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Our Material Topics

Materiality process

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
  • Risks and opportunities identified in the group-wide risk management process

*1 Dialogue with Stakeholders:
Through open and constructive discussions with various stakeholders, we aim to promote communication and build trust, while identifying expectations and needs for the Group and incorporating the findings in management practice.

Blue Value™ and Rose Value™ assessment, review, and certification processes:

We recognize environmental and social challenges and reflect them in our business activities through advice from experts.

・Human rights due diligence:

We conduct risk assessments and take other necessary measures with input from outside experts.

・Briefing on ESG sustainability:

We held a briefing on ESG sustainability in April and July 2022, where we exchanged questions and opinions on sustainability management with stakeholders.

*2 Information gathering regarding global social challenges

Mitsui Chemicals is gathering information on the latest global issues by joining the World Economic Forum.

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

  • Prioritize topics by mapping them along the two dimensions of the importance to stakeholders and the importance to the Mitsui Chemicals Group, and selecting candidate material topics. Discuss these decisions within the Corporate Sustainability Committee, Management Committee, and the Board of Directors.
  • Identify material topics by organizing the candidate topics under the categories of “contributing to a sustainable society,” “prerequisites for business continuity,” and “abilities essential to business continuity.”
Prioritize and organize topics

Step 4: Confirm validity

  • We confirm the validity of the identified material topics with the Corporate Sustainability Committee, Management Committee, and Board of Directors. Then acquire final approval from the Board of Directors.
  • When identifying material topics and associated key performance indicators (KPIs), the Corporate Sustainability Committee and Company-wide Strategy Committee annually review the material topics to take into account the changing importance of issues, as well as emerging issues, and discuss the need for update.
  • For updated materiality topics and KPIs, the approval of the Management Committee and the Board of Directors is obtained.
Confirm validity

Identified material topics

We have organized our material topics so that those directly connected to the creation of both social value and corporate value are grouped under 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 entailed analysis of challenges and issues as below.

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Product design based on full life-cycle considerations

Recognition of Issues

Due to the intricately intertwined nature of social challenges, we need to adopt a big-picture approach when tackling them. Therefore, our business activities need to take into account the environment and society throughout the entire product life cycle, from raw material procurement, processing, and usage, to disposal and recycling.

Challenges of the Mitsui Chemicals Group

The Mitsui Chemicals Group aims to capture new business opportunities and help solve social challenges by cooperating with industry, government, and academia, and by designing businesses that recognize and consider the impact on the environment and society throughout the full product life cycle.

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Climate change 

Recognition of Issues

In order to achieve the globally shared long-term goals set forth in the Paris Agreement, the realization of carbon neutrality throughout society is imperative, and efforts to achieve a decarbonized society (climate change mitigation) must be accelerated. There is also a need to adapt to environmental changes, such as the intensification of natural disasters caused by climate change.

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

Challenges of the Mitsui Chemicals Group

We aim to achieve carbon neutrality by 2050, by reducing greenhouse gas (GHG) emissions within our Group, and working to decarbonize the entire value chain, including all products and services. Furthermore, in order to respond to storms, flooding and droughts, which are expected to increase due to climate change, we will conduct water risk assessments, and strive to use water resources appropriately and preserve the water environment.

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Circular Economy

Recognition of Issues

As the world’s population grows and global economic activity increases, conventional linear economic activities, based on the premise of mass consumption and disposal of resources, are placing a heavy burden on the global environment. In addition, the garbage problem caused by improper disposal of waste has led to the loss of natural capital. Cooperative and collaborative efforts are required across society as a whole, in order to facilitate the transition to and strengthen support for a “circular economy,” which enables greater environmental and social sustainability.

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

Challenges of the Mitsui Chemicals Group

We are working to enlarge and widen the circle of the circular economy through the development of new materials, recycling systems, and value chains, in order to expand our product lineup of bio-based chemicals and bio-based plastics, promote their usage across society, and accelerate the recycling of plastic resources.

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Health and livelihood

Recognition of Issues

Health is a fundamental human right, and good health forms the basis of social activities. Therefore, efforts are needed to create a society where each and every person can lead a fulfilling life.

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

Challenges of the Mitsui Chemicals Group

We aim to support the realization of well-being by providing products and services that contribute to universal health coverage*, including vision care, dental care, medical supplies, hygiene products, and universal design products.

*Universal health coverage: All people can access appropriate health promotion, prevention, treatment, and rehabilitation services at an affordable cost.

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Highly livable communities

Recognition of Issues

In order to continue providing a sense of safety and security in people’s lives, there is a need to develop communities that are durable, adaptable, and able to respond to changes in the natural environment and the population structure.

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 human resources for an advanced ICT-based society
Increased demand for products that support disaster prevention/mitigation, infection control, etc.  

Challenges of the Mitsui Chemicals Group

We aim to contribute to the building of resilient communities that can flexibly respond to any type of change, by expanding our lineup of products and services that contribute to disaster prevention and mitigation, the longer service life of infrastructure, and the strengthening of networks.

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Food Security

Recognition of Issues

Food shortages due to poor harvests and supply chain disruptions, which are caused by climate change and international conflicts, have become a social issue. Furthermore, particularly in developed countries, there is a need to address food loss and waste that occur in supply chains and households.

