Care for People,
Care for Earth
Asahi Kasei Group

Sustainability Report 2023

Asahi Kasei Group Sustainability Report 2023

INDEX
Editorial Policy

1

Human Rights

121
126

Management Message

2

Health & Productivity Management andOccupational Health & Safety
Occupational Health & Safety

126

Sustainability Vision- Asahi Kasei Group’s Vision

7

Health & Productivity Management

134

Sustainability Management

15

Policies and Framework

15

Materiality and SDGs

18

Initiatives and Member Organizations
We Participate In

24

Relationships with Stakeholders

27

Contribution through Business Activities

29

Asahi Kasei Group's ESH & QA

33

Organizations implementing ESH and QA

38

FY2022 ESH Objectives and Attainment

41

Environment

42

Environmental Management

43

Climate Change

46

Responding to Climate Change

46

Disclosure based on TCFD
Recommendations

51

Pollution Prevention and Resource Circulation

61

Water Resource Preservation

67

Biodiversity

70

The Asahi Kasei Group's Environmental
Contribution Products78

Our Initiatives

78

Description of Environmental
Contribution Products

81

Society

Quality Assurance
CSR Procurement
Human Resources
Human Resources Strategy
Human resources development andactive engagement
Diversity, Equity & Inclusion (DE&I)
Employment and Labor Practices

87
88

Process Safety

143

Social Activities

151

Local communities

151

Community fellowship

154

Governance169

Corporate Governance

170

Compliance

181

Risk Management

185

Tax Policy

189

ESG Data

191

Environment

191

Society204

Governance

211

External evaluation

212

Policy Statements

216

GRI Standards Content Index

218

SASB Content Index

229

Independent Review and Independent
Assurance Report

233

Regarding photos used on the cover
A number of photos used in this report are winning entries from our “2ndSustainability Photo Contest” held in fiscal 2022 among all Asahi Kasei Group
employees and executives. More than 1,000 photos were submitted from ourgroup locations around the world, a great many of which convey ourcommitment to “Care for People, Care for Earth.”

94
101
101
103
108
119

Note on PDF functions:This PDF document contains links you can click to view related pages.
By clicking the arrow in the lower left corner, you can return to thepreviously viewed page.

Asahi Kasei Group Sustainability Report 2023

Editorial Policy
Introduction

The Asahi Kasei Group issued our first Environment Report in 1991, and we began issuing a CSR Report in 2006 with content
expanded to include social responsibilities. Through these reports, we have further enriched communication with our stakeholders
and continually worked to fulfill our accountability.
In line with a trend mainly in Europe to combine financial and non-financial information in a single integrated report, in 2014 weissued an Asahi Kasei Report replacing our Annual Report and CSR Report. At the same time, since then we disclose information on
the details of our CSR activities using this website.
Since fiscal 2019, we have termed this report the "Sustainability Report" both on our website and in its downloadable form. In thereport, we present the Group's approach to sustainability and contributions to achieving a sustainable society through our businessactivities, in accordance with the concept "Care for People, Care for Earth." The framework for our activities is organized into
Environment (E), Society (S), and Governance (G), and comprehensive information is provided on policies, systems, activities,
numerical data, etc.
For your reference, we also have a table indexing our content with the assessment categories of ESG rating agencies.

Reporting period

The primary focus is fiscal 2022 (April 2022 – March 2023). Some information pertains to the period subsequent to this.

Scope

Information herein pertains to Asahi Kasei Corp. and consolidated subsidiaries as of March 31, 2023, unless otherwise noted.
Data with differing scopes or coverage is presented in footnotes.
The report on ESH & QA activities applies to Japanese and overseas Group companies that are implementing the same activities.
Use the link below to access activity reports and a list of implementing business sites.
Asahi Kasei Group's ESH & QA

Inquiries

Please contact us via the website or telephone if you have an inquiry in relation to our sustainability initiatives.
To submit an inquiry through the website, please use the following form:
https://www.asahi-kasei.com/contact_us/contact/

Guidelines consulted

We reference the following guidelines and framework when disclosing information related to sustainability.
GRI Sustainability Reporting Standards (GRI Standards)
Ministry of the Environment "Environmental Reporting Guidelines (2018)"
SASB (Sustainability Accounting Standards Board) Standards
International Organization for Standardization "ISO 26000"

Publication

Published October 2023 in Japanese (March 2024 partly updated)
Next scheduled publication: October 2024
Previous publication: October 2022
1

Asahi Kasei Group Sustainability Report 2023

Management Message

Contributing to Sustainability with Dedication to Life and Living
Deeper communication in times of dramatic change

Our business environment continues to change more dramatically than before. We have been seriously affected by events aroundthe world, with rising geopolitical risks such as trade friction between the United States and China, the pandemic, and the RussiaUkraine situation. Of course, we always expect that various things can happen, but since several events and incidents beyond our
expectations have occurred, I thought a lot during the past year about how we should tackle changes in the business environment,
what the company’s position in the world is, and how we should cooperate with outside parties.
After becoming president in April 2022, I gained a broader perspective of the business environment. This renewed my sense of theimportance of communication. Although communication sounds simple, true communication is profound, and is only achieved when
we see things from other person's perspective. In Asahi Kasei, we have long had a culture of addressing one another by namerather than using formal titles. This avoids emphasizing people's hierarchical ranks, which allows people to speak their minds more
freely. Recently we have had to be more careful when it comes to video conferencing. Online tools are very convenient, butintentions are not conveyed as easily as they are in person. For instance, I might try to make a joke, but it's difficult to gauge theother person’s reaction when talking remotely. Did I just not hear them laugh? Did they simply not get my joke? It's hard to tell.
While there are benefits of convenience, I think we have to be more careful too. In order to make communication more meaningful, I
try to be approachable, to create an atmosphere where it is easy for people to talk to me.

Being close to people and growing together with society
In 1922, founder Shitagau Noguchi established Asahi Fabric Co., Ltd., the predecessor to Asahi Kasei, and the following year, hesucceeded in manufacturing synthetic ammonia in Japan for the first time at a plant in Nobeoka, Miyazaki Prefecture. Since then,the company has continued to grow for over 100 years.
However, when he started the company, I doubt Noguchi expected it to continue for 100 years. He started the business using
technology in his field of specialty to develop society at a time when Japan was still modernizing. Since then, the company has
continued to create and take on challenges, producing products for the wider world so that it can contribute to society through new
and innovative things. I believe that this continued desire to move forward step by step has resulted in Asahi Kasei lasting for 100
years.
2Asahi Kasei Group Sustainability Report 2023

Our Group Mission, to contribute to life and living for people
around the world, shows the universal significance of why we asa company exist. Our current mission statement was adopted in2011, but long before then, employees already had the feelingthat this was a company that was always close to people. Thisfeeling is evident in the fact that while we have developed as a
B2B company, we have also engaged in businesses aimed at thegeneral public, such as consumer goods and homes. It is from a
century ago that we inherited the idea of being a company that isclose to people and grows together with society.
Companies must change according to what people need. Companies cannot survive unless they meet the expectations of society. It
is extremely important to keep this in mind as we move forward. These days, society expects companies to be sustainable. In ourcurrent medium-term management plan, we aim to create a virtuous cycle of two aspects of sustainability: contributing tosustainable society, and sustainable growth of corporate value. Both the company and society need to be sustainable. As weadvance these two aspects of sustainability, the important thing is for everyone to fully embrace what it means. When somethingchanges in a business or in a job, the way to grow corporate value and contribute to sustainable society may need to change, too.
This is why I tell our company's leaders to explain this to their personnel in a way that they can appreciate, and to maintaineffective communication about it.

Drawing together with Care for People, Care for Earth
Even a hundred years from now, Asahi Kasei's approach willremain the same. We will continue to understand the issues thatsociety faces in each era, and focus on creating innovative
businesses and products that provide solutions as we continuallytransform ourselves. This will further deepen trust with ourdiverse stakeholders, and our basic stance will continue far into
the future.

Based on this premise, our vision for the Asahi Kasei Group in 2050 is expressed as “Care for People, Care for Earth.” This visionsignifies our determination to contribute to the future of society through the two main pillars of “living in health and comfort” and“harmony with the natural environment.” I want our company to be one that gives everyone the feeling that Asahi Kasei will use its
technological capabilities to solve various social issues and create an exciting future. We must be a company that strives daily tosolve various social issues, and provide new products and services to society. I’m confident that we at Asahi Kasei can do this, as
we have always advanced with people at the forefront. These days, however, it is difficult for an individual company to accomplish
something alone, so we will leverage various forms of collaboration for Care for People and Care for Earth.

Promoting various measures to achieve sustainability
As we pursue the two aspects of sustainability, contributing to sustainable society and sustainable growth of corporate value, we
are advancing transformation in the critical areas of green, digital, and people (GDP). Furthermore, by combining and maximizing
intangible assets such as diversity, an energetic culture, intellectual property, and know-how, we will continue to transform to meetthe needs of society in every era.
3

Asahi Kasei Group Sustainability Report 2023

Technologies and businesses that contribute to greenhouse gas (GHG) emissions reductions
Climate change, including global warming, is a pressing issue that the world has to address. As a company, we must aim for growthby developing and providing to the world products and technologies that can contribute to solutions. In that respect, our Material
sector, along with the Homes sector, has great potential. Asahi Kasei is tackling the issue of global warming in two ways: reducing
our own GHG emissions from business activities, and contributing to GHG emissions reductions throughout society. Due to thecharacteristics of the chemical industry, the Material sector's GHG emissions are significant. Achieving the world's ambitious goalof carbon neutrality by 2050 requires us to review our production processes and improve our technologies to reduce our own
emissions. On the other hand, we also have technologies that contribute to the environment. We could say that the outlook of ourcompany rests on the extent to which we can supply products that help society achieve GHG emissions reductions. Asahi Kasei has
many excellent and extremely cutting-edge technologies, so it is vital that we use these to create many new products whileconsidering the value chain. For example, in the case of hydrogen, which is attracting worldwide attention as an energy source, wehave strengths in manufacturing equipment. However, just having manufacturing equipment by itself does not make a hydrogenbusiness viable. We need to consider how hydrogen is produced, transported, and used. This is why we are forming alliances withenergy, infrastructure, and logistics companies, in order to quickly create what the world needs. Success depends on how we form
our value chain. With outstanding and unique technologies, it is extremely important that we leverage our strengths to lead thevalue chain while contributing to the realization of a carbon-free society.

Raising the “A-Spirit” to continually transformWhen aiming to achieve sustainability, human resources are critical. Since our previous medium-term management plan, we havebeen saying that people are our most valuable assets and that everything starts with people. We can no longer expect to make sales
simply by producing good materials. The success or failure of a business depends on employees being able to connect with theoutside world, having personal connections, and being active. In order to grow sustainably, it is important for us to value
connections with diverse stakeholders and continue to create innovative products and businesses. This is only possible with humanresources. And this is why each and every employee is needed to be proactive.
The cradle of Asahi Kasei is Nobeoka, a place far from the center of Japan. The company was also not affiliated with any of thelarge industrial groups, so it was sometimes referred to as a maverick. We are proud of these roots, and since our founding we havevalued an energetic spirit, and have used this as the driving force behind our business. “A-Spirit” (Asahi Kasei spirit) expresses thisheritage, and represents the spirit of a pioneer and the spirit of taking challenges to go beyond the status quo. But in recent years,
as the organization has grown larger, I sometimes feel that this A-Spirit has faded somewhat. What is important is that Asahi Kasei
continues to be energetic. While reflecting on the past to learn from our failures as we take on new challenges, we will focus evenmore on developing human resources with an enterprising spirit who can bring change, and build an organization that can nurture
this talent.

Co-creativity and life-long growth of diverse individuals
As a company that operates a wide range of businesses, the diversity of our human resources is a feature and strength. We placeemphasis on diversity, equity, and inclusion, not only to encourage the success of each individual, but also to enhance co-creativity
based on a variety of perspectives.
A key element in this is expanding opportunities for women. Although the number of women in managerial positions is increasing
year by year, it is still not at a satisfactory level, so further progress is needed. However, rather than simply pursuing numericaltargets, we must steadily move forward with a sense of understanding and belief that this is how Asahi Kasei should be. We arepromoting gender diversity as a key initiative, including supplementing the areas in which we are lacking by hiring personnel fromoutside.

4

Asahi Kasei Group Sustainability Report 2023

Another key part of our human resources strategy is life-long growth. This is aimed at energizing our more seasoned employees
while encouraging all employees to develop their careers autonomously. However, employees may not be convinced if it feels likethey're being told to continue growing for the sake of the company. When we asked plant employees how they felt, many of theveteran employees had that reaction. But when we asked employees if they could come up with ways to make their lives more
fulfilling and more rewarding at work, most responded that they could do that and would like to. If the idea of “life-long growth”
becomes accepted and everyone continues to work in a healthy and active way, the younger generation will look up to them and be
inspired. This is the aim of life-long growth.

Creating value together with suppliers
In order to resolve through business such social issues as the environment, human rights, labor, safety, and hygiene, it is importantfor us to work together with the entire supply chain. We formulated supplier guidelines in 2021, and have been promoting
understanding among our business partners.
Asahi Kasei is proud to be second to none when it comes to our business attitude and corporate culture of creating better products
together with our suppliers. We have been in the textile business since our founding, but one of the characteristics of Japan's textile
industry is the length of its supply chain. There is a long process that leads all the way to the apparel industry, from spinning andweaving to dyeing and sewing. Over our 100-year history, the experience we have gained working with many suppliers is thefoundation of our company.
As a company that operates globally, we must always be conscious of the respect for human rights. To confirm that there are no
human rights violations, either within the Asahi Kasei Group or in the supply chain, we identify industries and regions at high risk
and prioritize measures. Even in Japan, human rights issues may be occurring in places that we cannot see. We must pay close
attention to whether wages are appropriate, including overtime payments, and whether any harassment is taking place. If there is aproblem at a supplier, it is important that we work together to consider how to resolve it, how we can make improvements, and what
we can do.

Strengthening risk management
Amid rising geopolitical risks and increasing uncertainty in the business environment, we reviewed and reorganized the group-widerisk management system in fiscal 2022. As the President I am ultimately responsible, but with another Executive Officer assistingme, we have clarified the management framework and the roles of those involved. We also categorized risks into Group Risks andBusiness Risks to identify and visualize each specific risk.
I believe that the key to risk management is whether effectiveness is assured. The question is whether or not we can carry out ourplans when an unfavorable event occurs. We need to thoroughly verify the functions that enable us to reliably communicate withsites where there has been an occurrence, and to execute concrete measures without delay. We are establishing a system thatallows us to quickly implement a PDCA cycle.

5Uniting with stakeholders toward the next 100 years

Asahi Kasei Group Sustainability Report 2023

The Asahi Kasei Group was established through relationships
with various stakeholders, and with their understanding andcooperation, we have continued to take on many challenges overthe past century. I believe that the most important thing for Asahi
Kasei now and in the future is whether we share the same vision
for the future as our stakeholders. This entails thinking fromanother perspective. For example, we may sometimes havedifferent opinions from our shareholders and investors.
Nevertheless, we must consider and ask ourselves, “If I were an
investor, what would I expect from Asahi Kasei?” I believe thatbeing successful through relationships with various stakeholders
is the result of continually looking at things from anotherperspective.
For the next 100 years, the Asahi Kasei Group will evolve by continuing to care about life and living to create businesses that alignwith people's needs. We will deepen our understanding of what society expects from us and the mission we must fulfill,demonstrating our A-Spirit to take on the challenge of further transformation.
President
Koshiro Kudo

6

Asahi Kasei Group Sustainability Report 2023

Sustainability Vision - Asahi Kasei Group’sGroup s Vision’’’

Asahi Kasei's Group Philosophy and Sustainability Goals
The Asahi Kasei Group conducts corporate activities to provide new value to society by realizing its Group Vision of “living in healthand comfort” and “harmony with the natural environment.” We aim to achieve two mutually reinforcing aspects of sustainability:
contributing to sustainable society and sustainable growth of corporate value.

The Direction of Sustainability with a View Toward 2050
As exemplified by the problems of climate change and the COVID-19 pandemic that have affected people around the world, Asahi
Kasei’s commitment to “Care for People, Care for Earth” has become even more important.
Given this context, the Group will take on the following two challenges as we look toward 2050. From the perspective of “Care for
Earth,” we aim to achieve a carbon-neutral and sustainable world, and from the perspective of “Care for People,” we aim to achieve
active life in the new normal.
As we look ahead to 2050, we can expect to see a variety of social issues. We believe that we will be able to help resolve theseissues while expanding our business opportunities.
For example, in terms of “Care for Earth” (achieving a carbon-neutral and sustainable world), we can contribute to electric vehicles,
a hydrogen society, carbon recycling, and achieving a circular economy among other important subjects, primarily through ourbusinesses in the Material sector with, battery materials, an alkaline water electrolysis system, CO2 separation and recovery,
recycling technology, and use of biomass, etc. We can also contribute in the Homes sector by supplying insulation materials and net
zero energy homes (ZEH).
Note: To achieve a carbon-neutral world, it is essential to reduce GHG emissions from our business activities. For more information on the Asahi Kasei
Group’s policy toward carbon neutrality, please click here
7

Asahi Kasei Group Sustainability Report 2023

In terms of “Care for People” (achieving active life in the new normal), we will contribute to the development of homes andcommunities that can withstand storm and flood damage and extreme heat as climate change progresses. We will also contribute
through our health care and other businesses, with pharmaceuticals and medical devices, to help people live healthy and vibrant
lives.

In addition to aiming to provide value to society through our two challenges, we will enhance the fundamental activities that support
our business activities, such as corporate governance, compliance, respect for human rights, and safety and quality. Our group will
also pursue our two sustainability goals of contributing to a sustainable society and sustainable growth of corporate value.
Asahi Kasei Group's Materiality

Initiatives for Achieving a Carbon-neutral and Sustainable World
The Asahi Kasei Group is working to develop products and services in a wide range of fields from upstream to downstream in thevalue chain, including raw materials, manufacturing processes, energy, product use, and product recovery, with the aim of realizing
a carbon-neutral sustainable world.

Initiatives for Achieving a Hydrogen-based Society
Significance of theinitiatives

Hydrogen is a key factor for carbon neutrality

Our vision

Contribute to a hydrogen society and green hydrogen production centered on water electrolysis
technology

Specific initiatives

Development and provision of large-scale alkaline water electrolysis system

Hydrogen, which is attracting attention as a fuel for automobiles and power generation, as a raw material for chemicals, and as ameans of storing and transporting energy, is a key factor for carbon neutrality. Based on our knowledge of chlor-alkali electrolysis
systems and electrochemistry as well as our technological development capabilities, in 2020 we launched a 10-MW alkaline waterelectrolysis system in Namie Town, Fukushima Prefecture, to demonstrate the efficient supply of hydrogen produced using
renewable energy. As expectations for hydrogen rise worldwide, with Japan and other countries around the world announcing theirhydrogen strategies, we have also conducted demonstration trials in Germany. Furthermore, as well as developing a 100-MW largescale water electrolysis system that is in demand around the world, we are also working to establish technology for integrated
control of green chemical plants that use hydrogen produced by the water electrolysis system. Our aim is for earlycommercialization through collaboration with partner companies up and down the supply chain and through participation in projects
around the world.
8Asahi Kasei Group Sustainability Report 2023

Aqualyzer™ large-scale alkaline water electrolyzer

Producing Chemicals using CO2
Significance of theinitiatives

CO2 recycling is an important element of a sustainable society

Our vision

Practical application of CO2 chemistry in addition to polycarbonate

Specific initiatives

Production of functional specialty chemicals based on carbonyl group introduction technology

9Asahi Kasei Group Sustainability Report 2023

We are also focusing on CO2 chemistry, which enables the production of chemical products using CO2 as a raw material.
In the area of polycarbonate production technology, the EC process has been used in practical applications and is being licensed
around the world. The DRC process, which is a further refinement of the EC process, has already been demonstrated as viable andis attracting attention as a technology that enables production regardless of the location of petrochemical plants. We are also
developing a technology to produce isocyanate (raw material for polyurethane) from CO2. We have also started to use the EC
process as a basis for the production of electrolyte materials for LIBs, which will become even more essential in society going
forward. With regard to CO2 separation and recovery, we are developing a system that uses our catalyst technology to efficiently
separate and recover CO2 from power plant and factory exhaust gas using a special zeolite (a type of mineral) with a precisely
controlled pore structure.

Deploying technologies, products, and services to Achieve a Circular Economy
Significance of theinitiatives

Promoting sustainable resource usage is essential for decarbonization

Our vision

Development and practical application of technologies and infrastructures that have becomebottlenecks in achieving the circular economy

Specific initiatives"BLUE Plastics" Project

In an age when global environmental conservation is a major concern, resource recycling and the use of recycled plastics are being
promoted as ways to recycle plastic waste as resources to supply highly convenient products while being considerate of theenvironment.
However, until now, it has been difficult to prove the recycling chain for products made from recycled plastic and the recycling rateof materials.
We are developing a digital platform based on our belief that, to make a resource-recycling society a reality, it is necessary tovisualize the recycling chain of recycled plastics to create an environment in which people can use them with confidence. The social
issue of balancing resource recycling with convenience is difficult to solve through the efforts of individual companies alone, so we
aim to create a widely accessible platform that can be used by a broad range of people, from every kind of company involved in therecycling chain to consumers.

Initiative for Achieving a Circular Economy
10Asahi Kasei Group Sustainability Report 2023

Manufacture of Basic Chemicals from Bioethanol
Significance of theinitiatives

Reducing the use of fossil resources and CO2 emissions, making non-recyclable materials
sustainable

Our vision

Contribute to the production of chemical products that do not rely on fossil resources through thepractical application of technology in society

Specific initiatives

Manufacturing basic chemicals* from bioethanol* Ethylene, propylene, C4, benzene, toluene, xylene

Despite the 3R (reduce, reuse, recycle) efforts currently underway in various countries, not all materials are suitable for recycling.
There are a variety of materials that are technically difficult to recycle and those that are difficult to recover, and there are materials
that can be recovered but are difficult to separate. In addition to the 3Rs, if we increase the use of biomass-derived plastics, theuse of fossil resources can be reduced, and further CO2 reduction effects can be expected.
We are currently developing new technology to produce basic chemicals from bioethanol by applying the catalyst and process
technology cultivated in our petrochemical business. Conventionally, it is possible to produce ethylene from ethanol throughcatalytic dehydration. If commercialized, our new technology will enable the production not only of ethylene, but also light olefins
such as propylene, and aromatics such as benzene, toluene, and xylene, in a single plant. This will make it possible to manufacture
many daily necessities from biomass raw materials, including products that have been considered difficult to manufacture using
non-petroleum resources.

