Progress under the Environmental Medium-term Plan

From fiscal 2020, we have set targets to be achieved in fiscal 2022, the final year of the Medium-term Plan, and have launched initiatives for the crucial items listed as follows within our Environmental Medium-term Plan, SEKISUI Environment Sustainability Plan: Accelerate II (2020–2022).

Improving the Rate of Return of Natural and Social Capital
Monitoring progress with the integrated index, Sekisui Environment Sustainability Index: Maintaining a rate of return to natural capital of 100% or more

Improve Global and Social Sustainability with Our Products
Sales of Products to Enhance Sustainability: 800 billion yen (sales ratio equivalent to 63%)

Initiatives Aimed at Addressing Climate Change
[Decarbonization]
Renewable energy as a percentage of purchased power: 20%
Reductions in greenhouse gas emissions: 9% or more (vs. fiscal 2013)

Initiatives Aimed at Addressing Resource Depletion
[Promoting resource recycling]
Recycling rates for waste materials: Grasp current conditions and set a baseline (achieve double or more of the baseline by fiscal 2025)

Initiatives Aimed at Addressing Water Risks
[Preservation of water resources]
Water intake volume at production sites using a large amount of water: 10% reduction (vs. fiscal 2016)
Total amount of COD discharged into rivers by production sites where discharge is substantial: 10% reduction (vs. fiscal 2016)
[Minimizing water risk]
Understanding water risks specific to watersheds and implementing related initiatives

Improving the Ability of Employees to Contribute to Problem Solving
Promoting activities that contribute to SDGs

We have been implementing our three-year Environmental Medium-term Plan, SEKISUI Environment Sustainability Plan: Accelerate II from fiscal 2020. Backcasting to achieve the goals we have set for 2050 in our Long-term Environmental Management Vision, SEKISUI Environment Sustainability Vision 2050, we are aiming for milestones established for each Medium-term Plan while implementing various initiatives.
In the Environmental Medium-term Plan, we identify climate change, water risk, and resource recycling as the important environmental issues that the Group should address. To accelerate the solution of these issues, we are focusing in particular on three areas: creating and expanding markets for Products to Enhance Sustainability; reducing environmental impact; and environmental conservation.
Since its launch in 2006, the predecessor of the Products to Enhance Sustainability, the Environment-Contributing Products program, has on the basis of internal standards registered products that have a high degree of contribution to solving environmental issues. We had committed to society to increase the ratio of such products in all of the Company’s products and had been promoting the creation of products that solve social issues and the expansion of those product markets.
In fiscal 2017, we expanded the scope of Environment-Contributing Products to encompass not only the natural environment but also human capital and social capital. SEKISUI CHEMICAL Group aims to improve the lives of the people and the Earth’s environment. In terms of improving people’s lives, we believe it is essential to solve the issues noted in the Sustainable Development Goals (SDGs) adopted by the UN in 2015, including promoting welfare and health, improving the global environment, and securing robust infrastructure by mitigating and adapting to climate change. We reaffirm our commitment toward addressing and resolving issues in these areas.
First, we will promote our efforts by maintaining a focus on solving these issues. To improve the sustainability of both the Company and our products, we will implement verifications and assessments in regard to Governance (Internal Control), supply chain, customer satisfaction, processes, and supply chain assessment, throughout our supply chain.

In terms of issues related to climate change, we established a long-term goal of zero greenhouse gas emissions by 2050, and to achieve that goal, put in place a milestone in which all purchased power in Scope 2 comes from renewable energy by 2030. Under the current Medium-term Plan, we are targeting a 20% conversion by fiscal 2022. To actively promote the conversion of electricity used at production plants to renewable energy, we started conversion support measures from fiscal 2020 for our “energy procurement innovation” phase. With regard to fuel sources under Scope 1, we are continuously promoting efficiency improvements by renewing aging equipment, converting power source to electricity, and continuous energy saving activities at production sites.
Regarding issues related to water risk, we are focused not only on continuing to reduce the amount of water used on a Group-wide basis and promoting the recycling of water, but also on working to improve quality of water, based on COD indicators discharged into watersheds. In addition, SEKISUI CHEMICAL Group aims to better understand water risks specific to a given area and is committed to formulating and implementing measures for high-risk businesses to reduce water risk in each of their respective operating regions.
As far as the recycling of resources is concerned, while focused on reducing the amount of waste generated even as we aim to double our businesses by 2030, we will also promote initiatives emphasizing recycling with the aim of realizing a circular economy and a recycling-based society in 2050.
As products and technologies that contribute to resource recycling, we are currently conducting pilot projects relating to Bio-Refinery (BR) technologies that can use microorganisms to produce ethanol from waste and are proceeding toward their business implementation.
We believe that the solution of environmental issues will be accelerated if the entire supply chain works as one. More than ever, we will develop measures and carry out activities with an emphasis on supply chain management throughout the product life cycle.

＜Factor Analysis＞
In 2021, we deepened the evaluation and awareness of resource recycling in conventional products by means of identification through revising the standards for contributions that play a part in resource recycling, and six out of 28 cases were registered as products that contribute to resource recycling. In particular, the recycling of PVA resin, which is carried out in partnership with raw material suppliers, assisting greatly not only in terms of the level of its contribution but also to an increase in sales of Products to Enhance Sustainability.
In response to increasing demand for low carbon and decarbonization, there have been increased sales of products that reduce greenhouse gas emissions in customers’ processes as intermediate materials related to electronic devices and in products that support the necessary functional improvements for the 5G evolution. These, too, contribute to the overall increase in sales of Products to Enhance Sustainability.

＜Quantification of the Contribution Effect on Solving Issues through Products＞
In fiscal 2021, we identified environmental values from products equivalent to 60% of Environment-Contributing Products sales.
Regarding returns and value of social capital, we are also looking into the utilization of an impact accounting method.
The Group will leverage the visualized environmental and social values (degree of contribution on solving issues) of products and lines of business, releasing information and enlightening society, and will also step up its activities that allow it to receive feedback about its business.

＜Factor Analysis＞

＜Factor Analysis＞

Going forward, we will not only reduce the amount of waste generated in the production process, but also work to advance the recycling of waste and products, while simultaneously promoting the use of recycled resources in order to achieve a truly circular economy.

SDGs Contribution Activities^*
With regard to social contribution activities, such as environmental conservation and nurturing of the next generation, which have been carried out mainly by business sites or employees, recommendations advocate a change in consciousness toward awareness of SDGs during the undertaking of activities while continuing conventional endeavors.
The objectives of conventional activities becomes clear by considering which social issues to focus on and why to work on solving those social issues, centered on the SDGs, and expect that activities will be reviewed and effects will further improve.
In fiscal 2020, the number of actual activities reduced due to the COVID-19 pandemic. From 2021, we have been working from where we can, based on the above ideas.

For more information about SDGs contribution activities, see Social and SDG Contribution Activities