CSR Report

2019

Sekisui Plastics Group —Expanding Our Dreams for People and the EarthManagement
Philosophy

We, Sekisui Plastics Group, practice “Zen-in Keiei”
based on respect and mutual trust.
We are always innovating in our aim of “new happiness.”

Code of
Conduct

1. Unite individual efforts to make a strong power.
2. Grow and develop together with customers by creating top quality and service.
3. Contribute to a better environment and an enriched society in perfectharmony among people, nature, and technology.
4. Make a honest, generous and fresh workplace.
5. Address each and every challenge in creation and innovation to achieve
our goals.

Management Policies
Related to theEnvironment,
Safety, and Quality

1. Provide high-quality, safe products and services that meet the expectations of each customer.
2. In overall business activities, strive to prevent accidents and disasters
and ensure the health and safety of all the people including employees,
business partners, and local residents.
3. Consider the environment and safety in every process from product development to use and disposal and strive to conserve the environment.
4. Consider the resource and energy savings in product development andproduction, and promote the recycling of used products.
5. Engage in responsible care activities to improve environment, safety,
and quality management and gain further confidence from society.
6. Comply with domestic and overseas laws, regulations and standards established by local governments and industries, and engage in business activities.

CONTENTSManagement Philosophy, Code of Conduct, and Management
Policies Related to the Environment, Safety, and Quality......1

Environmental Contribution through Business Activities .....15

Sekisui Plastics Group’s 100th Year Vision .............................2

Sekisui Plastics Group ESG

Basis of CSR Activity ............................................................21

CSR Declaration .....................................................................3

The Environment ..............................................................25

Mid-Term Management Plan..................................................4

Society ..............................................................................29

A Message from the President...............................................5

Governance ......................................................................37

CSR that Supports Corporate Value ......................................7

Environmental Performance Data ........................................41

Sekisui Plastics Group, Expanding Our Dreams for
People and the Earth .............................................................9

Consolidated Financial and Non-financial Data ...................43

Sekisui Plastics History and Environmental Contribution.....11

Company Profile ...................................................................46

1 CSR REPORT 2019

Our Group Network .............................................................45

Sekisui Plastics Group’s 100th Year Vision
Further growth and development
toward the 100th anniversary
in FY2059
Sekisui Plastics Group aspires to be“a plastics solution company trusted bycustomers around the world,”
by practicing the group-wide CSR and
Zen-in Keiei on the basis of the founding
Management Philosophy

spirit and our new management philosophy.

Founding Spirit

Founding Spirit

New Management Philosophy

For happiness of people working for

We, Sekisui Plastics Group, practice “Zen-in Keiei ”
based on mutual respect and trust. We are always
innovating in our aim of “new happiness.”the company

Corporate Goal for Our 100th Year Anniversary (in FY2059)
Situation Goal

Scale Goal

Plastics Solution Company
Trusted by Customers around the World

Consolidated Sales¥

500billion or more

Corporate Domain
Sekisui Plastics Group Solutions

Materials
Plastics based

Technologies
Technology thatcreates added
value

Sekisui Plastics Group Contributes to:
Industry

Contributing to the growth anddevelopment of the industry by proposing
business solutions to client companies

LifestyleTransformation

Contributing to the transformation ofpeople’s lifestyles

GlobalEnvironment

Simultaneously aiming to improve theglobal environment

Systems
By systemizing,know-how andprovidinginformation

CSR REPORT 20192

CSR Declaration

Local
Communities

Sekisui Plastics Group,
Expanding Our Dreams
for People and the EarthGroup
Members

Business
Partners

SocialContribution
Customers

Shareholders

GlobalEnvironment

Practice ofManagement
Philosophy& Business
Activities

We, Sekisui Plastics Group, carry out social
responsibility to stakeholders including
the global environment by practicing ourmanagement philosophy and contributeto the sustainable development of the

Essence of CSR Activities
Manufacture, considering the environment, safety and quality
Sincere management activities emphasizing compliance
Practices of Zen-in Keiei

global society.

Stakeholder

Responsibility of Sekisui Plastics Group

Customers

The Company not only supplies safe/reliable products but also bring comfort and convenienceto the lives of people by always creating new functions/value and proposing materials/services as
solutions for customers.

Group Members

The Company places emphasis on mutual respect and trust, and pursues the happiness of people
working for the company.
Consequently, we will improve fairness to skill development and rating, and make efforts to createa healthy/safe work environment, and a good balance between work and family.

Local Communities

The Company believes being a safe workplace is the most important to communities.
In addition, as a member of local communities, we aim to be a company trusted and loved by thewhole community.

Shareholders

The Company meets expectations from shareholders with returns by improving its corporate value.
Furthermore, we focus on the active disclosure of our management information and dialogue withshareholders.

Business Partners

The Company builds trust in relationships with business partners through fair, honest businesspractices with sincerity as our motto.
Also, we aim at co-existence and co-prosperity as a better partner for the partners.

Global Environment

The Company actively endeavors to improve environment to protect our precious earth.
In particular, we contribute to the low-carbon society and develop the recycling-based society withfoam plastics in the community and lowering carbon levels centering on foam plastics which are
eco materials.

3 CSR REPORT 2019

Mid-Term Plan

Make Innovations Stage-II (FY2019—FY2021)
Promote business portfolio transformation and execution of strategies to strengthen earnings structure
while solidifying position as leading environmental company• Promote to get contribution from M&A Activities in MI60
• Work to bring about actual results early with MI60 development projects• Promote further Business Portfolio Transformation• Strengthen group management foundation and implement efforts that further emphasize the environment

Priority Policy
1. Evolution ofbusiness portfolio
Accelerate growth withthree business domains andtwo key products
Automobile structural material field
High functional food container field
Medical/Health Care field
PIOCELANTECHPOLYMER

Mid-Term Plan

2. Strengthening groupmanagement foundation

Make
Innovations
Stage-II

Improvement of organizational
capabilities
Improvement of productivity
Improvement of capabilities ofhuman resources

Culture Vision:
Both the people and company growbased on management by all members’
participation (Zen-in Keiei)

3. Contribution tosustainable society
Evolution of existing products
Development of new materials
Business activities that do notplace a burden on society

Evolution of Existing Products
Promoting environmental contributions
through development and provisionof products that reduce weight andimprove thermal insulation

Practical Application of
New Materials

Business Activities That Do Not
Place a Burden on Society

Practical application of low
environmental impact materials made of
biodegradable or bio-based plastics

Reducing environmental impact
through production process,and by recycling activities

Become leading environmental company
CSR REPORT 20194

A Message from the President

The Sekisui Plastics Group established its Sekisui
Plastics Group’s 100th Year Vision in 2009 to celebrate

the Sekisui Plastics Group.
We are launching Make Innovations StageII, our new

the 50th anniversary of the Company’s founding andthree-year Mid-term Management Plan, in FY2019.

to provide a roadmap for further development in the

In the previous plan, we established a foundation by

next 50 years leading up to its 100th anniversary. Thisfocusing on “business portfolio transformation” andvision is shared among all members of the Group, and“reform of the earnings structure.” In the new Mid-term

includes the CSR Declaration, “Sekisui Plastics Group,Plan, we will continue to evolve and strengthen those

Expanding Our Dreams for People and the Earth.”reforms as well as striving for becoming a leading

With this as a foundation, we believe the most im-environmental company. Specific themes in the new

portant thing for us to do is fulfill our responsibilities asplan include addressing “strengthening the Group’s

a company and contribute to the sustainable develop-

management foundation, “ and “contributing to a sus-

ment of the global society by addressing social issues

tainable society” by “Zen-in-keiei.”

through our business activities.

On the other hand, our three key themes in ourOn the business front, FY2018 was the final year in

CSR activities are, “manufacture, considering the en-

our Make Innovations 60 Mid-term Management Plan.

vironment, safety, and quality,” “sincere management

During the term of this Plan, we were able to develop

activities emphasizing compliance,” and “practices of

new customers and markets in the industrial and

Zen-in Keiei”. After clarifying our responsibilities to ourlifestyle fields, with a focus in particular on strategic

stakeholders, which include our shareholders, groupmerchandise that contributes to the resolution of so-

employees, customers, and the global environment incial issues. We also acquired shares of Proseat Group,

general, we are working to fulfill our roles.

an automotive components manufacturer operating

The problem of ocean plastic waste has become an

mainly in Europe, and welcomed them to a member ofinternational concern over the past few years, and the

5 CSR REPORT 2019

Realizing sustainable development
and contributing to the resolutionof social issues through ourbusiness activities

Sekisui Plastics Group will continue to work toward a

I believe we are making steady progress in this area,

solution in cooperation with the Japan Plastics Industry

with the number of female department heads in-Federation. Our mainstay foam plastic products help

creasing in FY2019 and the hiring ratio for new female

conserve resources by reducing the amount of raw ma-

graduates already surpassing our goal of over 20%.

terials used. Moreover, as a result of our industrywide

Moving forward, our goal is to ensure respect for diver-efforts to promote the recycling of EPS (expandablesity and further promote the careers of women withinpolystyrene) foam over the past 48 years, about 90% of

the Company.

all EPS (expandable polystyrene) foam is now recycled.

We feel that all of these initiatives are based on our

We are also focused on strengthening our efforts tofounding spirit of “for the happiness of people working

put biodegradable plastics into practical use in orderfor the Company,” though we also understand thatto further contribute to a sustainable society.

we are still halfway to achieving our corporate goals.

With the launch of the Environmental and Quality

As such, we will continue promoting these activities

Management Center in April, the Sekisui Plastics Group

as a single, unified Group. We once again thank all

is showing its commitment to addressing environmentof our stakeholders for their continued support andand quality-related issues throughout the Group, clari-encouragement.

fying its efforts related to SDGs, and further bolstering
corporate value.

September 2019

As part of our focus on workstyle reforms and humanresource development, we have formulated and aresystematically promoting a three-year action plan

President and Chief Executive Officer

aimed at support for raising next generation children
and the active participation of women in the Company.

CSR REPORT 20196

CSR that Supports Corporate Value
In addition to meeting the expectations of all our stakeholders, including shareholders, Group employees, and customers, the Sekisui Plastics Group remains committed to developing a variety of CSR and business activities that put
our management philosophy into practice, so that we can fulfill our responsibility to the international community.

Key CSR Issues and Targets
With the goal of contributing to the creation of a sustainable society, the Sekisui Plastics Group organizes its CSR issues into thefive key areas of “environment,” “safety, security and health,” “quality,” “community,” and “governance.” We are committed
to continually developing policies and implementing specific initiatives in each of these areas.
Focus Area

Key Points
Contributing throughour business to thepreservation andimprovement of the global
environment

E

1.

(Environ- Environment
ment)

PolicyBusiness activities based on
the SKG-5R* concept
Evolving existing products
Creating practical uses from newmaterials
Engaging in activities that do not
put a burden on societyManagement

Contributing to the
Addressing international issues
environment in cooperation
with our stakeholders
Preserving biodiversity

2.
Safety, security,and healthS(Social)G(Governance)

Specific Initiatives (Direction, examples)
Providing sustainable products, goods and services
Expanding application products and improving the functionality of
products that reduce weight and enhance thermal insulation
Developing products making use of biodegradable and biomass
plastics
Promoting recycling and the saving of energy in production, administration, and management activities
Improving the environmental management system and complying withall laws and regulations
Compiling and releasing information in cooperation with industry andgovernment
Participating in Green Wave and Satoyama Conservation Activities

Providing safe businessactivities and work
environment

Achieving zero accidents

Strengthening efforts to eliminate accidents and realize zero occupational accidents

Contributing to safe cities
and healthy lives

Contributing to the prevention andmitigation of disasters, and the advancement of green energy

Developing products that contribute to the advancement of green
energy and the prevention and mitigation of disasters

Promoting improved health

Developing gels for use in medical products, cosmetics, and sportsrelated products

3.
Quality

Providing products andservices of the highest
qualityComplying with product characteristics Maintaining and improving product quality
Reflecting customer feedback

Enacting measures to incorporate customer feedback into management

Concluding disaster prevention agreements, etc.