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  

Challenges of the Mitsui Chemicals Group

We are working to innovate agrochemicals and agricultural technology, as well as to improve food packaging products. By improving food productivity and ensuring safety and stability in food distribution, we aim to contribute to the reduction of food loss and food waste, and to the assurance of food security*.

*Food security: A state in which all people have physical and economic access to sufficient, safe, and nutritious food at all times

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Safety

Recognition of Issues

The chemical industry plays an important role in supporting the foundations of society, and if the safety of corporate activities is compromised, the human, social, and economic losses will be immeasurable. We recognize that safety assurance initiatives should be undertaken as a social responsibility.

Challenges of the Mitsui Chemicals Group

Based on our management policy of "Safety is our top priority," the Mitsui Chemicals Group is committed to maintaining a high level of safety, even as our people, facilities, and technologies become diversified in response to changes in the business environment, thereby laying the foundation for the security and trust of workers and society.

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Respect for human rights

Recognition of Issues

The business has become more globalized and complex, so the scope of its impact on people has also expanded. Companies are required to be properly aware of the impact of their activities on human rights throughout their supply chain and to fulfill their responsibility to respect human rights.

Challenges of the Mitsui Chemicals Group

The Mitsui Chemicals Group understands that the human rights of all people affected by its corporate activities must be respected, and pursues proper business throughout its supply chain in accordance with the Action Guidelines titled "For People and Society."

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Risk and compliance management

Recognition of Issues

As the social and business environment surrounding the Mitsui Chemicals Group diversifies, we recognize that it is essential to comprehensively look at and manage "risks," which are uncertainties and changes in management and business strategies, from both threats and opportunities from a medium- to long-term and continuous perspective, and to establish and develop a compliance system on a group and global basis, considering that ensuring compliance is a prerequisite for business continuity.

Challenges of the Mitsui Chemicals Group

The Mitsui Chemicals Group aims to enhance corporate value while minimizing the threats posed by risks and maximizing opportunities. In addition, we will establish and deploy group and global systems to raise compliance awareness, prevent and detect compliance violations, and take appropriate action, including the prevention of recurrence.

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Product quality

Recognition of Issues

We recognize that the ideal state of our Group is to continue to earn the trust and satisfaction of our customers through the manufacture and provision of high-quality products and services.

Challenges of the Mitsui Chemicals Group

The Mitsui Chemicals Group will promote Responsible Care activities throughout its supply chain, aiming to improve customer satisfaction through both quality control and quality assurance, thereby contributing to the sustainable development of society and the chemical industry.

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Stable production

Recognition of Issues

The stable production and provision of products and services are fundamental to the Group's corporate activities. We recognize the urgent need to build a production system that can respond flexibly to various changes in the business environment, such as a shrinking workforce, aging facilities, soaring raw material and material prices, and more frequent natural disasters.

Challenges of the Mitsui Chemicals Group

The Mitsui Chemicals Group will maintain cost competitiveness and continue stable production by passing on technologies and skills, improving and enhancing productivity, and introducing advanced and sophisticated technologies.

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Corporate culture

Recognition of Issues

In order to realize the Corporate Mission and the Corporate Target, it is important to foster a corporate culture in which employees with diverse backgrounds can share their knowledge and enthusiastically take on the challenge of creating new value.

Challenges of the Mitsui Chemicals Group

The Mitsui Chemicals Group values the diversity of all directors and corporate auditors and employees and provides them with opportunities to maximize their individual abilities, thereby creating an organization with high growth potential and employee engagement.

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Human capital

Recognition of Issues

Human resources are the most important capital and source of value creation and driving growth in promoting and achieving the goals of the five basic strategies of VISION 2030, including the pursuit of business portfolio transformation. Initiatives to maximize group and global human capital from a long-term perspective are important.

Challenges of the Mitsui Chemicals Group

The Mitsui Chemicals Group actively promotes human resources with diverse values, backgrounds, and skills. In addition, through inclusive talent management, we encourage employees to exhibit self-initiative and autonomy, as well as engaging in collaborative, and we develop human resources capable of creating the various values demanded by society from a broad perspective.

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Innovation

Recognition of Issues

Innovation is essential for the Mitsui Chemicals Group's sustainable growth and expansion. To create innovation, it is important to foster a wide range of expertise including reskills, a global perspective, and a desire to take on challenges, and also to communicate freely and openly with people who have a variety of ideas.

Challenges of the Mitsui Chemicals Group

The Mitsui Chemicals Group will strengthen R&D human resource development through global industry-government-academia collaboration, and more.
At the same time, we will actively collaborate with startups and other companies to update the knowledge of both parties and pursue the creation of new markets and technologies.

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Digital transformation

Recognition of Issues

In this era of rapid change, companies are required to create innovative products, services, and business models in an agile manner to solve social issues, and to lead the transformation of companies, industries, and society. So-called corporate transformation (CX) is required.

Challenges of the Mitsui Chemicals Group

The Mitsui Chemicals Group aims to realize CX by pursuing innovation for our operations, bolstering our development capabilities, and transforming our business models by improving our digital literacy of all members.

Partnerships

Recognition of Issues

Since each social issue has a complex relationship, it is difficult for a company to seek a solution alone. It is important to build cooperative relationships with the wide variety of stakeholders surrounding the company, especially throughout the supply chain.

Challenges of the Mitsui Chemicals Group

The Mitsui Chemicals Group will work together with internal and external partners involved in the supply chain to realize environmentally and socially conscious economic activities and stable procurement activities.

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