Policy and Basic Approach
The SDGs and other initiatives that aim to solve the challenges faced by society continue to gain momentum worldwide and companies are increasingly being asked to take action. For a sustainable society to be realized, it is essential that companies themselves must achieve growth, but at the same time create social value by providing solutions. To this end, it is now even more important that companies accurately identify opportunities and risks from an ESG perspective and reflect them into management.
Sustainability in the Mitsui Chemicals Group
In addressing global social challenges highlighted in the SDGs and other initiatives, we aim to achieve sustainable development in society and the Group by implementing the following:
- Seek business opportunities and strive to solve challenges through business activities
- Recognize future risks for the Group and uphold our corporate social responsibility
In deepening our triple bottom line (economy, environment, and society) management approach and committing to a management that places ESG elements at its core, the Group established the Corporate Sustainability Division in April 2018. We are now working to incorporate ESG elements into management/strategies and improve how we disclose ESG information to our stakeholders.
Incorporation of ESG elements into management/strategies
- Reflect ESG considerations in management and strategy discussions at Board meetings and Company-wide Strategy Committee meetings
- Generate business involving business and R&D divisions and promote innovation
Improvement of ESG information disclosure
- Boost appeal to institutional investors, customers, and sustainability rating agencies
- Strengthen ESG dialogue
To engage in sustainable management, it is key that we view the social challenges for SDGs and other initiatives as business opportunities, promote innovation, minimize future risks, and reinforce management resilience. The Group’s management periodically meet to discuss strategies in order to accurately grasp changes in social demands from the international community and reflect them into management from a long-term perspective. In fiscal 2018 we formulated policies on the SDGs and ESG and integrated ESG elements into our budget-drafting process.
One of KPIs that we set for the Group in our 2025 Long-Term Business Plan is to expand sales of our Blue Value™ and Rose Value™ products that contribute to the environment and society. In aiming to achieve this goal, we are taking steps to specifically incorporate them into business plans and targets. In addition, we are encouraging each and every employee to change their ways of thinking by organizing social challenge workshops to brainstorm the creation of new businesses and new products that are driven by the need to solve social issues. We are also deepening discussions with business and R&D divisions.
Moreover, from fiscal 2019 we started utilizing a system that reflects long-term views of new target investments into our investment plan. The system helps us visualize mainly investments related to Blue Value™ and Rose Value™, contributions to the SDGs, and changes in GHG emissions. These matters are then discussed at investment deliberation meetings. We have predominantly focused our strategy discussions on climate change and plastic waste—two serious issues for chemical companies—because we consider it very important to demonstrate concrete measures as soon as possible. We support the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and took the decision to participate in the Alliance to End Plastic Waste (AEPW). We have also formulated and publicly released policies stating our commitment to these causes.
Breakdown of new large-scale target investments decided in fiscal 2019 (for FY2019-2021)
System and Responsible Officers
The person in charge is the responsible director in charge of Corporate Sustainability Committee.
With ESG concerns as a central feature of the Group’s sustainability management, steps are being taking to discuss the Group’s overall direction at various organizations including the Board of Directors and Corporate Sustainability Committee. In addition, the management of progress of environmental and social targets under the 2025 Long-term Business Plan as well as key issues (materiality) are also undertaken within this system.
Sustainability Management System
Corporate Sustainability Committee
The CSR Committee was reorganized as the Corporate Sustainability Committee in June 2018. This reorganization reflects the need to address the demands placed on the Company by society and to further bolster sustainability management initiatives from an ESG perspective. The roles of the committee are presented as follows.
- Deliberate on the Group’s policies, strategies, plans, and measures as they relate to the promotion of ESG
- Clarify the important issues and direction of efforts to strengthen and improve initiatives of each committee (Responsible Care Committee, Risk & Compliance Committee)
- Conduct performance evaluations of the Group’s ESG initiatives and oversee internal distribution of results
- Consider other important matters relating to ESG
In principle, this committee meets twice a year.
Should a critical matter arise, including the need to consider an important item relating to ESG or to put forward an initiative, the Chairperson of the Corporate Sustainability Committee establishes a subcommittee to assume responsibility for the item.
Details of the committee’s deliberations and activity results are reported to the Management Committee. In addition, the Management Committee’s authorization is obtained for matters of particular importance.
Composition of the Corporate Sustainability Committee
|Vice Chair||Responsible director in charge of the Corporate Sustainability Committee|
|Members||Executive officers with specific titles, Business Sector presidents, Center Executive of the R&D Center, Center Executive of the Production & Technology Center, General Manager of the Corporate Planning Division, General Manager of the Human Resources Division, General Manager of the RC & Quality Assurance Division, General Manager of the Corporate Administration & Legal Division, General Manager of the Corporate Communications Division, General Manager of the Corporate Sustainability Division, other members appointed by the Chairperson|
|Secretariat||Corporate Sustainability Division|
*Corporate auditors also attend committee meetings and are able to offer their opinions whenever necessary.
*The chairperson is able to call on the attendance of executive officers and general managers who have an interest in the matters being deliberated and ask for their explanation and opinion.