Foundation Underpinning ESG Management
SEKISUI CHEMICAL Group is promoting stakeholder engagement using a variety of methods.
Promoting Constructive Dialogue with Stakeholders
To build relationships of trust with its five stakeholders─customers, shareholders, employees, business partners as well as local communities and the environment─SEKISUI CHEMICAL Group considers that it is important to improve corporate value through constructive dialogue.
Positioning its stakeholders as partners in improving corporate value, having constructive dialogue with them, assessing their expectations and requests as well as resolving society-wide issues together with them, leads to great opportunities for SEKISUI CHEMICAL Group.
We will create a relationship of mutual prosperity with our stakeholders while continuing to promote sustainable growth.
Promoting Engagement with Stakeholders
In fiscal 2020, the ESG Management Department, which falls under the purview of the Director and Senior Managing Executive Officer (Head of the ESG Management Department), took on the role of promoting constructive dialogue with all stakeholders. The various assessments and opinions of all stakeholders are reported to the Sustainability Committee, which is chaired by the Company president and made up of directors, and the Company strives to adequately reflect these views in its activities.
There were no major concerns voiced by stakeholders through any of the engagements in fiscal 2020.
|Stakeholders||Responsibility of SEKISUI CHEMICAL Group|
|Customers||We take the voices of our customers seriously, offer prominent products and services and strive to build a long-term relationship of trust with our customers.|
|Shareholders||To meet the expectations of all our valued shareholders, we strive for highly efficient use of capital, fair ethical disclosure of information, adequate returns from profit, and increasing corporate value through sustainable growth.|
|Employees||We foster among our employees a spirit of taking on new challenges and are actively creating workplaces where every employee can stand out and diverse human resources can both excel and feel that their work is worthwhile.|
|Business partners||When procuring materials, we follow the fundamentals of being open, fair, compliant with the law, engaged in relationships of mutual trust, and environmentally conscious. We aim to achieve coexistence and shared prosperity by building more robust partnerships with our business partners and engaging in fair trade. We are also engaged in promoting CSR based on cooperation with our business partners.|
|Local communities||We emphasize a perspective that encompasses contributions to the development of communities through our business, coexistence with communities, and environmental conservation. We think about how to make measures that are tailored to the needs of each community and practice business in ways that engender trust.|
|Global environment||We are engaged in expanding and creating the market for products to enhance sustainability, reducing our environmental impacts, and conserving the natural environment─all with the aim of realizing “earth with maintained biodiversity.”|
Engagement with Stakeholders
SEKISUI CHEMICAL Group works diligently to promote communication with stakeholders through a variety of methods.
Main Responsibilities, Communication Channels, and Communication Methods
|Stakeholders||SEKISUI CHEMICAL Group's Commitment||Contact||Communication Methods||Frequency|
|Customers||We take the voices of our customers seriously, offer prominent products and services and strive to build a long-term relationship of trust with our customers.||
|Shareholders||To meet the expectations of all our valued shareholders, we strive for highly efficient use of capital, fair ethical disclosure of information, adequate returns from profit, and increasing corporate value through sustainable growth.||
|Employees||We foster among our employees a spirit of taking on new challenges and are actively creating workplaces where every employee can stand out and diverse human resources can both excel and feel that their work is worthwhile.||
|Business partners||When procuring materials, we follow the fundamentals of being open, fair, compliant with the law, engaged in relationships of mutual trust, and environmentally conscious.
We aim to achieve coexistence and shared prosperity by building more robust partnerships with our business partners and engaging in fair trade.
We are also engaged in promoting CSR based on cooperation with our business partners.
|Local communities||We emphasize a perspective that encompasses contributions to the development of communities through our business, coexistence with communities, and environmental conservation.
We think about how to make measures that are tailored to the needs of each community and practice business in ways that engender trust.
|Global environment||We are engaged in expanding and creating the market for Sustainability contributing Products, reducing our environmental impacts, and conserving the natural environment— all with the aim of realizing “earth with maintained biodiversity.”||
Dialogue through Various Methods of Communication
In similar fashion to fiscal 2019, we held conversations through the “Customer And Top (CAT)” meetings (held for approximately 50 houses in fiscal 2020), which feature housing sales company executives listening to customer feedback directly, interviews with investors and investigative organizations, and discussions with business partners at events such as the “Heim Mutual Prosperity Meeting.” As for employees, we are implementing a variety of initiatives including “Visions Caravan 2020” as an opportunity for the Company’s president and other high-ranking management officials to directly engage in online dialogue with employees in Japan and overseas about the long-term vision, “Visions 2030,” and ESG management. Through these initiatives, we are compiling opinions and requests from inside and outside the Company, as well as opinions and requests received from outside the Company with respect to public information including the CSR Report. The data is extremely useful in the promotion of ESG management.
Note:We did not exhibit at Eco Pro, which is one of the exhibition venues for customer communications for us every year, in fiscal 2020.
“Visions Caravan 2020,” an Opportunity for Direct Dialogue between Top Management and Employees
Believing that dialogue between management and employees is essential in resolving the problems faced by the Company as well as work-related issues, SEKISUI CHEMICAL Group has been providing opportunities for direct dialogue between employees and top management since fiscal 2002.
In fiscal 2020, we held “Vision Caravan 2020” in Japan and overseas to promote awareness of our newly formulated “Vision 2030” and ESG management, the key to realizing this long-term vision, among all employees throughout the Group.
