestic and overseas regulations, and revisions (REACH, etc.). Strengthen change management systems to enable response to new product launches or making inroads in undeveloped markets. Continue to promote the sharing Group-wide of claim and problem information and utilization of information sharing tools.
Goal achieved.
Green electric power sales volume: 200 million kWh Realize stable operation of and stable supplies from the Rokkasho-mura Futamata wind power station (power output goal: 100 million kWh). Launch a series of businesses encompassing the securing of agricultural land, manufacturing, logistics and sales. Search for new sites. Continue to promote operational improvements, equipment modifications and the introduction of energy-saving technologies and reduce unit energy consumption. Continue to promote large-sized shipping lots, etc. Attain final disposal (landfill) volume of industrial waste at all refineries and petrochemical plants of 0.5% or lower. Maintain a procurement rate of 80% or above. Sales goal: 176 tons Expand sales volume (vs. previous fiscal year) of OLED materials, special poly-carbonate resin and transparent electrode materials. Begin new sales: Agricultural/environmental greening fields: 2 products Livestock field: 1 product Sales volume of energy-saving engine oil (ZEPRO ECO-MEDALIST) for gasoline-engine vehicles and energy-saving engine oil (Apo Oil DH 2 Series) for diesel engine vehicles with DPF (105% vs. previous fiscal year) Consider introduction of LCA calculation system.
Goal achieved. Promote projects through alliances with local partners. Develop applications for Idemitsus own technologies through internal collaboration. Goal achieved. The effects of initiatives were evident at business sites that operated smoothly. Unit energy consumption rose at some business sites owing to factors such as production adjustments. Unit energy consumption improved in each business department, but overall unit energy consumption increased slightly because of a rise in the proportion of departments with high unit energy consumption. Final disposal (landfill) volume exceeded 1% at one refinery due to temporary factors and therefore we expect to achieve our goal in fiscal 2011. Goal achieved. Goal achieved.
Unit energy consumption of 9.24 k/million t-km (0.4% increase vs. FY2009) Final disposal (landfill) volume exceeded 1% at one refinery but the remaining business sites realized final disposal (landfill) volumes of under 0.5%. 83.5% 138 tons
Goal achieved.
Decision made to undertake sales of 2 products in agricultural field from the next fiscal year.
117%
Goal achieved.
List environmentally friendly products and services and confirm the qualitative effects.
Listing and confirmation of qualitative effects finished, and quantification of these effects will be considered in fiscal 2011. Finish processing 24% (209 tons) of the fiscal 2008 storage volume (871 tons) by the end of June 2011.
Processed 78 tons of PCB waste. Began considering bilateral offset business as a global warming countermeasure. Acquired Social and Environmental Green Evaluation System (SEGES) certification at all refineries and petrochemical plants as a countermeasure for biodiversity.
Continue systematic processing in the run-up to the legal processing time limit (2016). Participate in Global Warming Mitigation Technology Promotion Project. Work to raise SEGES certification grades and undergo an audit for renewing and maintaining this certification.
Goal achieved.
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4.1
Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Processes in place for the highest governance body to ensure conflicts of interest are avoided. Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation. Procedures of the highest governance body for overseeing the organizations identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.
11
1.2
12
4.4
11, 29
2. Organizational Profile
2.1 2.2 2.3 2.4 Name of the organization. Primary brands, products, and/or services. Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures. Location of organizations headquarters. Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. Nature of ownership and legal form. Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). Scale of the reporting organization, including: Number of employees; Number of operations; Net sales (for private sector organizations) or net revenues (for public sector organizations); Total capitalization broken down in terms of debt and equity (for private sector organizations); and Quantity of products or services provided. Significant changes during the reporting period regarding size, structure, or ownership including: The location of, or changes in operations, including facility openings, closings, and expansions; and Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations). Awards received in the reporting period. 7 9 4.8 8 7 4.9 8 4.6 11
11, 12, 16
2.5
2.6 2.7
39
2.8
7 4.13
31
2.9
Stakeholder Engagement
4.14 4.15 List of stakeholder groups engaged by the organization. Basis for identification and selection of stakeholders with whom to engage. Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. 26-32 26-32
2.10
4.17 3.1 3.2 3.3 3.4 Reporting period (e.g., fiscal/calendar year) for information provided. Date of most recent previous report (if any). Reporting cycle (annual, biennial, etc.) Contact point for questions regarding the report or its contents. 2 2 2 Back cover
27
3.9
Environmental
Disclosure on Management Approach 33
Assurance
Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organization and the assurance provider(s).
