Climate Change Data

Environmental Metrics

ESG Focus Areas

• Compliance
• Responsible Care
• Corporate Citizenship
• Respect for Employee Individuality
• Low-carbon society
• Recycling
• Biodiversity

Environmental Achievements

• Reduced CO2 emissions in Japan by 49% compared to 2005 levels.
• Achieved a final disposal rate of 0.3% and a recycling rate of 98% of total industrial waste.
• Reduced releases of PRTR-specified substances by 92% and VOC emissions by 87% from 2000 levels.

Social Achievements

• Increased the number of women in managerial positions by a factor of 1.4 times compared to the end of March 2015.
• Implemented various measures to support employees in balancing work and family life, including parental leave and shortened working hours.
• Maintained a rate of employment of persons with disabilities exceeding the legal requirement (2.19%).

Governance Achievements

• Established the Asahi Kasei Group Code of Conduct.
• Established detailed standards for decision-making in its Decision-making and Approval Authority Regulations of the Group.
• Established the Risk Management & Compliance Committee and Responsible Care Committee.

Climate Goals & Targets

Environmental Challenges

• Heightened environmental awareness, changing global market frameworks, and the rapid advance of new technologies.
• Maintaining employee motivation in a rapidly changing operating environment.
• Need for growth while maintaining stability.

Mitigation Strategies

• Implementing the medium-term management initiative “Cs for Tomorrow 2018” to address societal challenges.
• Overhauling management teams to adapt to rapid changes and integrate businesses.
• Crafting a clear vision to motivate employees and encourage proactive problem-solving.

Supply Chain Management

Supplier Audits: 177 of 184 major suppliers responded to a CSR survey in 2016.

Responsible Procurement

• CSR survey of major suppliers
• Safety seminars with suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Development of lithium-ion battery separators for electric vehicles
• Development of fuel cell membranes

Reporting Standards

Frameworks Used: GRI G4, ISO 26000

Certifications: ISO 14001, ISO 9001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Hall ICs and Hall elements for air conditioner DC motors
• Ion-exchange membrane process for caustic soda production
• Synthetic rubber for fuel-efficient tires
• Lithium-ion battery separators
• Fuel cell membranes
• Hebel Haus™ products

Awards & Recognition

• City Human Rights Promotion Award (Asahi Kasei Ability Corp.)
• Platinum Kurumin certification

Environmental Metrics

ESG Focus Areas

• Climate change
• Recycling
• Biodiversity
• Operational safety
• Workplace safety, hygiene, and health
• Quality assurance
• Managing chemical substances
• Corporate Citizenship
• Respect for Employee Individuality
• Human rights
• Diversity
• Compliance

Environmental Achievements

• Reduced GHG emissions in Japan by 50% compared to 2005 levels (2.93 million tons CO2e in 2017)
• Achieved a final disposal rate of 0.2% and a recycling rate of 98.9% of total industrial waste generated.
• Reduced releases of PRTR-specified substances by 92% and VOC emissions by 87% from 2000 levels.

Social Achievements

• Increased number of women in managerial positions by a factor of 1.6 times compared to the end of March 2015.
• Employment of persons with disabilities exceeded the legal requirement at 2.19% (550 persons).
• Zero complaints regarding violations of human rights in 2017.
• Zero violations of labor standards in 2017.

Governance Achievements

• Strengthened corporate governance for increased corporate value.
• Established the Asahi Kasei Group Code of Conduct in April 2017.
• Implemented a Compliance Hotline with 47 reports and consultations in 2017.

Climate Goals & Targets

Environmental Challenges

• Supply chain emissions (Scope 3)
• Maintaining zero serious product safety incidents
• Preventing workplace accidents, particularly in the “caught in/between machinery” category
• Balancing work and family life for employees

Mitigation Strategies

• Implementing measures to further reduce total global GHG emissions toward a 2030 target.
• Strengthening quality assurance activities throughout the Asahi Kasei Group.
• Implementing OHSMS program, risk assessments, and a prevention-oriented PDCA system to prevent workplace accidents.
• Providing various forms of support for personnel to work with security and vitality, including parental leave, shortened working hours, and family care provisions.

