CSR Report

2018

Sekisui Plastics Group —Expanding Our Dreams for People and the EarthCSR Declaration
Local
Communities

Sekisui Plastics Group,

Group
Members

Expanding Our Dreams

SocialContribution
Customersfor People and the EarthWe, Sekisui Plastics Group, carry out social

Business
Partners
Shareholders

GlobalEnvironment

Practice ofManagement
Philosophy& Business
Activities

responsibility to stakeholders including
the global environment by practicing ourmanagement philosophy and contribute to
the sustainable development of the global
society.

Stakeholder

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

Responsibility of Sekisui Plastics Group

Customers

The Company not only supplies safe/reliable products but also bring comfort and convenience to the lives ofpeople 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 create a 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
the whole 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
with shareholders.

Business Partners

The Company builds trust in relationships with business partners through fair, honest business practices withsincerity as our motto.
Also, we aim at co-existence and co-prosperity as a better partner for the partners.
The Company actively endeavors to improve environment to protect our precious earth.

Global Environment In particular, we contribute to the low-carbon society and develop the recycling-based society with foam
plastics in the community and lowering carbon levels centering on foam plastics which are eco materials.

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. To communicate
our activities in a more readily understandable way, we organize this report into
sections corresponding to the core subjects in ISO 26000.
Period Covered
Activities in this report were carried out in the period from FY2017 (April 1, 2017
– March 31, 2018) until August 2018.

Scope of Reporting
This report covers the 33 companies of Sekisui Plastics Group, including Sekisui
Plastics Co., Ltd. However, environmental performance data are aggregated for
19 domestic Group companies with 37 production sites and the Central R&D
Laboratory unless otherwise specifically indicated.
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.

1 CSR REPORT 2018

Management Philosophy
We, Sekisui Plastics Group, practice “Zen-in Keiei”
based on mutual respect and trust.
We are always innovating in our pursuit 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 perfect harmony amongpeople, 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 the Environment,
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 healthand 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 anddisposal and strive to conserve the environment.
4. Consider the resource and energy savings in product development and production, andpromote 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.
CONTENTSCSR Declaration .......................................................................... 1
Sekisui Plastics Group’s 100th Year Vision .................................. 3
Mid-Term Management Plan....................................................... 4
A Message from the President.................................................... 5
Special Feature 1:
Sekisui Plastics’ CSR Activity Essence ........................................ 7
Special Feature 2:
Environmental Contribution through Business Activities .......... 13
CSR that Supports Corporate Value .........................................19

Initiatives for ISO26000—Social Responsibility
Section 1
Section 2
Section 3
Section 4
Section 5
Section 6

Organizational Governance ................................... 21
Human Rights/Labor Practices............................... 23
The Environment .................................................... 27
Fair Operating Practices ........................................ 31
Consumer Problems.............................................. 33
Community Involvement and Development .......... 35

Environmental Performance Data ............................................. 37
Consolidated Financial and Non-financial Data ....................... 39
CSR REPORT 2018

2

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 andManagement Philosophy

Zen-in Keiei on the basis of the founding

Founding Spirit

spirit and our new management philosophy.

Founding Spirit

New Management Philosophy

For happiness of people working for the company

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

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

Situation Goal

Scale Goal

Plastics Solution Company
Trusted by Customers around the World¥500 billion or more

Consolidated Sales

Corporate Domain

Sekisui Plastics Group Solutions
Materials

Technologies

Systems

Plastics based

Technology thatcreates added value

By systemizing, know-how
and providing information

3 CSR REPORT 2018

Sekisui Plastics Group Contributes to:
Industry

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

LifestyleTransformation

Contributing to the transformation of people’s lifestyles

GlobalEnvironment

Simultaneously aiming to improve the global environment

Mid-Term Management Plan
Make Innovations 60
Transforming the business model for our 60th anniversary“Restructuring the business portfolio and reforming the earnings structure in linewith the Group’s 100th Year Vision”

Make Innovations 60 — Position
Sekisui Plastics Group formulated the Sekisui Plastics

Make Innovations 60 Quantitative Targets

Group’s 100th Year Vision for further growth and development(Billions of yen)

toward the 100th anniversary of foundation in FY2059.

FY2016
results

FY2017
results

FY2018
plan

102.4

112.1

120.0

(Overseas sales)(Overseas sales ratio)(17.1)(16.7%)(19.4)(17.3%)(21.2)(17.7%)

Operating income(Operating income ratio)

5.4(5.3%)

5.3(4.7%)

6.8(5.7%)

Recurring income

5.1

5.2

6.6

Net income attributableto owners of the parent

3.4

3.4

4.4

5.7%

5.5%

6.6%

With seven years having passed since its formulation,
the vision has been partially revised to reflect changes in
the operating environment during that time, but with thecontinued goal of becoming “a plastics solution company
trusted by customers around the world.”
This year was the final fiscal year of the Company’s threeyear mid-term management plan, “Make Innovations
60,” launched in FY2016. As a year in which every effort
was made to fully address those issues that the Group has
worked in unison to overcome, particular emphasis wasplaced on promoting business portfolio transformation

Net SalesROE

and earnings structure reform as well as achieving targets.

Five High-Priority Policies
1. Business portfolio transformation• Increase the sales ratio in the Industry segment

4. Enhancement of competitiveness to build ahigh-profitability structure• Accelerate the global sales expansion• Adequately respond to raw material price trends• Enhance collective capabilities of the Group with M&A synergy effects• Wide-region logistic

2. Speed-up of the business model transformation• Build a brand strategy of the Group and centralize informationtransmissions• Enhance group-wide development of fabrication business• Redevelop solution-proposing sales activities and strengthen
multi-stage sales activities

3. Strengthening of development capabilities bytransforming development promotion system• Development of energy saving/productivity

5. Personnel portfolio transformation/humanresource development• Increase the number of sales/development personnel, improvetheir skills and streamline back-office sections• Human resource development by Sekisui Plastics-Juku• Share ideal types of Group personnel and nurture next-generation
leaders in Japan and overseas• Transfer theme of New Business Application Development Center• Utilize domestic and foreign exhibitions• Strengthen information gathering for strategic merchandise
development

CSR REPORT 2018

4

A Message
from the President

In 2009, Sekisui Plastics Group formulated the “Sekisui

We have defined the responsibilities that we hold to

Plastics Group’s 100th Year Vision”, as the guidepost foreach stakeholder, including the global environment,

further growth and development in the next half century.

customers, Group members and shareholders, and areThis Vision, which is shared among all Group members,

engaged in initiatives that fulfill these responsibilities

defines our corporate goal as becoming “a plastics solu-

by contributing to society through the promotion of ourtion company trusted by customers around the world,”

business activities.

and raises our CSR Declaration as “Sekisui Plastics Group,
Expanding our dreams for people and the earth.”With regard to environmental contributions, we havepoured our energies into “Green Wave” (planting trees

We feel that what is most important is, based on thison the International Day for Biological Diversity, etc.)

Vision, to put our management philosophy into prac-

which have been broadly called for by Japan’s Ministry

tice and utilize our strengths as a “plastics solutionof the Environment and other organizations, as Group-company,” while at the same time fulfilling our social

wide initiatives around the world. We have been part

responsibility to stakeholders, including the globalof these activities since 2012, and in recognition of ourenvironment, and contributing to the sustainable devel-

activities thus far, we were designated as a Green Wave

opment of the global society.

official partner by the Japan Committee for United

As part of our CSR activities, we have established the

Nations Development Business in March 2018.

three pillars of “manufacture, considering the environ-

Moreover, this year the Western District of the Satoyama

ment, safety and quality,” “sincere management activities

Conservation Activities, in which Group Members partici-

emphasizing compliance” and “practices of Zen-in Keiei.”

pate through the Sekisui Plastics Fund in two locations in

5 CSR REPORT 2018

We, Sekisui Plastics Group, carry out social responsibility
to stakeholders, including the global environment,
and contribute to the sustainable development of the society,by putting our management philosophy into practice.

East and West Japan that entered its sixth year. Likewise,

As a way of creating a worry-free work environment,“Green Curtain” advocated by the Ministry of thewe offer child-raising support that takes work-life-balance

Environment that have also taken root as Group-wide ini-

into account and engage in initiatives that consider

tiatives in the form of photo contests, for example.

the physical and mental healthcare of our employees.

Sekisui Plastics Group also participated in “The Call

In terms of diversity, we are promoting initiatives thatfor a Solution to the Problem of Ocean Plastic Waste”

support the participation of women, employ those withadvocated by the Japan Plastics Industry Federation as

disabilities and expand global employment. We feel thata way to cooperate in solving the international problem

all of these initiatives are based on our founding spirit ofof plastic waste in the ocean.

“for the happiness of people working for the company.”

