Sustainability Report 2024 Timeframe Encompassed by This Report； April 2023-March 2024 (with certain updated information)
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Indicators and Targets

  1. TOP
  2. Environment
  3. Overview
  4. Indicators and Targets

Targets

The long-term goal of SEKISUI CHEMICAL Group's environmental activities is to realize an earth with maintained biodiversity as stated in its Long-term Environmental Management Vision, SEKISUI Environment Sustainability Vision 2050. To this end, we believe it is important to simultaneously achieve the such long-term goals for environmental issues as climate change, resource recycling, and water risks.

In the current Environmental Medium-term Plan, SEKISUI Environment Sustainability Plan: EXTEND (FY2023-2025), we focus on improving the quality of solutions to avoid imposing any negative impact on each of the aforementioned environmental issues.
Progress on each environmental issue is managed by setting milestones that are backcast from long-term goals and are based on individual management targets. The SEKISUI Environment Sustainability Index, an integrated indicator, is used to monitor the progress of environmental issues as a whole.

Environmental Medium- to Long-term Plan and FY2023 Results

Environmental Medium- to Long-term Plan and FY2023 Results (Environmental Medium-term Plan SEKISUI Environment Sustainability Plan: EXTEND (FY2023-2025)

✓: FY2023 target achieved
×: FY2023 target not achieved

Initiatives Goals Level Setting Guidelines Indicators Base year FY2023 Targets and Results Self-evaluation Reference Page(s) FY2024 Targets FY2025 Targets FY2030 Targets FY2050 Targets Targets
FY2023 Targets FY2023 Results Domestic (Japan) Sites Research Facilities Domestic (Japan) Offices Overseas Production Sites Overseas Offices Other
Progress management through the Integrated Index   Achieve an earth with maintained biodiversity through corporate activities Environmental returns that exceed environmental impact SEKISUI Environmental Sustainability Index Rate of return to natural and social capital ー Maintain 100%
or more 		106％ ✓ Detail Maintain at 100%
or more		 Maintain at 100%
or more		 Maintain at 100%
or more		 Maintain at 100%
or more		 ✓ ✓ ✓ ✓ ✓ ✓
Products to Enhance Sustainability TOTAL Achieve a balance between economic and social value Doubling of the Group’s business by 2030 Net Sales of Products to Enhance Sustainability ー 960 billion yen 950.2 billion yen × Detail ー Over 1 trillion yen ー ー            
By major environmental issue Contribute to the promotion of resource recycling (particularly carbon) Realization of a recycling-based society Increase in sales of products that contribute to resource recycling 2020
55.3 billion yen		 1.6 times
(88.5 billion yen)		 99 billion yen ✓ Detail 1.65 times
(91.2 billion yen)		 1.7 times
(94 billion yen)		 Double or more (110.6 billion yen) All products            
Net Sales of products derived from non-fossil fuel sources and use of recycled materials 2019
3 billion yen		 38.0 billion yen 34.7 billion yen × Detail 39 billion yen 40.0 billion yen 100 billion yen ー            
Reduce environmental impact GHG Promote decarbonization zero GHG emissions The Paris Agreement 1.5°C target Realization of a decarbonized society GHG emission reduction rate FY2019 -26% -32.8% ✓ Detail -30% -33% -50% -100% ✓ ✓ ✓ ✓ ✓  
  Renewable energy ratio of purchased electricity ー 50% 49.5% × Detail 60% 70% 100% Total power consumption including co-generation 100% ✓ ✓ ✓ ✓ ✓  
  Fuel-source GHG emission reduction rate (including GHGs not arising from energy consumption) FY2019 -10% -15.9% ✓ Detail -10% -12% -11% -100% ✓ ✓ ✓ ✓ ✓  
Reduce energy usage volume Improve the efficiency of energy use in production and reduce energy costs Cost reductions above cost increases from purchasing renewable energy Reduction rate of energy consumption per unit of production FY2022 -1% ＋3.5% × Detail -2% -3% ー ー ✓     ✓    
Resource recycling Promote resource recycling (particularly carbon) Realization of a resource-recycling society Reduction rate of the amount of waste generated per unit of production FY2022 -1% +0.3% × Detail -2% -3% ー Achieve a circular economy     ✓   ✓  
Issue of marine plastics Recycling rate for waste plastic materials ー Japan: 61% (Overseas: Base acquisition) Japan: 60.7% × Detail Japan: 63%
(Overseas: Base +3%)		 Japan: 65%
(Overseas: Base +5%)		 100% 100% ✓ ✓   ✓    
Reduction of resource use in offices Reduction rate of copier paper use per unit of people FY2022 -1% -6.6% ✓ Detail -2% -3% ー Achieve a circular economy     ✓   ✓  
Reduction of waste generation at new construction sites Reduction rate of the amount of waste generated per building at new housing construction sites FY2022 -4% -5.2% ✓ Detail -8% -12% ー Achieve a circular economy           ✓
Water-related risk Minimize business impact due to water-related risks Enabling of sustainable operations Implementation of initiatives to minimize the business impact of water-related risks specific to five sites in Japan and Overseas ー Efforts to minimize business impact at individual business sites with large business impact Initiatives decided at all 5 locations ー Detail Efforts to minimize business impact at individual business sites with large business impactEfforts to minimize business impact at individual business sites with large business impact Minimum to the environment where water-related risks exist Minimum to the environment where water-related risks exist ✓     ✓    
Contribute to solving watershed-specific water issues Contributions to returns to natural capital
Maintain water resources No increase in water stress in watersheds Reduction rate of water intake volume at production sites which use large quantities of water FY2016 -10% over a 3-year period -8.5% ー Detail -10% over a 3-year period ー ー ✓          
No increase in the impact on watersheds Reduction rate of total COD volume of river discharge water at production sites with high COD emission volumes FY2016 -10% over a 3-year period -2.7% ー Detail -10% over a 3-year period ー ー ✓          
Ecosystem Ecosystem impact: Biodiversity conservation JBIB Land Use Score Card® evaluation points FY2022 +3 points over a 3-year period +1.5 points ー Detail +3 points over a 3-year period Promote ecosystem friendliness at all business sites Promote ecosystem friendliness at all business sites ✓ ✓        
Minimize risks of ecosystem degradation

