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Materiality and SDGs

"Transforming our world: the 2030 Agenda for Sustainable Development" adopted by the United Nations in September 2015 and “the sustainable development goals (SDGs)” targets correlate with many aspects of the Mitsubishi Chemical Holdings Corporation (MCHC) Group's KAITEKI vision and its efforts to realize a sustainable society. We have arranged our materiality issues, i.e. the management issues we see as important, in terms of their relationship with the 17 U.N. Sustainable Development Goals with 169 associated targets to be achieved by 2030. To maximize its contributions to both solutions, the MCHC Group will continue to promote and advance the Management of Sustainability (MOS) approach.

Materiality Issues and SDGs Related to the Global Environment

Related SDGs
Ensure access to affordable, reliable, sustainable and modern energy for all	Ensure sustainable consumption and production patterns	Take urgent action to combat climate change and its impacts

Materiality	Recognized Opportunities and Risks	MCHC Group Management
Energy and resources	Transformation and diversification of resources and energy supply sources Practical application of renewable energy and accelerated technological development Depletion of rare metals and other natural resources	Address the depletion of natural resources and energy-saving by switching to renewable raw materials, curbing the use of rare metals, reducing raw fuel consumption and promoting 3R and zero-emission.
Climate change	Increasing risk of extreme weather events and natural disasters associated with climate change Formation of international consensus and effectiveness of measures to prevent global warming Expand products and businesses to adapt to and mitigate climate change	Reduce GHG emissions, promote LCA and utilize low-carbon resources and energy, while striving to create and expand business opportunities that mitigate or adapt to climate change.
Water	Expanding water stress due to higher demand, climate change and other factors Increasing health risk due to shortages of hygienic water Expanding businesses such as water purification and recycling	Work to use water resources efficiently and clean wastewater while contributing in finding solutions to water resource issues by providing safe and clean water through our products and services.
Biodiversity	Stronger demands for biodiversity preservation initiatives across the entire value chain Expand products and services related to biodiversity preservation Tighter operational regulations for protecting native species and maintaining habitats	Reduce the use of ecosystem services, protect satoyama landscapes and forests, conduct clean-up activities, reduce the use of hazardous substances (mitigate climate change), promote measures to save endangered species and deal with non-native species, and expand provision of products that contribute to biodiversity preservation.

Key Issues Related to Social Systems

Related SDGs
Ensure healthy lives and promote well-being for all at all ages	Build resilient infrastructure, promote sustainable industrialization and foster innovation

Materiality	Recognized Opportunities and Risks	MCHC Group Management
Health and wellness	Increasing incidence rate for adult-onset diseases and rising mortality Increasing risk of failing health insurance systems Expanding health information service market (shift from treatment to prevention)	Promote the use of health information and disease prevention by improving lifestyle habits through self-medication and expanding healthcare products and services, and contribute to the advancement of people’s health.
Medical care	Manifestation of unmet medical needs Advancing digitization of data on medical treatment and health information through ICT Growing forays into the medical and healthcare fields from other industries	Improve patient QOL and help people’s lives and health by developing pharmaceuticals that respond to unmet medical needs and contributing to the sophistication of medical care through regenerative medicine and remote medicine technologies.
Food and agriculture	Population growth and increasing urban lifestyles Increasing shift to factory-produced foods	Contribute solutions to food and agricultural issues by preserving food resources, resolving maldistribution, and providing products and services that improve agricultural productivity.
Fulfilled living	Addressing the development of emerging economies, changes in lifestyles associated with growing urban consumption, and expanding demand for improving fulfillment in daily life Expanding products and services catering to demand from elderly people Rapidly diversifying products and services reflecting market characteristics and needs	Expand the supply of new materials and products related to improving living environments, pursue convenience and comfort, provide prosperity, happiness and IoT-related products. (Add value to food, apparel and housing, and realize new lifestyles and prosperity)
Smart society	Emergence of smart home electric appliances, automobiles and other products, accelerated development of automated driving and eco-friendly technologies Evolution and growing use of virtual reality, virtual communication, and prediction technologies Expansion of markets for data acquisition (sensors), transmission and control devices	Expand the development and supply of smart products (such as smartphones, tablet devices, home information appliances, and 3D printers), device-related products such as sensors, and materials. Promote the practical use of products and services related to social systems such as ICT healthcare and gas supply systems.
Social infrastructure	Progress on the development of infrastructure to address disaster readiness/mitigation and adapt to climate change, along with the expansion of related markets Accelerated development of technologies related to the widespread use of renewable energy and enhanced response measures Accelerated development of high precision and large capacity traffic information communication networks	Expand the supply of products and services related to the social economic infrastructure and social production infrastructure (schools, hospitals, housing, roads/ports and harbors, bridges, industrial sites, transportation methods, water supply and wastewater treatment, electricity, gas and telephone, etc.) Contribute to the development of an environment to address disaster readiness/mitigation and the realization of a renewable energy society

