Our Material Topics
How we identify our material topics
Material topics are identified through understanding requests and expectations from stakeholders, and analyzing and verifying the scale of social influence from our business activities. We regard this process as significant for the Mitsui Chemicals Group to recognize issues we need to address to help build a sustainable society. In order to keep abreast of changes in the business environment and update its initiatives, the Group periodically and continuously identify material topics, check changes in importance, and reflects them in its business activities.
Step 1: Identify issues
Identify issues comprehensively with reference to the following:
✔ Dialog with stakeholders *1
✔ Information gathering regarding global social challenges *2
✔ Guidelines for sustainability information disclosure and evaluation criteria used by sustainability rating agencies
✔ Group policies such as our Corporate Mission and Action Guidelines
✔ Content of discussions by internal committees and decision-making bodies
✔ Content of discussions during the formulation of VISION 2030
*1Dialogue with Stakeholders:
For example, we have established a system to reflect environmental and social challenges in our business activities by seeking advice from experts in the Blue Value™ and Rose Value™ evaluation, reviewing, and certification processes. For human rights due diligence, we also conduct risk assessment and take other necessary measures with input from outside experts. In April 2022, we held our first briefing on ESG sustainability, where we exchanged questions and opinions on sustainability management with stakeholders. Through open and constructive discussions with various stakeholders, we aim to promote mutual understanding and build trust, while identifying expectations and needs for the Group and incorporating the findings in management practice.
*2Information gathering regarding global social challenges
Mitsui Chemicals is gathering information on the latest global issues by joining the World Economic Forum. With forum members, we aim to resolve social challenges working together with international institutions and governments.
Step 2: Classify issues by topic
Classify the identified issues by topic mainly with reference to guidelines for sustainability information disclosure and evaluation criteria used by sustainability rating agencies.
Step 3: Prioritize and organize topics
We have mapped and prioritized each theme based on how important it is for stakeholders (or how impactful it is on society) and the Mitsui Chemicals Group, and shortlisted candidate themes after discussing them at the meetings of the Corporate Sustainability Committee, Management Committee, and Board of Directors.
We comprehensively reviewed the short-listed material topics, and based on the primary impacts expected from the initiatives and the required timeline, we categorized the themes that are directly linked to creating both social and corporate values as “contributing to a sustainable society,” which in turn is underpinned by the categories of “prerequisites for business continuity” and “abilities essential to business continuity.” This framework effectively clarifies the direction for specific initiatives by category.
Step 4: Confirm validity
We confirmed the validity of the identified material topics with the Corporate Sustainability Committee, Management Committee, and Board of Directors. Then acquired final approval from the Board of Directors.
When identifying material topics, it is necessary to take into account the changing importance of issues as well as emerging issues. Therefore, the Corporate Sustainability Committee and Company-wide Strategy Committee will annually review (analyze, consider and discuss) the material topics and update them as needed.
Identifying risks and opportunities for material topics that contribute to a sustainable society
In classifying material topics, the Mitsui Chemical Group places those directly linked to corporate value and performance improvement achieved through business activities in the category of “contributing to a sustainable society,” which in turn is underpinned by the categories of “prerequisites for business continuity” and “abilities essential to business continuity.”
The process for selecting each of the topics included in “contributing to a sustainable society” entailed analysis of opportunities and risks as detailed below.
*Click here for the Group’s initiatives for “Prerequisites for business continuity” and “Abilities essential to business continuity.”
Product design based on full life-cycle considerations
Recognizing social challenges and achieving VISION 2030
Since individual social challenges are interconnected in a complicated way, they need to be addressed from a holistic perspective. That is why business activities need to take into account the environment and society throughout the entire product life cycle. We will not only provide products and services with low environmental impact and universal design, but also expand our solution-oriented business, which provides solutions that combine our products and services by taking a bird’s eye view of the value chain to identify issues.
Climate change
Recognition of the social challenges
The target of the Paris Agreement is to maintain the increase in the global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels, and it requires the society as a whole to achieve carbon neutrality. While working towards this target, there is a strong expectation for us to not only accelerate the transition to a low-carbon society (mitigation), but also build a resilient society (adaptation) that can cope with the challenges around us posed by climate change, such as intensifying natural disasters and the spread of infectious diseases.
