Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economy
• Society
• Environment

Environmental Achievements

• Reduced CO2 emissions by approximately 100,000 tons annually through the use of biomass fuel in a 216 MW pulverized coal thermal power station.
• Reduced CO2 emissions by an estimated 59,000 tons annually at the Isa Cement factory through the continued use of wood biomass as boiler fuel.
• Reduced CO2 emissions by approximately 7,000 tons annually through process changes in the production of the Heliofresh fragrance.
• Reduced energy consumption per unit of production.

Social Achievements

• Implemented a leave system for voluntary activities, allowing employees to use up to seven days annually for community contributions.
• Expanded employment opportunities for disabled people, meeting the statutory ratio in fiscal 2005.
• Introduced a reemployment scheme for retired workers in fiscal 2006.
• Implemented various health initiatives, including the “Meet and Greet” campaign, designated smoking area program, and mental health lectures.

Governance Achievements

• Appointed outside corporate directors to the Board of Directors in fiscal 2005.
• Appointed an outside corporate director as Chairman of the Board of Directors.
• Established subsidiary committees responsible for director nomination, evaluation, and compensation.
• Strengthened compliance systems, including the establishment of a notification system (UBE C-Line).

Climate Goals & Targets

Environmental Challenges

• Persistently high raw material and fuel prices.
• Rising interest rates.
• The state of the U.S. economy.
• Bid rigging incident involving UBE Machinery Inc.

Mitigation Strategies

• Continued efforts to achieve performance targets in readiness for a new surge of growth under the next Medium-term Management Plan.
• Strengthening corporate governance systems.
• Intensifying compliance assurance activities to prevent recurrences of bid rigging incidents.
• Implementing energy saving measures and diversifying fuel sources to mitigate high fuel prices.

Supply Chain Management

Responsible Procurement

• Green purchasing initiatives

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Heliofresh fragrance (synthesized from catechol)
• Polyurethane material from recycled waste
• 1,6-Hexanediol (synthetic leather)
• Polycarbonatediol (polycarbonate resins)
• Dimethylcarbonate (DMC)
• Separation membrane modules
• Aqua Solution photo-catalytic fiber modules
• Hydrogen peroxide
• Slow-release fertilizer
• Microwave-safe food wrapping film
• Yasashii Kabe interior material
• Calbreed SII slaked lime
• F Mark-certified construction materials
• Self-leveling materials
• Green Thumb soil improvement material
• Eco network floor
• Air floating conveyor
• All-electric injection molding machine
• Aluminum wheels
• Blast furnace cement
• Fly ash cement
• Sorbalit slaked lime
• U-Stabilizer and Green Lime
• Clear Water and Cal-sun Marine
• Woody biomass gasification and power generation facility
• Printed circuit boards with lead-free solder
• Fuel conditioner
• EUP two-stage pressurized gasification process
• Z-Sand artificial sand
• Incinerator ash recycling technology
• Organic recycling
• Billets from recycled ferrous resources

Awards & Recognition

• 38th JCIA General Excellence Award (functional electrolyte)
• 2005 Resource Recycling Technology/System Award (Z-Sand)
• 15th Fujisankei Global Environment Awards, Fujisankei Group Prize (waste reuse at Kanda Cement factory)
• Global 100 Eco-Tech Award (EUP Two-Stage Pressure Gasification System)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by about 9% from the 1990 level.
• Reduced emissions of 12 voluntarily selected chemical substances by 49% (compared with the 2000 level).
• Reduced final waste disposal by 69% (compared with the 2000 level).
• Implemented a CDM project in Thailand to reduce greenhouse gas emissions.

Social Achievements

• Opened UBE i Plaza, a comprehensive information center.
• Increased the number of employees with disabilities.
• Implemented a reemployment system for retired workers.
• Held mental health training seminars for employees.
• Promoted the employment of people with disabilities across the Group.

Governance Achievements

• Established the Group CSR Committee and the CSR Department.
• Revised the Action Guidelines for Business Conduct.
• Strengthened the compliance system.
• Improved risk management system.

Climate Goals & Targets

Environmental Challenges

• Global warming
• Reducing emissions of toxic chemical substances and industrial waste
• Ensuring compliance with laws and regulations
• Maintaining process safety and safe facility operations

Mitigation Strategies

• Implementing measures to reduce greenhouse gas emissions (energy saving, fuel conversion, waste utilization).
• Implementing a CDM project in Thailand.
• Improving existing production processes and conducting R&D for new products.
• Strengthening the compliance system through education, audits, and a noncompliance notification system.
• Improving risk management system through various committees and a business continuity plan.

Supply Chain Management

Responsible Procurement

• Green purchasing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Japanese Ministry of the Environment’s Environmental Reporting Guidelines Fiscal Year 2007 Version, Ministry’s Environmental Performance Indicators Guidelines for Organizations (Fiscal Year 2002 Version), Ministry’s Environmental Accounting Guidelines 2005

Certifications: ISO 14001, ISO 9000 series, OHSAS 18001

Third-party Assurance: Responsible Care Verification Center

Sustainable Products & Innovation

• Heliofresh
• PUD (waterborne polyurethane dispersion)
• Recycle compound UBE Composite
• Various other environmentally conscious products

Awards & Recognition

• Environmental Minister’s Prize at the 2004 GSC Awards
• Highest rating from the Development Bank of Japan in its Loan Program for Promotion of Environmentally Conscious Management

Environmental Metrics

ESG Focus Areas

• Global Environmental Preservation
• Harmonious Coexistence with All Stakeholders
• Sustainable Growth

Environmental Achievements

• Achieved a 12% reduction in CO2 emissions ahead of schedule (compared to 1990 levels), exceeding Japan's Kyoto Protocol target of 6%.

Social Achievements

• Introduced a reemployment system for retired workers.
• Actively employed mid-career workers.
• Increased the number of grants offered by the UBE Foundation to celebrate its 50th anniversary.

Governance Achievements

• Established the Group CSR Committee and CSR Department to strengthen CSR activities.
• Introduced an executive officer system to separate governance and management functions.
• Implemented a compliance system including e-learning seminars and compliance audits.

Climate Goals & Targets

Environmental Challenges

• Global warming
• Maintaining harmonious relationships with stakeholders amidst economic challenges
• Ensuring compliance with laws and regulations.

Mitigation Strategies

• Implemented various energy-saving measures, fuel conversion, and waste utilization policies.
• Established a Global Warming Countermeasures Promotion Office.
• Established a comprehensive compliance system, including a noncompliance notification system and regular compliance audits.

Supply Chain Management

Responsible Procurement

• Green purchasing initiatives
• Compliance with the Act against the Delay in Payment of Subcontract Proceeds, etc., to Subcontractors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Japanese Ministry of the Environment’s Environmental Reporting Guidelines Fiscal Year 2007 Version, Ministry’s Environmental Performance Indicators Guidelines for Organizations (Fiscal Year 2002 Version), Ministry’s Environmental Accounting Guidelines 2005

Certifications: ISO 14001, ISO 9000 series, OHSMS

Third-party Assurance: Responsible Care Verification Center

Sustainable Products & Innovation

• Polyurethane dispersion (waterborne, reduces VOCs)
• Polycarbonatediol (low environmental impact)
• UBEPOL VCR (reduced weight in rubber products)
• Hydrogen peroxide (environmentally clean)
• Recycle compound (color-adjusting, uses waste plastics)

Awards & Recognition

• PRTR Grand Prize (2008)
• Highest rating from the Development Bank of Japan in its Loan Program for Promotion of Environmentally Conscious Management (2008)

Environmental Metrics

ESG Focus Areas

• Global Warming
• Resource Recycling
• Waste Reduction
• Chemical Safety
• Product Safety
• Occupational Safety
• Stakeholder Engagement
• Community Relations
• Corporate Governance

Environmental Achievements

• Reduced CO2 emissions by 25% compared to 1990 levels.
• Recycled 3,030,000 tons of resource materials.
• Reduced emissions of 12 chemical substances by 78% compared with 2000 levels.
• Reduced the amount of industrial waste that undergoes final processing externally by 68% (compared with the 2000 level).

Social Achievements

• Implemented Meet and Greet Campaign to improve workplace communication.
• Conducted lifesaving courses and mental health training for employees.
• Introduced a reemployment system for retired workers.
• Actively employed mid-career workers and people with disabilities.
• Maintained favorable labor-management relations.

Governance Achievements

• Established Group CSR Committee and five specialized committees.
• Appointed two outside corporate directors to the Board of Directors.
• Adopted an executive officer system to separate governance and management functions.
• Revised Personal Action Guidelines and formulated Basic Policy for Anti-Social Forces.
• Implemented a business continuity plan (BCP).

