Climate Change Data

Environmental Metrics

ESG Focus Areas

• Global Warming
• Waste Reduction and Recycling
• Responsible Management of Chemicals
• Environmental Business
• Active Management and Information Disclosure

Environmental Achievements

• Reduced CO2 emissions by 18% below 1990 levels by 1999 (exceeding the 12% target for 2000).
• Achieved zero emissions for tetrachloroethylene in 1999.
• Reduced waste output significantly, aiming for 90% reduction from 1995 levels by the end of FY2000.
• Seven out of ten factories achieved ISO14001 certification by 2000.

Social Achievements

• Active participation in the Responsible Care movement and WBCSD.
• Established the Blue Planet Prize to recognize contributions to solving global environmental problems.
• Provided environmental education and training to employees.

Governance Achievements

• Established the Corporate Environment & Safety Directorate to oversee environmental policies and actions.
• Implemented environmental auditing since 1994.
• Implemented a Material Safety Data Sheet (MSDS) system since 1992.

Climate Goals & Targets

Environmental Challenges

• Reducing the environmental impact of energy-intensive production processes.
• Reducing waste generation in the chemicals and glass production industries.
• Ensuring responsible management of chemicals throughout their lifecycle.
• Recycling automotive glass (quality issues).

Mitigation Strategies

• Implementing energy-efficient technologies like SAR (Subatmospheric glass refining) and oxygen combustion.
• Setting quantitative targets for waste reduction and actively pursuing recycling initiatives.
• Implementing the Responsible Care program and complying with PRTR Law.
• Developing technologies for automotive glass recycling.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Energy-saving sheet glass
• Arsenic-free glass for liquid crystal panels
• Chrome-free bricks
• Lead-free coating for automotive glass
• F-Clean Fluoropolymer film for greenhouses
• Eco Safe System to clean black smoke from stationary diesel engines
• AC Coat surface treatment for TV tube glass

Awards & Recognition

• 2000 Industrial Technology Institute Director's Prize (Eco Safe System)

Environmental Metrics

ESG Focus Areas

• Global warming
• Ozone layer depletion
• Resource depletion
• Waste reduction
• Recycling
• Occupational health and safety
• Soil and groundwater contamination
• Responsible Care
• Green purchasing
• Community relations

Environmental Achievements

• Reduced CO2 emission by 35% from 1990 levels
• Reduced fluorine-based greenhouse gas emissions
• Reduced industrial waste to 8% of 1995 levels
• Achieved 97% recycling rate of abrasive slag
• Reduced energy consumption by 6.3% from 1997 levels at Kashima Plant
• Reduced energy consumption by 5% at Chiba Plant
• Reduced SOx emission at Aichi Plant through furnace repair
• Reduced PRTR substances emission by 80% compared to 1995

Social Achievements

• Reduced frequency rate of industrial accidents
• Established occupational health and safety management system
• Provided environmental education programs for employees
• Implemented community engagement activities (plant tours, local events)
• Made donations to various social contribution groups

Governance Achievements

• Formulated a new group vision targeting a truly global enterprise
• Reorganized Corporate Environment & Safety as an independent corporate office
• Implemented an integrated environmental management system
• Acquired ISO 14001 certification for all establishments by April 2002
• Participated in Japan Responsible Care Council
• Implemented green purchasing guidelines

Climate Goals & Targets

Environmental Challenges

• Soil and groundwater contamination at Chiba Plant
• Emission of greenhouse gases (CO2, HFC, SF6)
• Reduction of industrial waste to achieve zero emission by 2005
• Managing chemical substances in compliance with regulations

Mitigation Strategies

• Implemented decontamination measures at Chiba Plant (impervious wall installation, groundwater pumping)
• Adopted oxygen combustion process in melting furnaces (reducing NOx and SOx emissions)
• Improved recycling technologies (abrasive slag, CRT glass)
• Implemented stricter control and technical development for fluorine-based greenhouse gases
• Implemented green purchasing initiatives
• Developed fluorinated solvents with low Ozone Depletion Potential

Supply Chain Management

Responsible Procurement

• Green purchasing initiatives

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Japanese Ministry of Environment guidelines

Certifications: ISO 14001

Sustainable Products & Innovation

• Arsenic-free glass substrate
• Infrared-ray cut glass
• Fluorinated solvents with low Ozone Depletion Potential

Awards & Recognition

• Stratospheric Ozone Protection Awards from USA Environmental Protection Agency (AK-225)
• Chairman Prize from Japan Industrial Safety and Health Association

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 35% relative to 1990 levels (parent company)
• Achieved a 95.2% recycling rate for waste materials (parent company)
• Developed world's first commercial recycling technology for fluoropolymers
• Developed arsenic-free TFT-LCD glass

Social Achievements

• Launched Global Leadership Session and Asian University training programs for managers
• Introduced in-house career change system to promote flexible transfer of people among divisions
• Implemented a selective benefit package system ('My Story')
• Undertook various community activities and scholarship programs

