Products to Enhance Sustainability

Create and Expand Markets for Products That Are Highly Effective in Solving Issues During Customer Use and Contribute Toward Improving Global and Social Sustainability on an Ongoing Basis

Management Approach

A Product Evaluation System That Promotes Problem SolvingCertifications Based on Proprietary Criteria, and Third-party Evaluations of Validity

Sekisui Chemical Group has used its product evaluation system since fiscal 2006 in order to further accelerate the resolution of issues related to the natural environment and the social environment. Certification is based on the criteria established by the internal committee, with advice on the criteria, the stance they are based on, and the validity of results accepted from outside advisors.
Through the end of fiscal 2019 we promoted the creation of “Environment-contributing Products” and the expansion of the market as part of a system supporting and advancing products that contribute to the solving of issues related to the natural environment and the social environment. With problem solving contributing more than ever to the improved sustainability of the earth and society, we reaffirmed that it essential to improve the sustainability of the company and its products if we are to continue to assist in solving problems. Accordingly, we will initiate efforts under the label of “product to enhance sustainability” to promote greater global, social, corporate, and product sustainability from fiscal 2020.

Evolution of a Product Evaluation System to Promote the Resolution of IssuesA product system aimed at not only on improving the sustainability of the earth and society, but also on improving the sustainability of the company and its products.

Focusing on products that contribute to resolving natural environment issues, we launched the product evaluation system as the “Environment-Contributing Products” system in fiscal 2006, and have continued to promote the creation and expansion of such products.
In fiscal 2017, we committed to creating and supplying problem-solving products, expanding the scope of the system to include to not only products that contribute to solving natural environment issues, but also those that focus on the social environment. Sekisui Chemical Group has reaffirmed its goal of meeting the SDGs for 2030 outlined by the United Nations.
Beginning in fiscal year 2020 and under our long-term 2050 environmental vision, we are evolving and launching our product evaluation system under the “products to enhance sustainability” label. We believe the promotion of products that expand the contribution to solving not only natural environment issues, but social environment issues will work to enhance both global and social sustainability. Of course, we also believe that in order to continue making these products, and expanding their contribution, it is vital to ensure corporate and product sustainability as well. In order to do this, we are adding to the process of certifying products that are highly effective in contributing to the resolution of conventional issues a function that evaluates corporate and product sustainability. Using assessments based on profitability, process evaluations, and supply chain evaluations, we are building and operating an evaluation system that not only confirms sustainability, but promotes the implementation of activities bolstering that sustainability.

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Strengthen the Group’s management ability to sustain business to continue contributing to the natural environment and society

Environment-Contributing Products PRExternal Promotional Activities

In fiscal 2019, Sekisui Chemical participated in the Eco Products 2019 exhibition, introducing and providing information to visitors to Sekisui Chemical Group’s approach to environmental issues and examples of how its products contribute to the resolution of these issues.
Our focus in particular is on adapting to and mitigating climate change.
In order to mitigate water risks, the increase in disasters that is already apparent, and the warming trend brought on by climate change, we believe it essential to shift to renewable energy and use technology to reduce greenhouse gas emission volumes.
We believe that if we are unable to adapt and respond to the environmental changes already apparent, we will be unable to ensure peace of mind and stability moving forward. To that end, the contribution of products and technologies is indeed vital.
Sekisui Chemical Group is working to mitigate these conditions through the development of not only solar cells and storage batteries, homes equipped with Home Energy Management Systems (HEMS), as well as homes with solar power panels, but also intermediate materials contributing to reduced energy consumption in electronic devices, as well as heat and sound insulation materials used in automotive applications that contribute to reduced fuel consumption. Our materials at the exhibition focused mainly on housing-related technologies.
One area of attention is housing that it built in a resilient manner that contributes to it being adaptable to changing conditions. Housing that is factory produced and composed of rooms constructed at a plant are produced to be resilient, and the sustainability of houses built in this manner has been greatly improved over the years.
We introduced resin pipes that prevent lifeline disruptions as a result of disasters such as typhoons or torrential downpours, which are increasing in frequency, as well as housing equipment such as drinking water storage systems, and rainwater storage systems that help prevent flooding at the floor level and riverbank collapses.
Finally, we introduced Asaka Leadtown, a town development project that uses the comprehensive strengths of Sekisui Chemical Group to contribute to enhanced adaption and mitigation.

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  • Exhibition at Eco Products 2019

Discussion with External AdvisorsConsidering the Opinions of External Stakeholders Related to Environmental Contributions of Products

Since fiscal 2012, we have held an External Advisory Board as an opportunity to receive opinions and advice from renowned authorities from outside the Company, with regard to the standards and registration of Environment-Contributing Products, positions to take in the future, and other comments.
The External Advisory Board meetings are sponsored by the supervising director of the organization in charge of environmental issues and CSR, and the members of the internal certification screening committee for Environment-contributing Products, including staff such as executive officer representatives from each division company who unify the technical side, organization heads carrying out management project work with a grasp for business conditions as a whole, participate in this board. We also ask others from outside the Company coming from various backgrounds in industry, government, and academia who are currently engaged in CSR-related work, including related to the environment, to take part as external experts. We currently request participation from representatives of a public corporation which serves as a consulting service providing advice to consumers, an NPO engaged in forestry preservation and education for the next generation, the representative of an office which has released numerous publications related to natural resources and the environment, a corporation which is an auxiliary organization for a government administrative office, and individuals active in media-related capacities for other companies.
While we asked for individual opinions in regard to the evolution of our vision and product evaluation system in fiscal 2019, we refrained from holding the External Advisory Board meeting planned for the end of the fiscal term due to the COVID-19 outbreak.
Beginning in fiscal 2020, we will engage in dialogue with outside advisors in regard to the drafting of detailed plans for the evolving “products to enhance sustainability” product evaluation system, and will operate the system with the aim of not only improving sustainability of the earth and society, but also our company and its products.
In conducting in-house certification of “products to enhance sustainability,” we follow the same assessment guidelines for improving sustainability for the earth and society as for “Environment-contributing Products,” with the evaluation standards also being shifted with the aim of making a strong contribution to the resolution of issues related to the natural environment and the social environment.
On the other hand, we believe continuing to solve problems over the long term through the provision of problem-solving products requires us to improve not only the sustainability of our products, but the company that produces those products as well. In order to confirm and improve this sustainability, we will conduct verification and assessment operations focusing on profitability, process evaluations, and supply chains. We will formulate items and operational formats for these verification and assessment activities in fiscal 2020, with promotion of the same in our medium-term plans from the same year.
We have also established a “Premium Framework” as part of our aim to strategically expand “products to enhance sustainability.” Over the three years covered by the Medium-term Plan, we will focus on developing promotional measures with the aim of accelerating global and social sustainability improvements while driving growth at Sekisui Chemical Group.
We will discuss the detailed design of such a system at the internal certification screening committee meeting, though we will also update as appropriate the design and operation of the system in line with the advice and opinions of members of the External Advisory Board.

  • Note:
    Internal certification screening committee
    The chairman of this committee is the supervisor of the ESG Management Department, and corporate and company technology and business supervisors participate in the committee’s meetings as members. These meetings are held for screening related to certification of Environment-Contributing Products. Held regularly twice per year.

Visualization of Environmental ContributionsEnvironmental Impact Assessment and Quantification of Products

To clarify the amount of return to natural capital, Sekisui Chemical Group in fiscal 2019 worked to visualize the environmental contribution for each Environment-contributing Product. We calculated and quantified into a single indicator (damage costs) the various contribution vectors in the life cycle of Environment-contributing Products. We multiplied the market impact, based on sales, by the environment contribution of each product to arrive at a quantifiable contribution by product, reflected in the Sekisui Environmental Sustainability Index.
In calculating the impact on the environment for each Environment-contributing Product until fiscal 2016, we broadly classified environmental issues into three areas that should be resolved in our aim to help realize a planet where biodiversity is preserved. However, since broadening the scope of Environment-contributing Products in fiscal 2017, we have since taken steps to integrate contributions across four areas adding the area of human health / social assets.
Beginning in fiscal 2020, we will conduct environmental impact assessments based on the contribution to resolving issues in the natural environment and the social environment of products to enhance sustainability throughout their respective lifecycles, with these contributions to natural and social capital reflected in the Sekisui Environment Sustainability Index.

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How to Visualize Environmental Contribution

  • (1)
    Determine technologies and products to be compared.
  • (2)
    Gather quantifiable data related to environmental impact of each stage of a product's lifecycle (from raw materials to production, transport, use and disposal).
  • (3)
    Apply a coefficient* to calculate environmental impact for each factor affecting the environmental impact data obtained and consolidate the results.
  • (4)
    Environmental contribution is the difference between the coefficient-derived value in (3) above and the original value.
  • Coefficient: Calculated using a customized version of MiLCA, a system developed by Japan Environmental Management Association for Industry using LIME2, an environmental impact assessment method created by Professor Norihiro Itsubo at Tokyo City University.
Performance Data
  • From fi scal 2019, Medical Business results are collated and presented with Headquarters results following its separation from the High Performance Plastics Company as an independent entity.
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  • Net Sales / Proportion of Environment-Contributing Products

Revenue from Products That Contribute to the Environment Over Time

(Unit: Billions of yen)
FY2015 FY2016 FY2017 FY2018 FY2019
Housing Company 280.6 290.9 317.6 364.3 374.0
Urban Infrastructure & Environmental
Products Company
103.5 90.3 93.7 97.7 101.5
High Performance Plastics Company 99.8 99.4 142.2 178.9 110.0
Headquarters 1.8 0.6 2.4 2.8 72.7
Company-wide total 485.8 481.2 555.9 643.8 658.3
Index Calculation Method
Net sales of Environment-contributing Products Net sales of Environment-contributing Products = Consolidated sales across Sekisui Chemical Group of products internally certified as Environment-contributing Products
All businesses of the Group in and outside Japan are subject to assessment
Note: See pages P254~255 of the CSR Report 2020 for a definition of Environment-contributing Products and the way of thinking behind them.
Proportion in net sales of Environment-contributing Products Proportion in net sales of Environment-contributing Products = Net sales of Environment-contributing Products / Consolidated sales
All businesses of the Group in and outside Japan are subject to assessment
Note: See pages P254~255 of the CSR Report 2020 for a definition of Environment-contributing Products and the way of thinking behind them.

Number of Environment-Contributing Products Newly Registered

FY2017-FY2019 FY2017 FY2018 FY2019 Number of registrations
as of the end of March
FY2020
47 24 18 5 162