Established on August 27, 2018
Revised on November 8, 2021
Revised on April 1, 2023
Revised on July 14, 2025
The Denka Group recognizes that sustainability issues (medium- to long-term sustainability) including consideration for global environmental issues such as climate change, respect for human rights, consideration for employee health and working environments and fair and appropriate treatment, compliance with relevant laws and regulations, fair and appropriate transactions with customers and business partners, and crisis management in the event of natural disasters are important issues that will determine the Group's continued existence. Accordingly, the Denka Group will actively and proactively address these issues.
Furthermore, from the medium- to long-term perspective of enhancing corporate value, we will work together with our business partners and everyone in our supply chain to address the United Nations Sustainable Development Goals (SDGs) toward the realization of a sustainable society and the solving of common issues facing humanity. Through our provision of innovations and solutions as a chemistry-based monozukuri company, we aim to be a company that contributes to society.
Under the vision (core values, purpose, and mission) that expresses Denka's future image and forms the basis of activities for all employees, the Denka Group has established The Denka Group ESG Basic Policy as our basic policy for ESG (environment, society, and governance) in business activities across the Group. We will strive to comply with each principle and enhance corporate value through the establishment of effective corporate governance based on high ethical standards.
This Basic Policy was formulated with reference to the "Charter of Corporate Behavior" of the Japan Business Federation (Keidanren), to which the Company is a member.
In order to respond appropriately to changes in social conditions and diversifying social issues, the Company will conduct timely and appropriate reviews of the contents of this Policy.
* Category descriptions: E (Environment), S (Social), G (Governance)
| E | Promotion of measures for climate change | The Denka Group is striving to develop and introduce innovative technologies such as expanding the use of clean energy, reviewing our business portfolio, and recovering and utilizing CO 2. By doing so, we aim to reduce greenhouse gas emissions by 60% from the 2013 level by fiscal year 2030 and achieve net zero carbon neutrality by 2050. Through these efforts, we will not only enhance our corporate growth potential and competitiveness, but also contribute to the realization of Green Transformation (GX) across the entire economic and social spectrum. |
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| E | Reduction of environmental impact and conservation and protection of biodiversity | The Denka Group recognizes that reducing environmental impact is an essential requirement for its existence and activities as a corporate entity. Based on this recognition, the Denka Group promotes the cyclical and efficient use of resources in its business activities, reduces environmental impact on air, water, and soil, and promotes the protection of nature and biodiversity as well as the conservation and reduction of limited water resources. |
| E/S | Sustainable economic growth and solving social issues | The Denka Group provides products, services, and solutions that contribute to sustainable economic growth and the resolution of social issues through innovation. To reduce environmental impact across the value chain, we will develop environmentally friendly products and technologies and actively promote the establishment of a circular economy. |
| S | Respect for Human Rights | The Denka Group respects the human rights of all people involved in the Group's business, including the abolition of forced labor, effective elimination of child labor, prohibition of discrimination and elimination of harassment in employment and the workplace, and recognition of the freedom of association and the right to collective bargaining. The Denka Group also conducts appropriate human rights due diligence and strives to raise awareness of human rights, thereby fulfilling its corporate responsibilities. |
| S/G | Promotion of diversity, equity & inclusion (DE&I), human resource development, and work style reform | The Denka Group recognizes the diversity and autonomy of all people working in the Group, ensures fairness, understands and utilizes their individuality, and fosters the development of individual capabilities and the transmission of unique technologies. Furthermore, the Denka Group will establish environments that contribute to improving engagement, support diverse ways of working for each individual, and promote work style reforms that achieve a balance between work and life. |
| S | Creating a safe and easy-to-work workplace | The Denka Group places workplace health and safety and facility security and disaster prevention as its top priority in all production activities and strives to create a workplace environment that is easy to work in and comfortable with consideration for health, free from serious accidents and disasters. |
| S | Participation in and contribution to the formation of good local communities and building of trust | The Denka Group actively participates in the formation of better local communities and contributes to their development as a good corporate citizen, thereby fostering relationships of trust with local communities. |
| S | Building trust with customers | The Denka Group strives to provide safe and high-quality products while building trust with all stakeholders through sincere and transparent communication to ensure that all customers are satisfied with our products, services, and solutions. |
| G | Fair corporate activities | The Denka Group complies with the laws and regulations of each country and region in which it conducts business, and engages in fair and free competition, appropriate transactions, consideration for the global environment, responsible procurement that does not involve human rights violations such as child labor and forced labor, and maintains sound relationships with political and governmental authorities. In its supply chain, the Denka Group is working to strengthen mutually beneficial relationships with its business partners based on its Partnership Building Declaration. |
| G | Constructive dialogue with stakeholders and information disclosure | The Denka Group actively, effectively, and fairly discloses financial and non-financial information, ensures the reliability of such information, and strives to engage in constructive dialogue with a wide range of stakeholders to enhance corporate value. |
| G | Risk Management | The Denka Group promotes strategic risk management, including the understanding of risks affecting corporate activities and the strengthening of responses to important risks. Furthermore, the Denka Group will implement organized crisis management in response to serious threats, including the actions of anti-social forces, terrorism, cyber-attacks, and natural disasters. |
| G | Protecting, managing, and utilizing tangible and intangible assets | The Denka Group recognizes that tangible assets and intangible assets such as confidential information and intellectual property are sources of its competitive strength, and is committed to their appropriate protection and utilization. The Denka Group appropriately protects and manages personal information, respects the legitimate intellectual property of third parties, and promotes digital transformation through the utilization of data. |
| G | Role of the President and CEO and thorough implementation of this Basic Policy | The Denka Group's management will ensure that this Basic Policy is communicated throughout the Group and will strive to enhance corporate value by establishing an effective Group governance system. In the event that a situation arises in which trust from society is lost in contravention of this Basic Policy, the Group management will take the initiative to resolve the issue, identify the cause, and prevent recurrence, thereby fulfilling its responsibility. The Denka Group also requests that supply chain stakeholders act in accordance with the spirit of this Basic Policy. |
The Sustainability Committee (chaired by the President) has been established within the Executive Division to supervise the proactive and active efforts of the Executive Division to address issues related to sustainability (medium- to long-term sustainability). The committee meets five times a year with the President serving as chairperson, the Executive Officer in charge of the Corporate Planning Department as vice chairperson, and the Executive Officer in charge of the Management Department as a committee member, with Directors, excluding committee members, present as observers.
The Committee deliberates and makes recommendations on sustainability initiatives implemented by the Executive Division and the achievement of non-financial target KPIs (Key Performance Indicators). In implementing these deliberations and recommendations, from the perspective of ensuring transparency and fairness in corporate decision-making and the realization of effective corporate governance, the Committee will consider the impact of risks and profit opportunities on our business activities, taking into account the level of consistency between our efforts to address sustainability issues and our management strategies and issues. The results of these deliberations will be reported to the Board of Directors.
In addition, The Portfolio Transformation Committee (chaired by the President) was established to promote a change to our business portfolio based on three elements: specialty, megatrends, and sustainability. By incorporating such indicators as CO 2 emissions and labor productivity, we aim to achieve our target of 100% three-star businesses by 2030.
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