We usher in the start of the second year of the new company, which was launched last April through business integration with Showa Shell Sekiyu K.K.
Our business environment involves a host of challenges, including a mid- to long-term decline in demand in the Japanese petroleum industry and climate change, which should be addressed at the global level. At a more immediate level, we are facing a highly uncertain future due to the new coronavirus pandemic and plummeting crude oil prices. We should not think of these challenges as “threats” with our heads down. Rather, we should take them as “good opportunities” to revisit and reform our business structures and operational procedures. By evolving into a resilient business entity that can flexibly cope with any change in our business environment, we remain committed to fulfilling our social mission as an energy company.
Last year, we released the first Medium-term Management Plan (FY2020-2022) of the new integrated company. The mid-term plan envisions multiple scenarios regarding business conditions through 2050–the target year for the Paris Agreement–and describes our vision for 2030. The plan then sets out two basic policies. The first policy of “realizing a resilient business portfolio” has three key objectives: structural reforms to core revenue-generating businesses, expansion of growth businesses, and creation of next-generation businesses. The second policy of building a business platform suited to the needs of society is aimed at reducing GHGs, enhancing roles and functions of the Board of Directors, and utilizing digital technologies to create new value. We take on these and other challenges required of a corporate citizen today and constantly move forward as ‘an energy co-creation company’, as called for in our Management Vision.
Cooperation with our stakeholders is vital for us to continue to fulfill our social mission and create new value. We continue our value-creation quest by combining the potential of human beings together with our customers in Japan and worldwide, local communities where we operate, dealers and distributors with close ties to such communities, local subcontractors in the distribution and maintenance sectors, and our business partners–suppliers in Japan and worldwide, including oil-producing countries–as well as our employees with diverse backgrounds.