In terms of business, in working towards the corpo-

The motive power for the steady progress of our ini-rate goal of becoming “a plastics solution company

tiatives targeting the corporate goals in the 100th Yeartrusted by customers around the world” as raised in

Vision is, without question, the Zen-in Keiei culture of

Sekisui Plastics Group’s 100th Year Vision, we have been

Sekisui Plastics Group. We feel that it is this daily in-promoting the “Make Innovations 60” mid-term man-dependent thinking of each Group member and theagement plan. These efforts have served as a way ofaccumulation of their activities itself that enables us toworking to cultivate new customers and pioneer new

grow the company and contribute to society.

markets in the two fields of Industry and Human Life

Despite this steady progress, we are still only part way

in order to meet the true needs of our customers. As ato achieving our corporate goals. As such, we will con-result, our strategic merchandise, including PIOCELAN

tinue to engage in promoting these activities as a single,

and TECHPOLYMER, has continued to grow steadily.

unified Group. We once again thank all of our stakehold-In order to fully promote our CSR activities throughers for their continued support and encouragement.

these businesses, the capability of the Group employees is essential. Sekisui Plastics Group has defined theAugust 2018

image of the employees sought by the Group andsummarized this image in the “Zen-in Keiei” card sothat our individual employees can fully utilize their specific capabilities. The card shares this image among all

PresidentGroup employees together with the origin of the company name, the management philosophy and the codeof conduct as Sekisui Plastics Group’s culture (corporate culture).

CSR REPORT 20186

Special
Feature 1

Sekisui Plastics’ CSR Activity Essence (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).
For one of these, manufacturing that considers the environment, safety and quality, we are promoting
efforts that take safety into consideration from product development to use and disposal. These include the
manufacture of ST-gel, which is used as a “skin contact” component indispensable for biomedical electrodesin the medical/health care fields. Because of this, ST-gel’s development was conducted with a focus onproviding a product with excellent safety. We also have in place a thorough management structure andsystem for production process and quality assurance.

Simultaneously Satisfying Weak and Firm
Adhesion Requirements, Developing
Materials That Are Kind to Skinthe skin. Also, since the gel has moisture absorbing
and releasing properties, even if the patient sweats, themoisture from the sweat is diffused into the gel and does
not make the skin clammy.

ST-gel is a material that can hold water and, optionally,

Boasting a high level of safety, which is indispensable

solvents, moisturizers, electrolytes and other components

as a product that comes into contact with areas on thein its hydrophilic resin matrix. By fully utilizing foaming

human body, such as the chest, abdomen and shoulders,technology to control reactivity, it has become possible togel is also characterized by the way such products enablereduce to an extremely low level the amount of monomer

factors, including the hardness and thickness of the gelremaining in the gel that can cause a rash and damage

as well as the strength of adhesion, to be controlled in

7 CSR REPORT 2018

1

Manufacture,
considering the environment,
safety and quality

2

Sincere management activities,emphasizing compliance3

Practices of Zen-in Keieiaccordance with customer requests. Many types of gel

prevention of the reduced mobility condition known as

have been adopted for use with the electrodes in medical

locomotive syndrome, and self-medication, such as self-

electrocardiograms and the adhesive electrode pads in low-

health management. To respond to demands of this type,

frequency therapeutic devices for use in health care. Also,

we developed a technology that enables us to combine

the demand for cosmetic face packs is expanding, and as adifferent properties, such as both weak and firm adhesion

supplier to manufacturers of cosmetics and other products

as well as gel surface hardness and softness, in a single gelon an OEM basis, we undertake integrated management,material and launched LN Grade in 2017.

from manufacture to shipment.

Safe and kind to the skin, as a product for which

In recent years, there have also been increasing needs

consideration has been given to the environment and to

for ST-gel in the areas of nursing care, such as in thesafety, ST-gel is expected to contribute even in new fields.

Interview

Development of Products That Assist Advances in
Medical/Health Care Fields
As St-gel is a material that comes into

facilities are different for eachdirect contact with the skin, we consider

grade, the person in charge of“manufacturing with consideration for the

manufacturing needs to deal withenvironment, safety and quality” to be

multiple facilities. In consigning

particularly essential with this product.

the production of ST-gel to new

To be able to respond to the burgeoning

process licensees, we also focused

global demand of recent years, we haveon implementing reliable and seamlessassigned overseas process licensees andhandovers.

undertaken the starting-up of facilities. In

We believe that we will continue toselecting these licensees, special heed wascontribute to advances in the medical/

given to the meeting of safety and quality

health care fields through sales of ST-gel,standards. As there are various grades

demand for which is expected to expand inin the case of ST-gel and the processing

the medical/health care and beauty fields.

Toshihiro Suzuki
Chief of Production Group, Miho
Sekisui Plastics Kanto Co., Ltd.

CSR REPORT 20188

Special
Feature 1

Sekisui Plastics’ CSR Activity Essence (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 that it is a rule with which we must comply tofulfill the social responsibility that we have to all of our stakeholders.
From our first advances into overseas markets in the 1970s, we have been making active progress inglobalization. The number of business bases has increased in recent years, and we believe that sincere
management activities emphasizing compliance are needed at each. Having produced the Global
Management Handbook, we are working to make sure that all bases remain thoroughly aware of its content.

Global Management Handbook

are currently 13 in nine countries as of 2018. Recognizingthat what is regarded as common sense in Japan can on

The Global Management Handbook serves as a guide foroccasion be seen as just the opposite outside Japan,

realizing the Sekisui Plastics Group’s goal of remaining a

it was necessary to urgently clarify and define what

plastics solution company trusted by customers aroundshould be done and what should not be done to behave

the world through its business activities.

correctly in a given situation.

The reason behind producing the handbook lies in

The Handbook first specifies how the presidents of

the Group’s ongoing global expansion in Northeast

global Group companies, who take command at theAsia, Southeast Asia, the Americas and Europe, and thefrontline, should act locally in terms of areas such asincrease in the number of business bases, of which there

governance, compliance, information security and labor

9 CSR REPORT 2018

1

Manufacture,
considering the environment,
safety and quality

2

Sincere management activities,emphasizing compliance3

Practices of Zen-in Keiei

management. We would like the presidents of Group

promoting management by means of that mechanism,companies to understand the Handbook’s content andwe will build a sustainable system for the future. Withbuild governance structures that take into considerationthese initiatives, we would like to aim for further

the situation and environment prevailing in each country

advances and truly become a plastics solution company

or region. Going forward, we are also considering

trusted by customers around the world.

expanding the Handbook’s target readership andenhancing its content.
By putting the Handbook into practice, we will rebuild
the organization of the global Group companies andrethink how business should be carried out and, byInterview

Making the Global Management Book
the Global Management Bible
As the overseas development of the Sekisui

Handbookhelps

managers

Plastics Group gains pace, it is becomingof global Group companies

more important for us to properly manage

make management decisions

risks and respond to individual issues with“efficiently and with the correcta sense of urgency, so that we can gain theattitude.” In the increasingly

trust of our stakeholders.

severe global market, the Handbook

On the basis of information and advice

serves as a bible to respond to theof the audit corporation, the results of

expectations of stakeholders in a level-

past internal audits, the current situation atheaded manner that balances offense andKoichi Ouraand the opinions of each group company,

defense, and I think that it will be useful forand by compiling management points

conducting sincere management activities

Finance & Accounting Department
Administration Headquarters

and information, the Global Management

emphasizing compliance.

CSR REPORT 201810

Special
Feature 1

Sekisui Plastics’ CSR Activity Essence (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.
Today, at a time when the Sekisui Plastics Group’s business activities are extending across the globe, we
believe that the fostering of human resources, regardless of their nationalities, capable of excelling on theworld stage is necessary for the practice of Zen-in Keiei and have developed and are promoting a Global
Training System.

Global Training System

acquiring the languages necessary for their work assignments.
Participants can choose their method of attendance, for

There are two global training courses currently conductedinstance by school lessons, private tutoring, and e-learning,by the Sekisui Plastics Group: local language training, which

depending on their circumstances. Since the start of thisis geared toward employees being transferred overseas,

system, an increasing number of people have mastered theand a global talent system special training course, which

language of a country into which the Company has expanded.

specializes in participants’ on-site learning of, for example,

Through training, not only by receiving language tuition, but

sales development and molding and processing.

also by deepening the understanding of local nationalities,

Of these, local language training is a training systemcultures, and customs, exchanges with local employees arethat supports all employees being transferred overseas inincreasing and also having the effect of making business

11 CSR REPORT 2018

1

Manufacture,
considering the environment,
safety and quality

2

Sincere management activities,emphasizing complianceactivities smoother.

3

Practices of Zen-in Keiei

development, including production management, cost

In contrast, the global talent system special training course

management, global management and factory management.

is characterized by mainly on-site learning with the aim ofSome of the participants who completed the global talent

fostering the human resources capable of excelling on the world

system special training course that began in fiscal 2015stage in the years to come. In 2016, we dispatched personnel towere sent to overseas offices, such as in the United States

Sekisui Plastic Taiwan Co., Ltd. and conducted a molding

and Thailand, where they are actually making use of theirand processing training course commenced the year before.

experience of on-site learning. In the years to come, we

Not merely the mastering of molding technology or

will continue to promote global training so that we can put

the obtaining of language tuition, this gaining of practical

Zen-in Keiei into practice even in the global development

experience also serves as a gateway to comprehensive careerof the Sekisui Plastics Group, which is continuing to expand.

