Initiatives to Achieve Net Zero Carbon
In 2021, the Group issued its 2050 Net Zero Carbon Declaration, and set the goal of reducing Scope 1 and 2 greenhouse gas (GHG) emissions from the Group's business activities to net zero by 2050. In 2022, we established a roadmap that outlines the required initiatives and processes to achieve this goal.
Then, with the release of the Seventh Consolidated Medium-Term Management Plan, we announced that we would expand the scope of our Net Zero Carbon Declaration to include supply chain emissions, thereby broadening the goal to include Scope 3 emissions. Accordingly, the Group is investigating initiatives to reduce GHG emissions and ways to achieve them.
Roadmap for Achieving Net Zero Carbon by 2050
Our Roadmap for Achieving Net Zero Carbon by 2050 was prepared using a scenario analysis recommended by the Task Force on Climate-related Financial Disclosures (TCFD), along with an analysis of the Group’s external and internal environments.
Addressing Climate Change — Support for the TCFD Recommendations
Pursuing Carbon Neutrality in Collaboration with the Oil Industry
As members of the Petroleum Association of Japan, which is made up of oil refining and wholesaling companies, Cosmo Oil and Cosmo Oil Marketing are participating in the association’s Vision for Carbon Neutrality in the Petroleum Industry, and taking action accordingly.
Vision for Carbon Neutrality in the Petroleum Industry
Japan’s oil industry is accelerating its efforts to decarbonize the petroleum supply chain and products. While aiming for net zero CO2 emissions (Scope 1 and 2 emissions) arising from business activities, the industry is actively working on research and development and social adoption of innovative decarbonization technologies that can utilize existing infrastructure, such as (1) CO2-free hydrogen; (2) synthetic fuels; and (3) carbon capture and storage/utilization (CCS/CCU). By also taking on the challenge of achieving net zero Scope 3 emissions arising from the products supplied, the industry is working to contribute to carbon neutrality for society as a whole.
For details, visit the Petroleum Association of Japan website.
If our industry organization were to adopt a position that is significantly weaker or inconsistent with the Cosmo Energy Group Code of Conduct, we would engage with the organization. If the organization failed to revise its position, our Code of Conduct would take precedence.
Progress in Reducing GHG Emissions
The Cosmo Energy Group has always positioned the reduction of GHG emissions as an important issue and we have been working to reduce CO2 emissions throughout the supply chain. In FY2023, the first year of the Seventh Consolidated Medium-Term Management Plan, actual GHG emissions (Scopes 1 and 2) amounted to 7.11 million tons of CO2, an 11.8% reduction compared to FY2013 (direct CO2 reduction of 950,000 tons). This was the result of increased efficiency of our manufacturing division (improved energy consumption intensity) and a decrease in crude oil processing due to regular maintenance.
Furthermore, as part of green transformation (GX), one of the management foundation transformation themes set forth in the Seventh MTMP, we are working towards our goal of reducing GHG emissions by 30% by 2030 compared to FY2013 (including Scopes 1 and 2, and reduction contributions). In FY2023, we achieved a 15% reduction compared to FY2013, which includes contributions from biofuels and renewable energy, equating to a total CO2 reduction of 480,000 tons.
Cosmo Energy Group's CO2 Emissions1
(10,000 tons of CO2)
| FY2013 | FY2021 | FY2022 | FY2023 | |
|---|---|---|---|---|
| Scope 1 | 774 | 769 | 729 | 689 |
| Scope 22 | 32 | 24 | 24 | 22 |
| Scope 1 & 2 total | 806 | 793 | 753 | 711 |
| Scope 33 | 8,197 | ー | 7,320 | 7,605 |
Total Group reduction contribution4
(10,000 tons of CO2)
| FY2013 | FY2021 | FY2022 | FY2023 | |
|---|---|---|---|---|
| Avoided emissions | -23 | -43 | -44 | -48 |
1 Scope of data coverage: A total of 43 companies, including Cosmo Energy Holdings Co., Ltd. and its consolidated subsidiaries (Cosmo Oil, Cosmo Oil Marketing, Cosmo Energy Exploration & Production, Maruzen Petrochemical, etc., as well as subsidiaries and affiliated companies). In addition, the CO2 emission intensity used for calculation was reviewed in FY2023.
