Japan’s top oil refiner Eneos Holdings aims to add more female directors — and external board members — as it seeks to improve diversity and respond to a series of sexual harassment cases.
The producer has nominated four women and seven outside directors to be elected by shareholders to a smaller 10-seat board at an annual meeting next month. Boardrooms of Japan’s 10 biggest companies have an average of 21% female representation, according to data compiled by Bloomberg.
"There will be no future for the company without diversity,” Tomohide Miyata, who was appointed president in April, said in an interview Tuesday. "It’s incredibly worrying to have a monoculture structure.”
A push to improve governance follows the exit of three executives over harassment issues. Ex-President Takeshi Saito was dismissed last year over inappropriate conduct against an unidentified woman. In 2022, Tsutomu Sugimori resigned as chairman and chief executive officer following allegations of sexual harassment against a female employee at a hostess club.
The chairman of Eneos’ renewable energy unit was dismissed in February for sexual harassment.
The government and main stock exchange have urged companies to do more to diversify their boards to strengthen governance, and suggested that at least one-third of a board should be external.
Under the planned changes, Eneos would reduce the size of its existing 14-person board, which currently has 12 men, two women and six members from outside the company.
The company will also consider adding more non-Japanese directors as another step to adding diversity, Miyata said.