Sustainability Management

Our viewpoint about sustainability

Materiality for sustainability of the newly integrated company

In accordance with its purpose to “Change society through the power of chemistry,” the Showa Denko Group aims at sustainable growth and enhancement of enterprise value by solving social issues and providing value to society through its technologies and businesses. In February 2022, the Group identified its materiality for sustainability of the newly integrated company, which is set to start in 2023.

Through the power of chemistry, we intend to contribute toward realizing an affluent and highly recycle-oriented society, and carbon neutrality. Our materiality will help realize such society and our long-term vision.

The three items of materiality reflect our aspirations as described below:

  • 1.Strengthen competitiveness and create social value through innovation
    • We will promote further innovation through internal and external co-creation efforts for solving social issues, thereby becoming a world-class company with competitive and earning power and contributing to sustainable global society.
  • 2.Gain social credibility through responsible business management
    • We will reduce environmental impact of the entire product life cycle, thereby limiting negative impact on natural environment.
    • We will create a workplace environment that allows all people related to our Group to work safely and with a sense of security.
    • We will provide high quality in a stable manner to maximize customer value.
  • 3.Promote talent and corporate culture with autonomy and creativity
    • We will promote corporate culture based on diversity and high ethical standards, thereby encouraging activities of autonomous professionals.

We will establish individual KPIs (key performance indicators) based on the above materiality, and determine our course of action.

■ Steps in the consideration of materiality

  • Step.1 Selection of themes
    • We selected themes out of various important social/environmental issues in consideration of such sustainability guidelines as GRI, SASB and SDGs as well as SDK’s management strategy in terms of purpose, values and long-term vision.
  • Step.2 Prioritization in view of importance for SDK and its stakeholdersけ
    • After discussions by the management team about long-term value to be provided by SDK, we prioritized the selected themes. (As a result, we identified our materiality as “Gain social credibility through responsible business management,” “Strengthen competitiveness and create social value through innovation,” and “Promote talent and corporate culture with autonomy and creativity.”)
  • Step.3~ Verification as well as determination of KPIs and course of action (future plans)
    • Dialogue with stakeholders
    • Establishment of individual KPIs and action plans for their realization
    • Discussions at the Board of Directors’ meetings

    Previous Materiality

    The Showa Denko Group’s materiality selected in 2015 is as described in the table below.
    We will implement initiatives and announce the actual results based on this materiarity.

    Core tasksMedium- to long-term policyMateriality
    Contribution to achievement of SDGs through business activities By making effective use of the Group’s products, technologies, and services, we will contribute to the creation of a society where affluence and sustainability are harmonized.
    · Promote R&D in consideration of the SDGs
    · Monitor contribution to the SDGs made through business activities and announce the results
    ◦Provision of products, technologies and services
    ◦Access to Essential Services
    ◦Consumer Safety and Health Protection
    ◦Participation in Community Activities
    Tackling environmental issues We will conduct Responsible Care activities with a strong focus on “responsibilities as a manufacturer and as a user,” thereby contributing to the solution of global environmental problems.
    · Reduce GHG emissions
    · Foster 3Rs to reduce waste generation
    · Reduce the discharge of chemical substances
    ◦Prevention of Pollution
    ◦Use of sustainable resources
    ◦Measures against climate change
    Establishment of sustainable methods for human resource development and improvement in working environment We will develop diverse human resources made up of people who can achieve growth with their company and contribute to a sustainable society, while also providing individual employees with workplaces where they can work with peace of mind and in good health.
    · Develop employees and support their growth
    · Promote diversity
    ◦Development of Human Resources
    ◦Creating a comfortable workplace
    ◦Equipment safety
    ◦ Occupational Health and Safety
    ◦Thorough corporate ethics
    ◦Protection of intellectual property
    ◦Decision-making process and structure

    CSR Policy

    The Showa Denko Group established the following CSR policy in 2019.  This policy will be revised at the time of establishment of a new company in 2023 through integration of Showa Denko K.K. and Showa Denko Materials Co., Ltd.

    CSR Promotion Framework

    The Showa Denko Group’s sustainability program is promoted by Group CSO under the supervision of Group CEO. The management team, corporate headquarters, business divisions, plants and Gourp companies are working together to promote cross-functional projects and internal cooperation. Important matters such as sustainability-related policy and programs are discussed and decided by the Management Committee, and then referred to the Board of Directors.
    As from 2022, we changed the way in which the Sustainablity Promotion Council is held. Group CXOs, including Group CEO, meet once a month to discuss medium- to long-term sustanability strategy, materiality, and engagement with stakeholders.

    Toward the future
    Showa Denko and Showa Denko Materials (former Hitachi Chemical) will be integrated into one corporate entity in 2023. For the vision, strategies and present measures that Showa Denko and Showa Denko Materials are promoting for the newly integrated company, please refer to SHOWA DENKO Report 2021.


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