FY2023 Results Against Environment-related KPIs

  • Climate change
    Rate of GHG reduction-32.8% (compared with FY2019)
  • Resource recycling
    Material recycling rate for waste plastics (Japan) 60.7%

Other Priority Item FY2023 Results

Expand and create markets for Products to Enhance Sustainability

In FY2023, 11 products and services were newly registered.
Specifically, the following is a list of products that contribute to the resolution of resource recycling and climate change issues (certain examples).

  • ・ PVC sashes:
    A product that contributes to the reduction of energy consumption in cold climates due to its thermal insulation and high airtight performance. PVC sashes are recovered after product use and applied as a raw material for other products.
  • ・ Standard film Recycling system of interlayer film for laminated glass:
    Inserted between the laminated glass of vehicle front windshields, this product improves safety by preventing shattering in the event of an accident. Established a mechanism to collect film scraps from BtoB customers for use as raw materials.

In response to the upswing in low-carbon and decarbonization demand, sales of products that contribute to the resolution of climate change issues have expanded, which in turn is contributing to higher overall sales of Products to Enhance Sustainability.

Quantification of the Contribution Effect on Solving Issues through Products

In fiscal 2023, we identified environmental values from products equivalent to 50% of Products to Enhance Sustainability sales.
As far as returns to social capital and value are concerned, we are undertaking economic value conversion using the impact-weighted accounting method.
We visualize the environmental and social value of our products and businesses (the degree to which they contribute to solving problems) and disclose this information to raise society’s awareness. Moving forward, we will also strengthen activities that can be fed back to our business.

Environmental Conservation

SDG Contribution Activities*
As far as such social contribution activities as environmental conservation and nurturing of the next generation are concerned, which are mainly conducted by business sites and employees, we recommend that employees change their stance and become more aware of the SDGs while continuing existing activities.
By considering which social issues to focus on and why we are working to solve social issues based on the SDGs, we can clarify the significance of our existing activities and undertake a review our activities with the expectation of further improving their effectiveness.

Integrated index SEKISUI Environment Sustainability Index

The SEKISUI Environment Sustainability Index measures the impact of the Group’s corporate activities on the environment (use of natural and social capital) and the degree of contribution to the environment (returns to natural and social capital) as a single index.
We are gradually expanding the scope of coverage to encompass not only the impact on and return of natural capital, but also on and of social capital.
The SEKISUI Environment Sustainability Index integrates the effects of 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, and environmental conservation. We established a method for undertaking preliminary calculations in fiscal 2013 and have employed this method since fiscal 2014. Since fiscal 2017, we have applied this index to monitor the progress of the Group's overall environmental management.
In our Environmental Medium-term Plan, which began in fiscal 2020, we have declared our intention to use the SEKISUI Environment Sustainability Index to evaluate not only the natural environment, but also the impact and contribution to the social environment, and to contribute to the return to natural and social capital.
In 2050, even as we expand our business scope, we will promote ESG management while maintaining a return of 100% or more on natural and social capital.

