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Sustainability Issues (Materiality)

Our Sustainability Issues (Materiality)

The MOL Group identifies "Sustainability Issues" (Materiality) as our key issues for sustainable growth with society through realization of the Group Vision.
Based on enhancement of "Governance," which is foundation of MOL Group management, the group addresses issues of "Safety & Value" and "Environment," while "Innovation" and "Human & Community" are closely inter-related. We strive to improve the group's corporate value and contribute to realizing a sustainable society by moving forward with these initiatives.

Conceptual Diagram of Sustainability Issue
Five Sustainability Issues

Identification and Review of Sustainability Issues

Identification process

In 2019, we formed the Sustainability Promotion Project Team to identify Sustainability Issues for the first time. This is an internal team with a cross-divisional membership that formulates our positions on social issues after studying both negative and positive social impacts of our business activities. Based on two axes of the importance to stakeholders and the importance to the MOL Group, we combine them under five topics.
When identifying Sustainability Issues (materiality), we are aware of two aspects (double materiality) of the impact of our group on the environment and society, as well as the impact of the environment and society on our group.

STEP 1
Review candidate Sustainability Issues
STEP 2
Examine risks (negative impact) and opportunities (positive impact) in value chains
STEP 3
Evaluate importance from two axes of stakeholders and the MOL Group
STEP 4
Identify Sustainability Issues

Review (FY2021)

Two years have passed since the first Sustainability Issues were identified, and in 2021 we reviewed them while referring to the opinion of external stakeholders (external experts, investors, NGOs, etc.), considering the changes in the business environment around the MOL Group, in addition to changes in the social environment, such as climate change, human rights issues.
This review was approved by the Board of Directors in September 2021.

Before review
Value-added transport services
After review

Safety & Value

Provide added value through safe transportation and our social infrastructure business

  • Specify attitude towards initiatives on "safety"
  • Expand the scope to cover not only shipping, but also social infrastructure businesses such as offshore businesses.
Before review
Human resource cultivation and community development
After review

Human & Community

Contributing to the growth and development of people and communities

Change the intent to aim for success and co-existence not only among MOL Group executives and employees, but also among everyone involved in MOL Group businesses.

MOL Sustainability Plan

In order to accelerate its efforts to resolve Sustainability Issues, we have set goals, KPIs, and action plans for each of these issues, and formulated the MOL Sustainability Plan. This plan was approved by the Board of Directors in March 2022.
From FY2023, we reviewed the positioning of the "MOL Sustainability Plan" in the establishment of the "BLUE ACTION 2035" management plan and incorporated it as part of the "BLUE ACTION 2035" as an action plan to realize the Group Vision by resolving Sustainability Issues, thus further integrating the Sustainability Plan with the management plan. Accordingly, we made a partial revision of initiative focus, targets and KPIs, and changed the Action Plans to correspond with the content of Phase 1 (FY2023 to FY2025) in line with the management plan.
Through the steady implementation of MOL Sustainability Plan, we will strengthen our efforts to resolve Sustainability Issues, measure the effectiveness of our efforts, and implement appropriate improvement activities.

Safety & Value  Provide added value through safe transportation and our social infrastructure business

MOL aims to promote sustainability and prosperity in people's everyday lives and in industries around the world, by transporting energy, commodities, and finished products safely, reliably, and cost-effectively. The MOL Group continuously aims to expand its social infrastructure business, centered primarily on marine transport.

Our group's approach and strategy for safety : MOL Group Safety Vision

Initiative Focus Targets and KPIs
*Figures in square brackets are target values.		 Fiscal 2024-2025 Action Plans
Value through Our Core Business Provide sustainable value through marine transport and social infrastructure business
  • Implement strategies set forth in the management plan
Transport volume (ton-mile)
Safety Levels Ensure that the MOL Group can continue to protect precious people, property, and the environment and be trusted
  • Promote the active participation of human capital to help ensure safety
  • Development of safety infrastructure centered on technology
  • Preemptive management of risk and danger
  • Reform safety awareness through mutual enlightenment
  • Pursuit of the ideal organizational structure and business processes
Group-wide KPIs for the MOL Group
  • Number of fatal accidents [0]
  • Number of serious accidents *1 [0]
  • LTIF(Lost Time Injury Frequency) *1
Safe Operations
  • 4 ZEROS
    Serious marine incidents [0]
    Serious cargo damage [0]
    Oil pollution [0]
    Fatal accidents [0]

  • SPI (Safety Performance Indicator)
    LTIF (Lost Time Injury Frequency) *2
    [Less than 0.50 (FY2025)]
    [Less than 0.40 (FY2030)]
    [Less than 0.30 (FY2035)]

    Average downtime (hours per shipper year) *3
    [Less than 24.00 (FY2025)]
    [Less than 22.00 (FY2030)]
    [Less than 20.00 (FY2035)]

    Downtime frequency rate (incident per ship per year) *4
    [Less than 1.00 (FY2025)]
    [Less than 0.80 (FY2030)]
    [Less than 0.60 (FY2035)]
Creation of New Added Value Create services that meet social needs
  • Steadily promote existing projects and explore new service opportunities
    • Global HR consulting, Blue carbon Project, businesses of MOL PLUS Co., Ltd., etc.
  • Continuously commercializing new businesses proposed by employees
Track record of new services that cater to society's sustainability-related needs
Number of projects commercialized through the MOL Incubation Bridge, system for employee-inspired proposals for new businesses
  • *1 Define and set for each business segment in the MOL Group.
  • *2 Number of lost time injuries occurring in a workplace per 1 million hours worked (MOL uses "on board time" as denominator).
  • *3 The amount of downtime due to mechanical malfunctions or incidents per vessel per year.
  • *4 The number of mechanical malfunctions or incidents that result in downtime per vessel per year.

Environment  Conservation for Marine and global environment

MOL aims to minimize the negative impacts of its business activities (marine environmental pollution, air pollution, reduction of biodiversity, climate change, etc.) and to ensure a sustainable world for everyone.

Our group's approach and strategy for environment : MOL Group Environmental Vision 2.2

Initiative Focus Targets and KPIs
*Figures in square brackets are target values.		 Fiscal 2024-2025 Action Plans
Climate Change Countermeasures Achieve net zero GHG emissions for the entire Group by 2050
  • Implement strategies set forth in the MOL Group Environmental Vision 2.2
    • Action 1: Adoption of clean energy
    • Action 2: Enhancement of energy-saving technologies
    • Action 3: Boost operating efficiency
    • Action 4: Building business models to enable net-zero GHG emissions
    • Action 5: Expanding low-carbon and decarbonization projects through use of the MOL group's concentrated strengths
  • Enhance response to TCFD recommendations
  • Strengthen cooperation with group companies
GHG emissions *1
[▲23% (FY2030, compared to that of 2019)]
GHG emission intensity *2
[▲1.4% per year (average through 2030, compared to that of 2019)]
[▲45% (FY2035)]
Number of LNG/methanol-fueled ocean-going vessels
[90 vessels (FY2030)]
Ratio of power from renewable energy for Scope 2
[100% (FY2030)]
Fuel efficiency (Energy consumption per ton-mile)
[▲5% (FY2025)]
Amount of removal type carbon credits used (t-CO2)
[2.2 million t-CO2 (FY2030, Cumulative)]
Environmental investment
[6,500 billion yen (FY2021-23 in total)]
Preservation of Marine Environments Protection of Biodiversity Reduce negative impact on the marine environment and biodiversity
  • Identify and analyze nature-related risks and opportunities
  • Consider KPIs and targets
*Planning to set KPIs based on international guidelines, etc.
Prevention of Air Pollution Reduce air pollutants emitted from vessels
SOx emissions
SOx emissions intensity
[▲14% (FY2030, compared to that of 2020)]
NOx emissions
NOx emissions intensity
  • *1 Scope 1 and Scope 2 for the entire group (consolidated scope).
  • *2 Scope 1 and part of Scope 3 for MOL Group-operated ocean-going vessels.

Human & Community  Contributing to the growth and development of people and communities

MOL aims to achieve successful coexistence among everyone involved in the MOL Group businesses and the sustainable growth and development of communities through its activities as a corporate group that respects diverse personalities and that can maximize the capabilities of every employee.