Cooperating with local governments

4.
Community

Achieving co-existence
and mutual prosperity withlocal communities andemployees

Promoting local volunteer activities

Participating in community clean-up activities, disaster relief operations
Promoting flex-time, work-at-home, telecommuting for employees
Promoting diversity and the development of human resources

5.
Governance

Creating a company
where transactions
are conducted withconfidence

Promoting workstyle reforms anddiversity
Strengthening the global governance system
Sincere efforts to comply with the
Corporate Governance CodeStrengthening compliance and risk
management measures

Strengthening the global management system
Implementing steady management, including advisory committees
Improving quality in management systems and methods*SKG-5R: Reduce, Reuse, Recycle, Replace, Re-create

Contributing to the Realization of a Sustainable Society
The “2030 Agenda for Sustainable Development” establishing international sustainable development targets for theyears between 2016 and 2030 was adopted at a UN Summit
in 2015. The Agenda contains 17 Sustainable Development
Goals (SDGs) that are applied universally to all countries,
including developed countries, and focus on confronting
climate change, ensuring sustainable consumption and production, and resolving poverty and inequalities. With this international focus in mind, the Sekisui Plastics Group is committed to clarifying our priority issues.

7 CSR REPORT 2019

Contributing to the achievement of the SDGs through our business activities
The Sustainable Development Goals (SDGs) aim to addressa wide range of issues which consist of 17 universal goals
and 169 individual targets, and we note that there is quite
a bit of overlap in these goals and targets with our efforts

to contribute to society through our business activities. In
the following section we will outline the CSR and businessactivities of the Sekisui Plastics Group that contribute to theachievement of each SDG.

Sekisui Plastics Group Initiatives
From the founding of the Company to the present day, we
have worked consistently to create resource-saving materials while simultaneously focusing on the development of anenvironmentally friendly business that promotes recycling
and the conservation of energy.

P11-14

Foamed polystyrene sheets, used in a variety of containers
taking advantage of its features to their light weight, thermal insulation, and strength, not only contribute to a richer
diet for users but are manufactured with recycling in mind.

P21-22

In addition to reducing the environmental impact fromproduction-related activities, we are contributing to an
improved co-existence with nature through environmental
conservation activities both in Japan and overseas.

P25-28In addition to advancing awareness of the problem ofocean plastic waste and promoting reclamation activities,
the Sekisui Plastics Group is creating an environment where
employees readily work together on an individual basis.

P26

Individual offices conduct clean-up activities and Satoyama Conservation activities in nearby locations, with each
employee doing what he or she can to preserve theenvironment.

P36

2-1

Contributing to society
through our businessactivities

With the goal of contributing to a richer life for all, we
provide functionality in matching with applications in a wide
variety of products while simultaneously contributing to theenvironment.

P15-202-2

Human rights and labor
practices

Based on the Sekisui Plastics Group founding spirit of “Forhappiness of people working for the company”, we arefocused on creating an environment in which employees
can work in good health, both mentally and physically.

P29-32

We take our responsibilities as a manufacturer seriously andaccordingly continually strive to manufacture and incorporate new value into our products by taking the views of ourcustomers into account.

P33

4-1 Kyoto Manufacturing

The Sekisui Plastics Group is also working to explain in aneasy-to-understand manner how EPS (expandable polystyrene) foam is used in a variety of ways in people’s lives, aswell as its functions and how it is created.

P34

4-2 Recycle

We are contributing to the promotion of recycling in local
communities by expanding reclamation centers for used
EPS (expandable polystyrene) foam.

P34

In addition to the published activities with the concept of
local community and individual employee-based, the Sekisui
Plastics Group is also actively engaged in efforts such as the
Table for Two program and Eco-cap collection activities.

P35-36

1-1

The advancement
and environmental
contributions of the
Sekisui Plastics Group
Manufacturingwith a focus on the

1-2 environment, safety,
and product quality

E(Environ- 1-3 Environment
ment)
1-4

TOPICS: Signatory to
the declaration aimed atsolving the problem ofocean plastic waste
Social contribution

1-5 activities of the Sekisui
Plastics Group

3-1 Consumer issues

S(Social)Cooperation with
Workshop

4-3Social contribution
activities of the Sekisui
Plastics GroupThe recycling of EPS (expandable polystyrene) foam, firstlaunched 48 years ago, has evolved into an industrywide effort, and we remain focused on creating an environment inemphasis on compliancewhich small to medium-sized businesses can easily recycle.
Sincere management

5-1 activities with an

We aim to promote growth in people and the Company
by putting our corporate philosophy of Zen-in Keiei into
practice under a corporate culture based on fairness.

P24, 39

5-3 governance

Based on our management philosophy, we are committed tothe prompt disclosure of pertinent information and ensuringtransparency, validity, and compliance in management.

P37-38

5-4 Fair business practices

In line with our management philosophy and the basic
policies for each business activity, we are committed to observing compliance and creating an open and fair businessenvironment.

P39-40Putting Zen-in Keiei intoG
(Governance)

P23

5-2 practice

Organization

CSR REPORT 20198

For People and the Earth

Sekisui Plastics Group—Expanding
The Sekisui Plastics Group has been contributing to improvements in the global environment since its
inception by promoting, largely through our proprietary foam technologies, the effective use and recyclingof limited oil and other natural resources. We will continue to promote the development of products that areenvironmentally friendly during their manufacture and use, and remain committed to becoming a leading

Environmentally friendly
foaming technology
Our foam products inflate plastics by dozens oftimes, so most of the product volume is air.

p
o
m
l
e
ent
v
e
,M
D
an

environmental company.

e
r
u
t
c
a
f
u
The Envir
Contri

Goals of the Sekisui

New
Materials

Raw material beads
prior to foaming

After foaming

Plastic is only2%of volume

We will continue to contribute to
the environment by using
environmentally friendly materials,
including biodegradables andbiomass plastics.

Air accounts for
98% of volume

Resource Saving* In the case an expansion ratio is 50 times

Re
9 CSR REPORT 2019

Our Dreams

The energy saving effect

ge
sa
U

onmental
bution
Plastics Group
Contributing
throughtechnology

Foam products are largely composed of air, making themnot only lightweight, but excellent in terms of thermal
insulation (preserving heat and coolness).

Thermalinsulation

Light weight

Preserving freshness
by controlling
temperature

Improving fuelefficiency byusing lighter
components

Reducesfood loss

Reduces
CO2 emissions

We will continue to contribute to theenvironment by making products
lighter and better thermal insulated.

Monozukuri( create things)(tohi)
We will contribute to preservationnof the environment by
manufacturing and recycling
in an environmentallyfriendly manner.

e
l
c
y
c

A high recycling ratio
EPS (expandable polystyrene) foam is easy to sortand recycle, and produces only carbon dioxide
and water vapor when burned.
EPS (expandable polystyrene) foam
recycling rate (2018)

90.8%

Material recycling 53%+

Thermal recycling 38%

Data source: JEPSACSR REPORT 201910

Sekisui Plastics History and Environmental—Development and Launch of Environment - contributing Products—
Since its founding in 1959 and continuing to the present, Sekisui Plastics has consistently strived todevelop eco materials, and in doing so, has advanced its business activities that take the environment into
consideration by tackling such issues as energy saving and recycling.
In recent years, attention has been entirely focused on recycling after disposal, within the lifecycle of a product.
However, we believe in the importance of resource and energy savings at the product’s manufacturing andusage stages as well. As a result pursuing lightweight by having higher the expansion ratio, our products havebeen the adoption in a variety of settings, such as packaging materials for shipping and alternatives to metal
for automotive components. We will continue to consider recycling, but at the same time, we will promote thedevelopment of products that are also environmentally friendly while they are being manufactured and used.
This will open up Sekisui Plastics’ path to becoming a leading company for the environment.

1959

1962

1974

LaunchSuccessful Development

Foamed Polystyrene (PSP) Sheet Products

Foundation

Foundation of Sekisui Sponge
Industries Co. Ltd. (current: Sekisui
Plastics Co., Ltd.) on Oct.1
Launched EPS (expandable
polystyrene) beads business.

In the food packaging field,
these products contributeto reducing food waste byhelping to extend shelf life.

PIOCELAN™

Adopted for transport packaging
materials for motorbikes,
PIOCELAN™ contributes toenergy savings by reducing fuelconsumption during transportation.

1960

1971

1996

Commences Manufacture and Sales

Start of Recycling

LaunchLight weight of foamed plastics
contributes to resource-saving
petroleum-based raw materials.

Plastics waste collected and shipped
to our Tenri and Kanto Plants (current:
Sekisui Plastics Tenri Co., Ltd. andSekisui Plastics Kanto Co., Ltd.), thenrecycled into molded articles or building
materials. Since then, the Company has
continued our recycling with the belief
that it is a corporate responsibility.

EPS (expandable polystyrene) Beads

11 CSR REPORT 2019

EPS (expandable polystyrene) Beads

CELPET F

CELPET F contributes toresource recycling as it iscomposed primarily of waste
PET bottles in flake form.

Contribution 1
Environment - contributing Target
i ng

ag
e

D e v e l o p m e nt

/Ma

c tu rUs

Environmentally
FriendlyfanuEnergy Saving
EffectProduct
lifecycle

R e c y cl e

2000

2009

2019

Adopted as Automotive Component(Impact Absorption Parts)

Development

Development

PIOCELAN™

AQUAROAD

Given its lightweight properties byachieving metal alternative, PIOCELAN™
serves to improve fuel efficiency as an
automotive component, and contributes
to the reduction of CO2 emissions.

TECHPOLYMER EF

This product curbs rivers
overflowing damage in times
of torrential downpours.

These polymer
microparticles break
down in the naturalenvironment

2004

2015

Establishing a Closed Recycling System

Development

EPSREM™

Made with plastics recovered fromdiscarded appliances and other items
that are recycled into expanded
polystyrene, EPSREM™ tackles
environmental problems head on.

ELASTIL™ and ST-LAYER™

Products that contribute to lightweightin the healthcare field and that also
serve as a structural component.

CSR REPORT 201912

Sekisui Plastics History and Environmental—Leveraging the Company’s Technologies to Promote Recycling—
In 1971, a mere decade after the Company’s founding, Sekisui Plastics began proprietary recycling efforts with
foamed polystyrene products. We subsequently established the Japan EPS Recycling Association (current:
JEPSA - Japan Expanded Polystyrene Association) together with raw material and molding companies andpromote recycling activities of EPS foams in industry. In recent years we have seen the recycling rate of suchmaterial exceed a 90% level.
Moreover, we have developed EPSREM, a material that realizes a closed recycling system in which used
EPS has been recovered, crushed, and melted down into ingots. This material is then formed into beads
at the Company’s plants, with the cycle completed when it is once again made into EPS materials. We willcontinue working toward recycling initiatives that keep product lifecycles firmly in mind.