Calculation Results

SEKISUI Environment Sustainability Index calculations based on FY2023 results are as follows. Setting the use of natural and social capital (the impact on the natural and social environments) at 100, the return to natural and social capital (contributions to the natural and social environments) was 106%, confirming that the return to natural and social capital was maintained above 100%.
Trends in the rate of return are analyzed as follows.

  • 1.
    Use (impact) of natural and social capital
    A reduction in the impact on natural and social capital is considered to have been made through progress in the shift to renewable energy for purchased power.
  • 2.
    Returns to natural and social capital (contributions)
    Returns (contributions) from Products to Enhance Sustainability are steadily increasing.

Looking ahead, we will grow as a company and expand our business scope, while maintaining a rate of return to natural and social capital of more than 100%.
In 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, SEKISUI CHEMICAL Group believes that solving issues through products helps to improve the sustainability of the earth and society. We also recognize that improving returns to natural and social capital leads to an improvement in the sustainability of SEKISUI CHEMICAL Group and its products.

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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 WASEDA University, was employed for the calculations in stages (2) and (3).
The LCA database IDEA ver2.3 has been upgraded to ver3.1 in the calculation system MiLCA, which uses LIME2 to calculate the rate of return. We have been using the upgraded MiLCA ver3.1 since fiscal 2023. (MiLCA ver2.3 was used until fiscal 2022).
In MiLCA 3.1, the ascertained data shows that the environmental impact per unit amount is larger, especially in terms of the impact of chemical substances on ecosystems. Under the current Medium-term Management Plan we will place even more importance on the impact on biodiversity, and promote activities aimed at shifting from negative to positive aspects. We have determined that our approach is consistent with the direction MiLCA 3.1 upgrades We will reconfirm the status of current conditions by utilizing the updated calculation system and continue to confirm the progress of activities aimed at addressing environmental issues based on the rate of return from fiscal 2023.

  • Note: The impact of the change in MiLCA calculation system approach (upgrade) on the rates of return as verified based on fiscal 2022 data is as follows.
    Rate of return on natural and social capital of 127.3% (using MiLCA ver. 2.3) in fiscal 2022.
    Rate of return on natural and social capital of 100．1% (using MiLCA ver. 3.1) in fiscal 2022.
Indicator Calculation Method
SEKISUI Environment Sustainability Index SEKISUI Environment Sustainability Index = Group-wide amount of natural and social capital returned / Group-wide amount of natural and social capital used

Calculating the amount of natural and social capital used and the amount of natural and social capital returned
Employing LIME 2 (a damage calculation-based impact assessment method developed for use in Japan by Professor Norihiro Itsubo of WASEDA University) and covering all the four criteria for conservation defined by LIME 2, 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 and social 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.
  • ・
    Items included in the amount of natural and social capital used
    • Direct use:
      Use of land, greenhouse gases, amounts of emissions into the air of PRTR substances and air pollutants, the COD discharged into bodies of water
    • Indirect use:
      Purchased raw materials*1, energy use, water intake volume, amount of waste material emitted, amount of GHGs emitted indirectly in supply chains (Scope 3)
  • ・
    Items included in returns to natural and social capital
    Amount of contributions to reducing use of natural capital through Products to Enhance Sustainability, the amount of contribution from environmental conservation activities, environment-related donations, mega-solar (solar farms that produce over 1,000 kilowatts (1 megawatt) of energy each year) power generation output
    • *1
      The Group is reflecting the actual GHG emissions of its raw material suppliers with regard to four principal resins (PP, PE, PVC and PVA).

