Fiscal 2011 is now upon us, the second year of MOL's three-year midterm management plan, "GEAR UP! MOL
," which was drawn up while the global economy was still reeling from the financial crisis. The plan incorporates policies for achieving sustainable growth alongside society into our core strategies.
MOL Group Midterm Management Plan (FY2010-FY2012) GEAR UP! MOL
Long-term vision:
To make the MOL Group an excellent and resilient organization that leads the world shipping industry
Main theme:
Challenge to Create New Growth
| Strategy1 | Strategy2 | Strategy3 |
|---|---|---|
Recovery From the Economic Crisis and Acceleration of Business Development in Growing Markets Tailored responses to customers' needs in an expanding global market (Enhance business activities globally, etc.) Enhancing infrastructure to accomplish strategies |
Enhancing Safe Operation Safe operation has always been a cornerstone of MOL's strategy. Safety is not only essential to foster business growth; but also it helps to earn the public's trust and appreciation. Under "GEAR UP! MOL," we are aiming to improve operating safety to the highest level in the industry. |
Environmental Strategy By offering transport solutions with a lower environmental burden, the MOL Group is evolving to meet today's demands. MOL is reinforcing and emphasizing the advantages that ocean transport offers as an environmentally efficient mode of transportation in various ways, including development of the Senpaku ISHIN project. The MOL Group thus contributes to sustained global economic growth by offering transportation services that can respond to customers' needs while protecting the global environment. |
Recovering From the Economic Crisis and Accelerating Business Development in Growing Markets
The future holds uncertainty but also opportunities for growth. For MOL to reap the future's potential rewards, we must accurately interpret signs of change, make quick, sound decisions and take action accordingly. With the emphasis on both aggressive and protective approaches, our system of corporate governance facilitates such action. The "GEAR UP! MOL" plan calls for us to further reinforce business intelligence, another key to achieving this end. Our ultimate goal, which stands as one of our corporate principles as well, is to meet and respond to our customers' needs and to this new era. For MOL to maintain a strong financial position and achieve further growth, we must quickly and accurately read signs of change in promising markets and the business climate to seize major business opportunities or utilize the information in risk management. This means collecting a broad range of information from as many sources as possible, efficiently sharing that information within the organization, and intelligently processing it so that it helps management make the right decisions. Taking action on the basis of decisions made in this way is how to effectively meet the needs of customers and contribute to the further development of the global economy and global community. It also makes it possible for MOL to overcome intense competition and achieve sustainable growth.
At present, chances for growth lie in the global markets, particularly in emerging countries. Whether we can build systems for anticipating changes and accommodating these markets to seize such opportunities will be a major factor in determining the look of the MOL Group 10 years down the road. It is critical that we recruit and develop diverse, talented people at the centers of business and trade and facilitate their performance as a part of our global workforce. And, no matter where in the world we do business, we must always comply with ethical norms in areas like human rights, labor and anti-corruption. It is therefore necessary to work to ensure rigorous compliance by the MOL Group in every activity in every corner of the world. We also have a responsibility to support the long-term growth of other countries and regions through activities that address a range of societal challenges, including eradicating hunger, improving education and medical care, and assisting recovery from natural disasters. This will be a cornerstone of MOL's sustainable growth.
Enhancing Safe Operation: A Shipping Company's Responsibility to Society and the Basis of Its Competitiveness
Safe operation must be given the highest priority both for the safe and secure transport of customer cargo and for the protection of the marine environment, the stage on which we do business. Establishing a system for safe operation was the cornerstone of our previous midterm management plan. Under the "GEAR UP! MOL" plan, which got underway in fiscal 2010, we aim to become the shipping company of choice, objectively recognized by customers and other stakeholders for having safe operation by making the system clearly visible to all.
Just after embarking on the new midterm plan, in May 2010, the iron ore carrier Bright Century collided with another vessel and sank. All crew members, including the crew of the other ship, were safely rescued, but the accident is deeply regrettable. To prevent a recurrence, we have already taken a variety of measures, including creating a training video based on an investigation into the causes of the accident. The video is being used at Safety Conferences held for MOL seafarers in Japan, the Philippines, India and Europe. What is most important though is that we learn from every incident- from major accidents to near-misses-and use those lessons to prevent a repeat of the same incident from happening again, that we oversee improvements using well-defined evaluative indicators, and that we disseminate all related information within the company and disclose it to the public as well.
Operational safety workshops for office staff held on a regular basis since fiscal 2010 represent one such initiative. We intend to achieve a record of safe operation recognized as world class by continuing to make internal control processes for ensuring safe operation more visible and attaining the "four zeroes"-an unblemished record in terms of serious marine incidents, oil pollution, fatal accidents, and cargo damage-and other numerical targets.
Environmental Strategy for Helping Sustain Global Economic Growth
The Senpaku ISHIN project announced from September 2009 to April 2010 puts forth the concept of low-environmental impact car carriers, ferries and iron ore carriers capable of substantially lowering greenhouse gas emissions. We are happy to report that the project has garnered a great deal of interest from customers, shipbuilders and many other stakeholders.
The aim of the project is not to create some dream ship in the far-off future, but to show the type of ship that is technically possible in the near future. Immediately after making the announcement, MOL drew up a roadmap with development, testing and introduction schedules for each component technology involved in reducing the environmental impact of the concept ships, and we are now installing the technologies on actual vessels while conducting regular reviews that include cost-benefit analysis. Efforts are also being made to reduce the environmental impact in regular day-to-day vessel operations by accumulating expertise in highly environmentally-efficient operating techniques and proactively implementing slow steaming while taking steps to ensure safety and meeting customer requirements.
Global warming and other environmental issues are, in a sense, strongly at odds with global economic growth, especially in emerging countries, and the shipping industry in general, which seeks to accommodate increases in shipping demand associated with this growth. But MOL believes shipping companies must work to solve these issues by improving the environmental efficiency of their vessels, which will be the key to becoming the company of choice among stakeholders.
This report is being issued while areas in Japan devastated by the Great East Japan Earthquake of March 2011 struggle with an extremely challenging and prolonged recovery and reconstruction process. The earthquake and tsunami affected many people living in the region and many industries, which include some of MOL's customers. The impact of the disaster still reverberates in production, power, trade and distribution. The MOL Group transported emergency vehicles and relief supplies from Japan and overseas and dispatched a cruise ship to help people impacted by the disaster. We also solicited donations within the group and received many offers to provide help from within Japan and from employees, crew members and partners overseas.
The earthquake has reaffirmed the societal mission of the shipping industry. It has made us acutely aware that our growth as a shipping company is inextricably linked to the ongoing development of society and that we are indelibly dependent on our customers, shareholders, business partners, employees, crew members and all our other stakeholders all over the world. The MOL Group renews its commitment to growing sustainably and harmoniously with society.
Koichi Muto
President