11

Asahi Kasei Group Sustainability Report 2023

Active life in the new normal
Achieving Healthy Longevity in an Era of Centernarians
Significance of theinitiatives

Responding to health-related lifestyle issues that are increasing due to the declining birthrate andaging population

Our vision

Provide homes and services according to changes in health and family circumstances

Specific initiatives

Providing secure apartment buildings for senior citizens and homes with services for senior citizens

This is an era where people often live into their hundreds. As senior citizens’ values with regard to homes become more diverse, theGroup provides optimal homes based on their level of health.
There is the “healthy period,” when people are active and healthy; the “frail period,” when people’s minds, bodies, and social skills
decline; and the “need care period,” when people need support. Each stage requires a different type of home.
For senior citizens in the healthy to frail stage of life, we offer “Hebel Village” secure rental homes for seniors, which allows them tolive a more enjoyable life that will be comfortable and secure for many years to come.
For senior citizens in need of care, we provide “Village Riche” housing, which includes extensive care services.
We contribute to the formation of a society of healthy longevity by providing senior citizens who feel anxious and inconvenienced
living in their own aging homes with the option of changing their residence while they are still healthy to one that is safe, reliable,
and conducive to healthy longevity. We also provide security for the future through senior citizen homes that includes services for
those who require extensive care.

12Asahi Kasei Group Sustainability Report 2023

Contributing to the Resolution of Unmet Medical Needs
Significance of theinitiatives

Responding to unresolved health-related medical issues that are increasing due to the aging
population, etc.

Our vision

Provide superior products and services globally

Specific initiatives

Development and marketing of pharmaceuticals, medical devices, and related services/materials

As health-related issues are becoming more common due to the aging of the population and other factors, the Group believes that
addressing unmet medical needs will become ever more vital. The Group aims to provide superior products and services globally
through its involvement in both pharmaceuticals and medical devices.
In the pharmaceuticals field, we will continue to make contributions in the immunology and transplantation fields.
In the medical devices field, we will focus on serious cardiopulmonary diseases and related fields (acute myocardial infarction,
sleep apnea).
In addition, in our bioprocess business, we will address the area of next-generation pharmaceuticals such as gene therapy, celltherapy, regenerative medicine, and next-generation vaccines to further improve the safety and productivity of pharmaceuticalformulations.

13Asahi Kasei Group Sustainability Report 2023

Related information
Medium-term Management Plan
We will strive to further improve our corporate value through the implementation of our medium-term management plan.

14

Asahi Kasei Group Sustainability Report 2023

Sustainability Management
Policies and Framework

Initiatives and Member
Organizations We
Participate In

Materiality and SDGs

Relationships with
Stakeholders

In 2021, to further promote initiatives aimed at making a sustainable society a reality, we established the Asahi Kasei Group
Sustainability Policy.

Asahi Kasei Group Sustainability Policy
The Asahi Kasei Group is contributing to life and living for people around the world. We strive for two mutually reinforcing
aspects of sustainability: “contributing to sustainable society” and “sustainable growth of corporate value.” By creating
value for “contributing to sustainable society” we seek to gain high earnings that lead to “sustainable growth of corporate
value" which enables us to make further contributions in a virtuous cycle.
In order to achieve this, we pursue the optimal corporate governance while practicing the following.

Value creation through contribution to sustainable society
Resolving issues for People and the Earth through our high value-added businesses (Care for People, Care for Earth)
Leveraging our strengths of diversity and capability to change for the creation of value (Connect, Communication,
Challenge)

Responsible business activities
Complying with laws/regulations and respecting international standards regarding business activities (Compliance)
Prioritizing ESH (environment, safety, and health), human rights, and quality assurance throughout all of our activities
Performing appropriate information disclosure and dialogue with our stakeholders

Empowerment of personnel
Respecting diversity and inclusion
Encouraging each employee’s growth, performance, and challenging spirit
Asahi Kasei Group Sustainability Policy （131.4KB）

15

Asahi Kasei Group Sustainability Report 2023

Our Group Mission is "contributing to life and living for people around the world," and we have grown by continually contributing tosolutions for society. Our commitment has remained constant ever since our founding with the aim of improving people’s standardof living.
Today, discussions about achieving sustainability are taking place around the world. Since sustainability is a challenge thatconcerns people and the global environment, we believe that the pursuit of “living in health and comfort” and “harmony with thenatural environment” as set forth in our Group Vision will lead to sustainability.
"Sustainable growth of corporate value" in conjunction with "contributing to sustainable society" is also important. "Contributing tosustainable society" leads to earnings which enhance the corporate value of the Asahi Kasei Group, which in turn enables further"contributing to sustainable society."
To make this virtuous cycle a reality, we will strive to create value by contributing to a sustainable society, conduct our businessactivities in a responsible manner, and promote the empowerment of our employees based on our approach of “Care for People,
Care for Earth.”
Our ultimate aim is to continue to proactively contribute to the world as a leader in solving challenges for society, carrying on thecommitment we have had since the founding of our company.

Message from the Head of Sustainability Strategy Planning

The Asahi Kasei Group aims to achieve two aspects of sustainability in a virtuous cycle: contributing to sustainable society
and sustainable growth of corporate value. The basic approach behind this is summarized in our Sustainability Policy.
Based on responsible business activities in terms of environmental conservation, process safety, occupational health andsafety, quality assurance, respect for human rights, and compliance with laws and regulations, we strive to provide value inour products and services for a sustainable society. The SDGs were adopted at the United Nations Summit in 2015, and wehave already passed the halfway mark to the target year of 2030. Although the world's progress has been disrupted by the
pandemic, natural disasters, and conflicts and tensions between nations during this time, the goals have not changed.
While keeping an eye on the issues facing the world, the Asahi Kasei Group strives to use its diverse technologies andbusinesses to create new things, so that we can help solve these issues.
I look forward to your continued understanding and support going forward.
Tatsuhiko Tokunaga
Executive Officer
Senior General Manager, Sustainability Strategy Planning Dept.
Asahi Kasei Corp.

Management Framework
The Asahi Kasei Group considers sustainability as a pillar of management and incorporates it into both its medium-term and annual
management plans, in addition to discussing it at Board of Directors meetings. We have also established a Sustainability Committee
to promote sustainability group-wide.
The Sustainability Committee consists of the President, Executive Officers for Business Sectors, and Executive Officers for businessadministration and technology functions, and is responsible for disseminating information, orienting sustainability-related activities,
and so on. The Sustainability Committee coordinates with the Risk Management & Compliance Committee, the ESH & QA
Committee, and the DE&I Committee, which all handle more technical and specific matters.
All four of these committees are chaired by the President of Asahi Kasei. We have also established the Human Rights Committee
and the Global Environment Committee as subcommittees of the Sustainability Committee.

16Asahi Kasei Group Sustainability Report 2023

Framework for Sustainability Strategy (as of August 1, 2023)

17

Asahi Kasei Group Sustainability Report 2023

Sustainability Management
Policies and Framework

Initiatives and Member
Organizations We
Participate In

Materiality and SDGs

Relationships with
Stakeholders

Asahi Kasei Group efforts for the SDGs
Transforming our world: the 2030 Agenda for Sustainable Development was adopted by the UN Sustainable Development Summit in
September 2015. The agenda includes 17 Sustainable Development Goals (SDGs) and 169 targets such as ending poverty andinequality, and taking action on climate change.
Through its diverse array of businesses and technologies, the Asahi Kasei Group contributes to achievement of the SDGs inaccordance with the Group Vision of providing new value to society by enabling “living in health and comfort” and “harmony with
the natural environment.”18

Asahi Kasei Group Sustainability Report 2023

Asahi Kasei Group's Materiality

In fiscal 2017 we designated the priority issues and subjects to address as the materiality of the Asahi Kasei Group. Since then, as
climate change has progressed and sustainability-related trends have accelerated worldwide, we reviewed our materiality in May
2021 and added "Decarbonization" and "Circular economy" as matters of the highest importance.

Identifying Our Materiality
1. Identifying Issues
We referred to international guidelines including ISO 26000 and the GRI Standards, as well as the evaluation items used bymajor ESG evaluation organizations (FTSE, etc.), to identify issues according to the demands of societies and our mission,
vision, and values.
2. Determining the Impact
We assessed the level of impact on both society and the Asahi Kasei Group and mapped it onto two axes.
3. Evaluating Validity
We confirmed the validity of the plan by examining it from a variety of perspectives, such as through deliberations among
divisional managers, discussions with other companies, and interviews with outside directors.
4. Deliberation and Approval
After deliberation by the Management Council, the proposal was approved by the Board of Directors.
The relationships between this materiality and the sustainable development goals (SDGs) are shown in the following table. We willcontinue to advance our initiatives while incorporating the perspectives of various stakeholders.

19Asahi Kasei Group Sustainability Report 2023

Materiality List

Theme

Materiality

Coexistence with theEnvironment
We position initiatives
for the global
environment asimportant issues, and weare working on measures
regarding climatechange, preventing
pollution, developmentof a circular economy,
and other initiatives.
Using our diverse
technologies, we will
also develop materials
and products that
contribute to conserving
energy and reducing CO2
emissions.

Globalenvironment*

Related
SDGs

Supervisingorganization(Jointsupervision:
Sustainability
Strategy
Planning
Department)

Main KPIs

TargetResults

Strategic
Business Units
and Core
OperatingCompanies
Corporate
Research &Development

Environmental
Contribution
Products(1) At least
double ourGHG
reduction
contribution
by FY2030(compared to
FY2020)(2) Increasing the
proportion ofsales ofEnvironmental
Contribution
Products(total sales
excluding
Health Caresector)(1) FY2022:
20%
increase(2) FY2022:
32%

Decarbonization

Corporate ESH,
Strategic
Business Units,
and Core
OperatingCompanies
Corporate
Research &Development

GHG
emissions

FY2030: Reductionof 30% or more(compared to
FY2013)
FY2050: Carbon
neutralFY2022: 28%
reduction

Circular economy

Corporate ESH,
Strategic
Business Units,
and Core
OperatingCompanies
Corporate
Research &Development

―

―

―

20

Asahi Kasei Group Sustainability Report 2023

Theme

Materiality

Related
SDGs

Supervisingorganization(Jointsupervision:
Sustainability
Strategy
Planning
Department)

Main KPIs

TargetResults

Wastewater

Corporate ESH

Number ofaccidents
involvingenvironmental
pollution andnumber ofsignificant
issues

FY2022 Target:
Maintain zeroenvironmental
accidents andseriousenvironmental
incidents
Zero
environment
incidents (air,water, etc.)

FY2022 Results:
Environmental
pollution
incidents/significant
issues: None
Problems withwater, air quality,
etc.: 2
Freon leaks: 18

Industrial Waste

Corporate ESH―

FY2022 Target:
Reduce industrial
waste andpromote recycling
Ascertain
actual status ofplastic waste
generated andprocessed, andpromotethermalreductions
Plastic wasteconsigned tolandfill: 0 tons

FY2022 Results:
Ascertained current
amount of plastic
waste generated
and processed
based on the Act on
Promotion of
Resource
Circulation for
Plastics
Amount of plastic
waste consigned tolandfill: 1.5 tons,
target not achieved

Biodiversity

Corporate ESH

Awarenessraising
Activities

FY2022 Target:
Promotepreservation of
biodiversity
Promoteinitiatives inline with thenext National
Biodiversity
Strategy ofJapan

FY2022 Results:
Participation in the
30by30 Alliance anddemonstration
project forcertification of sites
coexisting withnatureHeld tree planting
and seed watching
events as an
initiative for
employees to getcloser to nature
with 444 MMP
awarded21

Asahi Kasei Group Sustainability Report 2023

Related
SDGs

Supervisingorganization(Joint supervision:
Sustainability
Strategy Planning
Department)

ThemeMateriality

Living in health andcomfortWe will contribute tohealthy andcomfortable lifestyles
and affluent living with
our distinctive products
and technicalcapabilities.

Health and longevity*

Strategic Business
Units and Core
OperatingCompanies
Corporate Research& Development

―

―

―

Comfortable life*

Strategic Business
Units and Core
OperatingCompanies
Corporate Research& Development

―

―

―

Basic Activity
We will strengthen thebase for businessdevelopment, leading to
the creation of newvalue.

Corporate
Governance

General Affairs

Effectivenessassessment
andimprovement――

Compliance/sincerity

General Affairs

―

―

―

Risk Management

General Affairs

―

―

―

Safety/quality

Corporate
ESH/Corporate
Quality Ensurance

Major
security
incidents
Disabling
injuryfrequency
rate

FY2022 Target:
Zero serious
industrial
accidents
Zero industrial
accidents
Industrial
accident
intensity: 0.5
or less(average)

FY2022 Results:
Seriousindustrial
accidents:
None
Industrial
accidents: 2
Industrial
incident
intensity: 1.58

Human rights

Human
Resources/Corporate
Procurement &Logistics―――

Human Resources

Human Resources

―

―

―

22

Main KPIs

TargetResultsAsahi Kasei Group Sustainability Report 2023

Theme

Materiality

Diversity

Related
SDGs

Supervisingorganization(Joint supervision:
Sustainability
Strategy Planning
Department)
Human Resources

Main KPIs

TargetResults

Proportion of
women inmanagerial
positions whoplay a leadingrole

Proportion of
women working
as managers andGroup Masters
FY2030 Target:
10%

Proportion of
women working
as managers andGroup Masters
June 2023 result:
3.9%

Number ofGroup
Masters

FY2024 Target:
360

2022 Result: 294

Supply chain
management

Corporate
Procurement &Logistics

Administered
CSR
Procurement
Questionnaire――

Communication
with stakeholders

Investor
Relations/Human
Resources/General
Affairs and others

―

―

―

Community
fellowship

Corporate
Communications

Amount ofactivity (inmonetaryterms)――*Contribution through business

23

Asahi Kasei Group Sustainability Report 2023

Sustainability Management
Policies and Framework

Initiatives and Member
Organizations We
Participate In

Materiality and SDGs

Relationships with
Stakeholders

Participation in initiatives (major initiatives)
The Asahi Kasei Group supports the United Nations Global Compact.
UN Global Compact
Global Compact
Task Force on Climate-related
Financial Disclosures (TCFD)

TCFD was established by the Financial Stability Board (FSB) in 2017. Asahi Kasei
endorses the TCFD Recommendations published by the TCFD and has announced
specific initiatives.
TCFD
The GX League is an initiative led by the Ministry of Economy, Trade and Industry(METI) involving efforts to transform the overall economic system through measures
such as decarbonization and carbon neutrality. Asahi Kasei is a member of the GX
League.

GX League

Challenge Net Zero Carbon
Innovation(Challenge Zero)

Clean Ocean Material Alliance(CLOMA)

GX League
Challenge Zero is an initiative promoted by the Japan Business Federation (Keidanren)in coordination with the Japanese government to support companies and groups in theirefforts to achieve a decarbonized society.
Asahi Kasei supports this initiative and has announced specific efforts and policies:
Challenge Zero
The Clean Ocean Material Alliance (CLOMA) is a platform established to accelerateinnovation by strengthening collaboration among a wide range of stakeholders acrossindustry sectors amid a need to implement worldwide initiatives to overcome the marine
plastic litter problem, a global-scale challenge.
Clean Ocean Material Alliance24

Asahi Kasei Group Sustainability Report 2023

Battery Association for Supply
Chain (BASC)

RE100

Keidanren Biodiversity
Declaration Initiative

Pinfa (Phosphorus, Inorganic &Nitrogen Flame Retardants
Association)

Clean Fuel Ammonia Association

Japan Hydrogen Association

The Battery Association for Supply Chain (BASC), established as a general incorporated
association on April 1, 2021, is an organization engaged in activities such as theinternational standardization of the battery supply chain (industries related to battery
materials, components, and raw materials) and the creation of a battery ecosystem,with the aim of achieving a decarbonized society.

BASC
RE100 is an international collaborative initiative consisting of companies committed torunning their business operations on 100% renewable energy. Asahi Kasei Homes is amember of this initiative, and it has announced specific targets and is working toachieve them.

RE100
The Keidanren Biodiversity Declaration Initiative is a support effort by the Japan
Business Federation (Keidanren) to promote autonomous, active efforts by companies
to partake in biodiversity preservation activities, with the aim of achieving harmony
between the environment and the economy.
Asahi Kasei supports this initiative and has announced specific efforts and policies.

Keidanren Biodiversity Declaration Initiative
Through Asahi Kasei Europe GmbH , its European headquarters, Asahi Kasei has
become the first Japanese resin manufacturer to join Pinfa (Phosphorus, Inorganic &Nitrogen Flame Retardants Association), an organization dedicated to improving thesafety and lowering the environmental impact of both non-halogenated flame
retardants and plastic products that use non-halogenated flame retardants.

Pinfa
Ammonia shows promise as an energy carrier for hydrogen. This association aims toestablish a value chain from supply to utilization of CO2-free ammonia throughtechnology development/evaluation, economic evaluation, policy recommendations,international collaboration, and other efforts.

Clean Fuel Ammonia Association
The Japan Hydrogen Association advances global collaboration in the hydrogen field aswell as the creation of hydrogen supply chains.
As a chemical manufacturer that utilizes hydrogen, Asahi Kasei will take an active rolein offering proposals in the Association's working group activities with regard to issues
that should be addressed to generate and expand demand for hydrogen.

Japan Hydrogen Association

25

Asahi Kasei Group Sustainability Report 2023

Hydrogen Council

The Hydrogen Council is a global initiative that aims to promote the use of hydrogen toencourage the transition to clean energy for the realization of a sustainable society. As
a Steering Member, Asahi Kasei works together with various companies andorganizations in the supply chain, helping to promote the use of hydrogen while building
a future business.

Hydrogen Council

30by30 AllianceBusiness Call to Action (BCtA),a multilateral alliance led by theUnitedDeclaration for Partnership
Building

White Logistics Movement

Asahi Kasei and Asahi Kasei Homes are participating in the 30by30 Alliance for
Biodiversity, a program established by the Ministry of the Environment to conserve
natural environments, with the goal of conserving biodiversity in 30% of Japan’s landand sea areas by 2030.

30by30 Alliance
Nations Development Programme (UNDP), challenges companies to advance corebusiness activities that contribute to the achievement of the Sustainable Development
Goals (SDGs). Asahi Kasei joined with an initiative to support the fiber industry in India
through the creation of a comprehensive value chain for Bemberg™ cupro.

Business Call to Action (in Japanese)
In 2022, Asahi Kasei endorsed the Declaration for Partnership Building in support of theCouncil for Promoting Partnership Building to Open Up the Future, promoted by the
Cabinet Office, the Small and Medium Enterprise Agency, and other organizations.
Asahi Kasei Homes, Asahi Kasei Pharma, and Asahi Kasei Medical have alsoannounced their endorsement of the Declaration for Partnership Building.

Declaration for Partnership Building portal site (in Japanese)
The White Logistics Movement is aimed at ensuring stability in logistics needed forpeople's daily lives and industrial activity and contributing to economic growth inresponse to the truck driver shortage, which continues to intensify. The Ministry ofLand, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade andIndustry, and the Ministry of Agriculture, Forestry and Fisheries are the advocates of the
movement. Asahi Kasei has made a statement of voluntary action endorsing the
movement and is working to improve logistics.

White Logistics Movement (in Japanese)

Membership in organizations (main organizations)
Name of organization

Asahi Kasei's role

Japan Business Federation (Keidanren)

Vice Chair
Chair of Environment Committee
Chair of Committee on Social Security

Japan Chemical Industry Association (JCIA)

Director
26

Asahi Kasei Group Sustainability Report 2023

Sustainability Management
Policies and Framework

Initiatives and Member
Organizations We
Participate In

Materiality and SDGs

Relationships with
Stakeholders

Relationships with Stakeholders
The Asahi Kasei Group’s business operations depend on relationships of trust with our stakeholders. We believe that corporate
value is raised by understanding the requirements and meeting the expectations of various stakeholders such as customers,
shareholders and investors, business partners, local communities, the general public, and employees.
We provide many opportunities for communication to enable our business operations to be improved through dialog withstakeholders.

Communication with stakeholders
Basic premises

Main opportunities forcommunication

Customers

We believe that it is by maintaining
customer satisfaction and providing
reliable and enjoyable products andservices that we contribute to society.

Face-to-face discussion bymarketing and sales personnel
Providing product and service
information on websites
Taking inquiries via telephone,website, etc.

Shareholders and investors

We strive to disclose information in atimely and fair manner to enable ourdomestic and international investors togain an accurate understanding of the
Asahi Kasei Group.

Briefings and meetings withsecurities analysts and institutional
investors
Seminars for individual investors
Website disclosure of information
Taking inquiries via telephone,website, etc.
Shareholders meeting

Main stakeholders

27

Asahi Kasei Group Sustainability Report 2023

Basic premises

Main opportunities forcommunication

Suppliers

A relationship of mutual trust with our
suppliers is fostered through fair andprincipled purchasing practices basedon regulatory compliance and respect
for the environment and human rights.

Safety discussion forums
CSR Procurement Questionnaire
Whistleblower System (Compliance
Hotline)Local communities and the generalpublicWe work to honor and respect the local
culture of each community where ouroperations are based, and to maintaineffective dialog and communication
with community members.

Periodic community dialog meetings
Community outreach initiatives

Employees

The Asahi Kasei Group considers
fulfilling and satisfying working
conditions and workplace culture, inwhich employees feel motivated toachieve and take pride in their career,
to be a key to business performance.

Training and interviews
Discussion and interaction withmanagement
Internal magazine and intranet
Whistleblower System (Compliance
Hotline)Employee awareness surveys, etc.

