Integrated Index"Sekisui Environmental Sustainability Index"
What is the Sekisui Environmental Sustainability Index?
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 began trial calculations in fiscal 2014. Starting in fiscal 2017, we began using the “rate of return to natural capital” 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 (2017-19) and achieved a result of 104.5% in fiscal 2019, the final year of the Plan.
A new three-year Environmental Medium-term Plan starts from fiscal 2020. Under the new Plan, for its SEKISUI Environmental Sustainable Index, the Group will evaluate its impact on and contribution to not only the natural environment but also the social environment. We are declaring our 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.
Results of Calculation
The results of calculating the Sekisui Environmental Sustainability Index, utilizing results from fiscal 2019, are provided in the chart below. Setting the use of natural capital (the impact on the environment) at 100, the return of natural capital (contributions to the environment) was 104.5%.
One of the factors in this achievement was to increase the "contribution to reducing environmental impact" from products by, for example, expanding the sales of Environment-contributing Products, including the remodeling menus for smarter homes, which promote conversion to renewable energy and boost energy savings, and the materials used for electronic products as well as associated reduction in SCOPE 3 greenhouse gas emissions during product use.
Going forward, we will sustain the rate of return to natural capital 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 to natural and social capital are also linked to improvements in the sustainability of the Sekisui Chemical Group and its products.
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).
|Sekisui Environmental Sustainability Index||
Calculating the usage and return volumes of natural capital
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: