History of the Cosmo Oil Group Environmental Activities the Cosmo Oil Group Is an Energy Company Group Consisting of Cosmo Oil Co., Ltd

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History of the Cosmo Oil Group Environmental Activities the Cosmo Oil Group Is an Energy Company Group Consisting of Cosmo Oil Co., Ltd The Cosmo Oil Group Profile The Cosmo Oil Group profile History of the Cosmo Oil Group environmental activities The Cosmo Oil Group is an energy company group consisting of Cosmo Oil Co., Ltd. and its 134 subsidiaries and affiliated companies. 1986 Cosmo Oil Co. established through the Through oil development, petroleum (mainly refining and sales), power merger of Daikyo Oil Co., Maruzen Oil Co., and the former Cosmo Oil (Cosmo Refining), production, and other businesses, its sales in fiscal 2002 reached 1.9 trillion yen a subsidiary of both companies. (about U.S.$15.8 billion), mostly in the Japanese domestic market. Cosmo’s 1993 “Global Environment Action Program” share of all petroleum products combined in Japan is 13.6% (ranking third in devised. 1994 The first annual Global Environment Japan’s petroleum industry). Committee meeting held. In Japan, Cosmo Oil Co. operates, besides its headquarters, 9 branch Cosmo Oil starts creating environmental offices, 4 oil refineries, and a research institute, as well as 5,272 service stations targets annually, based on “Global Environmental Initiatives” document. including franchisees. 1996 “Environmental Action Plan Follow-Up Overseas, there are Cosmo Oil Group crude oil development companies in Report” devised. the Middle East and Australia, as well as subsidiaries in the United States, the 1997 Sakaide Oil Refinery obtains ISO 14001 certification. United Kingdom, and Singapore engaged in purchasing crude oil and other Environmental impact assessments petroleum products and providing business services. begin at Yokkaichi Kasumi Electric Power Plant (IPP). 1998 ISO 14001 certification obtained at three of Business fields Sales breakdown Cosmo’s oil refineries and Cosmo Oil development (consolidated) Matsuyama Oil Co. 1999 Sales launch of “Terra Series” Petroleum; Oil refining and marketing by field (billion yen) biodegradable lubricating oil. Others; Power, gas and others Other Oil development Sales launch of “Shinsei” chlorine-free 62.06 billion yen 9.77 billion yen diesel engine oil. 3.3% 0.5% 2000 Benzene levels in gasoline reduced to less than 1 volume %. 2001 “Cosmo Oil Environmental Report 2001” published. 2002 Cosmo the Card Eco credit card program launched. Sales launch of diesel with 50 ppm Petroleum sulfur content. 1830.94 billion yen 96.2% → P.51 Major overseas operations Major facilities in Japan • Cosmo Oil International Pte., Ltd. (Singapore) • Cosmo Lubricants (Taiwan) Co., Ltd. • Beijing Representative Office • Cosmo Oil of U.S.A., Inc. • Cosmo Oil (U.K.) Plc. • Sapporo Branch (225) • Sendai Branch (584) • Osaka Branch (794) • Tokyo Branch (773) • Kanto Branch (700) • Fukuoka Branch (685) • Research and Development Center ■ Chiba Refinery • Abu Dhabi Office • Nagoya Branch (693) • Abu Dhabi Oil Co., Ltd. ■ Yokkaichi Refinery • Qatar Petroleum Development Co., Ltd. ■ Sakai Refinery • United Petroleum Development Co., Ltd. • Cosmo Oil Ashmore Ltd. • Mubarraz Oil Co., Ltd. • Takamatsu Branch (336) ■ Sakaide Refinery • Hiroshima Branch (362) 1 Figures in parentheses indicate number of service stations Editorial Policy and Scope of Report Contents Editorial policy The Cosmo…………………………………………………… Oil Group Profile 1 ● This report is issued annually to describe the activities of the Cosmo Oil Group Editorial…………………………………………………… Policy and Scope of Report 2 from the perspective of “social responsibility,” with environmental protection as Message…………………………………………………… from the Chairman 3 the main focus, and to report the results of activities to our stakeholders. Our Executive…………………………………………………… Summary 5 stakeholders are described on page 8. Business…………………………………………………… Processes and Stakeholders 8 ● In order to achieve its mission of “harmony and coexistence” with society, Vision…………………………………………………… and Management Strategy 9 the Cosmo Oil Group is committed to integrated activities, including providing Corporate…………………………………………………… Vision 9 products that have low environmental impacts through their entire life cycles, Medium-Term…………………………………………………… Plans 10 ensuring a stable supply of petroleum, and preventing accidents, etc. For this Corporate…………………………………………………… Behavior Guidelines 11 reason, in this report, examples of both environment and society initiatives are Committed…………………………………………………… to Environmental Excellence 13 reported together in one section, entitled “Environmental and Social Oil and…………………………………………………… the Environment—Our Perspective 14 Performance.” Working…………………………………………………… for a Better Global Environment 15 ● Two features of the Cosmo Oil Group’s environmental activities are promoting Reducing…………………………………………………… Impacts