Main stakeholders

28Asahi Kasei Group Sustainability Report 2023

Contribution through Business Activities
In fiscal 2022, the Asahi Kasei Group launched its three-year Medium-term Management Plan 2024 focused on the theme "Be a
Trailblazer." In order to help create a sustainable society, we will work to solve diverse social issues through our business activities.
In our medium-term management initiative, we express the stance of the Asahi Kasei Group, which will continue contributing tosustainable development for people and the Earth going forward, in the phrase “Care for People, Care for Earth.” With this as aperspective on the provision of value that is shared throughout our business activities, we will create new value that leads to asustainable future in diverse locations and fields.

29

Areas of Contribution and Business Examples

Asahi Kasei Group Sustainability Report 2023

* Under development

Fields for provision of value
Material

Care for People

Care for Earth

Clean energy

Environment &EnergyBattery separators
Hipore™
Celgard™
Alkaline water electrolysis
system (green hydrogen)*Solar cell parts
Lightweight resins

Conservation of energy
and improvement of theenvironment
CO2 sensors
Water filtration modules
Ion-exchange membranes

Carbon neutrality
Next-generation CO2 chemistry*
New CO2 separation andrecovery system*
Mobility

Safety and reliability

Fuel efficiency

Airbag material
Alcohol sensor
Contactless pulse sensing*

S-SBR for tires
Weight-saving materials
Daramic™ lead-acid battery
separator

Comfortable space
Dinamica™ artificial suede
Low VOC material
Air conditioning CO2 sensors

30

EV/HEV
Lithium-ion battery (LIB)
separators
Hipore™
Celgard™
LIB-related materials
Lightweight resinsAsahi Kasei Group Sustainability Report 2023

Fields for provision of valueLife Material

Care for People

Care for Earth

Comfort and convenience

Food loss reduction andlow environmental impact

5G-related (glass fabric, etc.)
Regenerated cellulose fiber

HealthSaran Wrap™
Ziploc™
Water-washable printing plates

Pharmaceutical and foodadditives
UVC LEDs for disinfection
Homes

Home & Living

Safety andreliability/Comfort andhealthHebel Haus™ unit homes
Hebel Maison™ apartmentbuildings
High-quality pre-owned Hebel
Haus™ homes

31

Contribution to theenvironment
Net zero energy houses/solar
power generation systems, etc.
High-performance insulation

Asahi Kasei Group Sustainability Report 2023

Fields for provision of value
Health Care

Health Care

Care for People

Acute conditions (criticalcare and circulatory)
Recomodulin™ anticoagulant
Thermogard System™
Therapeutic apheresis
LifeVest™ wearable defibrillator

Chronic conditions(orthopedics and dialysis)
Teribone™ osteoporosis therapy
Reclast™ osteoporosis therapy
Kevzara™ rheumatoid arthritis
therapy
Dialysis products
Honeken™ – Bone Checkup
Project

Provision of safe
biopharmaceuticals
Planova™ virus removal filters
Bioprocess equipment
Next-generation antibody drug
contract development andmanufacturing organization(CDMO)
Biosafety testing contract
research organization (CRO)32

Care for EarthAsahi Kasei Group Sustainability Report 2023

Asahi Kasei Group's ESH & QA
ESH & QA Activities
The Asahi Kasei Group's operations span three sectors: Material, which
includes the electronics business and the chemicals business that handlechemical substances; Homes, which includes the construction materials
business; and Health Care, which includes the pharmaceuticals and medicalcare businesses. Having expanded into three sectors, we have renamed theactivities previously identified as Responsible Care* to ESH & QA
(Environment, Safety, Health, and Quality Assurance).
We remain committed to environmental protection, quality assurance, andhealth and productivity management through risk management andresponsible business activities to achieve comfortable workplaces inaccordance with our Group Vision of providing new value to society byenabling “living in health and comfort” and “harmony with the naturalenvironment,” as well as with the Group Mission of contributing to life andliving for people around the world.
* Responsible Care:
Advocated by the Japan Chemical Industry Association, represents the commitment
and initiative to secure and improve safety and environmental protection at every
step of the product life cycle through the individual determination andresponsibility of each firm producing and handling chemical products, together withmeasures to gain greater public trust through disclosure and communication.

33

Risk management and responsible business activitiesof the Asahi Kasei GroupAsahi Kasei Group Sustainability Report 2023

Message from the Executive Officer for ESH & QA

In May 2022 we celebrated the centennial of Asahi Kasei's founding. During the past hundredyears we continued sustainable growth by successively cultivating new fields of businesswith every employee passionately taking on challenges. We are now turning to newchallenges for the next hundred years together with 45,000 colleagues around the world.
The environment surrounding companies has been undergoing major changes with efforts for
decarbonization and greater awareness of companies' place in society. Asahi Kasei's
unchanging Group Mission is to contribute to life and living for people around the world. We
aim to achieve a virtuous cycle of two mutually reinforcing aspects of sustainability bycontributing to a sustainable society and achieving sustainable growth of corporate value.
While advancing transformation regarding "GDP" (Green, Digital, People) we are rolling out
various measures for environmental protection, quality assurance, and health andproductivity management as we provide reliable solutions to customers.
Safe and stable operation is a prerequisite for the virtuous cycle of sustainability we seek,
and essential for our existence as a going concern. As we have had serious accidents inrecent years, we are working to avoid recurrence by strengthening preventative measuresand curtailment measures, while fostering a culture of safety through our company-wide Life
Saving Actions program. With regard to greenhouse gas emissions, we are targeting a 30% ormore reduction of our own emissions by 2030 from the fiscal 2013 level, and aiming for thegoal of net-zero by 2050. Furthermore, we continue to advance the development of productsthat contribute to reduced emissions throughout society. We believe such measures will
enable us to provide high corporate value to our various stakeholders.

Masatsugu Kawase
Executive Officer for ESH &QAAsahi Kasei Corp.

PolicyESH & QA at the Asahi Kasei Group is guided by the following policy.

The Asahi Kasei Group ESH & QA and Health & Productivity Management Policy

Based on the Group Mission of “contributing to life and living for people around the world,” the Asahi Kasei Group gives theutmost consideration to health maintenance, operational safety, occupational health and safety, quality assurance, andenvironmental protection throughout the product lifecycle from R&D to disposal as preeminent management tasks in all
operations.
Based on health management activities, we advance and support efforts to maintain and promote the mental andphysical health of employees, while improving the organizational climate through the empowerment of individuals andinvigoration of organizations.
We strive for stable and safe operation while preventing workplace accidents and securing the safety of personnel andmembers of the community.
We flexibly anticipate the constantly changing needs of customers and society to create and provide products andservices with quality that ensures safety and security.
To counter climate change and preserve the global environment, we reduce the environmental burden of all operations.
In addition to maintaining legal compliance, we set self-imposed targets for continuous improvement, while performing
proactive information disclosure and communication to gain public understanding and trust.
Revised on July 11, 2022

34

Asahi Kasei Group Sustainability Report 2023

Management Framework

The management system of Asahi Kasei Group ESH & QA is maintained in accordance with our Group ESH & QA Management
Guidelines and other internal standards. We have an ESH & QA Committee which reports directly of the President to deliberateconcerning plans and their results. This committee also cooperates with the Sustainability Committee, which promotes
sustainability Group-wide. In addition, the ESH & QA Promotion Council sub-committee gathers regularly, and ESH & QA initiatives
are continuously improved with the repetition of Plan-Do-Check-Act (PDCA) cycles at the Regions and Works, business units, andGroup-wide.
Concerning ESH & QA management systems, we have obtained ISO 14001 environmental management system certification forenvironmental protection and an Occupational Health & Safety Management System (OHSMS) has been adopted for workplacesafety, hygiene, and health.
Regarding Quality Assurance, under the supervision of Corporate Quality Ensurance, each Strategic Business Unit and Core
Operating Company establishes a management system such as ISO 9001, working daily to reinforce quality assurance, to ensure
the provision of safe and reliable products and services to customers and society.
Regarding health and productivity management, our Health & Productivity Management Committee meets twice per year inprinciple, to formulate basic policy regarding health & productivity management, set targets, and evaluate results.

ESH & QA Committee Management Organization

35

ESH & QA Committee / ESH & QA Promotion Council
Environment,
Safety andQuality
Assurance
Committee

ESH & QA
PromotionCouncil

Asahi Kasei Group Sustainability Report 2023

Chair

Asahi Kasei Corp. President

Committee
Members

Asahi Kasei Executive Officer for ESH & QA, Asahi Kasei Corporate ESH Officer, Asahi
Kasei Corporate Quality Assurance Officer, Asahi Kasei ESH & QA Implementation
Manager, Asahi Kasei Senior General Manager of Corporate ESH, Asahi Kasei Senior
General Manager of Corporate Quality Ensurance, General Manager of Corporate Healthand Productivity Management, Core Operating Company ESH & QA Implementation
Managers

Observers

Asahi Kasei Audit & Supervisory Board Members, persons designated by the Committee
Chair

Secretariat

Corporate ESH, Corporate Quality Ensurance

Frequency of
meetings

Once per year

Chair

Executive Officer for Asahi Kasei ESH & QA

Committee
Members

Asahi Kasei Corporate ESH Officer, Asahi Kasei Corporate Quality Assurance Officer,
Asahi Kasei Senior General Manager of Corporate ESH, Asahi Kasei Senior General
Manager of Corporate Quality Ensurance, General Manager of Corporate Health andProductivity Management, Asahi Kasei ESH & QA Promoters, Core Operating Company
ESH & QA Promoters

Secretariat

Corporate ESH, Corporate Quality Ensurance

Frequency of
meetings

4 times per year

ESH & QA education and training
In order to ensure the advancement of ESH & QA activities, the Asahi Kasei Group conducts practical ESH & QA education andtraining concerning basic knowledge of and theories about ESH & QA. The training program applies to all key personnel who
implement ESH & QA, including EHS managers and production managers of factories and manufacturing departments, as well as
first-line managers and candidates for those positions, group leaders of research departments, and EHS personnel.
Each fiscal year, we provide training on five subjects (general ESH activities, employee health, process safety, environmental
protection, and occupational health and safety) to newly appointed employees over a total of two days. In fiscal 2022, a total of 95
people took part in approximately one month of self-study and two days of online lectures.
In addition, with the goal of improving the Group's ESH & QA level, a training course for assistant chiefs that was formally initiatedin fiscal 2012 continues to be held and improved while incorporating feedback. In fiscal 2022, a total of 210 people took part in theroughly one month self-study course and one day of online lectures.
Regarding QA training, we have held the Quality Assurance Forum since fiscal 2017 as training for core personnel involved in QA.
Over a six-month period, selected younger and mid-level employees across the Group attend lectures by outside experts (mainly
university professors at the forefront of the Japanese Society for Quality Control) and join in group discussions. In fiscal 2021, 55
employees took part.
36

Asahi Kasei Group Sustainability Report 2023

Regarding chemical substances control and product safety, various training programs are held throughout the Group each year. In
fiscal 2021, nine different curriculums were implemented. Especially with respect to Japan's Chemical Substances Control Law,
Industrial Safety and Health Act, and Poisonous and Deleterious Substances Control Law, basic training is continually held several
times each year, with some 800 employees participating in fiscal 2021.
We will continue to promote education and training to meet various needs both inside and outside the company.

ESH & QA Conference
The Asahi Kasei Group held annual RC Conferences, at Asahi Kasei Corp., Core Operating Companies, and each Region. The
conferences were held to share information and revitalize RC activities by reporting on their status, holding presentations on
activities, listening to lectures by experts invited from outside the company, and presenting Safety Awards.
Renamed the Asahi Kasei ESH & QA Conference in fiscal 2022, the event took place in December at the conference venue andonline with 2,300 participants, with the aim of revitalizing environmental safety, quality assurance, and health and productivity
management promotion activities and sharing information.

Asahi Kasei President Koshiro Kudo gives the opening remarks at
the 2022 ESH & QA Conference

Special lecture by Mr. Isao Endo, CEO of SEANA Corporation, an
expert on workplace skills and organizational culture reform37

Asahi Kasei Group Sustainability Report 2023

Organizations implementing ESH and QA Activities[Japan]Prefecture
Gunma

Ota

Business category
Chemicals

IbarakiKasamaChemicals

Location

Sakai

Construction Materials

Plant, laboratory, or department
Gunma Plant

Molded plastic containers

Asahi Kasei Metals Ltd.

Tomobe Plant

Aluminum paste

Asahi SKB Co., Ltd.
Asahi Kasei Construction Materials
Corp.

-

Explosive devices

Sakai Plant

Autoclaved aerated concrete panels

Company
Asahi Kasei Pax Corp.

Main products/business line

Neoma Foam Plant

Phenolic foam insulation panels

Construction Materials R&D Dept.

Improvement of construction and insulation materials and development of new products

Sakai Kako Co., Ltd.

-

Construction materials processing

Tochigi

Mibu

Chemicals

Asahi Kasei Color Tech Co., Ltd.

Mibu Plant

Plastic coloring & compounding

SaitamaKamisato

Chemicals

Asahi Kasei Techno Plus Co., Ltd.

Saitama Plant

Molded plastic products

Ageo

Chemicals

Asahi Kasei Pax Corp.

Ageo Plant

Film lamination

Kawagoe

Health Care

Med-Tech Inc.

-

Manufacture and sale of medical devices

Yamanashi

Fujiyoshida

FibersFuji Seisen Co., Ltd.

-

Dyeing and finishing of yarns and fabrics

Chiba

Chiba

Chemicals

Asahi Kasei Corp.

Chiba Plant

Acrylic resin and polystyrene resin

Asahi Kasei Color Tech Co., Ltd.

Compound Prod. Control Dept.
Development of compound production technology, support for processing facilities
Xyron Dev. Dept., Leona Plastics Dev.
Applied research for performance plastics and plastic processing
Dept.
Sodegaura Plant
R&D for plastic compounding technology

PS Japan Corp.

Chiba Plant

Product management and production technology development for polystyrene

Asahi Kasei Energy Service Corp.

-

Operation of power plant of Nakasode Clean Power Corp. and Shin Nakasode Power Corp.

Electronics

Asahi Kasei Corp.

Electronics & Functional Products Div. R&D for plastic optical fiber

Asahi Kasei EMS Co., Ltd.

Chiba Plant

Plastic optical fiber

OthersAsahi Kasei Advance Corp.

Kashiwa PDC

Construction materials processing

Chemicals

Asahi Kasei Home Products Corp.

-

Development and sale of cling film and other household productsElectronics

Sun Delta Corp.
Asahi Kasei Foundation Systems Co.,Ltd.

-

Sale of synthetic resin products

Tokyo

Tokyo

Construction Materials
OthersKanagawa

Kawasaki

Chemicals

Shizuoka

Fuji

Installation of piles-

Asahi Kasei Create Co., Ltd.

-

Trading company handling fibers, resins, chemicals, construction materials, etc. of Asahi
Kasei
Management and sales of real estate, insurance agency, subcontracted office work

Asahi Kasei Amidas Co., Ltd.

-

Personnel placement, agency and training; ISO consulting

Asahi Kasei Ability Corp.

-

Printing, bookbinding, and office work

Asahi Research Center Co., Ltd.

-

Information and analysis

Asahi Kasei Benefits Management Corp. -Company housing, recreational facilities

Asahi Kasei Corp.

Methyl methacrylate, cyclohexyl methacrylate, acetonitrile

Monomers Prod. Dept.
Latex Prod. Dept.

Styrene–butadiene latex

Synthetic Rubber Prod. Dept.

Synthetic rubber, elastomer, utilities (electricity, steam, water)

Acrylic Plastics Prod. Dept.

Acrylic resin

OthersAsahi Kasei Engineering Corp.

Ion Exchange Membranes Prod. Dept. Ion–exchange membranes
Creation of new high performance materials, R&D for performance products and systems,
R&D units
applied research for plastics and plastic processing
R&D Dept.
Polystyrene R&D
Development of performance polymer, resin processing technology, application
Sustainable Polymers Lab.
development
Design, installation, development, inspection, and maintenance of facilities, development of
information systems
Plant, equipment, process engineering, and related work/development

R&D

Asahi Kasei Corp.

Informatics Initiative

Homes

Asahi Kasei Jyuko Co., Ltd.

Atsugi Prod. Dept.

Assembly of steel frames and processing of insulation for homes

Chemicals

Asahi Kasei Corp.

Microza Plant

Filtration membranes and modules

Homes

Asahi Kasei Homes Corp.

Housing Tech. R&D Labs.

R&D to actualize and advance the Long Life Home

Health Care

Asahi Kasei Pharma Corp.

Fuji Pharmaceuticals Plant

PS Japan Corp.

KawasakiAtsugi-

Asahi Kasei Advance Corp.

R&D

Asahi Kasei Corp.

OthersAsahi Kasei Engineering Corp.

Business support by informatics, promotion of digital transformation

Fuji Power Supply Dept.

Electronics

Asahi Kasei Medical Co., Ltd.

Bioprocess Div./Product Dev. Dept.

Asahi Kasei Corp.

Photoproducts Plant
Electronics Materials Plant

Photosensitive polyimide production and development

Fuji 2nd Plant

Photosensitive dry film, fuel cell materials

WGF Project

Optical materials and components

R&D Planning and Business Dev.

Development of products in the Material sector

UVC Project

R&D units

Development of UVC LEDs
Design, installation, development, inspection, and maintenance of facilities, development of
information systems
Development of products in the Material sector

Asahi Kasei Epoxy Co., Ltd.

Fuji Plant

Epoxy curing agent

Asahi Kasei Microdevices Corp.

R&D Ctr.

R&D for compound semiconductors

Corporate Production Tech.

OthersR&D

Ohito

Health CareFab 3

Wafers of Hall elements and infrared sensors

Asahi Kasei Engineering Corp.

-

Design, installation, and development of facilities, development of information systems

Asahi Kasei Create Co., Ltd.

-

Insurance agency

Asahi Kasei Amidas Co., Ltd.

-

Training, consulting, personnel placement

Asahi Kasei Ability Corp.

-

Delivery of mail, guidance for obtaining qualifications and training

Asahi Kasei Benefits Management Corp. -Management of benefits

Asahi Kasei Corp.

Analysis & Simulation Ctr.

Analysis and computer simulation

Energy Solutions Ctr.

Medium to long term R&D, advancement of synergy and creation of new business

Healthcare R&D Ctr.

Health Care sector R&D (diagnostic reagents, regenerative medicine, etc.)

Asahi Kasei Pharma Corp.

Advanced Materials Research Lab.

R&D for technologies and products related to Performance Materials

Ohito Pharmaceuticals Plant

Pharmaceutical intermediates

Ohito Diagnostics Plant

Diagnostic enzymes, diagnostic reagent kits

Pharmaceuticals Research Ctr.
OthersUtilities (electricity, steam, water)
Pharmaceutical intermediates
Development of filters and absorbents for separation and purification in manufacture ofbiopharmaceuticals
Liquid photosensitive resin, photosensitive printing plates

New pharmaceuticals R&D

Asahi Kasei Benefits Management Corp. -Management of benefits

Toyo Kensa Center Co., Ltd.

-

Measurement, evaluation, analysis, clinical testing

Asahi Kasei Create Co., Ltd.

-

Insurance agency

Nagoya Pharmaceuticals Plant

Pharmaceuticals

Hozumi Plant

Autoclaved aerated concrete panels-

Construction materials processing

-

Aichi

MiyoshiHealth Care

Gifu

HozumiConstruction Materials

Asahi Kasei Pharma Corp.
Asahi Kasei Construction Materials
Corp.
Hozumi Kako Co., Ltd.

Fukui

EchizenFibersKyokujitsu Textile Mills Co., Ltd.

Fukui

OthersAsahi Kasei Advance Corp.

-

Asahi Kasei Advance Fukui Corp.

-

Woven fabrics
Trading company handling fibers, resins, chemicals, construction materials, etc. of Asahi
Kasei
Processing of industrial materials and nonwovens

Asahi Kasei Advance Corp.

Kanazu Logistics Center

Storage of fiber products

Awara

Others38

Asahi Kasei Group Sustainability Report 2023

Shiga

Moriyama

Chemicals

FibersMie

Osaka

Asahi Kasei Corp.

Moriyama Power Supply Dept.

Utilities (electricity, steam, water)

Hipore Plant

Microporous membrane

Hipore R&D Dept.

Development of electronic and energy–related materials

Asahi–Schwebel Co., Ltd.

Moriyama Plant

Glass fabricAsahi Kasei Corp.

Spunbond Plant

Spunbond
Elastic polyurethane filament

R&D Lab. for Applied ProductApparel and industrial functional textiles R&D

Electronics

Asahi Kasei Microdevices Corp.

Electronics Materials Plant Prod.Dept

Photosensitive polyimide

OthersAsahi Kasei Amidas Co., Ltd.

Moriyama OfficeContract work

Asahi Kasei Engineering Corp.

-

Design, installation, and development of facilities, development of information systems

Takashima

Chemicals

Asahi Kasei Corp.

Aibano Branch

Metal cladding

Higashiomi

Homes

Asahi Kasei Jyuko Co., Ltd.

Shiga Plant

Steel frames, roofing, insulation, opening panels

SuzukaChemicals

Asahi Kasei Corp.

Suzuka Plant

Cling film, plastic foam and film

Suzuka Sun Business Co., Ltd.

-

Plastic processing

Osaka

Sundic Inc.

Mie Plant

Polystyrene sheet

Chemicals

Asahi Kasei Finechem Co., Ltd.

Osaka Plant

OthersAsahi Kasei Advance Corp.

Ono Plant

Specialty chemicals
Trading company handling fibers, resins, chemicals, construction materials, etc. of Asahi
Kasei
Molded plastic containers

Monomers Prod. Dept. 1

Cyclohexanol, cyclohexane, cyclohexene, pyrolysis gasoline

Monomers Prod. Dept. 2

Acrylonitrile, methacrylonitrile, acetonitrile, styrene, polycarbonatediol

Hyogo

Ono

Chemicals

Asahi Kasei Pax Corp.

OkayamaMizushima

Chemicals

Asahi Kasei Corp.

Yamaguchi

Roica Plant

Iwakuni

Polymers Prod. Dept. 2

High density polyethylene, low density polyethylene, polyacetal

Polyolefins Development Dept.

