ENEOS: ENEOS : ESG Data Book 2024as a PDF file

ESG DATA BOOK 2024 Contents ENEOS REPORT ESG DATA BOOK 2024 Editorial Policy 2 ENEOS Group Philosophy / ENEOS Group Code of Conduct 4 ESG Management 6 Environmental 21 Environmental Management 22 Prevention of Global Warming 29 The 3Rs (Reduce, Reuse, Recycle) 43 Management of Chemical Substances 51 Prevention of Environmental Pollution 54 Biodiversity 58 Our Response to Climate Change Risks and Opportunities (TCFD) 63 Social 72 Safety 73 Human Rights 80 Human Resource Development 89 Health 94 Healthy Work Environment 100 Quality 111 Supply Chain Management 115 Social Contribution 123 Governance 132 Corporate Governance Framework 133 Compliance 149 Data 154 Governance, Environmental and Social Data 154 Independent Practitioner's Assurance Report 167 Comparative Table with GRI Standards 168 ENEOS REPORT ESG DATA BOOK 2024 1 ┃ ESG Management ｜ Environmental ｜ Social ｜ Governance ｜ Data ｜ Comparative Table with GRI Standards ┃ Editorial Policy This website was developed to inform stakeholders of specifc challenges, approaches and initiatives of the ENEOS Group in terms of environmental, social and governance (ESG). In the editorial process, we referenced the Global Reporting Initiative (GRI) Standards, a set of international reporting guidelines, and the Environmental Reporting Guidelines (2018 edition) published by Japan's Ministry of the Environment, as well as the assessment items of major ESG rating organizations. Each year, we continue to expand our disclosure of important ESG-related information. We also publish the Integrated Report , which includes information about our medium- to long-term growth strategy (value creation story). We encourage readers to use the Integrated Report in conjunction with this website. Scope This website covers ENEOS Holdings, Inc., ENEOS Corporation, ENEOS Xplora Inc. 1 , JX Advanced Metals Corporation 2 , ENEOS Materials Corporation, ENEOS Power Corporation, ENEOS Renewable Energy Corporation (hereinafter, "ENEOS Holdings and principal operating companies"), as well as other subsidiaries and afliated companies, for a total of 748 companies. In cases where the scope is diferent from the above, the relevant scope is indicated. The trade name in English was changed from JX Nippon Oil & Gas Exploration Corporation to ENEOS Xplora Inc. on January 1, 2025. 2 The trade name in English was changed from JX Metals Corporation to JX Advanced Metals Corporation on May 14, 2024. Period Covered This website covers fscal 2023 (April 1, 2023 to March 31, 2024). However, some information that pertains to April 2024 and later is also included. Reporting/Disclosure Date January 2025 (Previous issue: January 2024, next disclosure: January 2026) Guidelines Used as Reference Global Reporting Initiative (GRI) Sustainability Reporting Standards Comparative Table with GRI Standards Environmental Reporting Guidelines (2018 edition), Ministry of the Environment, Japan Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) Enhancing Reporting Reliability Environmental and social information for fscal 2023 on this ESG Data Book website indicated with has been assured by an independent practitioner to ensure objective and reliable reporting. ENEOS REPORT ESG DATA BOOK 2024 2 ┃ ESG Management ｜ Environmental ｜ Social ｜ Governance ｜ Data ｜ Comparative Table with GRI Standards ┃ Inquiries ENEOS Holdings, Inc. Investor Relations Department 1-2 Otemachi 1-chome, Chiyoda-ku, Tokyo 100-8161, Japan Website (inquiries) https://www.hd.eneos.co.jp/english/contact/ Disclosure Media Framework ENEOS REPORT ESG DATA BOOK 2024 3 ┃ ESG Management ｜ Environmental ｜ Social ｜ Governance ｜ Data ｜ Comparative Table with GRI Standards ┃ ENEOS REPORT ESG DATA BOOK 2024 4 ┃ ESG Management ｜ Environmental ｜ Social ｜ Governance ｜ Data ｜ Comparative Table with GRI Standards ┃ https://www.hd.eneos.co.jp/english/about/conduct.html ENEOS REPORT ESG DATA BOOK 2024 5 ┃ ESG Management ｜ Environmental ｜ Social ｜ Governance ｜ Data ｜ Comparative Table with GRI Standards ┃ ESG Management Basic Approach To achieve sustainable growth, we must achieve social recognition of our value by building more credibility with our stakeholders through our response to social needs and the resolution of social issues. The ENEOS Group has accordingly formulated the Basic Policy for ESG Management. Basic Policy for ESG Management ESG management at the ENEOS Group involves formulating management and business strategies based on risks and business opportunities and creating both economic value (profts) and social value (resolution of social issues) through our business in order to realize the ENEOS Group Philosophy. The ENEOS Group is a group of companies that strives to earn the trust of stakeholders through the implementation of ESG management in our business operations. ESG Management Structure Pursuant to its Basic Policy for ESG Management, the ENEOS Group has established a structure in which the ENEOS Holdings Executive