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CSR Medium-term Management Plan

The Sekisui Chemical Group is promoting a Medium-term Plan that is Grounded in the Key Words: Group, Global, and Communication.

Overview of the CSR Medium-term Plan (Fiscal 2014 to Fiscal 2016)

Guided by its medium-term plan that ran through to the end of fiscal 2016, and under the overarching slogan "Group, Global, Communication," the Sekisui Chemical Group worked diligently to strengthen CSR management.

As a result, we were able to successfully achieve certain targets over three prominence fields. This included reducing the amount of CO2 emissions, cutting back major quality issues to zero, and increasing the ratio of women to the total number of employees hired.

As far as the Group's three attitudes of sincerity are concerned, we promoted measures designed to further fortify our management foundation. Among a host of accomplishments, we reduced the incidence of compliance issues to zero and achieved our disaster-prevention system utilization rate target.

Over the period of the next CSR Medium-term Plan, we place particular emphasis on pushing forward measure that integrate both business and CSR concerns. We will again identify issues that are important to the Group and revise our CSR conceptual scheme and views.


Three Prominences
  Key Measures FY2016 Targets FY2016 Results
Environment
    • 1.
    • Expand the environment-contributing product market
  • Net sales ratio: 50% or more
  • Net sales ratio: 45.2%
  • 2.
  • Reduce environment impact
    • 1) 
    • Reduce greenhouse gas emissions
  • Maintain total volume (vs. FY2013)
  • Achieved the target with a reduction of 0.3%
    (11.3% reduction in Japan and a 7.5% increase overseas)
    • 2) 
    • Reduce waste
  • Reduce per unit of output by 12% (vs. FY2013)
  • 7.5% increase
    (9.9% increase in Japan and a 4.2% reduction overseas)
    • 3) 
    • Address water risks
  • Ascertain the status of current conditions and put forward countermeasures
  • Completed investigations and surveys by FY2015 and confirmed that countermeasures were unnecessary
  • 3.
  • Conserve the natural environment
    • 1) 
    • Secure an employee participation rate of 100%
    • 1) 
    • Employee participation rate of 70%
    • 2) 
    • Improve the JBIB Land Use Score CardTM by 10 points
    • 2) 
    • Improvement in the JBIB Land Use Score CardTM of 13.4 points
CS & Quality
    • 1.
    • Improve basic qualities
    • 1) 
    • Reduce the number of major quality issues to zero
    • 1) 
    • Reduced the number of major quality issues to zero
    • 2) 
    • Halve external failure costs (vs. FY2013)
    • 2) 
    • Reduced external failure costs by 12.4%
    • 2.
    • Improve attractive qualities
  • Increase customer satisfaction
  • Increased customer confidence in CS & Quality by 4 points vs. previous survey
Human Resources
    • 1.
    • Strengthen Group human resources
  • Increase internal job postings by 30/year
  • Increased internal job postings by 44/year
    • 2.
    • Train global talent employees
  • Secure 400 number of global talent employees
  • Secure 341 global talent employees
    • 3.
    • Promote diversity
    • 1) 
    • Secure a 30% ratio of women to total new hires
    • 2) 
    • Secure a 20% ratio of international hires
    • 1) 
    • Secured a 31.3% ratio of women to total new hires
    • 2) 
    • Secured a 19.5% ratio of international hires
Three Attitudes of Sincerity
  Key Measures FY2016 Targets FY2016 Results
Compliance
    • 1. 
    • Prevent corruption and fraud
  • Ensure zero occurrences
  • Ensured zero occurrences
    • 2. 
    • Prevent major compliance issues
  • Ensure zero occurrences
  • Ensured zero occurrences
Risk Management
    • 1. 
    • Thoroughly prevent risks before they occur
  • Improve the quality of risk management activities
  • Reduced risk score by 15%
    • 2. 
    • Strengthen risk management systems (Japan)
  • Secure a disaster-prevention system utilization rate of 90%
  • Secured a disaster-prevention system utilization rate of 92%
    • 3. 
    • Strengthen risk management systems (overseas)
  • Ensure site-specific risk management manuals developed at 100% of sites
  • Ensured site-specific risk management manuals developed at 92% of sites
Communication
    • 1. 
    • Undertake dialogue with stakeholders
  • Maintain selection to key SRI indices
  • Maintained selection to key SRI indices
    • 2. 
    • Address human rights and supply chain initiatives (child labor, discrimination)
  • Promote CSR procurement globally
  • Implemented with major suppliers in Japan
    • 3. 
    • Promote social contribution activities
  • Increase employee participation (vs. FY2013)
  • Increased the TABLE FOR TWO participation rate by 21.0%

New CSR Medium-term Plan (Fiscal 2017 to Fiscal 2019) Targets

In its new Medium-term Management Plan SHIFT 2019 -Fusion- the Sekisui Chemical Group places considerable emphasis on balancing the needs to secure both social and corporate value. The main thrust throughout the period of the Plan is therefore to engage in CSR management that is in tune with business activities.