Aspect: Materials
51 EN1 EN2 Materials used by weight or volume. Percentage of materials used that are recycled input materials. 34 40
3.13
*1 Annual Security Report: Idemitsu lists the relevant pages of its Fiscal 2010 (term ended March 2011) Annual Security Report that is posted in the IR Library section under Investor Relations on the Companys website. *2 Website: Idemitsu lists external awards received in the Activities Report under Environment & Society on the Companys website.
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Among the required disclosure items, only those items that are disclosed in this report are listed. Non-applicable items and items for which information is not disclosed are omitted.
Aspect: Energy
EN3 EN4 EN5 Direct energy consumption by primary energy source. Indirect energy consumption by primary source. Energy saved due to conservation and efficiency improvements. Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. 34 LA13 34 36
Society
Disclosure on Management Approach 15, 30, 31
EN6
37
Aspect: Corruption
34 SO3 Percentage of employees trained in organizations anti-corruption policies and procedures. 15
Aspect: Water
EN8 Total water withdrawal by source.
Aspect: Biodiversity
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. Habitats protected or restored. Strategies, current actions, and future plans for managing impacts on biodiversity. 39
EN13 EN14
Aspect: Compliance
35, 36 35, 36 36 42 43 40 PR1 SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. 15
Product Responsibility
Disclosure on Management Approach 17
18
Aspect: Transport
EN29 Significant environmental impacts of transporting products and other goods and materials used for the organizations operations, and transporting members of the workforce. 34
26
Aspect: Employment
LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region. Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation. 21, 24
LA3
21, 23, 25
PR7
15
Aspect: Compliance
Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. 15
LA9
50
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And third?
This inscription is based on the story of Linji Planting Pine Trees included in The Record of Linji, a collection of the sayings of Linji Yixuan (?-867) who was a Zen monk in the late Tang dynasty. The story goes like this: Once, when Linji was planting pine trees, his master Huangbo asked, Why plant trees so deep in the mountains? Linji said, First, to create good surroundings for the monastery. Second, to make a landmark for later generations. Then he thumped the ground with his mattock three times. That may be so. But once you asked me what was the essence of Buddhism, and I gave you thirty blows of my stick, replied Huangbo. Again Linji thumped the ground with his mattock three times and let out a long exhalation. Huangbo said, Under you, my line will flourish throughout the world. Zen Buddhism believes that Buddha nature is inherent in mundane activities of everyday life (nichiyo soku myoyou) and gives ones whole mind to day-to-day work, such as carrying water and hauling firewood (unsui hansai). Thus, the planting of pine trees by Linji has meaning in the action itself, and its practical benefits, if any, are just by-products. Nonetheless, Linji gave two very practical reasons for his action (for the landscape and as a landmark), as opposed to the teachings of Zen Buddhism. It seems that he tried to surprise his master by returning a practical answer on purpose. The idea of nichiyo soku myoyou had greatly affected Japan, leading to the development of a philosophy of diligence, which recognizes diligence as a noble virtue and finds happiness in working. In modern society, however, things have turned the opposite way. We seek more practical benefits in our daily lives. Less work means convenience, and if we do not have to carry water, nor haul firewood, it is more practical. Convenient lives consume large quantities of energy and resources, causing serious environmental pollution and irreparable destruction of nature. We now place higher value on efficiency than diligence and are forgetting the feeling of happiness once brought by hard work. Sengais inscription asks for the third reason in addition to the two reasons originally provided by Linji and threatens to give 60 blows instead of 30 if one cannot provide an answer. His question reminds us of the forgotten value of dedicating oneself to day-to-day work instead of just pursuing greater convenience and efficiency. Perhaps, there are some hints in this inscription about ways to put a stop to the seemingly endless consumption of energy and resources by modern civilization.
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