Sustainability (MOS) Results
For the material issues identified by the Mitsubishi Chemical Group, targets are set and progress is measured with the Management of Sustainability (MOS) Indices. We will proceed steadily with initiatives on material issues by monitoring the yearly progress of each index.
Progress of the MOS Indices
Material issues for environmental and social impacts
Rate of reduction of GHG emissions (Japan, compared to FY2013)
COD (Japan)
* The FY2025 target is to maintain the FY2019 level of 1,600 tons
Rate of reduction of landfill waste* (Japan, compared to FY2019)
* Amount of landfill waste regularly generated in the Company’s routine production and logistics activity
Progress in LCA activities
As a step toward reducing environmental impact, resolving the issues of climate change and water resources, and building a recycling-oriented society, we have established indices to measure GHG emissions and water- and waste-related impacts and set associated targets.
We achieved an approximate 29% reduction in GHG emissions in Japan compared with fiscal 2013 through increased production efficiency and upgrading of facilities combined with the effect of reduced production volumes at our main business sites. We have continued to reduce chemical oxygen demand (COD) since fiscal 2019 mainly through capital investments in wastewater treatment plants. In the area of waste, where improved progress toward our target is needed, we will continue to reduce waste at business sites emitting high volumes of landfill waste through efforts to boost production yields and improve recycling rates.
Additionally, the Group has established targets for initiatives that are necessary in utilizing life cycle assessment (LCA) as a management tool and is promoting quantitative assessments of environmental impact and carbon footprint to reduce GHG emissions and other environmental impacts.
Examples of LCA application
The MCG Group uses LCA as a tool toward achieving carbon neutrality. Specifically, we apply it in a range of settings, from R&D and manufacturing to product proposal, in each of which it supports GHG reduction initiatives. Going forward, we will seek to expand its domains of application while accumulating relevant expertise.
Achievements
● Confirmed reduction in GHGs by switching to biomass raw material at the initial exploratory stage of R&D.
● Confirmed reduction in product carbon footprint through recycling and effective use of byproducts of the manufacturing stage.
● Based on hotspot analysis of products, we explored GHG reduction, taking account both the practical feasibility of proposed improvements and their effect on carbon footprint, before presenting our customer with a carbon footprint reduction plan.
Hotspot analysis
This enables us to establish a breakdown of the environmental impact of products for each life-cycle factor in order to identify those with the highest impact and thereby facilitate proposals to reduce environmental burden.
Material issues for business foundations
Level of customer satisfaction
The Group creates a variety of opportunities to engage in active and constructive dialogue with customers and other stakeholders as a way of promoting collaboration to realize KAITEKI. We value feedback from our customers and carry out an annual customer survey so that we can provide better services and improve customer satisfaction. In addition to satisfaction with services and products, the survey covers customer awareness of our sustainability initiatives and other items that allow us to track customer evaluations of the Group from multiple perspectives. Based on these results, we promote activities that meet our customers’ expectations and strive to maintain our high standards for customer satisfaction.
Employee engagement* / Wellness awareness*
* Percentage of favorable responses to set items in the employee awareness survey
The Group aims to raise employee engagement and wellness awareness to enable employees to reach their full potential and achieve higher levels of creativity and productivity. The graph above shows the percentage of favorable responses to relevant questions on the periodically held employee engagement survey, and the results and response tendencies of each question are reflected in our various measures.
Diversity among management
We use diversity in management as an indicator to ensure that management decisions are made by personnel with a wide range of experience and diverse values. In fiscal 2023, 30% of management met at least one of the two criteria of gender diversity and internationality. Going forward, we will include career diversity as an additional criterion for this indicator and monitor the percentage of executives and employees involved in important decisionmaking who meet one of these three criteria.
Evaluation related to the ESG stock index
In recognition of the Group’s initiatives, we have been included continuously in the ESG stock indices indicated below (as of June 30, 2024). Going forward, we will continue to review the insights and issues identified from the evaluation results and use them to further enhance relevant activities.
Dow Jones Sustainability Indices
MSCI Japan ESG Select Leaders Index*
MSCI Japan Empowering Women Index*
* The inclusion of the MCG Group 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 MCG 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.
FTSE4Good Index Series
FTSE Blossom Japan Index
Lost-time injury frequency rate (LTIFR)
Material issues for existence / Material issues in terms of risk management
Number of accidents
Based on the Group’s environmental and safety principle that safety is the foundation of the company’s very existence, and ensuring safety is the company’s social responsibility, we will continue to engage in monozukuri with safety as the top priority. We will ensure safe workplaces by eliminating unsafe conditions and behaviors and potential risks. We will also continue to lower our lost-time injury frequency rate and the number of accidents by enhancing psychological safety and instilling a strong awareness of safety throughout the organization.
Number of serious compliance violations
In fiscal 2023, there was one violation against a target of zero. We take a very serious view of the incident that occurred. In addition to taking appropriate actions in response, we have put in place measures to prevent recurrence under the guidance and supervision of the chief compliance officer. Moreover, under the Global Compliance Promotion Program, we will conduct educational and training programs, awareness surveys, and other globally standard measures as well as promote measures tailored to the culture and characteristics of each region to promote further compliance awareness among all employees.
Participation rate in information security training
The Group has established the Information Security Executive Committee to formulate information security policies and regulations, protect and manage information assets, and promote various security measures on a global scale. We provide security training each year to enhance the information security knowledge and awareness of all employees.