Recycling of Expanded Polystyrene (EPS)
Molding plantRaw material(polystyrene)

Appliance manufacturer
wholesale market

RetailerMarketMolding

Shipment

Plant
Raw material

Plant
Beads
development

Pulverization
IngotsMaterial

Construction / civil engineering, recycled expanded
polystyrene, stationery / synthetic wood

ChemicalsLiquefaction, gasification, etc

ThermalSolid fuel (RDF, RPF)

Municipality

MovingRecycling plant

Collection
Melting

Proprietary technologies

The primary responsibility is the processing of business waste that has ended its useful lifespan as
containers or cushioning materials at wholesale markets or super markets, department stores, dining establishments, retailers offering electronic appliances, and equipment manufactures’ plants,
and other sites.
Together with striving to develop the systems that make the recycling operations of emissions
generators and resource recyclers proceed smoothly, we make proactive efforts at recycling.

13 CSR REPORT 2019

Households

Our domains

Contribution 2

c tu ri ng

age

D e v e l o p m e nt

a

fa
nu

Us

/M

Environment - contributing Target

Product
lifecycle

R e c y cle

Recycling of Expanded Sheets (PSP)Raw material(polystyrene)

Plant

Molding plant

High Recycling
Rate

Recycling of Packaging Materials forTransporting Automobile Parts
Raw material(polystyrene)

Molding plant
Molding/deliveryPSP sheets Molding Cutting Completion Shipment
RecyclepelletParts transport
Recycling plant

Melting/ Pulverization
cutting
Separating (by color)

Supermarket
RecyclingStorecollection box
Collection

Recyclingplant

Collection

Automobile
manufacturer(plant)Asia, Europe, America

Households
Our domains

Our Proposal

Our domains

The components that go into one
The Law for Promotion ofSorted Collection and Recycling of Containers andPackaging was enacted in
1995 with the goal of curbing container and packaging waste, as well as to recycle these items as products.
Sekisui Plastics advocates
for the 3Rs, namely reduce,reuse and recycle, and also

automobile are said to numberin the several tens of thousands,
and more than a few are transported across national borders.
We go beyond just contributing
to raising the quality of shippingthese components, also leveraging our global network to support with the recycling of used
EPS at the destinations where
those components are delivered.

makes serious efforts to put
the 3Rs into practice.

CSR REPORT 201914

Environmental Contribution throughBusiness Activities
Sekisui Plastics Group aspires to be “a leading environmental company” that proposes group merchandise(products and systems), including eco-friendly products, as solutions in order to bring comfort andconvenience to the lives of people.

Human Life

Light weight, and featuring excellent thermal insulation and shock resistance,these products are used in items that have transformed the lifestyles of consumers and end users.

Food

ESLEN Sheet

Foamed polystyrene
food tray

Agricultural /Fishery

Housing / Civil
engineering

15 CSR REPORT 2019

Fish Box

Foamed polystyrene
fish box

ESLEN Block

Block for EPS construction method

ESLEN Sheet“Laminated”

CELEPETESLEN wood folded box

Instant food containers

Microwave/oven safe
food container

Farm product box

Fruit Tray

Fishery products
mounting board

Foamed polystyrene
farm product box

Super Soilen System
Lightweight greening
methodCushioning material for
protection

AQUAROAD

Underground stormwater tank

Folded box made of
foamed polystyrene sheet

Foamed polystyrene
cut sheet

TECHEATER

PTC ceramic heaters

Industry

Value has been recognized based on proposed business solutions, including
solutions improving customer businesses, operations and efficiency.

Home
Appliances / IT TECHPOLYMER
Fine polymer particles

EPSREM

LIGHTLONTECHTELAS

for optical applications

Foamed polystyrene material for cushion packing

Automotive /Transportation

PIOCELAN

PIOCELAN

Resin Molding

TECHPOLYMER

ST-gelTECHPOLYMERSMC Parts

ELASTIL

Medical /Healthcare

Automotive component

Self-adhesive gelpads for Medical /Healthcare use

Packaging material fortransporting automobile parts

Fine polymer particles for cosmetics
applications

Polystyrene sheet for protective cushion packing

Truck roof fairing

Medical equipmentcover

LED lighting equipment

Fine polymer
particles for use incoatings

Elastic / high bounce
foam

CSR REPORT 201916

Environmental Contribution through Business Activities

ESLEN sheet

Food

Resource-saving and recyclable food trays

Product Features
ESLEN sheets are polystyrene foam sheet which are commonly known as PSP. Mainly used for meat, fresh fish trays,
lunch boxes, and natto (a fermented bean product) containers. Compare to other non-foamed plastic food containers,
PSP food containers are lighter in weight, also they contribute to natural resource-saving due to less using raw materials. In addition, they have excellent thermal insulation property, which can contribute to reducing food waste.
ESLEN sheets have excellent recyclability as a mono-material product, they can be recycled into PSP food containers
or various products made of polystyrene.

Food

CELPET
Heat resistant food containers with excellent thermal insulation and light weight properties

Product Features
CELPET is food containers made of foamed C-PET. They havegood oil resistance and heat resistance up to 220 degree
Celsius that can be used for microwave and commercial baking lines. Because of its excellent thermal insulation, it does
not feel hot when touched after being heated in a microwave
oven. CELPET containers can also be used in commercial automatic baking lines and they can be displayed in the supermarket as they are. (repacking operation is not necessary)
CELPET is also used as a container for in-flight meals.
These are lightweight, environmentally friendly containersthat contribute to reducing jet fuel consumption and thereby reducing CO2 emissions.

17 CSR REPORT 2019

ESLEN ﬁsh box / farm product box

Agricultural /Fishery

Recyclable packaging materials that maintain freshness,even during long-distance transportation

Product Features
ESLEN fish boxes and agricultural Boxes are used in thepacking for transport of marine and agricultural products.
The strong sealability blocks external thermal exchange andthe thermal insulation property enables to maintain longterm freshness from production to consumption. Amongthem, the “cold transport box for farmed tuna” has a highcooling performance and has a structure that prevents damage to the fish and box due to the movement of the tunainside, so it can not only keep the freshness but also protect
the fish gently.
The EPS (expandable polystyrene) foams used in these
ESLEN fish Boxes and agricultural Boxes contributes towaste reduction by collaborating with EPS recycling association to promote recycling activities.

Housing /Civilengineering

AQUAROAD
Products to mitigate the impact of disasters by reducing ﬂood damage andriver inundation during times of torrential rain

Product Features
Due to climate change in recent years, unprecedented extreme weather conditions such as warm winter, an increased
frequency of typhoons and torrential downpour have occurred in Japan. AQUAROAD is effective for disaster risk
reduction by serving as a temporarily rainwater storage
against torrential downpour, reducing damage from flooding or suppressing river overflows. In order to secure roads
where emergency vehicles can pass smoothly in the event of
a disaster, it is important to take measures against floodingof roadways.
AQUAROAD has enough strength that can be installed
under the roadway, it can be used as a countermeasure forflooding around the road.

CSR REPORT 201918

Environmental Contribution through Business Activities

EPSREM

Home
Appliance/ IT

Cushioning material for home appliances made from 100% recycled material

Product Features
EPSREM is EPS bead made from 100% recycled material. It is a
closed -loop recycling product made from discarded foamed
polystyrene as well as injection plastics made of polystyrene
taken from discarded home appliances. The product, in thismanner, used material can be remolded and re-turned to themarket as a cushioning material for home appliances.
Moreover, after being used as a cushioning material
the product can be recycled and used many more times.
Despite using recycled materials, it still maintains its strong
performance as a cushioning material. It has been ten years
since the launch of the product and when looked at fromperspective of not wasting materials and using the same raw
materials over and over, EPSREM can be said to have met
the 3R(reduce, reuse, recycle) requirement.

Automotive /Transportation

PIOCELAN
Automotive parts contributing to reduced weight and fuel consumption

Product Features
Produced using our proprietary polymer hybrid technologies, PIOCELAN is a high-performance foam resin thatfeatures the added properties of polyolefin. In addition to
the traditional strength of foamed polystyrene (EPS), namely high foamability and strong rigidity, the hybridization ofpolyolefin greatly improves impact, chemical, and abrasion
resistance, which are weak point of EPS foams.
PIOCELAN is mainly used in automotive components,
in order to improve passenger/pedestrian safety and as its
lightweight extremely useful in reducing energy usage byimproving fuel efficiency. In order to prevent global warming, automotive, automobiles will be lighter and lighter.
PIOCELAN, which features excellent impact, chemical, andabrasion resistance, is a key contributor in reducing the automobile weight, thus contributing to reduce CO2 emissions.

19 CSR REPORT 2019

Medical /Healthcare

TECHPOLYMERDeveloping the TECHPOLYMER EF Series, which degrades ina natural environment

Product Features

Evaluation of Biodegradability
EF-B grade

EF-A grade

Biodegradability [%]The problem of plastic marine pollution has become more
serious over the last few years. More specifically, there has
been a growing impact on the environment from microbeads found in facial cleaners, tooth paste, and body soap.
With this problem in mind, the Sekisui Plastics Group developed TECHPOLYMER EF Series as biodegradable polymer micro particles in June 2019.
TECHPOLYMER is currently used in a wide variety of applications. In cosmetics applications, it is used as an additivethat enhances the slickness of foundation and contributes
to a soft-focus effect that makes skin appear brighter. The
Sekisui Plastics Group has continued to introduce environmentally friendly products to the market. We will introduce
TECHPOLYMER EF Series to the market not only for cosmetic field, but also other fields that might impact on the ecosystem in order to contribute to preservation of the environment through our business activities.

Biodegradability [%]EF-A grade

Cellulose[Days]

EF-B grade

PLA (Polylactic acid)[Months]

ELASTIL

Medical /Healthcare

Used in midsoles to support the evolution of running shoes

Product Features
ELASTIL is a thermoplastic elastomer bead foam that combines elastomers and our bead foam technology to provide
new values such as lightweight, resilience, shape flexibility
and so on. Sports footwear, including running shoes, are required not only to reduce weight, but also to have an outstanding resilience and better cushioning for a comfortableand fast run. While resilience and cushioning are inherently
contradictory features and there have been many challenges
in achieving both, ELASTIL has been able to achieve the required performances, as the result, ELASTIL has been adopted as a high-performance midsole for running shoes.
Today these shoes are being sold around the world, andwe continue to contribute to promote health of people
through our business activities.

CSR REPORT 201920

Basis of CSR Activity (1)Manufacturing That Considers the Environment, Safety and Quality
The Sekisui Plastics Group deems three factors as the essence of its CSR activities: manufacturing thatconsiders the environment, safety and quality; sincere management activities emphasizing compliance; andthe “practice of Zen-in Keiei” (all-member management).
In terms of “manufacturing that considers the environment, safety and quality,” we are promoting
measures that take the environmental impact of all our products into consideration, including from productdevelopment to use and disposal. In particular, we are continuing our work aimed at recycling our mainstream
foamed polystyrene sheet (PSP) products, which are used in a wide variety of products taking advantage ofits features to their light weight, strength, and thermal insulation properties.

Achieving resource and energy saving taking
advantage of its lightweight, and maintaining our focus on recycling

suited to keeping foods cool and warm because heat has

Generally speaking, EPS (expandable polystyrene) foam is

EPS foam can be classified largely into three types, withformed by expanding polystyrene resin, a type of plastic, by
about 100 times.

difficulty transferring between the air cells.
Moreover, as a single material, it is easy to separate, whichmakes it ideal for recycling.
each type based on the manufacturing method.
Among these is foamed polystyrene sheets (PSP), which

About 90%–98% of the product’s volume is actually air,are formed by foaming polystyrene resin up to dozens ofwith the plastic resin composing only 2%–10%. The reduced

times. Taking advantage of its strength, lightweight, absorp-

amount of precious natural resources needed for production

tion impact, thermal insulation, PSP is used to make not only

contributed to the conservation of resources. The productfood trays for meat & fresh fish, but also natto containers,

itself is rather easily produced and can be molded into a va-

instant noodles packaging and fruit packaging.

riety of shapes and used in various applications. In addition

On the other hand, bead method expanded polystyrene

to its rigidity, the polystyrene material itself is composed(EPS) is foamed about 50 times and is used as a cushioning

largely of individual closed-cell air bubbles (about 95% ofvolume), making it not only strong and durable, but also able
to absorb impacts and therefore better protect the enclosed
product. As a mass of individual closed-cell air bubbles, EPS
foam also boasts a high thermal insulation property that is

21 CSR REPORT 2019

EPS foam particles (left),enlarged cross-section
photo (right)

material for home appliances, fresh food transport boxes,on the environmental impact over the lifecycle of our prod-

automotive components and housing applications.

ucts, and we have been working with tray manufacturers for

When used as a heat insulating material for automotive

a long time, including in regard to manufacturing products

parts and housing, the effects from reduced energy usage

from the raw materials reclaimed through recycling. The PSP

also contribute to a drop in CO2 emissions.

we manufacture is governed by the Japan Environmental

Because of these superior properties, EPS foam is used

Management Association for Industry (JEMAI) and was reg-in a variety of segments, including in Human Life Segment

istered in 2006 with an Eco-leaf Environmental Label, whichand Industry Segment. Moreover, since the foamed poly-

discloses environmental information pertaining to the entire

styrene in both PSP and EPS forms is composed of carbon

life cycle of a product, from the collection of raw materials

and hydrogen, when there are carried out complete com-and resources, to manufacturing, distribution, use, disposal,

bustion, there is almost no ash and no harmful gasses suchand recycling based on life-cycle assessment (LCA) methods.

as dioxin or carbon monoxide, just water vapor and carbon

The Company will continue to engage in product devel-

dioxide. As such, foamed polystyrene can be seen as a ma-

opment that takes advantage of strong material properties

terial with a very limited impact on the environment, whensuch as impact resistance, thermal insulation, water imper-

its collection and processing operations are conducted in ameability, lightweight, and moldability. At the same time, we

proper manner.

will remain committed to promoting the creation of prod-

For foamed polystyrene sheets, used PSP trays are col-ucts with the environment in mind, with particular attention

lected from consumers at local stores and supermarkets,given to resources saving and recycling as part of that prod-

and then recycled. Sekisui Plastics has maintained a focus

uct’s life cycle.

Interview

Focusing on improving the environment by enhancing efficiency in production
In terms of consideration given to the environment, attention over the last few years has
been largely centered on the second half of agiven product’s life-cycle, including in regard
to recycling efforts. However, since reduced
production efficiency as a result of productdefects results in an increase in waste, we
believe it important when focusing on theenvironment to also consider the first half ofa product’s life-cycle, where improvements in
production efficiency can contribute to the
reduced utilization of resources. More specifically, I work in quality control, and continually

strive to improve quality awareness, including in regard to safety, while also promoting
measures aimed at preventing foreign matter
contamination. The Kanuma Plant recently set
a record by remaining accident free for morethan 3,000 days, and we have seen the resultsof our efforts in other ways as well, including
by receiving quality awards from customers
for two consecutive years. We will continue
our efforts moving forward, with the awareness that the entrenchment of quality control
will ultimately contribute to an enhanced focus on the environment.

Mikado Yamazaki
Sekisui Plastics Tobu
Kanuma Plant

CSR REPORT 201922

Basis of CSR Activity (2)Sincere Management Activities Emphasizing Compliance
One of the three factors that the Sekisui Plastics Group regards as the essence of its CSR activities is “sincere
management activities emphasizing compliance.” We believe this to be a rule with which we must comply inorder to fulfill the social responsibility that we have to all of our stakeholders.
One matter attracting the world’s attention is the issue of plastic garbage in the marine environment.
Recycling activities aimed at reducing plastic waste in order to resolve this issue are being promoted
throughout the company and are positioned as activities emphasizing compliance in line with thecompany’s responsibility.

Promoting the recycling not only of inhouse plastic, but also waste from small
volume emitters

cept items from home appliance retailers, air conditioner

The Sekisui Plastics Group launched the recycling of ex-

The Sekisui Plastics Group also operates as a managing

pandable polystyrene 48 years ago in 1971. We now havecompany and has organized a small-volume waste group,

collection and recycling facilities at our 23 offices of thewith the Tenri recycling center, “Tenri Epsy Plaza” using

Group and are working to recycle used expandable poly-an electronic manifest system operated by the Japan In-

styrene, as well as product and material losses incurred

dustrial Waste Management Promotion Center, a publicduring production.

interest incorporated foundation, to ensure compliance

operators, and equipment manufacturers after productdeliveries to customers, and make effective use of theseresources to produce recycled resins.

The Sakai (Ibaraki Prefecture), Tenri (Nara Prefecture),

with laws and regulations when accepting items from ap-

Ozu (Ehime Prefecture), Nakatsu (Oita Prefecture) andpliance retailers. The creation of a manual showing the

Uruma (Okinawa Prefecture) facilities have acquired in-minimum number of necessary procedures for relatively

dustrial waste processing licenses and accept used ex-

inexperienced businesses makes it easier to exchange

pandable polystyrene for recycling from external busi-

forms, and by eliminating the need for individual opera-

nesses. One of the key points in recycling is to incorporate

tors to report to the government, we are working to im-waste from businesses generating only a small amount ofprove the effectiveness of recycling while simultaneously

waste in accordance with the law. These five locations ac-

eliminating the avoidance of compliance.

Interview

Observing compliance in the recycling of plastics

Ikuo Morioka
Environment and Quality Control Center
Department for the Promotion ofEnvironmental Safety

23 CSR REPORT 2019

The issue of plastic waste in the world’s
oceans is gathering a great deal of interest,
resulting in growing efforts aimed at reducing plastic waste and resolving the problem.
Recycling is one of the ways companies
are working to address the issue, though it
should also be noted that there are a numberof laws and regulations related to the processing of waste that these companies mustalso deal with.
The Sekisui Plastics Group’s Ibaraki, Nara,
Ehime, Oita, and Okinawa facilities have ac-quired industrial waste processing licenses
and collect used expandable polystyrene forrecycling from external businesses. Thanks
to the efforts of workers to remove foreign
substances that hinder the recycling process,we were able to recycle roughly 224 tons ofwaste expandable polystyrene from externalsources in fiscal 2018. We intend to continue to work with local governments to further
advance the proper collection and recyclingof this waste.

Basis of CSR Activity (3)Practice of Zen-in Keiei
The Sekisui Plastics Group believes that the “practice of Zen-in Keiei” (all-member management) forms not
only an essential part of its CSR activities but also the very corporate culture that underpins the Group’s
development. An entrepreneurial spirit to tackle new things and a business entrepreneurial spirit to work on
your own initiative or devise mutual studies are thought necessary for the practice of Zen-in Keiei.
In order to convey the spirit of practices of Zen-in Keiei to the next generation, we have established Sekisui
Plastics - Juku (Sekisui Plastics School), with the Company president at its head as part of our effort to createa system for fostering the human resources who will be responsible for leading the next generation.

The Sekisui Plastics – Juku was establishedto develop the next generation leadersand executives earlier in Japan and overseas, and focuses on nurturing global human resources as well as improving vitality
and a proactive approach

nication, and ability to execute).
The purpose is not just to produce immediate results,
but also to learn new things and grow through discussions with fellow participants.
The Juku has three level-based courses, including acourse aimed at developing executive leadership. Eachcourse has more than a dozen participants, with each giv-

The Sekisui Plastics – Juku was launched in fiscal 2013 as

ing a presentation to executives at the end of the course.

a selected in-house training program to execute practic-

The Sekisui Plastics – Juku is now in its seventh year andes of Zen-in Keiei and achieve global growth.

continues to convey the spirit of practices of Zen-in Keiei,

Our goal is to use the program to develop vital andproactive human resources that will lead the next gener-

at the same time it trains the human resources who will
ultimately play an active role on the global stage.

ation and act on a global basis.
This Juku teaches and fosters not only basic necessary
skills, including in areas such as “development and sales”
and “creating a new business,” but also the five humanresource qualities required of employees of the Sekisui
Plastics Group (thinking, creativity, self-reliance, commu-

Interview

Using the experience gained at the Sekisui Plastics – Juku to launch new products in new market
I attended the B course at the Sekisui Plastics - Juku, which focuses on fostering humanresources that can maintain a “market-in”
mindset, utilize their cross-organizational
capabilities, and propose useful solutions totheir customers.
I was able to make use of my personal hobbies during the course and worked on thedesign of sneaker materials. After looking at
existing products on the market, it became
clear that “high resilience” was currently indemand, which led to the development of

ELASTIL, a new material based on Sekisui
Plastics technology.
It was of course important to cultivate customers after development, and by remembering the spirit of practices of Zen-in Keieitaught at the school, we were able to fullycommercialize the product by making use of
our in-house network to reach our customers.

Masayuki Takano
Sekisui Plastics Tobu
Manufacturing Department, No. 1
Manufacturing Center
No. 3 Manufacturing G

CSR REPORT 201924

Sekisui Plastics Group ESG
The
Environment

To achieve a sustainable society, Sekisui Plastics Group promotes activities that reduce
emissions of environmentally hazardous substances generated through businessactivities, and that preserve biodiversity.

Inputs/Outputs (FY2018 Results)
Sekisui Plastics Group grasps and manages the environmen-

production volume. We are working on the low carbon soci-tal impact arising from business activities in “unit consump-

ety plan launched in FY2013.

tion/output,” which expresses environmental loadings per

Overseas

Japan
Inputs

InputsEnergy consumption

Energy consumption

1,882.75

Water consumption

million MJ/year

Electric: 121,514 MWh/year
Non-electric: 17,319 kl/year[Crude oil equivalent]

3,389

thousand m3/year

Recycling 8,531 t/year
Materials Recycling:
6,854 t/year
Thermal Recycling:
1,677 t/year

Outputs
Atmospheric environmental load
CO2 emissions: 109,047 t/year (Production)
CO2 emissions: 8,304 t/year (Logistics)
NOx emissions: 31 t/year
SOx emissions: 83 t/year
Aquatic environmental load

295.50

Water consumption

million MJ/year

156

Electric: 10,845 MWh/year
Non-electric: 4,834 kl/year[Crude oil equivalent]

Sekisui Plastics• Sales• Production• R&D

thousand m3/year

Recycling 572 t/year
Materials Recycling:
547 t/year
Thermal Recycling:
25 t/year

Outputs

Atmospheric environmental load
CO2 emissions: 16,585 t/year (Production)
NOX emissions: 12 t/year
SOx emissions: 0.5 t/year

Aquatic environmental load

Total efﬂuent: 3,241 thousand m3/year
Amount of COD discharge: 17 t/year

Total efﬂuent: 75 thousand m3/year

Industrial waste

Industrial waste

8,780 t/year

706 t/year

Final landfill disposal and simple incineration:
249 t/year

Final landfill disposal and simple incineration:
134 t/year

25 CSR REPORT 2019

FY2018 Activity Results
Initiative to Reduce CO2 Emissions in Production

Reducing Water Consumption in the Production Process

Sekisui Plastics Group set up the Energy-Saving Promotion

Water is becoming an increasingly precious natural resource

Committee and promotes the energy saving through inno-

worldwide and in addition to focusing on how much water thevations on production process.

company uses and how much wastewater it releases, the Sekisui

In FY2018, our energy-saving activities resulted in a 0.8%
decline in domestic CO2 emissions (basic unit) from the previous year. Likewise, overseas CO2 emissions (basic unit) declined 4.6% due to greater production efficiency.

