Key CSR Issues

Sekisui Chemical Group Has Defined the Key Issues in Becoming Involved with CSR Activities

Identification of important issuesDefining Key CSR Issues (Materiality)

We undertook a review of our CSR initiatives from the viewpoints of the environment, society, and governance (ESG) under the Medium-term Management Plan "SHIFT2019 -Fusion-," which started in fiscal 2017, and defined the key issues (materiality).

Definition Process for Key CSR Issues

Key CSR issues were defined for the CSR Medium-term Plan based on the following processes.

Step 1. Discussing issues from the global guidelines, etc.

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(1) Identify candidate issues from the UN global compact (GC) and ISO26000
While adhering to the 10 principles in the GC, we examined the involvement status within the Group for "relevant activities and aspirations" concerning each of the seven main core issues in ISO26000, and identified the points where involvement was insufficient.

(2) We identified candidate issues by considering the boundaries both inside and outside the Group while considering the relationship between Sekisui Chemical Group and business regarding the economics, environmental, and social items described in the GRI standard.

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(3) We analyzed the social issues described in SDGs, and selected the issues that provide business opportunities for Sekisui Chemical Group. In contributing to these solutions, we identified the necessary involvements.

Step 2. Identifying issues from ESG/CSR surveys and other companies' trends

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(1) Identifying candidate issues from ESG/CSR surveys
We analyzed the issues based on the details of the replies and evaluation results to each ESG and CSR survey, and identified candidate key CSR issues where future involvement can be considered important.

(2) Analysis of other companies' ESG/CSR involvement and information disclosure trends We examined involvement by other advanced ESG/CSR companies and trends in their disclosure using ESG/CSR reports, etc., and identified issues where improvements to Sekisui Chemical Group's future involvement and information disclosure are to be desired.

Step 3. Analysis of stakeholder opinions and expectations

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(1) Sorting the major stakeholder opinions
We collected and sorted the main opinions regarding ESG/CSR from the results of talking to various stakeholders such as customers, shareholders, investors, employees, trading partners, and local communities, etc.

(2) Analysis of major expectations by stakeholder We took in the main opinions from the various stakeholders described in (1) above, and analyzed the main stakeholder expectations from their relationship to Sekisui Chemical Group business and ESG/CSR involvement.

Step 4. Identifying key CSR issues / Establishing the CSR Medium-term Plan

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(1) Sorting key CSR candidate issues
We added the CSR issues in which we have been strategically involved from before to candidate CSR issues identified in steps 1 to 3 above, and sorted the future key CSR candidate issues.

(2) Evaluating the importance of key CSR candidate issues
We comprehensively evaluated the key CSR candidate issues sorted in (1) along 2 axes: "A. Important for stakeholders" and "B. Important for managing Sekisui Chemical Group," and identified the key CSR issues.
Further, we ranked the key CSR issues that had been identified by priority. "A. Important for stakeholders" was evaluated from the viewpoints of "stakeholder expectations,""global trends," and "positive and negative impact on the planet and society," and "B. Important for managing Sekisui Chemical Group" was identified from the viewpoints of "Conformance to management policy and management strategy," "extent of compliance with CSR issue," "risk and reputation," and "priority considered on the time axis."

(3) Establishing the CSR Medium-term Plan
The objectives (KPIs, etc.) for the designated key CSR issues were discussed by the main departments after deliberation by the CSR committee, and are reflected in the (draft) "CSR Medium-term Plan." Finally, they were approved by the CSR Committee and the "CSR Medium-term Plan" was verified.
Reflecting the key CSR issues surely and certainly in the "CSR Medium-term Plan" enables them to be managed suitably through the PDCA cycle.
As a rule, the key CSR issues will be reviewed and mid-term CSR target will be set every three years when the medium-term management plan are created. On the other hand, the necessity of revisions will be discussed annually in light of social expectations and demands, and the business situation, etc.

Classifying key CSR issues

Issues where the importance for stakeholders is extremely high, and is also extremely high for management of Sekisui Chemical Group

    • Permeation of CSR throughout the entire Group
    • Sales expansion of Environment-contributing Products
      Expansion of development and spread of Environment-contributing Products
    • Reduction of environmental impact
      Reinforcement of climate change countermeasures
    • Conserving the natural environment
      Promotion of involvement in preserving biodiversity
    • Polishing up basic quality
      Eliminating important quality problems
    • Polishing up attractive qualities
      Expanding products linked to solving social issues
    • Global HR creation
    • Promotion of diversity
    • Reduction of work accidents
    • Promotion of pollution prevention and illegalities
    • Elimination of important compliance problems
    • Thorough prevention in advance
      Expansion of BCP policies
    • Reinforcement of crisis management systems
    • Expansion of dialogue with stakeholders
    • Reinforcement of global governance

Issues where the importance for stakeholders is high, and is also high for management of Sekisui Chemical Group

    • Reinforcement of information security
    • Reduction of long work hours
    • Maintenance of water resources
    • Promotion of the sustainable use of resources
    • Manage risks related to global labor
    • Implementation of human rights due diligence
    • Disclosure of the important issues identification process and identification results
    • Promotion of social contribution activities