Human Capital: Human Resources Foundation

As a foundation for supporting its business competitiveness, the Shin-Etsu Group is working, in an integrated manner, to secure and retain talent, promote diversity, develop flexible and highly productive work styles, and ensure safety and health. We believe that fostering an environment in which employees can feel secure, fully demonstrate their abilities, and grow over the long term leads to stable operations, improved productivity, and ultimately increased corporate value.

Securing Human Resources

We are continuously working to secure human resources in order to develop them from a long-term perspective and further improve our advantages in technology, quality, and stable supply. In our recruitment process, we prioritize individuals who can think critically for themselves and who can proactively identify challenges and work persistently to overcome them, even in a rapidly changing business environment.

Furthermore, to maintain our competitive position in the labor market and continuously secure the necessary human resources, we will continue to assess our levels of compensation and workplace conditions as part of the hiring process. We are also pursuing a merit-based approach to recruitment that opens up opportunities to a wide range of diverse talent, regardless of gender, nationality, age, disability, and similar factors.

In our recruitment process, we focus on creating a workforce that aligns with the realities of our business and workplace, and we systematically recruit and develop the necessary personnel while keeping future growth areas in mind.

Promotion of Diversity

5. Gender equality
8. Decent work and economic growth

Shin-Etsu Chemical places the highest priority on respect for human rights and aims to be a workplace where diverse people can demonstrate their abilities regardless of gender, nationality, age, or disability. Diversity is not simply a matter of expanding demographic representation; rather, we see it as a crucial element in bringing together different perspectives and experiences that lead to on-site improvements and the creation of new value.

By promoting the active participation of women, creating an environment where people with disabilities can work comfortably, and ensuring active opportunities regardless of age, we are fostering a workplace where everyone can feel secure and continue growing.

To learn more about how members of our diverse workforce are taking on new challenges, please read our “Shin-Etsu Challengers,” and “Our Sustainable Act” series of employee interviews.

Promotion of Women’s Participation and Advancement

In order to promote women’s participation and advancement, the Group set a five-year goals in FY2021. From FY2026, we set new two-year goals and started to work on them.

Goals to promote women’s participation and advancement in the next five years from FY2021, the company aims to achieve the following:

  • 1.

    The rate of hiring women will be 40% for administrative positions and 10% for engineering positions.

  • 2.

    The number of women in managerial positions, including junior manager level, will be quadruple compared to the number in FY2014.

グラフ:採用時のFemale比率
グラフ:係長級を含むFemaleの管理職者数

Scope:Employees hired by Shin-Etsu Chemical and working in Shin-Etsu Group companies.

Goals to promote women’s participation and advancement in the next two years from FY2026, the company aims to achieve the following:

  • 1.

    The rate of hiring women will be 40% for administrative positions and 10% for engineering positions.

  • 2.

    The number of women in managerial positions, including junior manager level, will increase to 10% compared to the number in FY2025.

Initiatives to promote women’s participation and advancement

  • 1.

    Promoting the development of a working environment to support a balance between childcare and work

    • Enhancement of information provision to support work-life balance

    • Continue and expand measures to enable employees to continue working

  • 2.

    Promote the operation of a fair personnel evaluation system for the appointment of women to managerial positions

    • Promotion of understanding of the system by holding regular evaluator training

  • 3.

    Providing learning opportunities to encourage employees to change their mindsets

    • Plan and hold trainings to change employees’ awareness of women’s participation and advancement

TOPIC

Women Engineers Symposium

With the aim of promoting the active participation of female employees in technical fields and strengthening human capital, we held the Women Engineers Symposium in November 2025. Participants from multiple departments — including research centers, production departments, and head office departments — gathered to discuss business introductions, technical challenges, and career development, advancing the construction of cross-departmental networks. While participants gained a deeper understanding of differences in business processes and technical areas, many also shared common challenges and offered opinions based on career perspectives unique to women engineers. We will incorporate these opinions into our future recruitment, retention, and success-related initiatives.

TOPIC

Ni-ful Gold certification obtained at Naoetsu Electronics Industry

Naoetsu Electronics Industry Co.,Ltd. has been certified as a Gold-certified company under the Ni-ful, Niigata Prefecture's certification system that evaluates companies that improve the working environment and promote women’s participation and advancement. The Gold Certification is awarded to companies that meet a board range of standards at a high level.

