• Impact of legal violations and improprieties on corporate management.
• Damage to corporate value due to loss of trust from society.

• Demand thorough compliance awareness among officers and employees through training, etc.
• Regarding the prevention of bribery, thoroughly enforce a ban on provision of unfair benefits or demands, and establish internal rules at each overseas Group company
• Cutting ties with anti-social forces
• Compliance with sound business practices with suppliers and service providers
• Support for the “Declaration of Partnership Building”

• Ensuring full compliance awareness and fair corporate activities leads to:

  (1) Formation of the foundation of corporate value

  (2) Elimination of risks

  (3) Building of customer trust and expansion of business opportunities

  (4) Hiring and retaining of excellent human resources

• Impact of accidents and environmental problems on local communities and employees.
• Damage to equipment caused by typhoons, earthquakes, or other natural disasters.
• Impact of an infectious disease outbreak on operations.

• Safety education for employees through disaster prevention drills and workshops
• Environmental control and safety audits
• Improvement of the workplace environment and promotion of employees' health

• Implementing measures to prevent accidents and developing new production processes enable the creation of a safe working environment and the improvement of stable production and higher productivity
• Hiring and retaining excellent human resources
• Continuing operations, shutting down operations, and resuming operations safely by designing the plant in anticipation of a natural disaster and taking measures against risks
• Promoting employee health, achieving a work-life balance, and cultivating a sense of motivation and fulfillment in work

• Additional costs of stricter regulations related to greenhouse gas emissions
• Price increases and difficulty in procuring raw materials for the quantity needed
• Increased water risks, such as water depletion and flooding

• Promoting the reduction of environmental impact
• Waste reduction
• Pollutant countermeasures
• Response to climate change
• Resource recycling
• Water resource conservation and water pollutant elimination
• Conservation of biodiversity initiatives

• The constant challenge of technological innovation leads to the enhancement of "manufacturing ability".
• Increasing competitiveness by conserving energy and resources, reducing environmental loads, and improving productivity
• Increasing the demand for products that contribute to the environment
• Developing technologies that recycle water, thus contributing to business continuity

• Loss of trust due to product quality issues
• Direct or indirect impacts on product safety

• Quality control
• Quality audits and support
• Product safety control
• Promote automation of quality inspections and assurance (reduce personnel involvement)
• Verification of the statistical validity of inspection variations and standard ranges

• The track record of continuing to deliver products of the promised quality on time will lead to increased customer trust.
• Sincere efforts to ensure product safety and accumulation of achievements will lead to the trust of customers and society.

• Impact from not being able to procure raw materials, such as discontinuation of manufacture and shipment delay to customers
• Problems arising in the supply chain

• Create "Shin-Etsu Group CSR Procurement Guidelines" and revise them as appropriate
• Ensuring compliance with subcontracting laws by attending seminars and conducting internal audits
• Implementing initiatives to eliminate the use of conflict minerals
• Implementing the supplier CSR procurement survey
• Participation in RSPO "Roundtable on Sustainable Palm Oil"

• Diversifying suppliers enable stable procurement, purchasing at optimal prices, and procurement of raw materials through fair transactions
• Thorough CSR procurement will lead to the trust of customers and society

• Occurrence of human rights infringements in the Group's business activities and supply chain
• Occurrence of differences and biases in the effectiveness of on-the-job training
• Negative impact of performance-based evaluation (Putting emphasis on short-term results, bias in evaluation depending on department, performance decline due to external factors, etc.)
• Increase in turnover rate and decrease in job seekers due to inability to meet needs for diversification of work styles

• Promotion of respect for human rights based on the Universal Declaration of Human Rights
• Implementing human rights due diligence
• Supporting employee growth through a training system
• Promote communication between superiors and subordinates
• Promoting penetration of an evaluation compensation system focused on skill development
• Creating an environment where people can play an active role regardless of gender or age
• Enhancement of work-life balance system

KPI (FY2024 results)
Number of child labour: 0
Number of forced labour: 0

Ratio of women at the time of hiring: Administrative positions 52.6%, Engineering positions 9.0% (Employees and seconded employees of Shin-Etsu Chemical)
Number of women in managerial positions, including junior manager level (versus FY2014): 4.00 times (Employees and seconded employees of Shin-Etsu Chemical)

• Improving the market evaluation of companies that promote respect for human rights
• Active participation of excellent human resources who have cultivated practical skills through on-the-job training
• Accumulation of knowledge, skills and experience
• Maintaining and improving organizational vitality brought about by a strong desire to take on challenges to achieve goals
• Business growth and new business development by hiring, developing, and selecting talented human resources

• The adverse effect on product sales due to infringement of our intellectual property
• Restrictions on our product sales and business due to the patents of other entities
• Impact of cyber-attacks on production, sales, and R&D activities
• Loss of trust in the company due to information leakage

• Intellectual property management
• Initiatives for information asset management
• Protection of personal information
• Initiatives for cyber security

• Promoting product development and unique manufacturing methods by protecting and utilizing our intellectual property
• Contributing to the development of industry and the society by publishing inventions
• Implementing technology innovation and operational reforms by utilizing digital technologies while thoroughly protecting and managing information assets and taking measures against cyber attacks

• Loss of trust from local communities due to social contribution activities not meeting local needs
• Impact on the world development due to the delay in achieving a sustainable world that the SDGs aim to achieve

• Contribution to SDGs goals and targets
• Fundraising for the U.N. World Refugee Day
• Cleanups around plants
• Participation in Pine Forest Restoration Project
• Support for Promotion of Sports and Healthy Growth for Local Elementary School Students
• Traffic Safety Activities
• Summer School for Local Elementary School Students
• Contribution to Society Activities at Overseas Group Company

• Creation of employment opportunities, stable employment and tax payment due to business stability
• Building relationships of trust with the local community through dialogue and continuous activities
• Contributing to a better world by addressing SDG issues through business operations

• Impairment of corporate value through the non-disclosure and inadequate disclosure of information
• Loss of trust from stakeholders and the society due to failure to fulfill accountability

• Appropriate and timely disclosure of company information
• Communication with stakeholders
• Dialogue with mass media including conference calls with analysts and investors after the announcement of financial results
• Holding an exhibition

• Creating a fair market evaluation and improving corporate value
• Earning the trust of stakeholders and the society