Fourth Medium-Term Management Plan （1,678KB） （1,678KB）

Tokyo 5020

May 12, 2025

ENEOS Group

FY2025 - FY2027

Fourth Medium-Term Management Plan

Harnessing the Earth's power for the common good and for the day-to-day life of each individual, we will contribute to the development of our communities and help to ensure a vibrant future through creation and innovation in energy, resources, and materials.

As a member of the community Supporting day-to-day life For a vibrant future

High ethical standards Focus on customers Taking on challenges

Based on our core principles of integrity and fairness,

we conduct all of our business activities in accordance with our high ethical standards.

We strive to meet the expectations and evolving needs of our valued customers and of society as a whole through

the stable provision of products and services while creating new value as only we can.

Taking changes in stride, we rise to the challenge of

creating new value while seeking innovative solutions

for today and tomorrow.

Health, safety, and environment Moving forward

We give the highest priority to health, safety and environmental initiatives, which are vital to the well-being of all living things.

Looking to the future, we continue to grow, both as individuals and as a company, through the personal and professional development of each and every employee.

Internal

External

• Changes since disclosure of the previous Mid-Term Management Plan (May 2023)

  • JX Advanced Metals listed as part of business portfolio transformation for energy transition

  • While moving toward decarbonization, there is a growing emphasis on stable and economical energy supply.

    
    
    

    (In the immediate future, social demands for a stable supply of existing energy sources, including oil, will remain unchanged.)

    Heightened energy security awareness

    
    
    

    US policy risk

    Heightened uncertainty

    Increased cost toward decarbonization

    Difficulties in predicting projects' profitability due to inflation etc.

    
    
    

    Decided to update our Mid-Term Management Plan

• What we want to achieve in the Fourth Mid-Term Management Plan (FY2025-2027)

In order to respond to uncertainty with greater agility and flexibility, we will transform our management structure to be more robust, while maximizing corporate value through portfolio restructuring.

Transformation to a robust

management structure

Portfolio restructuring

Strengthen risk management

Utilize AI across all operations to realize significant improvements in operational efficiency and organizational streamlining

DX

Thorough improvement of efficiency

• Maximize earnings of existing businesses

  Pursue earnings improvement opportunities through comprehensive visualization of profit and loss structure including Group companies

  • Swiftly respond to changes in the business environment and also link to PDCA for improvement

Transformation to a robust management structure

Portfolio restructuring

Base and materials businesses

(Petroleum products, etc.)

Low-carbon business

(LNG, biofuels, etc.)

Strengthen early earnings generation businesses, centered on overseas fuel oil business, etc.

Prioritize resource allocation

as a step toward a decarbonized society

In addition to organic growth,

pursue growth opportunities through M&A

• Established an M&A promotion system, planning with a global perspective

Enhance investment management

Human capital management

Develop strong leaders who can overcome uncertain times

Implement job-based talent management centered on the pursuit of expertise

Aim for early realization of ROE of 10% or more

Supporting "today's normal," taking the lead for "tomorrow's normal"

• Main Section ■ Reference

1

Direction of the ENEOS Group

4

FY2025 Carbon Neutrality Plan (excerpt)

5 25

2

Review of Third Medium-Term Management Plan

5

Details of Human Capital Management, etc.

10 31

3

Fourth Medium-Term Management Plan

6 Assumptions and Financial Plan

13 34

• FY2027 Targets 14

• Business Plan 15

• Transformation to a Robust 18

  Management Structure

  (Enhancing efficiency through comprehensive

  visualization / Promotion of AI utilization)

• Portfolio Restructuring 20

  (Enhancing investment management)

• Human Capital Management 21

• Financial Plan 22

(Cash allocation and shareholder returns)

5

• The trend towards carbon-neutrality is slowing. We had anticipated that the energy transition would reach a critical juncture in around 2030, but concluded that this may occur later.

  • Even in an uncertain business environment, we will support "today's normal" through the stable supply of energy and materials, and lead "tomorrow's normal" through low-carbon and decarbonization initiatives.

Base and Materials Businesses

Enhancing the Management Base

Achieve high cash generation capability through streamlining and

strengthening the businesses

Expand business through strategic

investment

Secure options and carefully select resources to accommodate multiple scenarios

Flexible cash allocation to create value

Human

capital

AI

Our Strategy

(Petroleum Products etc.)

