Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Employee well-being
• Corporate citizenship
• Responsible Care

Environmental Achievements

• Reduced domestic greenhouse gas emission by 51% from the fiscal 1990 baseline set forth in the Kyoto Protocol.
• Developed technology for thermal decomposition of N2O, reducing emission by approximately 6 million tons CO2-equivalent.

Social Achievements

• Increased dividends by ¥2 per share to ¥12 per share.
• Cancelled 40 million shares of treasury stock to heighten shareholder value.
• Established a Compliance Hotline in April 2005 to ensure ethical conduct.

Governance Achievements

• Established an Internal Control Project in October 2005 to prepare an internal control system.
• Adopted a basic policy for internal control in May 2006.
• Elected two Outside Directors.

Climate Goals & Targets

Environmental Challenges

• Persistently elevated prices for petroleum and petrochemical feedstocks.
• High feedstock costs affecting profitability in several segments.
• Reimbursement price cuts in pharmaceuticals.
• Slack market for housing.
• Intensified competition in various sectors.

Mitigation Strategies

• Cost-cutting measures and sales price increases.
• Measures to reduce operating costs and higher sales prices.
• Product price increases and strong overseas demand.
• Focus on increasing unit-home orders from customers who are rebuilding in urban markets.
• Development of differentiated products for high-growth applications.

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hipore™ Li-ion rechargeable battery separators
• Microza™ microfiltration membranes
• Duranate™ hexamethylene diisocyanate-based polyisocyanate
• Precisé™ nonwovens

Awards & Recognition

• Environment Minister’s Award for Prevention of Global Warming

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Product safety
• Operational safety
• Workplace safety & hygiene
• Health maintenance
• Community outreach
• Respect for Employee Individuality
• Compliance
• Corporate Citizenship

Environmental Achievements

• Reduced CO2 emissions by 3% from fiscal 2008
• Reduced greenhouse gas emissions to 5.67 million tons of CO2 equivalent in fiscal 2009 (over 50% reduction from baseline)
• Reduced release of PRTR-specified substances by 94% from the baseline year of fiscal 2000
• Reduced emission of VOCs by 62% from fiscal 2000
• Reduced unit energy consumption by 9% from the previous year
• Seven hydroelectric power generation plants meet 10% of electricity needs

Social Achievements

• Launched Asahi Kasei Water Environment Preservation Foundation in China
• Organized social events with local residents, plant tours, neighborhood cleanup, and tree-planting activities
• Gave science lectures and demonstrations at junior high schools and high schools
• 407 personnel utilized parental leave (250 men and 157 women)
• Established Asahi Kasei Ability Corp. for employment of disabled persons

Governance Achievements

• Established Corporate Ethics – Basic Policy and Code of Conduct in 1998
• Established Corporate Ethics Committee to oversee compliance education and monitor compliance
• Established Information Disclosure Committee and adopted an Information Disclosure Policy
• Revised system for administrative positions in October 2008

Climate Goals & Targets

Environmental Challenges

• Global environmental issues, notably CO2 emissions and depletion of fossil fuels
• Maintaining compliance and transparent management
• Meeting targets for workplace injuries
• Reducing health warning signs among personnel

Mitigation Strategies

• Established Global Warming Response Committee in 2009
• Established Compliance Hotline in April 2005
• Implemented OHSMS program
• Provided physical and mental health checkups, and steps to reduce mental distress

Supply Chain Management

Supplier Audits: Annual CSR Procurement surveys

Responsible Procurement

• CSR-related performance of suppliers is a primary consideration in their selection

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001, ISO 9001, OHSAS 18001

Sustainable Products & Innovation

• Microza hollow-fiber membrane
• Hebel Haus unit homes
• Bemberg cupro regenerated cellulosic fiber
• Green Promax cups
• Hipore lithium-ion battery separator
• dECOb filter bag

Awards & Recognition

• 2009 National Commendation for Invention
• 3rd Annual Responsible Care Award
• 47th Adhesion Society of Japan Award
• 2009 Award of the Society of Polymer Science, Japan
• Good Design Award 2009
• Development Award, 2009 Award for Excellent PM Product
• Grand Prize, 58th Nikkei Advertising Awards
• Investor Relations Advertising Award, 58th Nikkei Advertising Awards
• Nikkei Child-Raising Support Award
• Award for Excellence, Construction/Energy Category, Asahi Advertising Award 2008
• Mainichi Advertisement Design Competition, Award for Excellence
• Grand Prize, Residential Category, 25th Yomiuri Advertising Award
• Award for Excellence, Environment Category, 25th Yomiuri Advertising Award
• President’s Award
• 56th Okochi Award
• Chemical Heritage Certification