Our group's approach and strategy for human capital : MOL Group Human Capital (HC) Vision

Initiative Focus Targets and KPIs
*Figures in square brackets are target values.		 Fiscal 2024-2025 Action Plans
Diversity, Equity & Inclusion Realize a work environment in which a diverse range of human capital can succeed
  • Implementation of human capital acquisition and allocation
  • Achieving the right people in the right place
  • Implementing talent management with the use of technology
  • Supporting autonomous career development
  • Improvement of employees' engagement
  • Strengthening the capabilities of divisions managing human capital
  • Enhancement of attractiveness for Seafarers
Percentage of managerial positions filled by women (Non-consolidated, office workers)
[15% (FY2025)]
Composition of people filling MOL Group Key Positions (MGKP) *1
  • Percentage who are women
    [8% (FY2025)]
  • Percentage who are not from headquarters
    [30% (FY2025)]
  • Percentage who are in their 40s or younger
    [15% (FY2025)]
Mutually Empowered Establish an environment for "Mutually Empowered" to maximize individual and group-wide organizational capabilities
Communication implementation rate aimed at achieving and practicing the Group Corporate Mission, Vision, Values
[100% (FY2025)]
Number of transfers due to the open recruitment of positions Groupwide (cumulative figure over three years)
[More than 50 cases (FY2025) *2]
Highly Engaged Realize a group in which employees can feel the significance and peace of mind of working for the company on a daily basis
Engagement Survey (ES) response rate
[More than 90% (FY2025)]
Percentage of organizations where the KPI score for "Engagement" improved in the ES
[More than 70% (FY2025)]
Growing Together with Local Communities Expand activities that contribute to the growth and development of people and  communities involved in our business
  • Corporate citizenship activities
    • Enhance activities related to key areas
    • Strengthen cooperation with group companies and expand initiatives
    • Expand initiatives to raise awareness of social issue resolution among group employees
  • Community contribution activities in Mauritius
    • Continued support for NGOs, academic institutions, etc. through two funds
    • Assistance in building networking among grant recipients
    • Publication of activity results with emphasis on social impact
Results of corporate citizenship activities
Progress of activities benefiting local communities in Mauritius
  • *1 General Managers in MOL head office(GMs), and positions in all the MOL GROUP companies, of which function and responsibility are designated to be equivalent to those of GM (irrespective of whether in Japan or overseas)
  • *2 Cumulative total for 3 years

Innovation  Innovation for development in marine technology

MOL aims to enhance its business through advanced technologies using clean energy and ICT, and to help address various social issues. This will also help the Group provide added value through safe transportation and our social infrastructure businesses and achieve its goal of conservation for marine and global environment.

Our group's approach and strategy for DX : MOL Group DX Vision

Initiative Focus Targets and KPIs
*Figures in square brackets are target values.		 Fiscal 2024-2025 Action Plans
Groupwide Adoption of Clean Energy Introduce and increase the use of clean alternative fuels for vessels
  • Strategic procurement of clean alternative fuels and the establishment of a reliable supply system
  • Promote the development of related technologies
    • Ammonia-fueled vessels, methanol-fueled vessels, hydrogen-powered vessels, use of fuel cells/batteries, etc.
Number of net-zero GHG emission ocean-going vessels
[Deploy commercial in the 2020s]
[130 vessels (FY2035)]
Percentage of zero-emission fuels used
[5% (FY2030)]
Develop technologies that contribute to the spread of clean energy in society
  • Promote the development of next-generation clean energy carriers /bunkering vessels
    • Large ammonia carriers and bunkering vessels, liquefied hydrogen carriers, liquefied CO2 carriers, etc.
  • Promote R&D on the Wind Hunter Project
Progress in developing next-generation  clean energy carriers/bunkering vessels
Increasing the Energy Efficiency of Vessels Use natural energy and establish and promote energy-saving technologies that help improve propulsion performance
  • Develop ways to reduce the weight of the Wind Challenger and study the feasibility of mass production
  • Study installation of Rotor Sail *1
  • Promote introduction of other energy-saving technologies
    • PBCF *2, Optimal Trim System *3, etc.
Number of vessels equipped with the  Wind Challenger (hard sail wind propulsion system) 
[25 vessels (FY2030)]
[80 vessels (FY2035)]
Number of vessels adopting other energy-saving technologies
ICT Utilization for Safe, Efficient Operation Upgrade, expand, and establish platforms using vessel-related big data (the FOCUS Project etc.)
  • Upgrading FOCUS
    • Expansion and review of data items related to efficient operation, support for vessels fueled by LNG and other alternative fuels
  • Development/demonstration/implementation of Fleet Guardian
Progress of the FOCUS Project
Progress of the Fleet Guardian Project *4
Establish technologies for autonomous vessel navigation
  • Formulate development plan in light of sea trials
  • Select partners and conduct verification with a view to installation
Progress in developing technologies for autonomous vessel navigation
DX Digitalize to improve company productivity and optimize processes
  • Promote land-oriented DX projects for use in designing and introducing new function-specific standard practices, etc.
  • Promote maritime-oriented DX projects, such as maximizing digital use of onboard documentation
  • Implement measures to develop change leaders
  • Optimizing the overall business environment through ICT infrastructure development at the entire group
Conversion rate to work for value creation (land-based work) *5
[15% (FY2025, cumulative)]
[25% (FY2030, cumulative)]
[30% (FY2035, cumulative)]
Conversion rate to work for safety (onboard duties) *6
[10% (FY2025, cumulative)]
[20% (FY2030, cumulative)]
[30% (FY2035, cumulative)]
Number of change leaders *7
  • *1 Rotor Sail is an auxiliary device using wind power.
  • *2 Propeller Boss Cap Fins. It improves propulsion efficiency by breaking up the hub vortex generated behind the rotating propeller of the vessel.
  • *3 The optimum trim system quantitatively assesses MOL captains' extensive practical knowledge of vessel running attitudes through tank testing and tests aboard actual ships. This data is translated into graphs that make it easy for seafarers to use the system.
  • *4 A predictive diagnostic system to prevent problems and breakdowns in the main engine, based on the information from various sensors monitoring the onboard main engine, etc.
  • *5 Ratio of man-hours spent by employees on routine work to man-hours spent on new value creation through digital applications and optimization of operations and organization.
  • *6 Ratio of man-hours spent by employees on routine work to man-hours spent on safety operations through digital applications and optimization of operations and organization.
  • *7 Change leaders are defined as "A person promoting changes in business models, business processes, corporate culture, etc." and "A person who understands business and process issues, is able to envision the ideal state and lead the change". The number of employees receiving training to develop them as change leaders.

