Teijin Group Sustainability Website Content 2022

Sustainability

Message from Chief Sustainability Officer
Toward the Realization of a Sustainable Society
In recent years it seems as though not a day goesby when the word "sustainability" does notappear in newspapers and other media. I am
always a little puzzled, however, because theword is often used without a subject. What
exactly is it that must be sustained? Thinking
about this question, I understand that the subject
must be the society in which we live. So, what is
the starting point of this social sustainability?
The origin of corporate social responsibility inEurope apparently was the issue of
unemployment among young people in the
1990s. Since European society could not besustained if the matter were left untouched, notonly governments but companies also set abouttackling the youth unemployment issue. Every
Noboru Yamanishi

person constitutes an essential asset for society.

Teijin Group Executive Officer

Therefore, since companies were handling social

Chief Sustainability Officer

assets, they had to accept the accompanying
responsibility. Companies educate and train
people and then have them create value.
Accordingly, I believe that human rights definitely
lie at the root of social sustainability.
Besides human rights, our business would notsurvive without the sustainability of suppliers. In
addition, in the supply of goods and services, itwould be inexcusable if they were harmful topeople. Furthermore, in the process fromproducing the goods and services that we supply
to delivering them to the customer, the emissionof much carbon dioxide would mean that wewere cohorts in bringing about climate change.
In this way, to sustain society, steady efforts arenecessary to solve multiple problems one by one.
The Teijin Group intends to contribute to thesustainability of society by continuing tochallenge issues around the clock in our effort toenhance the quality of life, which is our corporate
philosophy.

Teijin Group Sustainability Website Content 2022

Sustainability

Sustainability Policy and SDGs
Based on the following sustainability policies, the Teijin Group contributes to thedevelopment of a sustainable world by providing value to solve social issues throughthree solutions focusing on people: (1) environmental value solutions; (2) safety,
security and disaster mitigation solutions; and (3) demographic change and increased
health consciousness solutions.

Teijin Group Sustainability Website Content 2022

SDGs Approach Policy
To realize a sustainable world, our focus will be on people, to provide innovative solutions to enhance
the quality of life, while minimizing the impacts of our activities on the environment and society.

CSR Basic Policy
The Teijin Group defines its CSR Basic Policy as follows. Basically it’s a long-term policy, but
enumeration of specific issues in it are reviewed in the medium term.

CSR Basic Policy
1. Basic Stance: Sustainable Development of Business and Society
Work positively and proactively on important issues related to corporate social responsibility
such as the environment, society and governance (materiality) with high sensitivity to aim forsustainable development of business and society as “an enterprise that is essential totomorrow’s society.”
2. Contribute to Society through Business
Proactively grasp those problems that society needs to solve related to the environment,
safety/security/disaster mitigation and health, and provide sustainable solutions to suchproblems through business.
3. Appropriately Respond to Various Risks
Manage various risks related to business activities appropriately such as corporate ethics andcompliance, environmental impacts, quality assurance, occupational safety, etc., anddemonstrate strong resilience even when risks actualize.
4. Dialogue with Society to Improve Continuously
Maintain positive dialogue with society and continuously improve these recognitions andpractices. At the same time, contribute to gaining and maintaining social recognition as a“sustainability advanced enterprise” globally.

Teijin Group Sustainability Website Content 2022

Code of Conduct
We -- The Teijin Group, including its officers and employees -- act according to our conscience, with theaim of enhancing the quality of life for all stakeholders.

