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CSR Management

Basic Approach

The JXTG Group recognizes that society's trust is essential for achieving sustainable growth as a company. With this understanding, we conduct ongoing CSR activities aimed at contributing to the development of communities and helping to ensure a vibrant future.

Basic Policy for CSR

In order for JXTG Group executives and employees to realize the mission set forth in the JXTG Group Philosophy, they follow in good faith the JXTG Group Code of Conduct, which is based on our five core values. In this way, we aim to ensure that we are a corporate group worthy of the trust of our stakeholders.

Priority Fields for CSR Activities

Based on the 14 standards in the JXTG Group Code of Conduct, we have established eight priority fields for CSR activities.

The JXTG Group Code of Conduct

  1. 1.Compliance
  2. 2.Safety and security
  3. 3.Environmental conservation
  4. 4.Health enhancement
  5. 5.Respect for human rights
  6. 6.Product and service quality
  7. 7.Equitable and fair transactions
  1. 8.Appropriate relationships with governments and public administrations
  2. 9.Avoidance of conflicts of interest
  3. 10.Corporate asset protection and management
  4. 11.Information management and disclosure
  5. 12.Establishment of a healthy work environment
  6. 13.Contribution to the development of civil society
  7. 14.Actions for violations and measures to prevent recurrence

Priority Fields for CSR Activities

  • High Ethical Standards
  • Compliance
  • Safety and Environment
  • Human Rights
  • Human Resource Development
  • Health
  • Quality
  • Social Contribution

Correlation with United Nations Sustainable Development Goals (SDGs)

The JXTG Group strives to realize the SDGs adopted at the United Nations summit in September 2015.

The Group's Top CSR Priorities (Material Issues)

The JXTG Group has identified nine issues as top CSR priorities (material issues) from two viewpoints: priority from an external perspective and priority from the Group's internal perspective. In addition, we have established 12 targets (KPI) for the top CSR priorities. Going forward, we will make efforts to achieve each KPI through the Group's CSR promotion system. A heart symbol is used to indicate initiatives for the Group's top CSR priorities.

Considerations at each step

STEP1　Identify social issues to consider

Following an exhaustive review of various guidelines (GRI G4 Guidelines, ISO 26000, etc.) as well as the assessment items of ESG research providers and the Sustainable Development Goals (SDGs), 32 social issues were identified for consideration.

STEP2　Prioritize from an external perspective

Priority from an external perspective was assessed for the 32 social issues identified at Step 1, taking into account such factors as the assessment weight given by ESG research providers.

STEP3　Prioritize from the Group's perspective

Priority from the Group's internal perspective was assessed, taking into account such factors as reviews of the expert committees within the CSR promotion structure, as well as the guidelines of the U.S. Sustainability Accounting Standards Board (SASB).

STEP4　Identify the Group's top CSR priorities

After assessing priority from an external perspective and priority from the Group's internal perspective, nine issues of particularly high priority were identified as the Group's top CSR priorities.

Diagram of the Group's Top CSR Priorities

Table of the Group's Top CSR Priorities (Material Issues)

