Realizing Resource Recycling

Basic Concept

Working to realize a circular economy and establish a resource recycling system

SEKISUI CHEMICAL Group aims to realize a circular economy and a sustainable society in 2050. To achieve this long-term goal, we established a resource recycling policy and strategy in fiscal 2020.
In partnership with our supply chain, we minimize the consumption of virgin raw materials derived from fossil fuels. In addition, we are promoting recycling of resources through material circulation, aiming for a circular economy throughout our businesses. In order to achieve, we are intensifying our initiatives related to the following three points as our Group policy.

Group Policy

  • (1)
    Promote innovations that contribute to resource recycling
  • (2)
    Expand the use of non-fossil fuel-based materials and recycled materials in our business operations
  • (3)
    Maximize resource recovery during the entire product life cycle
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Promoting Efforts Based on the Resource Recycling Policy

For Vision 2030, SEKISUI CHEMICAL Group will strategically expand its businesses in four domains and double sales volume through solving social issues, aiming to achieve a sustainable society and corporate growth. In these business domains, we believe plastics will continue to be an important material. Up until now, in the production process, we have continually made efforts year after year to reduce the amount of waste generated, using waste per unit of production as an indicator for these efforts. In addition, we have carried out for example internal recycling to reuse wood scraps and other waste materials generated and implemented processing for reuse of resources including energy when disposing of materials as waste.
Under our resource recycling policy released in fiscal 2021, we will expand the ratio of plastic materials we use comprised of biomass plastics and other recycled materials which are not derived from fossil fuels. Regarding our production processes, we will promote internal recycling more than ever before, intensifying initiatives to minimize the waste products emitted from our construction projects. In addition, in both the use and recovery stages, we will work on our product design and supply chain to ensure products can be disposed of with thorough sorting and separation. In this way, we will promote initiatives to maximize reuse of material resources through mechanical recycle, chemical recycle, and other recycling methods. Based on the results achieved ahead of schedule through initiatives undertaken up to fiscal 2022, we have reviewed and reset milestones for fiscal 2025. From fiscal 2023, we will accelerate our efforts to achieve the revised milestones.
Within these life cycles, we believe that innovation at the product design stage is important for driving the promotion of resource circulation. By designing new products and revising the various processes for existing products, we are promoting initiatives for innovation that will accelerate resource circulation.

Road Map for Long-term Goal Achievement

  2020~2022 By 2025 By 2030
Business strategy Net sales of products to enhance sustainability that contribute to resource circulation (Base year: 2020)
1.1 times 1.7 times 2 times or more
Raw material resource conversion Net sales of products not derived from fossil fuels and using recycled materials 3 billion yen 40 billion yen 100 billion yen
Recycling waste products Rates for recycling waste plastic into new materials Analyze current conditions and set baselines 2 times 100%

Addressing Plastic Waste Issues

In recent years, plastic waste as typified by marine plastic waste has emerged as a significant environmental issue. The Group does not engage in the manufacture and sale of primary microplastics where use presupposes dissolution. However, we do recognize that plastic processed products and plastic materials contained in products that are used or discarded after use of the sold products may deteriorate in the natural environment and become microscopic if not properly treated.

  • 1.
    Employee education
    In both the products we produce and our manufacturing processes, we must correctly recognize these issues, and develop human resources with considerable ability to contribute to solving social issues. To this end, we engage in employee education while promoting environmental and social contribution activities.
  • 2.
    Contributing to the transformation of society
    To ensure the proper use of plastic, SEKISUI CHEMICAL Group recognizes the importance of building social systems while promoting a shift in the awareness of each individual employee and undertaking education and training. The Group is therefore engaged in various collaborations between industry, government, and academia.
    For example, in regard to the issue of marine plastics, SEKISUI CHEMICAL Group participates in the Clean Ocean Materials Alliance (CLOMA), a collaboration initiative between companies organized by the Ministry of Economy, Trade and Industry. For a fundamental solution, we are working on the common issues necessary for the social implementation of resource recycling schemes with the aim of realizing a circular economy.
  • 3.
    Creating and expanding the use of products, technologies, and services that contribute to the realization of a recycling-based society and a circular economy
    SEKISUI CHEMICAL Group has developed a technology to convert combustible waste into gas and then convert that gas to ethanol, which is the raw material for plastics, by means of a microbial catalyst. Currently, a one-tenth commercial scale (processing capacity of approximately 20 tons/day) demonstration plant has been constructed in Kuji City, Iwate Prefecture, and has been in operation since this spring, for practical application of the technology in the future.
  • 4.
    Promotion of recycling back into materials
    With regard to the waste generated by its production businesses, SEKISUI CHEMICAL Group has been exchanging manifests with waste contractors, and disposal has been undertaken in a proper manner. Going forward, we will continue to endeavor to improve the rate of recycling back into materials after having undertaken proper treatment.

Resource circulation

Aim: Promotion of resource reuse

Indicator 1. Waste generated per unit of production

Current Medium-term Management Plan (2020-2022) Targets
Waste generated per unit of production -1% over a 3-year period  Fiscal 2022 Result -1.7% (compared with fiscal 2019)
Next Medium-term Management Plan (2023-2025) Target
Waste generated per unit of production -3% (compared with fiscal 2022)
FY2030 Target ー
FY2050 Target Achieve a circular economy

Indicator 2. Recycling rate for waste plastic materials

Next Medium-term Management Plan (2023-2025) Target Japan 65%  Overseas Baseline in fiscal 2023 + 5%
Fiscal 2030 Target 100%

Indicator 3. Copier paper use per unit of production

Current Medium-term Management Plan (2020-2022) Target -3%  Fiscal 2022 Result -39% (compared with fiscal 2019)
Next Medium-term Management Plan (2023-2025) Target -3% (compared with fiscal 2022)
FY2030 Target ー
FY2050 Target Achieve a circular economy

Indicator 4. Amount of waste generated per building at new housing construction sites

Current Medium-term Management Plan (2020-2022) Target -6%  Fiscal 2022 Result -8.9% (compared with fiscal 2019)
Next Medium-term Management Plan (2023-2025) Target -12% (compared with fiscal 2022)
FY2030 Target ー
FY2050 Target Achieve a circular economy

Major Initiatives

Waste plastic initiatives

Promoting Material Recycling

SEKISUI CHEMICAL Group revised our definition of material recycling and has worked to identify the current situation under this new definition.
Our first step has been to maximize use of material recycling through existing technologies. Along with advancing a shift to reuse for our own raw materials, we are selecting approaches to disposal that prioritize material recycling.
In regard to waste that is difficult to manage using material recycling, we are working to establish new disposal methods.

Promoting Packaging Material Reductions

SEKISUI CHEMICAL Group has long engaged in efforts to reduce packaging materials, introduce reusable boxes*, and eliminate packaging materials wherever possible, among other initiatives.
Our proactive efforts to reduce packaging since the early 2000s have enabled us to achieve significant results. We will continue these efforts in the future, taking further steps to reduce packaging waste.

  • Boxes that can be used multiple times to ship materials, parts, and products between locations.

Promoting Construction Material Recycling

The housing industry is engaged in the efficient use and recycling of construction materials throughout. As a member of this industry, SEKISUI CHEMICAL Group is reducing the amount of construction waste produced when building houses and promoting recycling.

Converting External Wall Panel Scrap into Raw Materials for Products

Sekisui Board Co., Ltd. Gunma and Mizukuchi business sites, which produce Sekisui Heim external wall panels, generate scrap during their production processes. Along with making efforts to reduce the scraps produced whenever possible, these sites are moving forward with in-house material recycling for any scraps that are ultimately generated.
Specifically, the scraps generated during the production of products from the completed external walls are crushed and sorted, after which the extracted wood chips and cement are used as recycled raw materials.

Contribution to Resource Recycling through Business

Without realizing a circular economy in 2050, there can be no decarbonized society. Based on its resource recycling strategy and roadmap, SEKISUI CHEMICAL Group is shifting to the use of non-fossil fuel sourced, recyclable, and related materials with respect to its plastic materials while reviewing its product design to facilitate recycling parts in a manner that contributes to the resource recycling of existing products. In doing so, we are promoting the creation and market expansion of Products to Enhance Sustainability in a bid to accelerate our contribution through our businesses.

[Examples of Products That Contribute to Resource Recycling]

  • <Housing>
    Remodeling menus to extend the life of products and services when reusing homes
    • Examples)
      Be-Heim, a service that allows a customer to pass on a home to another customer and continue to live in it with peace of mind.
  • <Building & Civil Engineering>
    Products that use recycled plastic as a raw material
    • Examples)
      Products that enable the temporary storage of rainwater during periods of torrential rain (rainwater storage material Cross-Wave)
      Pipes with foamed cores made from recycled materials (3-layer pipe)
  • <Mobility>
    Buy-back system to take back edge trim from customers for reuse as raw materials (SEKISUI KYDEX product)

[Initiatives Undertaken in Collaboration with Other Companies]

Initiatives for the social implementation of BR technologies
We recognize the need to collaborate with companies and organizations that are active across each of the life cycle processes in order to realize product resource recycling.
SEKISUI CHEMICAL Group has rolled out a technology that converts combustible waste into ethanol using a microbial catalyst and gas fermentation process jointly developed with U.S.-based venture company LanzaTech, Inc. In order to validate the viability and commercial application of this chemical recycling technology, which is essential to resource recycling, SEKISUI CHEMICAL Co., Ltd, INCJ, Ltd., and SEKISUI BIO REFINERY Co., Ltd. completed construction of a demonstration plant approximately 1/10th the size of a commercial plant in Kuji City, Iwate Prefecture in April 2022. Plans are in place for the ethanol produced at the plant to be recycled as a raw material for plastics in collaboration with Sumitomo Chemical Co., Ltd. which is already underway.

Initiative Collaboration

As far as the issue of climate change is concerned, we are collaborating with various entities, including other companies and organizations in a bid to achieve our long-term goals. Through collaboration, we will be able to expand our contributions and better help find solutions, raising the potential to achieve milestones ahead of schedule. SEKISUI CHEMICAL Group participates and registers with initiatives, forums, and other organizations after confirming that such key parameters as their founding principles, direction of efforts, and goals are consistent with the Group. Our continued participation is determined on an annual basis to ensure that there are no discrepancies in the direction in which we are heading. In the event that the direction differs, steps will be taken to withdraw from the initiative, forum, or other organization.

CLOMA (Japan Clean Ocean Material Alliance)

  • Organizer .........................
    Ministry of Economy, Trade and Industry, Ministry of the Environment, and Ministry of Agriculture, Forestry and Fisheries
  • Significance/objectives ...
    To solve the issue of marine plastic waste, which is a global environmental issue
  • Activities ..........................
    Aiming for the more sustainable use of plastic products, and the development, introduction and popularization of innovative substitutes that will lead to a reduction of plastic waste
  • Our Company’s role ........
    The Company holds the chairmanship of Working Group 3 (WG3), one of five key action working groups that promote activities aimed at plastic recycling through corporate collaboration. As such, the working group has as its themes the technological establishment and social implementation of chemical recycling as well as the promotion of activities to select and clear issues in the promotion of related companies

Japan Partnership for Circular Economy (J4CE)

  • Organizer .........................
    Ministry of the Environment, Ministry of Economy, Trade and Industry and Keidanren (Japan Business Federation)
  • Significance/objectives ...
    Aiming to further foster understanding and promote efforts by a wide range of parties responsible, including domestic companies, as the trend toward a circular economy accelerates on a worldwide basis.
  • Activities ..........................
    Introduction of case studies through case study brochures, dissemination of information for the general public, and support for inter-company collaboration
  • Our Company’s role ........
    To accelerate the creation of new circulation businesses and social implementation by disseminating case studies and providing feedback on in-house technologies and measures by assessing the latest information

J-CEP (Japan Circular Economy Partnership)

  • Significance/objectives ...
    Regarding everything as a resource, creating a society around things, information and feelings by relationship design.
  • Activities ..........................
    Engage in 1) The optimal circulation of resources in Japan, and 2) The creation of businesses that contribute to the realization of the sustainable society
  • Our Company’s role ........
    To contribute to the realization of a circular economy by disseminating case studies and providing technical cooperation as a member of a consortium of companies
Performance Data

Waste Generated by Production Sites

  • Note 1:
    Some past figures have been revised due to improvements in calculation precision.
  • Note 2:
    From fiscal 2019, Medical Business results have been collated separately following its independence from the HPP Company and the presentation of Headquarters results reclassified as Other.
  • Note 3:
    In line with a change in the control of certain businesses in the UIEP and HPP companies implemented from October 2022, the data of both companies for fiscal 2022 is collated as if the change in control had been initiated from the beginning of fiscal 2022.
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  • Waste Generated by Production Sites, per Unit of Production (Index) / Japan

  • Waste Generated by Production Sites, per Unit of Production (Index) / Overseas

  • Note:
    Amount of waste generated: Only focusing on waste responsible by the production site is considered.
    Prototypes and inventory disposal due to the responsibility of the Divisional Companies are not included.

Production Site Waste Generation and Disposal / Japan and Overseas

  Total Waste Recycled Waste Unrecycled Waste
FY2018 76,249 65,525 10,724
FY2019 70,947 61,928 9,020
FY2020 67,555 58,435 9,120
FY2021 68,939 63,243 5,696
FY2022 71,254 63,176 8,078
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Fiscal 2022 Annual Production Site Waste Generation and Disposal / Japan and Overseas

  • Note:
    Change over previous year is in ( ) and proportion of total waste generation is in [ ].
  • 11-69
  • 11-70
  • Breakdown of Waste Generated at Production Sites / Japan

  • Breakdown of Waste Generated at Production Sites / Overseas

Index Calculation Method
Generated Waste Amount Amount of waste generated = Amount of waste collection outsourced + Amount recycled (incinerated waste to energy + recycled back to materials + recyclable waste sold) + Amount incinerated in-house; the items below are excluded:
Waste generated by demolition of customers’ old houses, remains of construction work at our sites, disposal of machinery, office equipment, etc., medical waste from medical treatment in inhouse clinics
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Amount of Hazardous Waste Generated / Recycling rate (Japan and Overseas) Fiscal 2022

Index Calculation Method
Amount of Hazardous Waste Generated and Recycling Rate Recycling rate = Amount of recycled waste / Amount of hazardous waste generated
Hazardous substance: Oil waste, acidic waste,
alkaline waste Recycling: Material recycling

Waste Generated on Construction Sites of New Housing

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Amount of Waste Generated on Construction Sites of New Housing (per Building) / Japan

Index Calculation Method
Amount of Waste Generated on Construction Sites of New Housing Amount of waste generated on construction sites of new housing = Amount of waste generated during construction of outer walls (at factory) + Amount of waste generated during assembly (at factory) + Amount of waste generated at construction site of new housing
Amount of waste generated per building during construction of new housing = Total amount of waste generated on construction sites of new housing / Number of new houses sold
Scope: Housing business in Japan

Waste Generated in Offices

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Amount of Copy Paper Used at Offices per Person (Index)

  • Note:
    Some past figures have been revised due to improvements in precision.
Indicator Calculation Method
Amount of Copy Paper Used at Offices per Unit of Output Amount of Copy Paper Used at Offices per Unit of Output = Amount of Copy Paper Used at Offices / Office Personnel

Disclosure of the Recycling Status of Waste Plastics in accordance with the Law Concerning the Promotion of Resource Recycling of Plastics.
(Status of Fiscal 2022 Emissions and Recycling)

  Disclosure according to the Act on Promotion of Resource Circulation for Plastics Recycling as the Management Indicator for SEKISUI CHEMICAL Group
(including waste sold as raw materials)
  Waste emissions (ton) Rate of recycling Rate of thermal recycling Rate of recycling (broad) Waste emissions (ton) Rate of recycling Rate of thermal recycling Rate of recycling (broad)
Sekisui Chemical Co., Ltd. 4,487 9.5% 83.4% 92.9% 9,995 58.4% 37.5% 95.8%
Hokkaido Sekisui Heim Industry Co., Ltd. 48 0.0% 100.0% 100.0% 48 0.0% 100.0% 100.0%
Tohoku Sekisui Heim Industry Co., Ltd. 21 0.0% 100.0% 100.0% 28 24.4% 75.6% 100.0%
Sekisui Heim Industry Co., Ltd. 358 2.5% 97.5% 100.0% 486 17.0% 83.0% 100.0%
Chushikoku Sekisui Heim Industry Co., Ltd. 80 0.0% 100.0% 100.0% 84 5.4% 94.6% 100.0%
Kyushu Sekisui Heim Industry Co., Ltd. 75 0.0% 100.0% 100.0% 75 0.0% 100.0% 100.0%
Sekisui Board Co., Ltd. 67 0.0% 100.0% 100.0% 67 0.0% 100.0% 100.0%
Higashinihon Sekisui Industry Co., Ltd. 2 0.0% 100.0% 100.0% 10 84.5% 15.5% 100.0%
Nishinihon Sekisui Industry Co., Ltd. 153 0.0% 100.0% 100.0% 157 2.2% 97.8% 100.0%
Sekisui Chemical Hokkaido Co., Ltd. 277 68.1% 31.9% 100.0% 370 76.0% 24.0% 100.0%
Chiba Sekisui Industry Co., Ltd. 128 16.7% 68.9% 85.6% 166 36.0% 52.9% 88.9%
Toto Sekisui Co., Ltd. 284 0.0% 100.0% 100.0% 758 62.5% 37.5% 100.0%
Yamanashi Sekisui Co., Ltd. 115 78.7% 21.3% 100.0% 389 93.7% 6.3% 100.0%
Nara Sekisui Co., Ltd. 247 1.0% 6.8% 7.8% 266 8.0% 6.3% 14.3%
Shikoku Sekisui Co., Ltd. 300 0.0% 95.0% 95.0% 685 56.3% 41.6% 97.8%
Kyushu Sekisui Industry Co., Ltd. 96 65.0% 35.0% 100.0% 840 96.0% 4.0% 100.0%
Sekisui Techno Molding Co., Ltd. 73 3.0% 53.3% 56.3% 469 78.8% 14.5% 93.2%
Sekisui Fuller Company, Ltd. 94 0.0% 75.9% 75.9% 136 30.8% 52.6% 83.3%
SEKISUI MEDICAL CO., LTD. 66 0.0% 98.6% 98.6% 66 0.0% 98.6% 98.6%
Sekisui Nano Coat Technology Co., Ltd. 79 0.0% 96.2% 96.2% 79 0.0% 96.2% 96.2%
Tokuyama Sekisui Industry Co., Ltd. 252 0.0% 55.6% 55.6% 427 41.0% 32.8% 73.8%
Sekisui Polymatech Co., Ltd. 230 0.0% 98.8% 98.8% 230 0.0% 98.8% 98.8%
Sekisui SoflanWiz Co., Ltd. 70 0.0% 83.4% 83.4% 70 0.0% 83.4% 83.4%
Sekisui Seikei, Ltd. 188 15.3% 84.7% 100.0% 1,201 86.7% 13.3% 100.0%
Sekisui LB Tec Co., Ltd. 100 8.9% 0.0% 8.9% 100 8.9% 0.0% 8.9%
Research Laboratory of Plastics Technology Co., Ltd. 7 0.0% 100.0% 100.0% 7 0.0% 100.0% 100.0%
Group Total 7,897 10.7% 78.5% 89.2% 17,208 57.9% 36.5% 94.4%
  • Note:
    Rate of recycling: Material recycling and Chemical recycling
    Rate of recycling (broad): Material recycling, chemical recycling, and thermal recycling