Code of Conduct
Together
We are united in building shared, sustainable value through mutual respect for our
unique differences.
We accept our diversity in terms of race, religion, sex, gender, and cultural background,
and we respect each other's personality and character. We appreciate different opinions
and perspectives and engage in honest discussions for better conclusions.
We leverage our partnerships internally and externally, cooperating to create products
and services that help society's sustainable development. As good corporate citizens, we
contribute to society in an appropriate manner for evolving together with our local
communities.
Environment, Safety & HealthWe put the global environment, human safety and health as our top priorities when
conducting business.
We seek to protect the environment and reduce the environmental burden in every part of ourbusiness; including research and development, procurement, production, logistics, sales, use,
recycle, and disposal.
We put human life first in every step of our business. We strive to provide a safe work
environment and protect our physical and mental health. We also provide our customers withsafe and trustworthy products and services.
Integrity
We act with integrity in compliance with laws and regulations, and show respect forhuman rights and local communities in which we operate.
We respect human rights and do not allow any discrimination and harassment in any part ofour business and supply chain. We also maintain accountability by conducting our business ina way that helps to win the trust of local communities.
We comply with applicable laws and regulations in every country and region where we dobusiness and respect internationally-accepted principles.

Teijin Group Sustainability Website Content 2022

We respect and/or protect:fair tradeaccurate records, reports and documentation
timely, appropriate, and fair disclosure
intellectual property
personal data, and confidential information
whistle-blowing
security export control

We do not allow for:anticompetitive behaviors, such as cartels
corruptions such as bribery
insider trading and market manipulation
money laundering and terrorism financing
dealing with antisocial forces

Joy at WorkWe are committed to building a fulfilling and joyous workplace, where each of us ispassionate about our work.
We accept each other's roles and contribution. We also trust and help each other to create awork environment where everyone can work with a sense of security and vigor.
We enhance our team's capabilities by boldly pursuing new possibilities and actively
supporting the growth of our colleagues.
We contribute to society through our work by understanding and sharing our goals andpurposes of our work.
INnovation
We challenge ourselves for transformation, and provide innovative solutions,anticipating the needs of our customers and society.
We stay perceptive to future society's needs by being observant of changes in the world andboldly innovating and creating revolutionary products and services.
We create better ideas, technologies, and processes, taking full advantage of the chemistry ofdiverse opinions and perspectives. We transform ourselves by thinking outside the box.
(Established on April 27, 2018 after the corporate resolution of the Board of Directors of Teijin
Limited.)Teijin Group Sustainability Website Content 2022

"Code of Conduct" How we behave
Together(PDF:282KB)
Environment, Safety & Health(PDF:290KB)
Integrity(PDF:420KB)
Joy at Work(PDF:222KB)
INnovation(PDF:260KB)

Implementation of an employee awareness survey
We have been implementing an employee awareness survey to monitor the understanding andbehavioral of employees in light of our corporate philosophy, including the Code of Conduct, and to
consider future measures to achieve greater understanding and awareness of our philosophy.
In fiscal 2021, we introduced a new system for this survey, offering the survey in 15 different languages
and expanding its scope to include Group corporate officers and employees working directly for Group
companies. Of the 19,060 personnel targeted by the survey, 11,726 people responded (response rate of62%). Ranking the level of penetration regarding our corporate philosophy and CSR-based thinking on
a five-point scale, 72% of respondents provided a high ranking of 5 or 4.
Going forward, we will analyze the survey results, consider measures so that employees can behave inaccordance with the Code of Conduct, and check progress through the questionnaire.
FY2021 Employee Awareness Survey Response Rate

Participation in the Global Compact
Teijin Limited joined the UN Global Compact* in March 2011 by a decision of the Board of Directors.
Participation in this global initiative for sustainable development is voluntary. Participating companies
are required to follow the 10 basic principles of the Global Compact relating to “human rights,” “labor,”“environment” and “anti-corruption.”
As a global company, in order to practically implement high-quality CSR management, in FY2011, theTeijin Group reviewed its Corporate Code of Conduct and Corporate Standards of Conduct based on theprinciples of the UN Global Compact. In addition, in terms of business activities, we clarified policies topractically implement the basic principles such as respecting human rights.