R&D on polyolefins

Tenac Dev. Dept.

R&D on polyacetalPower Supply Dept.

Utilities (electricity, steam, water)

PS Japan Corp.

Mizushima Plant

Polystyrene

R&D

Asahi Kasei Corp.

Chemistry & Chemical Process Lab.

OthersAsahi Kasei Engineering Corp.

-

Construction Materials

Asahi Kasei AS Tech Co., Ltd.
Asahi Kasei Construction Materials
Corp.
Iwakuni Sun Products Co., Ltd.

Research on chemical processes and functional products
Design, installation, development, inspection, and maintenance of facilities, development of
information systems
Processing of polyethylene pipe

Iwakuni Plant

Autoclaved aerated concrete panels-

Construction materials processing

Fukuoka

Chikushino

Chemicals

Asahi Kasei Corp.

Chikushino Plant

Metal cladding

Oita

Oita

Chemicals

Asahi Kasei Corp.

Oita Plant

Defense explosives

Japan Elastomer Co., Ltd.

Oita Plant

Synthetic rubber, elastomer

Health Care

Asahi Kasei Medical MT Corp.

Sepacell Plant

Leukocyte reduction filters

Planova Oita Plant

Virus removal filters

Dialysis Products Plant

Artificial kidneys and other medical devices

Therapeutic Apheresis Plant

Therapeutic apheresis devices

Kumamoto
MiyazakiYatsushiro
Nobeoka/
Hyuga

OthersAsahi Kasei Advance Corp.

Yatsushiro Chemical Center

Storage of caustic soda

Chemicals

Asahi Kasei Corp.

Core Chemical Prod. Dept.

Manufacture of nitric acid, caustic soda, chlorine, hydrochloric acid, etc.

Saran™ Materials Prod. Dept.
Electrolysis System Manufacturing
Dept.
Ceolus Plant

Manufacture of vinylidene chloride resin and latex
Development and manufacture of electrolyzers for chlor-alkali, manufacture of polymers forion-exchange membranes
Microcrystalline cellulose

Leona Plastics & Materials Plant
Fastening Prod. Planning & Tech.
Dept.
Hyuga Chemicals Plant

AH salt, adipic acid, hexamethylenediamine, polyamide 66

Microporous membrane

Nobeoka Power Supply Dept.

Utilities (electricity, steam, water)

Asahi Kasei New Port Terminal Co., Ltd. -Receiving and storage of fuel and feedstocks

Nobeoka Plastic Processing Co., Ltd.

-Polyamide 66 compounding

Asahi Chemitech Co., Ltd.

-

Resin anchors, detonator housings/leads
Electricity and steam
Operation and facilities management of hydropower plants
Specialty chemicals

Nobeoka Pharmaceuticals Plant
Kayaku Japan Co., Ltd.

FibersElectronics

OthersMiyazakiCoating materials

Hipore Hyuga Plant

Asahi Kasei NS Energy Corp.
Asahi Kasei Hydropower Technoservice
Co., Ltd.
Asahi Kasei Finechem Co., Ltd.
Nobeoka Plant

Health Care

Resin anchors

Pharmaceutical intermediates

Tohmi Plant

Industrial explosives

Detonator Plant

Detonators

Asahi Kasei Medical Co., Ltd.

Medical Tech. and Materials Lab.

R&D for medical materials

Asahi Kasei Medical MT Corp.

Okatomi Plant

Artificial kidneys and other medical devices

Planova Plant

Virus removal filters

Leona Filament Plant

Nylon 66 filament

Bemberg Plant

Cuprammonium rayon, nonwoven cellulose filament

Asahi Kasei Corp.

Nonwovens Plant

Artificial suede, melt–blown and spunlace nonwovens

R&D Lab. for Fibers & Textiles Tech.

R&D for new fibers

Asahi Kasei Fibers Nobeoka Co., Ltd.

-

Cellulosic filament, synthetic nonwovens

Asahi Kasei Leona Filament Co., Ltd.

-

Nylon 66 filament

Asahi Cord Co., Ltd.

-

Processing of nylon 66 filament

Asahiozu Corp.

-

Processing of nonwoven cellulosic filament

Asahi Kasei Microdevices Corp.

Fab 1

Magnetic sensors

Asahi Kasei Microdevices Corp.

Fab 2

LSIs

Asahi Kasei Electronics Co., Ltd

Nobeoka Manufacturing

Magnetic sensors

Asahi Kasei Microsystems Co., Ltd

Nobeoka Manufacturing

LSIs

Asahi Kasei Technosystem Co., Ltd.

Nobeoka Plant

Plant diagnostic and environmental surveillance devices

Asahi Kasei EMS Co., Ltd.

Nobeoka Plant

Pellicles

New Asahi Services Co., Ltd.

-

Insurance agency, cellular phone sales, bowling alley
Design, installation, development, inspection, and maintenance of facilities, development of
information systems
Measurement, evaluation, analysis

Asahi Kasei Engineering Corp.

-

Toyo Kensa Center Co., Ltd.

Nobeoka Office

Asahi Kasei Benefits Management Corp. -Company housing, recreational facilities

Asahi Kasei Ability Corp.

-

Printing, bookbinding, and office work

Asahi Kasei Networks Corp.

-

IT-related business

Cable Media Waiwai Co., Ltd.

-

Cable TV

Asahi Kasei Advance Corp.

South Kyushu Office

Sale of pharmaceuticals (reagents)

R&D

Asahi Kasei Corp.

Fibers & Textiles Tech. Ctr.

R&D for fibers & textiles

OthersAsahi Kasei Advance Corp.

Miyazaki Chemical Center

Repackaging sodium hypochlorite and PAC

Note: This table lists plants, laboratories, and subsidiaries. Although ESH & QA activities are implemented in sales offices and other offices not performing production activities, these are not listed here.
"Others" covers services, engineering, and other business categories.

39

Asahi Kasei Group Sustainability Report 2023

[Overseas]
Regions

Countries/Cities

Holding company of ZOLL Medical Corporation
Coloring and compounding of performance resin

Asahi Kasei Plastics America, Inc.

Compounded performance resin operations

Asahi Kasei Asaclean Americas Inc.

Sale of purging compound

Crystak IS.Inc.

Development of aluminum nitride substrates and UVC LEDs

AKM Semi Conductor,Inc.

Sale of LSIs

Homes

Asahi Kasei Homes North America,Inc.

Holding company of housing business

Health Care

Asahi Kasei Bioprocess America, Inc.

Bioprocess equipment and systems

Chemicals

Asahi Kasei Plastics Mexico S.A. de C.V.

Sale of performance plastic compounds

Tongsuh Petrochemical Corp., Ltd.

Acrylonitrile, sodium cyanide, acetonitrile

Asahi Kasei Chemicals Korea Co., Ltd.

Sale of adipic acid

Asahi Kasei E-materials Korea Inc.

Lithium-ion battery separator

Asahi Kasei Microdevices Korea Corp.

Electronic devices marketing and technical support

Formosa Asahi Spandex Co., Ltd.

Spandex

Asahi Kasei Wah Lee Hi-Tech Corp.

Photosensitive dry film

Asahi-Schwebel (Taiwan) Co., Ltd.

Glass fabricAsahi Kasei Microdevices Taiwan Corporation

Electronic devices marketing support

Asahi Kasei EMD Taiwan Corp.

Sale of electronic materials

Asahi Kasei Microza (Hangzhou) Co., Ltd.

Industrial filtration membranes and systems

Hangzhou Asahikasei Spandex Co., Ltd.

SpandexHangzhou Asahikasei Textiles Co., Ltd.

Warp-knit spandex textiles

Electronics

Chemicals
Korea
Electronics
FibersTaiwanElectronics

Chemicals
Hangzhou

Guangzhou

FibersHealth Care

Asahi Kasei Medical (Hangzhou) Co., Ltd.

Hemodialyzers; sale of medical devices

Chemicals

Asahi Kasei Plastics (Guangzhou) Co., Ltd.

Sale of performance resin-

Asahi Kasei (China) Co., Ltd.

Investment and business support services

Asahikasei Plastics (Shanghai) Co., Ltd.

Sale of performance resin

Chemicals
Shanghai

Asia/
Oceania

ChangshuSuzhouZhangjiagang
BeijingHong Kong

Vietnam

Asahi Kasei Performance Chemicals Corp.

HDI-based polyisocyanate, polycarbonatediol

FibersAsahi Kasei Advance (Shanghai) Co., Ltd.

Processing and sale of fibers and textiles

Electronics

Asahi Kasei Microdevices (Shanghai) Co., Ltd.

Electronic devices marketing and technical support

Health Care

Asahi Kasei Bioprocess China (Shanghai)

Promotion of Planova and other bioprocess productsElectronics

Asahi Kasei Electronics Materials (Changshu) Co., Ltd.

Photosensitive dry film

Chemicals

Asahi Kasei Plastics (Changshu) Co., Ltd.

Processing and sale of synthetic resin

Chemicals

Asahikasei (Suzhou) Plastics Compound Co., Ltd.

Coloring, compounding, and sale of performance resin

Electronics

Asahi Kasei Electronics Materials (Suzhou) Co., Ltd.

Photosensitive dry film

Chemicals

Asahi Kasei POM (Zhangjiagang) Co., Ltd.

Polyacetal

Health Care

Asahi Kasei Transfusion Technology Co., Ltd.

Medical devices

Health Care

Asahi Kasei Pharma (Beijing) Co., Ltd.

Regulatory affairs and business support in China

Chemicals

Asahi Kasei Plastics (Hong Kong) Co., Ltd.

Sale of performance resin

FibersAsahi Kasei Fibers (H.K.) Ltd.

Promotion and marketing of fibers and textiles

Chemicals

Asahi Kasei Plastics Vietnam Co., Ltd.

Analysis and development of performance plastic parts using CAE technology

FibersAsahi Kasei Advance Vietnam Co., Ltd.

Fiber products

FibersAsahi Kasei Airbag Fabric Vietnam, Co., Ltd.

Fabric for airbags

Homes

Asahikasei Jyuko Vietnam Corp.

Steel-frame members

PTT Asahi Chemical Co. Ltd.

Acrylonitrile, methyl methacrylate, etc.

Asahi Kasei Plastics (Thailand) Co., Ltd.

Coloring and compounding of performance resin

Asahi Kasei Spunbond (Thailand) Co., Ltd.

Spunbond nonwovens

Asahi Kasei Advance Thailand Co., Ltd.

Processed yarn

Thai Asahi Kasei Spandex. Co., Ltd.

Spandex

Asahi Kasei Synthetic Rubber Singapore Pte. Ltd.

Synthetic rubber

Asahi Kasei Plastics Singapore Pte. Ltd.

Performance resin

Polyxylenol Singapore Pte. Ltd.

PPE powder

Chemicals
ThailandFibersSingapore

Business support services

Asahi Kasei Plastics North America, Inc.
USA

MexicoMain products/business line

Asahi Kasei America, Inc.
Asahi-Kasei Holdings US,Inc.

ChemicalsAmericasCompany

Business category-

Chemicals

India

-

Asahi Kasei India Pvt. Ltd.

Business support services

Australia

Homes

Asahi Kasei Homes Australia.Pty.

Holding company of McDonald Jones Homes Group

SwedenGermany
EuropeElectronics

Senseair AB

Provision of sensing solutions; development, manufacture, and sale of gas sensor modules-

Asahi Kasei Europe GmbHBusiness support services, sale of performance resin

FibersAsahi Kasei Spandex Europe GmbH

Spandex

Electronics

Asahi Kasei Microdevices Europe GmbHElectronic devices marketing and technical support

Asahi Kasei Medical Europe GmbH

Sale of medical devices, medical systems

Asahi Kasei Bioprocess Deutschland

Technical and sales support of bioprocess equipment

Electronics

Asahi Photoproducts (Europe) SA/NV

Sale of photopolymer, printing-plate making systems

Health Care

Asahi Kasei Bioprocess Europe SA/NV

Sale of virus removal filters

FibersAsahi Kasei Fibers Italia S.r.l.

Sale of cupro cellulosic fiber and nonwovens

Electronics

Asahi Photoproducts (UK) Ltd.

Sale of photopolymer, printing-plate making systems

Health Care
Belgium
Italy
United Kingdom

40

Asahi Kasei Group Sustainability Report 2023★★★Complete ★★Satisfactory ★Unsatisfactory

FY2022 ESH Objectives and Attainment
GeneralFY2022 ESH Objectives
Develop human resources specializing in ESH

Cultivate values of safety

FY2022 Results・Shared consensus on training plan for 2 new
graduates in fiscal 2023
・Established training department and training plan
・Executed Company-wide Life Saving Actions(LSA) program
・Related training, LSA program for construction,
confirmation of activity results, review of LSA
activities penetration

・Confirmed communication system with related
departments, Regions, Works, and core operatingcompanies, and shared reports with head office・Established system for responding to media inthe event of an emergency
Supporting improvements at each site (especially ・ Assigned local personnel for ESH in China
domestic independent plants and overseas
・ Continued separate audit interviews
plants)・ Participated in the U.S. EHS Council

Attainment★★

★★

Build an information sharing system in the eventof accident or disaster★★

★★

FY2023 ESH Objectives
・Assign to training department in April 2023
・Understand and follow up (succession plan) on
training
・Awareness survey at overseas sites performing
LSA activities
Deepen two-way communication between
management and workplaces
・Raise awareness by posting examples of LSA
activities on website
・Establish a communication system in the event ofan emergency and conduct reporting drills
・Implement media response training

・Confirm effectiveness of local personnel for ESH
in China
・Information exchange at the U.S. Council andsafety system support (formulate U.S. version ofbasic safety code of conduct)

Environmental Protection
FY2022 ESH Objectives

FY2022 Results

・ Maintain zero environmental accidents andserious environmental incidents
・ Zero environmental incidents (air, water quality,
etc.)
Reduce industrial waste and promote recycling
・ Identify the current situation regarding waste
plastic generation and disposal and promote
thermal reduction
・ Waste plastics consigned to landfill: zero・ No environmental contamination accidents orserious incidents occurred.
・ Incidents involving water/air quality or similar: 2
・ Freon leaks: 18
・ Ascertained current amount of plastic waste
generated and processed based on the Act on
Promotion of Resource Circulation for Plastics
・ Goal unmet with 1.5 tons of waste plastics
consigned to landfill

Attainment

Promote preservation of biodiversity
・ Promote initiatives in line with the next-term
National Biodiversity Strategy of Japan・ Participation in the 30by30 Alliance anddemonstration project for certification of sites
coexisting with nature
・ Held tree planting and seed watching events as
an initiative for employees to get closer to nature
with 444MMP awarded★★★

FY2022 Results

Attainment★★

★★

FY2023 ESH Objectives
・ Maintain zero environmental accidents andserious environmental incidents
・ Zero environment incidents (air, water quality,
etc.)
・ Reduce industrial waste and promote recycling
・ Reduce and recycle products and industrial waste
containing plastics
・ Reduce emissions by improving intensity levels,etc.
・ Improve recycling rate of products and industrial
waste containing plastics
Promote preservation of biodiversity
・ Promote initiatives in line with the next-term
National Biodiversity Strategy of Japan・Awareness activities for employees on biodiversity

Global Environmental Countermeasures
FY2022 ESH Objectives

・Improved accuracy of emission factors and・ Improve the accuracy of our calculations
calculation methods through third-party assurance
through third-party assurance
・Introduced GHG accounting system GGX to・ Construct new systems and monitor throughvisualize datavisualization and use of data
・Expanded scope of data collection at overseas
・ Improve the accuracy of our calculations,
including with regard to boundaries
offices・ Creation and followup of regular reporting under ・Implemented new reporting system
our new system
・Prepared for revisions to the Act on the Rational
・ Respond to revisions to the Act on the Rational Use of Energy and the Act on Promotion of Global
Use of Energy and the Act on Promotion of
Warming Countermeasures
Global Warming Countermeasures

★★★

★★★

FY2023 ESH Objectives
・ Improve the accuracy of our calculations throughthird-party assurance
・ Promote monitoring and data utilization throughthe operation of new systems
・ Improve the accuracy of our calculations,
including with regard to boundaries
・Promote measures in line with revisions to the Act
on the Rational Use of Energy and the Act on
Promotion of Global Warming Countermeasures

Process Safety
FY2022 ESH Objectives
Maintain a record of zero serious industrial
incidents

FY2022 Results
Serious industrial incidents: none

Attainment★★★

FY2023 ESH Objectives
Maintain a record of zero serious industrial
incidents

Maintain a record of zero industrial incidents

Industrial incidents: 2★

Maintain a record of zero industrial incidents

Industrial incident intensity of 0.5 or less(average)

Industrial incident intensity: 1.58★

Industrial incident intensity of 0.5 or less (average)

Workplace Safety and Hygiene
FY2022 ESH Objectives

FY2022 Results

No serious workplace injuries*
Serious workplace injuries: 2
The numerical targets are as follows, assuming
zero serious occupational accidents
Domestic employees:
Domestic employees:
Achieve rate of lost-worktime injuries of 0.1 or・ The rate of lost-worktime injuries was 0.19
less
Achieve severity rate of lost-worktime injuries of ・ The severity rate of lost-worktime injuries was
0.005 or less
0.009
Overseas employees:
Overseas employees:
Achieve severity rate of lost-worktime injuries of ・ The rate of lost-worktime injuries was 1.27
1.0 or less

* Accidental deaths and injuries resulting in permanent damage

41

Attainment

FY2023 ESH Objectives★

Zero deaths/lasting injuries
The numerical targets for lost time injuries otherthan the above are as follows
Domestic employees:
Achieve rate of lost-worktime injuries of 0.1 or
lessAchieve severity rate of lost-worktime injuries of
0.005 or lessOverseas employees:
Achieve severity rate of lost-worktime injuries of
0.9 or less★
★
★

Asahi Kasei Group Sustainability Report 2023

Environment
The Asahi Kasei Group will contribute to the achievement of a carbon neutral and sustainable world by reducing the environmental
impact of our business activities and improving the environment around the world through our businesses.

Environmental
Management
We have established a groupwide management system inrecognition of environmental
initiatives as importantmanagement tasks.

Climate Change
We implement measures thatdeal with climate change by
reducing greenhouse gas
emissions and developing
innovative technologies.

Biodiversity
We work towards thesustainable use of biologicalresources in our businessactivities while taking
biodiversity into account.

Environmental
Contribution Products
We define products that help
improve the environment
throughout their entire life
cycle as environmental
contribution products, and weare making efforts in thisarea.

Pollution Prevention andResource Circulation
We strive to use natural
resources and energy
efficiently throughout theentire life cycle of our
products, as well as achieve
resource circulation insociety.

42

Water Resource
Preservation
We strive to enhance water
use efficiency in our businessactivities while contributing
to the conservation of water
resources worldwide.

Asahi Kasei Group Sustainability Report 2023

Environmental Management
PolicyAs expressed in our Group Vision that includes "harmony with the natural environment," the Asahi Kasei Group places high priority
on environmental initiatives. The Group Policy regarding global environmental measures is shown below.

The Asahi Kasei Group's Global Environmental Policy
1. Building a low-carbon society(1) Taking into account Japan's Plan for Global Warming Countermeasures and Nippon Keidanren's "Proposal on
Japan's long-term growth strategy under the Paris Agreement," the Asahi Kasei Group aims for greenhouse gas
emissions related to its business activities to meet reduction targets by 2030.
(2) The Asahi Kasei Group will promote energy conservation across the full range of our business activities with the aimof preventing global warming and conserving limited resources.
(3) The Asahi Kasei Group will develop a plan to reduce CO2 (Scope 3) emissions from its supply chain.
(4) The Asahi Kasei Group will help create a low-carbon society incorporating our proprietary technologies, contributing
to the reduction of global greenhouse gas emissions by providing products, technologies, and services to the global
market.

2. Preserving water resources
The Asahi Kasei Group will contribute to preserving global water resources through our water purification membrane
module business, water recycling service business, and the sale of water quality monitoring equipment and wastewater
treatment products. It will measure the quantity of its water intake while striving to maintain and improve the efficiency of
its water usage.

3. Building a Circular Economy
The Asahi Kasei Group will promote the reduction of environmental impacts and the efficient utilization of resources andenergy throughout the entire life cycle in its business activities in order to contribute to a circular economy. Specifically, it
will promote the 3Rs of reduction, reuse, and recycling, and increase the usage of resources and energy with lower
environmental impacts as well as renewable resources and energy.

43Asahi Kasei Group Sustainability Report 2023

4. Achieving harmony with nature
The Asahi Kasei Group will give due consideration to the conservation of natural capital and biodiversity, and promote thereduction of environmental impacts of its business activities. We will also monitor and carefully manage our use of land andbiological resources.

5. Improve the level of management at our overseas plants
The Asahi Kasei Group will create monitoring items that enable environmental management practices equivalent to thoseat its plants in Japan.

6. Collaboration with our supply chain partners
The Asahi Kasei Group will proactively collaborate with members of its supply chain to undertake the abovementioned
activities.

Management System
The Group's global environmental countermeasures are part of our activities for ESH & QA, and we have established a management
system based on ISO 14001 requirements.
Please see below for our ESH & QA promotion framework.
Asahi Kasei Group's ESH & QA

Targets and results
Based on the Asahi Kasei Group's Global Environmental Policy, we promote activities with the following indicators and targets.
Regarding climate change measures, we have set greenhouse gas reduction targets to be met by fiscal 2030.

Quantitative indicators and targets of global environmental measures
1. Building a low-carbon society

GHG emissions
By 2050, carbon neutral
By 2030, emissions reduction of 30% or more (from fiscal 2013)
Clean power generation
Maintain use of biomass fuel at 60% or more by energy content in mixed combustion at the biomass power plant in
Nobeoka.

44

Asahi Kasei Group Sustainability Report 2023

2. Energy management target
Management target
Improve unit energy consumption by an annual average of at least 1% over a 5-year period.

3. Water resource preservation activity target
Our target is shown in the response to question W8.1a of the CDP Water Security Questionnaire 2023 posted on the Water
Resource Preservation page.
Click here to read our response concerning CDP Water Security 2023 （216.2KB）

Details of activities and achievements for fiscal 2022 are posted here.
FY2022 ESH & QA Program Targets and Attainments （44.3KB）

Environmental impacts
The diagram below describes the environmental impacts of business activities at Asahi Kasei Group plants.