Category The Group's top CSR priorities Initiative Target (KPI) Achievement target (fiscal year) Applicable companies
Environment Development of a low-carbon society Reduction in CO2 emissions
(Reduction amount through own efforts)		 Reduce by 2.72 million tons compared to 2009 Fiscal 2019 Core operating company groups
NIPPO (Total of 38 companies)
Development of a recycling-oriented society Reduction in landfill disposal Ratio of landfill disposal Maintain zero emissions
(less than 1%)		 Fiscal 2019 Core operating company groups
NIPPO (Total of 41 companies)
Society Ensuring safety Reduction in occupational injuries Zero occupational fatalities Fiscal 2018 Core operating company groups
NIPPO (Total of 45 companies)
Respect for human rights Human rights awareness 100% participation rate in human rights training Fiscal 2018 JXTG Holdings, JXTG Nippon Oil & Energy, JX Nippon Oil & Gas Exploration, JX Nippon Mining & Metals (Total of 4 companies)
Human resource development Development of human resources responsible for enhancing corporate value Implementation of effective training based on human resource development plan Fiscal 2018 JXTG Holdings, JXTG Nippon Oil & Energy, JX Nippon Oil & Gas Exploration, JX Nippon Mining & Metals (Total of 4 companies)
Promotion of diversity and inclusion Advancement of women in the workplace Women comprise at least 25% of newly hired graduates by fiscal 2020 Fiscal 2020 JXTG Holdings, JXTG Nippon Oil & Energy, JX Nippon Oil & Gas Exploration, JX Nippon Mining & Metals (Total of 4 companies)
Advancement of employees with disabilities At least 2.2% employment rate of people with disabilities Fiscal 2018 JXTG Holdings, JXTG Nippon Oil & Energy, JX Nippon Oil & Gas Exploration, JX Nippon Mining & Metals (Total of 4 companies)
Promotion of work-life management Promotion of workstyle reforms At least 80% of annual paid leave days taken Fiscal 2018 JXTG Holdings, JXTG Nippon Oil & Energy, JX Nippon Oil & Gas Exploration, JX Nippon Mining & Metals (Total of 4 companies)
Utilization of work-life balance support systems/programs Maintain 100% rate of return to work after childcare leave Fiscal 2018 JXTG Holdings, JXTG Nippon Oil & Energy, JX Nippon Oil & Gas Exploration, JX Nippon Mining & Metals (Total of 4 companies)
Health enhancement Ensure health of employees Build database as infrastructure for planning various measures (covering 14,000 employees) Fiscal 2018 JXTG Holdings, JXTG Nippon Oil & Energy, JX Nippon Oil & Gas Exploration, JX Nippon Mining & Metals (Total of 4 companies)
Corporate governance Thorough compliance Legal compliance inspections Conduct legal compliance inspections Fiscal 2018 Companies for which legal compliance inspections are carried out* (Total of 89 companies)
Compliance with important laws and regulations (Anti-Monopoly Act, etc.) Implement training on important laws and regulations (Anti-Monopoly Act, etc.) Fiscal 2018 Companies for which legal compliance inspections are carried out* (Total of 89 companies)
  • *JXTG Holdings, core operating company groups, and Nippo Corporation.

CSR Promotion Structure

We have established the JXTG Group CSR Council, which is chaired by the representative director and president of JXTG Holdings, as the body for promoting CSR activities in priority fields throughout the JXTG Group. The JXTG Group CSR Council is composed of Group company presidents and relevant executives. From a perspective that spans the entire Group, the council deliberates basic policies and reviews and evaluates the status of activities. The matters deliberated by and reported to the JXTG Group CSR Council are in turn reported to the JXTG Holdings Board of Directors, which provides instructions.
We have assigned CSR promotion managers from each department to serve at the front lines of the Group CSR promotion structure, spearheading various activities and sharing information.

JXTG Group CSR Promotion Structure

JXTG Group CSR Council

Position Organization subordinate to the JXTG Holdings Executive Council
Roles
  1. 1.Formulation and implementation of the JXTG Group's Basic Policy for CSR
  2. 2.Review and evaluation of the JXTG Group's CSR promotion structure and status of CSR activities (including degree of understanding and prevalence of the JXTG Group Philosophy and JXTG Group Code of Conduct)
Chair Representative director and president of JXTG Holdings
Members
  1. 1.Members of the JXTG Holdings Executive Council (including directors) and the officers responsible for CSR at the Group's core business companies
  2. 2.JXTG Group company presidents nominated by the Chair
  3. 3.Other persons nominated by the Chair
Frequency of meetings In principle, twice a year (April and October), and extraordinarily as required
Priority fields and JXTG Group Code of Conduct standards overseen by the council All fields and standards

JXTG Group Compliance Committee

Position Advisory body to the president of JXTG Holdings
Roles
  1. 1.Deliberation on compliance matters (policy, direction, etc.) for the JXTG Group, and reporting on these matters to the JXTG Group CSR Council
  2. 2.Confirmation, evaluation and the sharing of information on the status of compliance measures at each JXTG Group company, and reporting to the JXTG Group CSR Council
Chair Officer (director) responsible for the Legal & Corporate Affairs Department at JXTG Holdings
Members
  1. 1.Relevant general managers at JXTG Holdings nominated by the Chair
  2. 2.Relevant officers and general managers of the Group's core business companies
  3. 3.Other persons nominated by the Chair
Frequency of meetings In principle, twice a year (April and October), and extraordinarily as required
Priority fields and JXTG Group Code of Conduct standards overseen by the committee

Priority field: Compliance

  1. 1.Compliance
  2. 7.Equitable and fair transactions
  3. 8.Appropriate relationships with governments and public administrations
  4. 9.Avoidance of conflicts of interest
  5. 10.Corporate asset protection and management
  6. 11.Information management and disclosure
  7. 14.Actions for violations and measures to prevent recurrence (development of internal whistleblowing systems and promoting their use)

