Shin-Etsu Group Key Sustainability Issues
The Shin-Etsu Group recognizes the challenges, risks, and opportunities of all key Sustainability issues and addresses them accordingly.
| Key Sustainability Issues | Major Risks and Opportunities | Initiatives | |
|---|---|---|---|
| The foundation of all activities: legal compliance, fair corporate activities | Risks |
・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. ・No provision of unfair benefits or demands thoroughly with the aim of preventing corruption ・Regarding the prevention of bribery, ensure No provision of unfair benefits or demands thoroughly, 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 " KPI ・Number of serious violations of laws and regulations: 0 |
| Opportunities |
・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 |
||
| Health and safety of employees and contractors | Risks |
・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 KPI ・Number participants in safety training (Total number of persons): 75,406 ・Number of work-related employee fatalities: 0 ・Number of serious accidents: 0 ・Lost-time accidents rate: 0.00 (Japan), 1.15 (overseas) ・Lost-time accidents severity rate: 0.00 (Japan), 0.03 (overseas) |
| Opportunities |
・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 |
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| Energy-saving, resource-saving, and reduction of environmental impacts | Risks |
・ 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 KPI ・GHG Emissions (Scope1+Scope2): 6,613 thousand tons of CO2e ・Emissions intensity index of production volume relative to 1990: 54.2%(Shin-Etsu Group), 46.8%(Shin-Etsu Chemical) ・Sales ratio of our group's products that contribute to CN:approx. 70% ・Water recycle ratio: 92.6% ・Waste recycling ratio: 71%(Japan), 75%(overseas) |
| Opportunities |
・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 |
||
| Product quality improvements and product safety control | Risks |
・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 KPI ・Number of participants in product safety training: 71,142 |
| Opportunities |
・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. |
||
| Promoting CSR procurement and the diversification of supply sources | Risks |
・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" KPI Ratio of sustainability surveys conducted at suppliers: approx. 70% |
| Opportunities |
・Dversifying 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 |
||
| Respect for human rights, the development of human resources, and the promotion of diversity | Risks |
・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
KPI |
| Opportunities |
・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 |
||
| Respect for and protection of intellectual property | Risks |
・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 KPI* ・Patents acquired: 1,714 ・Patents held: 22,310 *Scope: Main consolidated manufacturing companies |
| Opportunities |
・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 |
||
| Contribution to industry and social initiatives | Risks |
・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 ・Traffic Safety Activities ・Career development for local elementary school students ・Supporting the Science and Technology in Society forum ・Supporting the Children of the Next Generation ・Support for Eradicating Poverty in Africa ・Contribution to Society Activities at Overseas Group Company |
| Opportunities |
・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 |
||
| Accurate and timely information disclosure and communication with stakeholders | Risks |
・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 KPI ・Presentations of earnings and conference calls for analysts and institutional investors: 4 times ・Plant tours for analysts and institutional investors / Business briefing session: 1 time ・One-on-one meetings with analysts: 312 times ・Small meetings for investors hosted by securities companies: 5 times |
| Opportunities |
・Creating a fair market evaluation and improving corporate value ・Earning the trust of stakeholders and the society |
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Specifying Key Sustainability Issues
Performance and Outcome
- ・Ensuring Full Compliance Awareness
- ・Initiatives Aimed at Preventing Corruption
- ・Export Control
- ・Cutting Ties with Anti-social Forces
- ・Occupational Safety
- ・Process Safety and Disaster Prevention Plan
- ・Safety Education
- ・Emergency Drill
- ・Environmental Control and Safety Audits
- ・Health Considerations
- ・Reporting of Accidents and Lost-Time Accidents
- ・Environment Management
- ・Response to Climate Change
- ・Water resource conservation, water pollutant elimination
- ・Waste reduction
- ・Resource recycling
- ・Conservation of biodiversity
- ・Reduction of chemical emissions
- ・Prevention of air pollution
- ・Prevention of soil pollution
- ・Quality Control
- ・Quality Audits and Support
- ・Product Safety Control
- ・Basic Procurement Policy
- ・Compliance with the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors
- ・Sustainable Procurement
- ・Announcing the "Declaration of Partnership Building"
- ・Procurement Audit
- ・Procurement Conferences
- ・Control of Chemical Substances Used as Raw Materials
- ・Respect for human rights
- ・Human rights due diligence
- ・Human rights awareness education
- ・Education/ training and personal development
- ・Performance-based Personnel
- ・Evaluation Systems
- ・Promotion of diversity
- ・System for work-life balance
- ・Nursing care support system
- ・Welfare and benefits
- ・Labor-management relations
- ・Conduct employee awareness survey
- ・Intellectual Property Management
- ・Initiatives for Information Asset Management
- ・Protection of Personal Information
- ・Cyber Security
- ・Fundraising for the U.N. World Refugee Day
- ・Traffic Safety Activities
- ・Career development for local elementary school students
- ・Supporting the Science and Technology in Society forum
- ・Supporting the Children of the Next Generation
- ・Support for Eradicating Poverty in Africa
- ・Contribution to Society Activities at Overseas Group Company
- ・Information Disclosure
- ・Communication with Stakeholders