Sustainability / Materiality
Sound corporate governance serves as the backbone to a responsible management structure that is accountable to shareholders and other stakeholders. We aim to maintain a robust and effective corporate governance structure that lays the managerial foundation for long-term business growth, helping us to achieve our mid-term business plans and make sustainable progress across all of our material issues.
ENEOS Renewable Energy’s business is conducted with the oversight of our Board of Directors. The primary responsibility of the Board of Directors is to make significant management decisions and provide oversight over senior management. The Board consists of directors, including director from the parent company, and is required to meet once a month at minimum. To ensure checks and balances against the operation of the Board of Directors, ENEOS Renewable Energy appoints, in accordance with the law, Corporate Auditors who have necessary knowledge and experiences to supervise the execution of duties of the Board of Directors.
Our executive directors in turn play an important role in increasing operational efficiency, with one such responsibility being their participation in the Executive Committee. The Executive Committee comprises executive directors, executive officers, and the heads of our divisions and is responsible for deliberating on management decision-making matters.
Executive directors receive base compensation, performance-linked compensation tied to the achievement of management targets based on corporate philosophy, and parent company stock as compensation.
To become a company that gains absolute trust from society, ENEOS Renewable Energy (ERE) has established the “4 Ss” of ERE Promise as shared values among employees, declaring our commitment to zero-tolerance compliance with laws and corporate ethics and thorough implementation of fair and honest corporate activities. We strictly prohibit fraudulent activities in any form, including bribery, kickbacks, and insider trading, and regularly conduct compliance training for executives and employees.
Additionally, we believe it is important to ensure compliance across our entire group, including subsidiaries, and have developed a compliance manual applicable to the entire group while working to ensure thorough understanding. Furthermore, starting in fiscal 2025, based on the ENEOS Group Procurement Policy, we have established ENEOS Renewable Energy Supplier Procurement Guidelines and are requesting cooperation from suppliers to understand the policy and guidelines.
While we expect compliance to be maintained through the chain of command, we have established internal reporting channels in case resolution cannot be achieved through the chain of command. Our employees can report to the internal reporting channels when they become aware of compliance violations or potential violations, such as legal violations or harassment. Whistleblowers can file reports anonymously; when reports are made, we conduct necessary investigations and, if compliance violations are revealed through investigation, implement corrective measures and recurrence prevention measures as needed. Additionally, we prohibit any disadvantageous treatment of whistleblowers, such as demotion or salary reduction, stemming from their reporting.
In 2021, we established an external contact office for whistleblowers via our website to allow any of our business partners to report violations or suspected violations of corporate compliance by our staff members or officers.
Identifying, assessing, and managing risks and opportunities is foundational to meeting our corporate mission and business objectives. To ensure a consistent, formalized approach across the business we have established a Risk Management Policy, which is to be observed by all ENEOS Renewable Energy employees, Board members, contractors, and part-time employees.
As per our Risk Management Regulation, the ultimate responsibility for risk management rests with President and Chief Executive Officer. Potential risks identified by the HSE Committee and each division, along with their assessments, are regularly reported to the Executive Committee. We have established a system to conduct regular internal control inspections and risk assessments while continuously updating prevention and countermeasures.
* Please scroll horizontally to see the table below.
| Indicators | 2021 | 2022* | 2023 | 2024 | |
|---|---|---|---|---|---|
| Number of reports to the whistleblowing hotline | 1 | 7 | 11 | 8 | |
| Compliance with laws, regulations and corporate ethics | 1 | 0 | 1 | 1 | |
| Coexistence with the global environment and local communities | 0 | 0 | 0 | 0 | |
| Proper management of assets and information | 0 | 0 | 1 | 0 | |
| Respect for humanity | 0 | 7 | 9 | 7 | |
| Number of group compliance trainings conducted for each subject | 5 | 5 | 5 | 5 | |
| Number of compliance trainings conducted by e-learning | 12 | 15 | 12 | 12 | |
* 15 months from January 2022 to March 2023
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