Nippon Shokubai Sustainability

Sustainability Concept

We conduct business activities with the determination to contribute to society, under the Group Mission " - Providing affluence and comfort to people and society, with our unique technology." Based on the belief that promoting sustainability activities is implementing Group Mission, we take a comprehensive view of our corporate behavior that encompasses the economy, society and the environment. We therefore prioritize corporate governance, corporate ethics, Responsible Care, risk management, human rights and labor, social contribution, and information disclosure. In implementing actions to increase our corporate value, we emphasize dialogue with our customers, business partners, employees, the communities we serve, public administrators, shareholders and investors and all other stakeholders.

Management System for promoting sustainability

TechnoAmenity Promotion Committee chaired by the president has been organized to implement sustainability initiatives.

Roles of TechnoAmenity Promotion Committee

Determine group’s policies and strategies relating to promote sustainability initiatives.
Instruct each department to create plans and measures and evaluate their performance and progress.
Consider other significant matters relating to promote sustainability initiatives.
Disseminate information about the initiatives to the stakeholders.

Operation for TechnoAmenity Promotion Committee

In principle, the committee meets at least twice a year.
When it is necessary to consider and adopt measures for important sustainability issues across departments, the committee will establish a subcommittee to assume responsibility for them.

Sustainability Medium-term Target and Initiatives

To promote company-wide sustainability activities, we have formulated sustainability medium-term targets and initiatives for fiscal 2017–2020. We implement PDCA for each fiscal year and release achievements and progress for the year.