JXTG Group Environment & Safety Committee

Position Advisory body to the president of JXTG Holdings
Roles
  1. 1.Deliberation on matters concerning safety and the environment (policy, direction, etc.) for the JXTG Group, and reporting on these matters to the JXTG Group CSR Council
  2. 2.Confirmation, evaluation and the sharing of information on the status of measures concerning safety and the environment at each JXTG Group company, and reporting to the JXTG Group CSR Council
Chair Officer (director) responsible for the department in charge of environment and safety at JXTG Holdings
Members
  1. 1.Relevant general managers at JXTG Holdings nominated by the Chair
  2. 2.Relevant officers and general managers of the Group's core business companies
  3. 3.Other persons nominated by the Chair
Frequency of meetings In principle, twice a year (April and October), and extraordinarily as required
Priority fields and JXTG Group Code of Conduct standards overseen by the committee

Priority field: Safety and Environment

  1. 1.Compliance (laws and regulations concerning safety and the environment)
  2. 2.Safety and security
  3. 3.Environmental conservation
  4. 4.Health enhancement (primarily occupational safety)

JXTG Group Human Rights Promotion and Human Resource Development Committee

Position Advisory body to the president of JXTG Holdings
Roles
  1. 1.Deliberation on matters concerning human rights, human resource development and health (policy, direction, etc.) for the JXTG Group, and reporting on these matters to the JXTG Group CSR Council
  2. 2.Confirmation, evaluation and the sharing of information on the status of measures for human rights, human resource development and health at each JXTG Group company, and reporting to the JXTG Group CSR Council
Chair Officer (director) responsible for the Human Resources Department at JXTG Holdings
Members
  1. 1.Relevant general managers at JXTG Holdings nominated by the Chair
  2. 2.Relevant officers and general managers of the Group's core business companies
  3. 3.Other persons nominated by the Chair
Frequency of meetings In principle, twice a year (April and October), and extraordinarily as required
Priority fields and JXTG Group Code of Conduct standards overseen by the committee

Priority fields: Human Rights, Human Resource Development, Health

  1. 1.Compliance (laws and regulations concerning human rights, human resource development and health)
  2. 4.Health enhancement (primarily occupational health)
  3. 5.Respect for human rights
  4. 12.Establishment of a healthy work environment

Major Initiatives

CSR Council Meetings

During the two meetings of the JXTG Group CSR Council convened in fiscal 2017, discussions were held to determine the Group's top CSR priorities (material issues). Reports were made on the activities of the JXTG Group Compliance Committee, the JXTG Group Environment & Safety Committee, and the JXTG Group Human Rights Promotion and Human Resource Development Committee, as well as progress on raising awareness of the Group Philosophy and the Code of Conduct.
The discussions and reports heard by the JXTG Group CSR Council were reported to the Board of Directors, which affirmed the direction of the Group's CSR activities in fiscal 2018.

CSR Promotion Manager Workshop

CSR promotion manager workshop

In order to help ensure that we maintain the trust of our stakeholders, the JXTG Group appoints personnel at the deputy general manager level as CSR promotion managers. These CSR promotion managers are responsible for the implementation of CSR activities in their respective workplaces at each Group company. Every year, CSR promotion managers from across the Group meet for a workshop, where we convey our basic policy on CSR and share information.
In fiscal 2017, we organized a presentation by an outside expert on worldwide trends concerning the SDGs and the latest developments in ESG investment. There was also a report on the Group's CSR activities undertaken in fiscal 2017.

Establishment of Policies

In 2018, the JXTG Group established the Anti-Corruption Policy and the Human Rights Policy to supplement the JXTG Group Code of Conduct, following deliberations by the JXTG Group CSR Council.
For details, please see the Anti-Corruption Policy and the Human Rights Policy.

Implementing Measures to Raise Awareness About the Group Philosophy and the Code of Conduct

The JXTG Group established the JXTG Group Philosophy and the JXTG Group Code of Conduct in 2017. We are now implementing various measures to raise awareness of the Group Philosophy and the JXTG Group Code of Conduct among the JXTG Group's officers and employees, and to foster understanding and cooperation among everyone involved in the JXTG Group's business activities.

