This year's Environmental and Social Report issued by Mitsui O.S.K. Lines is organized based on performance and issues for the initial fiscal year of the company's three-year midterm management plan, "GEAR UP! MOL," which was launched in fiscal 2010.

The plan broadly incorporates three strategies, and two of the strategies, "Enhancing Safe Operation" and "Environmental Strategy," are directly related to MOL's social responsibilities as a corporation. With regard to enhancing safe operation in particular, steady progress is being made. Since establishment of the Safety Operation Supporting Center (SOSC) at the head office in 2007, there has been a steady decline in navigation-related incidents. In addition, in fiscal 2011, MOL created a new video entitled "Forging Ahead to Become the World Leader in Safe Operation" to promote greater awareness of MOL's operational safety initiatives among stakeholders. The video clearly informs people inside and outside the company of the concrete safety systems in place on ships. Other MOL policies for safe operation, including utilization of a training vessel, are a step ahead of the industry standard. These initiatives convey MOL's strong commitment to safety and clearly show that "Never Forget 2006" was not just a slogan.

Behind MOL's initiatives for safe operation are four major marine incidents that occurred in 2006, the collision and sinking of an iron ore carrier in May 2010, and multiple, ongoing attacks by pirates in Middle Eastern waters. In particular, the pirate attack that took place off of Oman in March 2011 resulted in the pirates being transported to Japan and prosecuted in court. It was the first such case in Japan and drew considerable public attention. Since 2006, MOL has consistently made efforts to disclose the details of these incidents when they have occurred and information on measures taken in response. At the same time, there are many aspects of such acts of terrorism and piracy that go beyond the capabilities of private-sector companies. As a leader in Japan's shipping industry, it will likely be necessary to also quickly develop a framework for cooperation with the government and related institutions. This year's report reveals the continuing progress of individual measures related to CSR, but on the relationship between the midterm management plan and CSR activities policy, there is still room for improvement. For example, strategic goals of "CSR that fulfills MOL's responsibility" and "CSR activities that benefit both the company and society" seem fairly abstract, and there is a chance that the intended specifics of such goals will not be readily apparent to stakeholders. It will likely be necessary to create an overall strategy for CSR that orients each specific issue and is clearly related to the midterm management plan.

Finally, the Great East Japan Earthquake caused no major damage at the level of MOL's main business because the company's business continuity plan functioned effectively. At the level of social contribution activities, various support systems were rapidly put in place through MOL's main business, including aid contributions, free emergency aid supply and free day-use service of a cruise ship. This response was predicated on day-to-day business activities, starting with crisis management, and drew on MOL's traditions and experiences to date. MOL's initiatives aimed at "becoming the world leader in safe operation" are just getting started. I hope to see MOL lead the industry in advancing CSR management by putting "GEAR UP! MOL" into practice.