2 Calculated value of market-base
3 A review of calculation categories was conducted, with retrospective calculation for all categories in FY2013 and FY2022.
4 The total CO2 reduction contribution from biofuels (avoided CO2 emissions attributable to ETBE-blended gasoline) and renewable energy (avoided CO2 emissions based on Total wind power sales × Emission factor for each fiscal year (national average)).
Energy Saving Activities
For energy consumption intensity at Group refineries in fiscal 2023, there was an approximately 2% improvement compared to the previous fiscal year. This was due to the promotion of energy conservation activities (such as the consideration of optimal operation of utility equipment).
CO2 emissions decreased by approximately 10% compared to the previous year due to this decrease in equipment operation associated with periodic maintenance, etc. In fiscal 2024, we will continue to pursue energy savings by improving both equipment and methods.
Please refer to ESG Data：Energy consumption for details of energy usage and energy consumption intensity.
Developing Environmentally Friendly Businesses
Cosmo Denki Green for Households
With the Cosmo Denki Green program for households, consumers can purchase CO2-free electricity that is essentially 100% renewable energy. This is done by offering non-fossil fuel energy certificates for electricity derived from renewable energy that are equivalent to or more than the customer’s annual electricity consumption. This option results in a CO2 emission coefficient of zero. To operate Cosmo Denki Green, Cosmo Oil Marketing procures wind-generated electricity from Cosmo Eco Power and supplies it to customers.
Moreover, since a portion of the electricity sales is donated to the COSMO Eco Fund, Cosmo Denki Green customers are also able to support the environmental activities of this fund.
Cosmo Denki Business Green for Corporations
Cosmo Oil Marketing provides renewable electricity not only to residential customers but also to corporate customers. The company offers the Cosmo Denki Business Green plan, which uses Cosmo Eco Power’s wind-generated electricity, to corporate customers, seeking to meet their low voltage, high voltage and extra high voltage needs. They can easily procure electricity that complies with Japan’s Act on Promotion of Global Warming Countermeasures and the RE100 initiative.
In addition to an option that provides 100% renewable electricity, the power plan also offers an option where companies can choose renewable energy rates of 30%, 50%, or 70%. This allows us to meet the needs of customers who want to gradually expand their adoption of renewable energy. As an option for Cosmo Denki Business Green contracts, there is also a Solar Plan with a power purchase agreement (PPA), which allows companies to install solar power equipment at their facilities without any initial investment. Some of the solar power generated can be used directly by the customer, and it can also be used as an emergency power source in the event of a natural disaster.
Cosmo Zero Carbon Solution
Cosmo Oil Marketing offers the Cosmo Zero Carbon Solution. This one-stop service helps clients to effectively adopt renewable energy and EVs, offering solutions tailored for businesses and local governments.
For clients that want to use renewable energy, the company offers Cosmo Denki Business Green services, which include on-site solar PPA,1 and the ability to manage excess power with batteries and an EMS.2 For electric vehicle needs, the company offers EV leasing (Cosmo My Car Lease), EV charger installation, and EV car-sharing services.
These services aim to reduce CO2 emissions and lower contract power and electricity usage by facilitating the installation of higher efficiency equipment. Cosmo Oil Marketing will continue to support businesses and local governments as they strive to comply with decarbonization regulations and to overcome challenges such as reducing costs by saving energy.
1. Power purchase agreement (PPA): A contract where the equipment installation provider installs a solar system on the customer’s property and the customer purchases the generated electricity.
2. Energy management system (EMS): A system for optimizing battery charging and discharge.