Plastics Group is taking measures to reduce usage by studying
ways to more efficiently use this valuable resource.
Domestic water consumption in FY2018 was 3,389,000m3,
including 1,371,000m3 of groundwater and 81,000m3 of

We are continuing to work to reduce CO2 emissions inpublicly supplied water. Overseas water consumption was

FY2019, by improving processes, eliminating steam/air leak-

156,000m3. In FY2018, the Company conducted a review ofage, and reducing heat loss.

processes and promoted reuse of water, in particular, which
led to a 1.4% decline in total water consumption and a 2.7%
decline per basic unit from the previous year.
We are continuing to work to conserve water in FY2019 inorder to maintain and preserve water resources.

TOPICS

Signatory to The Declaration of the Global Plastics Associations for Solutions on Marine Litter

With worldwide interest in the subject of garbage in the oceans continuing to increase, Sekisui Plastics is a signatory to “The Declaration of the Global Plastics Associations for Solutions on Marine Litter” promoted by the Japan Plastics Industry Federation.
The Company will continue to develop materials and products that are less likely to become marine litter while simultaneously
working on the issue with customers and employees. We are also working to instill theidea of reducing river and ocean garbage in individual activities.
The Sekisui Plastics Shikoku Co., Ltd., Ozu location is working to recover and recycle
EPS foam floats used on aquaculture rafts throughout Shikoku.
In FY2019, the Company will endorse the UMIGOMI Zero WEEK activities called forby Japan’s Ministry of the Environment and The Nippon Foundation. Under the themeof “preventing the discharge of plastic pieces to the outside,” all Group companies willconduct cleanup activities around their business locations.

CSR REPORT 201926

Sekisui Plastics Group ESG
The
Environment

Initiative to Reduce CO2 Emissions in Distribution

Initiative to Reduce CO2 Emissions in Ofﬁces

The Sekisui Plastics Group is working to reduce CO2 emis-

We have started energy-saving activities such as turning off

sions by improving efficiency in distribution and organizing

unnecessary lights, and installation of energy-saving equip-

projects to reform the distribution system from FY2017. As

ment such as LED lighting and individual air conditioners.

part of our efforts, we are decentralizing production sites

In FY2018, we completed conversion to LED lighting at all

and constructing warehouses in business centers to improve

locations, including production sites. In FY2018, we reduced

our distribution network. In FY2018, we achieved our reduc-energy consumption on a basic unit per area by 4.3% fromtion targets for transport between plants, but higher ship-

the previous fiscal year.

ment volumes led to a 5.7% increase in CO2 emissions.

Compliance with the Chemical Substances Management Act
In compliance with the PRTR* system under the Chemical

Management Thereof), we promote improvement to reduce

Substances Management Act (the Act on Confirmation,

emissions of specified chemical substances.

etc. of Release Amounts of Specific Chemical Substances*PRTR: Pollutant Release and Transfer Registerin the Environment and Promotion of Improvements to theEmissions of chemical substances (PRTR substances: Rounded to one decimal place)
Substance
Fiscal Year

StyreneToluene(t)

Methyl methacrylate

Ethyl benzene

2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

5.8

6.2

6.6

4.7

4.7

0.7

0.4

0.4

0.5

0.4

1.3

1.4

1.4

1.6

1.4

0.0

0.1

0.1

0.1

0.1

Water

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Soil

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Transfer

1.1

1.6

2.7

2.8

3.4

0.1

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

EmissionAir

27 CSR REPORT 2019

Green Curtain Activity & Green Wave Activity
As an environmental contribution activity based on a groupwide
topic, Sekisui Plastics Group carries out the Green Curtain Activity that the Ministry of the Environment encourages as a summertime power-saving and CO2 reduction measure. In FY2018,
39 locations in Japan and overseas joined in the activity.
Moreover, to raise biodiversity awareness, mainly among employees, as part of the Green Wave Activities called for by the
Ministry of the Environment of Japan, in FY2018, 39 locations
from 17 Group companies registered with the Ministry of theEnvironment’s website and engaged in activities.
In addition, during the International Day for Biological diversity on 22 May, our locations in Niigata, Oita, China, Indonesia,
the Netherlands, and Mexico planted trees starting at 10:00amin their respective time zones to launch a green wave.

Zero Emission Activity
In order to reduce and recycle the industrial waste, we
joined in the zero emission activity in FY2001.
Our Group companies also started the activity from April
2005. The recycling rate in FY2017 was 98.5% in a total of all
Group companies. The head office started from November
2004 and we achieved almost 100% recycling rate in FY2017
by thoroughly separating the waste.

ColumnGreen Wave Activities

Sekisui Plastics Mexico S.A. de C.V.

Jorge Arroyo

The “Green Wave” activities involve people planting trees in their respective time zones at
10:00am on 22 May, the International Day for Biological Diversity as designated by the United Nations. This activity occurring at 10:00am in each time zone creates a “green wave” thatmoves across the world from east to west.
I understand that Sekisui Plastics in Japan had previously participated in green waves, but in
FY2018, those of us in Mexico also participated in this activity in response to encouragementfrom Japan. Our involvement in this activity attended by many people from around the world
at the same timing and during which the Sekisui Plastics Group alone realized a wave of greenthat encircled the globe, from Japan to Mexico, was an amazing experience.
Going forward, we will keep watch so that the old and newly planted trees within our locations grow vibrantly, and will actively participate in activities that contribute to local greening.

CSR REPORT 201928

Sekisui Plastics Group ESG
Human Rights
Society

Sekisui Plastics Group respects fundamental human rights and takes into considerationthat no one is discriminated on any and all factors such as birth, nationality, ethnicity,
creed, religion, gender, age, disability.

Human Rights
Initiatives to Human Rights
Sekisui Plastics Group’s stance on human rights appears ininternal point of contact or an outside attorney and address

the Compliance Manual and is widely publicized among theissues related to human rights.

Group’s employees.

In March 2018, Sekisui Plastics published the second edi-

To prevent sexual harassment, power harassment, andtion of the company’s compliance manual, which included

other abuses that could occur in the workplace, we conduct

revisions centered on labor practices and harassment. In or-

several training programs as part of employee education.

der to expand the understanding of the topics covered in the

In addition, we have set up the SKG (Sekisui Kasei Group)

second edition, we are implementing e-learning programs

Clean Network, an internal whistleblowing system whereby

for all group employees, and with the goal of fostering an

a staff member can directly report human rights abuses to anawareness of the importance of compliance we continue toremind our employees that the issues of human rights andharassment are never far away.

ColumnSupport for Parents

Foam Materials Development Group (Tenri),
Development Department, R&D Center Yuichi Gondo

In raising our children it’s been helpful to use the childcare leave system that makes it
possible to take time off up until a child reaches age two, and the company’s system fortaking leave in half-day increments for up to five days per year to care for a child. Thanks tochildcare leave I’ve been able to share lots of time with my kids who are growing up so fast,and it’s been possible to have a greater sense of their growth. Together with the childcare
leave I took when my third child was born, I was able to be there for the birth of all three ofmy children, which has been an enormous joy.
More than just offering an ample lineup of systems, though, this is a company where
people understand what it takes to raise a small child, like when one of them has a fever orsome other problem, my coworkers or supervisor will say “Why don’t you go home early
and take care of your kid.” I really feel that owing to these systems I’ve been able to moreeasily balance work with childcare.

29 CSR REPORT 2019

Labor Practices
On the basis of our founding spirit such as “for the happiness of people working for the company,” we regard human resources as one of our most important management resources. For this reason, Sekisui Plastics
Group is proactive in not only skill development supports and fair evaluation of employees, but also efforts
to create a good work-life balance and a healthy/safe work environment.

Labor Practices
Certiﬁcation as a Company Promoting Child-Raising Support

Physical and Mental Healthcare

In 2012 and 2014, we acquired the “Mark of Certification

To support the physical and mental health of employees, weof Support for Raising Next-Generation Children” (com-provide a wide range of services including medical checkups,

monly called “Kurumin”) from the Osaka Labour Bureau of

medical consultations with an industrial physician, guidance

the Ministry of Health, Labour and Welfare. This is an offi-

from public health nurses on reversing metabolic syndrome,cial acknowledgement of our efforts to support employees

and hygiene training.

to balance work and family life by enhancing our childcare

For the mental health, in FY2012, we formulated a basic

leave system and promoting taking paid leave. We contin-

policy, Sekisui Plastics Group’s Mental Health Promotion. We

ue to aspire to be a company that supports child-rising bycontinually and systematically engage in mental health sup-encouraging the use of relevant programs and supporting

port activities, including preventive measures.

systems that create employee-friendly workplaces and worklife balance.

In FY2016, we held stress-check tests, engaged in activities
to prevent lifestyle-related diseases from becoming severe,and provided health information in order to raise healthBusiness Promotion Consortium—
passing on the founding spirit to now

awareness among employees. In FY2018, our stresscheck

Sekisui Plastics Group set up the Business Promotion

Employment Promotion of People with Disabilities

implementation rate was 92.3%.

Consortium comprising all members of employees anddirectors, and encourages their voluntary participation in

The employment rate for people with disabilities for the

management.

entire Group was 1.6% in FY2018. This rate has not reached

The Consortium pursues the workers’ happiness throughthe management philosophy of mutual respect and trust.
We treasure the founding spirit of Sekisui Plastics Group,“the happiness of people working for the company,” andthe legal standard so we continuously strive to increase
the rate by sharing examples of employment (job content,
working environment, etc.) of the Group companies hiringsuch people.

practice the corporate culture, Zen-in Keiei, through activities of the Consortium.

Diversity Initiatives
With the goal of promoting diversity, Sekisui Plastics Group
believes it essential to provide all employees, regardless ofnationality, age, or gender, with workplaces where they canfully demonstrate their skills and abilities under a variety ofconditions. As part of this effort, we are focusing on the active advancement of women and advancing measures aimed
at creating an environment in which as many women as possible can excel.

CSR REPORT 201930

Sekisui Plastics Group ESG
Society

Human Rights/Labor Practices

Sekisui Plastics Cram School (SK-Juku)

Safety-Related Activities

The SK-Juku promotes the early development of global exec-

In addition to safety patrols of each workplace and site pa-

utive-level employees and next-generation leaders, strength-

trols by top managers, we carry out the following activities.

ens develop-sales skills, and cultivates human resources witha sense of vitality. Participants can learn the knowledge andtheories required as future management/managers throughlessons by external lecturers, discussions between directors,

1 Safety briefings with the top manager
Each top manager has a briefing with every single employee to find out dangerous facilities and procedures. We use
results of the safety response survey of the Japan Industrial
Safety and Health Association.

and practical education by directors and management.

2 Appointment of one-day safety managers
All Group companies appoint one-day safety managers toincrease awareness and responsibility on safety and finding out unsafe conditions.

3 Safety meetings by each production section
Group companies that have any similar facility and/ or procedure get together to discuss common issues and make/carry out safety measures.

Lost Time Injury Frequency Rates*

Accident Severity Rate*

1.50

0.150

1.00

0.94

1.06

1.06

1.02

0.100 0.10

0.26

2014

Sekisui Plastics Group

2015

0.015

0
2016

2017

0.07

0.08

0.040

0.22
0

0

0.06

0.050

0.42

2013

0.10
0.09

0.50

0

1.20

1.15

2018

0
(FY)

Manufacturers (100 or more employees)

0
2013

0
2014

Sekisui Plastics Group

2015

2016

0.004
2017

0
2018

(FY)

Manufacturers (100 or more employees)* Lost Time Injury Frequency Rates: The number of absent employees due to industrial
accidents per 1 million working hours* Accident Severity Rate: The number of lost workdays per 1,000 working hours

Lost Time Injury Frequency Rates of Manufacturers (100 or more employees): Excerpted fromstatistics in the Ministry of Health, Labour and Welfare’s Survey on Industrial Accidents.

Accident Severity Rate of Manufacturers (100 or more employees): Excerpted fromstatistics in the Ministry of Health, Labour and Welfare’s Survey on Industrial Accidents.

31 CSR REPORT 2019

Human Resource Development at Production Sites

Safety-Related and Health Activities

We promote human resource development at production

We conduct periodic training, safety education and emer-sites based on a concept, “Monodukuri (to create things)” isgency response drills to hone employee abilities and skills,“Hitodukuri (to create human resource).”and maintain/improve safety and health. We set up Anzen

We promote the SKG Kaizen Activities for enhancing Mo-

Dojo (Safety training halls), where employees can experi-

nodukuri capability of the entire Group while improving hu-

ence simulated accidents, at eleven locations in Japan andman resource of production site workers.

nine locations overseas as educational facilities to raise

All workers at production sites, whether they are fulltimer
and part-timer, participate in SKG Kaizen activities and aresafety awareness among individual employees and impart
safety skills.

committed to create better things in terms of the environment, safety, quality and cost.
Every year, 10 teams, which qualified from over 240 teams
in global, give KAIZEN presentation at the final tournament.

ColumnSafety Training Center in the United States

Sekisui Plastics U.S.A., Inc
Environmental, Safety and Training Supervisor

Kris Foster

At our location in Tennessee we have set our sights on a safety training center, otherwise known as an “anzen dojo,” or “safety hall,” with the goal of eliciting awareness.
The anzen dojo is installed with visual and hands-on training equipment that facilitates
understanding and awareness with regard to proper procedures and processes needed to perform operations, all while securing safety in the course of carrying out tasks.
There is also safety education and training with a wide array of content. For example, every month guidance meetings are held to instruct employees on a variety of
topics, including “knife safety,” “the handling of packaging boxes,” “fire extinguisher
drills,” and “emergency action planning drills.”
We also refresh programs and training method design on a daily basis so as to haveall of our employees stay active in the “anzen dojo.”
Moreover, all employees take the full lineup of programs, and we take care to create an atmosphere that makes it easy to participate so that they will apply what theylearned to their daily duties.

CSR REPORT 201932

Sekisui Plastics Group ESG
Consumer Problems
Society

To carry out our responsibility to consumers, Sekisui Plastics Group pursues
safety and reliability through activities ensuring product safety and correcting
the understanding of environmental impact.

Initiative to Quality Assurance
We operate a customer-focused quality assurance system, applied from the development stage to ensure that all products andservices meet the expectations of our customers.

Basic Stance on Quality Assurance

Chemical Substance Management

The Company’s philosophy is that product quality should

The Sekisui Plastics Group has established a green pro-cure-reflect customer values, not those of the Company, and as

ment standard for raw materials and with the goal of pro-such we carry out upstream management (ensuring productviding information on chemical substances in its products,

quality at the development stage) in an integrated manner

manages all chemical substances under ChemSHERPA

throughout the entire Group. We conducted an in-house(short for chemical information sharing and exchange undercampaign to improve quality awareness in FY2018.

reporting partnership in supply chain), a domestic information transfer scheme.
In addition, all of our products are labeled according

Approach to Product Safety

to GHS classifications and their safety data sheets (SDS)
We are committed to developing products that take into

are available.

consideration the environment, safety and health throughout the entire product life cycle, from the research anddeve-lopment stage to product disposal after use.

Improve Product Quality at Development Stage

Market needs,
Customer needs

Sales
Activities

Development
Topic
Evaluate/Decide

Design
Review
Environmental Impact
Laws and Regulations

Initialproduction
control

New productMarketevaluation

Preliminary Safety

Respond to Consumer Problems
Responding to Accidents/Defects on Products

Raising Customer Satisfaction

We developed internal regulations to deal with product ac-

The Group attempts to identify customer needs using inqui-cidents. When an accident occurs, responsible departments

ries via our corporate website and by visits to customers, in our

take the lead in promptly response based on the regulations,pursuit of customer satisfaction.

with full consideration of the customers’ perspective, and related departments cooperate in finding a solution as necessary. In the case of a serious product accident, responsible departments promptly report to the top management and takes
rapid, appropriate response.

33 CSR REPORT 2019

Cooperation with Kyoto Manufacturing Workshop
Sekisui Plastics is working in cooperation with the Kyoto Man-

course is offered to and enjoyed by elementary school stu-

ufacturing Workshop courses promoted by the Kyoto City

dents in the city of Kyoto. In cooperation with the 3S Senior

Board of Education. One of the learning programs is focused

Venture Club (a volunteer group of Sekisui Chemical alumni),

on foamed polystyrene (generally referred to a Styrofoam),

the Sekisui Plastics Group provides support, instructors, andwhich is quite useful in our lives thanks to its light weight, ther-materials for hands-on learning in these programs.

mal insulation, and shock absorbing properties. The learning

Recycling
Sekisui Plastics Group has been a leader in the recycling ofwell as wide-area certification at Sekisui Plastics Yamaguchi

EPS foam for 48 years, since 1971. We established the Japan(covering Hiroshima, Yamaguchi, and Shimane Prefectures),

EPS Recycling Association (current: JEPSA - Japan Expand-the Group is actively engaged in the recycling of Styrofoam.

ed Polystyrene Association) together with raw material andOf particular note, the Sekisui Plastics Shikoku Ozu facility

molding companies in 1991. Following the acquisition of

acquired permission to operate transport businesses and ispermission to operate industrial waste disposal businesses

undertaking the collection and recycling of foamed polysty-

in Ibaraki, Nara, Ehime, Oita, and Okinawa Prefectures asrene floats used throughout Shikoku.

Recycling of Expandable Polystyrene Foam (EPS)
（%）

100

Thermal recycling rate

Material recycling rate

85.7

80

71.6
60.1

60

34.5 36.0 38.2

55.0

55.7 54.4 52.8

2011

2016 2017 2018 (Year)

26.6

28.7

0

30.7

22.3

40
20

90.2 90.4 90.8

12.6
12.6
1991

28.7
1996

37.8

2001

45.0

2006

Data source: JEPSACSR REPORT 201934

Sekisui Plastics Group ESG
Community Involvement and Development
Society

As a good corporate citizen, Sekisui Plastics Group aims to meet the expectations andreward the trust by society. The Group will fulfill its role as a member of society through its
business activities in order to promote the sound development of communities.

Social Contribution Activities of Sekisui Plastics GroupIn accordance with our CSR Declaration set forth in the Sekisui

The Action Policy defines two themes in its promotion of

Plastics Group’s 100th Year Vision, we foster a culture of socialsocial contribution: corporate social contribution activities

contribution and actively promote social contribution activities.

and support for activities by Group employees.

With greater importance given to CSR-oriented manage-

Following the policy, we have set two activities of “social

ment, the Social Contribution Committee has formulated thecontribution activity promotion as a company” and “social“Social Contribution Action Policy” and promoted activities incontribution activity support to the Group members” to pro-an organized manner throughout the Group.

mote our activities.

Social Contribution Activity Policy❶ We play an active role in and fulfill our responsibilities toward local and international communities as good corporate citizens.
❷ We use our management resources effectively and promote distinctive activities.
❸ We stay focused on the objectives and results and make every effort to promote activities of value to all.
❹ We encourage the voluntary participation of everyone in the Group.
❺ We disseminate information on our activities both within and outside the Group.

Disaster Assistance Agreements Signed with Local Authorities
In January 2019, three group companies, Sekisui Plastics
Kanto, Sekisui Plastics Tenri and Sekisui Plastics Shiga entered into agreements with regard to providing material
support in times of disaster to Koga City in Ibaraki Prefecture, Tenri City in Nara Prefecture, and Koka City in Shiga
Prefecture, respectively. In the event of a large-scale disaster,
the companies will supply local authorities with insulationand cushion materials, as well as simple food containers andother items made using the materialsof the Sekisui Plastics Group, thus contributing to local communities.

35 CSR REPORT 2019

Volunteers and Donation Drives for
the Torrential Rain Disaster in Western JapanIn July 2018, the Mabicho district of Kurashiki City in westernJapan was the scene of a devastating torrential downpour,and it was here that we participated in disaster volunteer activities. Under the blistering late August sun we worked toclean mud out of houses, a monumental task, and had thepainful realization that this would require long-term support.
We also matched the donations given by Group company
personnel as a corporate monetary donation subsequently
provided to the Japan Red Cross Society.

Grant Activities through the Sekisui Plastics FundWith the aim of providing assistance to support biodiversity preservation activities, we established the Sekisui Plastics
Fund with a contribution to the “Mirai Fund Ohmi” in 2012,
and to expand upon this, we created a new fund with a contribution to the “Mirai Fund Ibaraki.” We continue to assist
activities conducted by local NPOs, in which Group employees are active and participate as volunteers, and together
with that, endeavor at Satoyama Conservation Activities.

ColumnHands-on Experience at Creating a Water
Conservation Forest to Protect Saba River

Hofu Plant, Sekisui Plastics Yamaguchi Co., Ltd.

Takuya Fujiwara

Every year we participate in hands-on activities to create a water conservation
forest that conserves the Saba River in an initiative sponsored by the Yamaguchi Prefecture’s Office of Agriculture, Forestry and Fisheries. In November of
FY2018 approximately 70 employees from companies that utilize Saba River
water participated in these activities, and joining in was a group of 12 led byPresident Ejiri from the Hofu Plant.
These activities at forest maintenance, such as clearing out brush and pruning trees, helped not only the participants, but all employees, to gain a deeper understanding of the role the forest plays as a crucial source of industrial
water to a company’s production activities, specifically functions including water source recharging and the prevention of global warming.
Prior to thinning brush and pruning, the forest was thick with an atmosphere of the heavy darkness found deep in the mountains.
The completion of that work, however, let the sun shine in and the trees and ground that had been covered in darkness were bathedin sunlight. It felt as though this would foster the growth of trees and new vegetation.
Participation in this activity further elevated an awareness of the environment, and to even in just a small measure contribute tosolving the ongoing societal issue of water-borne plastic garbage, we are renewing the resolve that we must also make efforts tocollect plastic garbage from within forests and from rivers.
CSR REPORT 201936

Sekisui Plastics Group ESG
Organizational Governance

GovernanceSekisui Plastics Group, on the basis of its management philosophy, is proactive in theprompt and pertinent information disclosure while ensuring management transparency,
validity, and compliance in management.

