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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.

Review candidate Sustainability Issues
Examine risks (negative impact) and opportunities (positive impact) in value chains
Evaluate importance from two axes of stakeholders and the MOL Group
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 the three-year plan for 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.

Initiative Focus Targets KPIs Fiscal 2023-2025 Action Plans
Value through Our Core Business
  • Provide sustainable value through marine transport and social infrastructure business
  • Transport volume (ton-mile)
  • Implement strategies set forth in the management plan
Safety Levels
  • Rigorously ensure safe operation and eliminate accidents

    Numerical Targets

    • 4 ZEROS
      • Zero serious marine incidents
      • Zero serious cargo damage
      • Zero oil pollution
      • Zero fatal accidents
    • SPI(FY2025, 2030, 2035 targets)*1
      / Fiscal Year
      2025 2030 2035
      Lost time injury
      ≤0.50 ≤0.40 ≤0.30
      Average downtime
      (hours per ship
      per year)*3
      ≤24.00 ≤22.00 ≤20.00
      frequency rate
      (incident per ship
      per year)*4
      ≤1.00 ≤0.80 ≤0.60
  • Number of serious marine incidents
  • Number of serious cargo damage
  • Number of oil pollution
  • Number of fatal accidents
  • Lost time injury frequency
  • Average downtime
  • Downtime frequency rate
  • Strengthen support of safe operation, including the use of ICT technology
    • Establish systems and structures that will help seafarers improve their skills and maintain their attentiveness, as well as increase their safety awareness
    • Onboard DX promotion and workstyle reforms
    • Enhance land-based support systems and functions
  • Promote initiatives that lead to improved level of safety
    • Promote improvement activities/reforms through visits to group-operated vessels, ship management companies, and shipowners
    • Ongoing training to foster safety culture
    • Establishment of Safety Vision (scheduled for FY2023)
Creation of New Added Value
  • Create services that meet social needs
  • 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
  • Steadily promote existing projects and explore new service opportunities
    • Employment agency businesses that recruit personnel outside Japan, Blue carbon businesses, businesses of MOL PLUS Co., Ltd., etc.
  • Continuously commercializing new businesses proposed by employees
  • *1 Safety Performance Indicator.
  • *2 The number of work-related accidents per one million hours worked; the scope of calculation includes any workplace illness or injury that prevents a worker from resuming normal duties or light duties on the day the illness or injury occurs, regardless of whether the illness or injury requires disembarkation.
  • *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.

Initiative Focus Targets KPIs Fiscal 2023-2025 Action Plans
Climate Change Countermeasures
  • Achieve net zero GHG emissions for the entire Group by 2050

    Numerical Targets

    • Achieve 45.0% reduction in the GHG emission intensity of transport by 2035 (compared to that of 2019)*1
    • Reduce GHG emissions by 23% by 2030 (compared to that of 2019)*2
    • Reduce GHG emission intensity by 1.4% per year (compared to that of 2019)*3
    • 90 LNG/methanol-fueled ocean-going vessels by 2030
  • GHG emissions and emission intensity
  • Number of LNG/methanol-fueled ocean-going vessels
  • Amount of environmental investment in climate change countermeasures
  • 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
Preservation of Marine Environments
  • Reduce negative impact on the marine environment and biodiversity
*Planning to set KPIs based on international guidelines, etc.
  • Identify and analyze nature-related risks and opportunities
  • Consider new KPIs and targets
Protection of Biodiversity
Prevention of Air Pollution
  • Reduce air pollutants emitted from vessels

    Numerical Targets

    • Reduce SOx emissions intensity of transport by 14% by 2030 (compared to that of 2020)
  • NOx emissions and emission intensity
  • SOx emissions and emission intensity
  • *1 Scope 1 and part of Scope 3 for MOL Group-operated ocean-going vessels.
  • *2 Scope 1 and Scope 2 for the entire group (consolidated scope).
  • *3 Scope 1 and part of Scope 3 for MOL Group-operated ocean-going vessels. Average through 2030.

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.

Initiative Focus Targets KPIs Fiscal 2023-2025 Action Plans
Diversity, Equity & Inclusion
  • Realize a work environment in which a diverse personal can play active roles

    Numerical Targets

    • Percentage of female employees in managerial positions (Office workers, non-consolidated)  15% (FY2025 targets)
    • Percentage of MOL Group Key Positions (MGKP) *1 tenured employees (FY2025 targets)
      • Female  8%
      • Percentage of employees not from Head Office  30%
      • Under 40s  15%
  • Percentage of female employees in managerial positions (Office workers, non-consolidated)
  • Percentage of MGKP tenured employees (female, employees not from head office, under 40s)
  • Implement human capital acquisition and allocation
  • Implement measures to realize "the right person in the right position"
  • Implement technology-based talent management
  • Support for self-directed career development
  • Implement measures to realize high-level engagement of MOL Group employees
  • Enhance functions of sections handling of human resources in MOL Group
  • Enhancement of "attractiveness" to attract marine engineers
Mutually Empowered
  • Establish an environment for "Mutually Empowered" to maximize individual and group-wide organizational capabilities

    Numerical Targets

    • Implementation rate of opportunities for dialogue (communication) to realize and implement the Group's Mission/Vision/Values (MVV)  100%(FY2025 targets)
    • Number of transfers due to open recruitment  More than 50 cases(FY2025 targets)*2
  • Implementation rate of opportunities for dialogue (communication) to realize and implement the Group's MVV
  • Number of transfers due to open recruitment
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

    Numerical Targets

    • Engagement Survey (ES) Response Rate  More than 90%(FY2025 targets)
    • Percentage of organizations that improved their KPI score for "Engagement" in ES results  More than 70%(FY2025 targets)
  • ES Response Rate
  • Percentage of organizations that improved their KPI score for "Engagement" in ES results
Growing Together with Local Communities
  • Expand activities that contribute to the growth and development of people and communities involved in our business
  • Results of corporate citizenship activities
  • Progress of activities benefiting local communities in Mauritius
  • Corporate citizenship activities
    • Build relationships with NGOs and NPOs
    • Strengthen cooperation with group companies and expand initiatives
    • Expand training programs and systems to raise employees' awareness of social issues
    • Strengthen activities that contribute to human capital development through maritime education, etc.
  • Community contribution activities in Mauritius
    • Establish relationships with NGOs, NPOs, academic institutions, etc. through two funds
    • Revitalize communities by networking among grant recipients
      • Mangrove conservation, support for local industries, promotion of education, empowerment of women, etc.
    • Visualize activity results through social impact evaluation
  • *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.

Initiative Focus Targets KPIs Fiscal 2023-2025 Action Plans
Groupwide Adoption of Clean Energy
  • Introduce and increase the use of clean alternative fuels for vessels

    Numerical Targets

    • Deploy approximately 130 net-zero GHG emissions ocean-going vessels by 2035
    • Deploy commercial net-zero GHG emissions ocean-going vessels in the 2020s
    • Percentage of zero-emission fuels used in 2030  5%
  • Number of net-zero GHG emission ocean-going vessels
  • Percentage of zero-emission fuels used
  • Promote the development of related technologies
    • Ammonia-fueled vessels, methanol-fueled vessels, hydrogen-powered vessels, use of fuel cells/batteries, etc.
  • Develop technologies that contribute to the spread of clean energy in society
  • Progress in developing next-generation clean energy carriers/bunkering vessels
  • 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
Increasing the Energy Efficiency of Vessels
  • Use natural energy and establish and promote energy-saving technologies that help improve propulsion performance

    Numerical Targets

    • 25 vessels with the Wind Challenger (hard sail wind propulsion system) by 2030
  • Number of vessels equipped with the Wind Challenger
  • Number of vessels adopting other energy-saving technologies
  • 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.
ICT Utilization for Safe, Efficient Operation
  • Upgrade, expand, and establish platforms using vessel-related big data (the FOCUS Project etc.)
  • Progress of the FOCUS Project
  • Progress of the Fleet Guardian Project*4
  • 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
  • Establish technologies for autonomous vessel navigation
  • Progress in developing technologies for autonomous vessel navigation
  • Formulate development plan in light of sea trials
  • Select partners and conduct verification with a view to installation
DX(Digital Transformation)
  • Digitalize to improve company productivity and optimize processes

    Numerical Targets

    • Conversion rate to work for value creation and safety (cumulative)
      • 10% (FY2025)
      • 20% (FY2030)
      • 30% (FY2035)
  • Conversion rate to work for value creation (land-based work)*5
  • Conversion rate to work for safety (onboard duties)*6
  • Number of change leaders*7
  • 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
  • *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.

Initiative Focus Targets KPIs Fiscal 2023-2025 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
  • Results of effectiveness evaluations of the Board of Directors
  • Progress of deliberation of the Corporate Governance Council
  • 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
Information Security

Numerical Targets

  • Zero serious ICT incidents*1
  • Number of serious ICT incidents
  • Strengthen ransomware protection
  • Optimize security incident operations processes
  • Strengthen management of information assets and visualize operational status
  • Strengthen detection and prevention measures for behavior that could be a precursor to virus infection, etc.
Responsible Procurement
  • Identify and reduce risks related to the environment, safety, and human rights throughout value chains
  • Progress of value chain management
  • Track record on human rights training
  • 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
Respect for Human Rights
Fair Trade

Numerical Targets

  • Zero compliance violations*2
  • Number of compliance violations
  • Number of consultations received by compliance advisory service desk
  • Track record on compliance training and e-learning
  • Strengthen internal audit structure and implement improvement measures based on audit results
  • Continuously implement compliance-related education and enlightenment activities
Bribery Prevention
  • *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]