Environmental Metrics

ESG Focus Areas

• Environment & Energy
• Residential Living
• Health Care

Environmental Achievements

• Established a joint venture with FDK Corp. to accelerate the development of business related to the lithium ion capacitor (LIC)
• Acquired US venture company Crystal IS, Inc. to develop business related to ultraviolet light emitting diodes (UV LEDs)
• Constructed a demonstration house called “HH2015” in Fuji, Shizuoka prefecture, to showcase cutting-edge technologies, such as solar power generation systems and home dialysis devices

Social Achievements

• Launched new homes featuring the feel of nature (Hebel Haus™ Soranoma Plus and Hebel Haus™ Sky Cottage)
• Began a program of joint research on cell processing for cancer treatment with tella, Inc.
• Launched Spiel™, a new functional knit that generates heat when stretched

Governance Achievements

• Adopted the structure of a holding company and core operating companies
• Elected multiple Outside Directors
• Institutionalized Internal Auditing and Internal Control

Climate Goals & Targets

Environmental Challenges

• High feedstock costs
• Strong yen impacting the profitability of exports
• Sovereign debt crisis in Europe leading to reduced demand
• Slower economic growth in emerging countries
• Major flooding in Thailand inundating one of our plants

Mitigation Strategies

• Implementing an additional program to enhance structural profitability, targeting a cost reduction of over ¥20 billion by the end of “For Tomorrow 2015”
• Accelerating progress under the “For Tomorrow 2015” management initiative
• Enhancing the efficiency of work in sales and R&D, reducing production costs, and streamlining physical distribution
• Swiftly confirming the safety of all Asahi Kasei Group personnel throughout Thailand during flooding
• Establishing a broad communication network to connect all manufacturing bases and offices in Thailand to enable personnel to smoothly share information about damage, evacuation, and risk management measures

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Hipore™ Li-ion battery separator
• LICs
• UV LEDs
• Jupii™ phenolic foam floor insulation panels
• Spiel™ functional knit

Awards & Recognition

• Asahi Kasei Award for Fashion Design Creativity in China

Environmental Metrics

ESG Focus Areas

• Environment & Energy
• Residential Living
• Health Care
• Compliance
• Responsible Care
• Corporate Citizenship
• Respect for Employee Individuality

Environmental Achievements

• Reduced CO2 emissions in Japan by 23.5% from FY 2005 level
• Reduced GHG emissions in Japan by 29.2% from FY 2005 level
• Achieved LCA/CO2 contribution ratio of 7.0
• Achieved recycling rate of 91% of total industrial waste generated
• Reduced release of PRTR-specified substances by 90% and VOC emissions by 87% from FY 2000 level

Social Achievements

• Increased number of women managers to 410 in June 2014
• Launched Hebel Haus™ FREX RESIDENCE and NEXT Hebel Haus™ series of homes
• Expanded use of Teribone™ osteoporosis drug and Recomodulin™ recombinant thrombomodulin
• Expanded LifeVest™ wearable defibrillator operations
• Received the 60th Okochi Memorial Technology Prize for development of Planova™ virus removal filters

Governance Achievements

• Enhanced governance configuration with a holding company Representative Director responsible for each of four business sectors
• Withdrawal of Shareholder Rights Plan
• Increased annual dividend for fiscal 2013 to ¥17 per share

Climate Goals & Targets

Environmental Challenges

• Fluctuations in crude oil and naphtha prices
• Exchange rate fluctuations
• Risks associated with overseas operations
• Changes in housing-related tax policy and interest rate fluctuations
• Market cycles in the electronics industry
• Government measures regarding healthcare in pharmaceutical, medical device, and acute critical care device businesses
• Industrial accidents and natural disasters
• Intellectual property disputes, product liability issues, and legal and regulatory changes
• Irrecoverable credits
• Lower-than-anticipated results from business and capital alliances

Mitigation Strategies

• Timely adjustment of selling prices to maintain sufficient price spreads
• Currency exchange hedges
• Proactive risk management and emergency response plans
• Diversification of business portfolio
• Timely development and commercialization of leading-edge products
• Continuous monitoring of government policies and regulatory changes
• Robust safety and risk management systems
• Strong intellectual property protection
• Careful credit risk management
• Thorough due diligence and strategic planning for alliances