Stakeholder	Subject		Medium-term Targets & Initiatives	Achievements (Fiscal 2019 Results)
Company-wide	Corporate Ethics		To continue to emphasize corporate ethics while strengthening our regulatory compliance structure and enhancing various training programs	Implemented corporate ethics training for general employees in managerial positions of our nine Group companies in Japan, in addition to managerial employees of the Company in Nippon shokubai Group, and training on various individual laws and regulations (prevention of disguised contract labor, Subcontractors Act).
	Risk Management		To endeavor to expand our risk management while regularly analyzing risk, including undertaking a review of our current Business Continuity Plan	Conducted periodic risk surveys and addressed individual risks as necessary. Conducted drills for information management and responding to the media in the event of an emergency.
	Corporate Governance		To further strengthen and enhance corporate governance, including improving the functioning of the Board Meeting, in order to enhance corporate value and achieve sustainable growth	Evaluated the effectiveness of board meetings and enhanced provision of information to external board members based on the evaluation results. Verified the appropriateness of cross shareholdings at board meetings. And the exercise of voting rights was decided based on specific quantitative standards.
	Information Security		To revise regulations covering information management in order to focus on the utilization of electronic data To establish an information security system to implement the above	As measures to prevent incidents, we conducted training on information security regulations for new employees, training on responding to suspicious emails, and studying information protection measures upon retirement of employees.
Environment	Environmental Protection	Preventing Global Warming	1) To reduce energy consumption by an amount equivalent to 8,000 kL of crude oil (over 4 years) 2) To reduce energy intensity by 5% from fiscal 2015 levels by fiscal 2020 3) To reduce CO₂ emissions intensity (by energy origin) by 5% from fiscal 2015 levels by fiscal 2020 4) To reduce fuel consumption intensity for road transport by 5% from fiscal 2015 levels by fiscal 2020; to promote modal shift	1) Reduced energy consumption by 3,646 kl. 2) Reduced energy intensity by 6.1% from fiscal 2015 levels. 3) Reduced CO₂ intensity by 12.2% from fiscal 2015 levels. 4) Reduced fuel consumption intensity by 2.3% from fiscal 2015 levels. Continued to promote modal shift.
		Waste	To maintain zero emissions (Quantity of final off-site landfill) ≤ (Total amount of waste generated × 0.1%)	Continued to implement zero emissions policy.
		PRTR	To reduce emissions of substances subject to the PRTR Law by 25% from fiscal 2015 levels by fiscal 2020	Reduced emissions of substances subject to the PRTR Law by 27.2% from fiscal 2015 levels.
Customers	Quality		Promotion of company-wide quality initiatives 1) To improve customer satisfaction 2) To attain more trust from customers 3) To achieve "Zero serious quality complaints"	Promoted company-wide quality activities through the priority initiatives of the 10th Medium-term RC Basic Plan (Quality), implemented 1) to improve customer satisfaction and 2) to attain more trust from customers, but 3) received one serious quality complaint.
Customers	Chemical Safety		To achieve zero problems related to chemical safety (legal or social problems)	Registered zero legal or social problems related to chemical safety.
Suppliers	Logistics Safety		To achieve zero accidents during logistics transportation	Registered zero accidents during product transportation
Suppliers	Procurement		To continue implementing green procurement To promote sustainable procurement	Conducted surveys on green procurement using a tool (chemSHERPA). Formulated the Procurement Fundamental Policy to promote sustainable procurement.
Shareholders & Investors	Information Disclosure		To continue to disclose information in accordance with our corporate governance code and to aim for more relevant responses in order to maintain high-quality constructive dialogue with shareholders and investors	Continuously disclosed financial results and other materials. Conducted IR meetings for analysts and institutional investors in May and November.
Community	Social Contribution		To enhance the social contribution initiatives of the Nippon Shokubai Group as a whole To formulate and implement the Third-term Plan (fiscal 2018-fiscal 2022) addressing our forest development initiatives	Continued to implement forest development initiatives in Japan, China and Indonesia according to the Third-term Five-year Plan.
	Process Safety and Disaster Prevention		To achieve zero severe process safety accidents	Registered zero severe process safety accidents.
	RC Communication		To promote dialogue on Responsible Care initiatives with local residents and implement appropriate information disclosure	Published the RC Report.
Employees	Human Resources		To identify and train leaders who can lead the organization; to promote Diversity & Inclusion	Deployed training for line managers, which had been implemented up to fiscal 2018 at the Kawasaki Plant, to the Suita Research Center and the Himeji Plant to strengthen the development of leadership personnel. Also, launched training for employees being promoted to managerial positions, and continued training for manufacturing managers. Launched a project with five female managers gathered from around the Company to discuss the vision that the Company should have regarding women’s participation, current issues, and solutions. The project submitted draft measures to be implemented in fiscal 2020 and beyond.
	Occupational Safety		To achieve zero injuries with or without loss of workdays, including contractors	Target not reached: Registered three injuries with loss of workdays and 11 injuries without loss of workdays.
	Occupational Health		To provide all workers with a supportive and ideal work environment; to promote a healthy work-life balance	Continued the planned reduction of overtime hours through regular meetings of the Labor-Management Committee. Organized the Working Reform Group under the Work Innovation Committee and continuously reviewed various policies to support employees' diverse work styles.
Government	Collaboration		To continue to cooperate with the administration through industrial associations and other avenues	Participated in a plan to contribute to the emergence of a low-carbon society and reported the results.

Participation in the United Nations Global Compact

In October 2020, our company participated in the UN Global Compact (UNGC*).

Our company supports the UNGC‘s 10 principles which consist of the four fields: “human rights,” “labour,” “environment,” and “anti-corruption” and we are promoting initiatives in each of these four areas.

We will challenge to resolve the social issues through business and continue working for the contribution to the realization of a sustainable society.

* UNGC is a global initiative that encourages companies and organizations to act as good members of society and achieve sustainable growth by demonstrating responsible and creative leadership.

UN GLOBAL COMPACT

■Ten Principles of UNGC

Human Rights: Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and; Principle 2: make sure that they are not complicit in human rights abuses.
Labour: Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;; Principle 4: the elimination of all forms of forced and compulsory labour;; Principle 5: the effective abolition of child labour; and; Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment: Principle 7: Businesses should support a precautionary approach to environmental challenges;; Principle 8: undertake initiatives to promote greater environmental responsibility; and; Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption: Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

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