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CSR Activities Results (FY2016)

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CSR・環境
CSR
Safe Operation
Environment
Human Resources Development
Social Contribution Activities
Dialogue with Stakeholders
External Recognition
Safety, Environmental and Social Report

The Midterm Management Plan:
Aiming to achieve sustainable growth together with society and to respond to stakeholders' trust by making all MOL Group executives and employees aware of our social responsibility and putting it into practice.

Legend: ◎ Achieved, ○ Generally achieved, △ Partially achieved,
× Did not achieve (target period/content changes)

  CSR Targets in the Midterm Management Plan
High Priority 1. Thoroughly Implement Safe Operation and Provide Safe, Secure, Stable, High-Quality Services.
Supplying safe, secure and stable services is the basis for earning stakeholders' trust and becoming their choice. By reminding ourselves once again that marine shipping is a social mission as it supports industries and the daily lives of people around the world, we will strive to supply high-quality services, which meet the requirements of the new era and contribute to the development of the world economy.
FY2016 Single-year Targets FY2016 Results

1. Achieve "Four Zeroes" (an unblemished record in terms of serious marine incidents, oil pollution, fatal accidents, and cargo damage) as MOL group.

  • Could not achieve "Four Zeros" because two fatal accidents occurred on MOL-operated vessels. Identified causes of the accidents, widely disseminated the causes and measures to prevent reoccurrence. Included these accidents in the training program.
×

2. Achieve KPI targets for vessels owned by MOL
(1) Reduce operational stoppage time per vessel (achieve operational stoppage time per vessel of 24 hours/year or less)
(2) Reduce operational stoppage accident rate per vessel (achieve target operational stoppage accident rate of 1.00 incident per vessel/year or less)
(3) LTIF (0.7 or less)

(1) Reduced operational stoppage time per vessel (achieve operational stoppage time per vessel of 24 hours/year or less) ⇒ 22.53 (achieved)

(2) Reduced operational stoppage accident rate per vessel (achieve target operational stoppage accident rate of 1.00 incident per vessel/year or less) ⇒ 0.91 (achieved)

(3) LTIF (0.7 or less) ⇒ 0.50 (achieved)

3. With both land-based and seagoing employees, continue full-scale efforts to build awareness of the "Return to Basics" and "Behavior Based Safety" messages.

  • Held united safety campaign for both seagoing/land-based employees on the theme of eliminating accidents caused by bad habits and carelessness. Worked to ensure wider penetration of "Return to Basics" and "BBS."

4. Expand use of IT system for effective utilization of data related to incidents, to help prevent similar incidents in the future.

  • Addressed use, application, and visualization of data on incidents and near-miss cases in the "SHIPNET(*2)" database system for MOL-managed vessels.

5. Fully review the content of Rank Step required duties, position by position, and its operational system.

  • Completed review of Shipboard Operation following established roadmap. Continued review of other items.

6. Enhance and ensure comprehensive initiatives on external crises including piracy/terrorism.

  • Discussed with Ministry of Defense and Ministry of Land, Infrastructure, Transport and Tourism through the Shipowners' Association to more effectively meet the needs of shipping companies in providing escorts in risky sea areas. Solidified operation of new escort system in addition to past escort methods, and started operation of extra escorts (on-demand escort) within a certain period every month.
  • Requested disclosure of appropriate security information in a timely manner to institutions concerned. Held regular opinion exchange meetings with Cabinet Secretariat, Ministry of Foreign Affairs, Ministry of Defense, and Ministry of Land, Infrastructure, Transport and Tourism to collect information, as well as through diplomatic channels.

7. Promote services that meet customer needs and are ahead of their time, with the watchwords "One MOL, One Goal."

  • Identified new customer needs as "One MOL" through the Global Strategy Committee. In addition, introduced a "One MOL" logo mark to further raise awareness among group executives and employees to strengthen cooperation and ties among regions and among divisions.
2. Deepen Initiatives to Ensure Thorough Compliance.
Each of the MOL Group executives and employees values compliance as a corporate social responsibility, and fosters a company culture that demonstrates compliance in business activities.
FY2016 Single-year Targets FY2016 Results

1. Do not let the seriousness of the Japan Fair Trade Commission's 2014 ruling that MOL violated the Japanese Antimonopoly Act in certain car carrier shipping trades fade from memory, and do everything in our power to prevent a reoccurrence.