Asahi Kasei Group (domestic) Main Environmental Impacts (FY2022)
Notes:
・ Energy consumption includes hydroelectric power generation (based on the Energy Saving Act conversion) Energy consumption including overseas
consumption is 5.3×1016J.
・ The conversion factors for electricity used to calculate energy consumption are 9.97 GJ/MWh for daytime, 9.28 GJ/MWh for nighttime, and 9.76
GJ/MWh for the other.
* Figures with have received independent assurance by KPMG AZSA Sustainability Co.,Ltd. (March 2024 updated)

Violations of Environmental Laws and Regulations, Fines, etc.
There were no violations or fines related to environmental laws and regulations in fiscal 2022.

45

Asahi Kasei Group Sustainability Report 2023

Climate Change
Responding to Climate Change

Disclosure based on TCFD Recommendations

Click here to read our response concerning CDP Climate Change 2023 （455.2KB）

Asahi Kasei Group's Carbon Neutrality Policy
In accordance with its Group Mission, the Asahi Kasei Group is committed to contributing to life and living for people around theworld. The Asahi Kasei Group has long been aware that climate change is a global issue that will have a significant impact on boththe natural environment and society, and we see it as our mission to use the scientific expertise we have cultivated since ourfounding to deal with this issue leveraging our combined strength.
In May 2021, the Asahi Kasei Group adopted a policy for carbon neutrality.

Greenhouse gas (GHG) emission targets for the Asahi Kasei Group
2050： Carbon neutral
2030： Emissions reduction of 30% or more (from fiscal 2013)** Scope 1 (direct GHG emissions) and Scope 2 (indirect emissions use of electricity, heat, and steam supplied by other companies), absolute
quantity

Initiative Policy
In addition to reducing GHG emissions from our own business activities, we believe that it is also important to help to reduce GHG
emissions in society through our diverse array of technologies and businesses to deal with climate change. We launched a Green
Solution Project in April 2021 to study creating new businesses for carbon neutrality.
In April 2022, we launched a Carbon Neutrality Project to share and discuss scenario analysis and consolidate efforts to achieve our2030 GHG emission reduction targets and carbon neutrality by 2050.
Regarding "Care for Earth," we are committed to addressing climate change issues group-wide, both in terms of (1) reducing theamount of GHGs emitted by our own business activities and (2) helping to reduce GHGs throughout society through our businesses
and technologies.

46

Asahi Kasei Group Sustainability Report 2023

Key Points of Effort for Carbon Neutrality

Two Initiatives for GHG Reduction

The Asahi Kasei Group's ESH & QA and Health Management Policy
The Asahi Kasei Group's Global Environmental Policy

Reducing GHG Emissions
Concrete GHG reduction measures and their projected impacts
We are targeting a reduction in GHG emissions by at least 30% by 2030 as compared to fiscal 2013, with a goal of becoming carbon
neutral by 2050. Measures will be advanced as described below.
In the first stage, by 2030 we aim to reduce our GHG emissions by approximately 300 thousand tons by adopting low-carbon
methods for in-house power generation, by 100 to 200 thousand tons through the purchase of non-fossil fuel power, and by 100 to
200 thousand tons by curtailing emissions from our manufacturing processes. We will also promote GHG emissions reductions
through transformation of our business portfolio, etc.
47

Asahi Kasei Group Sustainability Report 2023

In the second stage through 2050, we will work toward greening both electricity and steam and the introduction of innovative
processes through practical application of technologies developed by Asahi Kasei, such as alkaline water electrolysis and CO2
separation and recovery. In addition, we will promote further transformation of our business portfolio, etc., and move forward with
reductions toward attainment of our objectives.

GHG emissions

Scope 1 and 2 GHG emissions
All production sites of Asahi Kasei Corp. and its consolidated subsidiaries under management control are subject to calculation of
Scope 1 and Scope 2 GHG emissions of the Asahi Kasei Group, and GHG emissions from generation of electricity and steam soldoutside the Asahi Kasei Group are included.
In fiscal 2022, our Scope 1 GHG emissions were 2.83 million tons of CO2-eq , and Scope 2 GHG emissions were 0.83 million tonsof CO2-eq , bringing the total of Scope 1 and 2 to 3.67 million tons of CO2-eq . This is a reduction in GHG emissions ofapproximately 28% compared to the 5.11 million tons of CO2-eq released in the baseline year of 2013.
* Figures with have received independent assurance by KPMG AZSA Sustainability Co.,Ltd. (March 2024 updated)

GHG emissions**77.7% coverage (company sales included in GHG emissions
calculation / total consolidated sales x 100)

Global greenhouse gas emissions by segment (ESG Data)
Overseas greenhouse gas emissions by fiscal year (ESG Data)

48

Asahi Kasei Group Sustainability Report 2023

Global Scope 3 emissions*Global Scope 3 emissions* Figures with have received independent assurance by KPMG AZSA Sustainability Co.,Ltd. (March 2024 updated)* Scope 3 emissions: Greenhouse gases emitted indirectly by a company throughout its supply chain. The methods for calculating Scope 3 emissions
from Category 1, 5, 11 and 12 are described in Environmental data.

Scope 3 emissions by fiscal year (ESG Data)

Efforts to Reduce CO2 Emissions
Renewable energy
The Asahi Kasei Group has 9 hydroelectric power generation plants in the Nobeoka Region, which provided approximately 6% of thetotal electricity we used both in Japan and overseas. Generation of the equivalent amount of purchasing electricity would result inapproximately 60 thousand tons* of CO2 emissions annually.
We also have a biomass power generation facility.
* Using Japan's Ministry of Economy, Trade and Industry and Ministry of the Environment, Order No. 3 of 434g CO2/kWh.

Electricity sources, FY2022 (global)

The table below shows the amount of renewable energy purchased and generated.*1
Type of energy

Unit

FY2022

Hydroelectric power generation

MWh

106,289

Solar power generation

MWh

56

49

Asahi Kasei Group Sustainability Report 2023

Type of energy

Unit

FY2022

Biomass-based*2generation

MWh63,870Purchased non-fossil certificatesMWh18,305

Biomass-based*2steam

GJ

348,448*1 Hydroelectric power generation with no environmental value under the FIT system is excluded from the tally.
*2 The calculation is made by multiplying the amount of electricity and steam generated by the input ratio of biomass fuel in the co-combustion power
generation of biomass and coal.
* Figures with have received independent assurance by KPMG AZSA Sustainability Co.,Ltd. (March 2024 updated)

Using Renewable Electricity in the Homes BusinessAs part of its efforts to address climate change, Asahi Kasei Homes joined the RE100 Initiative in 2019, aiming to achievesustainable urban living with both decarbonization and resilience.
Asahi Kasei Homes has a target of procuring 100% of the electricity consumed for its business activities from renewable energy
sources, and is on track to achieve this in 2025, significantly sooner than the initial outlook of 2038.
Asahi Kasei Homes Sustainability

Domestic energy saving in logistics
The Asahi Kasei Group promotes environmentally friendly railway shipment.
Product shipments for our operations in Japan amounted to some 1.0 billion ton-kilometers in fiscal
2022―an 5% decrease from fiscal 2021―generating approximately 77 thousand tons of CO2 emissions―a
9% decrease. In cooperation with the transport firms contracted for shipment, a wide range of measuresare employed to reduce energy consumption and alleviate the environmental effects of physicaldistribution.
We have received Eco-Rail Mark certification in recognition of our preferential shipment of products byrail, an ecological mode of transport which results in lower CO2 emissions for a given weight and distancethan many other means of transportation.
CO2 emissions from product shipment (ESG Data)

Domestic promotion of low emission vehicles
The Asahi Kasei Group is phasing in low-pollution vehicles for use in marketing and within plant grounds. In fiscal 2022, some 91%
of company-owned vehicles were low-pollution vehicles.
Low-pollution vehicles (ESG Data)

Asahi Kasei green bondPlease see here for more details.
Asahi Kasei green bond （218.0KB）
Annual Reporting (fiscal 2020) （126.3KB）
Annual Reporting (fiscal 2021) （135.3KB）
Annual Reporting (fiscal 2022) （130.8KB）
50

Asahi Kasei Group Sustainability Report 2023

Climate Change
Responding to Climate Change

Disclosure based on TCFD Recommendations

Climate Change Initiatives (Disclosure based on TCFD1 Recommendations)
Awareness surrounding climate change
The IPCC’s2 Sixth Assessment Report, released in March 2023, pointed out that global average temperatures have already risen by
1.1°C since the Industrial Revolution, and that even if all national greenhouse gas (GHG) reduction targets are met, the Paris
Agreement's goal of keeping the temperature rise to less than 1.5°C by the end of this century will not be achieved. Against thisbackdrop, the G7 Ministers’ Meeting on Climate, Energy and Environment which was held in April 2023 issued a communiquesaying, “We underscore our commitment to implementing immediate, short- and medium-term action in this critical decade.”
The Asahi Kasei Group recognizes that there is a growing sense of crisis around the world over the progress of global warming, andthat policies for adaptation and mitigation are accelerating.

Asahi Kasei’s stanceOver the century since our founding, we have developed our business by challenging ourselves in response to the social issues thathave changed with the times, transforming ourselves in the process. At this time of great upheaval, when climate change is an issue
for the entire social system, we will continue to work toward the goal of a carbon-neutral society by 2050 while transforming ourbusiness portfolio and improving productivity through our medium-term management plan for fiscal 2024 focused on the theme “Be
a Trailblazer.”
Additionally, we will continue to steadily reduce our greenhouse gas emissions (Scopes 1 and 2), and further work to reduce
emissions throughout the entire supply chain, including Scope 3 emissions.
1 TCFD: Task Force on Climate-related Financial Disclosures. TCFD was established and its recommendations were officially announced by the

Financial Services Board in 2017.
2 Intergovernmental Panel on Climate Change

Governance
Asahi Kasei consider green transformation (GX), which focuses on initiatives related to climate change, to be an importantmanagement issue, and we are working toward GX by positioning it as one of the core subjects of our management strategy.
Our climate change policy and high priority concerns are deliberated on and determined by the Board of Directors, while specificmatters relating to these areas are deliberated on and determined by the Management Council, our decision-making body forbusiness execution.

51

Asahi Kasei Group Sustainability Report 2023

Main deliberations and decisions:
GHG emissions reduction targets, results, and measures
Medium-term management plan, progress/results, and measures
Investment plans (taking point of view regarding GHG emissions into account), etc.
In formulating the medium-term management plan and annual business plans, business units and corporate divisions discussmatters related to GX, including emissions reductions, and after group-wide plans are aggregated, proposals are made to theManagement Council and Board of Directors for deliberation and decision-making.
In order to promote these decisions by the Board of Directors and Management Council at a business level, we have a Sustainability
Committee chaired by the President, where members of executive management share and discuss issues concerning sustainability,
including climate change. Results of Sustainability Committee meetings are reported to the Board of Directors, which discusses
topics including appropriate company-wide initiatives.
Additionally, in fiscal 2022, we considered scenarios for achieving our GHG reduction targets within a dedicated project (Carbon
Neutrality Project) under the direction of an Executive Officer. In reviewing scenarios, the President, Executive Officer for Corporate
Strategy, and others regularly discuss the course of action and work to strengthen initiatives.
In the Materials and Homes sectors, we have established sustainability departments within strategic business units and core
operating companies where initiatives are being worked on toward carbon neutrality and a circular economy in collaboration withbusiness units and the Group-wide sustainability department.
Sustainability Committee
Sharing, discussion, and alignment of all aspects of ESG,
including climate change
Chair: Asahi Kasei President
Committee members: Executive Officer for Technology
Functions, Executive Officer for Business Management
Functions, Executive Officers for the 3 business sectors
Main topics in fiscal 2022: carbon neutrality, circular
economy, natural capital, human rights, etc.
Global Environment Committee
Sharing, discussion, and alignment of all aspects of the E(Environment) of ESG
Chair: Executive Officer for Technology Functions(Environment & Safety)
Committee members: Presidents of SBUs, Senior General
Manager of the Production Center, Senior General Manager
of Corporate Production Technology, Senior General Manager
of Corporate Research and Development, and others
Carbon Neutrality Project
Sharing and discussing 2030 GHG reduction targets,consolidating efforts towards 2050 carbon neutrality, andscenario analysis
Project oversight: Executive Officer for Carbon Neutrality,
Project General Manager
52

Asahi Kasei Group Sustainability Report 2023

Strategy

Underlying assumptions
While a variety of scenarios can be envisaged, depending on the progress of measures to counter global warming, we have analyzed
the following two representative scenarios.
A scenario in which CO2 emissions are strictly controlled in order to limit the temperature rise to 1.5°C above pre-industrial levels(WEO: Net Zero Emissions by 2050 Scenario [NZE]3)— We consider strengthening of regulations and significant transformation of society and markets as the baseline transition risk
scenario
A scenario in which measures to counter global warming make insufficient progress and temperatures rise by 4°C (IPCC SSP37.04)— We consider extreme weather events and changes to society and ecosystems as the baseline physical risk scenario
With reference to each of these scenarios, we explored impacts on our current business toward 2050, as well as new opportunities.
Note: These analyses are based on a variety of assumptions, and changes to these assumptions may result in actual risks and opportunities differingsignificantly.
3 One of the scenarios listen in the International Energy Agency (IEA)’s WEO (World Energy Outlook) 2022. A scenario that will allow us to achieve
worldwide net-zero in 2050 in order to limit the temperature increase to 1.5°C by 2100.
4 One of the scenarios in the sixth report of the Intergovernmental Panel on Climate Change (IPCC). “SSP” stands for “Shared Socioeconomic
Pathway” and the SSP3-7.0 is a scenario in which regional rivalry results in climate policies not being adopted, and temperatures rise by up to 4°C in
2100.

Opportunities
Asahi Kasei is working to transform its business portfolio in light of megatrends such as the transition to a carbon-neutral society.
Specifically, the medium-term management plan sets out 10 growth-driving businesses, referred to as "10 Growth Gears" (GG10), towhich we will focus resources with a target of decision-making for investment of approximately ￥600 billion in these businesses
over three years.
In particular, we will focus management resources on hydrogen-related business, battery separators, digital solutions, and criticalcare. We also plan to invest approximately ¥60 billion over the three years until fiscal 2024 on decarbonization-related areas.
In addition, we have established an investment framework of $100 million over the five-year period from fiscal 2023-27, targetingstartup companies in the environmental field, which includes efforts to address climate change. From the perspective of the overall
supply chain, we have set a goal of increasing the percentage of sales of products and services (Environmental Contribution
Products) that help to reduce the world’s GHG emissions, and more than double the amount of GHG reduction contribution by fiscal
2030 compared to fiscal 2020 levels.
We recognize that the direction of our business development can provide business opportunities with a variety of products andservices in climate change mitigation and adaptation.

53

Asahi Kasei Group Sustainability Report 2023

5 Items judged highly relevant, including those directly addressed in the IPCC’s Sixth Assessment Report and the WEO 2022, indicated by double

circle: ◎Items not covered by the above, but estimated to be broadly related indicated by single circle: ○For example, the battery and hydrogen markets are expected to grow significantly in order to achieve carbon neutrality by 2050.
These two areas are among Asahi Kasei’s highest priority business fields.

Estimated market size for various clean energy technologies(2020–2050)6

Outlook for the low GHG emissions hydrogen production market (20212050)7

6 Graphs by Asahi Kasei based on the IEA’s World Energy Outlook 2021. Furthermore, according to World Energy Outlook 2022, the demand forbatteries in the transportation sector under the NZE scenario will increase over 16 times between 2021 and 2030.
7 Graphs by Asahi Kasei based on the IEA’s World Energy Outlook 2022.

54

Asahi Kasei Group Sustainability Report 2023

Opportunities+1.5°C
scenario

Important
Changes

Main opportunities

Principal initiatives, Products

Transition to acarbon-neutral
society

・Promotion of the spread of
Net Zero Energy Homes(ZEH8 and ZEH-M8) throughgovernment policies
・Increasing demand forrenewable energy
・Increasing need for energy
conservation
・Increasing demand forcarbon-neutral products

・Move to carbon-neutral homes and communities
through expansion of ZEH-compatible Hebel Haus*
and Hebel Maison*・Move to carbon-neutral energy (Hebel Electric* )・Energy conservation, process innovation (chlor-alkali
electrolysis , Neoma Foam*, etc.)
・Use of biomass in raw materials (basic chemicals
derived from bioethanol9, biomass certified products)
・Chemical products using CO2 as raw material(polycarbonate, LIB electrolyte components , etc.)
・Development of Environmental Contribution Products
・Promoting decarbonization and enhancing
competitiveness by ascertaining the carbon footprint10
of products

Spread ofelectric
vehicles (EVs)・Increase in EV-related
demand(Battery components,
materials for reducing
vehicle weight)

・Development and provision of components/systems
for the next-generation mobility society (engineering
plastics , electronic components, etc.)
・Strengthening of collaboration with automobile andbattery manufacturers (LIB separators , car interior
fabrics , etc.)

Advent of ahydrogensociety

・Increased demand forwater electrolysis thatutilizes renewable energy

・Development and commercialization of greenhydrogen production systems (alkaline waterelectrolysis )Transition to acirculareconomy・Growing demand forcomponents compatible
with a circular economy
・Development of circular
economy infrastructure

・Development of material recycling and chemical
recycling technologies, promotion of their practicalapplication
・Use of biomass raw materials (basic chemicals
derived from bioethanol9 （2.8MB）, biomassderived polyamide 66)
・Providing long-life homes (Hebel Haus* , Hebel
Maison* , remodeling* , used Hebel Haus
brokerage* )Expansion of
the digitalmarket・Digital solutions for carbon ・Promotion of business in electronic devices, such as
neutrality in society, life, and current sensors and CO2 sensors , andsemiconductor and substrate-related electronics
industrymaterials

55

Asahi Kasei Group Sustainability Report 2023

Opportunities+4°C scenario

Important
Changes

Main opportunities

Serious storm
and flood
damage・Increasing need fordisaster-resilient housing

Enhancing resilience of homes and communities,
including Hebel Haus* and Hebel Maison*

Rise intemperature

・Increasing needs for better
insulation

・Providing insulation materials and housing withsuperior insulation (Neoma Foam*, Hebel Haus* ,Hebel Maison* , remodeling* )Higherincidences ofheat stroke
and infectious
diseases

・Increased demand forexisting medicines, newmedicines, and the criticalcare business・Provision of emergency medicines and medical
equipment for infectious diseases and heat stroke

Principal initiatives, Products*: Japanese Document
8 ZEH (Net Zero Energy House) and ZEH-M (ZEH-Mansion): Houses and apartment buildings with a net energy consumption of zero or less as aresult of advanced insulation and energy saving combined with power generation such as solar
9 Asahi Kasei sustainability briefing materials (January 2023), p. 15
10 A product’s GHG emissions from material extraction to production

Risks
Based on these scenarios, we have analyzed the climate change risks to Asahi Kasei from various perspectives.
In a scenario in which global temperatures rise by 1.5°C, we primarily anticipate risk in the form of a shift in demand towardmaterials conducive to carbon neutrality, alongside strengthening of regulations through carbon pricing and other policies aimed atmoves toward carbon neutrality. We also anticipate risk in the form of changes in market structures brought about by anaccelerating transition to a circular economy and the advent of innovative technologies aimed at carbon neutrality.
In a scenario in which global temperatures rise by 4°C we primarily anticipate physical risks such as intense heat, heavy rain, andflooding. In particular, we perceive damage to production sites caused by the effects of increasingly severe storms and floods andthe resultant cost of such damage to be a risk for our major sites in Japan and overseas.
While the above risks vary in their intensity, we view all of them as having the potential to arise amid the climate change to come,and we will continue to pursue risk reduction initiatives.

56

Asahi Kasei Group Sustainability Report 2023

Risks
Important
Changes+1.5°C
scenario

Transition to acarbon-neutral
society

Main Risks

Principal initiatives

・Cost increases due to more Promotion of action for carbon neutrality
・Expansion in utilization of renewable energy, etc.
stringent regulations(manufacturing costs, raw ・More efficient energy use, development and practicalapplication of innovative industrial processes
material costs)
Estimate:
・Biomass in raw materials
Multiplying our current GHG
・Accelerating move to carbon-free products byemissions (Scope 1, 2) byascertaining carbon footprint
carbon costs, equates to・Review of management resource allocation
approximately ¥55(including business portfolio transformation)
billion/year11
・Changes in materials
needs (carbon-neutral
needs, required
specifications)

It is expected that demand formaterials with a high carbon
footprint will decrease andmaterial needs will changewith more widespread use ofelectric vehicles

Changes inmarketstructures

・Contraction of existing
markets due to transition toa circular economy

・Development of material and chemical recycling
technologies, promotion of their practical application
・Adoption of biomass feedstock
Assuming that the transition to ・Review of management resource allocationa circular economy will be(including business portfolio transformation)
gradual, with a gradual decline
in demand growth for linear
economy products・Contraction of existing
markets due to the advanceof alternative technologies
We are heightening our risk
awareness while closely
monitoring technologicaltrends.

57

Asahi Kasei Group Sustainability Report 2023

Risks

+4°C scenario

Important
Changes

Main Risks

Principal initiatives

Serious storm
and flood
damage"Physical" production risks
・Suspension of production
due to plant damage
・Disruption of raw material
supply network due tosuppliers suffering fromdisasters

・Continuous revision of BCP and reinforcement of
preemptive response (review inventory levels, consider
switching to multiple suppliers/locations, etc.)"Human" production risks
・Deterioration of working
environment andproductivity at construction
sites

・Promotion of heat stroke prevention measures atconstruction sites
・Promotion of industrialization and utilization of IT in
housing construction

We recognize the risk offlooding at major locations
based on the status ofinitiatives, frequency ofoccurrence, insurance
coverage, etc.

Rise intemperature

We are primarily aware of therisk of reduced productivity
due to intense heat.