from Business Operations 15 the effective use of oil resources and developing new technologies. This report Reducing…………………………………………………… Impacts during Product Use 17 describes our efforts to develop environmental technologies and our new Integrated…………………………………………………… Energy Projects 19 energy businesses. Enhancing…………………………………………………… Our Environmental Accounting ● The Environmental Reporting Guidelines released by the Japanese Ministry System…………………………………………………… 20 of the Environment were used as a reference to ensure that information is Expanding…………………………………………………… Our Environmental Business 21 disclosed in a systematic way. Also, guidelines on “sustainability reporting” Working…………………………………………………… with Customers and Society 23 issued by the Global Reporting Initiative (GRI) were used as a reference for Working…………………………………………………… with Customers 23 reporting on the “triple bottom line” (the environment, society, and the Working…………………………………………………… with Society 25 economy), to allow our stakeholders to see our activities from various Working…………………………………………………… with the International Community 27 perspectives. Communicating…………………………………………………… with the Customer and ● Unless stated otherwise, financial information is in Japanese yen (120.20 yen Community…………………………………………………… 28 per U.S. dollar, 129.70 yen per Euro). The metric system is used for measures. Environmental…………………………………………………… and Social Performance 29 Tons referred to in this report are metric tons (1,000 kg). Progress…………………………………………………… Report of Medium-Term ● The content and page structure of this English version of the report has Environmental…………………………………………………… Plan 29 been modified slightly from the original Japanese version. Detailed data on Environmental…………………………………………………… Impacts from business each company site have been omitted (these data can be accessed at our activities……………………………………………………31 website, www.cosmo-oil.co.jp/eng/envi/2003/index.html), background Production,…………………………………………………… Transport, and Storage of information has been added on such issues as energy and the business Crude…………………………………………………… Oil 33 environment surrounding the Cosmo Oil Group, and a summary of key Oil Refineries…………………………………………………… and Offices 35 performance indicators has also been added. Distribution…………………………………………………… 41 Scope of report Service…………………………………………………… Stations 42 Working…………………………………………………… with Employees 43 ● This report mainly covers environmental and social activities of the Cosmo Economic…………………………………………………… Performance 45 Oil Group in fiscal 2002 (April 1st, 2002 to March 31st, 2003); however, Financial…………………………………………………… Performance 45 some of our activities in fiscal 2003 are included. There was no significant Cosmo…………………………………………………… Oil Group Medium-Term change in our business operations during the reporting term. Management…………………………………………………… Plan 46 ● The scope of data in this report covers the Cosmo Oil Group, consisting of Environmental…………………………………………………… Accounting 47 Cosmo Oil Co. plus 134 subsidiaries and affiliated companies. Environmental…………………………………………………… Activities—Milestones 51 ● The data presented in “Environmental Impacts from business activities” (page Oil Refining—Terminology……………………………………………………52 31) and “Environmental accounting” (pages 47–50) in this report cover oil Third-Party…………………………………………………… Comment 53 refineries, our Research and Development Center, offices, and Cosmo Independent…………………………………………………… Review 54 Matsuyama Oil Co. Readers’ Survey and Results from Last Year ● The data presented on pages 35–40 cover oil refineries. 2 Message from the Chairman As a corporate citizen and member of the global energy industry, the Cosmo Oil Group is working to help make society more sustainable. We at the Cosmo Oil Group are building our volume of active sludge discharged from oil business with the awareness that our most refineries and installed it in our Sakaide Oil important mission in society is to supply energy in Refinery. We are continuing our efforts to address a stable and efficient way for use in everyday life the issue of climate change and were able to and for the advancement of industry. Fossil reduce unit energy consumption at four refineries fuels—the petroleum that forms our core by 9.7% compared to fiscal 1990 (an additional business—have given many benefits to humanity. 0.6 point improvement over our achievement in But it is also true that our world’s mass fiscal 2001). To reduce environmental impacts consumption of oil has enormous impacts on the incurred during use, we have succeeded in global environment. Thus, we recognize that for developing low-sulfur diesel. We started trial our group in oil industries, environmental shipments in the Tokyo area of diesel fuel with a protection is just as important a responsibility to reduced sulfur content of 50 ppm in September society as providing a stable supply
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