Addressing Biodiversity

Corporate activities of SEKISUI CHEMICAL Group are blessed by the fruits of nature derived from biodiversity, while negatively impacting the ecosystem. Recognizing this, we consider nature as a form of capital that has value, and will therefore realize returns on the impact of use through products and initiatives.

To contribute to the realization of an earth with maintained biodiversity, SEKISUI CHEMICAL Group engages in activities based on its Long-term Environmental Management Vision, SEKISUI Environment Sustainability Vision 2050^*1.
As stated in the SDGs, natural environment and social environment issues are interconnected, and in order to solve a single issue, we must remain conscious of multiple issues while working to find solutions.
Looking ahead, we intend to strengthen our partnerships with stakeholders and evolve activities conscious of the need to solve not only issues relating to the natural environment and social environments, but also contribute to realizing a return to social capital as well as natural capital^*2, through which we hope to achieve a nature positive earth.
To this end, we have drawn the following grand design of initiatives to be focused on by 2050

We envisioned and have promoted the following initiatives to address biodiversity

At the twice-yearly meetings of SEKISUI CHEMICAL Group’s Environmental Subcommittee, which has been established under the Sustainability Committee chaired by the president, SEKISUI CHEMICAL Group discusses and deliberates on the direction of initiatives and specific items for initiatives in regard to biodiversity and other environmental issues involving its corporate activities.
When new land is acquired, for example through large-scale land development, such as when constructing our own factories, or through M&As, we carry out environmental assessments of the impact that our business may have on the atmosphere, water areas, soil, etc. During these environmental impact assessments, we also conduct verification of any impact with regard to biodiversity.

Under its SEKISUI Environment Sustainability Vision 2050, the Group is working to realize an earth with maintained biodiversity. To that end, we are promoting activities that incorporate a net-positive approach toward ecosystems.
As previously mentioned, the Sekisui Environment Sustainability Index is used as an integrated indicator to confirm the degree of progress toward realizing the Group’s environmental vision, and is calculated as the rate of return to natural and social capital, which can be considered an assessment of the degree of impact on overall biodiversity.

As an effective approach to manufacturing that is geared toward solving social as well as environmental issues, SEKISUI CHEMICAL Group has recognized the importance and necessity of learning from nature’s wisdom since 2002. Based on this understanding, we established the nature-inspired manufacturing research support program to promote the development of biomimicry technology and have organized forums where researchers can share their results.

While basic science requires time for research and support, we believe that learning from nature’s wisdom has the potential to create fundamental innovations that differ from conventional energy-consuming technologies.
For researchers outside the Company, this program has encouraged the development of 294 technologies (cumulative total as of the end of March 2023). Amid efforts to the promote development based on this understanding, the following types of technologies and products have emerged.

To contribute to the eradication of deforestation as well as the sustainable use of timber resources, at SEKISUI CHEMICAL Group every effort is made to ensure that the timber used in products is logged in accordance with statutory and regulatory requirements, such as FSC-certified timber. In addition, the Group conducts investigations into commercial distribution with regard to the logging area, tree species and quantity of timber materials to ensure traceability. For recycled materials, we use timber- and wood-based materials that are already used in markets, as well as unused thinnings and branches.
In 2022, we newly raised the target of eliminating deforestation by 2030 and revised our Timber Procurement Policy^* for the purpose of achieving this goal. Moreover, we formulated the Sustainable Timber Procurement Guidelines to realize procurement in line with this policy. In addition to continuing to procure timber in a legal manner as a matter of course, we also began initiatives towards reducing the impact of deforestation on the human rights of indigenous peoples and the environment.

Having prepared habitats for local flora and fauna at 45 business sites (total site area 3,238,000 m2, total green space area 850,000 m²) in Japan, we are moving forward with efforts to improve the quality of green spaces at business sites. Our aim is to build ecosystem networks that connect local communities and business sites while invigorating local partnerships. Under the Environmental Medium-term Plan (2020-2022), we aimed to improve our score on the JBIB Land Use Score Card^® by three points compared with fiscal 2019.
Under the guidance of the environmental consulting company Regional Environmental Planning, Inc., we are engaged in a range of activities at each business site. For example, we are formulating and executing green space design and management plans in harmony with the surrounding natural environment, conducting sustainable maintenance and management that utilize natural cycles, eradicating invasive species and conserving rare species, and maintaining communication with stakeholders. As a result, in fiscal 2022 we improved our average score 4.9 points compared with fiscal 2019. Under the New Environmental Medium-term Plan (2023-2025), we aimed to improve by three points compared with fiscal 2022.

Many non-native species have invaded and become firmly established all around us. Some of them are plants that damage ecosystems, including those that deprive native species of their habitats, and others are plants that are harmful to people.
Based on this situation, SEKISUI CHEMICAL Group has been conducting surveys of exotic plants and precious plants in and around its business sites with the cooperation of experts at 24 factories and offices since fiscal 2018. After selecting those species (plants) to be eradicated and those to be conserved, we prepared countermeasure manuals that describe appropriate removal methods and timings and are using these to conduct on-site confirmation. We are also continuing to carry out eradication-related activities, such as receiving lectures on eradication from experts on an as-needed basis.
To create and maintain better environments within our business sites, it is desirable to focus on non-native species and species conservation (precious species) while managing green spaces that show that we give consideration to biodiversity.

Kyushu Sekisui Industry established a biotope in 2000 to conserve biodiversity and ecosystems, as well as has been regularly conducting biodiversity surveys since 2015, as well as pond bottom sediment/water quality management and ecological surveys of rare native species living there since 2017. The pond was recently drained in order to improve the bottom sediment/water quality and to conduct ecological surveys. New employees also participated on that day as part of their environmental education, and we also asked NHK (Japan Broadcasting Corporation) Saga Station for an interview to publicize our activities, which were featured on the evening news.
As for rare species, we confirmed a stable population of Parrot feather fish but were unable to catch any Rhodeus ocellatus, Hemigrammocypris rasborella, or Biwia zezera fish species, suggesting that their populations are very small and thus creating a stable habitat requires better conditions. The pond’s embankment has been damaged by an invasive species of carp and therefore requires periodic reconstruction work to prevent damage. Other maintenance issues include sunken ditches from age-related deterioration, and we will maintain the biotope, recognizing it as an important place for coexisting with nature. In addition, once a year we invite nearby elementary schools to the biotope to take part in nature observation events as a way to contribute to local communities.
Looking ahead, we aim to integrate the biotope with digital transformation (DX) using digital devices to observe it online.

Sekisui Medical’s Iwate Plant participated in the Site Coexisting with Nature Certification Demonstration Project administered by the Ministry of the Environment of Japan, and received a screening result "equivalent to certification as a trial result". As an outcome of biodiversity monitoring surveys conducted in fiscal 2022, 951 species of flora and fauna were found to be growing and inhabiting the area. Among these, the survey discovered 22 rare species, including Japanese serow (Special Protected Species) and Japanese Dormouse (Glirulus japonicas). By creating an environment that contributes to biodiversity through efforts to continuously plant deciduous broadleaf trees and to provide spawning grounds for Tohoku Salamanders and forest tree frogs, for example, we perform sustainable maintenance and management that leverages natural cycles. These efforts have been highly acclaimed by experts leading to the equivalent of accreditation.

The Sekisui Heim Group is working to create sustainable town schemes by maintaining and improving the asset value of the towns in its residential housing business.
ASAKA Lead Town (Asaka City, Saitama Prefecture) is the first phase of the sustainable town development project that brings together the Group's environmental contribution technologies to address not only environmental issues and strengthens resilience to natural disasters, but also social issues associated with the declining birthrate, aging population, and regional depopulation through 1) underground infrastructure, 2) energy-saving, above-ground housing, and 3) town operation and management. We aim to maintain and improve the town concept (safe, comfortable, convenient, sustainable towns) through platforms that update towns by incorporating residents' voices. In fiscal 2021, SEKISUI CHEMICAL received the Minister of Land, Infrastructure, Transport and Tourism Prize at the 30th “Global Environment Awards” in recognition of its efforts and achievements in developing sustainable communities that offer total support that extends to its own design, development, and management initiatives, with the award ceremony being held in April 2022.
Going forward, we plan to continue to expand our environmental and social contributions nationwide by developing problem-solving town development projects throughout Japan.

SEKISUI CHEMICAL Group conducts mangrove reforestation activities for the purpose of restoring and maintaining mangrove ecosystems in Thailand, and for contributing to the region. In fiscal 2022 we planted nearly 30,000 trees on 10 ha of tideland in the province of Nakhon Si Thammarat along with local fishermen. These activities also helped educate local children. As part of the most recent planting activity, we conducted species surveys of the large-scale mangrove planting conducted five years ago. As a result, we confirmed a steady increase in biomass, and were able to estimate the activity’s contribution to the gradual conversion of carbon to rich tropical peatland.