Promoting Sustainability
Vision and Material Issues (Key Sustainability Issues)
Resonac positions sustainability at the core of its management. To realize its Purpose “Change society through the power of chemistry” and the Vision set forth in its Long-term Vision, we have identified material issues (key sustainability issues) and are promoting initiatives linked to them.
Resonac’s material issues are management issues for achieving its Long-term Vision that have been examined from the perspectives of both society’s expectations and their importance to Resonac, with the Purpose as the starting point. We will work to maximize corporate value by creating an environment that enables long-term growth while contributing to the sustainability of society and the environment.
Please see the page below for details.
Sustainability Promotion Structure
The CEO supervises Resonac’s sustainability, and the CSuO is responsible for promoting it. Important matters, including policies and plans, are deliberated and decided by the Management Committee and then submitted or reported to the Board of Directors.
The Sustainability Promotion Council, which brings together chief officers (CXOs), including the CEO, and business leaders (BU heads) responsible for each business area, is held six times a year to discuss a broad range of topics. At every meeting, the council discusses initiatives in at least one business, such as analyses of climate change-related business opportunities and risks in line with TCFD scenario analysis, consideration of Resonac Pride Products and Services, and analyses of customers’ sustainability strategies.
In addition, several projects have been established under the council to address specific issues in an agile and cross-organizational manner.
Furthermore, sustainability partners have been appointed in business and CXO organizations to connect matters deliberated by the council with organizational management and embed them among employees. Through communication with the sustainability partners, we identify the current status, issues, and interests of each organization while promoting sustainability initiatives in each organization. We also provide opportunities for horizontal communication among sustainability partners, encouraging active information exchange and discussion on changes in customer requirements and responses that transcend differences among the industries they serve.
Important matters discussed by the Sustainability Promotion Council are deliberated and decided by the Management Committee as necessary and then submitted or reported to the Board of Directors. The Board of Directors provides necessary instructions and advice, as appropriate, on the validity and effectiveness of sustainability policies and plans, and supervises these activities.
Sustainability Advisor
Since sustainability spans a wide range of issues, we recognize the importance of drawing on knowledge from outside the company. With this in mind, Resonac has established a new Sustainability Advisor role, filled by outside experts. Advisors serve two-year terms, providing expert guidance and advice to our Board of Directors and business execution divisions.
In the first phase (April 2025 to March 2027), we appointed three Sustainability Advisors to help us achieve our Purpose “Change society through the power of chemistry,” and to promote our efforts to create value. Dr. Itsubo brings expertise in technology and the environment; Dr. Hasegawa has abundant insight in management and finance; and Mr. Matsubara is an investor with a focus on sustainability.
The first term Sustainability Advisors (from left: Dr. Hasegawa, Mr. Matsubara, Dr. Itsubo)
Sustainability evaluation in executive compensation
Resonac incorporates sustainability evaluation items into the short-term performance-linked component of executive compensation and links the evaluation results to compensation. We introduced performance-linked RS from fiscal 2025 to strengthen management that is conscious of stock price and support the realization of our Purpose. The performance-linked RS system is designed to deliver a certain number of restricted stock (RS) calculated by multiplying the standard points based on the position-based standard amount by a coefficient based on annual sustainability evaluations. The delivered RS will be non-transferable until resignation. A certain percentage of the calculated number (expected to be 30% initially) will be retained as points and paid in cash equivalent to the market value at the time of resignation.
* Number of RS granted per individual = Standard points (based on position) × Sustainability evaluation coefficient (85-115%)
The sustainability evaluation for FY2025 was determined based on factors such as the employee engagement score, the degree of implementation of the Purpose and Values, and the achievement status of certifications for “Resonac Pride Products and Services.” Through the management by objectives (MBO) system, the evaluation is also linked to employee evaluations.
Cultivation of a sustainability mindset among employees
We also hold Sustainability Day events, in which the CSuO visits sites in Japan and overseas, to foster a sustainability mindset among employees and make sustainability everyone’s concern. Since the program began in 2024, town hall meetings, small-group roundtables, and workshops on topics such as the environment, compliance, and community contribution have been held at 17 locations in Japan and overseas.
In 2025, we expanded opportunities for employees to consider the connections between sustainability and business activities by incorporating integrated report workshops and participatory programs on environmental and social issues. Dialogue among participants deepens understanding and also promotes interaction across departments and job functions.
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