Environmental Medium-Term Plan "Sekisui Environmental Sustainability Plan: Accelerate" (Fiscal 2017-2019)

Targets for Crucial Items to Implement within the Environmental Medium-term Plan “Sekisui Environmental Sustainability Plan: Accelerate” (2017-2019)

  • Increasing the percentage of revenue from Environment-contributing Products: at least 60%
  • Reductions in greenhouse gas emissions: at least 6% (compared to fiscal year 2013)
  • Preservation of water resources (quality and decrease in quantity used): Quantity used 3% or more reduction, COD total quantity 3% or more reduction (compared to fiscal year 2016)
  • “SEKISUI Environment Week”: Participation at all business sites and by all employees
  • Monitoring of progress in respect to integrated index “Sekisui Environmental Sustainability Index”: Return of at least 90% to natural capital

Implementing a Two-Stage Environmental Medium-term Plan Based on Backcasting from Our Long-Term Vision

We have established and are implementing a three-year Environmental Medium-term Plan for fiscal years 2017 through 2019. As its name suggests, this Environmental Medium-term Plan, “Sekisui Environmental Sustainability Plan: Accelerate,” will accelerate various initiatives aimed at achieving the posture we have depicted for 2030 in our long-term environmental vision.

Initiatives of particular focus include reducing greenhouse gases and expanding Environment-contributing Products. In the Paris Accords, adopted at the COP 21* meeting held in 2015, each country has promised to achieve country-level CO2 emissions reductions targets; Japan has set a target of reductions of 26%, compared to fiscal year 2013, by 2030. To fulfill its responsibilities as a Japanese company, the Sekisui Chemical Group has indicated reduction targets equal to or greater than the state targets and intends to willingly strive to reach them.

Concerning greenhouse gas reductions, the environmental medium-term plan lays out a target of reductions of 6% from the total amount of CO2 emissions released during business activities, even as the group is aiming to expand its business even further. To ensure that this target is reached, the group has planned for aggressive capital expenditures and has instituted internal investment promotion policies on the scale of 12 billion yen, equivalent to 0.3% of revenue.

Concerning Environment-Contributing Products, the group aims to expand upon the current environmental medium-term plan to change the criteria for recognizing Environment-contributing Products, as well as their degree of contribution, from only looking at the natural environment to embracing a framework that includes contributions to the social environment, encompassing human capital and social capital. The 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, it will be essential to resolve the issues noted in the Sustainable Development Goals (SDGs) adopted by the UN in 2015, including “promoting welfare and health” and “securing robust infrastructure.” In terms of the Earth's environment, it will be essential to resolve the issues presented in the SDGs of “mitigating and adapting to climate change” and others. The group intends to produce products and services that display considerable abilities to resolve such issues and to further accelerate the expansion of the market for Environment-Contributing Products.

  • COP 21: The 21st meeting of the parties to the UN Framework Convention on Climate Change.

Fiscal Year 2017 Results in Respect to the Environmental Medium-term Plan

Fiscal year 2017 results in respect to the Environmental Medium-term Plan are provided below:

The Creation and Expansion of the Market for Environment-contributing Products

  • Fiscal year 2017 target of 50% of revenue or more
    Target achieved at 50.2%

  • Number of new registrations:
    Fiscal year 2017 target of 10 registrations
    Target achieved, with 24 new registrations in fiscal year 2017

<Factor Analysis>

  • With the expansion of the definition of Environment-contributing Products, we reaffirmed our commitment to contribute in terms of more diverse perspectives

Changes and matters under consideration in the Environmental Medium-term Plan through fiscal year 2016:

  • Introduction of the concept of area contributions
  • Consideration of expanding the scope of evaluation to include contributions to resolving issues relating to matters such as disaster preparedness and damage mitigation
  • Visualization of environmental evaluations (degrees of contribution) of products and business using LCIA evaluations (implemented in relation to the equivalent of around 90% of revenue from Environment-contributing Products)

Going forward, the group will consider as contributions to natural capital those based on resolving issues relating to human and social capital and other aspects of the social environment, as well as those based on resolving issues relating to the natural environment, and will expand its range of products that can contribute by returning to natural capital. Furthermore, the group will leverage the environmental value (degree of contribution) of visualized products and lines of business to release information, raise awareness in society, and step up its activities that allow it receive feedback about its business.

Reducing Environmental Impact

  • GHG emissions:
    Fiscal year 2017 target of reductions of 3% or more (relative to a fiscal-year 2013 benchmark)
    Target not achieved, with reductions of 1.5%
  • Energy savings:
    Fiscal year 2017 target of reductions of 1% of energy consumption per unit of output (based on a benchmark of fiscal year 2016)
    Target achieved, with reductions of 1.2% (4.1% reduction in Japan and 2.0% increase overseas)

<Factor Analysis>

  • We are unable to cover the increase in GHG emissions from M&A and production increases through reduction activities

Going forward, the group intends to step up its energy-saving efforts at business sites in Japan and overseas while visualizing its impact on the environment, and to expand reductions by shoring up ECO-JIT and related activities.

  • Amount of Waste Generated:
    Fiscal year 2017 target of reductions of 1% from per unit of output (relative to a fiscal-year 2016 benchmark)
    Target not reached, with an increase of 0.4% (down 0.6% in Japan, up 3.1% overseas)

<Factor Analysis>

    • Japan:
      More composite products because of expansion of manufacturing of, and higher functionality for, chemical-related business
      Waste material volumes increased because of the moving in-house of the production of materials previously produced through outsourced processes in our housing business
     
    • Overseas:
      Roll-outs of measures are at this stage underway but unfinished
     

Going forward, the group will strive for even greater reductions in waste materials by promoting more-stable manufacturing, developing recycling technologies, decreasing the rate of defects, recycling end materials, and promoting zero-emission activities in overseas business sites.

Conserving the Natural Environment

SEKISUI Environment Week

  • SEKISUI Environment Week:
    Fiscal year 2017 target for participation rate among employees of 85%
    Target not reached with participation rate among employees of 84.9%

<Factor Analysis>

  • Insufficient promotion of individual action

Going forward, we will roll out positive examples of all-employee participation-based activities to all sites while announcing and publicizing examples of activities by individuals to make the idea of participation by all in both business site-held events and individual actions a more integral part of the corporate culture.

Environmental Medium-term Plan “Sekisui Environmental Sustainability Plan: Accelerate” (fiscal years 2017-2019)