  • Took various opportunities to present lectures related to the Antitrust Act and compliance, such as stratified training, young manager training, and courses on legal affairs and insurance.
  • Provided Antitrust Act-related e-learning, targeting group companies in Japan and overseas.
  • Transmitted messages from the president & CEO to all executives and employees.

2. Continue various measures including internal training and E-learning on "compliance with antitrust laws, "anti-corruption," "information security," "prohibiting discrimination and harassment."

  • Provided a lecture related to prevention of corruption (bribery) in the stratified training, and legal affairs and insurance training course. Provided e-learning for group companies in Japan and overseas, too.
  • Provided e-learning related to information security in training programs for new employees.
  • Provided a training program to prevent harassment, targeting newly-recruited managers and employees who plan to transfer to other companies in Japan and overseas.
  • Presented a lecture related to human rights in the stratified training. Employees also attended outside human right lectures.
  • Solicited and selected slogans to build awareness of human rights within the group as part of the human rights week project.
3. Strengthen Initiatives on Corporate Governance.
Further enhance corporate governance to ensure that MOL gains the trust of stakeholders and achieves sustainable growth.
FY2016 Single-year Targets FY2016 Results

1. Establish a method to assess the overall effectiveness of the Board of Directors.

  • Conducted a review to assess the effectiveness at the Board of Directors meeting.

2. Confirm appropriateness of group companies' operations.

  • Held the group management meeting.
  • Held the dialogue with the president & CEO and executives, called the "HOT Dialogue."
  • Revised the group company management guidelines to raise the final-decision criteria, and revised group company management practice guidelines.

3. Enhance the Business Continuity Plan (BCP) system by implementing practical drills.

  • Formulated a task force representing seven corporate divisions/offices. Ensured resources (office equipment, batteries, etc.) necessary for execution of operation when natural disasters occurred or during other emergency. Developed a reporting/information sharing system within the task force.
  • Developed a way to secure telecommunication methods during a power outage in the Head Office. Reviewed telecommunication methods with business partners and the order of priorities for business operations. Still developing a system that will allow priority operations to continue in all divisions/offices.
4. Promote Personnel Training and Diversity to Strengthen Comprehensive Group Capabilities.
Further strengthen human resources development of the entire MOL Group globally. Improve the comprehensive capabilities of the MOL Group by facilitating work environment where multinational and diverse human resources including women can demonstrate their abilities.
FY2016 Single-year Targets FY2016 Results

1. Enhance management skills of MOL Group employees, and expand training with the goal of improving the quality of its businesses.

  • Held 7-day onsite training program for new employees at harbors/ports all over Japan.
  • Invited expatriates to attend stratified training to ensure that executives gain the knowledge needed at the appropriate time.

2. Instill the concepts of MOL CHART, established as the group's shared sense of value, and promote the creation of an environment that allows diversified personnel to play active roles with a sense of unity.

  • Solicitated episodes showing "MOL CHART" in action within the group. Selected seven episodes for use in production of a video on MOL CHART and recognized those who contributed their episodes. Held a "MOL CHART Workshop" with the participation of the president & CEO and executives.

3. Continue to support women employees to encourage their success and career development, toward achieving the target of 8% of women in management ranks in 2020.

  • Held a diversity promotion lecture (lecture by a psychologist on the theme of male and female psychology). Explained unconscious bias. Provided useful skills for mutual understanding among management.
  • Enrolled female employees just under management level in the Keidanren's Women's Challenge Support seminar.

4. Promote use of systems that flexibly meet changes in lifestyles to improve work-life balance, and study ways to improve those systems in the future.

  • Established and executed action plans based on The Act on Promotion of Women's Participation and Advancement in the Workplace.
  • Introduced a program to support women returning to work after childbirth. Held an in-house seminar by NOP about how to spend before/after childbirth, which will contribute to maintaining/increasing career consciousness, in consideration of mothers' health.
  • Joined a caregiving support service arranged by an NPO aimed at employees who must care for family members who live far away. Held a caregiving seminar for employees.

5. Step up preparations to establish a school in the Philippines, with opening slated for 2018, that aims to be one of Asia/Oceania's largest maritime academies.

  • Focused primarily on construction of school buildings, prepared various contracts, and contributed monetary donations and loans as scheduled. All committees have started work. Concluded contractor agreements.

6. Further improve onboard welfare programs.

  • Proactively equipped all in-house tie-in vessels with FBB(*3) or VSAT(*4) fleet broadband. Equipped some vessels with the next-generation satellite GX systems.
  • Standardized separation of business operations and private use of onboard LAN and reinforced security.
5. Make Further Progress on Solving Social Issues and Promoting Environment Initiatives as an Environmentally Advanced Company.
Further enhance initiatives to reduce environmental impact as an "Environmentally Advanced Company" with full awareness of the environmental impact of the business activities of the MOL Group, and protect the global environment, which is an issue common to the whole world.
Environmental Activities Results (FY2016)
Issues 6. Proactively Disclose Sustainability Data.
Foster stakeholders' trust by proactively disclosing information to show the sustainability of MOL businesses.
FY2016 Single-year Targets FY2016 Results

1. Proactively disclose the progress of business structural reforms.

  • Proactively invited interviews with media in Japan and overseas to explain MOL Group business strategies to the entire world.
  • Regularly shared information with concerned divisions to promote more proactive disclosure of "safety," "AI/IoT," and "the environment."

2. Proactively disclose information based on KPI and achievements on the Web site, Environmental and Social Report, Annual Report, etc.

  • Explained the details and background of the Business Structural Reforms and outline of the single-year management plan through Annual Report, etc. Optimized business portfolio and proactively disclosed the company's management strategies, which aim at early returning the company to a growth track, to investors and shareholders.
  • Disclosed information on safe operation and diversity initiatives using KPI such as the "Four Zeroes," women in management, etc. in the Safety, Environmental and Social Report.

3. Further increase the transparency of corporate information including negative information, and disclose it in a timely and appropriate manner, as a company trusted by stakeholders.

  • Responded to media inquiries on Panama Papers and integration of container shipping business in appropriate manner.
7. Promote Social Contribution Activities Related to MOL's Businesses.
Promote social contribution activities that are highly relevant to MOL's businesses, and continue our efforts to solve social issues as a corporate citizen.
FY2016 Single-year Targets FY2016 Results

1. Further enhance social contribution activities by executives and employees in Japan and overseas.

  • Assigned new employees to implement support activities in flood-stricken areas of Joso City.
  • Invited NPO for which MOL provides transport service to present a lecture for employees.

2. Address social issues using know-how accumulated in the company's main business and drawing upon the company's resources.

  • Joined the international contribution program "Sports For Tomorrow (SFT)". Provided transport services for a total of six containers including donated sporting goods to Ghana.

3. Further enhance educational activities that convey the important role of the maritime industry.

  • Cooperated in "Marine Day" events. Invited about 200 elementary and junior high school students and their families to tour a car carrier.
  • Welcomed about 150 elementary and junior high school students for tours of the group facilities.

4. Further enhance support of seafarer supply areas.

  • Provided transport service of wheelchairs for children to the Philippines, which is a major seafarer supply nation.

5. Promptly respond to disaster-stricken areas, and continue support for reconstruction of the areas stricken by the Great Eat Japan Earthquake.

  • Launched a charity donation drive within the group as a support activity for reconstruction after the Kumamoto Earthquake, and donated about 35 million yen including funds provided by the company.
  • Transported secondhand containers for use as emergency shelter during reconstruction of earthquake-damaged areas of Ecuador.

(*1) LTIF: Lost Time Injury Frequency. The number of industrial accidents occurring per 1 million man-hours. Conventionally, occupational injuries and illnesses, which forced seafarers to disembark vessels, were counted. But starting in FY2015, the total includes cases in which seafarers did not have to disembark, but were unable to return to work, including light duty.

(*2) Shipnet : A database system that manages information among vessels and shore, ensuring speedy and accurate transmission of information.

(*3) FBB: Fleet Broadband. INMARSAT Satellite telecommunication service, using L Band (frequency range: 1-2 GHz).

(*4) VSAT: Very Small Aperture Terminal system. Satellite telecommunication service, using mainly Ku Band (frequency range: 12-18 GHz).

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