Interview

Having Put into Practice All Aspects of Operations on the Factory Floor,
I Learned Frontline Management Methods in the United States
Amid the rapid advance of globalization inof products, through practicing. As a shift

recent years, I thought that I too was in needleader, in the first half of the training courseof awareness reform to put into practice work

I received training on global work-sitestyles that respect diversity and registered for

management methods. In the second half, at

the Global Talent System.

the newly constructed SPUS plant in Ohio, I was

My trainee period began with short training

involved in putting in place the same safety, quality

courses held at various business sites in Japan, where

and technology management methods as theI actually experienced the differences between

Tennessee plant. I also participated in the launch of a

Izuru Shimabukuro

product items, production methods and facilities.

new automobile component materials project while

Next, at the SPUS plant in Tennessee to which

conducting problem extraction and improvement

Sekisui Plastics(Thailand) Co.,LtdI was sent, I had an opportunity to learn on-

activities at the production site. From now on, I

site all aspects of frontline factory operations,hope to make use of this experience in Thailand

from exchanging the molds to the packaging

and contribute to the Group’s globalization.

CSR REPORT 201812

Special
Feature 2

Environmental Contribution
through Business Activities
Sekisui Plastics Group aspires to be “a plastics solution company trusted by customers
around the world” by proposing the Group’s products and systems, including eco-friendlyy
products, as solutions in order to bring comfort and convenience to the lives of people.
peopleESLEN Block
Block for EPS construction method

Super Soilen System
Lightweight greening method

AQUAROAD
Underground stormwater tankSpecialFeatureCMT Molded Products
Bathtub pans

SpecialFeature

CELEPET

Heat-resistant PS Sheet

ESLEN Sheet

Fruit Tray

ST-LAYER

Microwave/oven safe food container

Microwave safe food containers

Food trays

Cushioning material for protection

CFRP/foam core composite

13 CSR REPORT 2018

ESLEN Fish Box

ELASTIL

ST-gelSMC Parts

EPSREM

Fresh fish transport container

Flexibility/high bounce foam

Hydrogel for medical use

Medical equipment cover

Cushioning material for LCD panels

SpecialFeatureTECHPOLYMER
Polymer microspheres for paint/coating

TECHTELAS
LED lighting equipment

TECHEATER (panel type)
PTC ceramic heaters

PIOCELAN
Packaging material fortransporting automobile parts

SpecialFeatureEPS SlopeST-gelFOAMAC

Resin Molding

PIOCELAN

Leveling ramp

Hydrogel for facial masks

Hull core for yachts/fishing vessels

Truck roof fairing

Automobile component

CSR REPORT 201814

Special
Feature 2

Environmental Contribution
through Business Activities
Functional food containers that possess wide-ranging
01 temperature adaptability, from freezer to oven
CASE

“CELPET”
Amid changes in the forms that meals take, brought about by thetrend toward meal individualization and the increasing advancesof women in society, the purchase, bringing back and eating at
home of pre-cooked frozen meals that save the trouble of cooking
in the kitchen is becoming more widespread. In addressing thattrend, the types and numbers of frozen foods that can be easily
eaten simply by heating them in a microwave oven or oven are also
increasing. Using materials featuring excellent heat resistance andthermal insulation properties, we developed CELPET functional
food containers. Adding variety to menus from using the oven,these containers combine ease of handling, in that they can beheld after heating as due to their thermal insulation properties they
do not feel hot, and heat retention that enables the food to beeaten while still hot. As a material for food containers that are usedin microwave ovens and ovens, it is expected that there will be
wide-ranging applications for CELPET in the years to come.

Product Features
Comprising fine bubbles in its structure, CELPET possesses high thermal
insulation and heat retention properties as that structure is composed of afoam layer through which heat is not easily conducted. Having undergonea special molding process, CELPET also displays wide adaptability totemperature (resistance to cold and heat), from minus 20°C (68°F) whichis in the frozen state to 220°C (428°F) which is the temperature inside theoven. Plastics are normally highly susceptible to damage after even theslightest of impacts under cryogenic temperatures, but there is little toworry about with CELPET. Also, in terms of the environment, as CELPET
is made from a foamed C-PET (polyethylene terephthalate) resin, whencomparing weights in the same shapes, CELPET can be made lighter
than solid PET containers and can thus be said to be a resource-saving
material. Among other applications, in the case of the airline in-flight meal
containers for which CELPET is used, the reduction of aviation fuel due toweight savings ultimately has the effect of reducing CO2 emissions.

15 CSR REPORT 2018

C-PET

CELPET

Container surface temperatures 10 seconds after heating for
30 minutes in an oven at 180 degrees C
Temperature of food inside container approximately 80
degrees C (actual measured value from Company test)

Market Needs
In the eating at home market, variations of take-out products are
increasing due to changes in the form meals at home are taking, anddiversification of cooking methods is also desired. One demand that has
grown in prominence is that for containers for use in oven baking.
If there are containers that can accommodate not only conventional
microwave cooking, but various other cooking methods, this will lead toincreased variety in the everyday dishes cooked on-site in supermarkets.
There is also an increase in products cooked on the other spot whichis in outside supermarket, as these reduce wasted food at stores andcompensate for worker shortages. This means that a wider variety ofmethods will be chosen for cooking at specialty factories. For this reason,
there will be ever greater needs for CELPET.
In addition, there is an increasing need for CELPET in automatedproduction lines for baked sweets, and for other uses, to combat theworker shortages.

Excellent thermal insulation and rigidity,
02 uses include bathtub flooring
CASE“CMT Molded Products”
Possessing excellent thermal insulation properties, CMT(Composite Molding Technology) foam products also display otherfeatures, such as high rigidity and design performance, and arelight in weight. The structural components of houses, such as thefloors of bathrooms, are naturally required to have high rigidity
and to not break, but also to combine thermal insulation withease of installation. We developed CMT molded products forbathtub flooring (bathtub pans) by leveraging our knowledge
about foam, especially with regard to the composite technologies
that combine multiple materials to enhance their properties. As aresult, compared with conventional FRP bathtub pans, we realizeda substantial saving in weight and improved insulation. Adopted
for the next unit baths to be launched by Sekisui Chemical Group’s
Sekisui Home Techno Co., Ltd., demand for CMT molded products
is expected to increase in the years ahead.

Product Features
Composite molded articles that combine the Company’s EPS (Expanded
polystyrene) and PSP (Foamed polystyrene sheet), CMT molded products are made from a foam that combines the properties of each. By
combining both materials, we were able to combine their characteristics,
such as the heat resistance, light weight and shock absorption qualities
of EPS with the design performance, waterproofness and strength of PSP.
As a result, when compared with conventional FRP bathtub pans, theCMT bathtub adopted by Sekisui Home Techno Co., Ltd. approximately
doubles the insulation performance of the floor as a whole, greatly
improving its heat retention. In addition, its weight can be reduced by
up to around 25%, making it possible to improve the workability at thework site and reduce the burden on workers. The CMT bathtub also
improves sound insulation when used on upper floors, thereby realizing
performance that is not found with conventional FRP bathtub pans.

Market Needs
In recent years, there have been calls for improvements in the heatretention function of bathrooms to combat the heat shock problem that
occurs in bathrooms and to which the elderly are mostly susceptible.
With regard to the heat retention function of unit baths in particular, heatretention has become a necessity not only for the bathtub but also for thewhole bathroom.
Apart from this, reducing the weight of the construction materials andsimplicity of construction are required, as the shortage of workers andaging craftsmen have become issues in home construction. Combining
the characteristics of EPS and PSP, the use of CMT molded products forbathroom components, such as the floors, ceilings, walls and bath covers,
provides a solution to these issues.
In the years to come, we will advance the development of CMT molded
products not only in bathroom-related fields but also in the furniture andmiscellaneous goods fields, and promote them so that they can contributeto society as a lightweight structure material.

Surface film
layer
Foam sheet
layer (PSP)Expanded bead mold (EPS)CSR REPORT 201816

Special
Feature 2

Environmental Contribution
through Business Activities
Applying our polymer hybrid technology to
03 automotive materials
CASE“PIOCELAN”
Produced by combining polystyrene and polyolefin, PIOCELAN isa hybridized resin foam that displays the qualities of both, such as
rigidity and shock absorption. The dimensional difference between
the mold and product during the molding process is small, as is thedimensional change due to the change in temperature, which aremajor advantages in fields requiring precision.
Leveraging the excellent, all-dimensional stability of PIOCELAN,
we established the technology for integrally molding PIOCELAN
with the wires necessary for fixing a component to a car body,technology that was adopted for the passenger seat components ofa new model from a major automobile manufacturer.
Automobile weight reductions are being demanded to improvefuel efficiency and for the switch to electric vehicles (EVs). Whilesatisfying the performance required for automobile components, wewill be making full use of PIOCELAN’s characteristics as a foam and,since this product is capable of contributing to weight reduction,
aiming to extend its applications in the years to come.

Product Features

Market Needs

This component was produced in a one-step process of collectively
molding PIOCELAN (polystyrene/polyolefin hybrid resin foam) and wires.
Conventional components of urethane and wire fasteners were assembled by hand, but as a result of successfully molding the component ina one-step process, we were able to drastically reduce the number ofassembly operations.
Because we were able to reduce the amount of urethane used forthe seat, this has also lead to a reduction in the weight of the car body.
As a result, we are achieving cost savings by simplifying manufacturing
processes while at the same time improving fuel efficiency and lessening
environmental burden by reducing weight. The shock absorption qualities
of PIOCELAN means greater safety in the event of an accident.