Governance Achievements

• Established Nominating Committee and Compensation Committee to strengthen corporate governance
• Established Compliance Committee to oversee compliance-related planning and actions
• Introduced a Compliance Help Line for reporting and counseling on compliance violations

Climate Goals & Targets

Environmental Challenges

• Increased frequency rate of industrial accidents in fiscal 2003
• Soil and groundwater pollution at some sites
• Need to reduce environmental impact of manufacturing processes and distribution operations

Mitigation Strategies

• Initiated decontamination programs at Chiba Plant and Seimi Chemical Co., Ltd.
• Implemented measures to reduce the number of journeys made by empty trucks
• Developed and implemented an integrated environmental management system (EMS)
• Implemented various safety measures and training programs to reduce industrial accidents

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green procurement guidelines for materials and components
• Green purchasing guidelines for office supplies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, Japanese Ministry of the Environment guidelines, Japanese Ministry of Economy, Trade and Industry guidelines

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Center for Environmental Information Science (partial assurance)

Sustainable Products & Innovation

• Arsenic-free LCD glass
• High-capacity electric double layer capacitors
• Diesel particulate filters (DPFs)

Awards & Recognition

• Award from Tohoku Bureau of Economy, Trade and Industry (Asahi Glass Fine Techno Co., Ltd.)
• Excellent Manufacturing Company Site award for Kashima Plant's pressurized gas installations

Environmental Metrics

ESG Focus Areas

• Integrity
• Environment and Safety
• Diversity
• Harmony with Society

Environmental Achievements

• Reduced CO2 emissions by 30% from the 1990 level.
• Achieved a 96% recycling rate for industrial waste.
• Developed arsenic- and antimony-free glass for LCDs and hard disk drives.
• Developed highly heat-insulating, low-emissive double-glazing glass (Ecoglass).

Social Achievements

• Conducted ES surveys to understand employee satisfaction and implemented improvement measures.
• Held AGC Group award ceremonies to appreciate excellent activities and achievements.
• Improved childcare support system, including extending childcare leave period.
• Implemented measures to support employees in balancing work and family care.

Governance Achievements

• Established the AGC Group Charter of Corporate Behavior.
• Implemented a global compliance system.
• Revised the directors’ compensation system.
• Established the positions of “Chairman & CEO” and “President & COO”.

Climate Goals & Targets

Environmental Challenges

• Global warming and climate change.
• Compliance-related issues and corporate scandals.
• Maintaining trust from stakeholders.
• Reducing environmental impact of manufacturing processes.

Mitigation Strategies

• Formulated the AGC Group Charter of Corporate Behavior.
• Implemented global compliance programs, including a Code of Conduct, Help Lines, and compliance certificates.
• Systematized and accelerated environmental measures, such as energy conservation.
• Developed and implemented the AGC Environmental Indicator.

Supply Chain Management

Responsible Procurement

• Ombudsman system for purchasing.
• Briefings and lectures to help suppliers understand AGC Group’s CSR concept.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products (Ecoglass, solar cell materials, fuel cells).

Reporting Standards

Frameworks Used: Sustainability Reporting Guidelines 2006, Global Reporting Initiative, Environmental Reporting Guidelines (2007), Japanese Ministry of the Environment

Certifications: ISO 14001, ISO 9001, ISO/TS 16949

Sustainable Products & Innovation

• Ecoglass
• Arsenic- and antimony-free glass
• Lead- and bismuth-free frit
• Chrome-free ceramics
• AsahiGuard E-SERIES

Awards & Recognition

• Eco-Efficiency Awards 2007 (AGC Environmental Indicator)
• PRTR Awards 2007 (Kashima Plant)
• Belgian Environment Prize (Mirox 3G)
• Best Safety Factory (AGC Flat Glass (Thailand))

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environment
• Safety
• Diversity
• Compliance
• Social Contribution
• Quality
• Customer Satisfaction

Environmental Achievements

• Asahi Glass achieved zero emissions (recycling of 99% or more of waste).
• Reduced CO2 emissions by 1% from the average value for 2006 and 2007 (Asahi Glass)
• Reduced VOC emissions by 46% from the fiscal 2001 level (Asahi Glass)
• Developed, manufactured, and sold environmentally friendly products, such as parts and materials for solar devices.

Social Achievements

• Obtained CSR-related certification from the Industrial Development Bureau of the Ministry of Industry (Thailand)
• Implemented a researcher exchange program between Japan and Belgium.
• Continuously exceeded the statutory employment rate of people with disabilities (1.97%).
• Won a Best Practice Workplace on Labor Relations and Labor Welfare Award for six consecutive years (Thailand).

Governance Achievements

• Implemented a global compliance system with Code of Conduct, Help Lines, and regular compliance meetings.
• Established the Nominating Committee and the Compensation Committee.
• Adopted a corporate auditor system.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to economic recession.
• Faster than expected market structure changes.
• Need to accelerate measures to respond to significant changes.
• Difficulties in recycling chemicals.
• Need to improve the effectiveness of risk assessment in implementing occupational health and safety management systems.