Council, chaired by the CEO of ENEOS Holdings, analyzes management risks and business opportunities and confrms the status of responses to identifed risks and material ESG issues. Process for Identifying Risks and Material Issues and Confrming Response Status 1 ． Comprehensive discussions (held annually in the fourth quarter) (see (1) in diagram below) The Executive Council comprehensively discusses the following matters to ensure efective discussion and quick decision-making. Material risks identifed through the enterprise risk management (ERM) system Material ESG issues identifed through ESG risk analysis Internal control risks identifed through the internal control system 2 ． Determination of responses and status confrmation (annually in the frst quarter) (see (2) in diagram below) Under the guidance of the departments in charge at ENEOS Holdings, the relevant departments and principal operating companies work together in a cross-functional manner to develop and implement responses for the identifed risks and material issues. The Executive Council confrms the status of responses for the previous fscal year and determines the responses for the current fscal year. 3 ． Discussion of business opportunities (as needed) (see (3) in diagram below) The Executive Council discusses business opportunities when it deliberates on the Medium-Term Management Plan and fscal year business plans, as well as the budgets based on these plans. 4 ． Reporting to the Board of Directors (as needed) (see (4) in diagram below) The Board of Directors passes resolutions on management, the Medium-Term Management Plan and budgets, and also performs monitoring and supervision by receiving reports (twice a year, in principle) on risks and material issues determined by the Executive Council and on the status of responses. 5. Sharing with Group companies (as needed) (see (5) in diagram below) We share and communicate the identifed risks and material issues with all Group companies, and each Group company refects them in their business strategies. ENEOS REPORT ESG DATA BOOK 2024 6 ┃ ESG Management ｜ Environmental ｜ Social ｜ Governance ｜ Data ｜ Comparative Table with GRI Standards ┃ ENEOS Group ESG Management Structure For details, see Enterprise Risk Management (ERM) . For details, see Verifying and Identifying Material ESG Issues. 3 For details, see Internal Control . Example: Internal Control Department and Legal & Corporate Afairs Department work together to build and operate a comprehensive internal control structure Verifying and Identifying Material ESG Issues The ENEOS Group identifes material ESG issues every year based on various guidelines as well as the assessment items and weightings of ESG assessment organizations. For fscal 2024, we identifed 10 material ESG issues using resources such as the Sustainability Accounting Standards Board (SASB) guidelines for each business area, prioritizing the degree of impact on society as well as the degree of impact on our business, taking into account factors such as our discussions and consideration of our Long-Term Vision and the third Medium-Term Management Plan. In addition, departments responsible and KPIs are set for each material ESG issue, and the progress of KPIs and the results of measures for material ESG issues are reported to the Executive Council and the Board of Directors. Identifcation Procedure for Material ESG Issues ENEOS REPORT ESG DATA BOOK 2024 7 ┃ ESG Management ｜ Environmental ｜ Social ｜ Governance ｜ Data ｜ Comparative Table with GRI Standards ┃ Material ESG Issues Identifed for Fiscal 2024 In descending order of assessment score Category Material ESG issues Environmental Contribution to the development of a decarbonized society Social Ensuring safety / Health enhancement Governance Compliance Social Compliance with international principles on human rights Social Retaining and developing human resources Governance Appropriate structuring and operation of corporate governance Environmental Appropriate understanding and management of biodiversity risks Social Diversity, equity and inclusion (DE&I) Environmental Contribution to the development of a recycling-oriented society Social Communication with stakeholders (investors, etc.) ENEOS REPORT ESG DATA BOOK 2024 8 ┃ ESG Management ｜ Environmental ｜ Social ｜ Governance ｜ Data ｜ Comparative Table with GRI Standards ┃ Status of Responses to Material ESG Issues For fscal 2023, we set 16 specifc targets (KPIs) for nine material ESG issues. Thirteen of the targets were achieved and three were not. For fscal 2024, we have identifed 10 material ESG issues and set 20 targets (KPIs), which we are taking steps to achieve. Fiscal 2023 Response Status Evaluation: Achieved/Steady progress Not achieved Category Material ESG Initiative Target (KPI) Results/Progress Applicable Issues companies Environmental Contribution to Reduction in Reduction in Emissions: 25.41 ENEOS, ENEOS the development CO 2 emissions CO 2 million tons Xplora, JX of a d