Third party opinion

Read the J-Oil Mills Report 2024

There is a notable trend in the disclosure of corporate information. In Japan, a new section for "Sustainability-related principles and initiatives" has been added to securities reports from the fiscal year ending March 2023. Internationally, the International Sustainability Standards Board (ISSB) published "General Sustainability Standards" in March of the same year, and in response to this, Japan also released a draft standard in March 2024. In addition, a working group of the Financial System Council is discussing "methods for the disclosure and assurance of sustainability information."
Although discussions on statutory disclosure appear to be taking precedence, I believe that the division of roles for integrated reports, which are optional disclosures, is becoming more important than ever. Much of the information that will form the core of future information, such as business models, value creation processes, and strategies, will likely be left to integrated reports. Therefore, integrated reports will be questioned as to whether they are able to disclose information based on originality and ingenuity in order to effectively communicate that information.
Our company responds sincerely to improvement suggestions made at opinion exchange meetings and the like, and has creatively and ingeniously embodied them in this report. The basis for this is the establishment of a "basic concept," which is also partially introduced in the editorial policy. In today's world, where there are various disclosure requests, it is important to clearly state a "basic concept" when disclosing information. This includes "developing a story through specific explanations" and "being conscious of promoting understanding among stakeholders and leading to dialogue."
In line with the basic concept, the CxO, outside director, or executive officer in charge sends a message at the beginning of each piece of content, which contributes greatly to the development of the story. Sending messages demonstrates the advantages of a voluntary medium, and by expressing awareness and determination in the first person, it dispels the concerns and doubts of stakeholders and further increases their trust.
In addition, as one of the creative ideas, a logic tree called "PBR Reverse Tree Expansion" was included. This expansion diagram makes it easier to understand how to respond to the Tokyo Stock Exchange's request for "PBR improvement: management that takes capital costs and stock prices into consideration." Logic trees not only contribute to the reader's understanding, but also serve as an opportunity for issuers to understand problems and find solutions, so we hope you will try creating other items as well.
I would also like to point out some disappointing points. In the 2023 edition, two pages were devoted to materiality, with the identified materiality described along with the process, and the next step was indicated as "organizing sub-materiality, setting goal images, and KPIs." However, the progress on these issues is not visible, and the term "materiality" only appears in the President's Message (p. 36), and is not mentioned in the CxO's Message. Since materiality is "resolved at the Management Meeting and then reported and approved by the Board of Directors," the CxO and other executive officers have a responsibility to take the initiative in mentioning the progress of materiality. During this time, we have confirmed that materiality "plays an important role in clarifying the major challenges and opportunities facing the company and improving the quality of communication, such as clarifying sustainable growth strategies." We would like you to immediately begin the next step mentioned above and make it public in the next report. In that case, we would also like you to include the following points of view:
・Measures to promote awareness of materiality.
-Connection with business strategies, medium-term management plans, and long-term corporate value creation.
- Risks and opportunities in terms of materiality.

Integrated Report