Mitigation Strategies

• Improved productivity and yield.
• Developed advanced technologies for new products.
• Enhanced business structure (establishing Glass, Electronics, and Chemicals Companies).
• Implemented measures to achieve zero emissions.
• Implemented a range of initiatives to “Deliver technology solutions for climate change”.
• Implemented a global internal audit system.
• Introduced a self-assessment program focusing on management quality.
• Mandated risk assessment in the design phase of equipment.

Supply Chain Management

Supplier Audits: 17 sites across the Group.

Responsible Procurement

• AGC Group Integrated Green Procurement Guideline
• Green procurement guidelines for each In-house Company/SBU
• AGC Group Purchasing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, typhoons, floods)

Transition Risks

• Changes in market structure
• Regulatory changes

Opportunities

• Development of energy-efficient products (Ecoglass, materials for photovoltaic devices)
• Development of new production technologies (in-flight melting).

Reporting Standards

Frameworks Used: GRI, Japanese Ministry of the Environment Publication

Certifications: ISO 14001, ISO 9001, ISO/TS 16949, OHSAS 18001

Sustainable Products & Innovation

• Ecoglass
• Materials and parts for photovoltaic devices
• LUMIFLON fluoropolymer for coatings
• LC-S1000 heat insulation material

Awards & Recognition

• Best-of-the-Best Stratospheric Ozone Protection Award (U.S. EPA)
• Highest ranking in the Financing Employing Environmental Ratings of the Development Bank of Japan
• Special award from the Development Bank of Japan
• Continuously Accident-free Award Class 1 Effort Prize (AGC Group CEO Awards)

Environmental Metrics

ESG Focus Areas

• Organizational Governance
• Human Rights and Labor Practices
• The Environment
• Fair Operating Practices and Consumer Issues
• Community Involvement and Development

Environmental Achievements

• Reduced CO2 emissions by 6% (sales-corrected)
• Reduced total energy consumption by 3% (sales-corrected)
• Reduced waste sent to landfill by 1%
• Increased recycling rate to 99.5%

Social Achievements

• Implemented “7 Key Principles for People” focusing on diversity, employee development, job satisfaction, and open communication.
• Achieved 81% employee participation in compliance training.
• Increased number of employees taking childcare/family care leave.
• Increased proportion of female employees to 11.7%.

Governance Achievements

• Established AGC Group Charter of Corporate Behavior.
• Implemented a global compliance system with help lines and reporting mechanisms.
• Implemented measures to prevent noncompliance with antitrust laws.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• AGC Group Purchasing Policy emphasizing fair trade, compliance, partnership, and information protection.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001 (83 plants), ISO 9001 and ISO/TS 16949 (133 organizations)

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

• Organizational Governance
• Human Rights and Labor Practices
• The Environment
• Fair Operating Practices and Consumer Issues
• Community Involvement and Development

Environmental Achievements

• Reduced CO2 emissions (specific figures not clearly stated, but trends show reduction)
• Improved recycling rates (99.8% for Asahi Glass)
• Reduced total wastewater volume (trends show reduction)

Social Achievements

• Implemented “7 Key Principles for People” focusing on diversity, employee development, and work environment
• High employee satisfaction scores (results from employee surveys)
• Social contribution activities totaling 383.7 million yen

Governance Achievements

• Established AGC Group Charter of Corporate Behavior
• Implemented a global compliance system with training and reporting mechanisms
• Established a global legal management system

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• AGC Group Purchasing Policy emphasizing fair trade, compliance, and partnership

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001 (multiple plants), ISO 9001 (multiple organizations), ISO/TS 16949 (multiple organizations)

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

• Organizational Governance
• Human Rights and Labor Practices
• The Environment
• Fair Operating Practices
• Consumer Issues
• Community Involvement and Development

Environmental Achievements

• 184 of 248 manufacturing plants obtained ISO 14001 certification; 129 plants participated in Integrated EMS
• Reduced utility-related energy use at main plants in Japan by 15.6% compared to 2012
• Reduced energy use per unit area of main offices in Japan, Europe, and the Americas by 19.5% from 2011 levels
• Global recycling rate of 96.7%

Social Achievements

• Implemented voluntary inspections of human rights and labor practices at 189 Group companies globally
• Implemented the 4th ES survey to approximately 40,000 employees; response rate was 82.4%
• Hosted the AGC Group CEO Awards 2013 and granted 138 commendations
• Standardized reporting formats and began to globally collect occupational accident data

Governance Achievements

• Completed revisions of the AGC Group Code of Conduct (12 types in 18 languages) and disseminated them to Group employees worldwide
• Achieved compliance-related training for approximately 16,500 employees (online and classroom)
• Conducted 59 internal audits in the Group and continued to audit the establishment of frameworks for antitrust law compliance systems and for preventing the leakage of confidential information as global audit items

Climate Goals & Targets

Environmental Challenges

• One fatal accident occurred within the AGC Group in 2013
• Environment-related sales ratio fell two points from fiscal 2012
• In Europe, the expansion of the scope of shop-floor workers requested to submit personal certifications is behind schedule

