Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Responsible Care

Environmental Achievements

• Reduced energy consumption by 10% (compared to the previous year)
• Reduced CO2 emissions by 5% (compared to the previous year)
• Improved wastewater quality
• Implemented waterless printing, significantly reducing VOC emissions
• Used ink with vegetable oil solvent
• Used FSC™-certified paper

Social Achievements

• Launched a new employee well-being program
• Held the 10th All Kureha Sports Festival
• Published a bi-directional communication paper "Nishiki"
• Conducted science classes for elementary school students
• Participated in community cleanup activities
• Implemented measures to support work-life balance

Governance Achievements

• Strengthened corporate governance
• Implemented a compliance system including a code of conduct and compliance regulations
• Established a compliance hotline
• Conducted regular compliance training

Climate Goals & Targets

Environmental Challenges

• Damage to facilities at the Iwaki plant due to the Great East Japan Earthquake
• Increased waste generation due to the merger of the resin processing business
• Increased PRTR substances due to earthquake response and new substances

Mitigation Strategies

• Gradual restoration of Iwaki plant operations after the earthquake
• Continued efforts to reduce waste and improve recycling rates
• Continued efforts to reduce emissions of PRTR substances

Supply Chain Management

Responsible Procurement

• CSR procurement standards

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Green plastics
• New food packaging materials
• Bioball
• Ecoltia
• Kureha Advanced Materials LLC's RGS

Awards & Recognition

• Good Design Award
• Long Life Design Award
• Asia Design Award
• Asia Star Award
• World Star Award
• Product Safety Measures Excellent Company Award

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Safety and Disaster prevention
• Labor safety and health
• Product safety and quality assurance
• Community relations

Environmental Achievements

• Reduced PRTR substances emission by 15 tons from FY2012 to 76 tons in FY2013
• Maintained strict controls over exhaust gas treatment facilities
• No odor complaints reported
• Maintained safe operation at central discharged water treatment facility
• Continued voluntary discharged water management at each plant exit
• Improved material recycling rate
• 100% recycle rate achieved at Krehalon Industrie B.V. in FY2013

Social Achievements

• Zero Class 3 or worse accidents occurred in calendar year 2013
• Conducted 11th CSR community dialog meeting
• Held science lessons at elementary schools and engaged in other community volunteer activities
• Implemented measures for 69% of avoidable risks identified in the Risk Extraction process
• Conducted plant tours for the public

Governance Achievements

• Performed internal audit for the attainment level of RC targets in all manufacturing plants & offices
• Passed screenings for updated QMS and current EMS/OHSAS systems
• Implemented compliance awareness programs for employees at Kureha Chemicals Shanghai Co., Ltd.

Climate Goals & Targets

Environmental Challenges

• Slight increase in company-wide energy use and carbon dioxide emission from the previous year despite decreases in office and Plastic Processing Factory areas.
• Increase in industrial waste materials at Iwaki Factory due to coal-fired boiler startup (mitigated by recycling as raw material for cement).
• Quality complaints and off-specification products

Mitigation Strategies

• Aggressive promotion of energy-saving equipment and initiatives by the Energy Management Committee.
• Waste volume reduction through improved product yields, advanced waste separation, and material recycling in Plastic Processing Factories.
• Continued facility improvement and stable operation of manufacturing plants to manage SOx, NOx, COD, and BOD emission.
• Implemented measures for avoidable risks, including facility improvements.
• Ongoing risk assessment and improvement programs (Campaign to Reduce the Risk of Personal Accident Occurrence).

Supply Chain Management

Supplier Audits: 2 outsourcing contractors for waste disposal audited

Responsible Procurement

• Policy of not using conflict minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO26000, Ministry of Environment "Environmental Report Guidelines (2012 edition)", Ministry of Environment "Environmental Accounting Guidelines (2005 edition)"

Certifications: ISO 14001, ISO 9001, OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Responsible Care (RC)
• Environmental Protection
• Occupational Safety and Health
• Community Relations
• Human Resources Development

Environmental Achievements

• Decreased energy use and carbon dioxide emissions in FY2014 compared to the previous year, both at the Iwaki Factory and company-wide.
• Reduced industrial waste emissions through improved product yields and waste separation methods.
• Maintained air and water pollutant emissions below voluntarily set levels.