Scope of Calculation / Listing by category of calculation: Estimated calculations were conducted using the following assumed conditions:
  • ・Raw materials:
    Purchased raw materials covered; estimates incorporated into calculations
    Concerning housing, the calculation includes the constituent raw materials for one structure multiplied by the number of structures manufactured
  • ・Manufacturing / Emissions of harmful chemical substances:
    〈Japan〉 emissions of 1 t per year or more of substances covered under PRTR are included in the calculation. 〈Overseas〉 Not included
  • ・Manufacturing / Land maintenance:
    Domestic plants and research facilities were incorporated into the calculation using the area of the premises, generally considered in terms of the land used for buildings*2. The areas of the premises of overseas plants were estimated. The effects of land use are included in the calculation based on the 30-year period after the purchase of the land
    • *2
      Concerning land use, starting with FY2017, improvements to land quality in the JBIB Land Use Score Card® system promoted in Japan were deemed as reductions of the impact of land use, weighted accordingly, and included in the calculation.
  • ・Others:
    Capital goods in supply chains, other fuel- and energy-related activities, transport and shipping, waste, business trips, commuting by employees, leased assets (downstream), processing/use/disposal of sold products
    Business trips and commuting by employees: Covers consolidated numbers of employees and includes some estimation
    Use of sold products: Covers housing sold during the fiscal year, and included in the calculation with assumed energy use for 60 years into the future. We are also calculating the effect of reduction in energy used in residences built to net zero energy house (ZEH) specifications.
    Processing of sold products: Energy use by customers while processing our products anticipated to consume large amounts of energy was estimated and included in the calculation
    Disposal of sold products: Major raw materials for each fiscal year were covered and included in the calculation based on the assumption that they would be made into products and disposed of during that fiscal year
・Product contributions:
(1) The differences in contribution to the environment between the relevant products and previous technologies were evaluated qualitatively for each criterion, based on the contribution to the natural and social environments for each life-cycle (the five stages of procurement of raw materials, manufacturing, distribution, use/maintenance, disposal/recycling) in terms of CO2 reductions and energy savings, reductions in waste materials, resource savings, water-savings and the water cycle, preventing pollution, direct preservation of biodiversity, QOL improvements, and other factors. For factors for which a significant difference was estimated, data per product unit was investigated.
(2)Based on the results*3 of these investigations, a coefficient for calculating the impact on the environment for each series of data was multiplied by the data, yielding a calculation of the degree of contribution to the environment of each product unit.
(3)The sales amount for products in each fiscal year were multiplied by the results found in (2) to calculate the degree of contribution to the environment for each product, and the results were included in the calculation. Trial calculation was performed on the effects of products equivalent to around 51% of Products to Enhance Sustainability.
*3 Based on individual standards of the divisional companies
・Direct contribution / Contribution from activities reducing environmental impacts:
The effects on the environment relating to production for each fiscal year were compared to [the effects on the environment relating to manufacturing in FY2016 × (revenue in that fiscal year / revenue in FY2016)], and the difference was included in the calculation. There was a proportional relationship between revenue and the effects on the environment relating to manufacturing, based on the idea that the difference was the result of efforts undertaken in the Group’s activities.
・Direct contribution / Conservation of the natural environment:
The Group keeps track of the number of participants and the amount of time spent on each activity. In the case of planting cedar trees, a fixed coefficient of CO2 (1.1 t-CO2 / person-hour) was multiplied by the number of people and the amount of time spent and incorporated into the calculation. Regarding activities in cooperation with local communities which were promoted in Japan, because improving the sustainability of activities through local cooperation and making them conduct the activities on their own (autonomous) were made targets from FY2017, the Group’s ability to work toward this target was weighted against the growth axis and included in the calculation
・Direct contributions / donations:
The amount willing to pay for conservation was deemed equal to the amount of money calculated for damage caused and included in the calculation.
・Direct contribution / Mega-solar:
Amount of electricity generated included in the calculation as generated energy converted to a CO2 basis

Scope of Tabulation for Environmental Performance Data

  • Note: As far as the scope of environmental performance data aggregation is concerned, SEKISUI CHEMICAL’s main business sites (including all production sites) on a consolidated basis are subject to environmental reporting.

Environmental Accounting

We are working to reduce the environmental impact of our business activities while identifying the effects of costs incurred and investments undertaken.

SEKISUI CHEMICAL Group Refers to Public Guidelines and Adds Its Own

SEKISUI CHEMICAL Group employs environmental accounting to promote efficient environmental initiatives as a part of its ESG management endeavors and to fulfill its corporate reporting responsibility. In adopting environmental accounting, our goals are to reduce the Group’s environmental impact and to identify the costs incurred and investments undertaken to contribute to the environment. In the management strategy perspective, we position environment-related investments and expenses as capital costs. Environmental accounting helps to highlight the fact that managing capital costs and improving productivity will improve ROIC.