Supply Chain Management

Supplier Audits: 81 major suppliers participated in a CSR survey in 2017.

Responsible Procurement

• Asahi Kasei Group Purchasing and Procurement Policy considers environmental and social aspects of suppliers.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (GRI Standards), ISO 26000, UN Global Compact

Certifications: ISO 14001, ISO 9001, OHSAS 18001, Platinum Kurumin certification

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Global warming conscious products: Hall ICs and Hall elements, ion-exchange membrane process, synthetic rubber for fuel-efficient tires.

Awards & Recognition

• JCIA Responsible Care Awards
• Shiga Biodiversity Award
• JCIA Safety Special Award
• GP Encouragement Prize

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Improved greenhouse gas emissions per unit of production by 27% compared to 2013
• Achieved a final disposal rate of 0.2% and a recycling rate of 99.0% of total industrial waste
• Reduced releases of PRTR-specified substances by 88% and VOC emissions by 87% from 2000

Social Achievements

• Increased the number of women in managerial positions
• Implemented work from home program and increased annual leave days
• Established a compliance hotline for reporting ethical concerns

Governance Achievements

• Established the Risk Management & Compliance Committee reporting directly to the President
• Regularly evaluates the effectiveness of the Board of Directors
• Established a system for transparent, fair, swift, and bold decision-making

Climate Goals & Targets

Environmental Challenges

• Climate change
• Reducing Scope 3 emissions
• Maintaining a safe and healthy workplace

Mitigation Strategies

• Set greenhouse gas reduction targets for 2030
• Developed a plan to reduce Scope 3 emissions from the supply chain
• Implemented an OHSMS program and various health management initiatives

Supply Chain Management

Supplier Audits: 185 major suppliers participated in CSR survey in 2018

Responsible Procurement

• Fair and transparent purchasing practices based on regulatory compliance and respect for the environment and human rights
• CSR questionnaires for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (GRI Standards), ISO 26000

Certifications: ISO 14001, ISO 9001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Environmental Contribution Products (e.g., LIB separators, S-SBR rubber, ion-exchange membranes)

Awards & Recognition

• JCIA Special Award for Safety Excellence (Tomobe Plant)

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced GHG emission intensity by 31% compared to 2013.
• Achieved zero tons of waste plastics consigned to landfill.
• Implemented the “Town Woods” program at all 41 domestic sites, earning 1934 MMP.

Social Achievements

• Increased the number of female managers by 257 (as of July 1, 2021).
• Maintained a 2.38% employment rate of persons with disabilities, exceeding the legal requirement.
• Reduced traffic accidents in fiscal 2020 to 36% of the number in fiscal 2015.

Governance Achievements

• Established a Sustainability Committee and a Global Environment Committee to discuss climate change and other ESG issues.
• Adopted a new policy for carbon neutrality with a target of 30% emissions reduction by 2030 and carbon neutrality by 2050.
• Established a Compliance Hotline for reporting ethical lapses.

Climate Goals & Targets

Environmental Challenges

• Achieving carbon neutrality is a major challenge, given the chemical-centric nature of the business.
• Supply chain disruptions due to climate events and other factors.
• Maintaining a safe workplace environment and preventing workplace accidents.

Mitigation Strategies

• Developed alternative sourcing strategies and implemented a BCP.
• Implemented a Life Saving Action (LSA) program to eradicate serious occupational accidents.
• Developed and commercialized industrial processes for decarbonization and expanded utilization of renewable energy.

