Products to Enhance Sustainability
SEKISUI CHEMICAL Group will accelerate efforts to create and expand markets for products to enhance sustainability that contribute significantly to the resolution of social issues. Through these means, we will support the basis of LIFE and continue to create peace of mind for the future in order to realize a sustainable society.
SEKISUI CHEMICAL Group will contribute to the resolution of various social issues, including SDGs, through its core business products. More than just contribute to the realization of a sustainable society, we will grow as a company essential to society. To this end, we will accelerate efforts to create and expand markets for products to enhance sustainability that increasingly contribute to the resolution of social issues while working to enhance global and social sustainability. At the same time, we will utilize the products to enhance sustainability system to improve the sustainability of companies and products.
Products to enhance sustainability are products that make a significant contribution to solving issues in the natural and social environments. SEKISUI CHEMICAL Group evaluates and certifies these products’ degree of contribution based on certain internal standards.
Vision 2030 positions “products to enhance sustainability” as the outcomes of efforts to resolve materialities with important impact on management and society. By creating and expanding such product lines, SEKISUI CHEMICAL Group aims to resolve social issues while growing its business. We position our target* for the creation and expansion of products to enhance sustainability as a key performance indicator (KPI), devising strategies and carrying out measures to achieve it.
- This target is a milestone back-cast from Sekisui Environment Sustainability Vision 2050, an environmental vision that set goals for resolution of natural and social environmental problems that require a long-term approach. As such, it is positioned as a management target in the Group’s medium-term environmental plan, Sekisui Environment Sustainability Plan: Accelerate II. Progress on this target is managed based on the environmental management promotion system
Please refer to “Environmental Management Promotion System,”
Training to Enhance the Ability to Contribute to Solving Social Issues
SEKISUI CHEMICAL Group has continued to focus on training to enhance its ability to contribute to solving social issues, which is key to realizing Vision 2030, from fiscal 2020.
As a company, we provide education and training in an effort to encourage employees to take the initiative in understanding and resolving social issues, while putting into practice their own thoughts, depending on their responsibilities and working environment.
Social and SDG Contribution Activities to Improve the Ability to Contribute to Solving Social Issues
Social and SDG Contribution Activities to Improve the Ability to Contribute to Solving Social Issues Beginning in fiscal 2020, SEKISUI CHEMICAL Group is recommending activities that contribute to the SDGs and strengthening efforts to cultivate its people and spiritual climate. Our aim is to improve employees’ ability to contribute to solving social issues.
Advanced Product Evaluation System That Promotes the Resolution of Social Issues
SEKISUI CHEMICAL Group has continued to promote a product evaluation system in order to accelerate the resolution of issues related to the natural and social environments since fiscal 2006. Certification registration is based on the determination criteria established through discussions among internal committee members. We have received opinions and advice from outside advisors on the criteria and approach, as well as the validity of the results, to ensure high standards and transparency.
・ Fiscal 2006: Launched the Environment-Contributing Products system
Based on internal standards, SEKISUI CHEMICAL Group launched a product system to certify and register products that contribute significantly to the resolution of issues in a bid to promote the creation and expansion of products that contribute to the resolution of issues in the natural environment.
・ Fiscal 2017: Expanded the scope of the system to include not only products that contribute to solving natural environment issues, but also those that focus on the social environment
SEKISUI CHEMICAL Group is working diligently to further create and supply problem-solving products. We have also reaffirmed that the SDGs and our goals are one in the same.
・ Fiscal 2020: Evolution as products to enhance sustainability
Introduced strategic framework "premium framing" and form of confirmation "sustainability assessment"
Evolution of the Product System at SEKISUI CHEMICAL Group
In Vision 2030, ESG management is described as a strategy for “achieving a sustainable society and sustainable growth for the Group’s business.”
