Progress under the Environmental Medium-term Plan

From fiscal 2020, we are establishing the targets to be achieved in fiscal 2022, the final year of the Medium-term Plan, and launching initiatives for the crucial items below within our Environmental Medium-term Plan, “Sekisui Environmental Sustainability Plan: Accelerate II.” (2020 – 2022).

Improving Natural and Social Capital Return Rates

Monitoring of progress in respect to integrated index “Sekisui Environmental Sustainability Index”: Maintaining rate of return to natural capital of 100% or more

Using Products to Improve Global and Social Sustainability

Sales of products to enhance sustainability: 800 billion yen (sales ratio equivalent of 63% vs FY2019)

Initiatives aimed at addressing climate change

[Decarbonization]
Renewable Energy as a Percentage of Purchased Power: 20%
Reductions in greenhouse gas emissions: 9% or more (vs. FY2013)

Initiatives aimed at addressing the issue of resource depletion

[Promoting Recycling]
Recycling rates for waste materials: Grasp current conditions and set benchmarks (achieve double or more of benchmarks by fiscal 2025)

Initiatives aimed at addressing water risks

[Preservation of water resources]
Water intake volume at production sites using a large amount of water: 10% reduction (vs. FY2016)
Total volume of COD discharged into rivers by production sites where discharge is substantial: 10% reduction (vs. FY2016)
[Minimizing water risk]
Understanding water risks specific to watershed areas and implementing related initiatives

Improving the ability of employees to contribute to problem solving

Promoting activities that contribute to SDGs

  • 11-02

Promoting an Environmental Medium-term Plan Based on Backcasting from Our Long-term Vision

We will implement our three-year Environmental Medium-term Plan, “Sekisui Environmental Sustainability Plan: Accelerate II” from fiscal 2020. Using back-casting to achieve the goals we have set for 2050 in our long-term environmental vision, “Sekisui Environment Sustainability Vision 2050,” we are aiming for milestones established for the Medium-term Plan while implementing various initiatives.

Initiatives of particular focus included reducing greenhouse gases and expanding products to enhance sustainability. With regard to decreasing greenhouse gas (GHG) emissions, we have declared our goal of zero GHG emissions due to our business activities by 2050 and will regard it as a milestone when, by 2030, 100% of the Company’s purchased power comes from renewable energy.

Corresponding to our "energy consumption innovations" phase, up to and including fiscal 2019 we set an environmental contribution investment framework of ¥12 billion (equivalent to 0.3% of sales) over three years to steadily achieve this target and had been promoting aggressive capital investment. For our “energy procurement innovation” phase, from fiscal 2020 onward conversion support measures have been started to actively promote the conversion of electricity used at production plants to renewable energy.

Since its launch in 2006, the predecessor of the “Products to Enhance Sustainability,” the “Environment-Contributing Product” program, has on the basis of internal standards registered products that have a high degree of contribution to solving environmental issues. We had committed to society to increase the ratio of such products in all of the Company’s products and had been promoting the creation of products that solve social issues and the expansion of the market.

In fiscal 2017, we expanded the scope of Environment-Contributing Products to encompass not only the natural environment but also human capital and social capital. SEKISUI CHEMICAL Group aims to improve the lives of the people and the Earth's environment. In terms of improving the lives of the people, we believe it is essential to resolve the issues noted in the Sustainable Development Goals (SDGs) adopted by the UN in 2015, including “promoting welfare and health,” “improving the global environment,” and “securing robust infrastructure” by “mitigating and adapting to climate change.” We reaffirm our commitment toward addressing and resolving issues in these areas.

In fiscal 2019, we set goals to solve environmental issues and to be aimed for in 2050 and established “Sekisui Environment Sustainability Vision 2050.” In line with back-casting based on this environmental vision, we established milestones and launched from fiscal 2020 the three-year Environmental Medium-term Plan “Sekisui Environmental Sustainability Plan: Accelerate II”

The Environmental Medium-term Plan beginning in fiscal 2020 identifies important environmental issues for action, such as climate change, water risk, and resource recycling, and we have established specific initiatives with the aim of accelerating resolution of these issues. We believe that all of the efforts to resolve ecosystem degradation are tied to preserving biodiversity. With regard to environmental issues, we believe that solving them can be further accelerated by working as one throughout the supply chain. With this in mind, we are developing initiatives and engage in activities with a greater focus on supply chain management over the life cycle of the product.

In terms of issues related to climate change, we established a long-term goal of zero greenhouse gas emissions by 2050 and, to achieve that goal, put in place a milestone of having moved to a system in which all purchased power comes from renewable energy by 2030.

In regard to issues related to water risk, we are focused not only on continuing to reduce the amount of water used on a Group-wide basis and promoting the recycling of water, but also on working to improve the quality, based on COD indicators, of water discharged into watershed areas. In addition, SEKISUI CHEMICAL Group aims to better understand water risks specific to a given area and is committed to formulating and implementing measures for high risk businesses to reduce water risk in each of their respective operating regions.

In regard to the recycling of resources, while focused on reducing the amount of waste generated even as we aim to double our business by 2030, we will also promote initiatives emphasizing recycling with the aim of realizing a circular economy and a recycling-based society in 2050.

There are four initiatives with regard to resource recycling issues.

  • 1.
    Expansion of products to enhance sustainability that contribute to resource recycling
    To more than double the net sales of products to enhance sustainability that contribute to resource recycling in 2030 compared with fiscal 2019, we aim to increase sales of products to enhance sustainability by 10% during the current Medium-term Plan.
  • 2.
    Within goal 1, we aim to increase net sales by 10% during the current Medium-term Plan to increase sales of products to enhance sustainability that contribute to the conversion of raw material resources by more than 30 times in 2030 compared with fiscal 2019.
  • 3.
    Expansion of waste recycling rate
    We will ascertain the status of the recycling of plastic waste into materials, set a benchmark, and expand the ratio to more than double this benchmark by 2025.
  • 4.
    Reduction of waste generated
    As in the past, we will strive to reduce the basic unit by 1% over three years. Believing that unprecedented innovation is necessary for this reduction, we will consider the technologies and methods toward 2030.

Promoting the four initiatives mentioned above, we will aim to realize a circular economy in 2050.

As products and technologies that contribute to resource recycling, we are currently conducting pilot projects relating to BR technologies that can use microorganisms to produce ethanol from waste and are proceeding toward their social implementation.

As products to enhance sustainability, we will not only be expanding our contribution to improving global and social sustainability, i.e., resolving existing issues related to the natural and social environments, but also implementing verifications and assessments in regard to Governance (Internal Control) throughout the supply chain, customer satisfaction, processes, and supply chains to further improve the sustainability of both the Company and our products.

Fiscal 2020 Results and Fiscal 2021 Targets

Creating and Expanding the Market for Products to Enhance Sustainability

  • Fiscal 2020 target
    Net sales: 710.0 billion yen
    (sales ratio equivalent of 60%)
    Result
    Net sales of 640.3 billion yen, target not achieved
    (sales ratio equivalent of 60.6%)

  • Number of new registrations:
    Fiscal 2020 target: 6 registrations
    Fiscal 2020 result: 12 registrations
    Target achieved

<Factor Analysis>

In fiscal 2020, the number of new registrations came to 12, which surpassed the target of 6 registrations.
We recognize and register social issues centered on intermediate materials in the area of electronics, such as foam materials and heat release products.

<Quantification of the Contribution Effect on Resolving Issues through Products>

To visualize the degree of contribution on resolving issues through products, we calculate by using “LIME2,” a method that indicates environmental value of products and businesses (the return to natural capital and degrees of contribution) through LCIA evaluations. In fiscal 2019, we identified environmental value from products equivalent to 70% of Environment-Contributing Products sales.

With regard to returns to social capital and value, we are also looking into the utilization of an impact accounting method.

The Group will leverage the environmental and social value (degree of contribution on resolving issues) of visualized products and lines of business, releasing information and raising awareness in society, and will also step up its activities that allow it receive feedback about its business.

Reducing Environmental Impact

GHG emissions:
Fiscal 2020 target of reductions of 7% or more (relative to a fiscal 2013 benchmark)
Target achieved, with reductions of 19.3%

Energy savings:
Fiscal 2020 target of reductions of 1% of energy consumption per unit of output (based on a benchmark of fiscal 2019)
Target not achieved, with reductions of 0.4% (2.6% increase in Japan and 0.4% increase overseas)

<Factor Analysis>

Greenhouse gas emission were markedly reduced due to the effects of renovation of deteriorated facilities, introduction of self-consumption-type solar power-generation facilities, and shifting purchased power to renewable energy sources, as well as the reduction in production volume resulting from the impact of the COVID-19 pandemic.

The reduction in production volume had a major impact on energy savings, and it caused the energy consumption per unit of output to increase.