Social Achievements

• Established Sunshine Kureha Co., Ltd. to support social participation and independence of people with disabilities.
• Conducted science lessons for school children for the 16th consecutive year.
• Held the 12th CSR Local Dialogue Meeting with local stakeholders.

Governance Achievements

• Established a CSR Committee in March 2015 to oversee and promote CSR initiatives, including Responsible Care activities.
• Expanded top management on-site safety inspections to include plastics processing factories.

Climate Goals & Targets

Environmental Challenges

• Increased coal cinders and ash waste from coal-fired boiler at Iwaki Factory (mitigated through recycling as cement raw material).
• Decreased recycling rate of waste materials in FY2014 despite overall waste reduction.

Mitigation Strategies

• Recycling coal cinders and ash as raw material for cement.
• Implementing mid-term waste reduction plan and promoting recycling.

Supply Chain Management

Supplier Audits: Audited 9 outsourcing contractors for waste disposal (FY2014), Audited 2 outsourcing contractors for quality assurance (FY2014)

Responsible Procurement

• Policy of not using conflict minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000, Ministry of Environment “Environmental Report Guidelines (2012 edition)”

Certifications: ISO 14001, ISO 9001, OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Responsible Care (RC)
• Environmental Protection
• Disaster Prevention
• Occupational Safety
• Product Safety
• Quality Assurance
• Community Relations
• Human Resource Development
• Corporate Governance
• Compliance

Environmental Achievements

• Reduced CO2 emissions at the distribution stage through energy-saving vehicles, warehouse consolidation, and eco-driving.
• Maintained strict controls over exhaust gas treatment facilities, resulting in no odor complaints.
• Maintained safe operation at central discharged water treatment facility and continued voluntary management of discharged water at each plant.
• Recycled coal cinders and ash from the Iwaki Factory as raw material for cement.
• Reduced waste in Plastics Processing Factories through improved product yields, advanced waste separation, and material recycling.

Social Achievements

• Held a sports festival with over 2,400 local residents.
• Conducted the 13th CSR Local Dialogue Meeting with 136 participants.
• Participated in the Iwaki Odori traditional dance event with 186 employees.
• Conducted factory tours for 1,024 visitors.
• Established Sunshine Kureha Co., Ltd. in 2014 to employ people with disabilities.
• Launched the Employees Shine-Up Project to empower employees.
• Implemented programs to improve work-life balance, including childcare leave and promoting paid vacations.

Governance Achievements

• Established a CSR Division and Department.
• Formulated a Corporate Governance Guideline.
• Implemented a compliance program based on the Kureha Group Ethical Charter and Compliance Rules.
• Strengthened internal control systems with committees and internal rules.
• Established a risk management structure with a Risk Management Committee, CSR Committee, and Information Management Committee.
• Established an emergency task force.

Climate Goals & Targets

Environmental Challenges

• Increased industrial waste generation and decreased recycling rate.
• Increased energy used for production at business sites, leading to higher CO2 emissions.
• Quality complaints and out-of-specification products did not meet reduction targets.
• Two personal injury accidents of Class 3 or worse.

Mitigation Strategies

• Audited outsourcing contractors for waste disposal.
• Deployed and tuned energy-saving equipment.
• Promoted company-wide energy-saving initiatives.
• Audited 38 contractors and took corrective actions.
• Revised QA rules and internal rules.
• Implemented measures for 92% of avoidable risks identified in the campaign to eliminate the risk of personal accident occurrence.
• Informed employees of accidents at other companies and conducted in-depth study on past serious accidents.