The automobile industry is constantly being called upon to improve fuelefficiency to meet environmental standards and, as a measure to that end,
has been focusing on reducing the weight of car bodies.
Particularly with EVs, which is expected to rapidly gain in popularity in theyears to come, reducing the weight of components other than batteries will
be unavoidable to extend the cruising range, as the battery accounts for amajor proportion of an EV’s structural weight.
Also constantly being demanded are cost reductions by reducing thenumber of components and assembly operations. Under such circumstances,
we will work toward the wide adoption of PIOCELAN wire insert components
in other types of vehicle, as the material helps simultaneously achieve
improvements in fuel efficiency and reductions in environmental burden andcosts by means of weight savings and reduced manufacturing processes.

Floor Spacer

Tire Spacer
Door Pad

Battery Insulation(Electric Vehicle/Hybrid Vehicle)

Seat Core

Tool Box

Bumper Core

Tibia Pad
(Impact absorption material)

17 CSR REPORT 2018

Headrest CoreHigh recovery and soft particles,
04 expanding applications include use as a matting agent
CASE“TECHPOLYMER”
A resin material with spherical particles, TECHPOLYMER forms
fine convexities and concavities on the surface of the paint whenapplied to films or other surfaces, its fine particles being able toserve the function of diffusing the light.
In addition to being able to suppress the gloss of the film fora matte effect by diffusing the light, as can be expected, light
can be delivered in a broader range by diffusing straight light. Byleveraging its light diffusing function, TECHPOLYMER is widely usedin the optical field, such as for liquid crystals and low reflectivity
films, in the paint field for matt finish paints, and in the cosmetics
field for foundations.
In recent years, there has also been an increasing need to focus
on tactile feel and scratch resistance in addition to the matting
function, and we are also developing developing highly recovery
TECHPOLYMER with these functions added.

Product Features

Market Needs

Polymer fine particles are widely used in a wide range of fields as plastic
additives that improve a variety of functions. By freely using our proprietarysuspension polymerization technology, the fine spherical polymer particles
formed with the Company’s TECHPOLYMER can be widely adjusted in arange of average particle diameter of between 0.1 to 200 microns.
TECHPOLYMER is also based on our high particle control technology.
Enabling us to make adjustments in particle size distribution, in therefractive index, solvent and heat resistance as well as in hydrophilicity/hydrophobicity, depending on the application, we are also able to put
together a lineup of fine particles that serve a variety of functions. These
include porous spherical particles and hollow structures, fine particles thatare not spherical, such as biconvex lens shapes and surface irregularities,
as well as fine particles adjusted for hardness.

TECHPOLYMER is used as an additive for matt paint because of its
excellent light diffusion performance. The minute irregularities generated
in the applied coating layer affect the skin touch (tactile sensation) of
the component. Making both a matt finish and a desired feel possible,
particularly soft TECHPOLYMER material has been adopted for automobileinteriors (such as dashboards), synthetic leather and floor materials, and its
needs are expanding.
In addition, for a paint maker-developed matting additive that canbe added to paint to self-restore surface scratches, we developed fineparticles that combine softness and high resilience and are responding
quickly to market needs.

Incident light
Diffused light

TECHPOLYMER

Coating
Base material

CSR REPORT 201818

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 businessactivities that put our management philosophy into practice, so that we can fulfill our responsibility to theinternational community.

Contributing to the Realization of a Sustainable Society
The

“2030

Agendafor

Sustainable

Development”

establishing international sustainable development targets
for the years between 2016 and 2030 was adopted at a
UN Summit in 2015. The Agenda contains 17 Sustainable
Development Goals (SDGs) that are applied universallyto all countries, including developed countries, and focus
on combating climate change, ensuring sustainableconsumption and production, and resolving poverty andinequalities. With this international focus in mind, the Sekisui
Plastics Group is committed to clarifying our priority issues.

Identifying Materiality Issues
The Sekisui Plastics Group will identify issues that should be given priority consideration in our CSR efforts (materiality issues)
based on the following three step process, which will also be used in the determination of future priority issues.

STEP
STEP

STEP
STEP
STE
P

STEP

STEP
STEP
STE
P

1

2

3

Establishing issues foranalysis and evaluation

Identifying and analyzing
the expectations ofstakeholders

Determining the level ofimportance to
the Sekisui Plastics Group

Keeping in mind the new management philosophy outlined in the
Sekisui Plastics Group’s 100th Year
Vision, the goals for the company
when it reaches its 100th anniversary,and the operating domain, as well as
the various report guidelines from
the Ministry of the Environment,
the Sekisui Plastics Group will identify CSR issues of high priority and,based on the input from a panel ofrepresentatives from each department in the Company, select items
for identifying materiality issues.

Step 2 involves determining the howeach of the items selected in Step 1
impact the Group’s corporate value
over the medium to long term. We
will analyze the scope of each item’s
impact through extensive dialog
with the Company’s stakeholders
and outside experts.

Based on an analysis of data collectedin Step 2, we compile a materiality
scatter map identifying the relationship between “the degree of impact
on the Group’s corporate value overthe medium to long term” and “thedegree to which the Group impacts
its stakeholders.” Items plotted in the“range of the highest materiality” areselected as those requiring priority
consideration (i.e., materiality issues).

19 CSR REPORT 2018

STEP

The Sekisui Plastics Group has developed a business withindividual targets, and we note that there is quite a bit ofdeep ties to the environment. Ever since our founding, ouroverlap with our efforts to contribute to society through ouractivities, centered on foamed plastics, have included abusiness activities. In the following section we will outline thefocus on recycling and the conservation of resources. The

CSR and business activities of the Sekisui Plastics Group that

Sustainable Development Goals (SDGs) aim to address acontribute to achievement of the various SDGs.

wide range of issues, and include 17 universal goals and 169
SDGs for which we can make a contribution

Environment

Goal 14.

Conserve and sustainably use the oceans,seas and marine resources for sustainable
development

Initiatives at the Sekisui Plastics Group
Signatory to the Declaration of the Global
Plastics Associations for Solutions on
Marine Litter

P28

Green Curtain Activity & Green Wave Activity

P30

Protect, restore and promote sustainable use ofterrestrial ecosystems, sustainably manage forests, Column Green Wave Activities
combat desertification, and halt and reverse land
Mirai Fund Ibaraki “Sekisui Plastics Fund”
degradation and halt biodiversity loss
Mirai Fund Ohmi “Sekisui Plastics Fund”

P30

Goal 3.

Ensure healthy lives and promote well-being
for all at all ages

Physical and Mental Healthcare

P24

Human Resource Development at
Production Sites

P26

Goal 4.

Ensure inclusive and equitable quality
education and promote lifelong learning
opportunities for all

Cooperation with Kyoto Manufacturing
Workshop

P34

Goal 5.

Achieve gender equality and empower all
women and girls

Column Safety Training Center in Thailand

P26

Special Feature 1: Sekisui Plastics’ CSR
Activity Essence (3) “Practice of Zen-in Keiei”

P11-12

Goal 8.

Promote sustained, inclusive and sustainableeconomic growth, full and productive
employment and decent work for all

Goal 15.

SocialGoal 9.

Goal 12.

Build resilient infrastructure, promote inclusive
and sustainable industrialization and foster
innovation

Ensure sustainable consumption andproduction patterns

P36
P36

Culture Vision “Zen-in Keiei”

P21

Column Support for Parents

P23

Special Feature 1: Sekisui Plastics’ CSR
Activity Essence (1) Manufacturing That
Considers the Environment, Safety andQuality

P7-8Special Feature 2: Environmental
Contribution through Business Activities

P13-18Zero Emission Activity

P30

Initiative to Quality Assurance

P33

Recycling

P34• CSR Declaration ..................................................................... P1-2
• Sekisui Plastics Group’s 100th Year Vision .............................. P3

Governance• Corporate Governance .......................................................... P22• CSR Promotion ........................................................................ P22• Promoting Compliance .......................................................... P31

CSR REPORT 201820

Initiatives for ISO26000—Social Responsibility
Section 1

Organizational GovernanceSekisui Plastics Group, on the basis of its management philosophy, is proactivein the prompt and pertinent information disclosure while ensuring managementtransparency, validity, and compliance in management.

Culture Vision “Zen-in Keiei”
For the growth of both company and its people
4 keywords for the practice of Zen-in Keiei

improving personality and strength of individuals.
Furthermore, for understanding and realizing the corporate

Innovation

Speed

Teamwork

Respect for Diversity

goal of the entire Group we have been making each 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” andforced by top-down instructions. Under the Sekisui Plastics“Respect for Diversity” as starting point of achievement byGroup culture, we value brainstorm with other members formaking the most of strength and improving the weakness.

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

UnderstandGroup’s direction
as a member(power of individuals)

Share thoughts andhave the same aim
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.