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions from cement production.
• Managing waste plastic recycling challenges (color, surface coating, foreign substances).
• Meeting EU REACH regulations.
• Preventing distribution-related complaints.
• Maintaining process safety and preventing facility accidents.

Mitigation Strategies

• Developed high-chlorine bypass facilities and technologies to utilize various types of waste and byproducts in cement production.
• Developed technology to control light permeability and recolor recycled waste plastic.
• Established REACH Promotion Office to manage registration processes.
• Implemented measures to prevent distribution-related complaints and improve distribution quality.
• Implemented PDCA cycle in maintenance management, BCP earthquake response drills, and enhanced risk assessment.

Supply Chain Management

Responsible Procurement

• CSR Procurement Initiative (starting in fiscal 2010)
• Green purchasing

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and technologies.

Reporting Standards

Frameworks Used: Japanese Ministry of the Environment’s Environmental Reporting Guidelines (Fiscal Year 2007 Version), Japanese Ministry’s Environmental Performance Indicators Guidelines for Organizations (Fiscal Year 2002 Version), Japanese Ministry’s Environmental Accounting Guidelines 2005

Certifications: ISO 14001, ISO 9001, OHSAS 18001

Third-party Assurance: Responsible Care Verification Center

Sustainable Products & Innovation

• HELIOFRESH Marine Fragrance
• UBE NYLON 6
• UBESTA
• UBE-COMPOSITE
• ETERNACOLL UW series
• ETERNACOLL UH series
• SIMTEX
• PURELYTE
• UPORE
• UPILEX Series
• Hydrogen peroxide
• Metal organic compounds (MO)
• DMC
• DPC
• Oxetane
• MER-7959
• MEH-7851
• HIPRESICA
• AQUA SOLUTION
• UBE organic solvent dehydration membranes
• UBE carbon dioxide gas separation membranes
• UBE N2 Separator
• Thermal Blanket
• UBE RID
• High-purity silicon nitride powder
• SUNNYCOAT
• RASEN COMPOSE
• UPILEX Foam
• DANPLATE
• GREEN THUMB
• RAM SHEET
• U-ACITECHT N
• DESIGN FIT
• UBE Multi-Biomass Boiler
• Billets
• Energy-saving grab bucket
• Electric deck machinery
• Kiln exhaust heat recovery equipment
• MBO3
• Air Floating Conveyor
• USTABILIER 50
• USTABILIER Super
• CLEAR WATER
• CALBREED SII/EX
• High-chlorine bypass system
• Sewage sludge treatment facilities
• Sewage sludge transport system
• Facility to treat incineration ash
• Waste oil/liquid treatment facility
• Facility to produce fuel from waste plastic
• Biomass wood chip manufacturing facility
• SL FLOW G
• Tough Leveler G
• Quick Ceramic Flow
• TALION
• CALBLOCK
• EFFIENT
• POLYWRAP
• ECO SOFT
• UB Board Light
• UB Board 16·15
• YASASHII KABE
• KARATTO-KAIMIN
• Tenba Leveler
• U-Grout
• U-MIX

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Social Contribution
• Diversity and Inclusion
• Governance

Environmental Achievements

• Reduced CO2 emissions by approximately 260,000 tons in fiscal 2012
• Reduced emissions of 12 voluntarily selected chemical substances by 80% compared with the fiscal 2000 level
• Reduced industrial waste for final disposal by 73% compared with the fiscal 2000 level (short of the 80% target)
• Green purchasing rate improved to 74%
• Effective use of around 3.33 million tons of waste and byproducts in UBE cement factories

Social Achievements

• Job creation through new factory operations and expansion of production facilities
• Various social contribution activities including donations, sponsorships, volunteering, and community engagement events
• Implementation of childcare and nursing leave system, shortened working hours, and other work-life balance initiatives
• Active promotion of the employment of people with disabilities
• Global human resource development initiatives including language training and overseas work experience

Governance Achievements

• Established the Group CSR Committee as a top-level decision-making body
• Implemented an executive officer system to separate governance and management functions
• Established a Compliance Promotion Division and an internal notification system
• Regularly conducts IR activities to promote understanding of the company's management strategy and business conditions
• Improved corporate governance through the appointment of outside directors

Climate Goals & Targets

Environmental Challenges

• Economic stagnation in Spain
• Need for improved speed of Group's decision-making
• Inefficient use of software across different business bases
• Need for more globally unified systems to overcome national barriers
• Electricity shortages in Japan following the Great East Japan Earthquake

