Promoting Sustainability

Sustainability Vision 2030 and Material Issues

Resonac positions sustainability as its basic management policy. We have established the "Sustainability Vision 2030" to realize "Change society through the power of chemistry" and "Co-creative Chemical Company," and we are promoting initiatives linked to material issues for sustainability.
Resonac’s material issues consist of management issues that contribute to realizing its long-term vision in terms of both society’s expectations and degree of importance to the Company, with the Purpose as a starting point. We will work to maximize corporate value by developing an environment that fuels long-term growth while contributing to the sustainability of society and the environment.
Please see below for details.

Sustainability Vision 2030

Achieve corporate growth through the resolution of social issues

Develop into a company with like-minded partners across the world that realizes its own continuous growth and corporate value improvement, by solving social issues and offering value to society through its technologies and businesses

A company with like-minded partners throughout the world

Become a “Co-creative Chemical Company” that is the first choice of, and can choose, partners in creating a sustainable and better society, including future generations of customers, employees, investors, and stakeholders

Sustainability Management

The CEO supervises Resonac’s sustainability and the CSuO is responsible for the promotion of sustainability. The Management Committee deliberates and decides on important items such as policies and plans and then consults with and reports to the Board of Directors.
The Sustainability Promotion Council, which brings together Group CXOs including the CEO and business unit heads (BU heads), is held every other month to discuss a broad range of sustainability-related topics. Each meeting includes a discussion of initiatives from at least one business unit—for example, analysis of climate-related business opportunities and risks based on TCFD scenario analysis, "Resonac Pride Products and Services", and reviews of customers’ sustainability strategies.

In addition, to address specific issues with agility and on a cross-organizational basis, several projects have been established, which report to the council. In order to link the discussions in the council to organizational operations and share them with employees, we have appointed sustainability partners (promotion managers) in the business units and CXO organizations, and we are promoting sustainability initiatives in each department while understanding the current status, issues, and interests of each unit. Moreover, by creating opportunities for horizontal communication among Sustainability Partners, we encourage active exchange of information on changes in customer requirements and other issues that transcend differences among the industries we serve.

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.

Sustainability evaluation in executive compensation

We introduced performance-linked RS from fiscal 2025 to strengthen management that is conscious of stock price and support the realization of Sustainability Vision 2030. 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 coefficient for FY2025 will be determined based on factors such as the employee engagement score, the degree of practice of our Purpose and Values, and the achievement status of certifications for “Resonac Pride Products and Services.”

Cultivation of a sustainability mindset among employees

We implement various programs to support employees in gaining the power and perspective to achieve our purpose of “change society through the power of chemistry.” We set the necessary information and communication for each level and organization, and are measuring the effectiveness of whether it leads to behavioral change. Starting in 2024, we launched the “Matsuko Channel,” in which the CSuO will broadcast monthly videos for all employees detailing the contents of the Sustainability Promotion Council and other events. Our aim is to make the current sustainability initiatives more familiar to employees by speaking directly to them in both Japanese and English. In addition, we hold “social issue meetings” and “workshops to understand Resonac through the integrated report” across departments, so that we can explore seeds of business and points of contact with society.
In addition, we are holding Sustainability Day, where the CSuO visits sites in Japan and overseas with the aim of fostering a sustainability mindset among employees and making sustainability everyone’s concern. To date, we have held nine such events both in Japan and overseas, including town-hall meetings, small roundtable discussions, and workshops on the environment, compliance and regional contribution. At the Sustainability Day for research and development employees held in February 2025, we conducted a workshop on the theme of “What is environmentally-friendly R&D?” Based on the ideas of the participants, such as processes that reduce electricity consumption by simplified and low-temperature manufacturing processes, and reducing environmental impact throughout the product lifecycle including R&D stage, we have kicked off efforts aimed at changing society through the power of chemistry.。

Matsuko's Channel