Sustainability Management

CSR Policy, CSR Promotion Framework and Materiality

CSR Policy

For the Showa Denko Group, “sustainability” means to be a sustainable company that can give satisfaction to its stakeholders by providing them with products and services that are useful for society and unique to the Group with a focus on the environment, society and governance (ESG), thereby creating both economic and social value, and also to make contributions to the sustainability of international society.In order to make contributions to the sustainability of international society, we set the Showa Denko Group’s CSR Policy, based on which we conduct our activities.

For the Group, CSR means to make social contributions through business operations, with all employees taking actions sincerely in line with Our Vision and Our Code of Conduct. In Our Vision, we are committed to contributing to the sound growth of international society as the Group’s basic approach, and we believe that working for the achievement of the SDGs through our business activities will help us give satisfaction to all stakeholders, which the Group upholds as its mission.

As the main theme for the Policy, we have upheld, “Creation of economic and social value through deepening of risk management on the basis of safety and compliance, and through creation of business opportunities on the basis of CSR communication.” We need to ensure safety to be “qualified as a manufacturer,” and ensure compliance to be “qualified to participate in competition.” The Showa Denko Group, having such “qualifications,” will contribute to reducing risks for society and increasing associated value through risk management and communication with stakeholders. At the same time, we will enhance our corporate governance (corporate soundness) and conduct activities to create KOSEIHA Businesses, thereby creating economic and social value to become a sustainable “social contribution company.”

CSR Promotion Framework

CSR activity-related policies and plans are deliberated by the Management Committee composed of the president, corporate officers, and Audit & Supervisory Board members and are then finalized by the Board of Directors.
For CSR-related issues, we have the Sustainability Promotion Council, Responsible Care Promotion Council and IR Promotion Council as advisory bodies to the Management Committee. Through these organizations, we discuss individual issues related to CSR, such as risk management, compliance, progress in contributing to the achievement of the SDGs, and measures against climate change and other environmental issues. We then incorporate the results of the discussions in our CSR plans and activities.
Moreover, our divisions and plants conduct Responsible Care, risk management, human rights and compliance activities by receiving support from Responsible Care, CSR & General Affairs, Human Resources, and other staff departments. For contribution to SDGs, the disclosure of climate-change- related information in response to the activities of the TCFD, and other issues to be tackled across the organization, we are conducting cross-functional activities.

Materiality and core tasks

Aiming to contribute to realization of sustainable society, the Showa Denko Group analyzed materiality of impacts of its business activities on stakeholders, economy, society and environment, and selected 14 material issues in 2015.
In 2019, in order to clarify, both internally and externally, the social tasks to be prioritized by the Group, we have classified the 14 material issues into three core task groups, and then set the medium to long-term policy for each of the tasks. We will also set specific KPIs for each of the material issues and disclose the indicators when they are decided. By implementing initiatives based on the policies and KPIs, we aim to make achievements in a steady manner.

■ Core tasks and materiality

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

■ How to select material issues

Step.1 Conduct a survey and identify the issues to be examined.

  • Identify the issues that stakeholders want the Group to deal with in reference to the core subjects of ISO 26000 and the GRI guidelines.
  • List the important items and issues to be examined by Showa Denko as a manufacturer and a chemical company.
Step.2 Select particularly important items.

  • Select particularly important items based on the Showa Denko Group’s Vision, Medium-Term Business Plan, annual plans, business execution system, Our Code of Conduct and other guidelines.
  • Check whether the themes of past activities align with the core subjects of ISO 26000.

Step.3  Prioritize the items and focus on the priorities.

  • Analyze materiality from the viewpoints of stakeholders and the company to prioritize the items.
  • Evaluate the materiality of impacts on stakeholders in reference to the results of surveys conducted for them.
  • Evaluate the materiality of impacts of the company’s business activities in consideration of their influence on society and on financial information.

Step.4 Check appropriateness.

  • Interview internal related departments, make decisions at meetings of the former CSR Committee chaired by the president, and report the results to the Board of Directors.
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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