11 Asahi Kasei GHG emissions in 2022 (Scope 1 and 2 preliminary figures): 3.68 million t-CO2e. When the carbon cost is set at ¥15,000/t-CO2, withreference to the CO2 price level in 2030 by NEZ scenario of WEO 2022,etc.

58

Asahi Kasei Group Sustainability Report 2023

Risk management
Asahi Kasei positions climate change risk as a Material Group Risk, and as such, climate change risk management is a key priority.
As well as understanding GHG emissions results once a year with third-party assurance, the results, together with progress toward
our targets, are shared with the Sustainability Committee and its subcommittee the Global Environment Committee with future
initiatives discussed and confirmed.
In addition, during the formulation of medium-term management plans and annual reviews, we confirm initiatives to reduce GHG
emissions, linking them to business strategies and measures. Related matters are also assessed on a quarterly and monthly basis.
In terms of capital investment, profitability is evaluated and implementation is decided in light of our internal carbon pricing system.
Furthermore, in July 2023, we raised our internal carbon pricing from ¥10,000/t-CO2 to ¥15,000/t-CO2 in order to further promoteactions toward carbon neutrality.

59

Asahi Kasei Group Sustainability Report 2023

Metrics and goals

Asahi Kasei considers the following metrics to be related to climate change opportunities and risks.
GHG emissions13

Target: By 2030, reduction of 30% or more (compared to fiscal 2013)
By 2050, achieve carbon neutrality

GHG
emissions13/operating
income(Fiscal 2022 result: 2,900 tons CO2e/¥100 million)
Interpreting this metric: a decrease indicates a lower carbon tax risk

ROIC

By around 2030, 10% or more of total operating income (fiscal 2022 results: 4.0%)
Interpreting this metric: an increase indicates progress toward becoming a high-earnings
enterprise capable of adapting to change

Operating income of the
GG10

By around 2030, 70% or more of total operating income (fiscal 2021 results: 35%)
Interpreting this metric: indicates expansion of related businesses able to contribute totackling climate change

OthersInternal carbon pricing
Incorporation of climatechange issues into
remuneration of
executives¥15,000//t-CO2, utilized in our investment decision-making, awards program, etc.
Attainment of “promoting sustainability,” including initiatives related to tackling climatechange, reflected in performance-linked remuneration

13 Includes Scope 1 GHG emissions directly linked to Asahi Kasei business activities (our own direct GHG emissions) and Scope 2 emissions (indirectemissions arising from use of electricity, heat, and steam supplied by other companies)
Global greenhouse gas emissions by segment (ESG Data)

Overview of the Asahi Kasei Group's climate change initiatives

60

Asahi Kasei Group Sustainability Report 2023

Pollution Prevention and Resource Circulation
PolicyBuilding a circular economy is a major plank of the Asahi Kasei Group's Global Environmental Policy, and we work to efficiently
utilize resources and energy and to reduce the environmental burden throughout the entire life cycle in our business activities. In
order to contribute to a circular economy, we have worked to reduce industrial waste, reduce the burden of chemical substances,prevent air and water pollution, and use resources effectively.
We are also contributing to the creation of a circular economy to achieve a carbon neutral and sustainable world as part of our
focus on Care for Earth, under our Medium-term Management Plan for fiscal 2022–2024 focused on the theme "Be a Trailblazer."
Sustainability Vision - Asahi Kasei Group Vision > Sustainability with a View Toward 2050

Reduction of industrial waste and promotion of recycling
As well as working to reduce the amount of industrial waste through the 3Rs of reduce, reuse, and recycle, the Asahi Kasei Group isalso working on renewables.
The amount of industrial waste generated by the Asahi Kasei Group (domestic and overseas) in fiscal 2022 was 600.9 thousand
tons, of which 18.6 thousand tons was specially managed industrial waste. Additionally, the industrial waste recycling rate1 was
75.2%, and the non-recycling rate2 was 24.8%. So that we can continue to recycle in the future, we will keep on taking steps toseparate waste and search for processing sites where waste can be recycled.
The Asahi Kasei Group has been working toward the goal of zero landfill waste plastic. Because mixed waste could not be
separated sufficiently and temporary waste could not be recycled, the amount of waste plastic sent to landfill in fiscal 2022 was 1.5
tons, failing to achieve our target. We will continue to promote recycling initiatives.
Waste containing PCBs3 is stored under strict control in stainless steel vessels. Plans for disposal are advancing, including for
waste with minimal amounts of PCBs. We are systematically identifying and replacing electrical equipment containing PCBs andproceeding with their disposal.
We enhanced our management of off-site treatment of industrial waste by expanding the use of electronic manifests. We also
performed periodic on-site inspections of consigned firms to ensure that proper treatment is performed in accordance with soundsystems of control.
1 Recycling rate:Percentage of chemical recycling and material recycling
2 Non-recycling rate:Percentage of heat recovery, weight reduction, and landfill disposal
3 PCBs (polychlorinated biphenyls) are persistent and pose a risk to the living environment and human health. Their manufacture and use are

essentially prohibited in Japan.

61

Asahi Kasei Group Sustainability Report 2023

FY2022 flow of industrial waste

Waste generated

Recycling rate

Landfill volume of plastic waste62

Asahi Kasei Group Sustainability Report 2023

Reducing industrial waste from construction materials and housing businesses
Asahi Kasei Construction Materials recycles trimmings of Hebel™ autoclaved aerated concrete (AAC) panels in its own plants andothers, utilizing its certification for "wide-area recycling"* which permits the transport of waste from different construction sites.
Asahi Kasei Homes is also reducing the volume of waste as well as implementing sorted waste collection at housing construction
sites. With these measures, waste for final disposal has been reduced to zero at new construction sites.

Recycle flow for trimmings of Hebel™ AAC panels* Certificate for wide-area recycling: For certain parties, who perform recycling in a wide-area, Japan's Minister of the Environment eliminates theneed to obtain separate waste transport permits for each local area. The system was established to promote further recycling of industrial waste.

Reducing emissions of chemical substances
The Asahi Kasei Group works to reduce the release of chemicals substances specified in the PRTR1 Law and other chemical
substances which we have voluntarily designated for reduction with priority based on the degree of hazardousness and amount of
release. As shown in the graphs below, releases of PRTR-specified substances and VOC2 emissions were reduced by 91% and 89%,
respectively from fiscal 2000. We will continue to enhance control of operation and equipment to prevent any accidental release.
From fiscal 2021, the calculated amount of leaked fluorocarbons are aggregated for the Asahi Kasei Group as a whole. The Asahi
Kasei Group’s calculated amount of leaked fluorocarbons in fiscal 2022 was 1,327 tons of CO2-equivalent.

Releases of VOCs

Releases of PRTR-specified substances63

Asahi Kasei Group Sustainability Report 2023

PRTR:： Pollutant release and transfer register. Under the PRTR Law, releases to the environment and off-site transfers of specific hazardous
chemical substances must be monitored and recorded for each production facility and operating site. Results are reported to the government,
which publishes aggregated results.
2 VOC:： Volatile organic compound. Although the term generally applies to any organic compound which is in gaseous state at the time of release,regulations for the control of their release exclude methane and some fluorocarbons which do not form oxidants. However, methane and somefluorocarbons are excluded from VOC regulations on the grounds that they do not form oxidants.

1

Preventing air pollution
The Asahi Kasei Group works to control emissions and prevent spills in order to avoid the pollution of air, water, soil, andgroundwater. Measures to prevent noxious odors include the installation of exhaust gas absorption equipment and increasing thecapacity of our wastewater treatment facilities. To prevent soil pollution, we perform tests and take appropriate measures inaccordance with the Soil Contamination Countermeasures Act and related regulations. Substances covered by the Air Pollution
Control Act are managed within regulatory standards.

SOx emissions

NOx emissions

Soot and dust emissions

Effective resource use
As indicated by the Osaka Blue Ocean Vision at the G20 summit in 2019, the issue of marine plastic waste will require global
cooperation to solve. In order to understand how marine microplastics are generated, we are working in collaboration with Kyushu
University and participating in awareness-raising activities with industry groups dealing with proper use and disposal of plastics. It
is important to make effective use of used plastic resources, so we also promote the 3Rs (Reduce, Reuse, Recycle).
64

Asahi Kasei Group Sustainability Report 2023

Approach to the Circular Economy

Initiative for Achieving a Circular Economy
Plastics recycling projectAs part of our sustainability efforts, which are symbolized by the SDGs (Sustainable Development Goals), we are working withacademia and other companies to achieve a circular economy.
For the material recycling of polyethylene, we have launched a plastics recycling project* with the technical support of IBM Japan,
Ltd. We are striving to make a circular economy a reality through collaboration with recycling company Toyama Kankyo Seibi;
Mebius Packaging Co., Ltd., which specializes in molding and final product processes; and brand owner Lion Corporation.

65

Asahi Kasei Group Sustainability Report 2023

* Overview of the plastics recycling project

The project was launched by Asahi Kasei Corp. to create a digital platform that promotes resource recycling. IBM Japan will support the constructionof the digital platform by utilizing blockchain technology that runs on the IBM Cloud. Blockchain technology is an irreversible database technologythat maintains a continuous record of operations, which ensures traceability as it is accessible to all parties involved and cannot be altered. Toyama
Kankyo Seibi, Mebius Packaging Co., Ltd., and Lion Corporation, which together specialize in the collection, pelletizing, molding, and conversion ofwaste into final products, will collaborate using IBM Japan’s blockchain technology to accelerate the achievement of a circular economy.

66

Asahi Kasei Group Sustainability Report 2023

Water Resource Preservation
Click here to read our response concerning CDP Water Security 2023 （216.2KB）

PolicyAsahi Kasei Group's business is intrinsically related to water resources. Ensuring their future viability is one of our societal missions
and a prerequisite for the continuity of our business. We will contribute to the conservation of water resources around the world
through our domestic and overseas filtration membrane module business (water supply, seawater desalination, etc.), thedevelopment of sludge reduction products for wastewater treatment, and the expansion of our surface oil detector series. We also
have a policy of ascertaining the quantity of our water intake while striving to maintain and improve the efficiency of our water
usage.

Reducing water use
The Asahi Kasei Group endeavors to reduce the amount of water used in our plants and to make efficient use of water by recyclingit.

Amount of Global Water Intake

Amount of Water Intake by Source (domestic)

Actions in the Moriyama Area
All water used at our Moriyama Works is drawn from groundwater systems. This water is primarily used as a coolant to coolmachinery and equipment via heat exchange, but we are also promoting the reuse of the water we draw. The water reuse rate infiscal 2022 was 2.3 times the amount of water intake. We will continue working to reuse water within our Moriyama Works, from theperspective of long-term water resource security.

67

Asahi Kasei Group Sustainability Report 2023

Prevention of water pollution
The Asahi Kasei Group is thorough in its water discharge management and leakage countermeasures in order to prevent
contamination of bodies of water or groundwater. In addition, as an annual goal for group-wide environmental safety activities, wehave set zero instances of leakage as covered by the Water Pollution Prevention Act.
In 2012, we issued our Guidelines on Wastewater Management. In addition to affirming our commitment to wastewater
management based on this, we are also working on enhancing the capacity of wastewater treatment facilities and other equipment.
The Asahi Kasei Group sets voluntary management targets for the quality of wastewater from our offices and plants, managing
water quality to a higher level than wastewater regulation standards.
In fiscal 2022, there were neither instances of leakage as related to the Water Pollution Prevention Act nor violations or fines
related to environmental laws and regulations.

Amount of Wastewater (domestic)

Chemical Oxygen Demand (COD) Load

Asahi Kasei products and technologies for water conservation
Microza™ hollow fiber membrane filtration module
We are a top-tier supplier of water treatment membranes and filtration systems. Microza™ is a hollow fiber membrane we havedeveloped for water treatment. It is used in more than 1,600 water purification plants and wastewater plants worldwide, including in
the United States, China, Korea, Singapore, Thailand, Indonesia, and Middle Eastern countries. Singapore’s NEWater, Asia’s largest
wastewater reclamation plant, has continued to use this product since 2007.
Going forward, we will continue to work on global water and environmental issues with the aim of resolving various problems
related to water resources.
Microza™ hollow fiber membrane filtration module

Saran™ Polyvinylidene Chloride Fiber
One important issue in wastewater treatment is reducing the amount of sludge generated, which is directly tied to decreasing its
environmental impact. The Asahi Kasei Group conducts research and development into new commercial products that feature aunique technology using microorganism immobilized carrier that flows, making use of the characteristics of Saran™ fiber, whichmicroorganisms inhabit easily.
Existing facilities can adopt these products by making simple improvements like installing screens, without requiring major
modifications. This improves processing capabilities and reduces the amount of sludge generated.

Saran™ fiber on the Asahi Kasei Home Products website
68Asahi Kasei Group Sustainability Report 2023

Apolarm™ series environmental monitoring products
Asahi Kasei Technosystem's Apolarm™ Series detects a wide range of oil leaks, including floating oil (oil film and oil layers),
sediment oil, and water-soluble oil. We will continue to expand our product line and protect the aquatic environment with oil
detection devices for specific applications.
Apolarm C

Oil layers of 3 mm or more trigger a capacitance shift and sound an alarm.

Apolarm M

A non-contact laser detector that can sense minuscule amounts of oil film on the water
surface.

Apolarm B

Detects oil and organic solvents that have a greater specific gravity than water, causing
them to sink.

Apolarm F

Detects leakage of fluorescent water-soluble oils.

Apolarm™ Series on the Asahi Kasei Technosystem website

69

Asahi Kasei Group Sustainability Report 2023

Biodiversity
PolicyTo ensure the sustainable utilization of living resources, the Asahi Kasei Group gives due consideration to reducing the impact ofour business activities on biodiversity, and we have established guidelines for the preservation of biodiversity. Based on theseguidelines, we have been working to understand the relationship between our business activities and biodiversity since 2010. In
order to promote business activity mindful of biodiversity, we are working to raise awareness among personnel by various means
including our ESH education program.

Assessment of nature-related risks and opportunities at Asahi Kasei Group production
sites
The Asahi Kasei Group continues to make assessments in accordance with the LEAP approach, a method recommended by the
TNFD* for evaluating nature-related risks and opportunities. So far, we have conducted a trial run to identify priority areas during
the Locate phase.
We identified location information for major manufacturing sites in Japan and overseas, assessing them in accordance with the five"sensitive locations" as defined by the TNFD: areas important for conservation, areas of high ecosystem integrity; areas of rapid
decline in ecosystem integrity; areas of high physical water risks, and areas of importance for ecosystem service provision. During
the evaluation, we referred to TNFD's recommended tools such as IBAT, Resource Watch, and ENCORE.
In the future, based on the locations and priorities of each site identified in the "Locate" phase, we will evaluate the reliance andimpact of our own business on nature in the "Evaluate" phase, assess the risks and opportunities related to nature in our own
business in the "Assess" phase, and consider measures to deal with them in the "Prepare" phase.
* Task Force on Nature-related Financial Disclosures, an international organization established in 2021 to build a framework for corporate risk

management and disclosure regarding natural capital, etc.

70

Asahi Kasei Group Sustainability Report 2023

Certification as a “site in harmony with nature”
Asahi Kasei has joined the 30by30 Biodiversity Alliance1 which wasestablished by members of interested companies, local governments, andorganizations in April 2022 in order to advance initiatives to gain OECM2
certification for areas safeguarded as company green spaces or under similar
designations with the aim of achieving the 30by30 target. Asahi Woods of Lifein Fuji City, Shizuoka Prefecture, was certified as a “Site in Harmony with
Nature”3 in the first half of 2023.
1 The 30by30 Alliance is an initiative to prevent and restore biodiversity losses while effectively preserving 30% or more of the Earth’s land and oceanarea as healthy ecosystems by 2030.

2 Other Effective area-based Conservation Measures is a designation for areas that contribute to conservation of biodiversity outside of protectedareas.

3 Site in Harmony with Nature is a system launched in 2023 by the Ministry of the Environment of Japan to certify areas where biodiversity isconserved with the support of local communities, etc., with 122 sites including the Asahi Woods of Life certified in 35 prefectures around Japan in thefirst year. Moving forward, certified sites other than those also designated as protected areas are planned to be registered in a global database.

https://www.asahi-kasei.co.jp/j-koho/press/20231012/index/

Investigation of impact on biodiversity by procurement
Regarding the impact of our business activities on biodiversity when there is a newly used raw material or a change in use of raw
materials, we use a survey sheet on the relationship between business operations and biodiversity to examine the country of originof raw materials, processers and manufacturers, and primary vendors (trading companies, etc.), in order to confirm the absence ofany problem.

Group-wide activities for biodiversity

71

Asahi Kasei Group Sustainability Report 2023

What is the "Town Woods" Program?
We aim to increase value from the perspective of biodiversity while enhancing green spaces at Asahi Kasei Group operating sites inJapan. We will use Town Woods Pots as a tool to heighten understanding and awareness of the value of biodiversity among
personnel.

What are Town Woods Pots?
This new way of landscaping by Asahi Kasei Homes combines four layers of vegetation of varying heights: Tall, medium, short, andgroundcover. While compact enough to integrate with urban residential areas, they increase the space for other plants and wildlife
in artificial environments that otherwise have little greenery. Our Town Woods Program uses the phytosociological method toclassify green spaces at operating sites throughout Japan, selecting the most suitable regional vegetation when creating the Town
Woods plantings.

Town Woods Project: FY2019‒2022 Results
Town Woods Points (Machi-Mori Point: MMP) Initiatives at the Group sites are divided into four stages. Each initiative earns Town Woods Points
and the points are aggregated across the group.

Cumulative Total of Town Woods Points
72Asahi Kasei Group Sustainability Report 2023

Stage

Example Initiatives

Stage 1: Installation

Installing the Town Woods Pots
Posting information about the Town Woods Pots
Maintaining them properly so they thrive

Stage 2: Observation

Recording trunk thickness and tree height
Photographing and recording information on features like flowering, fruiting, andfoliage
Photographing and recording information on the wildlife that visits the Town Woods
Pots
Photographing and recording information on naturally occurring vegetation

Stage 3: Dissemination

Actively disseminating information including photographs and records of observed
plant and animal life both within and outside the workplace(online, bulletin boards, directly communicating with the local community, etc.)

Stage 4: Development
Initiatives in other locations

Expanding the initiative to other locations
Collaborating with other programs both within and outside the site
(In FY2022, as in FY2021, we refrained from holding the event due to COVID-19)

73

Asahi Kasei Group Sustainability Report 2023

FY2022 Project: "Town Woods" Nuts and Seeds Watching
In fiscal 2022, we held a limited time project for employees to think about the diversity ofplants and the connection between plants and animals by observing the nuts and seeds oftrees. The project provided an opportunity for employees to get closer to nearby nature suchas green spaces inside the office, areas around our Town Woods Pots, home gardens,
neighborhood parks and on the roadside. We split the project into two periods, from
September 1 to October 15, and from October 16 to November 30, during which participants
submitted their predictions on how the nuts and seeds get transported out of seven different
dispersal methods.
The project received 145 submissions (444 MMP) on 98 species of nuts and seeds in 61
families with the most common method of dispersal found to be by animals. Experts
explained that among the types of animal dispersal, the common form whereby an animaleats the nut or berry and the tree or plant thereby has its seeds carried away, is beneficial
both for the animal and the tree. But the method whereby the seed attaches to the animal’s
fur or bird’s wing, for example, has no benefit for the animal and so animal dispersal canalways be seen to favor the tree or plant.
Town Woods Program News, Issues 13, 14, and 15 （2.4MB）

Notable activities in fiscal 2022
Actions in the Moriyama Area
Ex-situ conservation of smallhead stickleback, an endangered freshwater fish, and joint effort
among companies and communities for dragonfly conservation
In Moriyama, we draw groundwater for industrial use in cooling equipment. Its quality is strictly monitored, and it is discharged tonearby rivers after use. A portion of the discharged water from our Moriyama Works is also used for agriculture, which has become
vital for local farmers as well as wildlife inhabiting the waterfront areas.
Against this backdrop, and since water is intrinsically related to our business operations, in fiscal 2010 we started initiatives toprotect biodiversity with a focus on water resources.
In fiscal 2015, we began ex-situ conservation of smallhead stickleback, an endangered freshwater fish, and in fiscal 2016, we began
dragonfly conservation activities in cooperation with companies that have operations located in Shiga Prefecture and local
communities. In fiscal 2022, we held an observation session at the “Moribio” biotope for employees and their families for the firsttime in four years. At the observation event, as participants received explanations and support from experts, they were given an
opportunity to learn about biodiversity conservation while they enjoyed catching and observing smallhead stickleback that live inponds and waterways, and dragonflies that have emerged and marked themselves in the Moribio.
In conjunction with a suspension of operation for maintenance at the Moriyama Works, we drained the conservation pond andcarried out a survey on the habitat of the smallhead stickleback, confirming that over 800 individual fish inhabit the biotope. Due tothe suspension of operation, the supply of groundwater necessary for the smallhead stickleback's habitat was also halted, so thefish were returned back to their original home in the Kanegamori Residents’ Association Conservation Pond. After draining thepond, we once again released 60 smallhead stickleback into the Moribio pond where we continue our conservation activities andmonitor their breeding.
In collaboration with companies that have operations located in Shiga Prefecture, we are involved in "Operation Dragonfly 100: Save
Shiga's Dragonflies!" (sponsored by Biodiversity Biwako Network). This project involves working with local communities to survey
the habitat of the Sympetrum kunckeli variety of dragonfly, which resides in wetlands, and to conserve it using a container biotope.
In fiscal 2022, we were able to confirm the spawning, nymph, emergence, and adult stages of the dragonfly. This is proof that the
dragonfly that emerged in the container biotope last year have now settled in the Moribio.
74

Asahi Kasei Group Sustainability Report 2023

A further 15 species of dragonflies from 6 other families have also been found in the Moribio, including the Anaciaeschna martini, aspecies for which there is little information in Moriyama City, making it clear that the Moribio is an essential place for local
biodiversity.
We will continue to work on biodiversity activities through conservation at the Moribio.