●Opportunities and ▲risks for the Mitsui Chemicals Group (example)
| ●▲ Shift to EVs, renewable energies becoming mainstream | ▲ Tightening of regulations such as restrictions on greenhouse gas (GHG) emissions and carbon taxes |
| ●▲ Transition to renewable raw materials | ▲ Decreased demand for products with high environmental impact |
| ● Increased demand for low-carbon and decarbonized products and technologies | ▲ Shortage and depletion of water resources |
| ● Increased demand for products that support disaster prevention/mitigation, infection control, etc. | ▲ Damage to production sites from storms and flooding |
| ▲ Supply chain interruptions |
| ●Opportunities and ▲risks for the Mitsui Chemicals Group (example) |
|---|
| ●▲ Shift to EVs, renewable energies becoming mainstream |
| ●▲ Transition to renewable raw materials |
| ● Increased demand for low-carbon and decarbonized products and technologies |
| ● Increased demand for products that support disaster prevention/mitigation, infection control, etc. |
| ▲ Tightening of regulations such as restrictions on greenhouse gas (GHG) emissions and carbon taxes |
| ▲ Decreased demand for products with high environmental impact |
| ▲ Shortage and depletion of water resources |
| ▲ Damage to production sites from storms and flooding |
| ▲ Supply chain interruptions |
Achieving VISION 2030
Recognizing that addressing climate change is a top priority, the Group has formulated climate change policies on mitigation and adaptation. As our efforts to help achieve the goals of the Paris Agreement, we aim to become carbon neutral by 2050. In our carbon neutrality strategy, the Group states that we aim to make the entire society carbon neutral by promoting our initiatives to reduce our own GHG emissions and helping reduce carbon emissions across the value chain through our products and services. We will develop and acquire fundamental technologies that help achieve carbon neutrality, promote low-carbon products by switching to raw fuel, and provide products and services for a resilient society, including for disaster prevention and mitigation.
Circular Economy
Recognition of the social challenges
As the world’s population grows and global economic activities become more active, including in developing and emerging countries, conventional linear economic activities based on mass consumption and disposal of resources pose a major threat because they cross the planetary boundaries. In addition, the waste problem is becoming more serious due to improper waste management, resulting in the loss of natural capital. Under these circumstances, the entire society is expected to work together to shift to a circular economy that enhances environmental and social sustainability by decoupling resource use and economic growth.
●Opportunities and ▲risks for the Mitsui Chemicals Group (example)
| ● Increased opportunities for solutions business that take an ecosystem perspective | ▲ Tightening of regulations on use of single-use plastics and decreased demand for plastics |
| ● Increased demand for resource conservation and recycling technologies | ▲ Tightening of regulations/international standards related to natural capital |
| ● Increased importance of traceability throughout the product life cycle | ▲ Increased risk of litigation arising from extended producer responsibility, etc. |
| ▲ Reputational damage due to shift in consumer sentiment |
| ●Opportunities and ▲risks for the Mitsui Chemicals Group (example) |
|---|
| ● Increased opportunities for solutions business that take an ecosystem perspective |
| ● Increased demand for resource conservation and recycling technologies |
| ● Increased importance of traceability throughout the product life cycle |
| ▲ Tightening of regulations on use of single-use plastics and decreased demand for plastics |
| ▲ Tightening of regulations/international standards related to natural capital |
| ▲ Increased risk of litigation arising from extended producer responsibility, etc. |
| ▲ Reputational damage due to shift in consumer sentiment |
Achieving VISION 2030
The Group promotes the development and acquisition of fundamental environmental technologies and the utilization and recycling of renewable raw fuel resources while working with industry, government, and academia. We aim to build a circular economy business model for all of our business units by providing solutions that go beyond providing materials, including creating materials and services that support the circular economy. We also recognize our responsibility as a producer of plastics, and are committed to conserving and restoring the natural capital, such as by addressing the plastic waste problem.
Health and livelihood
Recognition of the social challenges
The increasing world population, the aging society, and issues around social diversity and social inclusion have brought about big changes in people’s lives, raising various new demands on different aspects of our existence. In addition, it is one of the basic human rights of all people to enjoy the highest standard of health regardless of race, religion, political beliefs, or economic or social conditions. Therefore, we are expected to eliminate all types of inequalities in relation to health and improve the quality of life (QOL) of all people.
