Structure of Sustainability Initiatives

Shin-Etsu Group Business Principle

The Group strictly complies with all laws and regulations, conducts fair business practices and creates unrivaled value for society and industry through the provision of key materials and technologies.

Basic Sustainability Policy

The Shin-Etsu Group will:

  1. 1. Do our best to increase the Group's corporate value through sustainable growth and make multifaceted contributions to society.
  2. 2. Carry out all our company activities while always placing the utmost priority on safety.
  3. 3. Expand those businesses that contribute to the reduction of greenhouse gas emissions.
  4. 4. Maximize the efficiency of product development and manufacturing, and contribute to higher efficiency of society by supplying our products thus produced.
  5. 5. Engage in business activities while taking biodiversity into account and seeking harmony with the global environment.
  6. 6. Strive to respect human rights, assure equality in employment opportunities, and support the self-fulfillment of our employees.
  7. 7. Appropriately disclose information in a timely manner.
  8. 8. Carry out healthy, trustworthy, transparent corporate activities based on the integrity of the Group's ethical values.

Revised December 2021

Structure of Initiatives

Sustainability 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.

Sustainability Organizational Chart

ESG Organizational Chart

Issues and Progress of Sustainability

The issues and achievements of sustainability in FY2022 and the activities scheduled for FY2023 are as follows.

Issues Progress in FY2022 Schedule for FY2023
Human rights due diligence1
  • ・Conduct supply chain human rights risk surveys (domestic and overseas group companies)
  • ・Implementation of human rights education
  • ・Conduct supply chain human rights risk surveys (ongoing)
  • ・Develop human rights awareness and educational programs
Response to TCFD2
  • ・Discussed specific measures aimed at achieving carbon neutrality
  • ・Promotion of carbon neutrality
Integration of SDGs and management
  • ・Publish a series of articles related to the SDGs in the company newsletter to deepen the Group's understanding of the topic
  • Integration of SDGs and management
・Develop and supply products that contribute to SDGs.(ongoing)
  1. 1 Human rights due diligence
    An activity whereby 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. 2 Task Force on Climate-related Financial Disclosures (TCFD)
    A special team focusing on disclosure of financial information concerning climate change, which was requested by G20 and established by the Financial Stability Board (FSB) in December 2015. In July 2017, the TCFD published a set of recommendations calling for corporations to analyze their risks and opportunities based on future scenarios and various mid to long-term predictions of climate change, and to disclose the impact on their finances to investors, etc.

Exchange of opinions with Outside Director

We invited Mr. McGarry from PPG, who was newly appointed as a Director of our company on June 29, 2022, as a lecturer and held an opinion exchange meeting on "sustainability." Mr.Saitoh, Chairman of the Sustainability Committee, and members of the committee participated in the meeting to exchange opinions, and discussions were held on PPG Industries' sustainability initiatives and how to disseminate them within PPG.

Outside Director Mr. McGarry  introducing a case study at PPG (June 2022, Shin-Etsu Chemical Head Office)

Outside Director Mr. McGarry introducing a case study at PPG
(June 2022, Shin-Etsu Chemical Head Office)

Lecture by Outside Director Mr.McGarry

Lecture by Outside Director Mr.McGarry
(June 2022, Shin-Etsu Chemical Head Office)

List of Executives in Charge of Sustainability Initiatives

Position Name Current Positions
(related to Sustainability)
Key Sustainability Issues
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
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
Managing Corporate Officer Fumio Arai In charge of Purchasing Key Issue : Promoting CSR procurement and the diversification of supply sources
Managing Corporate Officer Yukihiro Matsui In charge of Patents Key Issue : Respect for and protection of intellectual property
Managing Corporate Officer Masaki Miyajima In charge of Business Auditing Corporate Governance
Corporate Officer 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 Officer Yoshimitsu Takahashi In charge of General Affairs, Environmental Control & Safety Relations Corporate Governance
Key Issue : Health and safety of employees and contractors
Key Issue : Energy-Saving, Resource-Saving, and Reduction of the Environmental Impact
Corporate Officer Kai Yasuoka Personnel & Labor Relations Key Issue : Respect for human rights, the development of human resources, and the promotion of diversity

As of June 29, 2023

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 f irmly 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 f lexibly 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 f irst in Japan, signed a document to support GCNJ's Tokyo Principles for Strengthening Anti-Corruption Practices in February 2018.

Key Sustainability Issues - The Foundation of All Activities: Legal Compliance, Fair Corporate Activities

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.

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.

Global Compact Ten Principles

Evaluation from Outside the Company

The Company is incorporated in the following Sustainability index. (foot note of FTSE Russell)


FTSE Blossom Japan Sector Relative Index

2023 Sompo Sustainability Index

S&P/JPX Carbon Efficient Index


*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.

*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, 2023

Utilization of Supply Chain CSR Management Systems

The Group utilizes supply chain CSR management systems, such as RBA Online1, Sedex2, EcoVadis3, and CDP4 to disclose CSR information. In FY2022, the CDP evaluation was A-, and the EcoVadis evaluation was silver.

  1. 1 RBA 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.
  2. 2 Sedex
    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.
  3. 3 EcoVadis
    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.
  4. 4 CDP
    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.