Low-Carbon Business

(LNG, biofuels, etc.)

Decarbonization Business

(Renewable Energy etc.)

Medium- to Long-Term Business Environment

Stable supply of petroleum products will remain crucial for the foreseeable future.

Importance of low-carbon energy

will increase during the transition period.

The energy transition trend may change significantly depending on policies, regulations, and other

factors.

• Preparing multiple options for quick and flexible responses to changes in trends toward decarbonization.

  • Building a portfolio that balances profitability and high resilience (See the Carbon Neutrality Plan for details)

    
    
    

    Current mid-term plan

    2030 2040 2050

    Slowing transition

    
    
    

    Society

• • Emissions trading begins in earnest

  • Introduction of fossil fuel surcharge

  • Introduction of paid auctions

    High uncertainty toward achieving net zero

    Realization of net zero

    Petroleum products

    Chemicals and high performance materials

    Electricity

    Base and materials businesses

    Improvement of efficiency through increased refinery operation rate Strengthening and expansion of overseas fuel oil business, etc.

    Improvement of earnings through increased productivity and focused investment in growth areas, reduction of CO2emissions through fuel conversion

    Operation of Goi Thermal Power Plants

    LNG development

    Biofuel (SAF, etc.), green materials

    Low-carbon business

    ENEOS Group

    Active injection of resources

    Wakayama SAF Biochemicals

    Renewable energy

    CCS1

    Hydrogen

    Synthetic fuel

    Decarbonization business

    H2

    
    
    

    Solar and onshore

    Ethanol (supporting E10 and E20)

    Methanol

    (Development and implementation of next-

    wind power

    
    
    

    1 Carbon dioxide capture and storage

    Offshore wind power

    Priority areas in Japan

    Priority use for industry and power generation

    generation renewable energy, in cooperation with the government and communities)

    Expansion of use Methanol, e-SAF, e-gasoline, etc.

    Copyright © ENEOS Holdings, Inc. All Rights Reserved.

    
    
    

• Leveraging our strengths, including our overwhelming business scale, diverse business areas, and advanced technical expertise, contribute to the stable supply of energy and materials that society demands in every erea

  Base and materials

  businesses

  Low-carbon

  business

  Decarboni-

  zation business

  H2

  Petroleum products
  Chemicals and high performance materials
  Electricity		- High capital efficiency through ownership of cutting-edge, high-efficiency LNG power plants
  LNG development		- Many years of experience and expertise in Southeast Asia and Oceania Malaysia: Approx. 40 years of operator experience since the aquisition, JDC's drilling technology, favorable relationships with state-run oil companies, etc.
  Liquid fuels	Biofuel, green materials	plants at 11 locations nationwide) (technology for direct synthesis of MCH [hydrogen carrier] in electrolytic cells)
  	Hydrogen Synthetic fuel
  Renewable energy		- ENEOS Renewable Energy's high power source development capabilities (solar and wind power plant generation capacity: second largest in Japan)
  CCS		- CO2storage expertise accumulated at the Petra Nova CCUS Project (US) (Feb. 2025: Achieved capture of 5 million tons of CO2)

  • Approx. 50% market share of domestic fuel oil sales, with approx. 12K service stations nationwide

  • Operating at 23 locations in 16 countries overseas, mainly in Southeast Asia

  • One of Asia's leading supply capabilities for basic chemicals

  • Fuel-efficient tire materials with joint development and global expansion through close collaboration with major tire manufacturers

  • Assets in the petroleum refining and sales supply chain adjacent to potential customers (refineries and

  • Direct MCH® technology successfully verified for the first time in the world

  • Technological capabilities cultivated at Japan's first demonstration plant capable of manufacturing synthetic fuel from raw materials through an integrated process

  
  
  

• Generate returns that exceed the cost of capital by resolving social issues surrounding energy and materials

  • Diversifying our portfolio toward sustainable growth

Current state

Low-carbon

Final year of 4th Mid-Term Mgmt. Plan

FY2027

ROIC 6%

ROE 10%

Decarbonization

Flexible response to transition

Reap the rewards of upfront investment

Base and materials businesses remaining crucial

Growth of low-carbon/decarbonization businesses

Decarbonization

Materials

FY2024

ROIC 5%

ROE 8%

Base 1

Low-carbon

FY2040

ROIC 7%

ROE 15%

Base

Operating profit: ¥429.3 billion 2

389.7

Adjusted

(excluding one-time : ¥ bn 3

factors etc.)

