Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Stakeholder Engagement
• Supply Chain Management
• Human Rights
• Environmental Responsibility

Environmental Achievements

• Achieved a Silver rating in the 2021 EcoVadis sustainability assessment (top 25%)

Social Achievements

• Partnered with stakeholders including shareholders, employees, clients, and the local community.
• Adhered to the principles of the Partnership Building Declaration promoted by the Cabinet Office of Japan.

Governance Achievements

• Transitioned to a holding company structure to facilitate faster decision-making and non-continuous growth.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on sales of certain products (e.g., Etak®).

Mitigation Strategies

• Continued efforts to achieve the goals outlined in the medium-term plan (Manac Medium-Term Plan 2021).

Supply Chain Management

Responsible Procurement

• Partnering with suppliers to build fair trading conditions and promote co-prosperity throughout the supply chain.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EcoVadis

Environmental Metrics

ESG Focus Areas

• SDGs
• Human Capital
• Innovation
• Supply Chain

Environmental Achievements

• Not disclosed

Social Achievements

• Introduced a WEB-based training program for employees in July 2021 to improve skills and well-being.
• Implemented a work-from-home system.

Governance Achievements

• Strengthened the holding company system.
• Appointed new officers at the ordinary general meeting of shareholders in June 2022.

Climate Goals & Targets

Environmental Challenges

• Global and alliance-related activities were affected by domestic movement restrictions and overseas travel restrictions.
• Progress on generic drug intermediates was unsatisfactory.
• Target for overseas ratio in 2022 was not met.

Mitigation Strategies

• Accelerated ICT/IoT, including updating the internal core system.
• Increased production capacity for pharmaceuticals.
• Continued efforts to expand sales of flame retardants in the Chinese market and iodides in Europe.

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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions (linked to energy savings from initiatives like boiler fuel conversion, efficiency improvements, and power reduction)
• Reduced waste through improved processes and recycling initiatives
• Achieved 2000 days without accidents

Social Achievements

• Implemented various working style reforms, including flexible work arrangements and remote work options, leading to improved employee satisfaction and work-life balance.
• Continued support for local community activities, including sponsoring local events and participating in cleanup efforts.
• Achieved 71% annual leave rate, exceeding the national average.

Governance Achievements

• Established an environmental management system based on ISO 14001:2015.
• Implemented a robust compliance system, including an internal reporting system and compliance committee.
• Developed and implemented a business continuity plan (BCP).

Climate Goals & Targets

Environmental Challenges

• Significant decrease in demand for flame retardants for plastics, resulting in operating and ordinary losses.
• Need to further reduce energy consumption despite shifts to higher value-added products.

Mitigation Strategies

• Implementing a group medium-term plan (2024-2027) focusing on business restructuring and expansion, including growth investments.
• Focusing on cost reduction and efficiency improvements across various business segments.
• Continued efforts in energy saving and waste reduction.

Supply Chain Management

Supplier Audits: Resumed domestic audits in 2022, expanding to overseas in late 2023

Responsible Procurement

• Purchasing Basic Policy emphasizing fair and equitable practices, compliance with laws and regulations, and building trust with suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines, Environmental Agency of Japan's Environmental Reporting Guidelines

Certifications: ISO 14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Wood-plastic composite (WPC) materials

Awards & Recognition

• Health Management Excellent Company 2024 (Small and Medium-sized Enterprise Division)