Performance Data
Summation period April 1, 2023 to March 31, 2024
Scope of summation Production sites, research facilities, housing sales company sites, and Corporate Headquarters departments in Japan.
Calculation Method Based on the Ministry of the Environment’s Environmental Accounting Guidelines 2005 Edition
Approach toward summation
  • Depreciation and amortization are excluded from environmental conservation costs because they overlap with investment costs.
  • Investment amounts are based on budget approvals during the summation period.
  • Expenditures and investments that contain other than environmental conservation activities are distributed pro-rata in 10% increments.
  • Disclosure categories have been revised, environmental conservation costs are subcategorized, and the economic effects of environmental conservation measures are limited to effects on an actual basis, excluding deemed effects from FY2020.
  • The environmental conservation effects of physical quantity are shown in environmental performance data disclosed in each chapter.

Environmental Conservation Costs

(Millions of yen)
Items FY2020 FY2021 FY2022 FY2023
Category Description of main activities Costs Investments Costs Investments Costs Investments Costs Investments
1) Costs within business areas (1) Pollution prevention costs a. Air 369 62 319 98 355 16 312 17
b. Water 130 77 85 68 110 198 93 197
c. Soil 0 7 0 4 0 7 0 2
d. Noise 12 1 1 0 2 0 2 0
e. Vibration 0 0 0 0 0 0 0 0
f. Odor 255 0 242 4 235 0 163 5
g. Ground 106 3 105 0 102 0 76 2
h. Others 304 8 307 29 315 5 211 5
Subtotal 1,176 157 1,058 202 1,118 226 856 227
(2) Countermeasures against global warming a. Global warming (including energy saving) 686 588 114 833 132 510 171 690
b. Ozone layer 100 18 6 33 6 4 4 39
c. Others 0 4 0 55 0 14 1 0
Subtotal 786 611 120 921 138 528 176 729
(3) Resource recycling costs a. Effective utilization of resources 63 17 6 31 10 12 6 46
b. Water conservation, utilization of rainwater, etc. 4 4 7 28 8 6 8 105
c. Waste volume lightening, reduction, recycling, etc. 176 93 177 76 180 362 140 141
d. Waste processing, disposal, etc. 6,293 4 6,477 106 4,878 1 4,775 2
e. Others 18 1 1 6 19 14 1 45
Subtotal 6,553 119 6,668 246 5,095 394 4,930 339
2) Upstream/downstream costs Cost increases due to recycling of products such as those manufactured and sold, greener purchasing, etc. 113 0 109 28 161 0 145 0
3) Administrative costs Environmental education, EMS certification, running costs for green action organization, information disclosure, etc. 2,385 12 2,206 1 1,624 2 1,929 2
4) Research & development costs Research and development on environmental conservation 3,740 313 15,009 813 16,128 760 6,528 8
5) Social activities costs Social contributions, etc. 112 98 78 0 128 0 201 0
6) Environmental damage costs Nature restoration, etc. 30 2 57 5 63 8 44 0
Total 14,896 1,311 25,306 2,216 24,455 1,918 14,809 1,306

Substantive Economic Effects of Environmental Conservation Measures

(Millions of yen)
Description of effects FY2020 FY2021 FY2022 FY2023 Remarks
Revenue (1) Profit on sales of valuable waste resources 176 139 116 126 Profit on sales of valuable waste resources from promotion of waste segregation and recycling
(2) Revenues from sale of electricity 402 334 348 337 Revenues from sale of electricity generated by megasolar facilities
Cost savings (3) Cost savings through energy-saving activities 1,311 256 420 803 Including savings through utilization of co-generation
(4) Cost savings through waste-reduction activities, etc. 502 463 522 284 Reductions through optimization, reuse, and zero emissions activities
Total 2,392 1,191 1,407 1,550  

Material Balance

Performance Data

SEKISUI CHEMICAL Group releases information on the resources and energy used in its business activities (input) and on the substances that have an environmental impact generated by those activities (output).

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Material balance (Japan and overseas total)
FY2023 Results

Setting Self-management Targets

SEKISUI CHEMICAL Group has set its own environmental management targets. This includes reducing emissions into the atmosphere and water, which are stricter than legal regulations. Each business site closely follows these internal targets. We aim to prevent environmental accidents before they occur by conducting internal environmental audits to uncover latent environmental risks.
In addition, we are developing comprehensive activities by sharing information on new legal and regulatory trends as well as incidents at other companies within the Group.
In fiscal 2023, there were no major violations of environmental laws and regulations related to such issues as the treatment of waste, water discharge, air emissions, and soil pollution. There were also no reports on incidences of administrative guidance.

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SEKISUI CHEMICAL Group’s Sustainability

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SEKISUI CHEMICAL Group’s Various Policies

Overview of SEKISUI CHEMICAL Group

External Evaluation

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Scope of the Sustainability Report 2024

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