Materiality Issues and SDGs Related to the Company and Its Organizational Structure

Related SDGs
Ensure healthy lives and promote well-being for all at all ages	Promote inclusive and sustainable economic growth, employment and decent work for all	Build resilient infrastructure, promote sustainable industrialization and foster innovation
Ensure sustainable consumption and production patterns	Revitalize the global partnership for sustainable development

Materiality	Recognized Opportunities and Risks	MCHC Group Management
Product responsibility	Growing interest in the quality, safety and environmental performance of products and services Reducing the use of chemicals and harmful substances, and demands for information disclosure	To ensure that customers can use products and services in relief, pursue initiatives to ensure the quality and safety of products throughout lifecycle and minimize the adverse effect on the environment.
Human development and training	Developing the capabilities of human resources based on medium-term human resource development policies Enhancing the return on investment from human resource development	Seek to offer equal opportunity in hiring, placement, advancement and skill development, while pursuing the acquiring and development of human resources based on a medium- to- long-term perspective.
Occupational health and safety	Ensure the health and safety of employees, while improving productivity and ensuring business continuity by preventing accidents	Implement safety management in accordance with national and regional laws and regulations and develop safe workplace environments while maintaining and advancing the physical and mental health of employees.
Human rights awareness	Rising concerns over human rights violations through corporate activities Emerging risks to human rights in the supply chain	Respect the dignity and rights of all people in corporate activities and require that business partners refrain from violating human rights or engaging in inappropriate discrimination.
Information security and privacy	Digitizing all manner of information including corporate information and personal information Increasing information security risks due to the widespread adoption of IT/IoT	Recognize the importance and responsibilities associated with protecting information assets and manage information adequately to prevent the confidential information of customers, business partners, MCHC or other parties from being leaked.
Diversity and inclusion	Retain and cultivate talented employees based on a human resource strategy that respects diversity	Incorporate a diverse range of human resources and views without regard to their nationality, age or belief, and promote diversity and inclusion through our corporate activities in enhancing corporate value.
Contribution to communities	Building relationships of trust by actively engaging in exchanges with and contributing to communities in areas where we conduct business	Broadly contribute to society through business activities while deepening understanding of various communities and continually responding to their requests and expectations.
Initiative and leadership	Accelerated responses and solutions to environmental and social issues through proactive participation in initiatives Promotion of the identification of social issues and requests for government and legislative action	Proactively participate in industry bodies and related organizations, along with getting involved in and leading the guideline- and rule-making process. Demonstrate leadership in the activities of external bodies. Strengthen partnerships with NGOs and NPOs.
Stakeholder engagement	Promotion of the proactive disclosure of corporate information and mutual understanding with stakeholders Acceleration of responses and solutions to environmental and social issues Progress on collaboration to share and solve global sustainability issues including the Paris Agreement and SDGs. Greater use and proliferation of corporate assessments focused on an ESG perspective	Enhance the disclosure of information in both qualitative and quantitative terms (Refine the website and the integrated report) and upgrade and expand opportunities for dialogue (hold business presentations, IR meetings, presentations for local residents and other meetings; promote dialogue with ratings agencies; proactively implement collaboration programs and other events in the supply chain, etc.)
Information and communication technology	Coming of the age when more and more companies are introducing ICT and IoT The development and use of AI and autonomous robots are being encouraged Change of employees’ work styles	Boost productivity by establishing specialized departments for purposes such as developing information gathering and shared infrastructure for corporate activities and strengthening the IT management environment. Push ahead with ICT-driven workstyle reforms and health and productivity management.
CSR in supply chain	Growing impact of resource, energy, procurement and logistics risks on the financial aspects of business continuity. Acceleration of responses and solutions to environmental and social issues through the sharing of standards and collaboration	Promote dialogue and collaboration in supply chains. Step up measures such as green procurement, the sharing of standards, the switch to resources with a low environmental impact, the reduction in procurement risk, and efforts to strengthen the modal shift in transportation and logistics.