To drive its achievement of the target state of Vision 2030, SEKISUI CHEMICAL Group is continuing its existing systems for improving its ability to contribute to solving social issues while launching two key changes starting in fiscal 2020. First, to bolster profitability, the Group is establishing a strategic framework called the Premium Framing to match its business portfolio with the above systems and strategically expand them. Second, to boost its capabilities in sustainable management, the Group is implementing Sustainability Assessment, a program to confirm and evaluate items necessary to improve the sustainability of its products and businesses.
Ensuring the sustainability of the Group and Group products themselves is vital to continue making products that contribute significantly to the resolution of social issues and expanding that contribution. For this reason, we adopted a new perspective on evaluating corporate and product sustainability in addition to the conventional process of certifying products that contribute significantly to the resolution of issues based on internal standards from fiscal 2020. Using confirmation assessments based on such factors as profitability, process evaluations, and Governance (Internal Control) across the supply chain, we are building and operating an evaluation system that confirms sustainability and promotes the implementation of activities to enhance sustainability.
Moreover, SEKISUI CHEMICAL Group has initiated “premium framing” as a strategic framework to systematically expand products that contribute to the resolution of social issues and are committed to that expansion in line with medium-term targets.
Putting in place strategies that balance the resolution of social issues with profitability, our goal is to accelerate contributions toward the resolution of issues.
Strengthen the Group’s management ability to sustain business to continue contributing to the natural environment and society
Discussion with External Advisors
In fiscal 2012, SEKISUI CHEMICAL Group established an External Advisory Board. This board assembles experts from outside the Group who offer advice on standards and registration of products to enhance sustainability, as well as future perspectives.
The External Advisory Board meetings are sponsored by the supervising director of the organization in charge of environmental issues and CSR/ESG, and the members of the internal certification screening committee for Environment- contributing Products, including staff such as executive officer representatives from each divisional company who unify the technical side, organization heads carrying out management project work with a grasp for business conditions as a whole, participate in this board. We also ask others from outside the Company coming from various backgrounds in industry, government, and academia who are currently engaged in CSR-related work, including related to the environment, to take part as external experts.
In fiscal 2020 the External Advisory Board conducted an online conference. The Board provided SEKISUI CHEMICAL Group with advice and opinions regarding the importance of considering and contributing on multiple issues, rather than a single issue, related to newly registered products’ contributions to the natural and social environments.
From fiscal 2021, the External Advisory Board is continuing its operations, serving as a forum for discussions from the perspective of sustainability. The purpose of these discussions is to enable the design and management of systems to encourage the creation and expansion of product lines that solve issues of the natural and social environments.
Note:Internal certification screening committee
The chairman of this committee is the supervisor of the ESG Management Department, and headquarters and divisional companies' technology and business supervisors participate in the committee’s meetings as members. The committee meets to deliberate on issues related to certification of Products to Enhance Sustainability. Meetings are held regularly twice per year.
Visualization of the Degree of Contribution to Resolving Social Issues
To clarify the amount of return to natural capital, SEKISUI CHEMICAL Group in fiscal 2019 worked to visualize the degree to which each Environment-Contributing Product contributed to the resolution of social issues. We calculated and quantified into a single indicator (damage costs) the various contribution vectors in the life cycle of Environment- contributing Products. We multiplied the market impact, based on sales, by the environment contribution of each product to arrive at a quantifiable contribution by product, reflected in the Sekisui Environmental Sustainability Index.
In calculating the impact on the environment for each Environment-contributing Product until fiscal 2016, we broadly classified environmental issues into three areas that should be resolved in our aim to help realize a planet where biodiversity is preserved. However, since broadening the scope of Environment-contributing Products in fiscal 2017, we have since taken steps to integrate contributions across four areas adding the area of human health / social assets. We began conducting environmental impact assessments based on the contribution to resolving issues in the natural environment and the social environment of products to enhance sustainability throughout their respective lifecycles since fiscal 2020. These contributions to natural and social capital are reflected in the Sekisui Environment Sustainability Index.
