Environmental Management System
Mission
Although we use fossil raw materials and fuels in our product manufacturing processes and emit greenhouse gases (GHG), we have many products and services that contribute to energy conservation, resource recycling and biodiversity. To this end, we regard addressing the environment as a crucial management issue in terms of both opportunity and risk, and under the supervision of the Board of Directors, we will make medium- to long-term efforts to enhance our corporate value.
Resonac Group’s Environmental Policy
In June 2024, we established a new Environmental Policy as the Resonac Group, which outlines the key environmental issues that warrant addressing and action guidelines for solving these issues.
The Resonac Group (Resonac Holdings Corporation and its consolidated subsidiaries) aims to contribute to the sustainable development of global society based on its purpose "Change society through the power of chemistry.”
The Resonac Group is committed to addressing environmental issues in all countries and regions where we do business by establishing "important environmental issues to be addressed by the Resonac Group" and "action guidelines for solving such issues," with the aim of realizing a sustainable society.
Clarifying these ideas and stances, and as a promise to all of our stakeholders, we have formulated our environmental policy (hereinafter referred to as the "Policy").
Scope of Application of the Environmental Policy
The Policy shall apply to the Resonac Group. We also expect all business partners, including suppliers of the Resonac Group, to understand and support the details of the Policy, and will continue to encourage them to respect the Policy.
Important Environmental Issues to be Addressed by the Resonac Group
1. Responding to Climate Change
The Resonac Group, with the aim of realizing a carbon-neutral society, will strive to reduce greenhouse gas emissions across the value chain by implementing measures for the following: “Thorough rationalization, higher efficiency, energy conservation, and fuel conversion;" "product manufacturing using in-house hydroelectric power generation and renewable energy;" "development and manufacturing of energy-efficient and environment-friendly products,” and "development of innovative CO2 separation and capture technology and use of captured CO2 as a raw material for chemical products.”
2. Realization of a circular economy
In order to continue to use the earth's limited resources and energy for a long time, the Resonac Group believes that it is necessary to use resources in a cyclical manner and improve productivity per resource. For this reason, we are committed to "developing and implementing sustainable plastic chemical recycling technology,” "recycling waste and using resources efficiently," "manufacturing with consideration for the entire product life cycle from product design and development to disposal," and "co-creation with various stakeholders in the value chain.”
3. Responding to Environmental Risks
The Resonac Group will contribute to the realization of a sustainable society by working on the “appropriate assessment of the impact of our business on the environment" and "environmental impact reduction and global environmental preservation activities based on the results of such assessment.”
4. Preservation of Biodiversity
Recognizing the importance of biodiversity preservation to the natural resilience of ecosystems, the Resonac Group is committed to "assessing and reducing the impact of our business activities on ecosystems," "restoring biodiversity under the threat of being lost," and "making sustainable use of resource capital such as forests, soil, water, air, and biological resources,” thereby, it will contribute to the realization of Nature Positive.
Action Guidelines for Solving Issues
Governance
Under the oversight and supervision of the Board of Directors, the Resonac Group will improve its efforts and environmental performance in accordance with the Policy. The person in charge of each business division and head office functional department will promote environmental measures, and important matters will be discussed and decided by the Board of Directors. We will also reflect the Policy in relevant policy procedures and operations to ensure that it is appropriately integrated into our business activities.
Compliance with Legal and Other Requirements
As a manufacturing company, the Resonac Group will not only comply with legal requirements, but will also identify social trends and address environmental issues in an autonomous manner. In addition, we will conduct due diligence to identify environmental risks and take appropriate actions based on the results of such due diligence.
Co-creation, Dialogue and Information Disclosure with Stakeholders
In order to solve environmental issues, the Resonac Group is committed to co-creation with various stakeholders and the realization of a better society through the power of chemistry. In addition, we will attach importance to dialogue with our various stakeholders, including customers, investors, government agencies, and suppliers, and regularly disclose information in accordance with international disclosure standards such as the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD recommendations).
Raising Environmental Awareness
By providing appropriate education and training within the company, the Resonac Group will raise the environmental awareness of all officers and employees (including temporary and contract employees, hereinafter referred to as "Officers and Employees") so that each and every one of the Officers and Employees will be committed to solving environmental issues and realizing a better society through the power of chemistry.
Review of the Environmental Policy
The Policy will be periodically reviewed in response to social trends and the business environment through dialogue with stakeholders, followed by discussion and resolution of the resulting revision by the Board of Directors. Amendments other than those pertaining to the Policy’s basic items may be made by the Chief Sustainability Officer (CSuO) based on a proposal of the department in charge of sustainability.
Overview of Resonac’s environmental initiatives
The four pillars of our environmental initiatives are “Measures to Combat Climate Change,” “Efforts for Preservation of Biodiversity,” “Towards Circular Economy” and “Response to Environmental Risks.” As each of these initiatives relate, “Efforts for Preservation of Biodiversity” and “Towards Circular Economy” must be addressed simultaneously in order to implement “Measures to Combat Climate Change,” which is an urgent matter. We will view the entire environment as a social issue more than ever, and as such, we will take on the challenge of changing society through the power of chemistry. We will strengthen our efforts to manage risks and seize opportunities through “Response to Environmental Risks” spanning across all of our environmental initiatives.