Teijin Group Sustainability Website Content 2022

Further the Teijin Group has revised its previous Corporate Code of Conduct and Standards of Conduct
to the Code of Conduct to clarify the Group’s engagement with the United Nations’ Sustainable
Development Goals (SDGs), the Global Compact and other frameworks in accordance with changes inthe social environment in June 2018. Our new Code of Conduct now includes the statement, “Integrity:
We act with integrity in compliance with laws and regulations, and show respect for human rights andlocal communities in which we operate.”
Additionally, in March 2019, we established the Teijin Group Human Rights Policy. Under this policy, we
pledge to endeavor not to be involved directly-or to be complicit indirectly by way of external affiliatesin any kind of human rights violations in our business activities, in recognition of the fact that respectfor human rights is an important social responsibility to be fulfilled as a company.
* UN Global Compact: A set of voluntary corporate-action principles proposed by the former Secretary General Kofi Annan
during the World Economic Forum (Davos Forum) held in January, 1999.

The Ten Principles of the UN Global Compact
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.
LabourPrinciple 3: Businesses should uphold the freedom of association and the effective recognition of
the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion andbribery.

Teijin Group Sustainability Website Content 2022

Sustainability

Management System and Promotion
Activities
We have organized the risks and opportunities the Teijin Group faces, and establisheda sustainable management base to promote CSR activities.

Management System
With the aim of achieving the sustainable development of its businesses and society, the Teijin Group
has appointed a Chief Social Responsibility Officer (CSRO),* who oversees the Group's CSR activities.
Under the guidance and supervision of the Board of Directors, the CSRO is promoting CSR activities
that are integrated with the Group's business activities.
* Diversity and inclusion efforts are overseen and promoted by the Chief Human Resources Officer.

CSR-related policies and plans, as well as the progress of those plans, are discussed twice a year atmeetings of the Group CSR Committee. Important CSR-related issues in each business group and ateach Group company are confirmed via CSRO reviews, which are conducted once a year.
The status of those initiatives is deliberated by the organizations as mentioned below. The Board of
Directors provides instruction on these efforts.
In terms of important operational risks, deliberations on basic plans and reports of their progress
take place at the Total Risk Management (TRM) Committee. The details of these discussions are thenreported to the Board of Directors (twice a year).
The CSRO reports the performance status of their duties to the Board of Directors (once a year).
The details of deliberations by the TRM Committee are shared with the Group CSR Committee and thenreflected in the activities of each business and administrative division and in the short-term plans ofthese divisions in the following fiscal year.

Teijin Group Sustainability Website Content 2022

Promotion Activities
We have organized the risks and opportunities the Teijin Group faces with the aim of contributing to
the development of a sustainable world, and established a sustainable management base to promote
CSR activities.
In order to implement the Teijin Group’s CSR activities in a unified and effective manner, a main
division/organization in charge is specified under the supervision of the CSR Officer for each important
CSR issue. This main division/organization then starts the PDCA cycle of planning medium- to longterm and single fiscal years (Plan), implementing this plan (Do), evaluating (Check), and improving(Action) to achieve ongoing improvement and enhancement of our CSR activities.

Teijin Group Sustainability Website Content 2022

PDCA approach to CSR activities

Group CSR committee
The Group CSR Committee meets twice a year and is chaired by the CSRO.
[Agenda items]
Sharing information on the status or response to important Group CSR issues and the progress
toward achieving CSR goal
Identifying issues related to important Group CSR items and proposing solutions
Sharing details of TRM Committee deliberations and reflecting those details in the formulation ofplans in the following fiscal year
In fiscal 2021, the Group CSR Committee invited external experts to share information regarding cybersecurity and the driving of innovation. In addition, the committee held discussions on a variety of
initiatives to address important issues, such as establishing a structure to promote business aimed at
reducing CO2 emissions, devising ways to approach targets to reduce Scope 3 CO2 emissions, creating
supply chain BCPs/BCM to respond to complex disasters, and responding to revisions to foreignexchange-related laws.