In addition to creating social value, the Group is conscious of the need to identify what is required to fulfill its corporate social responsibility while promoting long-term growth. With this in mind, we have positioned the "three prominences" of the environment, customer service(CS) and quality, and human resources, our pledge to society encompassing safety, compliance and respect for human rights, and the workplace environment, as well as governance and stakeholder engagement as important issues.


Three Prominences
  Key Measures FY2017 Targets Medium-term Targets
Environment
    • 1. 
    • Manage progress using integrated indices (sustainability index)
  • Secure a rate of return on natural capital of 85%
  • Secure a rate of return on natural capital of 90% or more
    • 2. 
    • Expand and create markets for environment-contributing products
    • 1) 
    • Environment-contributing product sales ratio
  • 50%
  • 60% or more
    • 2) 
    • Number of newly registered products
  • 10
  • 30 or more
    • 3. 
    • Reduce environmental impact
    • 1) 
    • Reduce greenhouse gas emissions
  • 3% (vs. FY2013)
  • 6% or more (vs. FY2013)
    • 2) 
    • Maintain water resources
    • Reduce water usage by 1% (vs. FY2016)
    • Reduce the total amount of river discharge water chemical oxygen demand (COD) by 1% (vs FY2016)
    • Reduce water usage by 3% or more (vs. FY2016)
    • Reduce the total amount of river discharge water chemical oxygen demand (COD) by 3% or more (vs FY2016)
    • 4. 
    • Conserve the natural environment
  • Secure an employee participation rate in Sekisui Environment Week of 85%
  • Secure an employee participation rate in Sekisui Environment Week of 100%
CS & Quality
    • 1. 
    • Improve basic qualities
    • 1) 
    • Reduce the number of major quality issues to zero
    • 2) 
    • Clarify the definition of new product external failure cost
    • 1) 
    • Reduce the number of major quality issues to zero
    • 2) 
    • Reduce new product external failure costs to zero
    • 2). 
    • Improve attractive qualities
  • Introduce three new attractive quality products
  • Introduce nine new attractive quality products
Human Resources
  • Promote diversity
    • 1) 
    • Empower women
    • Maintain a ratio of 30-39% of women to total hires
    • Raise the number of women in management positions to 145
    • Raise the ratio of 35% of women to total hires
    • Raise the number of women in management positions to 200
    • 2) 
    • Develop global talent employees
  • Raise the number of participants in the Global Trainee Program to 10
  • Raise the number of participants in the Global Trainee Program to 20
Pledge to Society
  Key Measures FY2017 Targets Medium-term Targets
Safety
  • Reduce the incidence of occupational injuries
  • Halve the incidence of occupational injuries attributable to machinery and equipment (vs. FY2016)
  • Reduce the incidence of occupational injuries attributable to machinery and equipment to zero
Compliance and Respect for Human Rights
    • 1. 
    • Prevent major violations of laws and ordinances that impact society
  • Reduce the incidence of major violations of laws and ordinances that impact society to zero
  • Reduce the incidence of major violations of laws and ordinances that impact society to zero
    • 2. 
    • Expand the area and scope of CSR procurement
  • Undertake CSR procurement in the China area
  • Undertake CSR procurement in five global areas
Working Environment
    • 1. 
    • Manage and control prolonged working hours (in excess of 2,000 hours annually)
  • Reduce the number of Group companies where employees work more than 2,000 hours on an annual basis by 20% (vs. FY2016)
  • Reduce the number of Group companies where employees work more than 2,000 hours on an annual basis to zero
    • 2. 
    • Promote health management
  • Lift the number of Group companies certified as an Excellent Enterprise of Health and Productivity Management . White 500 by Japan’s Ministry of Economy, Trade and Industry to four
  • Lift the number of Group companies certified as an Excellent Enterprise of Health and Productivity Management . White 500 by Japan’s Ministry of Economy, Trade and Industry to 21
Governance
Key Measures FY2017 Targets Medium-term Targets
    • 1. 
    • Put in place a structure of overseas regional management companies
  • Establish a structure and systems for the Asia and Oceania regions
  • Complete area coverage
    • 2. 
    • Increase the eectiveness of risk management(prevent risks before they occur)
  • Achieve effectiveness of 60%
  • Achieve effectiveness of 70% or more
Stakeholder Engagement
Key Measures FY2017 Targets Medium-term Targets
  • Promote active engagement between investors and management
  • Ensure that investors and management engage on 60 occasions
  • Ensure that investors and management engage on 200 occasions