- Sanyo Chemical's Sustainable Management
- Role of the Sustainable 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 the Most
- Promotion of Stakeholder Communication
- What We Aim to Realize from Now on
- Our Request for Your Understanding and Cooperation
Sanyo Chemical's Sustainable Management
Since our 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, we must also acknowledge that much of the deterioration of the global environment and the widening of social disparities at present has been caused by past corporate activities.
We are also aware of the need to transform the conventional decision-making mechanisms and personnel systems of our Group to be more transparent and contribute to improving employee engagement.
Our Group formulated the “Basic Policy on Sustainability” in FY2022, clarifying the new management stance of our Group to “aim for sustainable growth into the future by enhancing both social and economic value in cooperation with stakeholders.”
Role of the Sustainable Management Committee
Until last fiscal year, our Group had a Sustainable Management Committee, which reported directly to the Board of Directors and was chaired by the President and a CSR Promotion Management Committee, which reported directly to the Management Council and was chaired by the General Manager of the Responsible Care Division.
In FY2025, we reorganized our various committees to improve their operational effectiveness, and integrated the CSR Promotion Management Committee into the Sustainable Management Committee. The Management Council is the highest decision-making body for business execution, and the Sustainable Management Committee now reports directly to the Management Council. I serve as the committee's chairperson as the person in charge of sustainability.
Committee members comprise department heads from each function and persons appointed by a chairperson with diversity in mind, and will engage in highly specialized discussions and policy reviews. The Sustainable Management Committee examines processes for creating social and economic value for the sustainable growth of the entire Group. In particular, it deliberates and decides on policies and company-wide measures for addressing material issues (materialities) that require priority attention in relation to the environment, society, and governance, and implements these measures in relevant departments.
Recognition of Importance of Roles and Responsibilities One Must Fulfill
We must avoid "greenwashing," which means placing too much emphasis on "appearance" — how we present ourselves to the outside world or how we are perceived from the outside — at the expense of the effectiveness and substance of our activities.
Furthermore, a company cannot survive if it conducts environmental activities that lack economic rationality.
In our sustainability initiatives, we always emphasize practicality and substance, ensuring that they are not merely superficial. The Sustainable Management Committee continuously evaluates and confirms these initiatives, and prompt corrective action whenever any are deemed inappropriate or insufficient. We also disclose our 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 our 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.
As one measure aimed at "elimination of harassment," we held study sessions throughout the Group that included group discussions.
In addition, we have enhanced contact points of internal 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 website 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 the Most
All six of our Group’s material issues (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).
With the goal of enhancing both the economic and social value we provide, we are currently focusing our efforts on the seamless commercialization of Silk-Elastin®, which is a wound treatment and meniscus repair material with a new healing mechanism, as well as electronic noses and extracellular vesicle (exosome) purification kits.
In particular, we aim 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 developing an additive for lubricant additive (ACLUBE)-based E-Axle oil for electric vehicles, which has traditionally helped improve fuel efficiency in gas-powered vehicles, and on launching new products for peptide agriculture.
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 our 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.
In creating this sustainability website, we focused on providing comprehensive information about major Sanyo Chemical products that contribute to quality of life and or carbon neutrality. For products that contribute to carbon neutrality. We disclose the CO2 reduction contributions of these products as well as the basis for our calculations in the "Supporting the Environment" section. Please have a look.
Promotion of Stakeholder Communication
As stated in our Group’s “Basic Policy on Sustainability,” collaboration with stakeholders is an indispensable element for our Group to aim for sustainable growth into the future. In addition, in order for our Group to collaborate with stakeholders, it is necessary for them to understand the overall picture of 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 website 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 Aim to Realize from Now on
In FY2024, our Group withdrew from our low-profit superabsorbent polymer business and manufacturing business in China.
This withdrawal resolved a long-standing issue for our Group, marked a major step forward in restructuring, and created an environment more conducive to improving profitability.
Although these structural reforms will reduce our 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, our 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
Our 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 we have cultivated. We believe that this contribution will ultimately lead to our Group’s own sustainability efforts. 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 website in its entirety and gain a deeper understanding of our Group’s initiatives
We look forward to your understanding and support of our Group in the future as well.
Director, Managing Executive Officer
In charge of Sustainability and
Corporate Strategy
