Integrated Index Sekisui Environment Sustainability Index
The Sekisui Environment Sustainability Index reflects the impact on the environment of the activities of SEKISUI CHEMICAL Group companies (the use of natural and social capital) and their degree of contribution to the environment (returns to natural and social capital) as a single indicator. The major items for implementation in the Environmental Medium-term Plan - reducing various impacts on the environment, expanding products and services that contribute to the natural and social environments, conserving the environment, and so forth - were integrated into this indicator; the Group has been running preliminary calculations since fiscal 2014. From fiscal 2017, this index is being used to monitor the overall progress of Group companies’ environmental management.
The Group has been aiming to achieve 90% over the three-year period of the Environmental Medium-term Plan (2017-2019) and achieved a return rate of 104.5% in fiscal 2019, the final year of the Plan.
As far as the Environmental Medium-term Plan is concerned, the Group is evaluating its impact on and contribution to not only the natural environment but also the social environment while declaring its intention to contribute to the return of natural and social capital for its Sekisui Environment Sustainability Index. In 2050, even as we expand our business, we will promote ESG management while maintaining a return of 100% or higher for both natural capital as well as social capital.
The results of calculating the Sekisui Environment Sustainability Index, utilizing results from fiscal 2021, are as follows. Setting the use of natural and social capital (the impact on natural and social environment) at 100, the return of natural and social capital (contributions to natural and social environment) was 117.7% (a 13.2 percentage point increase over the 104.5% achieved in fiscal 2019 and a 4.2 percentage point decrease from the 121.9% achieved in fiscal 2020).
Trends in the return rate are analyzed as follows.
(1)Regarding the use (impact) of natural and social capital, the influence of COVID-19 gradually dissipated, and the return to production to pre- pandemic levels was one of the causes of the increase in environmental impact. However, the impact on natural and social capital has decreased compared to FY2019 prior to the pandemic in terms of energy and the supply chain. This is considered to be the result of the conversion of renewable energy for electric power, cooperation by our suppliers, and sales of products that lower energy consumption at the time of use (Zero Energy Housing [ZEH]-specification housing).
(2)Regarding the return (contributions) of natural and social capital, the returns (contributions) due to Products to Enhance Sustainability are steadily increasing. From an environmental conservation activity perspective, however, contributions are decreasing. This reflects restrictions on the implementation and content of activities due to various policies including efforts to address any further spread of COVID-19 at business sites.
Going forward, we will maintain the rate of return to natural and social capital at 100% or higher while growing the company and expanding our businesses. By 2050, we aim to realize the sustainable use of the earth’s natural capital and the social capital generated by human society.
In this index, promoting solving issues by means of products will contribute to improving the sustainability of the earth and society. We also believe that bringing about improvements in the returns on natural and social capital will link to improvements in the sustainability of SEKISUI CHEMICAL Group and its products.
After compiling the raw data in (1), above, the damage calculation-based impact assessment method LIME2, developed for use in Japan by Professor Norihiro Itsubo of Tokyo City University, was employed for the calculations in stages (2) and (3).
|Sekisui Environment Sustainability Index||Sekisui Environment Sustainability Index: Overall of returns of natural capital by the Group / Overall of use of natural capital by the Group
Calculating the use and return of natural capital
Employing LIME2 (a damage calculation-based impact assessment method developed for use in Japan by Professor Norihiro Itsubo of Tokyo City University) and covering all the criteria for conservation defined by LIME2, the impacts on each of human health (including the effects of global warming), societal assets (including the effects of global warming), the effects on plants (reducing interference on growth), and the effects on life (restricting the extinction of living species) were evaluated and then made into a single indicator.
The amount of return to natural capital is calculated assuming that the risk of damage to natural capital has been reduced by various environmental contribution efforts of the entire group compared to the case without such efforts.
Scope of Calculation / Listing by category of calculation: Estimated calculations were conducted using the following assumed conditions: