Message from the CSO

Headshot of Chief Sustainability Officer

Determined to meet the social demands,
realize our sustainable growth, and
achieve a recycling-oriented society

Yoshihiro Ikegawa

Representative Managing Corporate Executive Officer,
Division Manager, Corporate Strategy Division
Chief Sustainability Officer

Achieving growth by turning social issues into business opportunities

As the risks related to environmental and social issues become more apparent, businesses are expected to actively contribute toward achieving a sustainable society. Based on this recognition, the Mitsubishi Chemical Holdings (MCHC) Group formulated our medium- to long-term basic management strategy KAITEKI Vision 30 (KV30). This involves us visualizing what the Group should look like in 2030 by backcasting from our vision of an ideal society in 2050. Accordingly, we strive to solve social issues for a sustainable future through leadership as a global solutions provider.

The impacts of COVID-19 will bring significant changes to the way people think and behave. At the same time, social value will increase in its importance. We will turn these social issues into business opportunities. I believe it is our Group’s mission to continue to provide new solutions while transforming to a value-adding business model that can respond to social needs. With this approach, the entire Group will tirelessly work to achieve a society where many of the social issues we face today will have been resolved by 2050.

Thorough execution of sustainability management

Despite the current uncertainty, our medium- to long-term sustainability strategies to provide comprehensive solutions to environmental challenges, such as climate change and resource/energy depletion, remain unchanged and we will continue to work on these issues. KV30 sets forth five measures to build foundations for achieving environmental impact neutrality. These include evolving life cycle analysis (LCA) tools, reducing our environmental impact, promoting a circular economy, feasibility studies of KAITEKI factories, and building a sustainability management system. We aim to progressively strengthen our management foundation that supports business model reforms by implementing specific procedures in the next medium-term management plan and ensuring a thorough execution of sustainability management.

Achieving an optimized recycling-oriented society

Since the launch of the Circular Economy Promotion Committee in May 2019, we have held a series of discussions regarding our policies and target resources to achieve a circular economy. We have also discussed the development of infrastructures for leveraging LCAs. The results of these discussions are reflected in KV30.
With respect to climate change, we will strive to reduce GHG emissions by 26% in Japan by 2030, compared with 2013 levels, and our steps toward achieving overall GHG reduction and its effective utilization across the value chain. We are addressing the issue of plastic waste by providing products and technologies with our bio-based polymers business, as well as developing materials and technologies suitable for recycling. We have also worked with the Alliance to End Plastic Waste to develop technologies and solutions through the value chain and promote projects and educational programs to reduce waste. With these initiatives, we are making steady progress in establishing a social system that can enable optimal resource circulation.

Major initiatives in which the MCHC Group participates

Joined in Initiative related to circular economy
September 2018 Japan Initiative for Marine Environment
(Founding member)
January 2019 Japan Clean Ocean Material Alliance
(Chair of Technology WG)
January 2019 Alliance to End Plastic Waste
(Founding member/Executive Committee member)
March 2019 Ellen MacArthur Foundation’s Circular Economy 100
(The first Japanese chemical company to join the CE100)
August 2019 Carbon Recycling Fund Institute (Chairperson)
December 2019 Value Balancing Alliance (the first Japanese company to join)

Developing a new method to measure social value

As ESG factors are becoming increasingly important criteria for evaluating the medium- to long-term corporate value, we became the first Japanese company to join the Value Balancing Alliance (VBA) in December 2019. This non-profit organization aims to change the way to measure corporate performance, and its impact on the environment, society and people. Through the development of a new impact measurement standard at the VBA, we aim to bring our LCA tools to an advanced level. This will help the Group’s overall economic, environmental, and social impact to be measured and used to ensure an improved operation.

At the MCHC Group, we introduced the Management of Sustainability (MOS) Indices in 2011 in an effort to clearly monitor our progress in sustainability. With this in mind, we will reorganize MOS Indices based on our material issues in the next medium-term management plan, and will use these indices as criteria to measure progress on our business portfolio transformation. We will also disclose appropriate information to our valued stakeholders, which will enhance the transparency of our operations.

Strengthening operations to drive new growth

We have provided workshops for general managers in order to enhance efforts to promote our KAITEKI approach. With these workshops as a starting point, we promoted the adoption of KAITEKI in each workplace, fostering a culture to address social challenges through business activities. In fiscal 2020, in order to promote KV30, we intend on expanding these workshops to younger employees leading the next generation. Each employee must take ownership of social issues and think how to address them through their business activities and actions. This can increase the Group’s resilience and provide a strong driving force to realize KV30.

With the medium-term management plan APTSIS 20 in its final year, we are accelerating our activities regarding sustainability to consolidate our foundations for new growth. While the impacts of the COVID-19 pandemic are predicted to transform people’s values and social structures in the coming years, we will continue to work toward a long-term increase of our corporate value by recognizing that these changes provide plenty of business opportunities. We will also promote a resilient business strategy focused on sustainability.

The MCHC Group’s structure for promoting KAITEKI

The MCHC Group’s structure for promoting KAITEKI: The structure consists of “Mitsubishi Chemical Holdings Board of Directors,” “Corporate Executive Officers Committee,” “KAITEKI Promotion Committee,” “Circular Economy Promotion Committee,” and “Each division (each office)/operating company.” Enhancement of corporate value from a financial perspective and a non-financial perspective are put forward by “Each division (each office)/operating company” to “Corporate Executive Officers Committee” and “KAITEKI Promotion Committee,” respectively.
As necessary, “KAITEKI Promotion Committee” proposes priority matters for deliberation to “Corporate Executive Officers Committee,” and makes reports in response to consultation requests by the “Corporate Executive Officer, President and CEO.” Agendas of “Corporate Executive Officers Committee” are reported by “Corporate Executive Officer, President and CEO” to “Board of Directors.”

FY2019 KAITEKI Promotion Committee discussions

July 2019
  • Progress of MOS activities
  • The circular economy promotion: Organizational structure and mission, etc.
  • KV30 targets to reduce GHG emissions
  • TCFD
  • Activities for KAITEKI Health and Productivity Management
  • Progress of MOT activities
  • Progress of MOS activities
  • Discussion on the circulation of carbon, water, and plastic
  • KV30 targets to reduce GHG emissions
  • LCA-related activities: Joining the VBA
  • Addressing the issue of ocean plastic
  • Activities for KAITEKI Health and Productivity Management

Yoshihiro Ikegawa
Managing Corporate Executive Officer
Division Manager, Corporate Strategy Division
Chief Sustainability Officer
Oct. 2020