Mitigation Strategies

• Developed guidelines on four Group-wide high-risk themes through the Serious Accident Eradication Project and determined future promotion methods
• Established and implemented action plans for ES improvement activities at each workplace based on the results of the 4th ES survey
• Set mid- to long-term targets for renewable resource usage rates and promote reuse initiatives

Supply Chain Management

Supplier Audits: 45 Group companies and divisions (2013)

Responsible Procurement

• AGC Group Purchasing Policy (established in 2009)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000

Certifications: ISO 14001, ISO 9001, ISO/TS 16949

Awards & Recognition

• 138 AGC Group Awards (2013)
• CSR-DIW Contribution Award (Thailand)

Environmental Metrics

ESG Focus Areas

• Organizational Governance
• Human Rights and Labor Practices
• The Environment
• Fair Operating Practices
• Consumer Issues
• Community Involvement and Development

Environmental Achievements

• Reduced CO2 emissions (specific figures not readily available, but progress is mentioned)
• Reduced energy use per unit area of main offices by 31.5% from 2011 levels
• Achieved a 96.7% global recycling rate
• Zero fatal accidents throughout the entire Group (including business partners)

Social Achievements

• Implemented ES improvement activities at each workplace
• Hosted the 2014 AGC Group CEO Awards, presenting 127 awards
• Continued practical training for safety patrols, with over 600 individuals trained in Japan since 2012
• Expanded the scope of registrants of Skill Map
• Implemented compliance training for approximately 14,300 employees

Governance Achievements

• Continued to be selected by major SRI Indexes, including Ethibel, MSCI, MSSRI (Morningstar), and DJSI World Index for the fourth year in a row
• Implemented 45 internal audits in the Group
• Communicated business and CSR activities to stakeholders through the AGC Report 2014

Climate Goals & Targets

Environmental Challenges

• Low implementation rate of Prior Safety Assessments when installing manufacturing equipment at some Asian production sites
• Increase in accidents related to machinery safety practices at Asian sites
• Some regions lagging behind in recycling

Mitigation Strategies

• Promoted project launch and operation establishment at production sites in Asia with low Prior Safety Assessment implementation rates
• Developed the safety training curriculum based on past occupational accidents
• Set mid- to long-term targets for renewable resource usage rates and promote reuse initiatives

Supply Chain Management

Supplier Audits: CSR Implementation Survey for major business partners in Europe and North America

Responsible Procurement

• AGC Group Purchasing Policy (details provided in the report)

Climate-Related Risks & Opportunities

Opportunities

• Development and supply of energy-saving and energy-creating products

Reporting Standards

Frameworks Used: ISO 26000

Certifications: ISO 14001, ISO 9001, ISO/TS 16949

Sustainable Products & Innovation

• Energy-saving and energy-creating products

Awards & Recognition

• 127 AGC Group Awards won in 2014
• CSR-DIW Contribution Award (Thailand)

Environmental Metrics

ESG Focus Areas

• Organizational Governance
• Human Rights and Labor Practices
• The Environment
• Fair Operating Practices
• Consumer Issues
• Community Involvement and Development

Environmental Achievements

• Achieved yearly target (175,000 tons) for reduction of CO2 emissions by 2020 through use of cullet (excluding products from the glass melting process) for the second consecutive year
• Reduced energy use per unit area of main offices in Japan, Europe and the Americas by 30% from 2011 levels
• Global recycling rate was 96.8% (96.7% in 2014)

Social Achievements

• Implemented ES improvement activities at each workplace.
• Hosted the 2015 AGC Group CEO Awards, and presented 119 awards.
• Expanded the scope of registrants of the Skill Map

Governance Achievements

• Continued to be selected by major SRI Indexes, including, for the first time, the FTSE4Good Global Index, as well as Ethibel, MSCI, MS-SRI (Morningstar)
• Globally conduct audits regarding the creation of measures for preventing bribery and corruption, in addition to frameworks for antitrust law compliance systems and for preventing the leakage of confidential information
• Implemented compliance training by region.

Climate Goals & Targets

Environmental Challenges

• Two fatal accidents occurred throughout the entire Group (including business partners)
• Discrepancy in risk management levels was found between sites
• The AGC Environmental Indicators increased in comparison to 2014

Mitigation Strategies

• All Group divisions work to ensure greater permeation of the measures determined in the Serious Accident Eradication Project
• Continue safety promotion activities, promoting improvements in daily health and safety, as well as risk assessment
• Revised Integrated EMS Manual to conform to the ISO14001-2015 revisions as a Group priority

Supply Chain Management

Responsible Procurement

• AGC Group Purchasing Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000

Certifications: ISO 14001, ISO 9001, ISO/TS 16949

Awards & Recognition

• CSR-DIW Contribution Award

Environmental Metrics

ESG Focus Areas

• Organizational Governance
• Human Rights and Labor Practices
• Environment
• Fair Operating Practices
• Consumer Issues

Environmental Achievements

• Reduced CO2 emissions by 202,000 tons through glass cullet utilization (excluding products created in the glass melting process), meeting the target for 2020 (175,000 tons) for 3 consecutive years
• Achieved the 2020 target for total waste generation in terms of basic units
• Recycled resource utilization rate 8%
• Reduced office energy use by 31% compared to 2011

Social Achievements

• Fifth ES survey carried out in 21 languages in November 2016, targeting around 43,500 employees
• 127 projects received awards through the awards system
• No fatal accidents throughout the entire Group (including business partners)

Governance Achievements

• Internal control regarding financial reporting was evaluated as being effective in 2016, and an external auditor confirmed the appropriateness of the system in its evaluation
• Continued to be selected for major SRI indices including Ethibel, MSC and Sustainalytics and newly selected for the FTSE 4 GOOD Global Index
• Formulated and put into operation the AGC Group Anti-Bribery Rules and Anti-Bribery Guidelines (China Version)

Climate Goals & Targets

Environmental Challenges

• Recycling rate was approximately the same as the previous year.
• The AGC Environmental Indicators were the same as 2015
• Some inadequacies in operational management, in areas such as maintenance of instruction manuals and education, were pointed out in the internal audit
• Inadequate participation of facility users
• Reorganization and integration of the training system was not completed

Mitigation Strategies

• Promote recycling of various types of glass cullet for use in building and other applications
• Promote activities to lower the level of the AGC Environmental Indicator for greenhouse gases to 1.3 or less.
• All Group divisions will work together to ensure greater permeation of the measures determined in the Serious Accident Eradication Project and manage operations based on the established rules
• Designers and machine users perform increased two-way information exchange, working as One Team to reduce risk at the mechanical equipment layout and design stage through risk assessment methods.
• Rearrange and integrate aspects of the former training system to create an improved system

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• AGC Group Purchasing Policy
• CSR procurement Surveys
• Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Damage from heavy rains, floods or tsunamis

Transition Risks

• Strengthening environmental regulations

Opportunities

• Development and sales of products that prevent or reduce damage in the event of a natural disaster

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001, ISO 9001, ISO/TS 16949

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Eco-Glass
• CoolverreTM
• LightjouleTM
• SunjouleTM
• LeoflexTM
• SunmaxTM Premium
• Fluon® ETFE FILM
• LumiflonTM
• AsahiGuardTM E-SERIES
• HFO-1234yf
• ACLESYATM
• ExcenolTM
• FlemionTM
• Tough CooreTM

Awards & Recognition

• CSR-DIW Contribution Award (Thailand)

Environmental Metrics

ESG Focus Areas

• Organizational Governance
• Human Rights and Labor Practices
• Environment
• Fair Operating Practices
• Consumer Issues
• Society

Environmental Achievements

• Achieved 97.1% waste recycling rate (0.5% improvement from previous year)
• Reduced CO2 emissions by 152,000 t-CO2 from glass cullet use (excluding products from glass melting process)
• Installed photovoltaic panels at various sites, generating 25,810,000 kWh in Japan and 8,880,000 kWh in Europe
• Reduced water usage by 71% since 1998 at AGC Glass Europe

Social Achievements

• AGC Flat Glass (Thailand) Public received the CSR-DIW Award for the ninth consecutive year
• AGC Automotive Thailand received the Best Practice Workplace on Labor Relations and Labor Welfare Award for the 14th consecutive year
• Implemented various employee well-being initiatives, including a shortened working hour system and childcare leave system
• Conducted ES surveys to improve organizational climate and employee satisfaction

Governance Achievements

• Established a global compliance system with a Chief Compliance Officer and regional compliance committees
• Implemented ongoing compliance training and online programs
• Conducted internal audits focusing on antitrust law compliance, information security, anti-bribery, and data accuracy

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Difficulty promoting zero emissions in emerging countries lacking recycling infrastructure
• Failure to procure cullet meeting quality standards
• Quality issue at AGC Techno Glass (centrifuge tubes lacking a test criterion)

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented measures to reduce total waste and promote zero-landfill
• Strengthened quality assurance and shipping management
• Re-examined quality assurance certification system

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• AGC Group Purchasing Policy
• CSR procurement surveys
• Conflict minerals assessment

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, floods, heavy rains, tsunamis)

Transition Risks

• Changes in environmental regulations
• Market shifts towards sustainable products

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001, ISO 9001, ISO/TS 16949, SA8000

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

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-Glass
• CoolverreTM
• LightjouleTM
• LumiflonTM
• HFO-1234yf

Awards & Recognition

• CSR-DIW Award
• Best Practice Workplace on Labor Relations and Labor Welfare Award
• Social Responsibility Award (Czech Republic)
• Best Employer of the Ústí Region (Czech Republic)
• Responsible Care Award (Japan Chemical Industry Association)
• Good Risk Sense Award
• METI Minister Award
• Special prize for actions against global warming (Chiyoda Ward, Tokyo)

