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

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

  • Increasing Environment-contributing Products Sales ratio: 60% or more
  • Reductions in greenhouse gas emissions: 6% or more (vs. FY2013)
  • Preservation of water resources : Amount of water used 3% or more reduction (compared to fiscal 2016), COD total quantity 3% or more reduction (compared to fiscal 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”: A rate of return on natural capital of 90% or more
  • 3-002

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 2017 through fiscal 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 2013, by 2030. To fulfill its responsibilities as a Japanese company, 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 further. To ensure that this target is reached, the Group has created Environment-Contributing Investments Framework in order to promote aggressive investment in facilities on the scale of 12 billion yen, equivalent to 0.3% of revenue.
Concerning Environment-Contributing Products, the Group aims to increase the degree of contribution by expanding the criteria of recognition from natural environments to a framework which includes contributions to the social environment, encompassing human capital and social capital from the current environmental medium-term plan. 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 2018 Results in Respect to the Environmental Medium-term Plan

Fiscal 2018 results in respect to the Environmental Medium-term Plan are provided below:

Expanding and Creating Environment-Contributing Products

  • Fiscal 2018 target of 55% of revenue or more
    Target achieved, with 56.3%

  • Number of new registrations:
    Fiscal 2018 target of 10 registrations
    Target achieved, with 18 new registrations in fiscal 2018

<Factor Analysis>

In fiscal 2017, steps were taken to upgrade and expand the definition of Environment-Contributing Products, reaffirm our commitment to contribute the social environment, and commence registrations from a more diverse perspective.
In fiscal 2018, new registrations exceeded targets. Sekisui Chemical Group also achieved its Environment-Contributing Products sales ratio target.
Meanwhile, Sekisui Chemical Group is increasing sales of Environment-Contributing Products through new registration. This is in turn attributable to growth in zero energy houses (ZEH) in Japan and a reaffirmation of the value of pharmaceuticals and drug manufacture support in the Group’s medical operating which expanding globally.

<Changes and Matters under Consideration in the Environmental Medium-term Plan through Fiscal 2017>

In the Environment-Contributing Product certification system commenced in fiscal 2006, we set the percentage of revenue attributable to Environment-Contributing Products as a KPI from fiscal 2010. However, in the past we have undertaken the following corrections, and have promoted the new creation and market expansion of Environment-Contributing Products.

Changes up to fiscal 2016

  • Added the viewpoint of contributing to energy creation and the protection of biodiversity to the standards
  • 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

Changes from fiscal 2017

  • We included Environment-Contributing Products as products that contribute to the natural environment under the current framework, and newly expanded the definition of products that work to resolve issues related to the social environment as Social Environment-contributing Products.

<Quantification of the Contribution Effect gained from Environment-contributing Products>

To visualize the contribution gained from Environment-contributing 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 2018 we understood environmental value gained from products on the equivalent of around 75% of revenue from Environment-contributing Products.

More than just the natural environment, 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, and will promote a greater range of products that can contribute to the return to natural capital.
Furthermore, the Group will leverage the environmental value (degree of contribution) 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 2018 target of reductions of 4% or more (relative to a fiscal 2013 benchmark)
    Target not achieved, with reductions of 2.3%
  • Energy savings:
    Fiscal 2018 target of reductions of 2% of energy consumption per unit of output (based on a benchmark of fiscal 2016)
    Target achieved, with reductions of 3.7% (8.2% reduction in Japan and 2.4% 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, promote upgrades to aging facilities, as well as to work toward deployment of self-consumption-type solar power-generation facilities so as to expand the volume of reductions.

  • Amount of Waste Generated:
    Fiscal 2018 target of reductions of 2% from per unit of output (relative to a fiscal 2016 benchmark)
    Target not reached, with an increase of 3.3% (increase of 1.9% in Japan, up 8.0% overseas)

<Factor Analysis>

    • Japan:
      A deterioration due to production volume increase, and an increase in composite products on account of higher functionality
    • Overseas:
      Increase in high-functionality products of the overseas operating sites of the High Performance Plastics Company

Going forward, the Group will strive for even greater reductions in waste materials by developing recycling technologies, establishing schemes for recycling and reuse, recycling end materials, and promoting zero-emission activities in overseas business sites.

Conserving the Natural Environment

SEKISUI Environment Week

  • Fiscal 2018 target for participation rate among employees of 95%
    Target not reached, with participation rate among employees of 88.1%

<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” (2017-2019)

  • 3-003
Efforts Target Indicators Medium-term Targets
FY2018 targets FY2018 results Evaluation
Production sites in Japan Laboratories Domestic offices Overseas production sites Overseas offices Other
Manage process utilizing the integrated index 90% or more 87% or more 92.8%
Expand and create markets for Environment-contributing Products Create Environment-contributing Products 30 products 10 products Environment-Contributing Products: 3 registered Social Environment-Contributing Products: 15 registered
Increase sales of Environment-contributing Products 60% or more 55% 56.3% (643.8 billion yen)
Reduce environmental impact Reduce greenhouse gas (GHG) emissions -6% or more (compared with fiscal year 2013 results) -4% or more (compared with fiscal year 2013 results) -2.3% ×
Energy reduction -3% or more (compared with fiscal year 2016 results) -2% or more (compared with fiscal year 2016 results) -3.7% (Japan: -8.2%, Overseas: +2.4%)
Waste reduction Reduce the amount of waste generated per unit of production volume -3% or more (compared with fiscal year 2016 results) -2% or more (compared with fiscal year 2016 results) +3.3% (Japan: +1.9%, Overseas: +8.0%) ×
Reduce the amount of resources used in offices -3% or more (compared with fiscal year 2016 results) -2% or more (compared with fiscal year 2016 results) +1.4% ×
Reduce the amount of waste generated at new construction sites -10% or more (compared with fiscal year 2016 results) -5% or more (compared with fiscal year 2016 results) +1.7% ×
Maintain water resources -3% or more (compared with fiscal year 2016 results) -2% or more (compared with fiscal year 2016 results) +3.0% (Japan: -1.1%, Overseas: +15.1%) ×
-3% or more (compared with fiscal year 2016 results) -2% or more (compared with fiscal year 2016 results) +20.7% ×
Reduce the impact of chemical substances -3% or more (compared with fiscal year 2016 results) -2% or more (compared with fiscal year 2016 results) +7.1% ×
Conserving the natural environment SEKISUI Environment Week 100% 95% 88.1% ×
Improve the quality of the green spaces at business sites +5 points (compared with fiscal year 2016 results) +3 points (compared with fiscal year 2016 results) +4.3 points
5 business sites 3 business sites Business site evaluation trial run in accordance with the proposed evaluation standards ×
Forest preservation activities at Housing Sales companies 7 sales companies 7 sales companies 7 sales companies
Self-guided activities in partnership with local communities 50% or more 50% or more 55.3%
5 activities 5 activities 7 activities
Environmental education Environmental education +20 points (compared with fiscal year 2017 results)* +10 points (compared with fiscal year 2017 results) Japan: +5 points (44 points)
Overseas: US benchmark achieved (50 points)

*Because we decided to start measuring human resources indicators in fiscal year 2017, the base year was changed to fiscal year 2017.