Supply Chain Management

Responsible Procurement

• Compliance with laws relevant to purchasing transactions and Asahi Kasei Group’s internal regulations
• Fair and impartial selection of bids and conclusion of contracts
• Open door principle for potential suppliers
• CSR-focused procurement
• Partnership building with suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI 3.1, ISO 26000

Certifications: ISO 14001, ISO 9001

Sustainable Products & Innovation

• S-SBR for fuel-efficient tires
• Hipore™ lithium-ion battery separator
• Neoma™ phenolic foam insulation panels
• Hebel Haus™ homes
• Planova™ virus removal filters
• LifeVest™ wearable defibrillator
• UV LEDs
• LICs

Awards & Recognition

• 60th Okochi Memorial Technology Prize

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
• Work-Life Balance
• Supplier Relationships
• Community Engagement

Environmental Achievements

• Reduced GHG emissions in Japan by 50% compared to 2005 levels
• Achieved a final disposal rate of 0.2% and a recycling rate of 98.9% of total industrial waste
• Reduced releases of PRTR-specified substances by 92% and VOC emissions by 87% from 2000 levels
• Maintained zero serious product safety incidents

Social Achievements

• Increased the number of women in managerial positions by a factor of 1.6 times compared to the end of March 2015
• Implemented various measures to support employees in maintaining and advancing their mental and physical well-being
• Received Platinum Kurumin certification for proactive support for the development of the next generation
• Maintained zero complaints regarding violations of human rights
• Maintained zero violations of labor standards

Governance Achievements

• Strengthened corporate governance for increased corporate value
• Established the Asahi Kasei Group Code of Conduct
• Established the Asahi Kasei Group Basic Regulation for Risk Management & Compliance
• Implemented a Compliance Hotline

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions
• Maintaining zero serious workplace injuries while achieving a frequency rate of 0.1 or less
• Preventing accidents in the “caught in/between machinery” category
• Reducing the rate of absence due to illness or injury
• Reducing the rate of lifestyle-related diseases
• Managing risks related to bribery and corruption

Mitigation Strategies

• Implementing a range of measures to further reduce total global GHG emissions toward a target to be achieved in 2030
• Implementing a comprehensive OHSMS program
• Implementing advanced risk assessment for mechanical equipment and chemical substances
• Promoting safety activities in all workplaces
• Implementing company-wide measures for preventing falls
• Providing education and training on the prevention of bribery

Supply Chain Management

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

Responsible Procurement

• CSR survey of major suppliers
• Safety seminars with suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Development of innovative technologies such as a new highly energy-efficient production process for a raw material of polycarbonate using CO2 as feedstock, and an alkaline water electrolysis system to produce hydrogen from renewable energy at low cost with high energy conversion efficiency

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, ISO 26000

Certifications: ISO 14001, ISO 9001

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

Awards & Recognition

• JCIA RC Jury's Special Award (Moriyama Works)
• Shiga Biodiversity Award 2017 (Kotou Area Biodiversity Network)
• JCIA Safety Special Award (Oita Plant of Japan Elastomer Co., Ltd.)
• GP Encouragement Prize (Oita Plant of Asahi Kasei Medical MT Corp.)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Improved greenhouse gas emissions per unit of production by 27% compared to fiscal 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 fiscal 2000.

Social Achievements

• Increased the number of women in managerial positions.
• Implemented work from home program and increased annual leave days.
• Maintained zero lost-workday injuries for 30 years at Tomobe Plant.

Governance Achievements

• Established the Risk Management & Compliance Committee.
• Implemented measures to enhance information provision to Outside Directors and Outside Corporate Auditors.
• Established a Compliance Hotline.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Reducing Scope 3 emissions
• Maintaining a high level of safety across diverse operations.

Mitigation Strategies

• Set greenhouse gas reduction targets to be met by FY2030.
• Developed a plan to reduce CO2 (Scope 3) emissions from its supply chain.
• Implemented OHSMS and various safety initiatives to prevent workplace accidents.

Supply Chain Management

Supplier Audits: 185 major suppliers participated in the 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., lithium-ion battery separators, S-SBR synthetic rubber)

Awards & Recognition

• JCIA Special Award for Safety Excellence (Tomobe Plant)
• 5-Star Certification in the 3rd Nikkei Smart Work Management Survey

Environmental Metrics

ESG Focus Areas

• Environmental
• 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: Null

Certifications: ISO 14001, ISO 9001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed