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Governance Aspect : Activities for Safety

In reviewing the Group's activities for safety control in the past, we will reestablish oursafety management system and raise the awareness of all the personnel for safety.

Safety control system in FY2005

The Cosmo Oil Group has been conducting safety control activities under the management of the Comprehensive Safety Action Headquarters (chairperson: the Director in charge of safety), a Group-wide safety control organization.
We set safety targets for each division of production, logistics, and sales. Furthermore, based on the above, our refineries set up their own safety targets.
Each Refinery established its own safety management system, partly adopting the framework of ISO 14001, and have implemented the system since FY2004.
The logistics division instructs the external carriers to avoid any accident by conducting safety inspections and check-ups of loading and unloading operations.
The sales division makes daily inspections at each service station (SS) and provide trainings to SS staff members to raise their awareness for safety.

Activities in FY2005

In FY2005, we have attempted to fulfill our Group wide safety goal of "Maintaining the safety level through work following the basics". Furthermore, to raise the level of safety operation and safety supply, the Cosmo Oil Group drew up the consolidated medium-term safety plan in which departmental activities were included.
In FY2005, the headquarters conducted the safety inspections at six sites, including our refineries and oil depots.

Number of accidents

  FY2004 FY2005
Accidents which resulted in lost-time injuries (Number of cases) 1 1
Accidents which did not result in lost-time injuries (Number of cases) 2 2
Frequency rate(Note) 0.47 0.51

Note: Frequency rate: Number of accidents with suspension per total working time of one million hours.

Future safety control system

Since FY2005, the first year in which the Consolidated Medium-Term Safety Plan was implemented, we had been conducting activities for safety, but the fire occurred in the Chiba Refinery in April 2006.
After the accident, we set up the Accident Investigation Committee consisting of the director in charge of safety, external experts, and the authorities concerned. The Refinery's Safety management System Restructuring Committee was set up in June 2006 in order to prevent any further accidents. The safety management system, which was established at each refinery in FY2004 to ensure and improve safety, was reviewed by the Committee and several improvements were made.
We will continuously review the safety management systems at refineries and their implementation, work out measures to improve the systems based on the reviews, and reestablish the systems according to those measures. In addition to the system improvement, we will actively proceed with raising the awareness for safety.

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