Material Issues for Sustainability②

Targets

In addition to cultivating a safety culture and eliminating accidents of every kind, we will earn the trust of stakeholders by minimizing and preparing to tackle a wide range of risks, including strategic, operational, and hazard risks, to flexibly address the changing management and business environments and continuously offer value that is unique to us

2025 targets
  • Achieve zeros in five target categories
  • Reduction of greenhouse gas emission (GHG) volumes
  • Improve the quality of communication utilizing a self-assessment questionnaire
  • Entrench a global compliance standard and code of conduct within the Group
  • Establish and operate an integrated risk management structure and enhance our risk management system
Gain credibility through
responsible business
management		 Our ambition We will conduct responsible business management from perspectives including; safety, the environment,and quality to realize a sustainable society; together with stakeholders, such as suppliers and customers.
In addition, we will reinforce and enhance our system for managing increasingly diverse and complex risks by thoroughly  implementing soft-law-based compliance going beyond legal and regulatory compliance.
2030 targets In addition to cultivating a safety culture and eliminating accidents of every kind, we will earn the trust of stakeholders by minimizing and preparing to tackle a wide range of risks, including strategic, operational, and hazard risks, to flexibly address the changing management and business environments and continuously offer value that is unique to us.
Social value Balancing of our contribution to the resolution of social issues and duty as a chemical manufacturer through responsible business management
Environmental value Reduction of environmental impact through reduction of GHG emissions, waste reduction, and improved recycling rates
Economic value Improvement of motivation, raising of  productivity, reduction of costs, and enhancement of brand value through eradication of all types of accidents and other incidents and increased efficiency of internal processes
Opportunities
  • Helping customers ensure quality by offering safe and secure products and services
  • Increased added value through realization and maintenance of advanced manufacturing processes
Risks
  • Loss of trust in society due to environmental and safety incidents
  • Weakening of the management foundation due to lack of understanding of potential risks and lack of appropriate risk-taking
  • Decline in co-creation capabilities and competitiveness due to delayed response to regional and national laws and regulations and soft law, including international norms
Constituent elements
  • Establishment of environments where all people can work with peace of mind
  • Provision of quality and safety to maximize customer value
  • Reduction of environmental impacts throughout the value chain, respect for human rights
  • Creation of a sustainable society, working together with suppliers
  • Thorough implementation of soft-law-based compliance going beyond legal and regulatory compliance
  • Reinforcement of our system for managing increasingly diverse and complex risks
Key items (KPIs)
  • Fostering of a culture emphasizing safety
  • Occupational accidents
  • Lost time incidents
  • Equipment-related accidents
  • Product-related accidents
  • Quality compliance violations
  • Product stewardship
  • Reduction of greenhouse gas emissions
  • Reduction of industrial waste sent to landfills
  • Environmental accidents
  • Respect for human rights
  • Improvement of quality of communication with suppliers
  • Inculcation of “Our Code of Conduct”
  • Thorough implementation of Group global compliance standards
  • Development and operation of comprehensive risk management systems
  • Reinforcement of the second line of defense
2025 targets
  • Establishment of a culture emphasizing safety to eliminate occupational accidents
  • Zero serious occupational accidents (consolidated)
  • Lost time incident rate: 0.1 or less (consolidated, equivalent to zero accidents resulting in lost time over a 10-year period at a site with 500 employees)
  • Zero serious equipment-related accidents (consolidated)
  • Zero product-related accidents and quality compliance violations
  • 100% execution of risk assessment of priority risk assessment substances* (consolidated in Japan)
    * Assess substances stipulated by the Company by issuing GPS safety summaries (GSSs)
  • 30% reduction (Scope 1 + Scope 2) from fiscal 2013 (consolidated) (2030 target)
  • 0.5% or less of industrial waste generated (consolidated in Japan)
  • Zero environmental accidents (consolidated)
  • Establishment of human rights due diligence implementation frameworks
  • Improved CSR questionnaire response rates, higher rate of suppliers exceeding the satisfactory threshold
  • Increase of the degree of inculcation (survey)
  • Reduction in number of serious legal breaches
  • Increase in number of reports through the whistleblowing system
  • Operation of new comprehensive risk management systems for risks associated with change in the external environment, operational risks, and hazard risks
  • Enrichment of the Group’s internal control framework through data linkage with the second/third lines of defense
  • Commencement of expansion of processes outside Japan and centralization of risk data within the Group
Results in 2022
  • Drafted improvement measures based on the results of the global safety awareness survey (launched the Safety Communication Program)
  • Harmonized safety standards (ongoing)
  • Occupational accidents: 0 (consolidated, includes partner companies)
  • Lost time incident rate: 0.54 (consolidated, excludes partner companies)）
  • Equipment-related accidents: 0 (consolidated)
  • Product-related accidents: 0 (consolidated)
  • Quality compliance violations: 1 (consolidated)
  • 100% execution of risk assessment of priority risk assessment substances* (former Showa Denko non-consolidated, 68 substances)
    * The assessment was implemented by issuing a safety summary report for substances stipulated by the Company.
  • 7.6% reduction in GHG emissions (Scope 1 + Scope 2) from 2013 (consolidated)
  • 0.2% of waste generated (consolidated in Japan)
  • Environmental accidents: 0 (consolidated)
  • Initiated an investigation into human rights risks, including within our supply chain
  • Began raising awareness of Sustainability Procurement Guidelines that reflect our human rights policy
  • Began formulating the Sustainability Procurement Guidelines for the newly integrated company
  • The new code of conduct was resolved by the Board of Directors and its English and Chinese translations were published
  • Rolled it out companywide via internal intranet
  • GCS was resolved by the Board of Directors and its English and Chinese translations were published
  • The number of reports through the whistleblowing system reached 81 as a result of raising awareness of it
  • Improved and codified comprehensive risk management system (including accountability structure for business execution departments and oversight departments and processes for reporting key risks to the Board of Directors and the Management Committee
  • Produced FY2022 Risk Assessment Report based on comparisons with external disclosure information, and gave feedback on companywide risk inventory status
  • Added “review process by CXO organizations for key risks” to risk assessments and further enhanced granularity of data

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