- Overview of Sanyo Chemical’s Sustainable Management
- Positioning and Relationship between Sustainable Management Committee and Corporate Social Responsibility (CSR) Promotion Management Committee
- Recognition of Importance of Roles and Responsibilities One Must Fulfill
- Formulation of Human Rights Policy and Subsequent Initiatives
- What We Currently Focus On
- Promotion of Stakeholder Communication
- What We Aspire to Achieve in the Future
- Our Request for Your Understanding and Cooperation
Overview of Sanyo Chemical’s Sustainable Management
Since its founding, the Sanyo Chemical Group has been carrying out corporate activities based on our company mission, “Establish a better society through our corporate activities.”
As a result, we take pride in contributing to the “establishment of a better society” by developing a wide range of products that make society and people’s lives more comfortable and convenient through the chemical technology we have cultivated.
However, in response to the recent increase in environmental awareness, we were further aware that our corporate activities must contribute to the realization of a sustainable society by reducing the environmental impact of our entire supply chain, not only through the contribution of these products.
We are also aware of the need to transform the conventional decision-making mechanisms and personnel systems of the Group to be more transparent and contribute to improving employee engagement from the perspective of corporate sustainability.
Against this backdrop, the Group formulated the Basic Policy on Sustainability in FY2022, clarifying the new management stance of the Group to “aim for sustainable growth into the future by enhancing both economic and social value in cooperation with stakeholders.”
Positioning and Relationship between Sustainable Management Committee and Corporate Social Responsibility (CSR) Promotion Management Committee
Currently, we have a Sustainable Management Committee directly under the Board of Directors, with the President and CEO serving as the chairperson, and a CSR Promotion Management Committee directly under the Management Council, chaired by the General Manager of the Responsible Care Division.
The Sustainable Management Committee examines processes for creating economic and social value for the sustainable growth of the Group as a whole.
In particular, with regard to the environment, society, and governance, it is responsible for deliberating and deciding on policies and company-wide measures for the realization of material issues (materiality) that should be prioritized, and for implementing those measures in relevant departments.
On the other hand, the CSR Promotion Management Committee aims to link the implementation of the CSR Guidelines (CSR activities) to effective activities.
In particular, regarding the realization of carbon neutrality, which is one of our materialities, we have positioned reducing carbon dioxide emissions as our top priority issue, and we are building a system and a mechanism to formulate and implement specific initiatives for that purpose.
The activities of the CSR Promotion Management Committee are reported to the Sustainable Management Committee once a year.
Recognition of Importance of Roles and Responsibilities One Must Fulfill
We believe that there is a tendency of focusing too heavily on appearance and form over substance when it comes to sustainability and CSR, which are weighty challenges in corporate activities and not easily translated into tangible results. The term “greenwashing” aptly symbolizes this issue, and we feel it is important to prioritize actual effectiveness rather than just the external perception of our efforts. We aim to monitor our sustainability and CSR initiatives to ensure they are not just superficial, but always backed by effectiveness and reality. If found inadequate, we are committed to seeking course corrections and strive to disclose progress to the public as appropriate.
Formulation of Human Rights Policy and Subsequent Initiatives
In March 2023, we formulated and disclosed our Human Rights Policy to ensure that the Group does not directly commit human rights violations, nor overlook indirect involvement in light of various human rights issues being globally recognized, in the course of promoting management based on the Basic Policy on Sustainability.
In the Human Rights Policy, we have identified three significant issues in the “6. Identification of Human Rights Risks.” Of these, we have specifically promoted “health management” and the “elimination of harassment” in regard to “employee safety and health,” which is our most pressing issue.
In particular, with regard to the “eliminating of harassment,” we have been working very hard throughout FY2023 by holding group discussions and other study sessions throughout the entire Group.
In addition, we have enhanced contact points of whistleblowing and consultation for harassment both internally and externally.
We aim to realize a company where all employees can work without stress and with peace of mind at an early stage by raising awareness among officers and employees through the implementation of such study sessions and by establishing an environment that makes it easy to report and consult.
Please refer to the Respect for Human Rights section under “Social” on our sustainability webpage to see the status of efforts to address the other two prominent issues identified in 6. “Identification of Human Rights Risks” under the Human Rights Policy, namely “Labor in the Supply Chain” and “Human Rights Risks Due to Geopolitical Situations and Conflict Impacts.”
What We Currently Focus On
All six of the Group’s materialities are important issues that we should focus on. However, I would like to highlight the following two points to prepare for new businesses that will lead to a new growth path.
The first is the development of products that contribute to improving quality of life (QOL).
Specifically, we are currently focusing most on enhancing both economic and social value through the smooth commercialization for the wound healing and meniscus repair material silk-elastin with a new healing mechanism and for odor sensors, and the early commercialization of extracellular vesicle (exosome) purification kits.
In particular, we would like to proceed with early commercialization of silk-elastin based on its extremely high effectiveness shown as a result of physician-led clinical trials.
The second is the development of products that contribute to carbon neutrality.
Specifically, we are working on the launch of new products for peptide agriculture and the establishment of CCU (carbon capture and utilization) technology using our materials.
The development, manufacture, and sale of conventional chemical products that contribute to the comfort and convenience of society and people’s lives will remain the foundation of the Group’s business for the time being. Going forward, in addition to our conventional chemical product business, I strongly feel that it is necessary to steadily establish new businesses that reduce the environmental impact and contribute to the realization of a sustainable society and link them to a new growth path.
Promotion of Stakeholder Communication
As stated in the Group’s Basic Policy on Sustainability, collaboration with stakeholders is an indispensable element for the Group to aim for sustainable growth into the future.
In addition, in order for the Group to collaborate with stakeholders, it is necessary for them to understand the overall picture of the our sustainable management.
“Understanding the overall picture” refers not only to understanding what we are doing, but also to understanding the way of thinking and basic policies behind it, and we believe that communication that achieves such objectives is important.
As a general rule, this sustainability webpage on our corporate website is also updated annually based on these above principles . We hope that our stakeholders will share our perspective as much as possible.
What We Aspire to Achieve in the Future
In FY2023, the Group decided to withdraw from the superabsorbent polymer business, which had been experiencing a decline in revenue due to commoditization.
At the same time, we have also decided to withdraw from the unprofitable business of producing surfactants in China.
With these withdrawals, we believe that one of the long-standing issues for the Group has been resolved, and that structural reforms have made significant progress. This has brought a step closer to creating a profitable operating environment.
Although these structural reforms will reduce the Group’s sales, we will shift management resources from these low-profit businesses to the development, manufacture, and sales of higher-profit products and new products that constitute new businesses that will lead to the new growth path .
Through this portfolio transformation, the Group aims to become a highly profitable company as manufacturer of performance chemicals with unique functions, albeit on a smaller scale.
We believe that this is the path we must take for sustainable success.
Our Request for Your Understanding and Cooperation
The Group has been and will continue to contribute to the realization of a sustainable society through a wide range of products created using our unique technologies that no other company has. We believe that this contribution will ultimately lead to our own sustainability as a Group. We would like to convey this to all of our stakeholders and gain their understanding.
We would be truly delighted if you could take your time to explore our sustainability webpage in its entirety and gain a deeper understanding of the Group’s initiatives
We look forward to your understanding and support of the Group in the future.
Director, Managing Executive Officer
In charge of Sustainability and
Corporate Strategy