21 CSR REPORT 2018

It leads to achieving
the Group’s goals
Set and achievea goal as a member

People andcompany
grow together

Corporate Governancetogovernance. These Guidelines form the starting point for the

stakeholders and aspires to be “a plastics solution company

effective functioning of corporate governance, to maintain

trusted by customers around the world.”

management transparency and soundness, and establish a

Sekisui

Plastics

carriesoutsocialresponsibility

management structure that is able to address changes in theWith Japan’s Corporate Governance Code having taken

operating environment.

effect from June 2015 for companies listed on the Tokyo

The guidelines are available in Japanese only on our

Stock Exchange, Sekisui Plastics Group has formulated

website:its own “Corporate Governance Guidelines” outlining

http://www.sekisuiplastics.co.jp/ir/governance/

the Group’s policies and activities regarding corporate

Corporate Governance Framework
Shareholders’ meeting
Appoint/dismiss

Appoint/dismiss
Board of Directors 9 Directors

Operational audit

Board of Corporate Auditors 5 Auditors(2 internal and 3 outside)*(6 internal and 3 outside)*
Assign and supervise

Financial audit

President

Independent Auditors

Deliberate on
substantive matters

Appoint/
dismiss

Financial audit

Board of Managing Directors (discuss on important matters)
Appoint/
dismiss(6 concurrently Directors)

CSR Control Committee• Compliance Committee, etc.

Audit Department• Responsible Care Internal Audit Committee
Internal audit

Cooperation

13 Executive Officers

Othercommittees
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

CSR Promotion Structure

the CSR Vision as well as Sekisui Plastics Group’s 100th

Social Contribution Committee

Year Vision. According to the CSR Vision, we set up the(Chair: Responsible Director)

CSR Control Committee, whose chair is the president, andSafety Committee

actively promote the CSR.

(Chair: Responsible Director)

CSR Control Committee(Chair: President)

Quality Committee(Chair: Responsible Director)

Responsible Care Internal Audit Committee(Chair: Responsible Director)

Secretariat(CSR Promotion & Public
Relations Department)

Compliance Committee(Chair: Responsible Director)

CSR REPORT 201822

Initiatives for ISO26000—Social Responsibility
Section 2

Human Rights/Labor Practices
Sekisui Plastics Group respects fundamental human rights and takes into consideration thatno 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.
In March 2018, Sekisui Plastics published the second

Group’s employees.
To prevent sexual harassment, power harassment, andedition 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

several training programs as part of employee education.

order to expand the understanding of the topics covered

In addition, we have set up the SKG (Sekisui Kasei Group)in the second edition, we are implementing e-learning

Clean Network, an internal whistleblowing system whereby

programs for all group employees, and with the goal ofa staff member can directly report human rights abuses to an

fostering an awareness of the importance of compliance wecontinue to remind our employees that the issues of humanrights and harassment are never far away.

ColumnSupport for Parents

Sekisui Plastics Co., Ltd. The 2nd Business Headquarters Planning Department Sae Hosoe
Sekisui Urethane Kako Co.,Ltd. Administration Department Tamotsu Suzuki

With two children born in consecutive years, we have made use of the company’s childcare leavesystem for two years in a row. Thanks to the flex time system, we have been able after giving birth
to align the time we arrive at work and leave work to match that of the nursery school, allowing
us to maintain a full-time work schedule without any undue difficulty. Our children are still very
young and there are times that they cannot go to the nursery school due to a fever or some otherreason, and in those cases we have been able to use the company’s system for taking leave tocare for a child. This is separate from the usual paid leave and has proven very helpful.
The system makes it much easier to raise a child and contributes to an environment where
we as parents can put our full energy into both raising their child and performing their duties atwork. It appears there are also a number of male employees taking full advantage of the system
to attend school events or to care for their children.
While our co-workers and superiors have been quite understanding of our childcare needs, weare promoting the sharing of work responsibilities so that we can better respond to the sudden
need to take time off.

23 CSR REPORT 2018

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 ChildRaising Support

Physical and Mental Healthcare
To support the physical and mental health of employees, we

In 2012 and 2014, we acquired the “Mark of Certification ofprovide a wide range of services including medical checkups,

Support for Raising Next-Generation Children” (commonly

medical consultations with an industrial physician, guidance

called “Kurumin”) from the Osaka Labour Bureau of thefrom public health nurses on reversing metabolic syndrome,

Ministry of Health, Labour and Welfare. This is an official

and hygiene training.

acknowledgement of our efforts to support employees to

For the mental health, in FY2012, we formulated a basicbalance work and family life by enhancing our childcare

policy, Sekisui Plastics Group’s Mental Health Promotion.

leave system and promoting taking paid leave. We continue

We continually and systematically engage in mental healthto aspire to be a company that supports child-rising by

support activities, including preventive measures, following

encouraging the use of relevant programs and supportingan annual plan. In FY2014 and FY2015, we held mental healthsystems that create employee-friendly workplaces andtraining for managers.

worklife balance.

In FY2016, we held stress-check tests, engaged in activities
to prevent lifestyle-related diseases from becoming severe,

Business Promotion Consortium—passing on the founding spirit to now

and provided health information in order to raise healthawareness among employees. In fiscal 2017, our stresscheck implementation rate was 92.1%.

Sekisui Plastics Group set up the Business Promotion
Consortium comprising all members of employees andEmployment Promotion of People with Disabilities

directors, and encourages their voluntary participation in
management.
The Consortium pursues the workers’ happiness throughthe management philosophy of mutual respect and trust.

The employment rate for people with disabilities for theentire Group was 1.3% in FY2017. This rate has not reachedthe legal standard so we continuously strive to increase

We treasure the founding spirit of Sekisui Plastics Group,

the rate by sharing examples of employment (job content,“the happiness of people working for the company,”

working environment, etc.) of the Group companies hiringand practice the corporate culture, Zen-in Keiei, throughsuch people.

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 varietyof conditions. As part of this effort, we are focusing on theactive advancement of women and advancing measures
aimed at creating an environment in which as many womenas possible can excel.

CSR REPORT 201824

Initiatives for ISO26000—Social Responsibility
Section 2

Human Rights/Labor Practices

Sekisui Plastics Cram School (SK-Juku)

Safety-Related Activities

The SK-Juku promotes the early development of global

In addition to safety patrols of each workplace and site

executive-level employees and next-generation leaders,patrols by top managers, we carry out the following activities.

strengthens develop-sales skills, and cultivates human resources
with a 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

and practical education by directors and management.

employee to find out dangerous facilities and procedures.
We use results of the safety response survey of theJapan Industrial Safety and Health Association.
2 Appointment of one-day safety managers

All Group companies appoint one-day safety managers
to increase 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*1

Accident Severity Rate*2

1.50

0.150

1.00

0.50

1.00

0.94

1.06

1.06

1.15

0.10

0.10

0.06

0.42
0.26
0

2012

0.100

0.09

0.55

0

1.02

2013

Sekisui Plastics Group

0.040

0.22

2015

0.010
0
2016

2017

0.08

0.050

0
2014

0.07

(FY)

Manufacturers (100 or more employees)

2012

0.015
0
2013

Sekisui Plastics Group

0
2014

2015

2016

0.004
2017

(FY)

Manufacturers (100 or more employees)*1 Lost Time Injury Frequency Rates: The number of absent employees due to industrial
accidents per 1 million working hours*2 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.

25 CSR REPORT 2018

Global Talent System

Safety-Related and Health Activities

In line with the expansion of our global business bases and with

We conduct periodic training, safety education andthe aim of developing talented individuals who will vigorously

emergency response drills to hone employee abilities andplay an active role in the global market, we introduced theskills, and maintain/improve safety and health. We set up

Global Talent System for developing and managing humanAnzen Dojo (Safety training halls), where employees canresources according to individual experience and skill level.

experience simulated accidents, at ten locations in Japan

We focus on the creation of human resources with an emphasisand five locations overseas as educational facilities to raiseon local experience by sending younger employees in a widesafety awareness among individual employees and impartvariety of positions to global Group companies.

safety skills.

Human Resource Development at Production Sites
We promote human resource development at production
sites based on a concept, “Monodukuri (to create things)”
is “Hitodukuri (to create human resource).”
We promote the SKG Kaizen Activities for enhancing
Monodukuri capability of the entire Group while improving
human resource of production site workers.
All workers at production sites, whether they are fulltimer and part-timer, participate in SKG Kaizen activities
and are committed to create better things in terms of theenvironment, safety, quality and cost.
Every year, 10 teams, which qualified from over 220 teams
in global, give KAIZEN presentation at the final tournament.

ColumnSafety Training Center in Thailand
Sekisui Plastics (Thailand) Co., Ltd. Saraburi Facility Safety Officer Sudarat Duangket (Aoi)

In the wake of the 1993 fire at a toy factory, which left a toll of deaths, the government of Thailand
signaled its commitment to safety and disaster prevention, including by enacting a law stipulatingthat fire drills must be conducted at least once a year. The title of Safety Instructor is given to thosecompleting government-specified training and 70% of those receiving this title are women, showingthat women are making a valuable contribution in maintaining a strong level of safety awareness.
In line with the Company’s policy of giving top priority the safety and health of its employees,
Sekisui Plastics established a safety training center in Thailand in 2016. In daily training exercises,
we focus on ensuring safety awareness by following basic actions, such as pointing at and verballyconfirming equipment such as helmets, shoes and uniforms prior to work. There are also a variety
of other training programs, including cardiopulmonary resuscitation (CPR) and automatic external
defibrillator (AED) training, and programs aimed at training new employees to take certain
actions, including affixing safety belts, before they enter the work site.
Thanks to the establishment of the safety center and the factory manager’s definite
commitment to prioritizing safety, the facility has remained accident free and disaster free forover one million man hours.