Promotion system
The CEO supervises the risks and business opportunities, targets, and specific initiatives associated with the environment including climate change, while the CSuO takes responsibility for promoting actions. These issues are deliberated at the Sustainability Promotion Council and the Management Committee. The progress of each initiative is regularly monitored, and remedial measures are discussed when needed.
The Board of Directors receives periodic reports of what the Sustainability Promotion Council and the Management Committee discussed, and on which points they made decisions and deliberates and supervises them from the perspective of maximizing corporate value.
At each site, the head of the site and the environment & safety manager lead environmental preservation activities based on their environment and safety action plans.
Implementation of environmental management systems
The Resonac Group is managing and reducing environmental risks posed to its sites in an appropriate manner by establishing an environmental management system at each site, for which the Group is promoting the acquisition of certification and fostering improvements. We have these management systems regularly assessed by external certification bodies to keep them up to date. Moreover, the systems are implemented at each site by following a PDCA cycle to further promote the related activities.
- * The Resonac Group obtains certification for the environmental management system of each site.
List of sites with certified environmental management systems
Issues and targets
Issues to be addressed
Short to medium term (2024-2026)
- Improved data preparation and accuracy through consolidation and portfolio changes
- Calculation of Scope 3 emissions/exploration of reduction measures on a global scale
- Re-verification of target levels (evidence-based target level verification)
Short to long term (2024-2030)
- Development of technologies for carbon neutrality and increase in reduction measures
- Development of technologies for carbon neutrality and increase in reduction measures
- Shift to businesses and corporate value that contribute to a circular economy
- Consistent response to and disclosure of environmental risks
Targets and results of non-financial KPI
Resonac regards sustainability as the basis for its companywide strategies and has set three material issues for sustainability. Accordingly, for environment, we will work on the non-financial KPIs and measures that were set to “Gain credibility through responsible business management” toward the achievement of our long-term vision.
| KPIs on material issues | 2025 targets | Results in 2023 |
|---|---|---|
| Reduction of greenhouse gas emissions/td> | 30% reduction (Scope 1 + Scope 2) from fiscal 2013 (consolidated) (2030 target) | 8.8% reduction from the level of 2013 (consolidated) |
| Reduction of waste sent to landfills | Reduction of waste sent to landfills compared to 2024 (consolidated) | 0.1% of industrial waste generated (consolidated in Japan) |
| Number of environmental accidents | Zero environmental accidents (consolidated) | 1 (consolidated) |
Our goals and measures for FY2024 are as follows.
| KGI(Result of KPI) | Policy(KSF*1) | Policy(SKSF*2) | |
|---|---|---|---|
| Final goals/2030 goals(midium-term goals) | 2024 goals | ||
| Environmental abnormalities Zero | Environmental abnormalities Zero | Environmental risk management | Determination of risks and opportunities and implementation of initiatives (environmental activity priority determination structure) |
| Renewal of aging facilities and maintenance and expansion of monitoring instruments (determination and operation of investment plans) | |||
| Identification of compliance obligations and compliance assessments | Statutory reports (Energy Saving Act, Global Warming Countermeasures Act, Fluorocarbon Emission Control Act, etc.) | ||
| Environment-related legal violations Zero |
Environment-related legal violations Zero |
Awareness of environmental conservation | Legal qualification education (Determining and operation an training plan） |
| GHG emission volume(Scope1&2) Comparison with fiscal 2013 30% reduction |
― | Maintaining understanding of GHG emission volumes in BU units and establishing and implementing a roadmap with consideration for business strategy (led by the Sustainability Department) | Determination of GHG goals and activity plans, as well as progress management |
| Industrial waste landfill disposal rates Domestic: 0.5% Overseas: 5%(or less) |
Domestic: 0.5%(or less) Overseas: 20%(or less) Waste generated per unit: 1% reduction compared to 2023 |
Accurate understanding of waste disposal volume and promotion of recycling | Determination of landfill disposal rate goals and activity plans, as well as progress management |
| Effective utilization of water (handling of water risks) |
Water withdrawal (fresh surface water) per unit: 1% reduction compared to 2023 | Understanding of water volume and risks and promotion of effective utilization | Clarification and standardization of management item definitions |
| Understanding of water usage data | |||
| Reduction of chemical substance emissions (Emission management through appropriate management target substances and indicators) |
― | atmospheric emissions | Understanding of handling volume, emission volume, and calculation methods for chemical substances |
| Determination of management target substances | |||
- *1 KSF=Key Success Factor
- *2 SKSF=Sub Key Success Factor
Environmental education
We have been planning and implementing a range of environmental education programs for all Group companies in Japan. We provide such training with a focus on promoting communication through group discussion while checking participants’ level of understanding about the content.
Environmental training held by the head office in 2023
| Date | Name | Target | No. of participants |
|---|---|---|---|
| Nov. 2023 | Follow-up ISO 14001 Training for Internal Auditors | Willing participants from Group sites | 3 |
| Mar. and Sep. 2023 | Explanatory Training on ISO 14001 Standard (Online format) | Willing participants from Group sites | 56 |
| May. and Dec. 2023 | Workshop on Environmental Laws and Regulations | Willing participants from Group sites | 180 |
Communication about environmental management
We inform people living around our sites of the details of our environmental management through on-site tours, opinion exchange meetings and the sites’ CSR reports and regularly conduct dialogue meetings with them. We also invite them to share their opinions and comments via the Resonac Group’s hotline.