●Opportunities and ▲risks for the Mitsui Chemicals Group (example)
| ● Increased demand for products in mobility, medical equipment, pharmaceutical packaging materials, ICT fields, and residential construction materials in line with growing demand for healthier and more affluent lifestyles for all. | ● Increased demand for products that improve hygiene and prevent the occurrence and spread of infectious diseases |
| ●Increased demand for services/products that support participation in society by all people regardless of age, gender, race, disability, etc. | ▲ Uncertainty due to the VUCA era |
| ● Growing needs for comfortable and safe lifestyles and support for pre-symptomatic illness, in addition to measures concerning illness and health | ▲ Increased risk of litigation in the health care and medical sectors |
| ●Opportunities and ▲risks for the Mitsui Chemicals Group (example) |
|---|
| ● Increased demand for products in mobility, medical equipment, pharmaceutical packaging materials, ICT fields, and residential construction materials in line with growing demand for healthier and more affluent lifestyles for all. |
| ● Increased demand for services/products that support participation in society by all people regardless of age, gender, race, disability, etc. |
| ● Growing needs for comfortable and safe lifestyles and support for pre-symptomatic illness, in addition to measures concerning illness and health |
| ● Increased demand for products that improve hygiene and prevent the occurrence and spread of infectious diseases |
| ▲ Uncertainty due to the VUCA era |
| ▲ Increased risk of litigation in the health care and medical sectors |
Achieving VISION 2030
The Group is encouraging business units to take on social challenges. By creating products and services that help improve the QOL of all people, such as vision care (vision aid and eye protection), dental care, medical and hygiene products, as well as products that feature a universal design, we will continue to help build an inclusive society where people of all ages and genders, with and without illness or disability, in various regions (cities and remote areas) can live healthy, safe, and comfortable lives. We will also create a more diverse value chain and make the society and the Group more sustainable through activities that promote mental and physical health, safe and comfortable lifestyles, as well as diverse social participation.
Highly livable communities
Recognition of the social challenges
In response to the increasing number of natural disasters caused by climate change, the need to develop disaster-resilient social infrastructures is rising. Such communities are equipped with measures to prevent or mitigate the disruption to the social infrastructure or supply chain caused by such disasters. Also, the increasing demand for conversion to smart cities and technological innovation—such as digital transformation (DX)—highlights the necessity to optimize the entire infrastructure and administration services.
●Opportunities and ▲risks for the Mitsui Chemicals Group (example)
| ● Increased demand for smart and resilient community development in accordance with population size (community ICT/infrastructure improvements) | ▲ Recruitment and training of personnel for an advanced ICT-based society |
| ● Increased demand for products that support disaster prevention/mitigation, infection control, etc. | ▲ Increased need for disaster prevention measures at production sites and sophisticated risk management in business operations |
| ●Opportunities and ▲risks for the Mitsui Chemicals Group (example) |
|---|
| ● Increased demand for smart and resilient community development in accordance with population size (community ICT/infrastructure improvements) |
| ● Increased demand for products that support disaster prevention/mitigation, infection control, etc. |
| ▲ Recruitment and training of personnel for an advanced ICT-based society |
| ▲ Increased need for disaster prevention measures at production sites and sophisticated risk management in business operations |
Achieving VISION 2030
In our efforts to make cities more sustainable, the Group aims to expand products and services that help prevent and mitigate disasters and extend the service life and strengthen the networks of infrastructure. To contribute to the provision of infrastructure and social infrastructure, we will build a solution-oriented business model that takes the entire value chain into account. In addition, the Group will pursue the creation of new values on a global basis by utilizing data and digital technologies while accelerating digital transformation.
Food Security
Recognition of the social challenges
As the world’s population grows, food supplies are becoming increasingly scarce, pushing up the number of people facing starvation across the world. Also, food security must be reinforced to prevent the negative influences on food production from drought and flooding induced by climate change, and agricultural damage caused by insects, which has also been aggravated through ecological disruption. In addition, food loss due to imbalanced supply and demand is said to be one of the factors in the increase in the number of people who suffer from hunger. We must reduce food loss because it is not only uneconomical, but also leads to environmental problems such as CO2 emissions from production to disposal.
●Opportunities and ▲risks for the Mitsui Chemicals Group (example)
| ●▲ Response to improvement of food preservation/distribution technologies (cold supply chains, etc.) | ● Increased demand for packaging containers that contribute to reduced food loss/food waste |
| ● Increased demand for products and services that contribute to stable production and supply of food, as well as to reduced burden on workers | ▲ Tightening of regulations on agrochemicals and food packaging materials |
| ● Development of new technologies and expansion into new markets through collaboration with food and beverage manufacturers | ▲ Risk of restrictions on business activities due to severe water shortages, etc. |
| ●Opportunities and ▲risks for the Mitsui Chemicals Group (example) |
|---|
| ●▲ Response to improvement of food preservation/distribution technologies (cold supply chains, etc.) |
| ● Increased demand for products and services that contribute to stable production and supply of food, as well as to reduced burden on workers |
| ● Development of new technologies and expansion into new markets through collaboration with food and beverage manufacturers |
| ● Increased demand for packaging containers that contribute to reduced food loss/food waste |
| ▲ Tightening of regulations on agrochemicals and food packaging materials |
| ▲ Risk of restrictions on business activities due to severe water shortages, etc. |
Achieving VISION 2030
To ensure food security for people around the world, the Group aims to improve food productivity and water accessibility by innovating agrochemicals and agricultural technologies. Furthermore, in our efforts to save resources and combat climate change, we will address the issues of food loss and food waste by improving food packaging materials and helping ensure safety and stability in food distribution.
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