Nonprofit Organization
Junkan Workers Club
Tamio Yamaguchi, Director
For about 20 years, I have been writing third-party opinions on reports from several companies. During this time, my evaluation perspective has changed in response to the times, but one thing that remains constant is whether or not a report expresses the company's current and future image. Therefore, I believe that both "points that can be evaluated" and "points to expect in the future" are essential points to clarify the current and future image and improve corporate value. If the latter points are even slightly helpful and serve as an opportunity to improve corporate activities, I will be truly fulfilled as a commentator.
This report contains many results that correspond to the expectations expressed in last year's third-party opinion. I have no arrogant desire to say that the third-party opinion promoted the initiatives, but as a commentator, I found the report exciting.
In last year's third-party opinion, we stated the following "expectations."
1 Examples of this are the President's message, which states, "With KPIs linked to time axes, we will accelerate the creation of businesses using methods such as collaboration with startups and M&A." This point has been addressed, as 2030 financial and non-financial KPIs have been set, and strategic investments to support those KPIs have also been indicated. Furthermore, regarding business creation, a CVC (Corporate Venture Capital) has been established, and its background, aims, expectations, etc. have been detailed.
2 As for this point, the relationship with materiality supporting the strategy has been clarified, and it has been conveyed that this policy is being utilized in various ways to incorporate sustainability issues into management, such as risk management and dialogue with stakeholders. Regarding KPIs, while they do not necessarily match the 13 items, non-financial KPIs related to human resource value creation and management value creation have been established and are being utilized in the management plan.
3 As for this point, the previous corporate philosophy, "The Denka Value," was composed of mission and actions, but the new corporate philosophy presents it as "OUR VISION," which encompasses core values, purpose, and mission. It is particularly noteworthy that the establishment of this corporate philosophy began with discussions among younger employees.
4 As for this point, The Sustainability Committee was established in April 2023. I believe that this committee will promote more proactive efforts by the executive department. In the future, it may be worth considering the participation of directors beyond observers and the establishment of committees within the Board of Directors.
There are still some matters that have not yet met expectations. Last year, in response to the statement, "We are preparing to visualize non-financial efforts linked to future finances," I expressed my hope that you would demonstrate how non-financials transition to financials over time. As far as I can see from the reports of Japanese companies, this is still a minority, but investors are requesting, "We want information on how it affects corporate earnings, not vague ESG information." Similar requests can be found in ISSB standards, the revised Corporate Governance Code, and Cabinet Office Ordinances on corporate disclosures.
This report has been significantly expanded (from 58 pages to 84 pages) in response to points raised during dialogues with institutional investors. This reflects our strong intention to overcome challenges and enhance medium- to long-term corporate value through constructive dialogue. Furthermore, we hope to convey our commitment to further deepen ESG management in the new eight-year period to stakeholders other than investors. A symbolic example of this is the establishment of new organizations (The Sustainability Committee, The Portfolio Transformation Committee, Finance Strategy Department, New Business Development Department, etc.) and our participation in various organizations (United Nations Global Compact, Green x Digital Consortium, etc.). As Director Yamamoto stated, "The future is words, the future is systems," I would like to add to this the phrase, "The future is participation." I believe that through participation, our horizons will be greatly expanded, and we will be able to establish a new corporate image that maintains global standards.
Next, I would like to mention two points that I hope to see further enhanced in the future. The first is human rights. In June 2023, you expressed your support for the UN Global Compact (UNGC), and in September, you established your Human Rights Policy and took the important step of identifying "respect for human rights" as one of your materiality issues. While I commend these efforts, it is important to recognize that this is merely the "first step." The United Nations Guiding Principles on Business and Human Rights outline the following three expectations for companies.
In particular, due diligence is a very important initiative and disclosure item, and as stated in the report, I would like you to address it in a planned manner and disclose the systems and results. Furthermore, as a responsibility of companies that respect human rights, it is essential to address corrective actions, and the systems for this must also be clarified.
The second point is the disclosure of the relationship between investment in human capital and management strategies, finances, etc. In August 2022, the government published the "Guidelines for Visualizing Human Capital." I believe this is because human capital is a core element for the sustainability of society and companies, and many investors are now increasingly calling for explanations regarding human capital. One point of interest in these guidelines is the idea of "establishing a relationship between your management strategy and investment in human capital and personnel strategies (integrated story)" as one method of visualization. In this report, you also state that "it is necessary to strengthen the link between our management plan and personnel strategy." However, the analyses of those links and the results have not been disclosed. While these analyses are not easy, I would like you to take on the challenge and disclose them.
Finally, I would like to mention the disclosure of negative information. I have heard that one of the points for editing this year's report is "accident responses." However, while there are mentions of this in several places including the top message, I feel that the impression it leaves on readers is rather weak considering the seriousness of the accidents. I believe that, following the top message, you should allocate pages in the main text to summarize the facts of the two incidents, the causes, and the measures to prevent recurrence. Furthermore, from next year's report onward, I would like you to provide verification reports on the effectiveness of the measures to prevent recurrence.
Inclusion in SRI (socially responsible investment) and ESG indices and ratings
As of August 31, 2026 The Denka Group operates environmental and quality management systems to promote continuous improvement. ...
The following two members of the Infrastructure Solutions Department have received the "Prestressed Concrete Institute Award (Paper Award)": - KENTARO SUHIRA, Group Leader, Infrastructure Solutions Department - HIROTO KODATE, Assistant Manager, Omi Plant
The following is an announcement regarding the receipt of awards by the Department Manager of the Infrastructure Solutions Research Department, Minoru Morioka. Morioka has received two awards: the "JSCE Yoshida Award (Paper)" and the "Japan Concrete Institute Award (Merit)". ...
At the 2019 Electrical Engineering Society Conference held in September 2019 (Iwate University), Shuhei Aoyama of the Denka Innovation Center Advanced Technology Research Institute received the...
Senior Technical Advisor (STA) Masahiro Ibukiyama of the New Business Development Department received the Minister of Economy, Trade and Industry Award at the 2023 Industrial Standardization Project Awards hosted by the Ministry of Economy, Trade and Industry (METI). The award ceremony was held on October 8, 2023.
The uruoi global website operated by Denka Corporation (New York, USA) has been recognized with the "Honorable Mention" award at the "awwwards", a global web design award.
Denka Company Limited consolidated subsidiary Denka Seiken Co., Ltd. Reagent Department Manager Yasuki Ito says, "The automatic analyzer for measurement of small, dense LDL-C (Note 1) ...
At the 39th Research Meeting of the Society for Micro and Nano Systems (CHEMINAS39) held at Kanazawa University on May 27-28, Denka INOV...
An article published in the March 2019 issue of the Royal Society of Chemistry's academic journal "Analyst" introduced the results of a collaborative study conducted with the University of Tokyo on the use of a chemical substance that can be used to detect the presence of microplastics in the environment.
The resolution of corporate value creation stories is improved. Descriptions of materiality and roadmaps...
A report showing the full picture of the Company-wide reform campaign aimed at returning to a growth trajectory. By spreading integrated thinking, we...
This year's report that meets expectations "Words, systems, and participation for the future" in a concrete way...
Director, NPO Circulating Society Research InstituteTAMIO YAMAGUCHI
Director, NPO Circulating Society Research InstituteTAMIO YAMAGUCHI
Director, NPO Circulating Society Research InstituteTAMIO YAMAGUCHI
Director, NPO Circulating Society Research InstituteTAMIO YAMAGUCHI