Our Approach to Resource Circulation (Circular Economy)

The Denka Group is actively engaged in the development and provision of new solutions that promote the reduction of environmental burden and the efficient use of plastics, taking advantage of its integrated manufacturing facilities and product development capabilities ranging from synthetic resin materials to polymer processing and molding. Furthermore, the Denka Group participates in the Clean Ocean Materials Alliance (CLOMA)^※ and is involved in initiatives in which the industrial sector collaborates.

• ※Established in 2019, this alliance aims to accelerate innovation through collaboration among various companies to prevent marine pollution caused by plastic waste disposal.

Our response to the "Plastic Resource Circulation Act"

The importance of promoting the recycling of plastic resources in Japan has been increasing in response to issues such as ocean plastic waste, climate change, and the strengthening of waste import regulations in various countries. In this context, the "Plastic Resource Circulation Act" was promulgated in June 2021 and came into effect on April 1, 2022. Our response to this law is as follows.

Response to the Plastic-Use Product Design Guidelines

1. Companies must promote the launch of products with reduced environmental impact.
2. We will promote the launch of products using bioplastics.

• ※We will continue to respond to customer requests and conduct research and development of seed products in accordance with the law, and will continue to launch products taking into consideration the plastic use product design guidelines.

Regarding the voluntary collection and recycling program by manufacturers and sellers

1. We promote the chemical recycling business.

• ※Operation of the chemical recycling plant started in March 2024.

Companies must establish and implement goals and plans for the reduction and recycling of plastic waste.

1. As a measure to curb emissions, we will continue to promote the commercialization of valuable resources.
2. As a measure for recycling, we will continue to promote recycling and thermal recovery.
3. We will continue our efforts toward achieving zero emissions by promoting the reduction of final disposal amount (landfill).

Other responses

1. Companies must conduct education and training for employees on the reduction and recycling of emissions.
2. Companies clearly define management departments and persons responsible for each business site, appropriately grasp the status of emissions reduction and resource recycling, and manage records of these activities.

Chemical Recycling

In 2023, we commenced the commercialization of the chemical recycling of polystyrene resins in collaboration with our consolidated subsidiary, TOYO STYRENE CO., LTD. We have introduced technology from Agilyx Corporation in the United States and decided to construct a plant (annual processing capacity: approximately 3,000 tons) at our Chiba Plant, which began operation in March 2024. As a contribution to the environment, we expect that the application of the chemical recycling process will reduce CO ₂ emissions by approximately 40% on a life cycle basis compared to the existing simple incineration process, taking into account the new emissions generated by this equipment (including the reuse of by-products). We will continue our efforts toward the early realization of full-scale implementation.

Circular Partners（CPs）

In March 2023, the Ministry of Economy, Trade and Industry (METI) established the Circular Partners partnership to promote collaboration among industry, government, and academia in order to achieve a circular economy based on its Growth-Oriented Resource Autonomous Economic Strategy. The Company agrees with these efforts and participated in the partnership in April 2024, setting the following goals to promote a circular economy.

• ※D-NODE is a registered trademark of DENKA COMPANY LIMITED.

ISCC PLUS certification

ISCC PLUS certification is an international certification system that guarantees the management and reliability of products using sustainable resources such as recycled materials and biomass. With this certification, we can now handle products made from sustainable raw materials using the mass balance approach ¹. We believe that ensuring the reliability of the mass balance approach and conducting appropriate management and operation play an important role in promoting resource recycling, and the Denka Group will continue to comply with the requirements of ISCC PLUS certification in accordance with the latest ISCC regulations.

• ※1The mass balance approach is a distribution management method that allocates the characteristics of products to be produced according to the input amount of specific raw materials when different raw materials (e.g., petroleum-based raw materials and recycled raw materials from waste plastics) are mixed.

For the status of obtaining other external certifications, click here.

Environmentally-friendly containers

Denka Polymer, which manufactures and sells plastic food containers, is promoting the development of environmentally friendly containers using Denka's developed "Biomass BOPS" (mass balance method^（※1）) and BOPS sheet "Eco-Clear", which has achieved a 35% reduction in weight from A-PET.

SDGs/List of socially and environmentally conscious products

Use of LCA

Denka has been conducting LCAs since fiscal 2024. We ascertain and manage greenhouse gas emissions at each stage of the product and service life cycle. Furthermore, by introducing LCAs at the product development stage, we are promoting the visualization of environmentally friendly products.