Integrated Index
Sekisui Environmental Sustainability IndexLong-term Environmental Management Vision “Sekisui Environment Sustainability Vision 2050”
The Sekisui Environmental Sustainability Index represents the impact on the environment of the activities of SEKISUI CHEMICAL Group companies (the use of natural capital) and their degree of contribution to the environment (returns to natural capital) as a single indicator. The major items for implementation in the Environmental Medium-term Plan - reducing various impacts on the environment, conserving the natural environment, and so forth - were integrated into this indicator; the Group has been running trial calculations since fiscal 2014. From fiscal 2017, the “rate of return to natural capital” has been used as an index to monitor the overall progress of Group companies’ environmental management.
The Group has been aiming to achieve 90% over the three-year period of the Environmental Medium-term Plan (2017-2019) and achieved a return rate of 104.5% in fiscal 2019, the final year of the Plan.
A new three-year Environmental Medium-term Plan began from fiscal 2020. Under the new Plan, for its SEKISUI Environmental Sustainability Index, the Group is evaluating its impact on and contribution to not only the natural environment but also the social environment while declaring its intention to contribute to the return of natural and social capital. In 2050, even as we expand our business, we will promote ESG management while maintaining a return of 100% or higher for both natural capital as well as social capital.
Calculation Results
The results of calculating the Sekisui Environmental Sustainability Index, utilizing results from fiscal 2020, are as follows. Setting the use of natural and social capital (the impact on the environment) at 100, the return of natural and social capital (contributions to the environment) was 121.9% (17.4-point increase over the 104.5% achieved in fiscal 2019).
There are two reasons why our return rates improved.
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(1)Regarding the use of natural and social capital, burdens on the environment were mitigated by reducing the volume of raw materials and electricity used in the production process.
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(2)Although the impacts of the COVID-19 pandemic caused reduction in product sales for the individual fiscal year, which partially reduced our level of contribution in terms of returns on natural and social capital, in the automotive and housing fields, our product stock continued to contribute through effects such as reduced greenhouse gas emissions in usage due to its long working life.
Going forward, we will sustain the rate of return to natural and social capital at 100% or higher while growing as a company and expanding our business. By 2050, we aim to realize the sustainable use of the earth’s natural capital and the social capital generated by human society.
In this index, boosting problem solving by means of products will contribute to improving the sustainability of the earth and society. At the same time, we believe that bringing about improvements in the returns on natural and social capital will link to improvements in the sustainability of SEKISUI CHEMICAL Group and its products.
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After compiling the raw data in (1), above, the damage calculation-based impact assessment method “LIME2,” developed for use in Japan by Professor Norihiro Itsubo of Tokyo City University, was employed for the calculations in stages (2) and (3).
Indicator | Calculation Method |
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Sekisui Environmental Sustainability Index |
Calculating the usage and return volumes of natural capital Employing LIME2 (a damage calculation-based impact assessment method developed for use in Japan by Professor Norihiro Itsubo of Tokyo City University) and covering all the criteria for conservation defined by LIME2, the impacts on each of “human health (including the effects of global warming),” “societal assets (including the effects of global warming),” “the effects on plants (reducing interference on growth),” and “the effects on life (restricting the extinction of living species)” were evaluated and then made into a single indicator
The amount of return to natural capital was calculated as the reduction in the risk of harm to natural capital because of the whole Group’s various initiatives that contribute to the environment, relative to if these initiatives had not been implemented.
Scope of Calculation / Listing by category of calculation: Trial calculations were conducted using the following assumed conditions:
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