FY2030

ROIC 6%

ROE 12%

Operating profit: ¥500.0 billion

1 Including JX Advanced Metals, NIPPO, etc.

Materials

Operating profit: ¥600.0 billion Operating profit: ¥900.0 billion

2 Operating profit incl. discontinued operations / excl. inventory valuation

3 Consolidated financial statements of the ENEOS Group excluding one-time factors (gain on the sale of JXAM shares, impairment of goodwill in the Petroleum Products business) and the impact of time-lag, and including JXAM operating profit as share of profit of entities accounted for using equity method.

10

Strengthening the management base

• Listing of JX Advanced Metals (JXAM)

  • To transform our business portfolio and maximize our corporate value, listed JXAM on the Tokyo Stock Exchange Prime Market to manifest its value

    • JXAM was changed from a consolidated subsidiary to an equity-method affiliate (42.4% shareholding).

  • Made careful preparations to maximize JXAM value by concentrating on the semiconductor business

    • Transfer of 70% of shares of Caserones copper mine operating company

    • Transfer of 3.27% of Los Pelambres copper mine rights and interests

    • Transfer of 20% of shares of Pan Pacific Copper Co., Ltd.

• Change in Group operating structure

  • Dissolution of integrated management with holding company

    ENEOS Holdings and ENEOS dissolved the "substantial holding company" structure, strengthened governance, and promoted strategic leadership-type portfolio management.

• Balance sheet management

  • Reviewed our assets and business structures Sale of strategic shareholdings, partial transfer of maritime transportation business, etc.

  • ¥250.0 billion in share buybacks

    Establishing a solid earnings base

• Reduce refinery trouble / strengthening competitiveness

  Accelerating the realization of energy transition

• Reduce our greenhouse gas emissions

  • Steadily improved through various measures such as bringing inspections forward and enhancing construction

  • CCS

    Promoting research projects for value chains

  • Forest absorption

    Steadily generated credits (300kt/year)

    quality

    UCL [unplanned capacity loss] 9% (FY2022) → 5% (FY2024)

    (Offshore Western Kyushu CCS, Northern Offshore Malay

    Peninsula CCS)

  • Restructure production/supply systems

    • Considering shutting down one Kawasaki ethylene unit

    • Suspended lubricant production at Yokohama Plant and

    • Contribute to the reduction of society's greenhouse gas emissions

    considering relocating to another site

• Maximize value of Oil and Natural Gas E&P business

  • Started production on Tangguh LNG project and projects for additional development in Malaysia

• Renewable energy

  Steadily expanded power generation capacity (1,370MW 1)

• SAF

Started supplying imported SAF to multiple airlines

Building an in-house manufacturing system at Wakayama Plant

• Synthetic fuel

  Completed Japan's first demonstration plant capable of manufacturing synthetic fuel from raw materials through an integrated process, and started demonstration operation

  1 Total of operating and under-construction power plants

  
  
  

  13

  3

14

FY2027 Target

¥320.0bn

¥500.0bn

Fourth Medium-Term Management Plan: FY2027 Targets

FY2024 Results Changes

Capital

efficiency

ROE 1

ROIC

Profit excl. inventory

valuation

Assumption for FY27 Crude oil (Dubai) 75$/B Exchange rate: ¥150/$

Profit

Operating profit

Net D/E ratio 3

¥266.4bn

2

¥429.3bn

1 R is the profit attributable to owners of the parent excluding inventory valuation

2 Operating profit incl. discontinued operations / excl. inventory valuation

To appropriate leverage level

3 Based on examples disclosed by other companies, this includes lease obligations and excludes non-controlling interests from the Fourth Medium-Term Management Plan (adjusting for hybrid bonds on a total asset basis)

We aim to maximize cash inflows by further improving efficiency and strengthening early earnings generation businesses, while establishing a low-carbon and decarbonized supply base with a view to a decarbonized society.

