Fiscal 2021 Highlights of Sustainability Activities

We aim to deliver safety and reliability as well as achieve harmony with the environment and coexistence with society. We are working to contribute to the realization of a sustainable society by resolving various issues facing society through our businesses, including energy issues and environmental issues, linking all our activities to the SDGs. Toward that end, we carry out activities focused on social issues and businesses in need of attention in a steady manner while establishing plans and targets.

Issues related to ensuring harmony with environment

Environmental initiatives391213

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Reduction in CO2emissions Domestic 45% reduction
from fiscal 2005*1
47% reduction
from fiscal 2005*1
72% reduction
from fiscal 2013*2
Overseas 23% reduction
from fiscal 2005*1
16% reduction
from fiscal 2005*1
40% reduction
from fiscal 2013*2
Reduction in material loss Domestic 38% reduction
from fiscal 2005*1
30% reduction
from fiscal 2005*1
38% reduction
from fiscal 2013*2
Overseas 60% reduction
from fiscal 2005*1
52% reduction
from fiscal 2005*1
35% reduction
from fiscal 2013*2
Reduction in chemical substance emissions Domestic 45% reduction
from fiscal 2005*1
74% reduction
from fiscal 2005*1
75% reduction
from fiscal 2013*2
Overseas 54% reduction
from fiscal 2010*1
48% reduction
from fiscal 2010*1
50% reduction
from fiscal 2013*2

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

  • *1 Targets and results for fiscal 2021 exclude SB Kawasumi Group data.
  • *2 As for the target for fiscal 2022, on the including the SB Kawasumi Group, the base year was changed from fiscal 2005 (with fiscal 2010 partially serving as the base year) to fiscal 2013.

Resource and energy conservation79

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Energy conservation activities As in fiscal 2020, continue to provide technical support by establishing an energy conservation plan and raising the level of energy-saving technology by sharing information across all our business sites in Japan, and to achieve this overseas by promoting the rollout of best practices through collaboration between the mother plants in Japan and offices throughout the company. In Japan, the implementation of the concrete plan reduced the energy equivalent of crude oil equivalent 1,433 kL. As part of our efforts to promote CN, we switched all purchased electricity to electricity derived from renewable energy at all plants and research laboratories in Japan in January 2022. Overseas, we reduced energy consumption by 2,607 kL in crude oil equivalent by continuing to promote the rollout of best practices. In addition, three Europe-based Group companies have switched to electric power derived from renewable energy. As in fiscal 2021, continue to provide technical support by establishing an energy conservation plan and raising the level of energy-saving technology by sharing information across all our business sites in Japan, and to achieve this overseas by promoting the rollout of best practices through collaboration between the mother plants in Japan and offices throughout the company. In addition, the installation of solar power generation facilities is examined at each of the bases in Japan and overseas as CN promotion.

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

Themes for providing safety and reliability

Safety and security8

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Prevention of occupational accidents Major Accidents: In Japan 0 Major Accidents: In Japan 0 Major Accidents: Overseas 0
Major Accidents: Overseas 0 Major Accidents: Overseas 0 Major Accidents: Overseas 0
Security and disaster prevention Major Accidents (Fires/Explosions): 0 Major Accidents (Fires/Explosions): 0 Major Accidents (Fires/Explosions): 0
Leakage-related incidents: 0 Leakage-related incidents: 0 Leakage-related incidents: 0

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

Chemical Substance12

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Chemical substance management
• Strengthening our management system: Establishment of chemical substance qualitative & quantitative measurement function, labeling system
• Promoting legal & regulatory compliance in each country: Information monitoring and policy formulation for countries planning to introduce new chemical substance reporting systems, Thailand, Vietnam
• Developed the quantity counting function of Japan’s Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, and made a report about it in 2021. The labeling system should be controlled to avoid inconsistencies with the SDS.
• Progress is not being seen in Thailand and Vietnam. We are continually monitoring those countries.
• Strengthening the comprehensive management system: Preparation of raw materials data. System efficiency study on reach quantity monitoring.
• Promotion of compliance with laws and regulations in each country: Monitoring information and establishing policies for the reform of laws and regulations concerning chemical substances in Japan and overseas. Implementation of measures accompanying the revision of the Law for Promotion of Chemical Management and the Health Act.