Amount of Waste Generated:
Fiscal 2020 - 2022 target of reductions of 1% or more per unit of output over a three-year period (relative to the fiscal 2019 benchmark) Target not achieved, with a reduction of 0.8% (2.2% increase in Japan, 1.9% reduction overseas)

<Factor Analysis>

  • Japan:
    Although we reduced the amount of waste by allowing the re-use of scrap metal generated as part of the production process for high-performance resin products, decreased production volume caused increase in per unit of output.
  • Overseas:
    At our Urban Infrastructure & Environmental Products Company business sites, the amount of waste was drastically reduced, and per unit of output also improved in spite of decreased production volume.

Going forward, we will not only reduce the amount of waste generated in the production process, but also work to advance the recycling of waste and products, while simultaneously promoting the use of recycled resources in order to achieve a truly circular economy.

Environmental Conservation

SDG Contribution Activities*

With regard to social contribution activities, such as environmental conservation and the nurturing of the next generation, which have been carried out mainly by business sites or employees, it is recommended to change consciousness to be aware of SDGs during the activities while continuing the conventional activities.

By thinking about which social issues to focus on and why to work on solving those social issues, focusing on SDGs, we believe that the significance of conventional activities will be clarified, and we can expect to be able to review the activities and further improve the effects.

In fiscal 2020, the actual activities reduced due to the COVID-19 pandemic, but from fiscal 2021 we will proceed from where we can on the basis of the abovementioned way of thinking.

Environmental Medium- to Long-term Plan and Fiscal 2020 Actual Results

✔: FY2020 target achieved
×: FY2020 target not achieved

Item Aim Indicator Base year Medium- to long-term target Target and results for FY2020 Target
Medium-term target
(FY2020-FY2022)
FY2030 Target FY2050 Target FY2020 Target FY2020 Results Self-evaluation Reference page Domestic production sites Research facilities Domestic offices Overseas production sites Overseas offices Other
Rate of return on natural resource and social capital Achieving “Earth with Maintained Biodiversity” through corporate activities Sekisui Environment Sustainability Index Rate of return to natural capital Maintain 100% or more Maintain 100% or more 121.9%
Products to enhance sustainability Improve economic value Maximize value (social and economic) Sales of products to enhance sustainability (growth rate (compared with 2019)) 800.0 billion yen, 22% growth rate (compared to 2019), 63% sales ratio Expand sales of problem-solving products(maintain 60% ratio) Drive sustainable corporate growth thorough products and service which improve environmental and social sustainability. 710.0 billion yen
(sales ratio equivalent of 60%)
640.3 billion yen
(sales ratio equivalent of 60.6%)
×
Number of new registered products 6 per year 6 per year 6 per year 12 per year      
Reduce environmental impact GHG Decarbonization: Zero GHG emissions Renewable energy ratio of purchased electricity 20% 100% Maintain 100% 5% 7.2%
GHG emissions FY2013 ▲9% ▲26% ▲100% ▲7% ▲19.3%
Reduce energy usage volume Improve energy efficiency and reduce energy expenses during production Energy consumption for unit of output 2019 ▲3% ▲10% ▲1% ▲0.4% ×        
Resource circulation Maintain water resources Waste generated per unit of output FY2019 Waste per unit of output down 1% over a 3-year period Achieve a circular economy Waste per unit of output down 1% over a 3-year period ▲0.8% ×        
Copier Paper use per unit of output FY2019 ▲3% ▲1% ▲31.1%      
Waste generated per building FY2019 ▲6% ▲2% 4.6% ×          
Water risks Promotion of resource reuse Water intake volume at production sites which use large quantities of water 2016 ▲10% ▲10% ▲10.5%          
Total COD volume of riverdischarge water at production siteswith large COD emission volumes FY2016 ▲10% ▲10% ▲15.5%          
Reduce the impact of chemical substances Reduced chemical emission and transport volumes VOC emissions (Japan) FY2019 ▲3% ▲1% 7.7% ×        
Ecosystem Ecosystem impact: Minimize risks of ecosystem deterioration JBIB Land Use Score Card® points FY2019 +3 points over a 3-year period Promote ecosystem consideration*at all business sites
*Ecosystem consideration: Increased quantitative evaluation of biodiversity
Maintain ecosystem consideration at all business sites +1 point +1.3 points        
Education and development Education for Enhancing the Ability to Contribute to Solving Social Issues Improve employees’ ability to contribute to solving social problems (employee education) Problem-solving capability indicators for personnel FY2020 Implement education and human resource index checking to develop the skills needed by human resources with excellent problem-solving abilities (ESG human resources). Achieve FY2020 benchmarks and set goal values. Level up as human resources with excellent problem-solving ability Take a leading role in society as human resources with excellent problem-solving ability Target-setting with a sense of benchmarks Setting target values