Environmental Metrics

ESG Focus Areas

• Organizational Governance
• Human Rights and Labor Practices
• Environment
• Fair Operating Practices
• Consumer Issues
• Society

Environmental Achievements

• Recycled resource utilization rate: 19.2%
• Zero emissions: 97.8%
• Reduced CO2 by using glass cullet by 240 kt-CO2
• Globally implemented energy-saving measures to thoroughly eliminate waste
• Achieved a COD goal of 0.3 in accordance with the AGC Environmental Indicator

Social Achievements

• Retention rate of new employees in 2019: 91.4%
• Zero fatal accidents throughout the entire Group (including business partners)
• 23.9% of new graduates hired in 2019 were female
• Implemented measures to improve employee engagement based on a 2019 survey
• Introduced several systems for employees who care for children and family members

Governance Achievements

• Internal control regarding financial reporting was evaluated as being effective in 2018
• Implemented 45 internal audits focusing on compliance with antitrust laws, information security management, anti-bribery control, and data accuracy
• Formulated and implemented Anti-Bribery Guidelines (Indonesia Version)
• Introduced a system in which its employees periodically submit a personal certification to follow the AGC Group Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Exceedance of increase rate of Greenhouse gas emissions due to additional onsite power generator than sales increase resulted in worsening of index figure.
• Improper Acts Related to the Quality of Heat-resistant Steel Casting Anchors for Refractories at AGC Plibrico
• Some areas saw an increase in occupational accidents despite long-term downward trend
• Water damage at AGC Pharma Chemicals Europe due to a flood in Spain

Mitigation Strategies

• Globally implemented energy-saving measures to thoroughly eliminate waste
• AGC Plibrico stopped supplying the product, commissioned an external organization to analyze the chemical components in company inventory, conducted a simulation to confirm the safety of the nonconformant products, and explained the details of this matter and the verification results to all domestic customers.
• Developing a system to collect global accident data and sharing this information laterally
• All Group companies thoroughly implement prevention measures to prevent similar flood damage

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• AGC Group Purchasing Policy
• Request for Cooperation in Sustainable Procurement
• CSR procurement surveys
• Policy Briefing for Business Partners

Climate-Related Risks & Opportunities

Physical Risks

• Effects on operations and logistics due to natural disasters
• Effects on operations and logistics due to inundations
• Heatstroke in hot workplaces

Transition Risks

• Cost increases due to carbon pricing
• Increased costs to realize the transition to low carbon technology
• Decrease in demand for existing products

Opportunities

• Cost reductions through more efficient use of resources
• Diversification of raw material options
• Development and sales promotion of products that contribute to climate change mitigation and adaptation
• Access to new markets

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 14001, ISO/IATF 16949

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd. (Limited assurance of the GHG emissions)

Sustainable Products & Innovation

• Eco-Glass
• Alternative fluorocarbons
• Ion exchange membranes
• Uniporous (biological filter material)

Awards & Recognition

• Minister of Economy, Trade and Industry Award (Resources Recirculation Technologies and Systems)
• CDP Water Security A List
• Hokkaido Certified Recycled Product

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Reduced GHG emissions by 5.6 times the volume of total CO2 emissions in 2019 (though this fell short of the target due to factors like increased renewable energy use in Europe)
• Achieved zero HCFC emissions in the manufacture of M.S. GEL in 2014 and is working towards zero emissions in SUNSPHERE production.
• Reduced fluorocarbon leakages to 12,721t-CO2 in fiscal 2019 from 42,580t-CO2 in fiscal 2018 by strengthening refrigeration unit management and improving refrigerant recovery.

Social Achievements

• Improved employee engagement, as shown by increased positive response rates in employee engagement surveys.
• Increased the percentage of female employees in management positions.
• Expanded employment opportunities for people with disabilities, exceeding the legally mandated employment rate.

Governance Achievements

• Strengthened internal control system, with internal controls regarding financial reporting evaluated as effective.
• Established a Chief Compliance Officer (CCO) responsible for developing the compliance framework and promoting compliance.
• Implemented compliance training programs globally.

Climate Goals & Targets

Environmental Challenges

• Climate change, including stricter energy-related policies and regulations, and growing calls for net-zero emissions.
• Effective use of resources, including concerns about stricter regulations on depletable resources and higher water demand.
• Supply chain risks related to illegal employment, environmental regulations, and potential regulatory violations.

Mitigation Strategies

• Established long-term strategies and sustainability targets to address climate change and resource use.
• Developed alternative sourcing strategies and implemented supplier selection based on respect for human rights and environmental protection.
• Implemented risk management measures to mitigate challenges related to natural disasters, resource procurement, and overseas business development.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green Procurement Guidelines
• Supplier CSR Survey
• Responsible mineral procurement

Climate-Related Risks & Opportunities

Physical Risks

• Short-term effects on operations and logistics due to natural disasters
• Long-term effects on operations and logistics due to rising sea levels and increased storm frequency
• Heatstroke in hot workplaces

Transition Risks

• Cost increases due to carbon pricing
• Increased costs for low-carbon technology transition
• Decreased demand for existing products

Opportunities

• Cost reductions through efficient resource use
• Diversification of raw material options
• Development and sales of climate-change mitigation and adaptation products
• Access to new markets

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 14001 (at various sites), ISO 45001 (at various sites), CSR-DIW (AGC Flat Glass (Thailand)), Cradle to Cradle Certified™ (AGC Glass Europe)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Ecology glass
• Cool verre™
• SUNJOULE™
• AMOLEA™
• FORBLUE™ i-Series
• LUMIFLON™
• F-CLEAN™

Awards & Recognition

• Minister of the Environment Award (Japan Association for Chemical Innovation’s Green and Sustainable Chemistry Awards for AMOLEA™)
• Minister of Economy, Trade and Industry Award (Awards for Resources Recirculation Technologies and Systems)
• CDP Water Security A List

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Resource Efficiency
• Health and Safety

Environmental Achievements

• Increased the percentage of glass-melting furnaces fueled by natural gas from 46.0% to 93.0% between 2010 and 2020.
• Launched Lacobel T Active building-integrated photovoltaic (BIPV) module.

Social Achievements

• Improved employee engagement in all categories compared with 2016 survey results.
• Initiatives to retain employees at AGC Automotive (Foshan) Inc. in China, including improving workplace conditions and strengthening employee ties.

Governance Achievements

• Strengthened corporate governance through annual evaluations and analysis of Board effectiveness.
• Set numerical targets for increasing the percentages of female directors, executive officers, and managers by 2030.

Climate Goals & Targets

Environmental Challenges

• Delayed recovery of automobile production and sales due to the prolonged effect of the COVID-19 pandemic or shortage of semiconductor supplies
• Market volatility in the electronics industry
• Trend toward stricter regulation of fluorochemicals
• Shortage of personnel due to the expansion of the CDMO market
• Shortage of materials in the Life Science Business

Mitigation Strategies

• Implementing production system reform and fixed cost reduction measures.
• Accelerating the shift toward high-value-added products to enhance profitability and asset efficiency.
• Developing products that meet customers’ increasingly advanced needs and capture niche demand globally.
• Developing products and process technologies in anticipation of environmental regulations and turning them into business opportunities.
• Expanding businesses through timely investments.
• Securing sufficient talented personnel for business expansion through global hiring, utilizing shared services, and transferring personnel between sites.

Supply Chain Management

Responsible Procurement

• Green procurement
• Conflict minerals policy

Climate-Related Risks & Opportunities

Physical Risks

• Short-term Effects on operations and logistics due to natural disasters such as heavy rainfall, floods, and droughts
• Effects on operations and logistics due to inundations caused by long-term rising sea levels, greater frequency of storms, and typhoons stemming from an average global temperature increase

Transition Risks

• Cost increases due to carbon pricing, such as a carbon tax, and other expanded regulations on GHG (greenhouse gas) emissions
• Increased costs to realize the transition to low-carbon technology, such as establishment of manufacturing methods that do not require fossil fuels
• Decrease in demand for existing products due to changes in consumer preferences

Opportunities

• Increased demand for products that can reduce energy consumption when final products are used, such as eco-glass
• Stronger demand for new environmentally friendly coolants with low global warming potential (GWP)
• Development and sale of products that contribute to the alleviation of and adaptation to climate change
• Access to new markets leveraging the strengths of the Group's technologies

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation (Ministry of Economy, Trade and Industry, Japan), TCFD

Sustainable Products & Innovation

• Low-E double-glazing glass
• Alternative fluorocarbons with low global warming potential
• Ion exchange membranes that contribute to the production of drinking water and water reuse
• Vacuum-insulating glass
• AMOLEA™ next-generation environment-friendly refrigerants and solvents
• Lacobel T Active BIPV module

Awards & Recognition

• Belgian Prize for Energy and the Environment 2019
• Clarivate Top 100 Global Innovators 2022 (7th time, 5th consecutive year)
• CDP Climate Change 2021 rating of A–
• White 500 company (2022 Certified Health & Productivity Management Outstanding Organizations Recognition Program)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Preservation of Natural Capital
• Diversity, Equity & Inclusion
• Human Rights

Environmental Achievements

• Launched Low-carbon glass with 40% lower carbon footprint than standard float glass.
• Agreed with Saint-Gobain to jointly develop technology to significantly reduce CO2 emissions during float glass manufacturing.
• Set Scope 3 GHG emission reduction target.
• Achieved A-list rating from CDP for climate change.
• Obtained SBTi's "well-below 2℃" certification.

Social Achievements

• Improved employee engagement scores in all categories.
• Established Diversity Council chaired by CEO.
• Set targets for female executives and managers.
• Launched "Job Challenge" internal side hustle program.
• Implemented "Recognize" platform for peer-to-peer recognition and appreciation.

