Shin-Etsu Group Business
Principle／Basic ESG Policy
Shin-Etsu Group Business Principle
The Group strictly complies with all laws and regulations, conducts fair business practices and contributes to people's daily lives as well as to the advance of industry and society by creating value through the provision of key materials and technologies.
Basic ESG Policy
The Shin-Etsu Group:
- 1.Will do our best to increase the Group's corporate value through sustainable growth and make multifaceted contributions to society.
- 2.Will carry out all of our company activities by making safety always the first priority.
- 3.Will constantly pursue energy-saving, resources-saving and the reduction of the environmental impact, and seek to help create a sustainable future world in which we all live in harmony with the Earth.
- 4.Will endeavor to contribute to the prevention of global warming and the conservation of biodiversity by means of our cutting-edge technologies and products.
- 5.Will strive to respect human rights and assure equality in employment opportunities and support the self-fulfillment of our employees.
- 6.Will appropriately disclose information in a timely manner.
- 7.Will carry out healthy, trustworthy, transparent corporate activities based on the integrity of the Group's ethical values.
* In line with the internal promotion structure, we renamed from the Basic CSR Policy to the Basic ESG Policy.
ESG Promotion Structure
ESG Promotion Initiatives
The Group believes that it is the social responsibility of the Group to contribute to our
stakeholders, such as
shareholders, investors, customers, suppliers, local communities and employees.
To achieve this, we formulated the Basic ESG Policy and internal regulations and are
carrying out ESG activities.
In order to promote ESG activities in an effective and appropriate manner at a company wide level in all aspects of corporate activity, we have set up the ESG Promotion Committee chaired by the President, which is comprised of approximately 50 members, including directors and division heads of Shin-Etsu Chemical and ESG officers from group companies.
ESG Organizational Chart
Outline of the Business Principle, Basic ESG Policy, and the Shin-Etsu Group’s activities
Issues and progress of ESG promotion
The issues and achievements of ESG promotion in FY 2019 and the activities scheduled for FY 2020 are as follows.
ESG Promotion Committee general meeting
(November 2019, Shin=Etsu Chemical Head office)
|Issues||Progress in FY 2019||Schedule for FY 2020|
|Integration of SDGs and management||Set “Contributing to SDGs” as one of the management objectives for fiscal 2019 and promoted internal penetration||Develop and commercialize products that contribute to SDGs together with customers|
|Human rights due diligence1||
|Response to TCFD2||
- 1 Human rights due diligence An activity that a company recognizes, prevents and addresses adverse effects related to human rights both within and outside the company by repeating the PDCA cycle of (1) formulating and disclosing human rights policies, (2) assessing the impact of our business activities on human rights (3) preventing and correcting negative impacts and (4) tracking and disclosing performance data.
- 2 TCFD (The Task Force on Climate-related Financial Disclosures) It is a special team focusing on climate change disclosure, and was established by the Financial Stability Board (FSB) in December 2015. In July 2017, the TCFD has published a set of recommendations in which it calls for corporations to disclose the impacts of climate change ,which was forecasted for mid to long-term, to their financial reports.
List of executives in charge of ESG initiatives
(related to ESG)
|Key CSR Issues|
|Vice Chairman||Fumio Akiya||In charge of Technologies||Key Issue : Product quality improvements and product safety control|
|President||Yasuhiko Saitoh||Chairman of ESG Promotion Committee|
|Managing Director||Toshiya Akimoto||Vice Chairman of ESG Promotion Committee
In charge of Public Relations, Legal Affairs and Purchasing
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 : Promoting CSR procurement and the diversification of supply sources
Key Issue : Respect for and protection of intellectual property
Key Issue : Accurate and timely information disclosure and communication with stakeholders
|Managing Director||Yukihiro Matsui||In charge of Patents||Key Issue : Respect for and protection of intellectual property|
|Managing Director||Kenji Ikegami||In charge of General Affairs, Personnel & Labor Relations and Business Auditing||Corporate Governance
Key Issue : Respect for human rights, the development of human resources and the promotion of diversity
|Director||Toshiyuki Kasahara||General Manager of Finance & Accounting Dept.
In charge of Office of the President
|Corporate Governance (Fair tax payment, Operation of Group Companies)
Corporate Governance (Fair tax payment, Operation of Group Companies)
|Director||Yoshimitsu Takahashi||In charge of Environmental Control & Safety||Key Issue : Employees and contractor health and safety
Key Issue : Energy-saving, resource-saving and the reduction of the environmental impact
As of June 26, 2020
Participant in UN Global Compact
In November 2010, the Group has joined to the UN Global Compact. As life in society has
become more complex and more
diverse in recent years, the social responsibilities of enterprises have grown.
In such circumstances, the Group remains firmly committed in its Business Principle to contribute to people's living, society and industry through value creation in materials and technologies, while observing all laws and regulations as well as conducting fair corporate activities. At the same time we ensure a flexible response 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 takes part in subcommittees, such as the Supply Chain and ESG to utilize information on the latest development of ESG, gained from participation, for promoting the Group's ESG. The Group signed a document to support GCNJ's Tokyo Principles for Strengthening Anti-Corruption Practices in February 2018. In September 2019, we participated in the Anti-Corruption Forum 2019 sponsored by GCNJ Anti-Corruption Commission, where we discussed anti-corruption issues with lawyers and other specialists as well as the personnels in charge of anti-corruption at other companies.
Global Compact Ten Principles
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.
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.
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.
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
Evaluation from Society
The Company is incorporated in the following ESG index.
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.
Utilization of Supply Chain CSR Management Systems
The Group utilizes supply chain CSR management systems, such as RBA Online1, Sedex2 and EcoVadis3 to disclose CSR information. Shin-Etsu Silicones Europe, which participates in EcoVadis, received a gold rating in FY2019.
- 1 RBA Online
An online database organized by non-profit organization the Responsible Business Alliance (Former Electronic Industry Citizenship Coalition) for managing labor, health and safety, environment and ethics in the supply chain. Enterprises in the global electronic industry and others take part in Responsible Business Alliance.
- 2 Sedex
An online database organized by and named after non-profit organization Sedex, for storing and accessing data regarding ethical and responsible business practices. Enterprises in the global 28 industries, including food, automobile, cosmetics and amenity from 150 countries, have joined Sedex.
- 3 EcoVadis
The supply chain management system operated by the French CSR rating agency EcoVadis which is used by multinational corporations in 150 countries of North America, Asia, and Europe.