Purpose Measure
Ensure awareness Hold briefings nationwide
Distribute Group Philosophy cards and Code of Conduct handbooks
Display posters
Use of digital signage in company workplaces
Translation into 9 languages (English, Chinese [Simplified / Traditional], Korean, Spanish, Portuguese, Vietnamese, Thai, Indonesian) and distribution
Promote understanding Publication of special feature series in Group employee magazine
E-learning for all officers and employees
Monitoring Confirmation using employee awareness surveys
Code of Conduct handbook
Group Philosophy card
Digital signage in company workplace

Stakeholder Engagement

The JXTG Group conducts its business activities while maintaining relationships with a variety of stakeholders, including shareholders, investors, customers, business partners, and employees. We seek to earn society's trust by accurately assessing the needs of our stakeholders and responding conscientiously.

Participation in the Global Conference on Business and Human Rights

The JXTG Group participated in the 2018 Global Conference on Business and Human Rights in Tokyo, hosted by Caux Round Table Japan (CRT JAPAN), on September 13 and 14, 2018. Through discussions with human rights experts from overseas, human rights NGOs/NPOs, and the many companies in attendance, we shared and exchanged information on the latest worldwide trends and viewpoints on business and human rights, along with best practices in human rights due diligence used by other companies.
Through ongoing dialogue with stakeholders, we will continue to maintain an accurate understanding of human rights issues we need to address as a company.

For more information, please see the CRT Japan website.

Reflecting Customer Feedback to Achieve Further Improvements

JXTG Nippon Oil & Energy receives feedback and requests from customers through the JXTG Customer Service Center. In fiscal 2017, 23,695 inquiries were received by the former JX Nippon Oil & Energy's ENEOS Customer Service Center. The JXTG Customer Service Center replies within 24 hours to customers who wish to be contacted, and strives to resolve inquiries satisfactorily for customers within 72 hours.

Employee Awareness Survey

Once every two years, the JXTG Group conducts an anonymous survey of all employees on such topics as the Group Philosophy, the Code of Conduct, compliance, day-to-day work and workplace culture.
Identifying the level of employee awareness and any issues inherent in each workplace assists in the improvement of a variety of CSR issues. The most recent survey was conducted in the first half of fiscal 2017, and the results were reported to the Board of Directors and the management team in accordance with the Group's CSR promotion structure.

Principal Declarations and Initiatives the JXTG Group Participates in and Supports

UN Global Compact (UNGC)

Four Group companies (JXTG Holdings, JXTG Nippon Oil & Energy, JX Nippon Oil & Gas Exploration, and JX Nippon Mining & Metals) participate in the UN Global Compact, supporting the compact's 10 principles in the four categories of human rights, labor standards, the environment, and anti-corruption.

The Ten Principles of the UN Global Compact

Human Rights Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 1
make sure that they are not complicit in human rights abuses. Principle 2
Labour Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 3
the elimination of all forms of forced and compulsory labour; Principle 4
the effective abolition of child labour; and Principle 5
the elimination of discrimination in respect of employment and occupation. Principle 6
Environment Businesses should support a precautionary approach to environmental challenges; Principle 7
undertake initiatives to promote greater environmental responsibility; and Principle 8
encourage the development and diffusion of environmentally friendly technologies. Principle 9
Anti-Corruption Businesses should work against corruption in all its forms, including extortion and bribery. Principle 10
CDP
International Council on Mining & Metals (ICMM)
Extractive Industries Transparency Initiative (EITI)
Keidanren 1% Club
Council for Better Corporate Citizenship (CBCC)
Japan Business Initiative for Biodiversity (JBIB)
Sport for Tomorrow

Communication with Industry Organizations

  Organization Name Position Held by Group Executive, etc.
JXTG Holdings Japan Business Federation (Keidanren) Vice Chair, Director, Permanent Secretary
JXTG Nippon Oil & Energy Petroleum Association of Japan Vice-President
Japan Petrochemical Industry Association Director
Japan Chemical Industry Association Policy Coordinating Committee member, Labor Committee member
JX Nippon Oil & Gas Exploration Japan Petroleum Development Association Vice Chairman
Japan Natural Gas Association Director
JX Nippon Mining & Metals Japan Mining Industry Association (JMIA) Vice Chairman, Director
The Sulphuric Acid Association of Japan Chairman
Japan Copper and Brass Association (JCBA) Director
Japan Society of Newer Metals Director
Japan Catalyst Recovering Association Chairman

Inclusion in ESG Indices

Corporate Social Responsibility

Corporate Social Responsibility

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