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

Since September 2022, we have been working to identify priority issues by finding points of contact between our business activities and biodiversity from the perspective of the LEAP approach ^* recommended by the TNFD guidelines. In addition, since our business sites (factories) are scattered throughout Japan and the natural environment surrounding each site varies, we are investigating the points of contact each business site (factory) has with the natural environment (April 2023 to March 2025).
Specifically, we are implementing initiatives to mitigate and avoid our impact on biodiversity in our business activities. In particular, we are taking company-wide measures, including the introduction of lighting that is less likely to attract insects at night and regular cleaning of water channels on our premises to improve water quality.
Furthermore, when newly using land or changing the way we use existing land, we assess the impact on biodiversity and strive to minimize such impact when it is determined that there is a risk of negative impact.

• ※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

Since 2022, we have been conducting quantitative assessments of biodiversity risks at our business sites.
For our nine domestic sites, we are organizing environmental data (the presence of areas important for biodiversity around our factories, the presence of areas where ecosystem integrity is rapidly declining, etc.) and continuing activities to confirm our points of contact with the natural environment from the perspectives of site location and operational activities.
In addition, we are promoting exchanges of opinions with local governments in order 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.

Proximity to areas of biodiversity importance (KBA ^※1) at production sites

To assess the potential impact of our business activities on biodiversity, we investigated our proximity to biodiversity-critical areas using resources such as the "Environmental Assessment Database 'EADAS'" operated by the Ministry of the Environment and the "KBA Map," the results of Conservation International Japan's KBA survey.
The survey covers an area within approximately a 5km radius of domestic production bases (20km radius for the Bibai branch factory only).
As a result, we confirmed that five of the following nine locations are located in close proximity to areas of critical biodiversity.

• ※1KBA: Key Biodiversity Area

In addition, to protect the endangered species of orchids (Cephalanthera falcata and Cephalanthera erecta) that grow naturally in the Innovation Center, we have installed protective fences to prevent people from entering the surrounding area, and have been measuring the number of plants for over 10 years.
In the future, when we identify rare or endemic species, we will continue our efforts to conserve and protect them.

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.

• Integrity of ecosystems: Assessment of species diversity, risk of extinction, and natural capital of ecosystems in the natural environment (region)
• 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.
• 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.

ISCC PLUS Certification

Our company sells “Biomass BOPS”, which maintains the transparency, rigidity, and food safety of the sheet “BOPS” made from biaxially stretched polystyrene resin while allocating biomass-derived raw materials using a mass balance approach.
This product is part of a product group that has received ISCC PLUS certification, an international certification system that manages and guarantees products using sustainable raw materials such as recycled materials and biomass throughout the supply chain.
By curbing the use of fossil resources and promoting the use of renewable resources, our company aims to reduce the burden on ecosystems and conserve biodiversity through product development and the use of sustainable raw materials, thereby contributing to the realization of a recycling-oriented society and coexistence with the natural environment.

Collaboration with Environmental Organizations

In Japan, we are working with governments, local authorities, companies, and regional communities through various activities, including participation in initiatives such as the 30by30 Alliance and Climate Change Initiatives, to conserve regional biodiversity including nine domestic business sites.
Under our resource recycling brand "D-NODE™", the Group is building a recycling-oriented model that maximizes resource value and reduces waste by utilizing a chemical recycling technology for polystyrene. In Ichihara City, Chiba Prefecture, through a public-private partnership with local residents and TOYO STYRENES (a Group company), we collect used polystyrene at 14 public facilities and re-resource it from target products with a sorting accuracy of over 85%. This reduces CO ₂ emissions by about 40% compared to incineration treatment. Furthermore, this initiative contributes to biodiversity conservation through the reduction of environmental burden by proper waste treatment. With the largest polystyrene production capacity in Japan, we will leverage our social influence to promote the coexistence of sustainable resource recycling and ecosystem conservation by deepening collaboration with local governments, companies, and regional communities in addition to expanding our treatment capacity.

Community Activities to Protect Biodiversity