Mitigation Strategies

• Diversity in personnel and global marketing activities
• Raising efficiency through unification of systems
• Investments in communication speed and capital investment at factories
• Implementation of exhaustive power-saving measures and increased efficiency of coal-fired electricity
• Creation of a 12 MW exhaust heat power generation facility

Supply Chain Management

Responsible Procurement

• CSR procurement policy and guidelines
• Survey of suppliers to determine the current status of their CSR activities

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and renewable energy-related businesses

Reporting Standards

Frameworks Used: OHSAS 18001, ISO 9000, ISO 14000, Responsible Care

Certifications: AJA Registrars certification (Thailand), Yamaguchi Eco Factory Business (Ube Steel)

Third-party Assurance: Responsible Care Verification Center

Sustainable Products & Innovation

• Environment-friendly products such as Heliofresh, recycled compounds, and environment-friendly coating materials
• Renewable energy-related materials, technologies and businesses
• Materials and technologies that help reduce energy use and environmental burden

Awards & Recognition

• Grand Environmental Logistics Award
• Nippon Keidanren (Japan Business Federation) Chairman’s Prize
• Director-General’s Prize from the Agency for Natural Resources and Energy
• Global 500 Award
• Thai Ministry of Industry’s CSR-DIW Continuous Award
• Award for excellence in safety, workplace hygiene and labor environment from the Thai Ministry of Labor
• Best Company award at the 16th annual Sports Gala

Environmental Metrics

ESG Focus Areas

• Infrastructure support
• Earthquake resistance
• Aging infrastructure
• Environment-friendly products
• Resource recycling
• Global warming
• Biodiversity
• Occupational safety and health
• Process safety
• Compliance
• Human rights
• Social contribution
• Stakeholder engagement
• Diversity and inclusion

Environmental Achievements

• Reduced CO2 emissions by 18% compared with fiscal 1990 levels (energy use) and 22% (total, excluding waste)
• Reduced emissions of 12 voluntarily selected chemical substances by 81% compared with fiscal 2000
• Reduced external final disposal of industrial waste by 76% compared with fiscal 2000
• Increased green purchasing rate to 72%
• Developed and implemented new technologies for reducing CO2 emissions and improving resource efficiency (e.g., liquefied carbon dioxide production facilities, recycled fuel use)

Social Achievements

• Established Diversity Promotion Office to promote diversity and inclusion
• Implemented various work-life balance initiatives (childcare leave, nursing leave, flexible working systems)
• Conducted extensive employee training and development programs
• Engaged in various social contribution activities (donations, community events, volunteer work)
• Improved communication with stakeholders through dialogue meetings and publications

Governance Achievements

• Appointed two outside corporate directors to the Board of Directors
• Adopted an executive officer system to separate governance and management functions
• Established a robust compliance system with clear responsibilities and reporting mechanisms
• Implemented measures to ensure fair competition and prevent compliance violations
• Improved information disclosure to stakeholders

Climate Goals & Targets

Environmental Challenges

• Aging infrastructure in Japan
• Economic downturn impacting profitability in some business segments
• Global environmental issues (climate change, resource depletion)
• Maintaining a global perspective and enhancing marketing
• Increasing the proportion of women in leadership positions
• Ensuring compliance with laws and regulations
• Managing risks related to industrial accidents and disasters

Mitigation Strategies

• Developed and implemented the DESIGN FIT Method for seismic retrofitting
• Developed and implemented various environment-friendly products and technologies
• Revitalizing the Chemical Segment through innovation and efficiency improvements
• Strengthening global collaboration in R&D, production, and sales
• Establishing the Diversity Promotion Office and implementing various diversity initiatives
• Establishing a robust compliance system and providing regular compliance training
• Implementing risk management systems, including BCP and BCM, and conducting regular emergency drills

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CSR procurement policy prioritizing suppliers with strong CSR frameworks, fair business practices, and environmental considerations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (implied)

Transition Risks

• Regulatory changes (implied)

Opportunities

• Development of energy-efficient products and renewable energy sources

Reporting Standards

Frameworks Used: GRI, Responsible Care

Certifications: Null

Third-party Assurance: Responsible Care Verification Center

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Water-based polyurethane dispersion (PUD)
• High-purity silicon nitride powder
• Environment-friendly coating materials
• Recycled compound UBE-COMPOSITE
• Biomass fuel

Awards & Recognition

• Global 500 Award (Ube City)
• PRTR Grand Prize
• Kurumin next-generation certification

Environmental Metrics

ESG Focus Areas

• Environmental Preservation
• Occupational Safety and Health
• Product Safety
• Process Safety
• Social Contribution
• Corporate Governance
• Compliance
• Human Rights
• Diversity

Environmental Achievements

• Reduced CO2 emissions by 2% compared with fiscal 2013
• Improved CO2 emission intensity index by 5% compared with fiscal 2013
• Reduced external final disposal of industrial waste by 66% compared with fiscal 2000
• Reduced emissions of 20 voluntarily selected chemical substances by 28% compared with fiscal 2010
• Reduced VOC emissions by 29% compared with fiscal 2010

Social Achievements

• Received “Kurumin” next-generation certification as a company friendly to child rearing
• Implemented various initiatives to support childcare and nursing care for employees
• Actively promoted the employment of people with disabilities
• Held the 7th annual UBE Group Charity Concert, donating proceeds to local organizations and schools
• Conducted various social contribution activities in local communities in Japan and overseas

Governance Achievements

• Established the Competition Law Compliance Committee to prevent cartel activity
• Established the Group CSR Committee to oversee CSR activities
• Implemented an executive officer system to separate governance and management functions
• Established internal reporting system (UBE C-Line) for compliance-related issues
• Received third-party verification of environment and safety activities from the Responsible Care Verification Center

Climate Goals & Targets

Environmental Challenges

• Worsening business conditions in the Chemicals Segment
• Need to further reduce industrial waste for external final disposal to meet the 80% reduction target by fiscal 2015
• Low percentage of women in management positions

Mitigation Strategies

• Carrying over part of the task of rebuilding the chemicals business into the period of the medium-term management plan initiated in fiscal 2016
• Continuing efforts to recycle industrial waste and reduce its final disposal volume
• Implementing a voluntary action plan to increase women in officer and management positions

Supply Chain Management

Responsible Procurement

• CSR procurement policy and guidelines

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• UBE NYLON 6
• High-purity silicon nitride powder
• PURELYTE functional electrolyte solution
• UPORE microporous polyolefin film
• Polyurethane dispersion
• Polycarbonatediol
• Recycled compound UBE-COMPOSITE
• CLEAR WATER, MINERAL CLEAR environmental improvement agents
• UBE-COMPOSITE color-adjusted recycled plastic
• Wood biomass fuel
• Gas separation membranes
• YASASHII KABE
• HELIOFRESH, HELIOTROPINE
• POLYWRAP

Awards & Recognition

• Global 500 Award from the United Nations Environment Programme (UNEP)
• Kurumin next-generation certification
• Various awards from the Thai Ministry of Labor and Ministry of Industry for excellence in health and safety

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 14% compared with the fiscal 2005 level.
• Environment-friendly products and technologies accounted for 25% of total net sales.
• Reduced external final disposal of industrial waste by 81% compared with the fiscal 2000 level.

Social Achievements

• Implemented mental health initiatives, including the companywide adoption of external EAPs.
• Recognized under the 2017 Certified Health and Productivity Management Organization Recognition Program.
• Average rate of women among new graduate hires for generalist positions was above 20%.

Governance Achievements

• Established the Risk Management Office within the CSR Department.
• Established the Competition Law Compliance Committee to prevent cartel activity.
• Implemented a unified quality management system (QMS) for the entire Chemicals Company.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions and increasing energy efficiency.
• Developing human resources who embody the culture of value creation.
• Improving management transparency and ensuring timely disclosure.

Mitigation Strategies

• Setting energy consumption and GHG emission reduction targets at the company and division level.
• Implementing a variety of internal programs to pass on technical expertise.
• Establishing and maintaining effective corporate governance.

Supply Chain Management

Supplier Audits: 211 companies surveyed (2016)

Responsible Procurement

• CSR procurement policy and guidelines

Climate-Related Risks & Opportunities

Opportunities

• Expanding businesses that contribute to the environment

Sustainable Products & Innovation

• Environmentally valuable products and technologies (see page 55)

Awards & Recognition

• 2017 Certified Health and Productivity Management Organization Recognition Program
• Japan Credit Rating Agency, Ltd.: A Rating
• A- SRI indices FTSE4Good

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced GHG emissions by 38% from fiscal 2010 level by fiscal 2022 (PRTR substances and VOC emissions reductions, down 56% and 50%, respectively, from fiscal 2010).
• Achieved 77% recycling rate of plastic waste in fiscal 2022.
• Launched UBECycle, a recycled multilayer film product.

Social Achievements

• Active participation in UN Global Compact and its subcommittees.
• Various community engagement activities (e.g., street cleanups, forestation initiatives).
• Selected as a member of several ESG indexes (FTSE Blossom Japan Sector Relative Index, MSCI Japan ESG Select Leaders Index, MSCI Japan Empowering Women Index, S&P/JPX Carbon Efficient Index, SOMPO Sustainability Index, Morningstar Japan ex-REIT Gender Diversity Tilt Index).

Governance Achievements

• Established Sustainability Committee in April 2024.
• Supports TCFD recommendations.
• Awarded AAA Website in the 2022 All Japanese Listed Companies’ Website Ranking.

Climate Goals & Targets

Environmental Challenges

• Reducing GHG emissions across the entire supply chain.
• Increasing the sales ratio of environmentally friendly products and technologies.
• Managing water stress at key business sites.

Mitigation Strategies

• Set medium-term targets to reduce GHG emissions by 50% by fiscal 2030 and raise the share of environmentally friendly products and technologies to at least 60% of consolidated net sales.
• Developing upcycling technologies for composite plastics.
• Formulating water use strategies and monitoring KPIs at sites with expected increases in water stress.

Supply Chain Management

Responsible Procurement

• Fair, honest transactions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, UN Global Compact

Certifications: ISO 14001 (revised 2015)

Third-party Assurance: Third-party assurance for some data (see report for specifics).

Sustainable Products & Innovation

• UBECycle
• Products contributing to a circular economy
• Products that reduce CO2 emissions when used

Environmental Metrics

ESG Focus Areas

• Growth in Specialty Chemicals
• Addressing global environmental issues
• Hiring and development of human resources
• Strengthening the management platform (corporate governance and digital transformation)

Environmental Achievements

• Efforts to tackle environmental issues, particularly selling more environmentally friendly products and technologies, developing technologies that help resolve environmental issues, and formulating GHG emissions reduction goals
• Chemical emissions and industrial waste reductions
• Disaster prevention and industrial security
• Environmental accounting (environmental conservation costs and economic benefits)

Social Achievements

• Respect for human and labor rights
• Diversity and inclusion
• Communication improvements
• Education and training efforts
• Workstyle reform (labor productivity and work-life balance support)
• Health management
• Occupational health and safety (occupational safety and workplace environment improvements)
• Initiatives to prevent occupational accidents
• United Nations Global Compact and Basic Policies for Sustainability
• Supply chain management and sustainable procurement
• Community engagement and social contribution activities

Governance Achievements

• Reinforce the Board’s business oversight by establishing a framework in which directors who are Audit & Supervisory Committee members with rights to audit and express their opinions can also vote in Board of Directors’ meetings
• Expedite implementation by delegating important business decisions to the President & Representative Director
• Oversee the effectiveness of Groupwide internal controls and risk management systems
• Supervise new administrative structure as a holding company for machinery and cement-related businesses
• Assess effectiveness of Board of Directors and debate initiatives to address issues
• Discuss disclosure content in Corporate Governance Report reflecting UBE’s commitment to all 83 principles of the Corporate Governance Code
• Evaluation of the economic rationality of cross-shareholdings, etc.
• Introduction of the “UBE C-Line,” a hotline that allows executive officers and employees to directly report compliance issues

Climate Goals & Targets

Environmental Challenges

• Better supervise progress with key management matters linked to achieving business plans over medium and long terms and swiftly implement initiatives.
• As a holding company, bolster oversight of effective governance system operations for machinery and cement-related businesses.

Mitigation Strategies

• The Board stepped up efforts to supervise progress with key management matters linked to achieving business plans over medium and long terms and the effectiveness of Groupwide internal controls and risk management systems by requesting executives to constantly improve reporting and instructing them to accelerate their efforts.
• The Board supervised operational progress with a new administrative structure as a holding company for the machinery business cement-related businesses.
• In an Executive Management Workshop, Board members drew on information from external experts in the global business environment and corporate strategies in the chemicals industry to discuss UBE’s issues in seeking to drive specific initiatives to reach medium- and long-term management plan objectives.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Human Capital
• Specialty Business Growth

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework of the IFRS Foundation, Ministry of Economy, Trade and Industry (METI) Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation