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Our Material Topics

Material Topics and VISION 2030

Non-Financial Metrics

We have set KPIs and targets that are linked to our material topics as non-financial metrics for VISION 2030. We aim to enhance our corporate value by effectively monitoring the financial and non-financial aspects of our management practice. For KPI, we have designated an officer or a general manager who is responsible for monitoring the progress, and each division manages these KPIs by incorporating them into their annual budgets and targets. In addition, the Corporate Sustainability Committee and the Company-wide Strategy Committee will review progress and related issues from the perspective of how progress toward KPIs each fiscal year will contribute to the achievement of non-financial targets for 2030 (consistency and appropriateness of KPI/target setting) and how efforts to achieve non-financial targets will contribute to the achievement of financial targets (relationship between financial and non-financial targets).

In the review conducted in fiscal 2023, we determined that it was difficult to clearly see the relationship between the material topics of "Stable production" and the associated non-financial KPIs, "Number of implementations of advanced manufacturing technologies with a focus on AI and IoT," and that the outcomes of introducing advanced technologies for Stable production were not sufficiently clear. As a result, we revised the non-financial KPIs to "No. of problems involving high-value losses."

Goals and Results

Contributing to a Sustainable Society

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	Blue Value™ products sales revenue ratio
Responsible officer	Responsible officer for Corporate Sustainability Division
26%	28%	40%

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	Rose Value™ products sales revenue ratio
Responsible officer	Responsible officer for Corporate Sustainability Division
25%	26%	40%

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	GHG emissions reduction rate (Scopes 1 and 2) ^{*compared to FY2013}
Responsible officer	Responsible officer of Carbon Neutral Strategy
28%	28%	40%

* Calculated based on adjusted emissions that exclude temporary factors such as fluctuations in ethylene operating rates.

Prerequisites for Business Continuity

Safety

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	Incidence of major accidents & serious occupational injuries
Responsible officer	Center Executive, Production & Technology Center
2 instances	Zero	Zero (over the course of VISION 2030)

Respect for human rights

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	Response to human rights risks
Responsible officer	Responsible officer for Corporate Sustainability Division
Implemented human rights due diligence (reorganization of the risk assessment process)	Implementation of human rights due diligence (improvement of the risk assessment process)	Identification & correction of risks by setting up a human rights due diligence system for all of our bases, both domestic and abroad

Compliance

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	Incidence of major legal and regulatory violations
Responsible officer	Responsible officer for Corporate Administration & Legal Division
Zero	Zero	Zero (over the course of VISION 2030)

Product quality

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	Incidence of PL accidents & serious product quality incidents
Responsible officer	Responsible officer for RC & Quality Assurance Division
Zero	Zero	Zero (over the course of VISION 2030)

Stable production

Non-financial KPIs	^{Production and equipment reliability} No. of problems involving high-value losses
Responsible officer	Center Executive, Production & Technology Center
FY2024 Results	FY2025 Outlook	FY2030 Target
3 instances	6 instances or less	Zero

Non-financial KPIs

^{Production and equipment reliability}

No. of problems involving high-value losses

Responsible officer

Center Executive, Production & Technology Center

FY2024 Results

FY2025 Outlook

FY2030 Target

3 instances

6 instances or less

Zero

Abilities Essential to Business Continuity

Corporate culture

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	^{Improvement of employee engagement} Engagement score
Responsible officer	Chief Human Resources Officer (CHRO)
36%	40%	50%

Human capital

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	^{Key talent management} Successor coverage rate for critical positions
Responsible officer	Chief Human Resources Officer (CHRO)
235%	250%	250%

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	^Diversity Number of executive officers with diverse backgrounds (women, non-Japanese, and mid-career hires) ^{Mitsui Chemicals, Inc.} Ratio of women in management positions (manager-level or above)^{Mitsui Chemicals, Inc.}
Responsible officer	Chief Human Resources Officer (CHRO)
Diversity rate of future executives: 24.1% 8%	Diversity rate of future executives: 25% or more 9% or more	10 or more (including at least 3 women) 15%

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	^{Health-focused management} Average rate of lifestyle-related diseases ^{Mitsui Chemicals, Inc.} Frequency of absences from work due to mental health disorders^{Mitsui Chemicals, Inc.}
Responsible officer	Chief Human Resources Officer (CHRO)
10.32% 0.65	less than 9.50% less than 0.55	8.0% or less 0.25

Digital transformation

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	^{Training of DX specialists} Number of data scientists
Responsible officer	Chief Digital Officer（CDO）
104	165 or more	165 (by FY2025)

Innovation

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	^{Pipeline expansion} Number of development themes in the latter half of our Stage Gate System
Responsible officer	Center Executive, R&D Center
Percentage advanced to preliminary market development stage: 11%	Percentage advanced to preliminary market development stage: 20% or more	Double or more (vs. FY2020)

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	^{Value creation for beyond 2030} Number of new areas of development at our Frontier Technology Center
Responsible officer	Center Executive, R&D Center
R&D themes: 5	Themes advanced from initial research stage to technological development: 5 or more Identification of social challenges to engage with in future: 5 or more	3 or more areas

Partnerships

FY2024 Results	FY2025 Outlook	FY2030 Target
Non-financial KPIs	Sustainable procurement ratio
Responsible officer	Chief Digital Officer（CDO）
Dissemination to partners ^{Briefings to explain procurement guidelines to key partners in each domain: 19 companies}	Dissemination to partners ^{Meet with suppliers amounting to 95% of total transaction value to explain procurement guidelines & get written agreement}	80%

Reflection in Executive Compensation

In fiscal 2023, we revised the executive compensation system to reflect the non-financial metrics of VISION 2030 in executive compensation.

A responsible officer has been assigned to each non-financial metric, and progress is incorporated into the bonuses of the respective officers as the "evaluation coefficient for performance of the division in charge." Additionally, to strongly encourage the achievement of non-financial metrics, we have selected particularly important non-financial indicators*, and their attainment levels are reflected in the bonuses of all internal directors and executive officers, excluding the Chairman of the Board, as the "evaluation coefficient for non-financial indicators."

* Particularly important non-financial indicators:

Blue Value™ products sales revenue ratio, Rose Value™ products sales revenue ratio, GHG emissions reduction rate, incidence of major accidents, incidence of major legal and regulatory violations, and engagement scores

Corporate Governance