The Cosmo Energy Group Management Vision is, "Striving for an infinite tomorrow, developing sustainably in harmony with humanity, society, and our planet." We pursue management transparency and efficiency, prompt execution of business, and thorough risk management and compliance based on the Cosmo Energy Group Code of Conduct, which serves as a specific guideline for implementing and achieving the Management Vision, and other Cosmo Energy Group’s policies, which serve as the general principles for implementing the Code of Conduct and executing business appropriately.
We have also established the Basic Policy on Corporate Governance to ensure transparent, fair, prompt, and decisive decision-making, and we strive continuously to enhance and strengthen corporate governance.
In fiscal 2023, we worked to strengthen our corporate governance system by developing various policies and implementing measures based on Japan’s revised Corporate Governance Code. Going forward, we will continue to revise our policies and systems when deemed necessary to ensure that we deliver effective corporate governance that reflects social demands and the environment surrounding the Company.
Internal Control System
In order to implement the Group Management Vision and the Code of Conduct and to execute duties appropriately and efficiently, the Cosmo Energy Group has established a system of execution of duties by the directors and employees of Cosmo Energy Holdings and its Group companies, the system of risk management and internal audit supporting such execution, and a system to ensure that audits by the Audit and Supervisory Committee are conducted effectively.
To fulfill its Management Vision, the Group has established the Cosmo Energy Group Code of Conduct and strives to ensure ethical corporate conduct based on the spirit of compliance.
We develop and operate a system for risk management and internal auditing supporting such execution and a system for ensuring effective audits by the Audit & Supervisory Committee in order to implement our Management Vision and Code of Conduct and to ensure duties are executed appropriately and efficiently, in accordance with Basic Policy on Internal Control System (Japanese).
Sustainability promotion structure
Aiming to realize our Group Management Vision, the Company has established a Sustainability Strategy Committee and a Sustainability Committee as organizational structures to oversee sustainability and internal control-related activities. The Sustainability Strategy Committee undertakes more focused and proactive initiatives by discussing policies for sustainability activities, including safety, risk management, human rights, and the environment, monitoring and evaluating performance, and reporting important matters to the Board of Directors.
In FY2023, the Sustainability Strategy Committee met a total of seven times and discussed 15 agenda items, of which seven were reported to the Board of Directors for deliberation and further discussion.
Where necessary, the matters discussed by the Sustainability Strategy Committee are shared with Group companiesthrough the Sustainability Liaison Committee. Moreover, the evaluation of efforts to achieve ESG targets has been reflected in executive remuneration since FY2022 as directors and executive officers work to ensure sustainable management. In addition, committees have also been established at each core operating company and semi-core operating company* according to their respective functions. These committees work with the Company’s Sustainability Strategy Committee to ensure that all Group companies are on the same page.
Governance System (Internal Control) Promoting Sustainability and Overview of the Sustainability Strategy Committee
PDCA cycle
We have defined KPIs for each of the material issues we have identified, setting annual targets
and reporting progress to both the Sustainability Strategy Committee and the Board of Directors
once every six months. The details of reports are then relayed back to Group companies through
the Sustainability Liaison Committee, ensuring effective implementation of the PDCA cycle.