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

Product liability12

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Monozukuri’ auditing
• In Japan: Nine business sites under our direct control/belonging to subsidiary companies
Overseas: Specify priority business sites in China and Southeast Asia, as well as North America and Europe
• We will follow up on whether the proper daily routine activities are being maintained.
• Placed emphasis on raising the level at which we uncover genuine issues through internal auditing, we have begun carrying remote auditing trials to facilitate the implementation of division audits as needed (determining the subject business sites).
• In Japan: Eight business sites under our direct control/belonging to subsidiary companies
Overseas: Designated one of the main business offices from the China region for audit.
• In addition to step-by-step education before and after the audit, remote audit trials were carried out at three offices in Japan and one overseas office in order to enhance internal audit.
• In Japan: Nine business sites under our direct control/belonging to subsidiary companies
Overseas: Specify priority business sites in China and Southeast Asia, as well as North America and Europe
• Improve system to further enhance internal audits.

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

Themes that affect society

Biodiversity15

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Conservation Biotope
• Continue with self-led conservation activities
• Continue to be open with the public, communicate externally, and hold meetings with schools.
• Promoted conservation through voluntary activities (maintenance by the relevant parties) and site-wide activities (beautification activities within business sites)
• The Conservation Biotope had to be closed to the general public as a measure to prevent the spread of COVID-19, so the total number of public visitors was just 14.
• Due to ongoing dialogue with schools, 282 schoolchildren visited on school excursions.Also, visiting guest lessons were presented at one school (for a total of 83 students in 3 classes).
• Continue with self-led conservation activities.
• Continue to be open to the public and communicating externally, as well as regular meetings with schools.
Initiative to protect forest ecosystems
• Continuing to support forest thinning mainly in Iwate Prefecture through the use of Paper Products that Contribute to Forest Thinning (Forest Neighborhood Association).
• Contributed to thinning of 0.45 ha of forest by using 6773 kg of paper from the Forest Neighborhood Association.
• Continuing to support forest thinning mainly in Iwate Prefecture through the use of Paper Products that Contribute to Forest Thinning (Forest Neighborhood Association).

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

Improvement of stakeholder satisfaction 8

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Improvement of customer satisfaction
• Together with e-learning and product study sessions, cross- divisional activities continued.
• In order to strengthen our ability to explain and propose to customers, we held a meeting to share information on our environmental policies and digital utilization. The number of participants exceeded 200. E-learning was also held continuously for product study meetings and domestic and overseas audiences.
• Activities until last year will continue, and we will also strengthen human resource development elements to ensure customer trust. In particular, they also share personal know-how.
Dissemination/ Advertising of company information
• Develop and update contents for information dissemination tools through a wide range of media including external advertising, billboards, and websites.
• Provide company-wide support for social contribution activities.
• Continued to provide support for the Japan Inclusive Football Federation, which the company signed a partnership agreement with.
• Develop and update contents for information dissemination tools through a wide range of media including external advertising, billboards, and websites.
• Provide company-wide support for social contribution activities.

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

Improvement of stakeholder satisfaction
37891213+14

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Development of SDG- contributing products
• Increase sales revenue of SDG-contributing products and technologies.
(fiscal 2023 target: 50% or higher)
• Increase sales revenue of SDG-contributing products and technologies.
(37.2% in fiscal 2020 to 48.1% in fiscal 2021)
• Increase sales revenue of SDG-contributing products and technologies.
(fiscal 2023 target: 50% or higher)

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

Human resource training58

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Internal human resource training
• Continue to carry out employee training at SB School*3.
• Continue to carry education for management staff.
• Approx. 42,000 hours of education provided to a total of around 28,000 employees.
• Continue to carry out employee training at SB School*3.
• Continue to carry education for management staff.
Women’s empowerment
• Continue a ratio of female career- track recruits of 20% or greater.
• Ratio of women hirees: 20% (6 of 30 hirees recruited upon graduation).
• Carried out unconscious bias education for newly appointed management staff in fiscal 2021.
• Continue a ratio of female career- track recruits of 20% or greater.

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

  • *3 SB School is an internal educational institute for all employees, from new recruits to corporate officers.

Diversity and work-life balance
358

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Employment of people with disabilities
• Employment rate of people with disabilities: Maintain at 2.3% level.
• Continued internships for people with disabilities.
• The employment rate for persons with disabilities: 2.63% (the statutory employment rate has been raised to 2.3% since March 2021).
• Internships accepted from schools for the deaf (three from three schools, one of which was hired in March 2022).
• Employment rate for persons with disabilities: Maintain statutory employment rate of 2.3%or more.
• Continued internships for people with disabilities.
Work style reform
• Continue to support work with both childcare & nursing care.
• Shorten prescribed work hours for employees working during daytime hours.
• A 100% rate of returning to work after taking childcare leave or nursing care leave.
• 17 persons (+10 persons) took childcare leave in fiscal 2021 and 0 persons (▲ 1 persons) acquired nursing care leave.
• Special operation of the flex-time system for cancer patients started.
• The number of holidays increased by two days (120 to 122) and the number of hours decreased by 1878.3 to 1863) for daytime workers.
• Continue to support work with both childcare & nursing care.
• Promotion of acquisition of parental leave for men and birth leave.
• Shorten prescribed work hours for shift workers.
• Increase in the number of days of simultaneous downtime at the production plant.
Promoting employee health
• Continue implementing the Data Health Plan, preventing the worsening of illnesses in our company and certain Group companies in Japan.
• Continue to achieve a 100% rate of employees receiving regular scheduled health checks.
• Promote the subsidy system for outpatient smoking cessation treatment.
• Continued efforts to prevent illnesses from becoming severe.
• Achieve a 100% rate of employees receiving regular scheduled health exams.
• No users of the subsidy system for outpatient smoking cessation treatment.
• Continue implementing the Data Health Plan, preventing the worsening of illnesses in our company and certain Group companies in Japan.
• Continue to achieve a 100% rate of employees receiving regular scheduled health checks.
• Increase the specific health guidance rate.

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

Issues representing the foundation of business activities

CSR procurement12

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Practice of CSR procurement
• Conduct additional surveys to determine whether BCP measures for typhoons and flooding are also effective against earthquake, fire, pandemic and other risks.
• Continue to request that the four companies lacking CO2 reduction target plans establish targets.
• Continue the system for procuring electric power derived from renewable energy.
• BCP countermeasures for typhoons and floods at approximately 100 suppliers have been put in place. BCP for disasters such as earthquakes, fires, and pandemics, were also fully completed through countermeasures or planning.
• All work is completed until the CO2 reduction target or the planning for the target of approximately 50 suppliers is established.
• Switched to electric power derived from renewable energy at all Japan-based plants and laboratories in January 2022. Switchover to electric power derived from renewable energy is also being promoted at overseas offices.
• Secure stable procurement of raw materials affected by carbon neutrality.
• BCP measures for special raw materials produced by SB Kawasumi are implemented.
• Secure stable procurement of green chemicals.
• Secure electric power derived from renewable energy in Japan after 2023, and investigate/introduce solar and biomass power generation at domestic and overseas bases.

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

Compliance16

Items Fiscal 2021 targets Fiscal 2021 results Fiscal 2022 plan Achievement evaluation
Compliance promotion
• Establish a Bribery Compliance Program (formulation of a Group- wide bribery prevention policy, etc.).
• Promote compliance education activities (reporting on revisions to our Group's Code of Conduct (Code of Ethics), Whistleblower system and Articles for Emphasis in Compliance, newsletter and various e-learning education opportunities).
• Group-wide bribery prevention policy and basic rules and regulations on bribery for the Group were established in April 2022.
• Revisions were made during Awareness Month, October 2021, to our Group’s Code of Conduct (Code of Ethics), our Whistleblower System and our Articles for Emphasis in Compliance.
• Raised awareness through the internal publication of a four-panel comic titled “The Way to Become a Compliance Master.”
• Revision of our Code of Conduct and establishment of the Group Code of Ethics (replacing the existing Group's Code of Conduct).
• Partial revision of the Compliance Whistleblower System with the revision of the Whistleblower Protection Act in mind.
• Promotion of compliance awareness activities (such as familiarization with our Code of Conduct, Group's Code of Ethics, and Whistleblower System, review of key compliance articles; in-house newsletters, e-learning education, etc.).

○: Target attained △: Target not attained (but improvement over the previous fiscal year)
▼: Target not attained (deterioration from the previous fiscal year)

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