Climate Change Data

ITOCHU ENEX CO., LTD.

Climate Impact & Sustainability Data (2022-04 to 2023-03)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:566 thousand tCO2e/year (FY2022)
Scope 1 Emissions:505 thousand tCO2e/year (FY2022)
Scope 2 Emissions:62 thousand tCO2e/year (FY2022)
Scope 3 Emissions:22,173 thousand tCO2e/year (FY2022)

ESG Focus Areas

  • Response to climate change
  • Access to energy
  • Human Resource Utilization
  • Corporate Governance

Environmental Achievements

  • Reduced Scope 1 and 2 GHG emissions by 327 thousand t-CO2e from 893 thousand t-CO2e in FY2018 to 566 thousand t-CO2e in FY2022. Aiming for 50% reduction by 2030.
  • Expanding renewable energy initiatives (hydroelectric, solar, biomass).

Social Achievements

  • Increased percentage of female employees.
  • Launched a meal delivery service for the elderly.
  • Implemented various working style reforms (Enex Early Bird).

Governance Achievements

  • Established the Sustainability Committee.
  • Improved the effectiveness of the Board of Directors.
  • Enhanced compliance system with the appointment of a CCO.

Climate Goals & Targets

Long-term Goals:
  • Carbon neutral by 2050
Medium-term Goals:
  • Net profit of ¥20 billion or more by 2030
  • Substantive operating cash flow of ¥45 billion by 2030
  • ROE of 9.0% or more by 2030
  • 10% female managers by 2030
  • 80% or more rate of childcare leave taken by male employees by 2030
  • 50% reduction in Scope 1 and 2 GHG emissions (compared with FY2018) by 2030
Short-term Goals:
  • Net profit of ¥13.5 billion (FY2023/FY2024)
  • Substantive operating cash flows of ¥60.0 billion (FY2023/FY2024)
  • ROE of 8-9% (FY2023/FY2024)

Environmental Challenges

  • Shrinking domestic LP gas market due to declining birthrate and aging population.
  • Declining demand for fossil fuels due to decarbonization efforts.
  • Uncertainty in the energy market and global economic slowdown.
  • Need to accelerate investment in new strategic businesses.
Mitigation Strategies
  • M&A and proactive sales activities in LP gas business.
  • Investing ¥210 billion in new and strategic investments over eight years (ENEX2030).
  • Developing new businesses and services (e.g., smart energy devices, car accessories, meal delivery).
  • Strengthening on-site capabilities and improving investment systems.

Supply Chain Management

Responsible Procurement
  • Promoting eco-friendly procurement practices.

Climate-Related Risks & Opportunities

Transition Risks
  • Weakening of existing energy businesses
  • Reduction of demand for fossil fuels
Opportunities
  • Expansion of alternative fuel market
  • Rising demand for renewable energy

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 13 (Climate action)

Initiatives contribute to these goals through renewable energy, emissions reduction, and sustainable energy solutions.

Sustainable Products & Innovation

  • GTL fuel
  • Renewable diesel
  • Hydrogen
  • Ammonia
  • LNG
  • Carbon neutral LP gas
  • AdBlue®

Awards & Recognition

  • Silver Award, GOMEZ IR Site Ranking 2022
  • AAA rating, Nikko Investor Relations’ Corporate Website Rankings (four consecutive years)