Teijin Group Sustainability Website Content 2022

Implementation of the CSRO Review
With regard to the Group's CSR activities, every year the CSRO conducts a review to confirm how eachbusiness group and Group company are responding to important CSR-related issues. The review also
confirms the status regarding major law violations, incidents, and accidents.
The CSRO review conducted in fiscal 2021 confirmed that there had been no major law violations,
incidents, or accidents during the previous fiscal year.

External Evaluations
Status of inclusion in SRI indices (as of August 2022)
The Teijin Group was evaluated on its initiatives for ESG to date, and for its transparency in information
disclosure. As a result, we continue to be included in the following leading socially responsible
investment (SRI) indices.
Inclusion in Socially Responsible Investment (SRI) Indices
Dow Jones Sustainability Indices
FTSE4Good Index Series
Ethibel Investment Register

Selected for the components of all five ESG Indices used in Government Pension Investment
Fund (GPIF)MSCI Japan ESG Select Leaders Index
MSCI Japan Empowering Women Index (WIN)FTSE Blossom Japan Index
FTSE Blossom Japan Sector Relative Index
S&P/JPX Carbon Efficient Index

Note: The inclusion of the Teijin Group in the MSCI Index and the use of the MSCI logo, trademark, service marks or index
names by the Teijin Group, are not attempts by MSCI and affiliated companies to sponsor, advertise or promote sales.
The MSCI indices are the exclusive property of MSCI and the names and logos of MSCI and MSCI Indexes aretrademarks or service marks of MSCI or its affiliates.

Teijin Group Sustainability Website Content 2022

Received an AAA rating, the highest rating, in the MSCI ESG rating evaluation「 AAA」MSCI ESGAs a company with excellent ESG initiatives, we have been selected for four programs
Company with Excellent Health Management
Nadeshiko Brand 2022 for promoting the active role of women in the workplace
Pride Index 2021
D&I Award

Teijin Group Sustainability Website Content 2022

Sustainability

Materiality and KPIs
We introduce the five material issues of the Teijin Group, and the key performanceindicators (KPIs) and target values.

Materiality of the Teijin Group
Materiality is social issues that we prioritize in our actions to realize our long-term vision of being acompany that supports the society of the future.
In the Medium-Term Management Plan 2020-2022, based on global social issues and the goals set forthin the SDGs, we have organized risks and opportunities that our company faces and identified fivematerial issues to be addressed as management issues from fiscal 2020 onward.

Teijin Group Sustainability Website Content 2022

Materiality and SDGs

Learn more about materiality here
Climate Change mitigation andAchievement of a circular

Safety and security of people

adaptation

economyand local communities

Realization of healthy and

Further strengthening of

comfortable living for people

sustainable management base

Teijin Group Sustainability Website Content 2022

Process of identifying materiality
The Teijin Group grasps a wide range of social issues and screens them by conducting a materiality
analysis from the perspective of their degree of importance to the Teijin Group and degree of impact
on stakeholders. The Chief Social Responsibility Officer then consults with external experts. The Teijin’s
Group Management Committee finally identifies the materiality to the Teijin Group.

STEP1 Grasp and screen
Grasp the trends of a wide range of social issues including the SDGs, and digest them

STEP2 Analyze materiality
The digested social issues are analyzed and mapped two-dimensionally, with importance of the social
issues to the Teijin Group in ascending order along the horizontal axis, and impact on stakeholders inascending order along the vertical axis.

Teijin Group Sustainability Website Content 2022

STEP3 Select material issues
From the issues analyzed in STEP2, we select those which have a particularly high importance to the
Teijin Group and a high degree of impact on stakeholders.

STEP4 Dialogues with external experts
We conduct dialogues with external experts about the Teijin Group’s process of identifying Materiality
and the selected issues.