In particular, we have started to explore the possibility of evaluating the social value of our products based on impact- weighted accounting.
How to Visualize the Degree of Contribution to Resolving Social Issues
Computation of the degree of contribution to environmental issues is based on the following calculations.
(1)Determine technologies and products to be compared.
(2)Gather quantifiable data related to environmental impact of each stage of a product's lifecycle (from raw materials to production, transport, use and disposal).
(3)Apply a coefficient* to calculate environmental impact for each factor affecting the environmental impact data obtained and consolidate the results.
(4)Environmental contribution is the difference between the coefficient-derived value in (3) above and the original value.
- Coefficient: Calculated using a customized version of MiLCA, a system developed by Japan Environmental Management Association for Industry using LIME2, an environmental impact assessment method created by Professor Norihiro Itsubo at Tokyo City University.
Creating Products to Enhance Sustainability through Internal Fusion by the ESG Task Force
Today’s companies are hearing growing demands to offer solutions in a timely manner to address issues such as the COVID-19 pandemic. In such times, innovations must be considered quickly and turned rapidly into action. However, we believe it is also important to accelerate the proposal and consideration of innovations aimed at solving social issues with a long-term view and to implement those innovations in a timely manner. By taking such quick and prompt action, SEKISUI CHEMICAL Group was able to fuse its 28 technological platforms for promoting the creation of products to enhance sustainability. The result was the launch of the ESG Task Force, a forum for considering social issues in ways that transcend organizational boundaries.
In the future, we will take steps to normalize internal cross-sectional systems that enable the development of business proposals aimed at addressing social issues, while at the same time putting in place a system that can accelerate innovation in case of emergencies such as the COVID-19 pandemic.
Encouraging Development through the Use of ESG Investment and Measures to Support Expansion of Products to Enhance Sustainability
SEKISUI CHEMICAL Group has identified a subset, “measures to support the expansion of products to enhance sustainability,” within its established limit for ESG investment. This investment subset is designed to encourage planning and proposal of measures to create products and services and expand markets. To propose solutions to social issues through fusion, this investment subset serves as a financial incentive in support of themes at the planning and testing stages to achieve internal fusion and contribute to the resolution of social issues whose solution is urgently needed or that require long-term measures to solve.
Environment-Contributing Products PR
In fiscal 2020, SEKISUI CHEMICAL Group participated in the international conference Sustainable Brands 2021 Yokohama*. In addition to providing a wide range of information about the environment to visitors, we outlined our approach and introduced examples of how our products contribute to the resolution of environmental issues. While face-to-face opportunities that allow us to explain how our products help resolve social issues have declined due to COVID-19, we are employing online and other tools through which to convey information focusing mainly on the next generation of junior and senior high school students.
- The largest sustainability community event in Japan and a forum to share the latest sustainability initiatives and trends from domestic and overseas companies as well as local governments, and network with leading innovators in various industries.
Note 1:From fiscal 2019, Medical Business results are collated and presented with Headquarters results following its separation from the High Performance Plastics Company as an independent entity.
Note 2:From fiscal 2020, the product system has been evolved and renamed “products to enhance sustainability”
Net Sales / Proportion of Products to Enhance Sustainability
Net Sales of Products to Enhance Sustainability Over Time
|Urban Infrastructure & Environmental
|High Performance Plastics Company||99.4||142.2||178.9||110.0||121.9|
|Net sales of Products to
|Net sales of Products to Enhance Sustainability = Consolidated sales across SEKISUI CHEMICAL Group of products internally certified as Products to Enhance Sustainability
All businesses of the Group in and outside Japan are subject to assessment
|Proportion in net sales
of Products to Enhance
|Proportion in net sales of Products to Enhance Sustainability = Net sales of Products to Enhance Sustainability / Consolidated sales
All businesses of the Group in and outside Japan are subject to assessment
Number of Products to Products to Enhance Sustainability Newly Registered
registrations as of the
end of March FY2021