The company is actively working to promote women’s participation and advancement through its project “N✦Erumin.” Through “N✦Erumin,” the company aims to create a workplace where employees feel comfortable working by gathering opinions and requests through roundtable discussions with female employees and submitting proposals to the company. The company has already obtained the national "Eruboshi" certification, and this Ni-ful Gold certification was awarded in recognition of the activities of "N✦Erumin, in addition to efforts to encourage employees to take childcare leave and to introduce flexible working arrangements.

Creating a Better Workplace for People with Disabilities

We are working to create a workplace where people with or without disabilities can play an active role. Our employment rate of persons with disabilities was 2.71% as of March 2026, exceeding the legally mandated level and demonstrating our continued commitment to inclusive employment. At the head office, we are working to maximize employment opportunities by flexibly setting working hours and working locations according to the degree of disability and situation. At our plants, we are improving the environment from both a hardware perspective, such as facilities and equipment, and a software perspective, such as disaster drills, so that people with disabilities can work safely.

Wheelchair ramps(Shin-Etsu Chemical Gunma Complex)

Creating an Environment in Which Employees Can Contribute Regardless of Age

In April 2019, the company raised the retirement age from 60 to 65 after continuing discussions with the Shin-Etsu Chemical Labor Union. It is the first time that such a system was implemented at a major Japanese chemical company. We will also raise salaries and promote people based on personnel evaluation. By adjusting the employment environment after the age of 60, skilled workers at manufacturing sites will be able to pass on the technology and their experience to the next generation.

Initiatives for Promoting Work-life Balance

Shin-Etsu Chemical places the highest priority on ensuring the stable employment of its employees, believing that being able to focus on work while feeling secure leads to better results. Therefore, in addition to properly managing working hours and creating an environment where it is easy to take paid vacation, we have systems in place that flexibly accommodate various life events, such as marriage, childbirth, childcare, nursing care, and medical treatment.

Additionally, to accommodate the diversification of work styles, we have put in place flexible work options, such as flextime and telecommuting, which can lead to increased productivity, and promote their use depending on the characteristics of the work.

Proper Management of Working Hours

The Group aims to raise awareness about managing working hours, eliminate excessive working hours, and create highly productive workplaces. To this end, we are proactively introducing a system to accurately track working hours through systems such as smart cards for the security gate at the plant entrance and employee PC logs. In addition, we are promoting the development of systems and working environments that enable flexible and highly productive work styles, such as the flextime system and telecommuting.

Annual Paid Vacation

We encourage employees to take paid vacation, and meticulously monitor whether they take it, through site- and workplace-specific initiatives, such as maintaining schedules of planned leave and offering incentives to take it. Currently, the rate of paid vacation taken is approximately 80%. As a company involved in chemical manufacturing, where continuous operation is essential, we have shift workers who support the plant 365 days a year, including the year-end and New Year holidays. Nevertheless, we have been able to maintain a high rate of paid vacation taken by fostering a culture of mutual cooperation. Employees work together with a strong commitment to support the plant and maintain safe, stable operations.

Childcare Support

The Group supports employees’ childbirth and childcare. The Company has published the “Childbirth and Childcare Guidebook,” which summarizes systems and procedures related to childbirth and childcare, in an effort to create an environment that encourages employees to take advantage of our childcare support systems. As a result, many employees have utilized the childcare leave system, which allows employees to take childcare leave until their child turns three years old, and for two consecutive years, the average take-up rate for male employees has exceeded 80%. In addition, we grant a paid leave of five days to an employee whose spouse gives birth. Employees are allowed to use the short-time work system, which shortens their working hours for a maximum of two hours a day. This system can be used until their children graduate from elementary school. We also encourage use of the teleworking system. Childcare is supported according to local laws and regulations in overseas Group companies.

Main System for Childcare Support (Shin-Etsu Chemical)

*1From October 2017 onwards, employees can take childcare leave until their child reaches the age of two, provided they meet certain conditions.

Number of Employees Who Have Taken Parental Leave System*2

(people)

FY2023 FY2024 FY2025
Male Female Male Female Male Female
Consolidated 283 196 351 217 339 178
Japan 114 29 160 29 142 29
Overseas 169 167 191 188 197 149

*2The length of parental leave differs from country to country, because the program is based on local laws.

