Our Approach to Biodiversity

Coexistence with the natural environment is becoming increasingly important for establishing a sustainable society alongside climate change response, and the development of the frameworks for international information disclosure is gaining momentum.
The Denka Group has established the ESG Basic Policy, which includes the goal of reducing environmental impact and protecting biodiversity. Under this policy, we are working to understand our impact on the environment and maintain and improve biodiversity in accordance with the recommendations issued by the TNFD ^※.

• ※TNFD: Taskforce on Nature-related Financial Disclosure

Efforts for biodiversity conservation

Starting in September 2022, Denka began working to identify the intersections between its business activities and biodiversity and identify priority issues using the LEAP approach ^* recommended in the TNFD guidelines. Furthermore, as Denka's business sites (plants) are scattered throughout Japan and the surrounding natural environments vary, the company investigated the intersections between each of its business sites (plants) and the natural environment (April 2023 to March 2025).

• ※LEAP Approach: An integrated approach for evaluating nature-related issues based on scientific evidence, including points of contact between business activities and nature, dependencies and impacts, risks and opportunities. Consists of four phases: Locate, Evaluate, Assess, and Prepare.

Results of ENCORE analysis and on-site surveys

• ※19 sites covered: Omi Plant, Omuta Plant, Chiba Plant, Bibai Plant, Shibukawa Plant, Ofuna Plant, Isesaki (Ota) Plant, Gosen Site (Niigata Plant, Kagamida Plant), Denka Innovation Center
• ※2ENCORE: An analytical method to narrow down sectors and sub-industries and examine how they naturally depend on and are affected by the target

Preliminary survey of natural environment

Regarding the nine domestic business sites, we organized environmental data (the presence of areas important for biodiversity around the factory, the presence of areas where ecosystem integrity is rapidly declining, etc.) and confirmed the local points of contact with the natural environment from the perspective of site location and operational activities.
In addition, we are promoting exchanges of opinions with local governments where the sites are located to consider community-based initiatives, and are currently in discussions with the City of Machida, where the Denka Innovation Center is located, regarding activities for the conservation of rare plants.

Investigation and analysis of Omi Plant's dependence on and impact on nature in the applicable sectors

In the sector to which the Omi Plant belongs, we recognized that there is a strong impact on natural capital and a strong dependence on ecosystem services related to the categories of water, greenhouse gases, pollutants, waste, and species. Regions where the Omi Plant has contact with nature were identified as priority areas requiring particular attention.

Furthermore, we have begun investigations to check the situation of the forests distributed in the watershed area of the hydroelectric power, which is an important energy source for the Omi Plant, and the green space of the Omi Plant adjacent to the local residents' place of relaxation.

As shown above, for the category of natural capital, which has a strong dependence on and impact on nature, we are organizing and considering factors that cause changes to the ecosystem services on which we depend and the impact of our factory operations on natural capital, and examining issues related to our dependence and impact that should be prioritized.
In our examination, we will value collaboration with relevant organizations and communication with local experts on the natural environment, and link these to specific environmental conservation activities of the Denka Group.

1. Integrity of ecosystems: Assessment of species diversity, risk of extinction, and natural capital of ecosystems in the natural environment (region)
2. Importance of biodiversity: Evaluation of local importance such as being a legally protected area or an internationally protected area, a habitat of endemic species or a habitat of endangered species.
3. Water stress: Evaluation of the amount of water used in relation to the supply of water (freshwater) available in the natural environment (region)

Participation in TNFD Forum

Participation in Keidanren Nature Conservation Council

In October 2024, the Company will join the Keidanren Nature Conservation Council ^※ and make social contributions to biodiversity through the Biodiversity Declaration Initiative.

• ※The Keidanren Nature Conservation Council was established in 1992 to support nature conservation activities in developing countries and Japan, and to promote corporate nature conservation activities. As of November 2024, 141 companies are members of the Committee.

Community Activities to Protect Biodiversity