Sustainability Management

Shin-Etsu Group’s Sustainability

The Shin-Etsu Group has established a Basic Sustainability Policy based on its Business Principle and is working to address nine key sustainability issues. In May 2024, we revised our Basic Sustainability Policy following approval by the Managing Directors’ Meeting and the Board of Directors attended by all directors, audit & supervisory board members and corporate officers.

figure: Shin-Etsu Group’s Sustainability
							Business Principle
							The Group actively conducts in sustainable business practices and creates the value sought by society and industry through the provision of unrivaled key materials technologies.
figure: Basic Sustainability Policy
											The Shin-Etsu Group will:
1. Do our best to increase the Group's corporate value through sustainable growth and make multifaceted contributions to society.
2. Carry out all our company activities while always placing the utmost priority on safety.
3. Expand those businesses that contribute to the reduction of greenhouse gas emissions.
4. Maximize the efficiency of product development and manufacturing, and contribute to higher efficiency of society by supplying our products thus produced.
5. Engage in business activities while taking biodiversity into account and seeking harmony with the global environment.
6. Strive to respect human rights, assure equality in employment opportunities, and support the self-fulfillment of our employees.
7. Appropriately disclose information in a timely manner.
8. Carry out healthy, trustworthy, transparent corporate activities in compliance with laws and regulations based on the integrity of the Group's ethical values.

Revised May 2024
figure: Key Sustainability Issues

The foundation of all activities:
Legal compliance, fair corporate activities

Product quality improvements and product safety control

Respect for and protection of intellectual property

Health and safety of employees and contractors

Promoting CSR procurement and the diversification of supply sources

Contribution to industry and social initiatives

Energy-saving, resource-saving, and reduction of the environmental impacts

Respect for human rights, the development of human resources, and the promotion of diversity

Accurate and timely information disclosure and communication with stakeholders

Structure of Initiatives

The Group believes that it is the social responsibility of the Group to contribute to all of our stakeholders, such as shareholders, investors, customers, suppliers, local communities, and employees.

To achieve this, we formulated the “Basic Sustainability Policy” and internal regulations and carry out sustainability activities. In order to develop sustainability initiatives effectively and properly at a company-wide level in all aspects of corporate activities, we have set up the Sustainability Committee, which is chaired by the President and comprises approximately 60 members, including Directors, Corporate Officers and department heads of Shin-Etsu Chemical and sustainability officers from group companies.

Structure of Initiatives

figure: Structure of Initiatives. Board of Directors, Managing Directors' Meeting, Committee Chairman (President), Committee Members, Secretariat, Audit & Supervisory Board, The Shin-Etsu Group
List of Executives in Charge of Sustainability Initiatives
Position Name Current Positions
(related to Sustainability)
Key Issues about Sustainability and Other Matters
Representative Director, Chairman of the Board Meeting Fumio Akiya In charge of Technologies Key Issue: Product quality improvements and product safety control
Representative Director, President Yasuhiko Saitoh Chairman of Sustainability Committee
Managing Corporate Officer Toshiya Akimoto Vice Chairman of Sustainability Committee
In charge of Public Relations, Legal Affairs, Business Auditing
General Manager of Office for Digitization and Digitalization
Chairman of Risk Management Committee
The foundation of all activities: legal compliance, fair corporate activities
Key Issue: Respect for and protection of intellectual property
Key Issue: Accurate and timely information disclosure and communication with stakeholders
Risk Management
Corporate Governance
Managing Corporate Officer Fumio Arai In charge of Purchasing Key Issue: Promoting CSR procurement and the diversification of supply sources
Managing Corporate Officer Shigeyoshi Netsu In charge of Patents Key Issue: Respect for and protection of intellectual property
Corporate Officer Toshiyuki Kasahara In charge of General Affairs
General Manager of Finance & Accounting Dept.
Corporate Governance (Fair tax payment, etc.)
Corporate Officer Kai Yasuoka Personnel & Labor Relations Key Issue: Respect for human rights, the development of human resources, and the promotion of diversity
Corporate Officer Ichiro Onozawa In charge of Environmental Control & Safety Relations Key Issue: Health and safety of employees and contractors
Key Issue: Energy-Saving, Resource-Saving, and Reduction of the Environmental Impact

As of June 27, 2025

Participating in the UN Global Compact

In November 2010, the Group joined the UN Global Compact.

Life in society has become more complex and diverse in recent years, and the social responsibilities of enterprises have grown. The Group remains firmly committed to its business principle of complying with all laws and regulations, conducting fair business practices and creates unrivaled value for society and industry through the provision of key materials and technologies. At the same time we respond flexibly to changes in the social and economic environment.

The Group has also been participating in the Global Compact Network Japan (GCNJ) since November 2010. The Group joins subcommittees, such as the Environmental Management Subcommittee and ESG Subcommittee, to use the information gained on the latest development of sustainability to promote the Group’s Sustainability.

The Group, as the first in Japan, signed a document to support GCNJ’s Tokyo Principles for Strengthening Anti-Corruption Practices in February 2018.

Global Compact Ten Principles

Human Rights

Principle 1:
Businesses should support and respect the protection of internationally proclaimed human rights; and
Principle 2:
make sure that they are not complicit in human rights abuses.

Labour

Principle 3:
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4:
the elimination of all forms of forced and compulsory labour;
Principle 5:
the effective abolition of child labour; and
Principle 6:
the elimination of discrimination in respect of employment and occupation.

Environment

Principle 7:
Businesses should support a precautionary approach to environmental challenges;
Principle 8:
undertake initiatives to promote greater environmental responsibility; and
Principle 9:
encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

Principle 10:
Businesses should work against corruption in all its forms, including extortion and bribery.
logo: UN GLOBAL COMPACT

Related Information

Evaluation from Outside the Company

The Company is incorporated in the following Sustainability indexes. We also disclose environmental risks, opportunities, and impacts through CDP*1. In FY2024, our CDP climate change evaluation was A-.

*1CDP
An international environmental non-profit organization established in the UK in 2000 that operates a global environmental information disclosure system for companies and local governments. The annual environmental information disclosure and evaluation process is widely recognized as an international standard for corporate environmental information disclosure.

FTSE4Good

FTSE Blossom Japan Sector Relative Index

FTSE Blossom Japan Sector Relative Index

S&P/JPX カーボンエフィシェント指数

2024 CONSTITUENT MSCI NIHONKABU ESG SELECT LEADERS INDEX

2025 Sompo Sustainability Index

*FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Shin-Etsu Chemical Co., Ltd. has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.
https://www.lseg.com/en/ftse-russell/indices/ftse4good

*FTSE Russell: FTSE Russell hereby certifies that Shin-Etsu Chemical Co., Ltd. has met the requirements for inclusion in the FTSE Blossom Japan Sector Relative Index as a result of a third-party survey and has become a constituent of this index. The FTSE Blossom Japan Sector Relative Index is widely used to create and evaluate sustainable investment funds and other financial products.
https://www.ftserussell.com/products/indices/blossom-japan/

*FTSE Russell confirms that Shin-Etsu Chemical Co., Ltd. has been independently assessed according to the index criteria, and has satisfied the requirements to become a constituent of the FTSE Blossom Japan Index. Created by the global index and data provider FTSE Russell, the FTSE Blossom Japan Index is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE Blossom Japan Index is used by a wide variety of market participants to create and assess responsible investment funds and other products.

*MSCI:The inclusion of Shin-Etsu Chemical Co., Ltd. in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of Shin-Etsu Chemical Co., Ltd. by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

As of June 30, 2025

Utilization of Supply Chain CSR Management Systems

The Group utilizes supply chain CSR management systems, such as RBA Online*2, Sedex*3, and EcoVadis*4 to disclose CSR information.

*2RBA Online
An online database organized by NPO Responsible Business Alliance (former: Electronic Industry Citizenship Coalition) to manage labor, health and safety, environment, and ethics in the supply chain. Enterprises in the global electronic industry and others join the Responsible Business Alliance.

*3Sedex
An online database organized by and named after NPO Sedex for storing and accessing data on ethical and responsible business practices. Enterprises from 150 countries in 28 industries, including food, automobile, cosmetics, and amenity, have joined Sedex.

*4EcoVadis
The supply chain management system operated by the French CSR rating agency, EcoVadis, is used by multinational corporations in 150 countries in North America, Asia, and Europe.