Details of Implementation
We conducted dialogues about the Group’s process of identifying materiality and the selected issues in
October 2019, and received inputs from external experts from a wide range of perspectives.

Connecting business fields with solutions helps improve corporate value
When organizing its materiality with a focus on
the SDGs, I believe Teijin can establish a greater
sense of a narrative by showing how its threesolutions, which are created as a result of its
business activities, contribute to society. In
addition, Teijin should be able to enhance its
corporate value to an even greater extent byextending a particular material or business acrossmultiple solutions. I also think it is important foreach employee to gain an understanding on the
Hidemi Tomita
Director,
Lloyd’s Register Japan K.K.

kind of business opportunities that are created byresponding to the SDGs.

Teijin Group Sustainability Website Content 2022

Backcasting from the future with a view to the next 100 years is important
From the viewpoint of a long-term investor, thepurpose of a corporation’s efforts toward ESG
and the SDGs is to achieve sustainable value
creation over the long term. To that end, it isimportant to accumulate existing businesses andmake commitments to the future and then thinkbackwards on how to accomplish them. In
addition to considering “what” actions it should
undertake, Teijin should think about “why” they
are pursuing a particular action. I therefore would
Ken Shibusawa
Founding Partner & Chairman of the Board,
Commons Asset Management, Inc.

like to see Teijin promote backcasting with a focus
on the next 100 years. Going forward, the extent
to which Teijin can ascertain changes in thebusiness environment and consider aspects
outside the perspective of its past successes will
become increasingly more important.

Looking forward to long-term value creation related to climate change
From a short-term perspective too, Teijindeserves praise for supporting the Task Force on
Climate-related Financial Disclosures (TCFD). I
think the Company could benefit from adopting amore long-term perspective with its vision andstrategies. I would like to see Teijin establish
goals for 2030 through a backcasting approachthat considers the kind of company Teijin aims to
be by its 150-year anniversary. If Teijin’s
management is able to indicate the direction
Toshihiko Goto
Chief Executive Officer, Sustainability Forum Japan
Board Member, Global Compact Network Japan

toward which the Company is heading, I believethat knowledge of this path will spur various
ideas from employees on how to reduce CO2
emissions and other matters. To survive as acompany going forward, it is crucial to pursue
efforts from the perspective of value creation
related to climate change.

Teijin Group Sustainability Website Content 2022

Key dialogues held in the past
Dialogue on human rights with external experts (FY2020)(PDF:642KB)
Dialogue on human rights with external expert (FY 2019) (PDF:49KB)
Corporate Governance Talk (FY 2018) (PDF:161KB)
Promoting of Diversity & Inclusion (FY 2017) (PDF:170KB)
Materiality Initiatives (FY2016) (PDF:9.29MB)
Holding a consultation about CSR procurement (FY2015)(PDF:91KB)
Identify Material CSR Issues (FY2014)(PDF:154KB)
True Diversity -- The Next Step in the Advancement of Female Employees (FY2013)(PDF:2.5MB)
How Teijin Aramid Creates Qualitative Value in the Chain (FY2012) (PDF:3.36MB)
CSR in Disasters (FY2011) (PDF:3.57MB)How Should Environmental Initiatives for China be Structured? (FY2010)(PDF:3.23MB)
Toward Better Home Oxygen Therapy (FY2009)(PDF:993KB)
Toward Expanding ECO-CIRCLE® (FY2008) (PDF:2.38MB)
Operation of the Environmentally Friendly Design Guidelines (FY2007)(PDF:1.03MB)
Promotion of “ECO-CIRCLE®” (FY2006)(PDF:1.41MB)

STEP5 Identify material issues
The Group Management Committee deliberates, checks, and identifies the Teijin Group’s Materiality.
The current five material issues were identified at the Group Management Committee in December
2019.

