Cosmo Energy Holdings (5021) ESG update summary

Sustainability governance

• The 7th medium-term plan through FY2025 links material issues and HRX, DX and GX transformations to Vision 2030 enterprise-value goals.

• The Sustainability Strategy Committee monitors materiality and ESG discussions through PDCA; FY2023–24 topics included governance, GX, biodiversity and human rights.

• ESG data collection and third-party assurance aligned with financial-reporting scope feed the annual securities report; disclosure systems are being developed for future SSBJ compliance.

Corporate governance

• Two independent outside directors appointed in June 2024 brought independent representation to 50% of the Board; the goal is a majority, with more corporate-management experience to strengthen monitoring.

• 2022 Board reforms emphasized medium- to long-term enterprise value and delegated significant business execution authority to the Executive Officers’ Committee.

• TSR-linked incentives began in 2018 and ESG evaluation entered annual incentives in 2022; FY2023–25 share incentives link to TSR versus TOPIX growth and net debt-to-equity, following a June 2024 framework review.

GX and decarbonization

• Net-zero carbon emissions target covers Scopes 1, 2 and 3 by 2050; the 2030 GHG reduction target is at least 30% versus FY2013.

• FY2023 Scope 1 and 2 emissions were 12% below FY2013; petroleum emissions fell 340,000 tons YoY, supported by efficiency improvements and reduced equipment operation during scheduled maintenance.

• Two JOGMEC-selected CCS projects began FS/FEED studies in October 2024; FID is targeted by FY2026 and operations by FY2030, with annual storage capacities of ~3.0m and ~5.0m tons.

• FY2023 wind capacity was 295 MW, with two projects totaling ~60 MW under construction; CO₂ reduction contribution is targeted at ~1.3m tons in FY2030.

• Used-cooking-oil SAF supply chain received ISCC CORSIA and ISCC EU certifications in November 2024; Sakai capacity is planned at 30,000 kl annually, including 24,000 kl in FY2025. An Iwatani alliance is developing hydrogen stations and supply chains.