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Materiality
Materiality
Accompanying the expansion of our overseas operations, we reviewed our materiality in August 2020 based on our policy of integrating SDGs and ESG initiatives into our corporate management.
Materiality Identification Process
We identified items of materiality by creating a list of material issues which society requires us to address and by referencing international guidelines such as the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) as well as items required by ESG research organizations. We then performed quantitative evaluations of each issue and verified their significance in terms of the degree of importance to stakeholders and the degree of importance to our businesses. We engaged external experts to gain objective viewpoints and held discussions with our partner companies around the world to identify material issues associated with our business model and the business environment. These issues were then designated as our materiality. In 2022, we reorganized the sustainability structure into a team structure with members from our key partner companies around the world and to work directly under the Directors, Representative Executive Officers & Co-Presidents (the Co-Presidents). Each Global Team directly reports actions involving materiality to the Co-Presidents*. We will apply our Group’s technological strengths and actively collaborate with external partners to address social issues. We will also contribute to achieving the Sustainable Development Goals (SDGs) adopted by the United Nations in 2015.
*Further information about ESG Management system is available here.
list
- We created a long list of 75 items that is our obligation to address based on international ESG standards and guidelines for disclosure and reporting derived from 11 ESG rating agencies and organizations. We then consolidated the list down to a preliminary list of 32 items.
questionnaire
- The newly-established ESG Committee met in April 2020 and deliberated on the materiality identification process. Also, we distributed a questionnaire to the 25 committee members and the staff of the ESG Promotion Department for their input on the 32 items in the preliminary list.
global risks
- To incorporate global risks, the discussions also included chemical sector risk scenarios based on information in the Vigeo EIRIS Controversy Risk Assessment and other reports.
- Peer companies in the global chemical sector and forward-thinking Japanese companies were also referred to.
discussion
- Based on stakeholder requests and the internally assessed weighting of importance, we identified six groups of items of materiality for business sustainability. During the process, we placed particular importance on discussion and agreement with overseas partner companies.
opinion
- We interviewed various stakeholders and Independent Directors to gather their opinions on the potential items of materiality and created the final proposal through internal discussion.
- We deliberated on the final proposal at the ESG Committee meeting in July 2020 and obtained final approval at the Board of Directors meeting in August.
Materiality map
Relevant SDGs
Materiality | Relevant SDGs | Explanation of Materiality |
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Climate Change | The impact of climate change on our daily lives is increasing each year. The Group is doing its part to mitigate the impact of climate change by reducing greenhouse gas emissions while minimizing the business risk posed by the changing climate conditions. | |
Resources and Environment | The sustainability of our business depends on the effective use of water, energy, and other resources and the prevention of environmental pollution. The Group applies measures in these areas throughout its product lifecycles. | |
Diversity & Inclusion | Respecting the people around us and embracing diverse values are essential for sustainable business growth. The Group respects human rights and emphasizes the importance of diversity in its employees and all individuals involved in our business operations. | |
Safe People and Operations | As a chemicals manufacturer, we are constantly assessing the potentially major risks to health and occupational hazards associated with handling chemical substances. We conduct capital investment and education to ensure the utmost safety and to minimize the risks to our employees and all people involved in our businesses. | |
Growth with Communities | We generate sustaining growth for our business investing in communities through our value chain, expanding our markets, strengthening our brand, and maintaining positive relations with local communities. | |
Innovation for a Sustainable Future | Today’s society is facing a growing number of problems that cannot be fully solved with methods used in the past. We are actively engaging in partnerships to enhance our ability to generate innovative solutions. |
Materiality, Risk, Opportunity, and ESG Agenda
Materiality | Risks | Opportunities | ESG Agenda |
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Climate Change |
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Resources and Environment |
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Diversity & Inclusion |
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Safe People and Operations |
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Growth with Communities |
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Innovation for a Sustainable Future |
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Progress & Further Plan of Materiality
Released March 16, 2022
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*1: Scope1 & 2; intensity basis
*2: Disclosed Scope 3 GHG emissions from our operations in Japan in the Integrated Report
*3: Life Cycle Assessment: A method of quantifying the environmental impacts across the entire life cycle of a product
*4: Our unique framework that integrates the sustainability perspective in product development