Governance  Governance and compliance to support businesses

Through enhancement of corporate governance and thorough compliance, MOL aims to ensure transparency in Group wide management, build foundations for its initiatives on social issues through business activities, and establish sustainable value chains based on consideration for human rights, safety, and the environment.

Our group's approach for governance : MOL Group Three Basic Principles of Corporate Governance

Initiative Focus Targets and KPIs
*Figures in square brackets are target values.		 Fiscal 2024-2025 Action Plans
Management Transparency
  • Achieve management system for global growth by leveraging the collective strength of the group
  • Establish a highly effective corporate governance system
  • Enhance disclosure to encourage dialogue with stakeholders
  • Implement various measures based on the "MOL Group Three Basic Principles of Corporate Governance"
    • Continuously implement improvement measures based on evaluation of the effectiveness of the Board of Directors
    • Develop a roadmap for realizing a  board structure based on a skills matrix
    • Enhance discussions on company-wide material risks
    • Strengthen the authority of the Corporate Organization, Business Organization, and Regional Organizations, and enhance cross-checking functions
Results of effectiveness evaluations of the Board of Directors
Progress of deliberation of the Corporate Governance Council
Information Security Zero serious ICT incidents
  • Expansion of security incident operation systems and processes
  • Strengthening management of information assets and visualization of investment status
  • Development of ICT Security Zero Trust Security Enhancement Roadmap
  • Survey on the status of information and communications security measures and implementation of improvement measures
Number of serious ICT incidents *1 [0]
Responsible Procurement Respect for Human Rights Identify and reduce risks related to the environment, safety, and human rights throughout value chains
  • Disseminate and instill understanding of relevant policies within the group and among business partners to ensure their understanding
  • Continuously implement ESG surveys for business partners and expand targets
  • Continuously implement human rights due diligence
  • Expand human rights education programs
Progress of value chain management
Track record on human rights training
Fair Trade Bribery Prevention Zero compliance violations
  • Strengthen internal audit structure and implement improvement measures based on audit results
  • Continuously implement compliance-related education and enlightenment activities
Number of compliance violations *2 [0]
Number of consultations received by compliance advisory service desk
Track record on compliance training and e-learning
  • *1 Those that fall under Level 4 (most serious) of the four incident levels determined according to the scope of impact.
  • *2 Serious violations related to fair trade and bribery.

'MOL Sustainability Plan' FY2022 Results

'MOL Sustainability Plan' FY2022 Results[661MB]