Corporate GovernanceSekisui Plastics carries out social responsibility to stakehold-ernance. These Guidelines form the starting point for theers and aspires to be “a plastics solution company trusted byeffective functioning of corporate governance, to maintaincustomers around the world.”

management transparency and soundness, and establish aWith Japan’s Corporate Governance Code having taken effect from June 2015 for companies listed on the To-

management structure that is able to address changes in theoperating environment.

kyo Stock Exchange, Sekisui Plastics Group has formulated

The guidelines are available in Japanese only on our website:

its own “Corporate Governance Guidelines” outlining thehttps://www.sekisuiplastics.com/company/outline/governance/

Group’s policies and activities regarding corporate gov-

Corporate Governance Framework
Shareholders’ meeting
Appoint/dismiss

Appoint/dismiss

Board of Directors 9 Directors Operational audit

Audit & Supervisory Board 5 Audit & Supervisory Board Member(6 internal and 3 outside)*(2 internal and 3 outside)*

Assign and supervise

Financial audit

President
Independent Auditors

Deliberate on substantive matters

Financial audit

Executive Committee (discuss on important matters)
Appoint/
dismiss

Appoint/
dismiss
Cooperation

14 Executive Officers(6 concurrently Directors)

CSR Control Committee• Compliance Committee, etc.

Internal Audit Department• Responsible Care Internal Audit Committee
Internal
audit

Other
committees
Internal
audit

HQs/Departments/Subsidiaries*Three Outside Directors and Two Outside Corporate Auditors are appointed as independent officers.

CSR Promotion
To mark the 50th anniversary of foundation, we formulated
the CSR Vision as well as Sekisui Plastics Group’s 100th Year
Vision. According to the CSR Vision, we set up the CSR Con-CSR Promotion
Structure

Environmental Committee

CSR Control
Committee

Social Contribution Committee

trol Committee, whose chair is the president, and actively(Chair: President)

Safety Committee

promote the CSR.

Secretariat

Quality Committee(Corporate Planning
Department)

Responsible Care Internal Audit Committee
Compliance Committee(Committee Chairs: Responsible Directors)

37 CSR REPORT 2019

Promoting ComplianceSekisui Plastics Group set up the Sekisui Plastics Group’sular basis to deliberate on compliance matters in the Group.

Compliance Guideline, describing how to act as a represen-

In addition, each Group company establishes a Compli-

tative of the Company, and has been building a favorable

ance Committee and appoints a responsible person to co-relationship with societies.

operate the Groups each other.

Also, the Group established a Compliance Committee to

To fulfill corporate social responsibilities, the Group set up

enhance and promote compliance of the entire Group withan internal whistle-blowing system “SKG Clean Network,”laws/regulations. The Committee is held twice a year on a reg-and strives to build a fair and vigorous organization.

CSR Control Committee
ReportRelevant Departments

Compliance Committee

Instruct

ReportInternal Hotline

Report○ General Manager of Legal Department○ Secretariat of the Compliance Committee

ReportExternal Hotline

Investigation request○ Legal Advisor

Response

ReportOptionResponse

Response

Whistleblower

Basic Policy Concerning the Distribution of Proﬁts
In principle, we return profits to shareholders depending

Dividends per Share and Dividend Payout Ratioon consolidated financial performance and with the aim of(Yen)

distributing stable dividends. We will implement a dividend
policy targeting a consolidated dividend payout ratio of 30–
40%. In addition, we plan to flexibly implement the acquisi-

40

43%
30

36%

tion and retirement of treasury stock as part of profit-sharing
with shareholders. Internal reserves are selectively appropri-

30

27

24

24

20

36%

33%

ated for strategic investment leading to the future growthand enhancement of the management structure.

100FY2015
Dividends per ShareFY2016FY2017FY2018Dividend Payout Ratio

Note: The Company consolidated its common share at the ratio of two shares to one, effective on
October 1, 2016. On assumption that the share consolidation was implemented on the beginningof FY2015, the dividend per share shows in the graph.

CSR REPORT 201938

Sekisui Plastics Group ESG
GovernanceFair Operating Practices
Sekisui Plastics Group complies with laws and regulations, strives to engage in fair
operating practices, and conducts business activities based on high ethical standards.

Culture Vision “Zen-in Keiei”

For the growth of both company and its people
4 keywords for the practice of Zen-in Keiei
Innovation

Speed

Furthermore, for understanding and realizing the corporate goal of the entire Group we have been making each

Teamwork

Respect for Diversity

member act with the spirit of Entrepreneur and Industrialist.
All members, including managements and employees

Under the concept of Zen-in Keiei, each member thinks byin general, of Sekisui Plastics Group always recognize thethemselves, proposes, and makes voluntary actions, not be

4 keywords, “Innovation,” “Speed,” “Teamwork” and “Re-forced by top-down instructions. Under the Sekisui Plastics

spect for Diversity” as starting point of achievement byGroup culture, we value brainstorm with other members formaking the most of strength and improving the weakness.

improving personality and strength of individuals.

Zen-in Keiei
Make the most of
personality and strengthof individuals

Recognizes Group’s
direction aseach member(power of individuals)

Share the aim of
the entire Group andhave the same goals
Respect diversity
and join forces
as a team(power of teams)

The “Zen-in Keiei” card
Sekisui Plastics Group has created the “Zenin Keiei” card that contains information on
the origin of the Group name “Sekisui,” management philosophy and code of conduct ofSekisui Plastics, and action guidelines for the“Zen-in Keiei,” all in a booklet-sized card. The
Group started to hand the card to all Group
members in April 2017.

39 CSR REPORT 2019

Leads to achieving
the Group’s goals
Set up and achievegoals as a member

People andcompany
grow together

Information Security System
Sekisui Plastics Group has formulated a Basic Policy for Information Security to ensure the security of information assets,
and appropriately manages and operate the assets.
In order to enhance the Group’s information security, we
set up an “IT Promotion Committee.” In accordance with the
Basic Policy, the committee enhances information security
systems, formulates rules, and prepares operational manuals, and also strives to improve knowledge for handling information assets by seminars and e-learning programs for all
Group members.

Purchasing/Procurement Policy
Our purchasing departments provide equal opportunity forsuppliers by widely opening the door to pursue better products and services based on transparency and fairness.
We deepened our partnership with our suppliers from
FY2017, actively visiting and auditing their factories and plants
with our quality assurance and factory purchasing departments.
We are conducting our purchasing activities based on
our purchasing policies, with the goals of expanding green
procurement and the sustained development of each company’s business.

Respect for Intellectual Property
Sekisui Plastics Group recognizes intellectual property as a criticalmanagement resource, and has thus formulated and conducts
activities in line with our Basic Policy on Intellectual Property.
We work to share information through collaboration between
the business departments and research and development departments, and strive to undertake activities that acquire andmaintain intellectual property beneficial to our business activities, respect the intellectual property rights of others, and lawfully exercise our intellectual property rights. In order to maintainthe motivation of inventors, we actively apply for invention commendations offered by external commendation systems.

CSR REPORT 201940

Environmental Performance Data

Environmental Accounting (Japan)
Environmental Conservation Costs
Category(Millions of yen)
FY2017

Major activities

Investment

FY2018Costs

Investment

Costs1) Costs in business area
(1) Pollution control

Control measures for air/water quality

71

114

51

116

(2) Global environment

Energy saving

226

25

150

11

(3) Recycling

Recycling, industrial waste treatment

7

226

5

231

Subtotal

304

365

207

358

2) Up-/down-steam

Product recycling

4

423

0

428

3) Management costs

Departmental costs associated with introducing
environment management system

0

114

0

167

4) R&D costs

R&D for environmental conservation products

0

47

0

47

5) Social Activity cost

Greening, social supports

0

2

6

3

6) Environmental damage
fixing cost

Nature restoration

0

0

0

0

Total

308

951

213

1,003

Environmental Conservation Effects(in terms of volume)
Details of effects (Unit)

FY2017

Economic Effects Related to Environmental
Conservation Measures(Millions of yen)
FY20181) Effects on costs in business area
(1) Electricity consumption (MWh)121,788

121,573(2) Crude oil consumption (kl)

17,24017,319(3) Total effluent (thousand m3)

3,459

3,246

(4) Amount of COD discharge (t)17172) Effects on Up-/down-steam costs
Amount of recycled polystyrene
foam (t)41 CSR REPORT 2019

398

309

Details of effects

FY2017FY20181) Cost reduction throughenergy-saving activities

128

45

2) Income from recycling

435

453

563

498

Total

Cost Effectiveness of Environmental Conservation Activities
FY2017FY2018

59.2%

49.7%

Investment figures are for construction completed during the period.
Expense figures do not include depreciation and amortization

Certiﬁcation list

As of July 31, 2019

ISO9001 Certification

ISO14001 Certification

Sekisui Plastics Co., Ltd. The 2nd Business Headquarters

Sekisui Plastics Co., Ltd. The 2nd Business Headquarters

Sekisui Plastics Toubu Co., Ltd. Main Plant

Sekisui Urethane Kako Co., Ltd.

Sekisui Plastics Kanto Co., Ltd. Main Plant

Sekisui Plastics Kanto Co., Ltd. Main Plant

Sekisui Plastics Kanto Co., Ltd. Miho Mfg. Department

Sekisui Plastics Kanto Co., Ltd. Miho Mfg. Department

Sekisui Plastics Gunma Co., Ltd.

Sekisui Plastics Gunma Co., Ltd.

Sekisui Plastics Saitama Co., Ltd.

Sekisui Plastics Shiga Co., Ltd.

Shonan Sekisui Kogyo Co., Ltd.

Sekisui Plastics Sakai Co., Ltd.

Sekisui Plastics Yamakyu Co., Ltd.

Sekisui Plastics Tenri Co., Ltd. Main Plant

Sekisui Plastics Ohmi Co., Ltd.

Sekisui Plastics Kyushu Co., Ltd. Oita Plant

Sekisui Plastics Shiga Co., Ltd.

Sekisui Plastics Taiwan Co., Ltd.

Sekisui Giken Co., Ltd. Kansai Plant

Tianjin Sekisui Plastics Co., Ltd.

Sekisui Giken Co., Ltd. Meihan Ogura Plant

Suzhou Sekisui Plastics Co., Ltd.

Sekisui Plastics Tenri Co., Ltd.

Sekisui Plastics (Shanghai) International Trading Co., Ltd.

Sekisui Plastics Yamaguchi Co., Ltd.

Sekisui Plastics (Shanghai) Precision Forming Co., Ltd.

Sekisui Plastics Shikoku Co., Ltd.

Proseat GmbH & Co. KG

Sekisui Plastics Kyushu Co., Ltd. Oita Plant and Buzen Plant

Proseat Schwarzheide GmbH

Sekisui Plastics Okinawa Co., Ltd.

Proseat SAS

Sekisui Plastics Taiwan Co., Ltd.

Proseat LLP

Tianjin Sekisui Plastics Co., Ltd.

Proseat Foam Manufacturing, s.l.

Suzhou Sekisui Plastics Co., Ltd.

Proseat Sp.zo.oSekisui Plastics (Shanghai) International Trading Co., Ltd.

Proseat Mladá Boleslav s.r.oSekisui Plastics (Shanghai) Precision Forming Co., Ltd.
P.T. Sekisui Plastics Indonesia
Sekisui Plastics (Thailand) Co., Ltd.
Sekisui Plastics Europe B.V.
Proseat GmbH & Co. KG Mörfelden-Walldorf Plant

Eco-Action 21 Certification
Sekisui Plastics Yamakyu Co., Ltd.

