CSR Medium-term Plan

Promoting CSR That Is in Tune with Business Activities

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

In its Medium-term Management Plan SHIFT 2019 -Fusion- 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 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) & 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 key issues.

Three Prominences

  Key Measures Medium-term
Targets
FY2018
Targets
FY2018
Results
FY2018
Self-evaluation
Environment
  • 1.
    Manage progress using integrated indices (sustainability index)
Secure a rate of return on natural capital of 90% or more Secure a rate of return on natural capital of 87% Secured a rate of return on natural capital of 92.8% ○ Target achieved. Going forward, we will further enhance the effectiveness of our activities within the Group.
  • 2.
    Expand and create markets for Environment-contributing Products
  • 1)
    Environment-contributing Product sales ratio
60% or more 55% or more 56.3% ○ Target achieved. Improvement in sales due to increase in ZEH housing and rediscovery of value in drug development support business products.
  • 2)
    Number of newly registered products
30 or more 10 or more 18 ○ Target achieved. We will further promote the raising of awareness of environmental and social contributions at the planning and development stage.
  • 3.
    Reduce environmental impact
  • 1)
    Reduce greenhouse gas emission
6% or more
(vs. FY2013)
4% or more
(vs. FY2013)
2.3%
(vs. FY2013)
× We were unable to cover M&A and the increase in production volume through reduction activities. We will consider installing megasolar facilities and other initiatives as additional reduction activities.
  • 2)
    Maintain water resources
  • Reduce water usage by 3% or more (vs. FY2016)
  • Reduce water usage by 2% or more
    (vs. FY2016)
  • Increased water usage by 3.0%
    (vs. FY2016)
× (1) Increased overseas due to M&A.
  • Reduce the total amount of river discharge water chemical oxygen demand (COD) by 3% or more (vs FY2016)
  • Reduce the total amount of river discharge water chemical oxygen demand (COD) by 2% or more (vs FY2016)
  • Increased the total amount of river discharge water chemical oxygen demand (COD) by 20.7% (vs FY2016)
× (2) The increase in production had an impact. We are promoting reductions through capital investment.*1
  • 4.
    Conserve natural environment
Secure an employee participation rate in SEKISUI Environment Week of 100% Secure an employee participation rate in SEKISUI Environment Week of 95% Secured an employee participation rate in SEKISUI Environment Week of
88.1%
× The number of participants is increasing year by year. We will further raise awareness of our environmental contributions.
CS & Quality
  • 1.
    Improve basic qualities
  • 1)
    Reduce the number of major quality issues to zero
  • 1)
    Reduce the number of major quality issues to zero
1) There was one major quality issue × Recognizing that issues were related to the design of products, strengthen the ability to uncover risks at the development stage
2) Reduce new product external failure costs*2 to zero 2) Reduce new product external failure costs*2 to zero 2) 288 million yen × Confirm through audits whether there is any ambiguity regarding the manner in which customers’ specification requirements are managed
  • 2.
    Improve attractive qualities
Introduce nine new attractive quality products − No single fiscal year target initially set*3
Human
Resources
Promote
diversity
  • 1)
    Empower women
  • Secure a ratio of women to total hires of 35%
  • Number of women in management positions: 200
  • Maintain the ratio of women to total hires at 30–39%
  • Number of women in management positions: 165
  • Secured a ratio of women to total hires of 29.7%
  • Number of women in management positions: 160
× ①To promote diversity, we will further promote the creation of a working environment in which women can work comfortably
× ②The number of female managers steadily increased due to training for female manager candidates
  • 2)
    Develop global talent employees
Number of participants in the Global Trainee Program: 20 Number of participants in the Global Trainee Program: 15 Number of participants in the Global Trainee Program: 21 ○ Target achieved. Positioned and promoted short-term overseas practical training as one of the experiences of working abroad

○···Achieved, ×···Target not achieved, −···Not applicable

Pledge to Society

  Key Measures Medium-term
Targets
FY2018
Targets
FY2018
Results
FY2018
Self-evaluation
Safety Reduce the incidence of occupational injuries Reduce the incidence of occupational injuries attributable to machinery and equipment to zero Halve the incidence of occupational injuries attributable to machinery and equipment (vs. FY2016) The incidence of occupational injuries attributable to machinery and equipment was reduced by half at 10 cases (vs. the 20 cases in FY2016) ○ Continued progress with efforts to improve equipment while achieving targets through equipment intrinsic safety measures
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 Reduced the incidence of major violations of laws and ordinances that impact society to zero ○ Target achieved; moving forward, work to minimize the risk of any incidence, reoccurrence, and increase in compliance violations
  • 2.
    Expand the area and scope of CSR procurement
Undertake CSR procurement in five global areas Undertake CSR
procurement in the Asia area (undertaken in China in FY2017)
Undertook CSR procurement in the Asia region (excluding China) ○ Completed steps to undertake CSR procurement in the Asia region; target achieved. In FY2019 we will review implementation in Europe
Working
Environment
  • 1.
    Manage and control prolonged working hours (in excess of 2,000 hours annually)
Reduce the number of subsidiary companies where employees work more than 2,000 hours on an annual basis by 30% (vs. FY2016) Reduce the number of subsidiary companies where employees work more than 2,000 hours on an annual basis by 9% (vs. FY2016) Reduced the number of subsidiary companies where employees work more than 2,000 hours on an annual basis by 8.5% (vs. FY2016) × Paid vacation day utilization rate and number of days off increased. We will continue efforts to reduce total working hours
  • 2.
    Promote health management
Raise 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
Raise 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*4
Raised 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*4
Target achieved. Through inhouse and external health management initiatives and instilling awareness of the need

○···Achieved, ×···Target not achieved, −···Not applicable

  • *4
    Includes 13 companies subject to the Act on Promotion of Women's Participation and Advancement in the Workplace

Governance

  Key Measures Medium-term
Targets
FY2018
Targets
FY2018
Results
FY2018
Self-evaluation
Governance
  • 1.
    Put in place a structure of overseas regional headquarters
Complete area coverage Continue to establish a structure and systems for the Asia and Oceania regions Established a structure and systems for the Asia and Oceania regions ○ Expanded the legal function in the Asia and Oceania regions
  • 2.
    Increase the effectiveness of risk management (prevent risks before they occur)
Achieve effectiveness of 70% or more Achieve effectiveness of 60% Achieved effectiveness of 75% ○ Increased penetration of risk management activities across Sekisui Chemical Group as a whole

○···Achieved, ×···Target not achieved, −···Not applicable

Stakeholder Engagement

  Key Measures Medium-term
Targets
FY2018
Targets
FY2018
Results
FY2018
Self-evaluation
Stakeholder
Engagement
Promote active engagement between investors and management Ensure that investors and management engage in dialogue on a cumulative total of 200 occasions throughout the period set forth for the medium-term target Ensure that investors and management engage on 70 occasions Ensured that investors and management engage on 87 occasions ○ Achieved dialogue target; continue to engage in dialogue

○···Achieved, ×···Target not achieved, −···Not applicable