ENEOS Holdings (formerly JX Holdings Inc)

InfluenceMap Score
D-
Performance Band
45%
Organisation Score
44%
Relationship Score
Sector:
Energy
Head​quarters:
Tokyo, Japan
Official Web Site:
Wikipedia:

Climate Lobbying Overview: ENEOS somewhat actively engages various climate policies in Japan, and despite positive top-line messaging on 2050 carbon neutrality, takes highly negative positions on the energy mix and carbon pricing. ENEOS holds key climate positions with the influential Keidanren and a number of petroleum-related lobbying associations in Japan, which are negatively engaged on various strands of climate policy.

Top-line Messaging on Climate Policy: ENEOS’s top-line statements on climate policy appear to be broadly positive. At a round table on 2050 carbon neutrality organized by Keidanren in June 2021, ENEOS Chairman Tsutomu Sugimori offered strong top line support for Japan’s 2030 GHG targets and 2050 carbon neutrality targets, and broadly asked the government for regulatory and financial support towards technology solutions. On its website as of February 2021, ENEOS recognized some elements of climate change science and acknowledged certain trends driven by the Paris Agreement. In the pamphlet for the November 2021 Energy Symposium organized by ENEOS and attended by Japanese government officials, the company appeared to generally support the UNFCC process, including the Paris Agreement.

Engagement with Climate-Related Regulations: ENEOS has engaged predominantly negatively with climate policy in Japan. ENEOS has frequently opposed carbon pricing, including carbon tax and the emissions trading scheme (ETS). Speaking as the Chair of the Petroleum Association of Japan (PAJ) in December 2021, ENEOS Chairman Sugimori reiterated that the oil sector opposes a carbon tax, because it undermines the “3E+S principles” (energy security, economic efficiency, environment and safety) while the effectiveness of existing “energy-related taxes such as the global warming tax, petroleum and coal tax, and gasoline tax” has “not been sufficiently verified”. In February 2021, Sankei News reported that the ENEOS Chairman argued against carbon pricing, including carbon tax and ETS claiming that they will “make Japan even less competitive and deprive it of the resources for technological innovation which are key to decarbonization”. Similarly in a Nikkei interview in December 2020, the ENEOS Chairman strongly opposed a carbon tax, arguing that it would “remove resources for technology innovation.”

Positioning on Energy Transition:
ENEOS demonstrates negative engagement regarding the energy transition in Japan. Both the retail and upstream companies of the ENEOS group are actively engaged with Japanese policymakers on the oil, gas and petrochemical industry. In the Japan Ministry of Economy Trade and Industry (METI) Committee on Resources and Fuels in March 2021, the President of JX Petroleum Development, Hiroshi Hosoi called for government assistance for technology solutions such as carbon capture, utilization and storage (CCUS) and carbon recycling to decarbonize and expand the upstream oil and gas sector. In December 2020, Hiroshi Hosoi expressed concern about the costs of decarbonization.

In a METI Committee meeting in March 2021, ENEOS Chairman urged “the government to provide unprecedented and bold support in terms of budget, taxation, and finance for securing resources, technological development, and implementation to support carbon neutrality” for new technologies, such as “CCS and carbon recycling next generation biofuels, CO2-free hydrogen, and synthetic fuels”, while also “continuing to promote upstream development” to mitigate geopolitical risks and indicating that “oil will continue to be an important energy source in the transition toward 2050”. The company also asked METI for "urgent and maximum support mobilizing all government policy measures" to increase investment into oil and gas supply chains in July 2020. At the METI Committee on Resources and Fuels in July 2020, ENEOS Chairman Sugimori presented the Petroleum Association of Japan’s sectoral plan for “sustainable oil”, which includes the reduction of the carbon intensity of oil products and increasing the use of renewables, CCUS, carbon recycling and other innovative technology. In the same committee in December 2020, Mr. Sugimori stressed the importance of oil in the energy mix and urged the government to “strengthen” its support.

In the pamphlet for the November 2021 Energy Symposium organized by ENEOS and attended by Japanese government officials, the company promoted renewable energy and decarbonization of the non-power sector, while also supporting hydrogen production from brown coal, and the combustion of ammonia with coal in power generation with unclear timelines for decarbonization. In its October 2021 press release, ENEOS stated that natural gas-fired thermal power stabilizes electricity supply by complementing renewables and “will play an important role in the gradual decarbonization process” as a “raw material with the lowest carbon content of all fossil fuels.” At a round table on 2050 carbon neutrality organized by Keidanren in June 2021, ENEOS Chairman supported the introduction of a feed-in-premium (FIP) and capacity mechanisms in order to promote renewable energy.

Industry Association Governance: ENEOS discloses a list of affiliated industry associations on its website, including details of the type of membership held, but with limited details of how the company influences the associations’ climate change policy positions. ENEOS has not published a review of its industry association memberships’ alignment on climate change. In its CDP 2021 response, ENEOS disclosed its membership to two organizations, the Petroleum Association of Japan and the Japan Business Federation (Keidanren), both of which have active and negative climate policy engagement. ENEOS Chairman Sugimori is the President of the Petroleum Association of Japan. Chairman Sugimori is also the Vice Chair of Keidanren, as well as the Chair of Keidanren’s committee on Environment and Safety, “which is in charge of global warming countermeasures at Keidanren, and 2019 ENEOS attended COP25 as a representative of Keidanren to support the Japanese government.”

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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
48%
 
48%
 
27%
 
27%
 
60%
 
60%
 
41%
 
41%
 
38%
 
38%
 
47%
 
47%
 
36%
 
36%
 
49%
 
49%
 
52%
 
52%
 
44%
 
44%
 
57%
 
57%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.