Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Governance
• Supply chain sustainability
• Employee well-being
• Carbon neutrality

Environmental Achievements

• Reduced GHG emissions by 34% compared to fiscal 2013 (non-consolidated)
• Achieved 19% renewable energy share of purchased power (non-consolidated)
• Reduced zero waste emission rate to 0.25% (non-consolidated)
• Developed carbon recycling technology (Carbopath™)
• Developed CO2-derived polycarbonate manufacturing technology
• Received ISCC PLUS certification for MX-Nylon

Social Achievements

• Launched initiatives to manufacture and market biomass polycarbonate products
• Improved employee engagement (75% satisfied working at the company)
• Increased percentage of males taking parental leave to 51.1%
• Selected as a “Supplier Engagement Leader 2022” by CDP

Governance Achievements

• Strengthened corporate governance system
• Established a Special Committee on Governance at JSP subsidiary
• Implemented internal carbon pricing system

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Rising raw material and fuel prices
• Economic slowdown
• Intensifying competition
• Declining labor productivity
• Climate change risks (physical and transition)
• Unprofitable businesses

Mitigation Strategies

• Business portfolio reform (exiting unprofitable businesses, strengthening differentiating businesses)
• Upward revision of sales prices
• Growth investments in differentiating and new businesses
• Development of alternative sourcing strategies
• Work style reforms
• Scenario analysis to identify climate change risks and opportunities
• Implementation of business continuity plans (BCP)
• Strengthening CSR procurement activities

Supply Chain Management

Supplier Audits: 191 companies responded to the CSR Procurement Self-Assessment Tool (SAQ) as of fiscal 2022.

Responsible Procurement

• Basic Concepts Related to Raw Material Procurement Activities
• Mitsubishi Gas Chemical CSR Procurement Guidelines
• CSR Procurement Self-Assessment Tool (SAQ)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Storm surge
• Drought

Transition Risks

• Regulatory changes
• Market shifts
• Decarbonization

Opportunities

• Development of energy-efficient products
• Expansion of products conducive to carbon neutrality
• Opportunities in decarbonization scenario

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISCC PLUS

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

MGC's initiatives contribute to these goals through carbon recycling technology, renewable energy adoption, sustainable product development, and waste reduction.

Sustainable Products & Innovation

• Carbopath™
• CO2-derived polycarbonate
• Biomass polycarbonate
• ISCC PLUS-certified MX-Nylon
• OXYCAPT™

Awards & Recognition

• CDP Supplier Engagement Leader 2022
• Health & Productivity Management Outstanding Organization (four successive years)

Environmental Metrics

ESG Focus Areas

• Climate change
• Changes in international situation
• Demographic changes
• Advancements in ICT/mobility
• Biodiversity crisis
• Diversity
• Behavioral changes
• Environmental impact reduction
• Human rights
• Safety

Environmental Achievements

• GHG emissions reduction of 33% (forecast) compared to FY2013
• Zero waste emission rate of 0.8%
• Started operation of the Appi Geothermal Power Plant
• Started a biomethanol manufacturing business
• Successfully developed a process that reduces CO2 emissions compared with the conventional manufacturing process for polycarbonates

Social Achievements

• Lost-time injury frequency rate of 0.00
• Employee satisfaction of 75%
• Established the MGC Commons, a new innovation center
• 74% of male employees took parental leave, achieving the target of 40% or higher

Governance Achievements

• Established the Mitsubishi Gas Chemical Group Human Rights Principle
• Established a Human Rights Hotline
• Improved the effectiveness of the Board of Directors through a third-party assessment

Climate Goals & Targets

Environmental Challenges

• Sluggish semiconductor market
• Rising prices for raw materials and components
• Stalling of the Chinese and European economies
• Rising geopolitical risk
• Climate change
• Supply chain disruptions
• Labor shortage
• Low profitability and capital efficiency in some businesses

Mitigation Strategies

• Active investment in differentiating businesses
• Discontinuation of low-margin products
• Reorganization of businesses
• Increased efficiency through operational changes
• Focus on Uniqueness & Presence (U&P) businesses
• Investment in new technologies and products
• Cost reduction measures
• Balance sheet streamlining
• Strengthening of supply chains
• Promotion of sustainability management
• Enhancement of human capital management

Supply Chain Management

Supplier Audits: 191 companies responded to the CSR Procurement Self-Assessment Tool (SAQ) as of FY2022

Responsible Procurement

• Basic Concepts Related to Raw Material Procurement Activities
• Mitsubishi Gas Chemical CSR Procurement Guidelines
• CSR Procurement Self-Assessment Tool (SAQ)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Storm surge
• Drought

Transition Risks

• Strict regulations such as carbon tax
• Increased fossil fuel prices

Opportunities

• Development of CCUS (particularly CCS) and CO2-based methanol and polycarbonate businesses
• Commercial development of ammonia as a hydrogen carrier and CO2-free fuel
• Increased demand for high-value-added products due to high economic growth
• Technological innovations in response to requests to improve power consumption efficiency

Reporting Standards

Frameworks Used: IIRC Integrated Reporting, GRI Sustainability Reporting Standards, TCFD recommendations, SASB standards

UN Sustainable Development Goals

• 3.9, 8.2, 9.4, 9.5, 12.3
• 8.2, 9.4, 9.5
• 3.9, 6.3, 7.2, 11.6, 12.5, 13.3, 14.1, 14.3
• 7.3, 12.2
• 4.4, 5.4, 8.5
• 4.4, 5.1, 5.5, 8.5
• 4.7, 8.7, 10.2, 10.3, 16.3, 16.10
• 3.9, 8.5, 11.6, 12.4, 13.3
• 3.9, 12.4
• 12.2, 16.2
• 8.7, 10.2, 10.3, 16.2, 16.3, 16.5, 16.10

The report shows alignment with various SDGs through its initiatives in climate change, human rights, safety, diversity and inclusion, and responsible sourcing.

Sustainable Products & Innovation

• Circular carbon methanol
• Polycarbonate from CO2
• Biomethanol
• Recycled EP
• New BT laminate materials
• New semiconductor cleaning solutions
• OXYCAPTTM
• Solid electrolyte
• Antibody drugs
• Allergy test chips

Awards & Recognition

• Health & Productivity Management Outstanding Organization 2024