Decarbonization

• Hydrogen

  • Considering hydrogen production, transportation, and supply to industrial and transportation operators in Japan for the establishment of a large-scale hydrogen supply chain

• Synthetic fuel

  • In parallel with demonstration operation aimed at establishing the technology,

run Japan's first synthetic fuel shuttle buses at the Osaka-Kansai Expo to raise public awareness

Plate

1 Carbon dioxide Capture, Utilization and Storage: Technology that utilizes CO₂ injected and stored underground

1 VPP service for families

2 Service that optimizes the charging and discharging of EVs at their destination

3 power purchase agreement

Copyright © ENEOS Holdings, Inc. All Rights Reserved.

18

Transformation to a Robust Management Structure

(1) Enhancing Efficiency through Comprehensive Visualization

• Thorough improvement of efficiency for a robust management structure

  Improvement of ROIC through comprehensive visualization	Improvement of ROIC and strengthening governance of Group companies
  Support and promote improvements of each company By supply chain level By area By customer segment By affiliate	(Companies included in the Group: 651 companies [number as of March 2025]) ROIC improvement Strengthening governance Strengthen fundamental Visualize Strengthen profitability management situation internal control Tighten investment Respond to Strengthen management sustainability information (reduction of invested capital) disclosures security
  Risk management

  • Establish FP&A organization (April 2025)

  • Deepen ROIC management by establishing comprehensive improvement measures

  • Provide high-quality information quickly in response to changes in the business environment and also link it to actions for improvement (PDCA)

  • Seek further ROIC visualization, not limited to ROIC by business unit

  • Regularly evaluate Group companies in terms of capital efficiency and strategic alignment

  • Restructure the organizational structures of Group companies based on the evaluation results, and improve earnings and strengthen governance through ROIC management.

  • In light of the increasing uncertainty surrounding the business environment, establish a Chief Risk Officer (CRO) and a Risk Management Department to strengthen organizational structure

  • Identify important risks across the Group, formulate rapid and appropriate countermeasures (mitigation plans), and work to reduce risks

  19

  Transformation to a Robust Management Structure

  (2) Promotion of AI Utilization

• Launch a dedicated organization to promote the utilization of AI and pursue the potential of AI utilization across all operations, including the supply chain, and make significant improvements in operational efficiency and organizational streamlining through data-

  driven optimization

  Tomorrow's normal utilizing AI

  R&D

  • Development of new materials utilizing atomic simulations (Matlantis)

  • Advanced R&D in automated testing analysis, patent analysis, etc.

  • Power generation volume forecasting AI and optimal control of EMS 1

  • Wind power generation anomaly detection

DX

Digital and IT personnel

What is necessary to make tomorrow's normal a reality

Data preparation for AI utilization Identification of best solutions Personnel able to complete projects

Data utilization

Digital technology capabilities

Security

Four driving forces to be strengthened during the Fourth Medium-Term Management Plan period

1 Energy Management System

• Strengthen system for careful selection of investments and maximization of returns for portfolio restructuring

  Reorganization of investment screening system  Aim to reduce investment by 5% through investment screening (improve capital efficiency) investment screening team) and apply uniform investment screening rules to Gate 0 Gate 1 Gate 2 Gate 3 all investment projects screening through third-party reviews and functional reviews by Stage 0 Stage 1 Stage 2 Stage 3 Execution CxOs Proposal Examination starts FS FEED in corporate management, and conduct strict investment screening No Go No Go No Go No Go
  Investment reappraisal		Establishment of PMI (PMI: post merger integration)
  Review of strategy Execution of Reappraisal Maximization of investment investment performance Reallocation of management resources		Strengthen the holding company's PMI system (establish a new PMI promotion team) and link this system with the gate system to utilize it for both promotion and screening in the future

  • Strengthen the holding company's screening system (establish an Investment screening system

  • Define detailed requirements at each gate, and conduct comprehensive

  • Add additional intermediate gates for projects that are particularly important

  • Organize guidelines for reappraisals after a certain period following the execution of investment projects (start/closing)

  • Analyze the gap between the initial plan and current status, and take necessary measures, including reviewing business strategies and reallocating management resources, to maximize investment performance

  • M&A is extremely important as a means of promoting portfolio transformation to achieve the Long-Term Vision.

  • In M&A, PMI is particularly vital for success to maximize synergies and managing risks after acquisition.

  • New PMI Guidelines were established in FY2024 to improve PMI quality.

• Implement human resources strategy enabling the realization of portfolio restructuring (see p. 32)

  • In particular, focus on developing strong leaders who can overcome uncertain times (succession management), thoroughly

implementing job-based talent management centered on the pursuit of expertise, and fostering a corporate culture where

75% or

more

expert global

¥70,000

¥100,000

or more

perspectives

etc.