Supply Chain Management

Supplier Audits: 187 suppliers responded to CSR Procurement Questionnaire (FY2020)

Responsible Procurement

• CSR Procurement Questionnaire
• Supplier Guidelines
• UN Global Compact’s CSR Procurement Assessment Sheet

Climate-Related Risks & Opportunities

Physical Risks

• Serious storm and flood damage
• Rise in temperature

Transition Risks

• Rise in cost due to stricter regulations
• Changes in materials needs

Opportunities

• Increased demand for disaster-resilient housing
• Increased demand for medicines and critical care
• Spread of electric vehicles
• Advent of a hydrogen society

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations

Certifications: ISO 14001, ISO 9001

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Environmental Contribution Products (e.g., LIB separators, ion-exchange membranes, Xyron™ resin, ASACLEAN™)

Awards & Recognition

• Minister of Economy, Trade and Industry's Intellectual Property Achievement Award
• Encouragement Award at the 17th LCA Japan Forum Awards
• Gold Medal in EcoVadis Sustainability Assessment
• Excellence Award at the 4th Infrastructure Maintenance Awards
• Japan Resilience Awards
• Japan Nature Conservation Awards
• Platinum Kurumin certification
• Logistics Environment Award Special Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Carbon Neutrality
• Biodiversity
• Human Rights
• Health & Productivity
• Corporate Governance
• Compliance
• Supply Chain Management
• Community Engagement

Environmental Achievements

• Reduced GHG emissions by approximately 21% compared to 2013 baseline (Scope 1 & 2)
• Achieved a final disposal rate of 0.09% for industrial waste (overall) and 0.02% for non-construction companies
• Implemented the “Town Woods” program at all 41 domestic sites, earning 3747 MMP points

Social Achievements

• Increased the number of female managers to 277 (as of July 1, 2022)
• Launched the “Papa and Pre-parent Seminar” to support male employees taking parental leave
• Maintained a 2.38% employment rate of persons with disabilities, exceeding the legal requirement

Governance Achievements

• Established the Nomination Advisory Committee and Remuneration Advisory Committee to enhance transparency in decision-making
• Implemented a Whistleblower System (compliance hotline) for reporting ethical lapses
• Established the Risk Management & Compliance Committee to monitor compliance and manage risks

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical risks like extreme weather and transition risks like regulatory changes)
• Supply chain disruptions
• Maintaining zero environmental accidents and serious environmental incidents
• Reducing industrial waste to zero landfill waste plastic
• Reducing the number of days employees take off work due to mental health issues and lifestyle-related diseases

Mitigation Strategies

• Developing alternative sourcing strategies
• Implementing a carbon neutrality policy with targets for GHG emission reduction
• Promoting the 3Rs (Reduce, Reuse, Recycle) of industrial waste
• Implementing the Life Saving Actions (LSA) program to eradicate serious occupational accidents
• Implementing health & productivity management initiatives to improve employee well-being

Supply Chain Management

Supplier Audits: 101 major suppliers responded to CSR procurement questionnaire (FY2021)

Responsible Procurement

• Supplier Guidelines promoting CSR procurement
• CSR procurement questionnaires
• On-site evaluations of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (storms, floods)
• Heatstroke

Transition Risks

• Stricter regulations (carbon pricing)
• Changes in materials needs
• Market shifts due to circular economy and new technologies

Opportunities

• Expansion of battery and hydrogen markets
• Development of disaster-resilient housing
• Development of decarbonized products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations

Certifications: ISO 14001, OHSMS

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmental Contribution Products (e.g., LIB separators, ion-exchange membranes, lightweight resins)

Awards & Recognition

• FTSE4Good Index Series
• FTSE Blossom Japan Index
• MSCI Japan ESG Select Leaders Index
• MSCI Japan Empowering Women Index
• S&P/JPX Carbon Efficient Index
• DBJ Environmentally Rated Loan Program (highest rating)
• Minister of Economy, Trade and Industry's Intellectual Property Achievement Award
• 17th LCA Japan Forum Awards (Encouragement Award)
• EcoVadis Gold Medal (Kawasaki Works and Asahi Kasei Finechem)
• 4th Infrastructure Maintenance Awards (Excellence Award)
• Japan Resilience Awards (Grand Prize and Excellence Award)
• 30th Global Environment Award (Fujisankei Group Prize)
• Japan Nature Conservation Awards (Grand Prize)
• Platinum Kurumin certification
• 22nd Logistics Environment Award (Special Award)