Climate Goals & Targets

Environmental Challenges

• Decreased demand for display glass.
• Increased raw material prices.
• Supply chain disruptions due to geopolitical factors.
• Need to reduce GHG emissions.
• Need to improve asset efficiency.

Mitigation Strategies

• Structural reforms in core businesses (e.g., divestment of assets).
• Focus on high-value-added products.
• Investment in high-growth strategic businesses.
• Implementation of internal carbon pricing.
• GHG emission reduction initiatives (e.g., fuel switching, oxygen combustion).

Supply Chain Management

Supplier Audits: 26 suppliers audited in 2022 (CDP program).

Responsible Procurement

• AGC Group Purchasing Transaction Code of Conduct
• Sustainable procurement practices
• Engagement with suppliers on GHG emission reduction.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather events

Transition Risks

• Carbon pricing
• Customer demand for GHG emission reductions

Opportunities

• Growth in building renovation market
• Growth in ZEV market
• Growth in next-generation refrigerants and solvents market

Reporting Standards

Frameworks Used: International Framework, Value Co-creation Guidance

Certifications: Null

Third-party Assurance: Not disclosed

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)

AGC's initiatives contribute to these goals through sustainable product development, GHG emission reduction, resource efficiency, and responsible supply chain management.

Sustainable Products & Innovation

• Low-carbon glass
• Building-integrated photovoltaic modules
• Environmentally friendly next-generation refrigerants and solvents
• Fuel cell-related materials

Awards & Recognition

• Clarivate Top 100 Global Innovators 2023 (6th consecutive year)
• Innovation Momentum 2023: The Global Top 100
• CDP A List for Climate Change 2022
• SBTi's "well-below 2℃" certification

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Community Relations and Environmental Stewardship
• Human Capital

Environmental Achievements

• Successful demonstration test of glass production using hydrogen as fuel
• Successful recycling demonstration test of solar panel cover glass
• Implementation of actions to substantially reduce GHG emissions, such as partial electrification of production furnaces, development of breakthrough low-carbon production technologies and increased use of recycled glass

Social Achievements

• Launched initiatives to improve employee engagement
• Established the AGC Group CEO Awards to recognize and praise employees' efforts
• Expansion of the AGC Yokohama Technical Center to meet strong demand for biopharmaceuticals development and manufacturing services

Governance Achievements

• Reform of the Board of Directors to promote more active discussions
• Introduction of a new share-based compensation plan to motivate officers to contribute to the improvement of corporate value
• Annual analysis and evaluation of the effectiveness of the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Addressing climate change (reduction of GHG emissions from float glass furnaces, among others.)
• Emergence of fierce competition as a result of oversupply in the region
• The adverse economical environment triggered by the unexpected hike of energy price in Europe
• Delay in launching new lines in the US biopharmaceutical CDMO business
• Reduction in early-stage pharmaceutical development projects due to a temporary decrease in capital inflow to biotech startups
• Pro/f_itability of Display business
• Quickly rebuilding the U.S. biopharmaceuticals CDMO business

Mitigation Strategies

• Formulating measures based on the projected CO2 emission factor for electricity power in each country
• Promoting companywide business portfolio assessments, investments to reduce Scope 1 and 2 emissions, and the operation of an internal carbon pricing system
• Implementing drastic measures and started commercial operations at the end of 2023
• Implementing actions that will contribute to reduce substantially GHG emissions, such as partial electri/f_ication of production furnaces, development of breakthrough low-carbon production technologies and increased use of recycled glass
• In Europe, capture the solid demand of Renovation Wave through the integration of value chain from upstream to downstream, while securing “resilience” against economic /f_luctuations
• In Europe, secure pro/f_itability by reducing GHG emissions to minimize carbon-related cost through the timely implementation of competitive sustainability actions/technologies
• In South America, keep high ROCE by executing our strength of “business excellence”
• Develop opportunities to grow our business and to improve ROCE further

Supply Chain Management

Responsible Procurement

• Green procurement
• Responsible minerals sourcing policy

Climate-Related Risks & Opportunities

Physical Risks

• Sudden disasters (Floods and storm surges)
• Water stress
• Rising temperatures

Transition Risks

• Increase in carbon prices
• Customer demands to reduce GHG emissions

Opportunities

• Building renovation market
• Solar power generation market
• Hydrogen-related market
• Electric vehicle / fuel-cell vehicle market
• Next-generation coolants and solvents market

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 7
• Goal 12
• Goal 13

The number of patents held by AGC that are related to products classi/f_ied under Sustainable Development Goals (SDGs) associated with contributions to a low-carbon society (SDGs 7, 12, and 13) has increased.

Sustainable Products & Innovation

• Vacuum-insulating glass FINEO™
• BIPV
• AMOLEA®1234yf
• AMOLEA®1224yd
• Glass core substrates for next-generation semiconductor packages
• FORBLUE™ series of fluorine-based electrolyte polymers

Awards & Recognition

• Selected as one of the “100 Innovative Companies Leading the Future of Science and Technology Worldwide” in the “Innovation Momentum 2024: The Global Top 100” report