Digital

expert Engineer

with

Person

M&A

Growth opportunity score 1 & 2 Training cost per person

Effective personnel Independent career Strengthening of recruitment development development of external personnel

Actively support growth Visualize post requirements and skills 60% of new hires have work

of personnel experience 3

Job-based talent management

Dynamic personnel portfolio

Establish a future personnel portfolio and thoroughly implement talent management centered on assignment of the right person to the right job to resolve gaps

56%

Strengthen operational effectiveness of strategic selection, development, and appointment processes of personnel who will lead Group management for the next generation

• Selection and development ● Appointment

Clarify selection criteria and perform fair Visualize the capabilities of the entire

recruitment to implement strategic HR management team, and select

development from an early stage successors through effective discussions

Assigned to ●● project Transferred to ▲▲ division Seconded to ◆◆

Goal (CxO, etc.)

employees can work comfortably and with pride

Impact through operation

1 Average positive response rate for engagement survey questions related to each item

2 Only includes results of ENEOS Holdings and ENEOS

3 FY2024 results of ENEOS

4 A state in which an employee continues to work without taking time off despite physical or mental health issues, resulting in decreased productivity (percentage of lost labor productivity)

Copyright © ENEOS Holdings, Inc. All Rights Reserved.

• 3-Year Cash Allocation for the Medium-Term Management Plan

  Net profit

  (excl. inventory)

  ¥820.0bn

Cash IN Cash OUT

Capital

• Allocation Management

Low-carbon

(LNG development, SAF, etc.)

¥310.0bn

March 31, 2028

0.7 to 0.9x

March 31, 2025

0.48 x

• Financial discipline (Net D/E ratio 1)

• Execute flexible and strategic cash allocation to selective strategic investments, including M&A, or additional returns (around ¥500.0-1,000.0bn)

  • Ensure flexibility even in an uncertain business environment

    • Approach to establishing financial discipline

• Determined after comprehensively considering the perspectives of maintaining the current credit rating and the need to reduce the cost of capital

1 Based on disclosures by other companies, including lease liabilities and excluding non-controlling interests from the Fourth Medium-Term Management Plan (including hybrid bonds)

• FY2025 dividend policy: Based on our determination to realize the 4th Mid-Term Mgmt. Plan, determined a dividend per share of ¥30

• Return Policy in the 4th Mid-Term Mgmt. Plan: Progressively increase dividends based on financial results, starting from ¥30/share dividends

On average over the 3-year period, 50% or more of net income excl. the impact of inventory valuation will be returned

through dividends and share buybacks. (No change to the approach in our Basic Policy and Return Policy below.)

Return Policy: Returning profits to shareholders continues to be an important management issue.

With the basic policy of implementing returns reflecting medium-term consolidated performance and forecasts,

strive to continue to provide stable dividends.

Capital Policy: Secure sufficient financial soundness and liquidity to withstand resource price volatility and other business risks and enable procurement of capital for sustained investment in growth.

Historical Dividends

2nd Mid-Term Mgmt. Plan (FY20-22)

Based on the above, utilize constant financing to maintain an optimal capital structure and capital costs.

3rd Mid-Term Mgmt. Plan (FY23-24)

4th Mid-Term Mgmt. Plan (FY25-27)

¥26/share

¥30/share

FY20

FY21

FY22

FY23 FY24

FY25 FY26 FY27

Supporting "today's normal,"

taking the lead for "tomorrow's normal"

We continue to support everyday life with tireless efforts

and strong leadership.

We take action for positive change and continue to take on challenges, while pursuing every possible combination of the strengths of diverse people, technologies, and ideas.

"Today's normal" in our day-to-day lives―its presence is anything but ordinary.

From the time when "today's normal" life was not ordinary, the ENEOS Group has always been a frontrunner, committed to developing and supplying energy and materials essential to the everyday life of each age.

Now, we aim to achieve "tomorrow's normal," a decarbonized, recycling-oriented society, where next-generation energy, materials and services are essential.

We will continue to take the lead in creating and innovating "tomorrow's normal" to be a corporate group that is trusted by and indispensable to society.

