SAKAI CHEMICAL INDUSTRY CO., LTD.

SUSTAINABILITY

MISSION / VISION

The Sakai Chemical Group was founded in 1918, initially focusing on manufacturing zinc oxide, a material for face powder. At the time, face powder often contained white lead and caused lead poisoning in women who wore makeup as well as infants through breastfeeding, becoming a social problem. This led to a demand for face powder with a higher degree of safety, prompting the Company to begin commercial production of zinc oxide.
Since then, our Group’s business has grown to include barium and titanium dioxide through our pursuit of white pigments, and we have honed our technological capabilities mainly in inorganic powder processing to address diverse social issues. Today, our business encompasses not only pigments but such diverse fields as electronic materials, cosmetics, and organic chemicals.
Our Group’s mission is “Chemistry for a Friendly Future.” This means creating a future where everyone can live with joy and happiness through our technology. This is our mission. However, to achieve this, we must first be a company full of vitality that can energize those around it. This is why we have made being an "Exciting Company" our organizational vision.
To create such a future, we have compiled what we consider essential as our materiality into four themes.
Below, we present our initiatives to become a sustainable company and create a sustainable future.


Toward the Realization of Sustainability

Toward the Realization of Sustainability

we formulated our concept of materiality, a set of issues that we must address as a priority in order to both solve social issues and enhance corporate value. In determining materiality, we have divided issues into four themes, focusing on the present and the future as we aim to "create a friendly future through chemistry." We will describe our approach and materiality for each of these themes below. Going forward, we will conduct awareness-raising activities so that our employees can recognize this as their own concern, as well as formulate concrete plans and set KPIs to achieve our goals.

The Sakai Chemical Group Basic Human Rights Policy

We all possess an inherent right to ensure safety and freedom, and to live happily as humans. We must not only pursue our own happiness but also consider the happiness of others and live together in harmony. We believe that this philosophy of respecting human rights is crucial in solving social issues through our business activities. That is why, as of October 1, 2022, we have established the Sakai Chemical Group Basic Human Rights Policy.

This Basic Human Rights Policy has undergone an external review by our legal advisor, Baker & McKenzie (Gaikokuho Joint Enterprise). It was also approved by the Board of Directors on September 26, 2022.

Make People Happy

We want to be an "Exciting Company" that energizes us personally and has a positive impact on those around us. When we are able to work hard to move our company in the right direction and grow, it makes us excited and gives us an even greater desire for personal growth. To create such a virtuous cycle, we will transform our company into a place where employees can work with a sense of hope and pride while feeling that their work is meaningful and experiencing personal growth. We will also create a safe and comfortable environment and foster a culture and climate inclusive of diversity so that personnel who resonate with our philosophy can work to their full potential over the long term.

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In addition, our production activities can only continue by getting an understanding from the local community and by maintaining and building good relationships with them. In addition to continuing safe and accident-free operations to ensure safety and security, we will also support the personal growth of our workers and contribute to the creation of a healthy society by actively participating in and sponsoring various events as a member of the local community.

Materiality

Group Initiatives

(1) Foster human resources and create a corporate
culture where employees can feel their growth

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Establish a system that motivates people to tackle challenges and take action

(2) Create a comfortable working environment

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Develop a better working environment (in terms of place and time) Create a workplace environment with vitality Promote diversity

(3) Contribute to local communities

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Def

Promote dialogue with local communities and affiliation with local organizations

Protect the Global Environment

As the operator of chemical business, the proper management of chemical substances is essential for us, and we pay attention to all processes from the procurement of raw materials, manufacturing of products, and post-sale use by users to the final disposal.

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We also own our own final disposal site where waste is buried, and we manage it responsibly to the very end. However, since this activity directly affects the natural environment, we have the responsibility to operate the site with the utmost consideration for its impact on the area, including the surrounding region. In addition to purifying the rainwater that flows into the site, we also pay close attention to the protection of ecosystems and biodiversity. We are also committed to saving energy and reducing CO2 emissions in response to climate change, which has become more obvious in recent years, and achieving carbon neutrality, which is being addressed on a global scale.

Materiality

Group Initiatives

(4) Manage chemical substances appropriately, reduce environmental impact, and implement measures to improve product safety

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Def

Promote energy conservation
Switch to renewable energy
Recover and reuse valuable materials

(5) Reduce industrial waste emissions

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Promote the 3Rs (reduce, reuse, and recycle)
Review raw materials, fuels, and production processes
Recycle industrial waste

(6) Give consideration to biodiversity

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Reduce water usage and purify wastewater

Solving Social Issues
Through Manufacturing

We have brought the world catalysts that decompose NOx (nitrogen oxides) and dioxins, catalysts for PET polymerization without the use of heavy metals, stabilizers for vinyl chloride, and fine titanium dioxide and zinc oxide for protecting people from ultraviolet rays, and we are now working on the development of a carbon recycling catalyst. In the future, it will be important to maintain and improve the global environment without presupposing mass consumption and mass disposal while at the same time acquiring energy efficiently. We also believe that people's awareness of hygiene has changed and progressed because of the recent COVID-19 outbreak. In these times, what value can we offer through manufacturing? We believe that the meaning of our existence will be questioned as we aim to "create a friendly future through chemistry."

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To realize a society in which people around the world can live happily as human beings, we must have a high awareness of not only the global environment but also of human rights. Because many of the raw materials we use are imported from overseas, we will pay close attention to the social conditions of the suppliers and the working conditions of the people who work there.

Materiality

Group Initiatives

(7) Create products and services that help solve environmental and social issues

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Microplastic bead alternative products
Ammonia synthesis catalysts
Carbon recycling catalysts
Examples: all-solid-state batteries, 5G-related materials, and antibacterial/antiviral materials

(8) Promote responsible procurement

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Inform suppliers and request cooperation, audit business partners, etc.

Building a Transparent and
Strong Management System

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The cornerstone of all of the above initiatives is corporate governance. It is essential to build and maintain an objective and transparent management structure for doing the right things in the right way. Therefore we will work to improve the effectiveness of the Board of Directors and strengthen our risk management. In addition, we will disclose both good and bad information equally and proactively in order to deepen understanding of our company by our various stakeholders, including shareholders, investors, customers, suppliers, and members of the local community, and enhance dialogues with them.

Materiality

Group Initiatives

(9) Increase the effectiveness of the Board of Directors

Def

Conduct surveys to assess the effectiveness of the Board of Directors
Implement improvements based on surveys
Create a management talent development plan
Operate the Nomination and Convocation Committee

(10) Understand risks and take countermeasures

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Conduct risk/compliance training, raise awareness, etc.
Ensure efficient operation of committees and subcommittees

(11) Timely and appropriate information disclosure

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Promote IR/PR activities, enhance crisis management PR

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