菊水化学工業株式会社

Climate Impact & Sustainability Data (2023, 2023-04 to 2024-03)

Established a system where environmental goals are set in the medium-term management plan and reviewed by management.
Calculated and grasped Scope 1 and Scope 2 emissions for the entire group, and calculated all Scope 3 categories related to the company.
Built a system that reflects the sales performance of environmentally friendly products in employee evaluations.

Promoted employee diversity through the publication of the female employee ratio and the implementation of product development projects centered on female employees.
Established the "Asbestos Research Association" to implement asbestos removal measures and publicized it on the website.

Strengthened emergency response systems by collecting risk information to the executive committee according to the "Risk Management Regulations", identifying and evaluating important risks, and establishing "Crisis Management Regulations" in case of risks.
Established a system to disseminate the Code of Conduct to all employees by posting it within departments and including it in employee handbooks.
Established a Nomination and Remuneration Committee with a majority of outside directors to ensure transparency and objectivity in the determination of executive compensation.

Set a target to reduce Scope 1 and 2 emissions by 3% annually until March 2030 (from the base year of FY2021).

Certified as a “Health Management Excellent Company 2024” by the Ministry of Economy, Trade and Industry.
Established a “Kikusui Chemical Industry Co., Ltd. Health Declaration” in March 2023 to support employees' mental and physical health and improve the work environment.

Established a Sustainability Promotion Committee with the President as the head and a sustainability officer as the chair to discuss and verify sustainability-related risks, issues, and countermeasures.
Implemented a stock-based compensation system for directors and auditors to promote sustainable improvement of corporate value and value sharing with shareholders.

Medium-term Goals:

Uncertainty in the future due to prolonged geopolitical tensions in Ukraine and the Middle East, leading to high raw material and energy prices, and the global monetary tightening.
An inappropriate accounting treatment was discovered where some costs were not recorded for a specific project, resulting in unrecorded construction costs and accounts payable.

Established a Sustainability Promotion Committee to address sustainability-related risks, issues, and countermeasures.
Established an investigation committee to investigate the inappropriate accounting treatment and implemented countermeasures to prevent recurrence.