With the aim of realizing a carbon neutral society, in addition to reducing the ENEOS Group's greenhouse gas emissions, we will promote energy transition and a circular economy to contribute to the reduction of society's greenhouse gas emissions.

Based on the Fourth Medium-Term Management Plan, we have updated the Carbon Neutrality Plan as a roadmap to pursue the above.

1 The basic energy policy of the Japanese government. With Safety as a major premise, it aims to simultaneously achieve Energy Security, Economic Efficiency, and Environment.

Reduction of our greenhouse gas emissions1

(Scope 1+2)

CO2

Mitigation of greenhouse gas emissions

• Appropriate processing of crude oil (according to demand)

• Reduction of greenhouse gas emissions in manufacturing and business operations (energy saving, fuel conversion, utilization of renewable energy, etc.)

• Utilization of carbon credits and other similar mechanisms2

  Reduction through CO2 fixation CO2

• CCS (Carbon dioxide capture and storage)

  (Including new methods such as BECCS3 and DACCS4)

  Enhancement of the biogenic CO2 removals

• Generating carbon credits through removal by forests

  and other similar methods5

  Promotion of energy and materials transition

  H2

  Contribution to the reduction of greenhouse gas emissions in society

  (Scope 3, avoided emissions)

• Promotion of low-carbon fossil fuels and products

  (LNG and avoided emissions products)

• Expansion of renewable energy (solar and wind power)

• Utilization of resources such as biomass (biofuels and bio-based materials)

• Decarbonization of fossil fuels (CCS for other companies and CDR6)

• Utilization of hydrogen (hydrogen and synthetic fuels7)

  Promotion of a circular economy

• Promotion of resource recycling

• Resource conservation, promoting environmental contributions' value, etc.

1. This includes initiatives of both reduction and removal actions. Removal is conducted as a mitigation activity outside the value chain. These activities are also applied to offset the operational emissions through the generation of credits.

2. This includes non-fossil certificates and other similar mechanisms. 3 Bioenergy with carbon capture and storage. Capture and storage of CO2 emitted during biomass power generation 4 Direct air capture with carbon storage. Direct capture and storage of CO2 from the atmosphere 5 This includes biogenic CO2 removals and emission mitigation methods such as blue carbon and rice paddy methane suppression in addition to afforestation and forest management. 6 Carbon dioxide removal 7 This includes bio-derived fuels.

Assuming uncertainty in the future business environment, we have presumed three societal scenarios.1 Amid the increasing uncertainty surrounding climate change,

we aim to capture global trends and respond swiftly to future trends.

We will formulate a resilient carbon-neutral strategy based on the emission reduction pathways corresponding to each scenario.

Japan's greenhouse gas emissions

Societal trends

Energy trends

Global average temperature2

(2040)

Global emissions3

(2040)

100%

(FY2013 baseline)

Progress of a carbon-neutral society

80%

60%

40%

20%

0%

2013 2020 2030 2040

Drift

(-45%)

Current

(-56%)

Beyond

(-76%)

1. This is a summary of future projections based on the IEA WEO2024 and IPCC Sixth Assessment Report, and it does not indicate the emission reduction targets or strategies of the ENEOS Group towards achieving carbon neutrality.

2. Based on the average temperatures between 1850 and 1900 3 Uses emissions from 2020 as the base year

(Units: million tons per year)

FY2013

[Legend]

Net emissions (actual)

Net emissions (target)

(Million tons per year)

Current scenario

Drift scenario

-38%

Greenhouse

gas emissions 34

Scope 1+2

-46%

25

-60%

Beyond

scenario -73%

Carbon Neutrality

2013

(Baseline year)

2018

2023

2030

2035

2040

2050

(FY)

Assumed reduction of greenhouse gas emissions2

(Million tons

per year)

Demand shift due to progress

in energy transition

Mitigation of Emissions

CO2

Fixation

-73%

34

-0.5 to -2

-2 to -5

Biogenic CO2 removals

-2 to -6

10

(Baseline year)

FY2040

net emissions

(Baseline year, actual)

FY2023

(Actual)

FY2030

FY2035

FY2040

FY2050

1. Greenhouse gas emissions and emission targets may be adjusted as necessary, taking into account the application of future Sustainability Standards Board of Japan (SSBJ) Climate Standard.

2. Assumes that the external environment, including policies and regulations by the government and other parties, has been sufficiently developed to achieve Japan's NDCs across the entire nation.