Supply Chain Management

Supplier Audits: 9 outsourcing contractors for waste disposal (2015), 38 contractors (2015)

Responsible Procurement

• Purchasing Policy and Procurement Standard
• Green Procurement Guideline

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000, Ministry of Environment "Environmental Report Guidelines (2012 edition)"

Certifications: ISO 14001, ISO 9001, OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Responsible Care

Environmental Achievements

• Reduced CO2 emissions by 3.4% (energy use) and 9.7% (total emissions)
• Reduced waste generation by 3,043 tons compared to the previous year
• Reduced PRTR substances emissions by 3 tons compared to the previous year

Social Achievements

• Launched the 'Shining Up Promotion Project' to improve employee engagement and well-being
• Established 'Sunshine Kureha,' a subsidiary employing people with disabilities
• Continued operation of Kureha General Hospital, supporting the local community's health

Governance Achievements

• Established a CSR Promotion Headquarters to strengthen CSR initiatives
• Identified 20 key CSR materiality issues
• Implemented various compliance training programs

Climate Goals & Targets

Environmental Challenges

• Decreased sales revenue and operating profit in some business segments
• Supply chain disruptions
• Need to improve employee engagement and well-being
• Maintaining safety and preventing accidents

Mitigation Strategies

• Implemented cost reduction measures and structural reforms
• Developed alternative sourcing strategies
• Launched the 'Shining Up Promotion Project' and other initiatives to improve employee engagement
• Strengthened safety training and implemented preventive measures

Supply Chain Management

Supplier Audits: 39 audits in 2016

Responsible Procurement

• Purchasing basic policy
• CSR procurement guidelines
• Green procurement guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO26000, Environmental Accounting Guidelines (2005)

Certifications: ISO 14001, ISO 9001, OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon dioxide emissions by 41,425 tons from the previous fiscal year.
• Reduced industrial waste volume by 3,043 tons from the previous fiscal year.
• Generated approximately 300 MWh of electricity using a solar power system.

Social Achievements

• Launched the Employees Shine-up Project in May 2015, improving communication and human resource systems.
• Reduced average monthly overtime hours worked.
• Supported disaster victims with a ten million yen donation.
• Participated in the Pink Ribbon campaign.

Governance Achievements

• Established a CSR Management System based on ISO 26000.
• Conducted internal CSR seminars for 460 employees.
• Formulated Corporate Governance Guidelines to comply with Japan's Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• One serious facility accident (fire at an R&D facility) occurred.
• Quality complaint target not achieved.
• One Class 3 personal injury accident occurred at a Plastics Processing Factory and another at a Group company.

Mitigation Strategies

• Improved emergency response capability with disaster prevention training.
• Conducted activities to improve safety and quality management systems in conjunction with overseas Group companies.
• Identified and took measures to address risks by conducting risk assessments, and conducted safety training.

Supply Chain Management

Supplier Audits: 19 outsourcing contractors for waste disposal; 39 contractors audited for quality.

Responsible Procurement

• CSR Procurement Guidelines (covering human rights, labor, environment, fair trade, product quality, information security, and contribution to society).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 26000, Ministry of Environment “Environmental Report Guidelines (2012 edition)”

Certifications: ISO 14001, ISO 9001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Energy
• Life
• Governance
• Compliance
• Human Resources
• Technology Development
• Social Contribution
• Community Engagement
• Responsible Care

Environmental Achievements

• Energy unit reduction of 7.0% and CO2 emission reduction of 11.7% in Iwakisansho
• Reduced CO2 emissions by 2,887 tons (company-wide)
• Approximately 300MWh of power generation from solar power generation equipment (equivalent to a reduction of approximately 150 tons of CO2 emissions)

Social Achievements

• Launched various programs for employee well-being, including work-life balance initiatives, stress checks, and mental health seminars.
• Implemented a new personnel system and took steps towards work style reforms.
• Conducted CSR regional dialogue meetings and engaged in various community activities, including volunteer work and educational support.

Governance Achievements

• Established a CSR committee directly under the president to oversee CSR activities.
• Strengthened internal control systems and enhanced compliance measures.
• Improved communication with stakeholders, including shareholders and investors.

Climate Goals & Targets

Environmental Challenges

• Economic downturn due to the COVID-19 pandemic.
• Increased energy unit and CO2 emissions due to factors such as increased coal usage and system updates.
• Increased waste generation and disposal.
• Human errors contributing to accidents.

Mitigation Strategies

• Implemented various measures to ensure employee safety and business continuity during the pandemic.
• Implemented energy-saving measures and promoted energy efficiency.
• Implemented waste reduction and recycling initiatives.
• Strengthened safety activities, including risk assessments, hazard prediction activities, and safety training.

Supply Chain Management

Supplier Audits: 15 supplier audits conducted in 2019.

Responsible Procurement

• Purchasing basic policy and CSR procurement guidelines.
• Surveys to assess suppliers' CSR performance.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO26000, GRI, Environment Accounting Guidelines (2005), Environment Reporting Guidelines (2012)

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 45001

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 15 (Life On Land)

Initiatives contribute to these goals through environmental protection, resource efficiency, community engagement, and employee well-being programs.

Sustainable Products & Innovation

• Biodegradable plastics
• Recycled materials

Awards & Recognition

• Responsible Care Award (Japan Chemical Industry Association)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Sustainable Development Goals (SDGs)
• Carbon Neutrality
• Resource Recycling
• Waste Reduction
• Board Diversity
• Employee Well-being

Environmental Achievements

• Reduced CO2 emissions from energy use by approximately 30% from FY2013 levels by FY2020.
• Achieved zero final disposal of polyvinylidene chloride waste since February 2021.
• Improved recycling rate of coal ash at the Iwaki Plant by outsourcing recycling to a recycling company.

Social Achievements

• Introduced a new personnel system in October 2021 to enhance employee roles and performance-based compensation, and gradually extend the retirement age to 65.
• Strengthened group governance integrated with that of the parent company.
• Continued to respect human rights in all aspects of corporate activities, including the details of specific initiatives related to respect for human rights in the Compliance Code of Conduct.

Governance Achievements

• Established the Carbon Neutrality Committee in April 2021 and expanded it into the Carbon Neutrality Project in September 2021.
• Established the Nomination Advisory Committee and Remuneration Advisory Committee in June 2018 to enhance transparency in human resource management.
• Enhanced ESG information disclosure and promoted dialogue with stakeholders by renewing the website’s CSR section in line with the Global Reporting Initiative (GRI).

Climate Goals & Targets

Environmental Challenges

• Decreased revenue in the PGA business due to the impact of COVID-19 on the domestic and overseas economies.
• Shrinking market for PGA frac plugs due to the pandemic.
• Soaring raw material prices and differences in the product mix impacting carbon products business.
• Decreased sales of heat-shrink multilayer films and the transfer of the blow bottle business.
• Lower sales of inorganic and organic chemicals due to a drop in domestic industrial production caused by COVID-19.
• Drop in orders for private construction work and a rise in construction costs due to the impact of COVID-19.
• Decrease in the disposal and treatment of disaster waste in the environmental business.

Mitigation Strategies

• Developing new ultra-low temperature grade PGA and improving degradability to expand sales in existing markets.
• Opening five service centers to quickly reflect end-user feedback in PGA products.
• Strengthening cooperation with business partners to improve profitability in the PPS business.
• Expanding production capacity of PVDF to meet growing demand for in-vehicle LiBs.
• Implementing cost reduction targets and promoting digitalization and operational efficiency.
• Curbing the operation of the coal-fired power plant at the Iwaki Factory and switching to renewable energy.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• PGA frac plugs
• PVDF binders for LiBs

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Environmental Impact Reduction
• Social Contribution
• Employee Engagement
• Economic Value Enhancement

Environmental Achievements

• Aim to reduce CO2 emissions by more than 30% from energy sources compared with FY2013 levels by FY2030
• Aim for a zero waste emission ratio of 1.5% by FY2030

Social Achievements

• Promote synergism between company and employees; enhance communication and value employees
• Contribute to resolving social issues through product and service evolution

Governance Achievements

• Strengthen the management base; improve executive efficiency and strengthen risk management
• Promote a digitization strategy enabling advanced management

Climate Goals & Targets

Environmental Challenges

• Climate change-induced alterations to the global environment causing an increase in natural disasters
• Geopolitical risks and restrictions in the movement of people and goods

Mitigation Strategies

• Strive to achieve carbon neutrality by FY2050
• Revive Kureha’s technology-driven focus; strengthen research and technology
• Strengthen the management base; improve executive efficiency and strengthen risk management

Supply Chain Management

Climate-Related Risks & Opportunities