"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 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, the “rate of return to natural capital,” as reflected in this index, is being used as a KPI to manage the overall progress of Group companies’ environmental management. The Group aims to achieve 87% in fiscal 2018 and 90% over the three-year period of the Medium-term Plan and has established returns of 100% or higher as its target for 2030.
Results of Calculation
The results of calculating the Sekisui Environmental Sustainability Index, utilizing results from fiscal 2018, 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 92.8%. One of the factors in this achievement was reducing the impact on the environment by working on the supply chain, such as reducing SCOPE 3 greenhouse gas emissions, and expanding the sales of Environment-Contributing Products, including solar power-equipped houses and interlayers to address sound and heat insulation in vehicles. We plan to further increase the effectiveness of our various initiatives with the aim of achieving an even better return in 2019.
We aim for a “world in which biodiversity is conserved” by reaching a return rate to natural capital of 100% or higher by 2030 and thus achieving sustainable use of the earth’s natural capital.
Increasing the “product contribution,” as reflected in this index, and bringing about an improvement in the return to natural capital are also linked to improving the environmental efficiency of Sekisui Chemical Group customers.
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||Sekisui Environmental Sustainability Index: Overall volume of returns of natural capital by the Group / Overall volume of usage of natural capital by the Group
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: