Foundation Underpinning ESG Management

To build relationships of trust with its five stakeholders─customers, shareholders, employees, business partners as well as local communities and the environment─SEKISUI CHEMICAL Group considers that it is important to improve corporate value through constructive dialogue.
Positioning its stakeholders as partners in improving corporate value, having constructive dialogue with them, assessing their expectations and requests as well as solving social issues together with them, leads to great opportunities for SEKISUI CHEMICAL Group.
We will create a relationship of mutual prosperity with our stakeholders while continuing to promote sustainable growth.
In fiscal 2021, the ESG Management Department, which falls under the purview of the Director and Senior Managing Executive Officer (Head of the ESG Management Department), took on the role of promoting constructive dialogue with all stakeholders. The various assessments and opinions of all stakeholders are reported to the Sustainability Committee, which is chaired by the Company president and made up of directors, and the Company strives to adequately reflect these views in its activities.
There were no major concerns voiced by stakeholders through any of the engagements in fiscal 2021.In addition, in order to steadily practice the active disclosure of information in a timely and appropriate manner throughout the Group as a whole, we formulated the Corporate Information Disclosure Regulations, which specify the content and system of disclosure, guided by the Principle of Corporate Information Disclosure and are disclosing information in line with our IR (disclosure) policy.

In fiscal 2021, we worked to promote awareness our Long-term Vision, Vision 2030, and ESG management, the key to realizing this Long-term Vision. To this end, the president and senior managing executive officer held Vision Caravan 2021 and a Live Panel Discussion: Power of SEKISUI, where the president and senior managing executive officer spoke with all Group employees in Japan and overseas.
In the past, management identified opportunities to engage in direct dialogue with employees. In similar fashion to fiscal 2020, however, these opportunities were postponed in fiscal 2021 due to the impact of COVID-19. Instead, 10 online Vision Caravan meetings were held in Japan and two online panel discussion meetings overseas (North America, Europe, East Asia, ASEAN, India, and Australia).
During these events for employees, the president and senior managing executive officer directly outlined their personal thoughts on how to realize Vision 2030 while also explaining the Group’s ESG management. In response, employees discussed among themselves and deepened their understanding toward how they should approach each business activity in order to realize Vision 2030. Taking into consideration a variety of factors, employees also looked into how they can link individual operations to the Group’s ESG management.
In response to questions and presentations that arise from deliberations among employees, the president and senior managing executive officer provide comments and feedback, while promoting lively interactive dialogue.

SEKISUI CHEMICAL Group believes it is extremely important to engage in constructive dialogue with shareholders and investors in order to achieve sustainable growth and enhance corporate value over the medium to long term.
We therefore have put in place Active Engagement Between Investors and Management as one of our key issues, while the president and director in charge of the Business Strategy Department are taking the lead in proactively holding quarterly financial results briefings and direct dialogues with shareholders and institutional investors to leverage our management strategy to enhance corporate value. During fiscal 2021, we held 82 engagements.
We are strengthening information dissemination on our website with an awareness of fair disclosure while striving to reflect as much as possible the opinions and questions received through dialogue with shareholders and investors in the Integrated Report and other IR materials. In December 2021, we held an ESG Management Briefing for institutional investors and analysts to promote understanding of our ESG management initiatives aimed at ensuring SEKISUI CHEMICAL Group’s sustainable growth. In addition, we made this briefing available on our website.
In recent years, interest in ESG investment has been growing globally, and ratings agencies are proactively undertaking surveys. SEKISUI CHEMICAL Group compiles and publishes its Sustainability Report based on rating agency questionnaires and third-party reviews, as well as referencing various report-drafting guidelines including GRI standards and considering the importance of the report to society and SEKISUI CHEMICAL Group.

We are promoting a variety of initiatives to deepen the understanding and penetration of various issues including SEKISUI CHEMICAL Group’s approach to ESG management.
In order to deepen awareness and understanding toward the Long-term Vision, Vision 2030, and ESG management among employees, SEKISUI CHEMICAL Group in fiscal 2021 has created a website dedicated to this vision and conducts My Vision employee interviews, in which employees in Japan and overseas talk about their commitment to the Long-term Vision. In addition, we created an ESG Management Conceptual Diagram and are promoting awareness and education of the overall picture of ESG management and how it is connected to individual operations and initiatives on our intranet.
Furthermore, SEKISUI CHEMICAL Group implements CSR training for new employees, newly appointed managers, and all subsidiary company employees based on their position.
Using a top-down approach, we also carried out training sessions for line leaders at all Group companies in fiscal 2021 to ensure that the Long-term Vision was thoroughly understood and incorporated into each business and their operations. Work site workshops were held at which each of these line leaders expressed their own vision for their workplaces 10 years from now and employees considered the kind of workers they want to become based on these visions.
Over and above the aforementioned, the following communication tools help promote increased awareness of the Group’s ESG management among employees.

These communication tools and ESG-related materials are freely available for employees to download from the intranet, and are also distributed to all employees, regardless of whether they are regular or non-regular staff, on an as needed basis, for example when employees join the Company or when implementing ESG-related educational programs.
In the US and Europe, regional headquarters distribute ESG-related information to employees of each Group company.
In Europe, information is posted on the intranet once a month, while information in the US is distributed via the News Wave booklet. In addition, we regularly hold Lunch & Learn, an online event to showcase various initiatives of each company and exchange opinions.

SEKISUI CHEMICAL Group calculates distribution status based on financial statements by stakeholder, using GRI and other standards as a reference.