Observing wildlife at the Moribio

Smallhead stickleback being returned back to the
Kanegamori Residents’ Association Conservation Pond

Actions by Asahi Kasei Juko Co., Ltd.
Project to rediscover living with the woods and water in Higashiomi
We are carrying out conservation works at Asahi Kasei Jyuko Co., Ltd.’s Shiga Plant—principally at the “Yuya Hebel Biotope”
created on the plant’s grounds in June 2017—in aid of the four-spotted skimmer (our “nominated dragonfly”), a keystone species on
the Shiga red list and which surveys of dragonflies in the surrounding area show to be at risk of extinction due to habitat
degradation in recent years.
In the five years up to May 2021, we have seen that the four-spotted skimmer that have emerged in the “Yuya Hebel Biotope” orthat have flown in from outside have been breeding, confirming that they have basically become an established species in the
biotope.
In fiscal 2022, we replanted evergreen trees, mainly deciduous trees, from among the seedlings around the biotope in June, and in
November, we replanted them in pots, with the aim of establishing a planting system that makes it easy for the four-spottedskimmers that have emerged in the biotope to remain there for a given period.
We plan to grow the seedlings in pots over the next two to three years, and then replant them around the biotope.

A four-spotted skimmer dragonfly that emerged in the
biotope

Growing deciduous tree seedlings in pots

75

Asahi Kasei Group Sustainability Report 2023

Actions in the Suzuka Area
A river known as River No. 19 cuts through the grounds of our Suzuka Works from north to south, and water used in the production
line is discharged into this river with strict water-quality monitoring in place. Although the river is narrow, it supports much aquatic
life that finds it easy to live there, protected by the old stone embankment. In and around the gaps between the stones on theembankment, you can see plants such as dwarf ambulia growing, crabs thriving, and fish such as the fresh-water sprat and Amur
catfish coming and going. On the waterside also, dragonflies, and occasionally birds such as ducks, herons, and egrets, come totake a rest. Previously, many employees have witnessed the soft-shelled turtle mating, and more recently, a baby soft-shelled turtle
was found when weeding the area, and we were able to confirm that the parents and baby were living together. Employees lookforward to seeing what kind of creatures they may find when walking by the river. In order to maintain the waterside environment ofRiver No. 19, which is home to many aquatic creatures, it is important to ensure the quality of the discharged water is monitored
properly. Going forward, we will continue to work to protect the environment so that these aquatic organisms can live safely by not
only conducting water quality monitoring in all production departments but also monitoring water quality near the gates where
effluence is combined and discharged into the river, and by maintaining the stone embankments.

A couple of ducks spotted recently (on the left is thestone embankment of River No. 19)

Left: The baby turtle that was found (left of the tapemeasure), Right: The turtle released into the river76

Asahi Kasei Group Sustainability Report 2023

Actions in Nobeoka and the Hyuga Area
Since 2007 we have participated in a reforestation program led by Miyazaki prefecture to create forests in cooperation withcompanies. We planted more than 47 hectares of broad-leaf trees and other trees native to the area, replacing plantations of cedar
and cypress. This included 23 hectares in Hinokagecho, 20 hectares in Takachiho, 1 hectare in Gokase, and 3 hectares in
Kitakatacho.
In the past, as many as 400 people took part in these tree-planting activities, but because of the pandemic they were put on hold fora while. However, activities were resumed in fiscal 2022 with the number of participants limited to approximately 150 people. In
fiscal 2023, approximately 120 people took part and planted 1,500 trees on 1 hectare of land.

Planting trees

Commemorative photo after tree planting session

Please refer to the document below to see Asahi Kasei Homes initiatives.
Asahi Kasei Homes Group CSR Policy

77

Asahi Kasei Group Sustainability Report 2023

The Asahi Kasei Group's Environmental Contribution Products
Our Initiatives

Description of Environmental Contribution Products

Contribution to reducing greenhouse gas (GHG) emissions throughout society
Alongside aiming to achieve decarbonization and reducing our own GHG emissions, the Asahi Kasei Group works to contribute to
reducing GHG emissions throughout society. In order to realize both business growth and environmental contributions, we areworking toward the following targets for 2030.

Contribution to reducing GHG emissions and increasing sales through Environmental Contribution Products78

Asahi Kasei Group Sustainability Report 2023

What are Environmental Contribution Products?
For sustainable society, we believe it is important to develop products and businesses that contribute to reducing the impact ofsociety on the environment in addition to reducing emissions, such as greenhouse gases, at the Group’s production sites. The Asahi
Kasei Group defines products that contribute to the improvement of the environment over the entire life cycle when compared withproducts considered to be the standard in the current market and products that contribute to the improvement of the environment
when compared with our existing products as Environmental Contribution Products.
Our Environmental Contribution Products are managed under our own Guidelines for Environmental Contribution Products, whichwere prepared with reference to Guidelines for Assessing the Contribution of Products to Avoided Greenhouse Gas Emissions (TheInstitute of Life Cycle Assessment, Japan), Guideline for Calculating the Reduction in CO2 Emissions (Japan Chemical Industry
Association), Guideline for Quantifying GHG Emission Reduction Contribution (Ministry of Economy, Trade and Industry), and otherreference materials.

In making the abovementioned calculations, we use MiLCA, an LCA software provided by the Sustainable Management Promotion
Organization (SuMPO).

What is Life Cycle Assessment (LCA)?
Although CO2 is generated during the manufacture of materials and intermediate products in the Asahi Kasei Group, there are also
many examples of products which contribute to improving the environment by reducing environmental impact, including CO2, during
use considering the entire product life cycle, such as contributions to energy conservation.
The evaluation of the environmental impact of products over their entire life cycle is Life Cycle Assessment (LCA).

79

Asahi Kasei Group Sustainability Report 2023

Internal Certification Process
Products proposed by strategic business units and core operating companies are internally certified as Environmental Contribution
Products after receiving advice from external experts on the LCA review panel regarding the suitability of the environmental
contribution calculation methodology and approach from an LCA perspective.

LCA Review Panel (held on July 4, 2023)
Chair:

Atsushi Inaba (Chief Director of Japan Life Cycle
Assessment Facilitation Centre (LCAF))
Members: Kensuke Kobayashi (Associate Professor,
Prefectural University of Hiroshima)
Keigo Matsuda (Professor, Nagoya University)
Hiroyuki Uchida (Principal, Mizuho Research &Technologies, Ltd.)A meeting of the LCA Review PanelAt the LCA Review Panel, Asahi Kasei Group personnel in charge of each product explain the details of environmental contributions
and receive comments and advice from outside experts on the suitability of the establishment of baselines and our approach toenvironmental contribution.

80

Asahi Kasei Group Sustainability Report 2023

The Asahi Kasei Group's Environmental Contribution Products
Our Initiatives

Description of Environmental Contribution Products

Description of Environmental Contribution Products
Contributes to resource and energy conservation at the product use stage
Product nameReason for certification

Lithium-ion battery (LIB) Separators

The separator is one of the four main components (cathode, anode,electrolyte, and separator) that make up the batteries (LIBs) for electricvehicles (EV/HEV/PHEV).
As a result of their growing popularity, electric vehicles are contributing toa reduction in CO2 during driving, compared with gasoline vehicles.
Improving the battery performance (extending range and ensuring safety)
is essential to the popularization of electric vehicles, and Asahi Kasei’s
development of separator technology is playing a part in this.

Hipore™

Celgard™

Caustic soda and chlorine are manufactured through the electrolysis ofbrine. The methods of electrolysis are the mercury process, the diaphragm
process, and the ion-exchange membrane process. The ion-exchange
process is a method that does not use the harmful materials mercury orasbestos. We are unique in that we manufacture and sell our own ionexchange membranes, electrolyzers, and electrodes, and our products areused around the world. We have engaged in continual development
Ion-exchange membrane process for chlor- widely
to enable electrolysis using even less electricity, and our latest ionalkali electrolysis
exchange membrane grade has significantly lowered power consumption(compared with Asahi Kasei products: approximately 2% less than thecurrent grade).
This compact, highly accurate, energy-saving gas sensor can detect theconcentration of CO2 in the air. Equipping this product to industrial airconditioning systems and optimizing the amount of ventilation while
monitoring the CO2 density will contribute to reductions in power
consumption for air conditioning.
CO2 sensors
81Asahi Kasei Group Sustainability Report 2023

Product nameHall elements and Hall ICs (components
for home air conditioners)

Current sensor (component for large air
conditioners)

UVC LED for water sterilization

Reason for certification
Fan motors in home air conditioners are increasingly being replaced from
non-inverter control to inverter control, which allows more precise control
and helps to save energy.
Hall elements and Hall ICs are used with the fan motors inside the indoor
units and are essential components for realizing inverter control. Our Hall
elements and Hall ICs feature high sensitivity and stable temperature
characteristics.
We have built a stable supply system producing approximately 1 billion
units per year which are widely used around the world. With the further
spread of inverter control, our Hall elements and Hall ICs can greatly
contribute to energy savings and CO2 reductions.
Asahi Kasei’s current sensors generate less heat and can accurately
measure large currents. Because of these unique characteristics, they areused in the compressor motors of large air conditioner outdoor units foundin commercial facilities and office buildings. Used as an importantcomponent for inverter control, the current sensors reduce start-stop loss
and enable operation at arbitrary speeds, helping to save energy (lower
power consumption) in large air conditioners.
In addition, our current sensors can detect both DC and AC currents
quickly and with a high degree of accuracy. They greatly contribute not
only to the smaller number of installed parts, but also to higher efficiency
and improved controllability. And since they generate less heat, it meansthat outdoor air-con units can be made smaller.
The high-output UVC LED, which emits 265 nm deep ultraviolet (UVC), themost effective wavelength for sterilization, is installed in water servers etc.
Since UVC LEDs can be instantly turned on and off, it is possible to design
equipment that uses power only when sterilization is required, which helps
to save energy.
Recently, UVC LEDs have been used for air sterilization.
In addition, unlike the conventional mercury lamps (UV lamps) used for UV
sterilization, these lamps do not use mercury, which is hazardous to theenvironment.
This product is used as an additive for the modified asphalt used in roadsurfaces.
This original elastomer specially designed by Asahi Kasei can improveroad durability and decrease the frequency of maintenance and repairs.

Elastomer for Asphalt Modification

82

Asahi Kasei Group Sustainability Report 2023

Product nameReason for certification
S-SBR is used for the tread (the part in contact with the road) on
passenger vehicle tires. Based on the development of original technology,
it balances low fuel consumption and braking performance of tires at ahigh level, contributing to the fuel efficiency of automobiles.

S-SBR synthetic rubber for fuel-efficienttires

Xyron™ lightweight resin

Electric vehicle
battery modulematerials

Solar cellconnector
material

ASACLEAN™

DURANOL™ polycarbonatediol

Xyron™, a type of engineering plastic, is an environmentally-friendly
material with non-halogen flame retardance and reduction of resin usage
due to its low specific gravity. Its properties also include dimensional
precision, mechanical strength, and resistance to electrolyte solution.
Widely used for electric vehicle battery packs and modules, it has played amajor role in the spread of electric vehicles.
It is also used in high-voltage photovoltaic systems due to its excellent
insulation properties. The number of modules required for high-voltage
systems is reduced, which saves resources. Its low specific gravity also
contributes to the reduction of CO2 emissions during transport.
ASACLEAN™ is a cleaning agent (purging agent) for use in plastic molding
machines.
At plastic molding work sites, when switching between production ofdifferent colors and resin types, it is necessary to keep the materials
flowing to a certain extent, which inevitably results in loss.
By using ASACLEAN™ during the production switching process, it ispossible to make the switch using about 1/3 to 1/10 the amount compared
to not using ASACLEAN, which contributes to conserving resources andreducing CO2 by decreasing plastic waste.
DURANOL™ is used as a raw material for high-performance polyurethane
resin in applications that require durability. The water-dispersible grade
developed using our proprietary technology is the world's only
polycarbonatediol that can be diluted and dispersed in water without usingorganic solvents. Using this product allows for more use of water-based
paints, etc., which contribute to reducing CO2 emissions because of lessuse of organic solvents.

83

Asahi Kasei Group Sustainability Report 2023

Product name

AWP™ Photosensitive Resin for Printing
PlatesHebel Haus™

Hebel Maison™

Reason for certification
This is a printing plate material that does not use VOC (volatile organic
compound; a cause of worsening air quality) solvents during thedevelopment process.
Moreover, simplifying the drying process contributes to reduced CO2
emissions by lowering energy consumption. Printing losses can also be
reduced due to excellent printing quality and high productivity during
printing, thereby contributing to a reduction in CO2 emissions.
Long Life Homes and Net Zero Energy Houses:
Compared with regular housing, our homes contribute to reduction of CO2during manufacture of all components and construction by meeting thestandards for Net Zero Energy Houses, which balance household energy
usage at zero or lower through power generation, advanced insulation, andenergy conservation, and providing Long Life Home products with a basic
structural life of at least 60 years.
This is a high-level insulating material, providing high insulation andmaintaining its insulating properties for long periods of time.
In addition, this insulation material reduces environmental impacts in avariety of ways, such as by being the first in the industry to succeed in notusing any CFC or CFC substitutes as foaming gases.

Neoma Foam™ Insulation Material

Resource and energy conservation at the product production stage
Product nameReason for certification

Polycarbonate Production Process Using
CO2 as a Raw Material

This is a process using CO2 as one of its raw materials to produce
polycarbonate. We license a technology for this manufacturing process.
This process utilizes CO2 released into the atmosphere by other plants asa raw material, thereby contributing to reducing CO2.
The product, polycarbonate, is used for automobile headlight covers;
materials for carport roofs; helmets; water bottles; and substrate layers forCDs, DVDs, and BDs; as well as exterior materials and other components
for electric and electronic devices in the form of an ABS-PBT alloy.
Ethylene glycol—used as a raw material for polyester fibers, PET resins,
and antifreeze—is a secondary product of this process.
A further strength of the process is that it manufactures its productwithout the use of solvents and with no inputs other than its raw
materials, avoiding the environmental impacts associated with processing
used solvents.

84

Asahi Kasei Group Sustainability Report 2023

Product name

Dimethyl Carbonate Production Process
Using CO2 as a Raw Material

Reason for certification
This is a process using CO2 as one of its raw materials to produce
dimethyl carbonate. We license a technology for this manufacturing
process.
This process utilizes CO2 released into the atmosphere by other plants asa raw material, thereby contributing to reducing CO2.
Demand is rising sharply for the product, dimethyl carbonate, as a raw
material for polycarbonate and the electrolytes in lithium-ion batteries(LIB) for electric vehicles (EVs) and other products.
Ethylene glycol—used as a raw material for polyester fibers, PET resins,
and antifreeze—is a secondary product of this process.

Manufacturing process for Acrylonitrile

Acrylonitrile, which is the raw material for carbon fiber, ABS resin, andacrylic fiber, is manufactured by making propylene react with ammonia.
We have continually developed catalysts that assist reactions in order toenable efficient manufacture of acrylonitrile from less raw materials.
As compared to production processes using other, ordinary catalysts (inthe model case), production processes using our catalysts have a low
environmental impact due to the fact that these processes can (1) reduce
raw material consumption, (2) reduce emissions of by-products,
particularly CO2, and (3) lower CO2 emissions associated with waste
processing.

Cyclohexanol Production ProcessThis production process produces cyclohexanol, an intermediate material
for nylon and other chemical products, through the cyclohexane process,which Asahi Kasei were the first in the world to develop.
The cyclohexene process is notable in that it generates virtually no waste
and has a carbon yield of nearly 100%. Compared to conventional
methods, this method uses fewer raw materials and generates less CO2 inwaste treatments, which reduces the impact on the environment.

Adipic Acid Production ProcessThis process produces adipic acid, a raw material for plasticizers forpolyurethane and resins. The Asahi Kasei adipic acid production process,which uses cyclohexanol produced by our cyclohexane process as a raw
material, efficiently breaks down the nitrous oxide (N2O) produced by the
production process and reduces GHG emissions, thereby contributing to
reducing environmental impacts.

Dinamica™ artificial suede

Dinamica™ is an artificial suede with a 3-layer structure produced with
Asahi Kasei’s proprietary manufacturing process. Having excellent texture
and versatile design, it is actively being marketed both in Japan andoverseas in various applications such as automotive interiors, furniture, IT
accessories, clothing, and industrial materials. Dinamica™ contributes toreducing GHG emissions in two ways: 1) by increasing the usage rate ofrecycled polyester material, and 2) by using water-based polyurethane.
85

Asahi Kasei Group Sustainability Report 2023

Product nameReason for certification
Ecoloop™ OPS film is used in the window film of envelopes, and has
gained more than 50% of the market for windowed envelopes.
Ecoloop™ uses more than 50% recycled material (recycled waste biaxiallyoriented polystyrene sheets) and has received Eco Mark (Japaneseecolabel) certification. This reduces the amount of virgin resin used andcontributes to reducing CO2 emissions during manufacturing.

Ecoloop™ OPS film

Other Environmental Contribution Products■Contributes to resource and energy conservation for customers
Microza™ water filtration modules

86

Asahi Kasei Group Sustainability Report 2023

Society
The Asahi Kasei Group aims to be a corporate entity that contributes to sustainable society in harmony with the community bytaking social issues into consideration and striving for fair information disclosure.

Quality Assurance

CSR Procurement

Human Resources

Human Rights

We deliver safe and reliable
products and services to ourcustomers and strive forgenuine communication withthem.

We work to promote CSR in
partnership with our
suppliers through fair andtransparent businessactivities that take account ofenvironmental issues andhuman rights.

We respect each and every
employee and aim to create arewarding and vibrantworkplace.

We respect the human rights
of all people involved in thebusiness activities of the
Asahi Kasei Group, andencourage each and every
one of them to achieve theirfull potential.

Health & Productivity
Management andOccupational Health &SafetyProcess Safety

Social Activities

We continually makevoluntary efforts to ensure
operational safety inaccordance with our Basic
Policy on Safe Operation.

We aim to contribute tocommunity development
through proactive
communication with everyonein the local community and adiverse community fellowship
program all around Japan.

We engage in diverse
activities based on an
occupational safety
management system toachieve employee health andsafety in the workplace.

87

Asahi Kasei Group Sustainability Report 2023

Quality Assurance
PolicyProducts and services provided by the Asahi Kasei Group internally and externally include materials, products, installations, various
services, and after-sales support. We believe that providing safe and reliable products and services that satisfy our customers is ourultimate mission.
In 2016, we established the Asahi Kasei Group Quality Policy and Group Quality Assurance Bylaws. Based on these, we promote
quality assurance to provide products and services that satisfy our customers and society.
As we enter an era of coexistence with the coronavirus and the post-coronavirus era, we have changed the Asahi Kasei Group
Quality Policy on August 1, 2020, to reflect our strong awareness of the need to regard discontinuous and irreversible structuralchanges as opportunities for reform and to act on our own initiative.

Asahi Kasei Group Quality Policy

The Asahi Kasei Group flexibly anticipates the constantly changing needs of customers and society to create and provide
products and services with quality that ensures safety and security.

Management Framework

In April 2019, we appointed a dedicated Executive Officer for Quality Assurance to further reinforce the management framework.
The Corporate Quality Ensurance department of Asahi Kasei Corporation oversees and coordinates Group-wide quality assurance
activities.
Corporate Quality Ensurance consists of three groups: the Quality Ensurance Group, which supports the enhancement of eachinternal organization’s quality assurance activities; the Product Safety Group, which functions to ensure our product safety as acomprehensive chemical manufacturer; and the Quality Ensurance Planning Group, which proposes new plans and provides smoothconnections between internal and external organizations. Corporate Quality Ensurance performs a head-office function as a hub for
the Group's quality assurance framework and strives every day to reinforce quality assurance activities throughout the Asahi Kasei
Group to deliver safe and reliable products and services to our customers and society.
Corporate Quality Ensurance prepares a Monthly Quality Assurance Report, based on which the Executive for ESH & QA and the
Executive for Quality Assurance hold monthly quality assurance meetings to discuss information related to quality assurance.
Each core operating company and strategic business unit within the Group performs quality assurance in accordance with the
products and services provided in each business area in conformity with uniform Group guidelines and bylaws.
The Group Quality Assurance Bylaws stipulate quality assurance activities for ESH & QA Administrators, such as the Presidents ofthe core operating companies and strategic business units, to lead. The bylaws also define the designation and roles of Quality
Assurance Managers who play a central role in activities to enhance quality assurance. The Quality Assurance Managers'
Conference is held four times a year to transmit and share information among the entire Asahi Kasei Group regarding quality
assurance activities. In addition, from fiscal 2019, we have started to provide an opportunity for the Executive Officer for Quality
Assurance and the Senior General Manager of Corporate Quality Assurance to meet directly with ESH & QA Administrators, Quality
Assurance Managers, and others to discuss the enhancement of quality assurance and for frank exchange of opinions and sharingof ideas through face-to-face meetings, thereby creating an environment that enables us to build a reliable quality assurance
system.
88

Asahi Kasei Group Sustainability Report 2023

Diagram of quality assurance framework
Quality Assurance Meeting (held each month):
Based on the Monthly Quality Assurance Report prepared by Corporate Quality Ensurance, theExecutive Officer for ESH & QA, the Executive Officer for Quality Assurance, and the Senior General
Manager of Corporate Quality Ensurance hold the Quality Assurance Meeting to discuss information
related to quality assurance.
Quality Assurance Managers' Conference (held four times a year):
Quality Assurance Managers, who play a central role in strengthening quality assurance, meet totransmit and share information among the entire Asahi Kasei Group.

Product safety initiatives
The Group has also formulated the Group Guidelines for Product Safety Measures in order to make the approach to product safety
in the Group Quality Assurance Bylaws even more specific.
Product safety measures are implemented at each stage of product development and product supply, to ensure product safety andto prevent product problems and complaints from emerging. In addition, we have also established appropriate measures to be taken
if a serious product problem or serious accident is likely to occur or if it does occur.

Flow of product safety measures

89

Asahi Kasei Group Sustainability Report 2023

Safety assurance procedures

The procedures for realizing safe products and services are specified by the Guidelines for Ensuring Safety of Equipment and the
Guidelines for Ensuring Safety of Chemicals.

