Energy & Chemicals Company
– Sustainability Management –
Medium to Long-Term Growth Strategies
With regard to the energy trading, we are going to expand conventional flows of business—importing and wholesaling products between two countries in Asia. At the same time, we aim to take business chances based on new product flows from North America to Asia.
In energy projects areas, we utilize our accumulated expertise and experience in the industry to expand existing projects while we try to curtail risk together with excellent partners, and to enlarge our business base for future earnings through participation in cost-competitive new projects. We recognize that factors such as considerations for the environment, symbiosis with local communities, and safe working environments are essential to sustainability. Accordingly, we and our partners take necessary measures to these considerations.
In chemicals areas, we endeavor to expand our business field in organic chemicals, plastics, and inorganic chemicals by utilizing our global trading capabilities. We aim to advance projects in various areas to secure competitive raw materials, while taking steps to bolster our supply chains, especially in the retail area including pharmaceuticals, plastics processing, electronic materials, and fine chemicals. With regard to handling of chemical products, we make sure compliance with chemical-related laws in any jurisdiction by appropriate education as well as strengthened control over the supply chain, from raw materials to our products that reach end purchasers.
Furthermore, we plan to continue creating synergies with CITIC and CP Group in line with the strategic business alliance and capital participation agreement.
|Earning Opportunities for Growth||Challenges to Address|
Sustainability Action Plans
Key points of our FY2018 action plans
While working for the stable acquisition and supply of energy resources by conventional development of oil fields, ITOCHU is simultaneously developing new businesses that are gentle to the global environment, as exemplified by businesses related to lithium-ion batteries, which have good prospects for demand expansion as a form of clean energy. Meanwhile, we continue to implement programs of education and training in laws, regulations, and safety related to energy and chemicals.
Major Sustainable Initiatives
Compound semiconductor initiatives aimed at saving energy
ITOCHU PLASTICS INC. (CIPS) is committed to actively developing energy-saving technologies and applications for resource-saving technologies, to help create a more technologically sustainable society.
CIPS is particularly focused on gallium nitride compound semiconductors, which have properties that are not possible with silicon semiconductors, including light emitting capabilities, high speed switching, and high dielectric strength. They are expected to be used for purposes such as next-generation LEDs capable of producing natural light color, high-efficiency LEDs, high-capacity devices that will be needed for 5G communications in the future, and high-voltage, high-output semiconductor devices for use in electric vehicles (EV). CIPS is working with universities and public research institutions to develop the cutting-edge technologies required for next-generation light sources and advanced low-loss power devices.
From the research and development stages through to sales and marketing, CIPS will continue to contribute to society by improving the environment and paving the way for economic growth.
Oil field development in the Caspian Sea aimed at ensuring the stability of resources
ITOCHU Corporation has, through its wholly owned subsidiary ITOCHU Oil Exploration (Azerbaijan) Inc., been involved in a project in the ACG field in the Caspian Sea in Azerbaijan.
ACG Field is located in the Caspian Sea in Azerbaijan, which is approx. 100 kilometers to the east of the capital city Baku. ITOCHU acquired a 3.9205% interest in the ACG field in 1996. In August 2010, the company acquired an additional interest in the project, increasing its operating interest to 4.2986%, and has since been striving to ensure the stability of the resources.
In 2014, additional production of crude oil began in the Chirag Oil Project, a large-scale project covering Chirag oil field and the deepwater portion of the Gunashli oil field, including those shallow parts, where ITOCHU had been undertaking developing work in the ACG Field.
Crude oil produced in the ACG project is being supplied to countries including those in the European market via the BTC Pipeline, in which ITOCHU has a stake through its subsidiary ITOCHU Oil Exploration (BTC) Inc. and CIECO BTC (UK) LIMITED.
ITOCHU will continue to be involved in development projects aimed at maximizing the value of the ACG project and will strive to secure crude oil supply sources.
Acquisition of ISO 22301 certification aimed at making the tank terminal safe, secure, and resilient to disaster
Chemical Logitec Co., Ltd. manages and operates Nagoya Chemport, which is engaged in work centered around the storage, receipt, and supply of liquid chemicals at the No. 9 lot in the Port of Nagoya. It is an important link in our supply chain in the Nagoya and surrounding areas.
Learning from the Great East Japan Earthquake that struck on March 11, 2011, the company has since been preparing its facilities for the anticipated Nankai Trough Earthquake. It worked for two years on initiatives in the areas of employee education and training, facility improvement and systemic arrangements, aiming to make the chemical port safe, secure, and resilient to disaster. As a result, the company obtained ISO 22301-2012 certification for the first time on May 1, 2014, and successfully renewed certification on May 1, 2017.
ISO 22301 is a standard for management systems for maximizing an organization's ability to continue to provide services in the event of a disaster or accident that causes a discontinuation or inhibition of business, by resuming the business quickly and minimizing the impact on customers and other stakeholders. This was a milestone event, because Chemical Logitec Co., Ltd. became the first company in Japan's chemical tank industry and the ITOCHU Group to be given such certification.
The company continuously reviews internal and external issues, striving to make improvements accordingly. In FY2016, it conducted a safety drill in the presence of cargo owners by assuming an accident took place when only a few people are ready to respond to it, such as at night and on a holiday. Night-time training was also organized in FY2017. It thus checked for problems in their response to the accident. The company continues striving to ensure safety in the event of a disaster, placing maximum priority on human life, and provide education and training to its organizations repeatedly to retain the trust of customers.
Reducing the environmental footprint with the introduction of side shrink packaging
As an initiative to reduce its environmental footprint, ITOCHU PLASTICS INC. ("CIPS" hereafter) has supported the introduction of "side shrink film" at all stores operated by FamilyMart Co., Ltd., its domestic area franchise company locations, and Circle K Sunkus stores (collectively, "FamilyMart"). Side shrink film is a style of packaging in which the plastic film around a package for a boxed lunch, sushi or noodle product only covers the area where the container and lid meet.
FamilyMart has introduced" side shrink packaging" to nationwide stores in February 2015. The switch to side shrink packaging from full shrink packaging, where an entire container is covered with cling film, has made packages easier to open, improved the visibility of contents and offered advanced blocking properties. The new packaging also plays a major role in reducing the burden on the environment by decreasing waste, cutting the amount of plastic materials used in packaging and lowering CO2 emissions
- The results in FY 2017(Comparison with previous full shrink packaging)
Cutting the amount of plastic materials: Approx. 430 tons, Lowering CO2 emissions: Approx. 1,540 tons
CIPS has corporate philosophy "Providing lifestyle comfort and convenience with chemical and plastic materials. A corporate culture of integrity propelling us forward, together. ITOCHU Plastics." Through support for the introduction of shrink film and other endeavors, CIPS promotes corporate activities that balance a better global environment with economic growth and strives to preserve the environment, helping to realize a sustainable society.