In the past, management identified opportunities to engage in direct dialogue with employees. However, these opportunities were cancelled in fiscal 2020 due to the impact of COVID-19. Instead, eight online meetings were held in Japan and five overseas (East Asia, ASEAN, India, Australia, North America, and Europe).
During each “Vision Caravan 2020” initiative, the president and Senior Managing Executive Officer directly outline their personal thoughts on how to realize “Vision 2030” while also explaining the Group’s ESG management. In response, employees discuss among themselves and deepen their understanding toward how they should approach each business activity in order to realize “Vision 2030.” Taking into consideration a variety of factors, employees also look into how they can link individual operations to the Group’s ESG management. In response to questions and presentations that arise from deliberations among employees, the president and Senior Managing Executive Officer provide comments and feedback, while promoting lively interactive dialogue.
“Vision Caravan 2020” event implemented online
Direct Dialogue with Investors to Promote Understanding
Interest in ESG investment, by which investments are actively made in companies that engage in ESG activities, has been mounting recently, and ratings agencies are proactively undertaking surveys.
As its business domains are so diverse, SEKISUI CHEMICAL Group believes it is important to give explanations individually and carefully to ensure that the Group's overall business characteristics and ESG initiatives are sufficiently and correctly understood.
As one initiatives aimed at assessing how our corporate value and sustainable growth are reflected in how we appear from an outside perspective, we continuously engage in direct dialogue with ESG investment assessment and ranking institutions, particularly in Europe, as well as with financial institutions and investors in Japan and throughout the world. During fiscal 2020, we held 54 engagements.
In addition, we held a small meeting for sell-side analysts to gain a better understanding of each business in the HPP Company. Moreover, we continued to actively engage in dialogue with institutional investors via telephone and the Internet even under the influence of COVID-19.
Aside from these initiatives, SEKISUI CHEMICAL Group also discloses detailed information through various media including integrated reports, Notices of Convocation for the Annual General Meetings of Shareholders, and CSR reports on its website, with the investor and ESG investment assessment as well as SRI ratings agencies very much in mind. Since 2016, the Group has published an integrated report. In addition to previous explanatory information on economic value creation initiatives, this report contains details of strategies the Group uses to contribute to the resolution of social issues and how we continue to achieve sustainable growth as a “company essential to society.” Information in the CSR Report is provided in line with what is considered important to both society and SEKISUI CHEMICAL Group, based on internal and external surveys as well as third-party reviews, and references various report-drafting guidelines including GRI standards.
Active Engagement Between Investors and Management
|FY2017 Results||FY2018 Results||FY2019 Results||FY2020 Results|
|Number of engagements*||88||87||67||54|
- The number of engagements represents the number of times the Company president and executives in charge of specific areas had dialogues with investors.
Promoting Awareness and Understanding of ESG Management Concepts
We are promoting a variety of initiatives to deepen the understanding and penetration of various issues including SEKISUI CHEMICAL Group’s approach to ESG management.
In order to deepen awareness and understanding toward the long-term vision, Vision 2030, and ESG management among employees, SEKISUI CHEMICAL Group distributed various materials including an explanatory edition and comprehension and practice textbook along with a long-term vision booklet in fiscal 2020. In addition, we created an ESG Management Conceptual Diagram and are promoting awareness and education of the overall picture of ESG management and how it is connected to individual operations and initiatives on our intranet.
Furthermore, SEKISUI CHEMICAL Group implements CSR training for new employees, newly appointed managers, and all subsidiary company employees based on their position. Using a top-down approach, we also carried out training sessions for line leaders at all Group companies in fiscal 2020 to ensure that the Long-term Vision was thoroughly understood and incorporated into each business and their operations. Work site workshops were held at which each of these line leaders expressed their own vision for their workplaces 10 years from now and employees considered the kind of workers they want to become based on these visions.
Over and above the aforementioned, the following communication tools help promote increased awareness of the Group’s ESG management among employees.
●In-house magazine (including a series of special features on ESG management)
●SEKISUI Group ESG Management Reader's Guide (introduction to ESG management), a tool to promote understanding of ESG management among all employees
These communication tools and ESG-related materials are freely available for employees to download from the intranet, and are also distributed to all employees, regardless of whether they are regular or non-regular staff, on an as needed basis, for example when employees join the Company or when implementing ESG-related educational programs.
In the US and Europe, regional headquarters distribute CSR-related information to employees of each Group company. In Europe, information is posted on the intranet once a month, while information in the US is distributed via the News Wave booklet.
Distributing Value to Stakeholders based on GRI Standards
SEKISUI CHEMICAL Group calculates distribution status based on financial statements by stakeholder, using GRI and other standards as a reference.
|Stakeholders||Method of Calculating Amounts||FY2018||FY2019||FY2020|
|Business partners||Cost of Sales, Selling Costs / General Administrative Costs (Excluding Personnel Costs)||840,514||829,809||778,554|
|Employees||Labor costs, Salaries and allowances as part of sales costs and general administrative costs, Provisions for bonuses, Provisions for retirement pay||206,511||211,675||210,705|
|Global environment||Environmental conservation costs||21,882||17,850||16,207|
|Government and administrative bodies||Corporate taxes, local taxes, business taxes||22,261||22,619||19,902|
|Creditors||Interest paid as part of costs apart from sales||480||695||861|