Rate of Childcare Leave Taken

(%)

FY2023 FY2024 FY2025
Male Female Male Female Male Female
Employees hired by Shin-Etsu Chemical and working in Shin-Etsu Group companies 87.7 100 96.2 100 88.1 100

Nursing Care Support

The Group has a nursing care leave system as shown in the chart below. The system enables employees to work in the company while caring for the elderly. In addition to the system documented in the chart below, we support caregiver employees through systems and operations that are as tailored as possible to each employee’s individual circumstances. For example, employees who are separated from their families due to caring for their parents are provided with travel expenses to temporarily return home once a month.

The Company publishes a Nursing Care Guidebook in which all of the necessary information on our nursing care system and care insurance is provided. Furthermore, we started health care and nursing support services in FY2014 to provide counseling by external experts.

Main System for the Nursing Care System (Shin-Etsu Chemical)

Number of Employees Who Have Taken Nursing Care Leave

(people)

FY2023 FY2024 FY2025
Consolidated in Japan 2 4 3

Career Support

Shinkansen commuting system

Our Shinkansen commuting system, introduced in 1989 to allow employees to commute long distances by Shinkansen at company expense, was expanded in 2023 to allow employees to use the Shinkansen to commute to districts where our plants are located. Previously, the use of the Shinkansen was only permitted for commuting from the plant districts to the head office. Now, the system’s expanded coverage makes it possible for more couples to continue their careers without living separately or quitting their jobs, which is important as the number of dual-income households increases.

Leave of absence for accompanying spouse on overseas assignment

Starting in 2023, the Group introduced a leave of absence system for employees to accompany their spouses on overseas assignments. This system allows employees to take a leave of absence for up to three years to accompany their spouse on an overseas assignment. This will allow employees to not only continue the careers they have built at the Group upon returning home, but also further enhancing their careers by incorporating the various new experiences, perspectives, and values gained while living abroad with their spouse.

Resigned employee registration system (return employment system)

In addition to the leave of absence for accompanying a spouse on an overseas assignment, in 2023 we also introduced a resigned employee registration system (return employment system) as another initiative to enable us to respond to a variety of “career design” needs. Our return employment system is a system for rehiring employees who were forced to leave the company due to childbirth, childcare, nursing care, spouse’s transfer, illness, injury, or other family reasons. Employees can be rehired within 10 years after leaving the Company.

Welfare and Benefits

Saved holidays system

If the annual paid leave granted in accordance with labor regulations has expired without being taken, a certain number of days can be treated as saved holidays. Employees may use these saved holidays for nursing care, for injury or illness, for volunteer work for regional disasters, or for donating organs or bone marrow transplants.

Counseling hotline for employees

As a counseling service for troubles at work or other issues, we have set up Dial Shin-Etsu, which is staffed by external counselors, who are specialists from outside of the company. Consultations are received anonymously and treated with strict confidentiality, but if requested by the consulter, the counselor will contact the Personnel and Labor Relations Department to discuss possible solutions.

Employee shareholding system

The employee shareholding system was established in 1979 with the aim of helping employees build financial assets over the medium to long term. Employees contribute funds in the form of payroll deductions from their salary and bonuses to be applied to the purchase of shares of the Company, which the system then purchases on a regular, ongoing, and systematic basis. Dividends on the shares are reinvested into more stock purchases. The system increases the sense of participation in management among employees, encouraging them to identify with shareholders in the shared goal of improving corporate value over the medium to long term.

Other systems

In addition, we have established asset-building schemes and mutual aid groups to provide support for weddings, childbirths, and sudden hospitalizations of family members.

Welfare facilities

Dormitories and company housing
We have dormitories and company housing near the head office and plants for employees who live outside the commutable area.

Recreational facilities
We have directly operated recreational facilities in Kanagawa, Shizuoka, Fukushima, and Niigata Prefectures. The Group’s employees can use these facilities with family and friends. Furthermore, we have partnerships with external recreational facilities, and subsidies are given to the users.

Health and Productivity Management

The Group is working to create a comfortable and safe workplace based on the idea that each person's physical and mental health improves the overall workplace atmosphere and productivity.

For more details, please see the "Occupational Health and Safety / Safety and Disaster Prevention" section.

Occupational Health and Safety

Regarding safety as a fundamental prerequisite for our business operations, we will continue to improve the standards of occupational health and safety as well as safety and disaster prevention, and to promote initiatives to ensure the safety, health, and stable operations of Group employees.

For more details, please see the "Occupational Health and Safety / Safety and Disaster Prevention" section.

*Eligibility for the programs described under “Human Resources Foundation” is limited to employees of and loaned employees from Shin-Etsu Chemical.