CSR REPORT 201826

Initiatives for ISO26000—Social Responsibility
The Environment

Section 3

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

Inputs/Outputs (FY2017 Results)
Sekisui Plastics Group grasps and manages the environmental

production volume. We are working on the low carbon society

impact arising from business activities in “unit consumption/plan launched in FY2013.

output,” which expresses environmental loadings per

Overseas

Japan
Inputs

InputsEnergy consumption

Energy consumption

1,882.44

Water consumption

million MJ/year

Electric: 121,788 MWh/year
Non-electric: 17,240 kl/year[Crude oil equivalent]

3,459

thousand m3/year

Recycling 8,828 t/year
Materials Recycling:
7,161 t/year
Thermal Recycling:
1,668 t/year

Outputs
Atmospheric environmental load
CO2 emissions: 109,128 t/year (Production)
CO2 emissions: 6,097 t/year (Logistics)
NOx emissions: 34 t/year
SOx emissions: 55 t/year
Aquatic environmental load

291.56

Water consumption

million MJ/year

138

Electric: 10,386 MWh/year
Non-electric: 4,851 kl/year[Crude oil equivalent]

Sekisui Plastics• Sales• Production• R&D

thousand m3/year

Recycling 351 t/year
Materials Recycling:
333 t/year
Thermal Recycling:
19 t/year

Outputs

Atmospheric environmental load
CO2 emissions: 15,400 t/year (Production)
NOX emissions: 12 t/year
SOx emissions: 6 t/year

Aquatic environmental load

Total effluent: 3,263 thousand m3/year
Amount of COD discharge: 17 t/year

Total effluent: 128 thousand m3/year

Industrial waste

Industrial waste

8,961 t/year

476 t/year

Final landfill disposal and simple incineration:
133 t/year

Final landfill disposal and simple incineration:
122 t/year

27 CSR REPORT 2018

FY2017 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 throughworldwide and in addition to focusing on how much water

innovations on production process.

the company uses and how much wastewater it releases, theIn fiscal 2017, changes in our production structure involving a

Sekisui Plastics Group is taking measures to reduce usage byshift from raw materials to final products resulted in domestic

studying ways to more efficiently use this valuable resource.

CO2 emissions (basic unit) increasing 1.9% from the previous

Domestic water consumption in fiscal 2017 was 3,459,000m3,

year. Likewise, CO2 emissions (basic unit) increased 12.5%

including 1,380m3 of groundwater and 82,000m3 of publicly

overseas in line with the launch of full-fledged operations at

supplied water. Overseas water consumption was 138,000m3.

various mold processing plants.

Due to changes in the group’s production structure, water

We are continuing to work to reduce CO2 emissions inresource consumption on a basic unit basis was up 3.3% from thefiscal 2018, by improving processes, eliminating steam/air

previous year in Japan and up 6.3% on the same basis overseas.

leakage, and reducing heat loss.

With the goal of preserving valuable water resources, we willcontinue to work to conserve water in fiscal 2018, including bypromoting the reuse of water and reviewing the production process.

TOP

ICS

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 todevelop 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 the idea of
reducing river and ocean garbage in individual activities.
The Sekisui Plastics Shikoku Ozu facility acquired permission to operate industrial waste disposal
and transport businesses, and has started collecting and recycling foamed polystyrene floats usedin aquaculture rafts. The Sekisui Plastics Yamaguchi Mihara Plant participates in cleanup events every
year on the nearby Nuta River and for four consecutive years has won first place in the handmade raftcontest, which is judged based on total garbage collected the quality of the raft’s workmanship.

CSR REPORT 201828

Initiatives for ISO26000—Social Responsibility
Section 3

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 emissions

We have started energy-saving activities such as turning

by improving efficiency in distribution and organizing projects

off unnecessary lights, and installation of energy-saving

to reform the distribution system from fiscal 2017. As partequipment such as LED lighting and individual airof our efforts, we are decentralizing production sites andconditioners. In FY2017, we reduced energy consumption

constructing warehouses in business centers to improve ouron a basic unit per area by 7.0% from the previous fiscal year.

distribution network. However, with the effects of these efforts
yet to manifest, CO2 emissions in distribution increased infiscal 2017.

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

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

5.5

5.8

6.2

6.6

4.7

0.7

0.7

0.4

0.4

0.5

1.4

1.3

1.4

1.4

1.6

0.0

0.0

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

2.1

1.1

1.6

2.7

2.8

0.1

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

EmissionAir

29 CSR REPORT 2018

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 asa summertime power-saving and CO2 reduction measure. In
FY2017, 34 locations in Japan and overseas joined in the activity.
In one example, Sekisui Plastics Gunma was awarded the bronze
prize in the Green Curtain Contest sponsored by the town of
Oizumi. We are also participating in the “Green Wave Activities”
being advanced by the Ministry of the Environment. In fiscal 2018,17 group companies and 39 offices registered on the Ministry’s
website and participated in “Green Wave Activity” events.
In recognition of its participation to date, the company was
designated as a Green Wave Official Partner in March 2018.

Zero Emission Activity
In order to reduce and recycle the industrial waste, we joinedin 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 Co., Ltd. Corporate Planning Center CSR Promotion & Public Relations Department Komei Yanase

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 timezone creates a “green wave” that moves across the world from east to west.
The Sekisui Plastics Group is in agreement with the goals of the green wave
activities and encourages each of its companies to support and spread such activities.
With the goal of advancing awareness of biodiversity in our employees, the Groupis sponsoring tree planting and raising activities, as well as the conservation of rural
nature around the International Day for Biological Diversity. In particular, we areworking to increase the number of participants by creating a manual for participation
at smaller offices and promoting enhanced participation at larger offices.
In recognition for its participation in these activities, Sekisui Plastics was designatedas a Green Wave Official Partner by the Japan Committee for United Nations Decadeon Biodiversity (UNDB-J) in fiscal 2018. We will continue to work to achieve the fullparticipation of all Sekisui Plastics locations moving forward.

CSR REPORT 201830

Initiatives for ISO26000—Social Responsibility
Fair Operating Practices

Section 4

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

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)

30

distributing stable dividends. We will implement a dividend

36%

33%

policy targeting a consolidated dividend payout ratio of

24

30–40%. In addition, we continue to review and implement20

the acquisition and retirement of treasury stock in a

36%

33%

27

24

18

flexible manner as part of profit-sharing with shareholders.
Internal reserves are selectively appropriated for strategic

10

investment leading to the future growth and enhancementof the management structure.
0
FY2014FY2015

Dividends per ShareFY2016FY2017

Dividend 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 FY2014, the dividend per share shows in the graph.

Promoting ComplianceSekisui Plastics Group set up the Sekisui Plastics Group’s

In addition, each Group company establishes a Compliance

Compliance Guideline, describing how to act as a represen-Committee and appoints a responsible person to cooperate

tative of the Company, and has been building a favorable

the Groups each other.
To fulfill corporate social responsibilities, the Group set up

relationship with societies.
Also, the Group established a Compliance Committee toan internal whistle-blowing system “SKG Clean Network,”enhance and promote compliance of the entire Group withand strives to build a fair and vigorous organization.

laws/regulations. The Committee is held twice a year on a

For “SKG Clean Network,” please refer to the Section 2 on Page 23.

regular basis to deliberate on compliance matters in the Group.

CSR Control Committee
ReportRelevant Departments

InstructCompliance Committee

ReportInternal Hotline○ General Manager of Legal Department○ Secretariat of the Compliance Committee

ReportReportInvestigation request
Response

OptionResponse○ Legal Advisor

ReportResponse

Whistleblower

31 CSR REPORT 2018

External Hotline

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 “Information Security Committee.” The committee
formulates rules according to the basic policy and theiroperational manual, 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
for suppliers by widely opening the door to pursue better
products and services based on transparency and fairness.
We deepened our partnership with our suppliers from fiscal
2017, 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 eachcompany’s business.

Respect for Intellectual Property
We formulated a basic policy on intellectual property.
We ensure proper use of intellectual property in businessactivities and respect the intellectual property rights ofothers by carrying out activities complying with the policy
and by designating a department to investigate.
We actively put forward particularly outstanding inventions
for awards. In fiscal 2017 we received the Chairman’s Award
from the Nara Inventor’s Association for the invention ofelectrode structures for low-frequency therapeutic equipment
as part of commendations for inventions in the Kinki region.

CSR REPORT 201832

Initiatives for ISO26000—Social Responsibility
Section 5

Consumer Problems
To carry out our responsibility to consumers, Sekisui Plastics Group pursues safety andreliability through activities ensuring product safety and correcting the understandingof environmental impact.

Initiative to Quality Assurance
We operate a customer-focused quality assurance system, applied from the development stage to ensure that all
products and services 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-reflect customer values, not those of the Company, and as

curement standard for raw materials and with the goal ofsuch we carry out upstream management (ensuring productproviding 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

campaign to improve quality awareness in fiscal 2017.

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

Approach to Product Safety

are labeled according to GHS classifications and their safety

We are committed to developing products that take into

data sheets (SDS) are available.

consideration the environment, safety and health throughout
the entire product life cycle, from the research and development stage to product disposal after use.
Improve Product Quality at Development Stage

Design Review
Market needs,
Customer needs

Sales
Activities

Development
Topic
Evaluate/Decide

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

The Group attempts to identify customer needs using inquiries

accidents. When an accident occurs, responsible depart-via our corporate website and by visits to customers, in ourments take the lead in promptly response based on the

pursuit of customer satisfaction. In addition, the Whole Sekisui

regulations, with full consideration of the customers’Group (including all groups of Sekisui Chemical, Sekisui

perspective, and related departments cooperate in finding

House, and Sekisui Jushi) shares the product basic data anda solution as necessary. In the case of a serious productaims to provide an “All Sekisui” response to customers.

accident, responsible departments promptly report to the
top management and takes rapid, appropriate response.

33 CSR REPORT 2018

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

properties. The learning course is offered to and enjoyed

Manufacturing Workshop courses promoted by the Kyoto

by elementary school students in the city of Kyoto. In

City Board of Education. One of the learning programs

cooperation with the 3S Senior Venture Club (a volunteer

is focused on foamed polystyrene (generally referred togroup of Sekisui Chemical alumni), the Sekisui Plastics

a Styrofoam), which is quite useful in our lives thanks toGroup provides support, instructors, and materials for

its light weight, thermal insulation, and shock absorbing

hands-on learning in these programs.

Recycling
Sekisui Plastics Group has been a leader in the recycling ofof permission to operate industrial waste disposal businesses

EPS foam for 47 years, since 1971. We established the Japanin Ibaraki, Nara, Ehime, Oita, and Okinawa PrefecturesEPS Recycling Association (current: JEPSA - Japan Expanded

and a wide-area certification at Sekisui Plastics Yamaguchi

Polystyrene Association) together with raw material and(covering Hiroshima, Yamaguchi, and Shimane Prefectures)

molding companies in 1991 and promote recycling activities

has allowed the Group to actively engage in the recycling

of EPS foams at recycling centers. In particular, the acquiringof Styrofoam.

Recycling of Expandable Polystyrene Foam (EPS)
（%）

100

Thermal recycling rate

Material recycling rate

71.6
60.1

60

30.7

34.5

36.0

55.0

55.7

54.4

2011

2016 2017 (Year)

26.6

28.7

0

90.4

22.3

40
20

90.2

85.7

80

12.6

28.7

37.8

45.0

12.6

1991

1996

2001

2006

Data source: JEPSACSR REPORT 201834

Initiatives for ISO26000—Social Responsibility
Section 6

Community Involvement and Development
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 throughits 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

The Action Policy defines two themes in its promotion of

Sekisui Plastics Group’s 100th Year Vision, we foster asocial contribution: corporate social contribution activities

culture of social contribution and actively promote socialand support for activities by Group employees.

contribution activities.

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

With greater importance given to CSR-oriented management,

contribution activity promotion as a company” and “social

the Social Contribution Committee has formulated thecontribution activity support to the Group members” to“Social Contribution Action Policy” and promoted activities

promote our activities.

in an organized manner throughout the Group.

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.

Support for the Reconstruction Effort
in the Tohoku Region
The Sekisui Plastics Group is working to support reconstruction
efforts in the Tohoku region through the formation of the
Tohoku Reconstruction CS Team, whose members are mainly
drawn from Sekisui Plastics Tohoku, and our business activities,
including total solutions proposals in the civil engineeringrelated domain (as in infrastructure development) and in
the agriculture- and fisheries-related domains. In addition,
we have donated Sekisui Plastics Group products (such as
simple food containers) for use at earthquake reconstruction
events, and Group employees participated in the Millennium
Hope Hills Tree-Planting Festival.

35 CSR REPORT 2018

Mirai Fund Ibaraki “Sekisui Plastics Fund”
To expand activities of the “Sekisui Plastics Fund” nationwide,a new fund in the Kanto region was established in May 2016
with a contribution to the “Mirai Fund Ibaraki” operated by
the Ibaraki NPO Center Commons.
In FY2017, we supported, with aid andthe participation of our Group members,
the activities of the NPO “associationof the Protecting Rural Nature in Koga,”which engages in restoring and protecting
abandoned wooded areas.

Mirai Fund Ohmi “Sekisui Plastics Fund”
The Sekisui Plastics Fund was established in July 2012 witha contribution to the “Mirai Fund Ohmi” operated by the NPO
Ohmi Culture Promotion Foundation. The fund provides
ongoing financial support and assistance via our Group member
participation for the activities of the “Koga Environment andSatoyama Vitalization Council,” an NPO which works to preserve
biodiversity in Lake Biwa and the surrounding environment. From
FY2016, we started this activity in the new employee orientation.

ColumnSekisui Plastics Fund provides support for the preservation of woodlands
President of NPO “Koga Environment and Satoyama Vitalization Council” Tadao Fujii

The “Koga Environment and Satoyama Vitalization Council” conducts restoration
activities aimed at revitalizing the woodlands in Minakuchi-cho, Koka City, Shiga
Prefecture, which is located near Lake Biwa. More specifically, our activities include thethinning of the woodlands, the trimming of deadwood and shrubs, weeding and theclearing of dead leaves, the installation and maintenance of stairs and pathways, andthe creation of a boardwalk through the wetlands. We have been conducting these
activities for about 14 years and the goals of initial restoration plan have almost beenreached. We are now moving into the maintenance and utilization stages.
In terms of support from Sekisui Plastics, we are of course grateful for the financial
support, and we are especially delighted that these conservation activities are includedin the training program for new employees. Our membership is well populated witholder citizens and they are especially happy to work with the younger recruits.
Even when the activities associated with the funding come to a close, we are hoping
for continued participation in Satoyama preservation activities as well as ongoingcooperation in making the woodlands of Koka a relaxing place for its citizens.

CSR REPORT 201836

Environmental Performance Data

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

Category

FY2016

Major activities

FY2017

Investment

Costs

Investment

Costs1) Costs in business area
(1) Pollution control

Control measures for air/water quality

35

99

71

114

(2) Global environment

Energy saving

378

24

226

25

(3) Recycling

Recycling, industrial waste treatment

1

210

7

226

Subtotal

414

333

304

365

2) Up-/down-steam

Product recycling

2

472

4

423

3) Management costs

Departmental costs associated with introducing
environment management system

8

122

0

114

4) R&D costs

R&D for environmental conservation products

0

47

0

47

5) Social Activity cost

Greening, social supports

0

2

0

2

6) Environmental damage
fixing cost

Nature restoration

0

0

0

0

Total

424

976

308

951

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

FY2016

Economic Effects Related to Environmental
Conservation Measures(Millions of yen)

FY20171) Effects on costs in business area
(1) Electricity consumption (MWh)116,644

121,788(2) Crude oil consumption (kl)

16,46917,240(3) Total effluent (thousand m3)

3,044

3,459

(4) Amount of COD discharge (t)14172) Effects on Up-/down-steam costs
Amount of recycled polystyrene
foam (t)37 CSR REPORT 2018

670

398

Details of effects

FY2016FY2017

1) Cost reduction throughenergy-saving activities

79

128

2) Income from recycling

575

435

654

563

Total

Cost Effectiveness of Environmental Conservation Activities
FY2016FY2017

67.0％

59.2%

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

Major ISO Certification
ISO 9001 Certification
CertifiedGroup Companies

Sekisui Plastics(as of August 2018)

Scope of certification
Development, management of commissioned
manufacturing and sales of synthetic resin (such aspolystyrene, polyethylene, polypropylene, polyethylene
terephthalate and polyphenylene ether), molded
articles (including foamed articles) and related products(such as industrial materials, distribution packing
materials, freshness-preserving agents and housing andconstruction components integrating a heating system)
Development, manufacturing and sales of polymerhydrogel products and processed products
Development, manufacturing and sales of neutralelectrodes, biofunction test electrodes and stimulating
electrodes

Sekisui Plastics Kanto

Development and manufacture of expandable
polystyrene resin, extrusion foamed plastic products,
and acryl/styrene resin particles

Sekisui Plastics Shiga

Development and manufacturing of styrene resin,
expandable styrene resin and particles Manufacturingof acrylic resin particles

Sekisui Plastics Tobu

Manufacturing and sales of polystyrene foam articles

Sekisui Plastics Kyushu

Development and manufacturing of extrusion
polystyrene foam (ESLEN Sheet and laminated sheet)

Sekisui Plastics Tenri

Development and manufacturing of extrusion foamed
plastics products

Shonan Sekisui Kogyo

Development and manufacturing of polystyrene foam
sheet

Taiwan Sekisui Yunchu

Manufacturing of expandable polystyrene resin and its
particles
Manufacturing of synthetic resin containers

Sekisui Giken

Development, manufacturing and management ofcommissioned manufacturing of synthetic resin foodcontainers (such as food product trays)

Sekisui Plastics Shikoku

Development, manufacturing, sales and materials
supply of polystyrene foam articles and processed
products

Sekisui Plastics Ohmi

Manufacturing of polystyrene foam articles andprocessed products

Sekisui Plastics Gunma

Manufacturing and sales of polystyrene foam articles
and processed products

Sekisui Plastics
Yamaguchi

Development, manufacturing and sales of polystyrene
foam products (articles and processed products)

Tianjin Sekisui Plastics

Manufacturing of styrene resin particles

Suzhou Sekisui Plastics

Manufacturing of styrene resin particles

Sekisui Plastics Saitama

Development and manufacturing of polystyrene foam
sheet and polystyrene foam laminate sheet

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

Foam packaging material trading

Sekisui Plastics Yamakyu
Co., Ltd.