ISO/TS16949 Certification
Sekisui Plastics U.S.A., Inc.
Sekisui Plastics Mexico S.A. de C.V.
Proseat GmbH & Co. KG Espelkamp Plant
Proseat Schwarzheide GmbH
Proseat SAS
Proseat LLP
Proseat Foam Manufacturing, s.l.

ISO45001 Certification
Sekisui Plastics Tenri Co., Ltd.

ISO13485 Certification
Sekisui Plastics Co., Ltd. The 2nd Business Headquarters
Sekisui Plastics Kanto Co., Ltd. Miho Mfg. Department

Proseat Sp.zo.o
Proseat Mladá Boleslav s.r.oISO50001 Certification
Proseat GmbH & Co. KG Espelkamp Plant
Proseat Schwarzheide GmbH* Even in the case that there is no description, relevant departments withina site may be included.

CSR REPORT 201942

Consolidated Financial and Non-financial Data

Fiscal Year

2014*1

2015

2016

2018

2017

For the year:
Net sales(Millions of yen)

113,660

101,559

102,398

112,101

112,593

Operating income

3,930

5,118

5,401

5,284

4,784

Recurring income

4,180

4,862

5,049

5,154

4,776

2,530

3,147

3,404

3,448

3,129

Capital expenditures

5,908

4,424

5,836

7,762

7,368

Depreciation and amortization

3,999

3,937

3,591

4,087

4,517

Total assets

115,238

113,958

119,039

131,148

152,845

Total net assets

58,27558,80061,363

66,145

66,771

Interest-bearing debt

19,467

18,274

18,42519,09635,229Net income attributable to owners of the parent

At year-end:

Amounts per share*2:(Yen)

Net income

54.14

67.33

73.03

75.33

69.09

Net assets

1,231.37

1,243.30

1,322.14

1,444.28

1,439.43

18.00

24.00

24.00

27.00

30.00

Operating income ratio (%)

3.5

5.0

5.3

4.7

4.2

ROE (%)

4.6

5.4

5.7

5.5

4.8

ROA (%)

3.7

4.2

4.3

4.1

3.4

Equity ratio (%)

49.9

51.0

50.9

49.9

42.7

Total number of employees

1,859

1,895

2,011

2,101

3,881

Employees (Japan)

1,539

1,545

1,633

1,680

1,723

Employees (overseas)

320

350

378

421

2,158

Female employee ratio (%)(Figures don’t include those of
subsidiaries in Europe due tonon-disclosure of information)

—

16.9

18.1

18.9

20.7

Industrial accident

4

1

1

2

0

Equipment disaster

1

0

0

1

0

Cash dividends

Key ratios:*1 In order to synchronize accounting periods of overseas Group companies with the accounting period in Japan beginning in FY2014, the FY2014 results foroverseas Group companies are based on a 15-month accounting period.
*2 Sekisui Plastics Co., Ltd. consolidated its common share at the ratio of two shares to one, effective on October 1, 2016. On assumption that the share consolidation was implemented on the beginning of FY2012, the dividend per share shows as above.
(Note) Since FY2018, “Partial Amendments to Accounting Standard for Tax Effect Accounting” has been applied, and the same is applied to figures in FY2017
and before retroactively.

43 CSR REPORT 2019

Fiscal Year

2014

2015

2016

2018

2017

Number of production sites:
Japan

35

35

36

37

38

Overseas

6

8

10

10

22

175,018

171,086

180,126

188,244

188,275

Inputs (Japan):
Energy consumption (million MJ/year)
Unit consumption/output (MJ/t)

8,532

8,308

8,308

8,453

8,389

2,883

2,865

3,256

3,459

3,389

14.1

13.9

15.0

15.5

15.1

CO2 emissions (Production) (t/year)

102,445

99,963

104,367

109,128

109,047

Unit consumption/output (kg-CO2/t)

499

485

481

490

486

CO2 emissions (Transportation) (t/year)

6,333

6,506

7,177

7,854

8,304

Unit consumption/output (kg-CO2/t)

33.1

32.4

38.0

39.2

39.5

221

143

136

126

121

57.9

37.6

35.6

33.1

31.7

3

Water consumption (thousand m /year)
Unit consumption/output (m3/t)

Outputs (Japan):CO2 emissions (Office) (t/year)
2

Unit consumption/output (kg-CO2/m )3

Effluent (thousand m )

2,704

2,799

3,044

3,263

3,241

3

13.2

13.6

14.0

14.7

14.4

Amount of COD discharge (t)

13.3

11.7

14.1

16.6

17.0

Industrial waste (t)

7,665

7,278

8,138

8,961

8,780

Recycling rate (%)

98.5

98.8

98.5

98.5

97.2

14,083

16,67022,93629,15629,55012,858

13,571

14,041

16,165

14,526

66

70

118

138

156

6.0

5.7

7.2

7.7

7.7

CO2 emissions (Production) (t/year)

8,171

9,936

12,394

15,40016,585

Unit consumption/output (kg-CO2/t)

746

809

759

854

815

59

62

106

109

75

5.4

5.1

6.5

6.0

3.7

Amount of COD discharge (t)

7.3

7.6

10.4

11.0

7.5

Industrial waste (t)

287

425

410

476

706

Recycling rate (%)

76.9

82.6

78.3

73.9

81.0

Unit consumption/output (m /t)

Inputs (Overseas):
Energy consumption (million MJ/year)
Unit consumption/output (MJ/t)
3

Water consumption (thousand m /year)
3

Unit consumption/output (m /t)

Outputs (Overseas):

3

Effluent (thousand m )Unit consumption/output (m3/t)(Note 1) Sekisui Plastics Group identifies and manages the environmental impact arising from business activities in “unit consumption/output,” which expresses
the quantity of environmental loadings per unit in the volume of production.
(Note 2) As for the above numbers and amounts, those of Proseat Europe GmbH are excluded.

CSR REPORT 201944

Our Group Network (42 companies)(As of August 1, 2019)

Overseas Subsidiaries
Sekisui Plastics Korea Co., Ltd.

Sekisui Plastics Europe B.V.

Sekisui Plastics Co., Ltd.

Proseat Europe GmbH

Sekisui Plastics U.S.A., Inc.

Sekisui Plastics Mexico S.A. de C.V.
Suzhou Sekisui Plastics Co., Ltd.
Sekisui Plastics Taiwan Co., Ltd.

Sekisui Plastics (Thailand) Co., Ltd.
PT. Sekisui Plastics Indonesia

13 other companies

Domestic Subsidiaries
Sekisui Plastics
Okinawa Co., Ltd.
Sekisui Plastics Hokkaido Co., Ltd.

Sekisui Plastics Gunma Co., Ltd.
Sekisui Plastics Ohmi Co., Ltd.

Sekisui Plastics Tohoku Co., Ltd.
Sekisui Urethane Kako Co., Ltd.
Sekisui Plastics Kanto Co., Ltd.

Sekisui Plastics Shiga Co., Ltd.

Sekisui Plastics Toubu Co., Ltd.

Sekisui Giken Co., Ltd.

Sekisui Plastics Saitama Co., Ltd.

Sekisui Plastics Yamaguchi Co., Ltd.

Shonan Sekisui Kogyo Co., Ltd.

Sekisui Plastics Kyushu Co., Ltd.

Sekisui Plastics Yamakyu Co., Ltd.
Sekisui Plastics Chubu Co., Ltd.

Sekisui Plastics Shikoku Co., Ltd.

Sekisui Plastics Tenri Co., Ltd.
Sekisui Plastics Sakai Co., Ltd.

45 CSR REPORT 2019

Company Profile

Company nameSekisui Plastics Co., Ltd.

Founded

October 1, 1959

Paid-in capital¥16,533 million

Directors

President and Representative Director Chief Executive Officer

Masato Kashiwabara

Director Senior Managing Executive Officer

Tetsuya Ikegaki

Director Managing Executive Officer

Tetsuharu Hirota

Director Managing Executive Officer

Nobuyuki Tsujiwaki

Director Managing Executive Officer

Tetsuya Shiota

Director Managing Executive Officer

Katsumi Sasaki

Outside Director

Katsuya Amimoto

Outside Director

Hiroyuki Bamba

Outside Director

Morio Kubota

Corporate Auditor

Masayuki Moriya

Corporate Auditor

Koichi Miyashita

Outside Auditor

Yuichi Hamabe

Outside Auditor

Morinobu Nagahama

Outside Auditor

Keizo Kousaka

Number of
employees

427 (non-consolidated)
3,881 (consolidated)

Business Lines in Each Segment
Human
Life

Market/Application

Agricultural and marine productcontainers, food containers,
distribution materials, construction
materials, civil engineering materials

Major
Products

ESLEN Beads, ESLEN Sheet, ESLEN
Wood, INTERFOAM, other foamed/molded products

Editorial Policy
Sekisui Plastics Group engages in CSR activities with the aim of becoming a
corporate group trusted by stakeholders around the world based on the Sekisui
Plastics Group’s 100th Year Vision set forth in October 2009. In response to theincreasingly shared recognition among our stakeholders that it is important
to consider ESG (Environment, Society, Governance) as part of corporate
management, this Report is composed of chapters that categorize our activity
details under the framework of ESG.
Period Covered
Activities in this report were carried out in the period from FY2018 (April 1,2018 – March 31, 2019) until August 2018.

Industry

Market/Application

Automotive components, packaging
materials for transporting automotive
parts, industrial components, industrial
packaging, electric part materials,
medical and health care materials

Major
Products

PIOCELAN, LIGHTLON,NEOMICROLEN, CELPET,TECHPOLYMER, ST-gel, TECHEATER,
ELASTIL, FOAMAC, ST-LAYER, otherfoamed/molded products

Scope of Reporting
This report covers the 42 companies of Sekisui Plastics Group, including Sekisui
Plastics Co., Ltd. However, the environmental performance data do not include
Proseat Europe GmbH, which became a subsidiary in February 2019.
Referred Guidelines• Ministry of the Environment: Environment Report Guidelines (Y2012 Edition),and Environmental Accounting Guidelines (Y2005 Edition)• Japanese Standards Association: Guidance on Social Responsibility JISZ26000(ISO 26000)

Some of the data in this report differs from the data in last year’s report as a result of revisions implemented to reflect changes in calculation methods and business sites covered.

CSR REPORT 2019

46

ダミー

This product is made of FSC®-certified andother controlled material.

ダミー

Using plant-derived ink containing less than 1% of petroleumbased solvent minimizes the emission of volatile organic
compounds (VOCs) and cuts air pollution.

ダミー

This publication is printed by a certified Green Printing company
using printing materials that meet the green printing standard.

You can find the latest information of corporation,
shareholder and investor relations as well as detailsof our products and green activities on the Website
of Sekisui Plastics.
https://www.sekisuiplastics.com/

Sekisui Plastics Co., Ltd.
Contact: Investor and Public Relations Department
Corporate Strategic Headquarters
Address: 2-7-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo
163-0727, JapanTel:+81-3-3347-9711 Fax: +81-3-3344-2335

ダミー

Printed using a waterless printing method, without the developing solution or dampening water, it discharges no hazardous
wastewater. The amount of CO2 emissions from manufacturing
processes is visualized and offset through purchasing carbon
emissions rights equal to or surpassing the amount (of CO2
emissions) in the aim of preventing global warming. Waterlessprinting causes no water contamination and no CO2 emissions
during wastewater treatment. Furthermore, the efforts ofcarbon off-setting contribute to CO2 reduction.

CSR Report 2019
Easy-to-read universal design fonts are used in this report.

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