Teijin Group Sustainability Website Content 2022

KPIs & Targets
The KPIs for each material issue set by the Teijin Group are indicated below.
Materiality
1. Climate Change mitigation and adaptation
2. Achievement of a circular economy
3. Safety and security of people and local communities
4. Realization of healthy and comfortable living for people
5. Further strengthening of sustainable management baseMateriality
1.2.3.4

KPIs
Sales ratio of the three solutions

Targetby
FY203075% or more of total
sales

Reference
Newly
created in
April 2020

1

Avoided CO2*1 emissions*2

by

Avoided emissions >Newly

FY2030Total emissions

created in
April 2020

1

Climate Change

FY2030(Group CO2 emissions)*1

30% reduction vs.

Revised in

FY2018July 2021(total amount)
FY2050Net Zero Emissions

Newly
created in
April 2020

1

Climate Change (Supply Chain CO2*1

FY2030emissions )*3

2

Water (Freshwater Intake)

FY203015% reduction vs.

Newly

FY2018created in(total amount)July 2021

30% improvement vs.

Newly

FY2018created in(volume of

April 2020

freshwater intake persales unit)
3

Hazardous Substance

FY203020% improvement vs.

UpdatedFY2018in April(hazardous chemical

2020

substance emissions
per sales unit )2

Resources Recycling

FY203010% improvement vs.

UpdatedFY2018in June(volume of landfill

2020

waste per sales unit)Teijin Group Sustainability Website Content 2022

Materiality
5

KPIs

TargetReference

Diversity & Inclusion
Diversity of
Executives

No. of female executives

April 1,

10+

2031

*4

Updatedin April
2020

Women’s

No. of non-Japanese

April 1,

executives

2031

Japan*6

No. ofApril 1,

advancement

managers (or2031

key goals

higher)*5US

No. of senior

April 1,

managers

2031

*7

12+

Update in
April 2020

300+

Update in
April 2020

10

Newly
created in
April 2020

EU

No. of global

April 1,core talents

2031

*8

10

Newly
created in
April 2020

China

No. of senior

April 1,

managers*7

2031

12

Newly
created in
September
2020

ASEAN

No. of senior

April 1,

managers

2031

*7

8+

Newly
created in
September
2020*1

Calculated as the amount of avoided effect of CO2 emissions that the Company's products have contributed to in the
supply chain downstream reduction in the downstream supply chain due to the use of our products*2

Includes CO2, methane and nitrous oxide*3

Covers Scope 3 emissions in Category 1 (purchased goods and services). However, this excludes Category 1 emissions
related to products purchased for sale in the Textiles & Products business*4

Total number of board directors, statutory auditors, group executive officers, and group corporate officers*5

Key goals are set based on regional situations*6

Four major companies in Japan: Teijin Limited, Teijin Pharma Limited, Teijin Frontier Co., Ltd., Infocom Corporation*7

President or his/her direct report in a Group company*8

Human resources of female senior managers selected and certified as executive candidate

Teijin Group Sustainability Website Content 2022

Sustainability

Solutions and Value Creation
The Teijin Group creates new value and provides it to society through three solutions
that leverage its strengths.

Solutions and Value Creation
The Teijin Group has inherited the DNA of “Evolution and Ambition”. In our 100-year history, we havebeen solving the challenges of that era and providing various solutions. Our current goal is tocontribute to the realization of a sustainable world. To this end, we will strive to create new value thatsociety needs in three fields: “Environmental value solutions,” “Safety, security and disaster mitigation
solutions” and “Demographic change and increased health consciousness solutions.”
In addition, we will further focus on strengthening the management base, which is the foundation forthat, and responding to risks appropriately.

Teijin Group Sustainability Website Content 2022

Value creation at a glanceTeijin Group Sustainability Website Content 2022

Value provided that contributes to solving problems

Teijin Group Sustainability Website Content 2022

Sales for the “three solutions”
The Group’s targets for FY2030
Total sales ratio of 75% or more for the three solutions
Statistics of sales for the “three solutions”