Manufacture of thermoplastic resin sheet molded
products and resin molded products (parts for trucks,
buses, construction and agricultural machinery, medical
equipment, etc.)

Sekisui Plastics(Shanghai) Precision
Forming

Designing and manufacturing of precision plastic
molded articles, and manufacturing of plastic sheet/film
processed products

ISO 14001 Certification
CertifiedGroup Companies(as of August 2018)

Scope of certification

Sekisui Plastics Shiga

Development and manufacturing of styrene resin,
expandable styrene resin and its particles and special
synthetic resin

Sekisui Plastics Kanto,
Sekisui Plastics

Development, manufacture and sale of acrylic/styrene
resin particles and polymer hydro-gel products, and theirprocessed products, for expandable styrene resin andextruded foaming products. Design, construction andsale of industrial materials

Sekisui Plastics Tenri

Development and manufacture of extruded foam
products, polymer hydro-gel products, and processed
products and intermediate processing of waste plastics

Sekisui Plastics Kyushu

Development and manufacturing of extruded foaming
polystyrene

Sekisui Urethane Kako

Development, manufacturing and sales of plastics
products, in particular polyurethane foam

Sekisui Plastics Gunma

Manufacturing and sales of foam polystyrene articles
and processed products

Taiwan Sekisui Yunchu

Manufacturing of expandable styrene resin and its
particles

Tianjin Sekisui Plastics

Manufacturing of expandable styrene resin particles

Sekisui Plastics Sakai

Manufacturing of liquid crystal panels in Green Front
Sakai

Suzhou Sekisui Plastics

Manufacturing of expandable styrene resin particles

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

Foam packaging materials trading

Sekisui Plastics(Shanghai) Precision
Forming

Designing and manufacturing of precision plastic
molded articles, and manufacturing of plastic sheet/film
processed products

ISO 13485 Certification(as of August 2018)

CertifiedGroup Companies
Sekisui Plastics

Scope of certification
Development, manufacture, and sales of neutralelectrodes, biofunction test electrodes, and stimulating
electrodes

ISO/TS 16949 Certification(as of August 2018)

CertifiedGroup Companies
Sekisui Plastics.
U.S.A., Inc.

Scope of certification
Manufacturing relating to molding and assembly of
foamed molded parts

Sekisui Plastics (Thailand)
Manufacturing of foam products
Co., Ltd.
Sekisui Plastics Europe
B.V.

Sales, marketing, production and technical support ofPiocelan, Sales, marketing and technical support ofTechpolymer and ST-Gel, Sales of foamed parts

CSR REPORT 201838

Consolidated Financial and Non-financial Data
Fiscal Year

2014＊1

2013

2015

2016

2017

For the year:(Millions of yen)

109,923

113,660

101,559

102,398

112,101

Operating income

2,124

3,930

5,118

5,401

5,284

Recurring income

2,206

4,180

4,862

5,049

5,154

Net income attributable toowners of the parent

1,264

2,530

3,147

3,404

3,448

Capital expenditures

3,434

5,908

4,424

5,836

7,762

Depreciation and amortization

3,856

3,999

3,937

3,591

4,087

Total assets

110,687

116,201

114,892

119,670

131,774

Total net assets

54,03658,27558,80061,363

66,145Interest-bearing debt

18,566

19,467

18,274

18,42519,096

Net sales

At year-end:

Amounts per share*2:(Yen)

Net income

26.95

54.14

67.33

73.03

75.33

Net assets

1,136.53

1,231.37

1,243.30

1,322.14

1,444.28

14.00

18.00

24.00

24.00

27.00

Operating income ratio (%)

1.9

3.5

5.0

5.3

4.7

ROE (%)

2.5

4.6

5.4

5.7

5.5

ROA (%)

2.0

3.7

4.2

4.3

4.1

Equity ratio (%)

48.0

49.5

50.6

50.7

49.6

Total number of employees

1,833

1,859

1,895

2,011

2,101

Employees (Japan)

1,609

1,539

1,545

1,633

1,680

Employees (overseas)

224

320

350

378

421

Female employee ratio (%)

̶

̶

16.9

18.1

18.9

Industrial accident

0

4

1

1

2

Equipment disaster

1

1

0

0

1

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 for overseas
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.

39 CSR REPORT 2018

2013

Fiscal Year

2014

2015

2016

2017

Number of production sites
Japan

35

35

35

36

37

Overseas

6

6

8

10

10

Energy consumption (million MJ/year)

1,767.90

1,750.18

1,710.86

1,801.26

1,882.44

Unit consumption/output (MJ/t)

8,370

8,532

8,308

8,308

8,453

3

2,875

2,883

2,865

3,256

3,459

Unit consumption/output (m /t)

13.6

14.1

13.9

15.0

15.5

103,365

102,445

99,963

104,367

109,128

Unit consumption/output (kg-CO2/t)

489

499

485

481

490

CO2 emissions (Transportation) (t/year)

6,665

6,333

6,506

7,177

7,854

Unit consumption/output (kg-CO2/t)

32.5

33.1

32.4

38.0

39.2

261

221

143

136

126

Unit consumption/output (kg-CO2/m )

68.4

57.9

37.6

35.6

33.1

3

2,601

2,704

2,799

3,044

3,263

12.3

13.2

13.6

14.0

14.7

13.7

13.3

11.7

14.1

16.6

12,697

7,665

7,278

8,138

8,961

98.4

98.5

98.8

98.5

98.5

Energy consumption (million MJ/year)̶̶

166.70229.36291.56

Unit consumption/output (MJ/t)̶̶

13,571

14,041

16,165

̶

̶

70

118

138

̶

̶

5.7

7.2

7.7

̶

̶

9,936

12,394

15,400

̶

̶

809

759

854

̶

̶

62

106

128

̶

̶

5.1

6.5

7.1

Amount of COD discharge (t)

̶

̶

7.6

10.4

12.9

Industrial waste (t)

̶

̶

425

410

476

̶

̶

82.6

78.3

73.9

Inputs (Japan):

Water consumption (thousand m /year)
3

Outputs (Japan):CO2 emissions (Production) (t/year)

CO2 emissions (Office) (t/year)
2

Effluent (thousand m )3Unit consumption/output (m /t)
Amount of COD discharge (t)Industrial waste (t)Recycling rate (%)

Inputs (Overseas):

3

Water consumption (thousand m /year)
3

Unit consumption/output (m /t)

Outputs (Overseas):
CO2 emissions (Production) (t/year)
Unit consumption/output (kg-CO2/t)
3

Effluent (thousand m )3Unit consumption/output (m /t)

Recycling rate (%)(Note) Sekisui Plastics Group identifies and manages the environmental impact arising from business activities in “unit consumption/output,” which expresses the quantityof environmental loadings per unit in the volume of production.

CSR REPORT 201840

Our Group Network (33 companies)(As of August 1, 2018)

Overseas Subsidiaries
Tianjin Sekisui Plastics Co., Ltd.
Sekisui Plastics Korea Co., Ltd.

Sekisui Plastics Europe B.V.

Sekisui Plastics Co., Ltd.
Sekisui Plastics U.S.A., Inc.
Sekisui Plastics Mexico S.A. de C.V.

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

Suzhou Sekisui Plastics Co., Ltd.
Sekisui Plastics Taiwan Co., Ltd.
Sekisui Plastics (Hong Kong) Trading Co., Ltd.

Sekisui Plastics (Thailand) Co., Ltd.
Sekisui Plastics S.E.A. Pte. Ltd.
PT. Sekisui Plastics Indonesia

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.

41 CSR REPORT 2018

Company Profile
Company nameSekisui Plastics Co., Ltd.

Founded

October 1, 1959

Paid-in capital¥16,533 million

President

Masato Kashiwabara

Number of employees

418 (non-consolidated)
2,101 (consolidated)

Business Lines in Each Segment
Human Life

Industry

Market/Application

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

Major Products

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

Market/Application

Automobile components, packaging materials for transporting
automobile 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,
other foamed/molded products

CSR REPORT 201842

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

Sekisui Plastics Co., Ltd.
Contact:

CSR Promotion & Public Relations Department
Corporate Strategic Headquarters

Address:

2-7-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo
163-0727, Japan

Tel: +81-3-3347-9711 Fax: +81-3-3344-2335
CSR Report 2018
1809SD276.8-500
1110SD276.1-1000

Easy-to-read universal design fonts areused in this report.