Setting Environmental Medium-term Plan Targets Using Vision-based Backcasting and the Promotion System Structure
In aiming for the aspirations raised in the Group Vision as our direction over the medium- to long-term, in 2019 Sekisui Chemical Group formulated our Vision Statement looking to 2030 for the purpose of more clearly illustrating our management strategies. From fiscal 2020, we will deploy strategies based on this Statement.
Under the slogan “Innovation for the Earth,” and in order to realize a sustainable society, we support the basis of LIFE and will continue to create “peace of mind for the future” <Social value> while aiming to double the Group’s business (sales of ￥2 trillion, operating income ratio of 10% or higher) by 2030 by expanding contributions to resolving social issues through business growth, reform and creation, centered on ESG management.
In order to support the basis of LIFE and continuously create “peace of mind for the future” while engaging in corporate management aimed at realizing a sustainable society, we must maintain a longer-term viewpoint as we deploy and implement the required approaches to the various global environmental problems.
To date, Sekisui Chemical Group has considered its approach and illustrated a direction to environmental problems with an eye toward 2030. In 2019, we undertook a review of the various events and social demands that have re-emerged and formulated the Sekisui Long-term Environmental Vision 2050 in regard to the direction of our environmental initiatives for 2050. Backcasting from this Vision, we have re-defined the milestones that must be reached within the Group-wide management strategies in regard to specific environmental problems. In order to achieve these milestones, we established concrete target values in the three-year Medium-term Plan that launches in fiscal 2020. The Promotion System itself, however, remains the same.
Long-term Environmental Management Vision "Sekisui Environment Sustainability Vision 2050"
The Sekisui Environment Sustainability Vision 2050 formulated in 2019 aims for the same goals as the Sekisui Environmental Sustainability Vision 2030 formulated in 2013. We recognize that conducting our corporate activities relies on valuable natural capital from the Earth and beneficial social capital from society, and thus declare we will contribute to making returns on this capital.
Environmental Medium-term Plan "Sekisui Environment Sustainability Plan: Accelerate" (Fiscal 2017-2019) and New Environmental Medium-term Plan "Sekisui Environment Sustainability Plan: Accelerate Ⅱ" (Fiscal 2020-2022)
From fiscal 2017 to 2019, we undertook initiatives based on the Environmental Medium-term Plan "Sekisui Environment Sustainability Plan: Accelerate" (Fiscal 2017-2019).
From fiscal 2020, we will deploy initiatives based on the Environmental Medium-term Plan "Sekisui Environment Sustainability Plan: Accelerate Ⅱ", which spans the three years from fiscal 2020 to 2022.
Integrated Index "Sekisui Environmental Sustainability Index" and Its Evolution
The Sekisui Environment Sustainability Index is a single indicator of the level of impact on the environment by the corporate activities of Sekisui Chemical Group (i.e. use of natural capital) and the degree of contribution back to the environment (i.e. return of natural capital).
We have gradually expanded the target scope of this index to encompass our impact on natural capital and social capital, as well as our returns to this capital, and have expanded awareness of the index. From fiscal 2020, we intend to refocus on natural capital and social capital as the capital from the Earth and society on which our corporate activities have an impact and to which they contribute, and to assess the impacts and outcomes.
Environmental Management System
Sekisui Chemical Group has thus far promoted environmental activities through an environment management system based on ISO 14001 at each of the production sites operated by our locations. Although we will shift the long-term viewpoint of the direction for these activities from 2030 to 2050, the environmental problems on which we focus and the initiatives we deploy for solutions will remain the same.
In order to solve these problems, we feel we must bring the entire supply chain into our sights as we undertake initiatives, and that doing so will accelerate problem-solving. From fiscal 2020, we intend to work towards cooperative problem-solving by making a greater effort to approach the supply chain than in the past.
Through our existing CSR Procurement Guidelines and Green Procurement Guidelines, we have confirmed the environmental management status of and have worked to encourage system building within our raw materials supply chain. In our long-term management strategies up to 2030, we also intend to enhance similar initiatives targeted at the broadening supply chains required for business expansion.
Over the three years from 2017 to 2019, Sekisui Chemical Group put in place an environmental education structure and systems and established environmental training programs with the aim of fostering the ideal Environmental Human Resources required to achieve the Long-term Environmental Management Vision 2030.
From 2020, we will work to foster the personnel required to expand contributions to resolving social issues through business growth, reform and creation, centered on ESG management. These programs will also enhance the ability of employees to contribute to the solutions for various environmental problems, one of the groundings of ESG personnel.
Sekisui Chemical Group assessed and disclosed the Group-wide environmental accounting details in order to confirm its investments in the environment and the cost value thereof, and to verify the cost effectiveness of the results, such as reductions in environmental impacts up to 2019.
Within the Medium-term Plan that will launch in 2020, we will employ environmental accounting because the investments and costs applied to the environment are defined as capital costs within the Group-wide management strategies, and because we recognize that restraining these costs and improving productivity improves ROIC.