Product safety procedure for equipment

Product safety procedure for chemicals

Chemical substance management
The Group identifies the properties of chemical substances and appropriately manages each process from product development,
raw material procurement, and production (including intermediates) through to use and disposal in order to ensure the safety of
products and production processes. We implement the chemical substance management shown in the diagram below at each stage
from the perspectives of the global environment, operational safety, workplace safety, hygiene, and health, and quality assurance(product safety).
Corporate Quality Ensurance (Product Safety Group) serves as the secretariat for the implementation of chemical substancemanagement in each business unit let by the Group’s Quality Assurance Managers.

Note: SDS stands for Safety Data Sheet.

Chemical substance management flow90

Asahi Kasei Group Sustainability Report 2023

R&D

The management of chemical substances begins in the R&D stage when the applications for chemical substances are determined,
and is guided throughout every stage by a commitment to developing products and process characterized by safe, environmentallysound production, handling, and use. For products that are expected to be exported to other countries in the future in addition to
being sold domestically, we conduct research on each country’s laws and regulations and consider the requisite measures.

Materials purchase
When purchasing materials, information related to the safety of chemical substances is received from the supplier. This information
serves as a guide to safe storage and handling.

Production
At the production stage, we manage chemical substances, including intermediates, in an appropriate manner to suppress emissions
into the environment. We also strive to prevent fires, explosions, and leaks at facilities where chemical substances are handled toensure the safety of local communities and preserve the global environment. The health of employees is protected by performing
sound risk assessment for chemical substances and preventing workplace exposure to hazardous substances.

Sale, use, and disposal
Guidance for proper use and disposal of chemical substances and chemical products is provided in Safety Data Sheets (SDSs),
technical bulletins, and product brochures.
Transport Emergency Cards are issued to guide the proper environmental and safety response in the event of an accident duringphysical distribution. Moreover, when products are exported outside of Japan, we take appropriate measures to comply with laws
and regulations, such as complying with the EU REACH regulation.

Quality assurance and human resources development
Development of core human resources for quality assurance
We have held the Quality Assurance Forum since fiscal 2017 to continue heightening awareness of quality assurance among
younger and mid-level employees across the Group. In fiscal 2022, 50 employees selected from throughout the Group gathered once
per month for a period of six months for a group discussion on a certain subject each time, combined with lectures on each subject
by outside experts (mainly university professors at the forefront of the Japanese Society for Quality Control). At the final session,
participants in each business sector discuss issues in their own organizations based on what they learned, and prepare proposals
to present to management.
In fiscal 2023, we are continuing this as a key project for in-house quality assurance training.

Fostering a quality assurance mindset among department and group managers
In fiscal 2022, we invited an expert lecturer from outside the company to hold a seminar on mental well-being for department
managers to further deepen their understanding of how to create an organization with a culture of openness. In addition, a Quality
Assurance Seminar for Managers was held to enhance on-site manufacturing.
Quality assurance training for department and group managers is slated to continue in fiscal 2023 and beyond.

91Fostering a quality assurance mindset among all employees

Asahi Kasei Group Sustainability Report 2023

Coinciding with Quality Month in November 2022, the President, the presidents of core operating companies, the president of each
SBU, and the Senior General Manager of Corporate Quality Ensurance issued messages for all Group employees about theimportance of quality assurance. Training via e-learning was conducted as well, further raising awareness on the subject for
employees.
This is slated to continue in 2023 and beyond as well.

Chemical substance management training
We provide regular training to research, production, and sales staff in each area of the Group. Such training includes sharing themost up-to-date information on the latest domestic chemical substance-related laws and regulations (Act on the Evaluation ofChemical Substances and Regulation of Their Manufacture, etc., Industrial Safety and Health Act, Poisonous and Deleterious
Substances Control Act, etc.) in Japan and overseas for the management of chemical substances and consideration of responses,
and presentations of the latest themes in chemical substance management.

Appropriate labeling and information provision
Providing appropriate information to our customers
The Group, which provides customers with products and services that are end products for domestic and household-use products,
provides information that includes product performance, precautions, and suggested usage to ensure safe use of our products andservices.
We endeavor to provide descriptions of products and services to customers, including product labeling and advertisements, that areeasy to understand and not misleading. In addition, we confirm the content of descriptions and advertisements of products andservices at each stage from product development and introduction to sale, and continuously check that there is no infringement ofrelated laws, regulations, or voluntary industry standards, and confirm that customers are able to properly use products andservices safely and reliably.

Compliance with the revised Food Sanitation Act
In June 2020, the revised Food Sanitation Act came into effect, and a new positive list (below “PL”) system was introduced.
The Group participates in a number of committees of the JCII (Japan Chemical Innovation and Inspection Institute) Food Contact
Material Safety Center, and it is continuing its activities to ensure that nothing is overlooked in the PL system and to provide
customers with appropriate information related to the PL system.

Responding to Globally Harmonized System (GHS)
Globally Harmonized System of Classification and Labelling of Chemicals (GHS) is a system for classifying and labelling chemicals
in accordance with globally unified rules in order to help with accident prevention and health and environmental protection. The
Group is advancing a program to classify the hazards of all of our chemical products in accordance with GHS categories, and revise
our SDSs and label our products with safety information accordingly.

92

Asahi Kasei Group Sustainability Report 2023

Compliance with chemical substance regulations around the world and sharing of information

As laws and regulations concerning chemical substances continue to be adopted around the world, such as the REACH Regulation*in the EU, we have been confirming, responding, and managing within the company to ensure compliance with them. In addition,some of these regulations require the sharing of information. Besides providing the necessary information to our customers, we
actively work to provide information on chemical substances contained in products throughout the supply chain. One of ouractivities is participating in the Joint Article Management Promotion-consortium (JAMP) as an upstream company since its
establishment in 2008. We continue to promote the use of chemSHERPA, a communication tool, as part of JAMP’s activities.
* Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) is a regulation in Europe on chemical substances. It obliges registrationof the usage and safety of chemical substances imported to or produced in Europe. Substances judged to pose high risks are subject to authorization
and restriction.

JAMP

Mechanisms to utilize customer feedback
We believe satisfying customers and providing products and services that are a delight to use translates into contribution to society.
In order to achieve this, we believe that it is most important to identify true needs by listening carefully to customer feedback toestablish two-way communication. The Group has built frameworks for such communication with customers in each of ourbusinesses and strives to listen to frank and honest feedback.

Communication with customers

Product and business inquiries

93

Asahi Kasei Group Sustainability Report 2023

CSR Procurement
PolicyIt is the policy of the Asahi Kasei Group to consider suppliers asimportant partners and to treat them with sincerity.
Our Mission and Vision for procurement are an expression of ourideals to apply in daily activities as we work to uphold our
Procurement Policy and promote procurement practices with anemphasis on CSR.
Accordingly, we consider suppliers from an environmental aspect,
including energy use and climate change, biodiversity, reducing
pollution and waste, and efficient use of resources, and also froma social perspective, including discrimination, equal opportunity,
freedom of association, and compliance with local laws
concerning working hours and wages.
A relationship of mutual trust with our suppliers is fosteredthrough fair and principled purchasing practices based on
regulatory compliance and respect for the environment andhuman rights.
The Asahi Kasei Group Procurement Policy （100.6KB）
The Asahi Kasei Group Procurement Principles

Supplier Guidelines
We conduct business activities in various countries and regions around the world, and are expected to address social issues toachieve a sustainable society, including measures against climate change and respect for human rights, not only within the Asahi
Kasei Group but throughout the entire supply chain as well.
For this reason, we formulate our Supplier Guidelines as a tool for promoting CSR procurement based on our Procurement Policy. In
order to help our suppliers understand our Group’s policies, we have made them available on our website together with our
Procurement Policy, and strive to publicize them when requesting CSR procurement questionnaires. We will also monitor
compliance through CSR assessments of our suppliers and cooperate to make improvements.
Supplier Guidelines （92.2KB）

94

Asahi Kasei Group Sustainability Report 2023

Management Framework

Corporate Procurement & Logistics is responsible for the Asahi Kasei Group Procurement Policy, and the department cooperates
with the Sustainability Strategy Planning Department to familiarize Group company personnel with the content.
In fiscal 2022 we established a Supply Chain Sustainability Promotion Group within Corporate Procurement & Logistics tostrengthen CSR procurement activities in procurement and logistics functions. In addition, in light of recent changes in the
procurement environment, we are promoting activities with the following system regarding supply chain management.

Supply Chain Management Framework

Participation in the Declaration for Partnership Building system
In 2022, Asahi Kasei endorsed the Declaration for Partnership Building in support of
the Council for Promoting Partnership Building to Open Up the Future, promoted by the
Cabinet Office, the Small and Medium Enterprise Agency, and other organizations.
In our declaration, we have specified the following:
We agree with the purpose of the White Logistics Movement, and based on ourvoluntary action declaration, we are working to improve logistics based on mutual
understanding and cooperation with suppliers, logistics operators, and other relatedparties.
We have established Supplier Guidelines in an effort to promote understanding andinitiatives among our suppliers in areas such as human rights, labor, health andsafety, the environment, and ethics.
We continue to provide in-house training on the Act against Delay in Payment of
Subcontract Proceeds, etc. to Subcontractors.
95

Asahi Kasei Group Sustainability Report 2023

We will continue to aim to build new partnerships by promoting collaboration, coexistence and co-prosperity with our business partners in the supply chain.
In addition to the Asahi Kasei Group, Asahi Kasei Homes, Asahi Kasei Pharma, andAsahi Kasei Medical have also announced their endorsement of the Declaration forPartnership Building.
Declaration for Partnership Building portal site (external website)

Raising awareness of Procurement Policy and Supplier Guidelines
To ensure that suppliers are familiar with our Procurement Policy and Supplier Guidelines, we strive to raise awareness by
disclosing them on the website and asking them to complete our CSR procurement questionnaires. In fiscal 2022, we held an online
briefing session for 59 suppliers newly applicable to the CSR procurement questionnaire, during which we also explained our
Procurement Policy and Supplier Guidelines.

Evaluation of CSR at suppliers
The Asahi Kasei Group is working with its suppliers to promote CSR procurement with the aim of constructing a sustainable supply
chain.
We conduct supplier surveys as part of our CSR procurement from two perspectives, 1) evaluation at the commencement of newtransactions and 2) ongoing evaluation of suppliers.

Approach to new suppliers
When we start doing business with a new supplier, we evaluate, including from a CSR perspective, whether or not we can dobusiness with them after conducting a preliminary screening based on our Procurement Policy.

96

Asahi Kasei Group Sustainability Report 2023

Process flow for new suppliers

If significant problems are detected during the preliminary screening, we encourage suppliers to make improvements as soon as
possible. If subsequent screenings do not confirm that the issues have not been rectified, business dealings may not be possible.

Approach to ongoing suppliers
To ensure that our suppliers continue to carry out their business activities aware of their corporate social responsibilities, we
conduct and disclose the results of CSR procurement questionnaires using the latest version of the UN Global Compact's CSR
Procurement Self-Assessment Tool Set. In this way, we are improving the level of CSR by cooperating with our suppliers, andavoiding environmental and social risks in the supply chain.

Question categories
1. Corporate governance related to CSR
2. Human rights
3. Labor
4. Environment
5. Fair corporate activities (ethics and compliance)
6. Product safety and quality assurance
7. Information security
8. Supply chain
9. Harmony with the local community
FY2022 CSR Procurement Questionnaire （1.1MB）97

Asahi Kasei Group Sustainability Report 2023

FY2022 CSR Procurement Questionnaire

In fiscal 2022, we asked 216 of our major material suppliers to complete a questionnaire, and received responses from 214
companies. The suppliers that responded account for approximately 80% in terms of contract value of the material suppliers that do
business with the Corporate Procurement & Logistics Department.
(The Asahi Kasei Group considers suppliers of equipment and construction-related work to be material suppliers)

Number of responses and results to our CSR Procurement Questionnaire
RatingRaw material suppliers

Material suppliers

FY2019FY2021

FY2020

FY2022

A

54(68%)

79(78%)

77(41%)

119(56%)B

15(19%)

17(17%)

67(36%)

60(28%)

C

6(8%)

3(3%)

31(17%)

28(13%)

D

5(6%)

2(2%)

12(6%)

7(3%)

Total

80

101

187

214

By category, results for Labor, Fair Corporate Activities, Product Safety and Quality Assurance, and Information Security were high,while results for the Environment, Supply Chain, and Harmony with the Local Community were relatively low.

Results of CSR Procurement Questionnaire (FY2022)

The Asahi Kasei Group sends out feedback sheets to those suppliers who have responded to our CSR Procurement Questionnaire.
In addition, for suppliers that received a C or D rating, we visit them or conduct online interviews to confirm the situation and offer
support for improvements.
If significant problems are detected as a result of the talks, we exchange ideas with the supplier and encourage them to make
improvements as soon as possible. If follow-up screenings do not confirm that the issues have been rectified, we will consider
halting or reviewing business dealings.

98

Asahi Kasei Group Sustainability Report 2023

In fiscal 2022, we conducted interviews with 43 suppliers (38 material suppliers and 5 raw material suppliers) who received a C or D
rating in the fiscal 2020 questionnaire (material suppliers) or the fiscal 2021 questionnaire (raw material suppliers). However, in
fiscal 2022, no significant issues were discovered with any of our suppliers.
Interviews with the remaining five companies that were rated C or D in the fiscal 2020 questionnaire (materials suppliers) werecompleted in fiscal 2021 with no significant issues confirmed.
For suppliers ranked C and D in the fiscal 2022 questionnaire, we individually evaluated and analyzed all responses and risks to the
supply chain, and are communicating with them as needed regarding improvements based on our Group’s feedback.
CSR Procurement Questionnaire Feedback Sheet （190.5KB）

Process flow for ongoing suppliers

Supplier environmental certification
In the CSR procurement questionnaire, we also surveyed the status of environmental management systems by acquiring a thirdparty certification system such as the international standard ISO 14001. Approximately 80% of our major raw material suppliers (outof 101 companies) in the fiscal 2021 questionnaire and approximately 70% of our major material suppliers (out of 214 companies) in
the fiscal 2022 questionnaire have systems and mechanisms in place to promote environmental protection.

Training for Employees
To promote sustainability activities, Corporate Procurement & Logistics has been providing ongoing training to employees inprocurement-related departments about sustainability in general in cooperation with the Sustainability Promotion Department andthe procurement departments at subsidiaries and affiliates. The details of training activities in fiscal 2022 are as follows:
Training

Content

Summary of Training

Procurement Personnel
Training (1)Supply chain risk management

Target: Personnel in charge of raw materials
Participants: 19

Procurement Personnel
Training (2)Promoting initiatives on human rights
issuesTarget: Personnel in charge of raw materials,
personnel in charge of materials
Participants: 159

Lecture on Addressing
Medium- and Long-termIssuesGeneral knowledge regarding
sustainability and Asahi Kasei'ssustainability

Target: Personnel in charge of raw materials,
personnel in charge of materials, personnel incharge of logistics
Participants: 115

99

Asahi Kasei Group Sustainability Report 2023

Communication with stakeholders

Safety seminars are periodically held at our principal production sites to discuss accident prevention and exchange information with
suppliers.
We also actively engage in close communication with our suppliers by actually visiting them, or having them visit our offices, toinform them about sustainability-related trends and promotional activities, as well as to exchange views. We will continue toenhance mutual communication, improve safety, and promote sustainable procurement.
The Asahi Kasei Group compliance hotline also accepts reports and inquiries from suppliers.

Response to conflict minerals
It is a global trend that more and more countries are banning the procurement of minerals from inhumane armed groups,
particularly in the Democratic Republic of the Congo and neighboring countries. In the US, this is required by the Dodd-Frank Act of2010.
The Group considers conflict minerals to be a serious issue, and our policy is to ensure transparency in our supply chains and to
procure minerals responsibly. We do not obtain, procure, or utilize minerals from armed groups, and avoid supporting conflict andinhumane activities.

2022 Initiatives
In fiscal 2022, we sent a request to our suppliers to investigate all of the 20 raw materials we procure to see if any fall underconflict minerals (tantalum, tin, tungsten, gold, cobalt, and mica). As a result, we were able to confirm that all of the raw materials
we procure are not conflict minerals.

100Asahi Kasei Group Sustainability Report 2023

Human Resources
Human Resources
Strategy

Human resources
development and active
engagement

Diversity,
Equity & Inclusion (DE&I)

Employment and Labor
Practices

Human Resources Principles
The Asahi Kasei Group's Human Resources Principles, established in March 2006, outline the values and behavioral guidelines thatshould be embraced by each and every employee—our human resources. By ensuring that our employees act in accordance withthese principles, we aim to establish it as part of our corporate culture and achieve both growth for each and every employee anddevelopment for our Group.

The Asahi Kasei Group Human Resource Strategy
In 2022 we celebrated the centennial of our founding. Since the beginning, we successfully grew our business by solving social
issues that have changed with the times, and continuously transforming our business portfolio. In light of these circumstances, andthe recognition of the need for further transformation towards a sustainable society, we launched a Human Resources Strategy
Project in fiscal 2021, led by the President, and developed our human resources strategy aligned with our medium-term
management plan for fiscal 2024 focused on the theme “Be a Trailblazer,” which began in fiscal 2022.

Two-pillared human resources strategy: lifelong growth and co-creativity of diverse individuals
The current medium-term plan uses the term “A-Spirit” to describe what we expect out of our employees. The 'A' represents thefirst letter of ‘Asahi Kasei’, signifying that our employees are expected to have ambitious motivation, a healthy sense of urgency,
quick decisions, and a spirit of advancement as they embrace new challenges.
We believe that these efforts will enable us to further develop and leverage our intangible assets, including our open and frankcorporate culture, diverse talents and technologies, as well as the Group Values of sincerity, challenge, and creativity that havebeen nurtured over the past 100 years. A fundamental transformation of our business portfolio will require us to reawaken the ASprits, and we need human resources and organizations that will keep taking on challenges and making changes proactively anddecisively. With this in mind, the current medium-term plan identifies “lifelong growth” and “co-creativity” as the pillars of ourhuman resources strategy.
101

Asahi Kasei Group Sustainability Report 2023

Our lifelong growth strategy focuses on the following two areas in particular: 1) Encourage all employees to envision their own
career goals and continue learning/challenging for growth, 2) Strengthen management skills to maximize the abilities of individuals
and teams.
In order to enhance our co-creativity, we will focus on ‘expanding’ and ‘connecting’ diversity. By organically linking the Asahi Kasei
Group’s diverse technologies, businesses, and human resources, we will create value that is distinctively ours.

The Asahi Kasei Group Human Resource Strategy

Specific initiatives related to “lifelong growth” are described on the "Human resources development and active engagement" page,
and those related to “co-creativity” are described on the “DE&I” page.

102

Asahi Kasei Group Sustainability Report 2023

Human Resources
Human Resources
Strategy

Human resources
development and active
engagement

Diversity,
Equity & Inclusion (DE&I)

Employment and Labor
Practices

PolicyBased on the idea that "everything starts with people — people are our most valuable assets," the Asahi Kasei Group upholds a
policy of “lifelong growth” whereby we encourage challenge and growth in the development of our human resources. Regarding thispolicy, we will focus on the following two objectives: 1) Encourage all employees to develop their career path independently andcontinue learning and challenging themselves for growth, 2) Strengthen management skills to maximize the abilities of individuals
and teams.

Human resource development system
We offer a combination of ‘training by rank’ and ‘training by goal’ programs to help employees develop their skills and improve job
performance. In addition to building basic skills to carry out their tasks, we support the line managers, develop top management
candidates in the next generation, and foster individuals who will be successful globally.

Diagram of human resources development system in fiscal 2022

1 KSA is the name of our engagement survey for vitality and growth assessment.
2 FLY is an abbreviation for Future Leaders of the Young and next generation, a selective program to foster next-generation leaders.
103Asahi Kasei Group Sustainability Report 2023

Reference: Asahi Kasei Group's investment in training per employee (actual)
FY2020

FY2021

FY2022

Investment in training (total)

2,129,282 (thousandyen)

2,806,147 (thousandyen)

3,471,596 (thousandyen)

Investment in training (per employee)

126 (thousand yen)

166 (thousand yen)

198 (thousand yen)

21.5 (hours)

22.3 (hours)

25.7 (hours)

Time invested in training (peremployee)
Human resource training-related data

Measures to support self-directed career development
Introduction of “CLAP” reskilling program
CLAP stands for Co-Learning Adventure Place, our unique program for employees to learn any content from over ten thousandcourses for free. This program supports employees in acquiring necessary skills for their workplaces and facilitates reskilling toadapt to environmental changes and business transitions. As part of the CLAP rollout, we have incorporated the “learning together”
concept, while helping continuous learning to fulfill their responsibilities and career goals. By leveraging people’s appeal andrelationships, we offer opportunities for them to learn together and have fun at the same time.

Encouraging the senior generation’s participation by extending the retirement age
In this rapidly changing era, there is a growing number of issues that require the wisdom and experience of diverse humanresources. Given the age distribution, it is also imperative to transfer technological skills to younger generations. Therefore, wehave extended the retirement age to 65, effective from fiscal 2023, hoping that all employees will further develop their expertise andremain active beyond the age of 60. In addition, we have updated our rehiring program and introduced a new benefit plan toempower employees so that they can enhance their skills and fulfill their expected roles, reach their full potential, and lead fulfilling
lives.

Position posting system
We adopted an open recruitment policy in fiscal 2003. Since then, dozens of employees voluntarily move from one department toanother to take on new challenges each year. The number of transfers under this program has been growing in recent years, from
25 employees in 2020, 53 in 2021, to 67 in 2022. To support lifelong growth and self-directed career development, which are thepillars of our human resources strategy, we aim to revitalize the workforce by expanding the scope of concurrent roles within thecompany, enabling employees to gain experience outside their departments for a certain period.

104

Asahi Kasei Group Sustainability Report 2023

Supporting independent study

In October 2003, the Asahi Kasei instituted a program to support independent study by employees. To encourage employees toacquire higher level specialized or technological ability, the company will pay part of the cost of attending courses or lectures. In
fiscal 2022, a total of 1,260 employees utilized the program.

Measures to improve management capabilities to draw out the strengths of individuals
and teams
We aim to create an organization that can enhance vitality and spur the growth of both individuals and the organization.

Action for improved engagement KSA (vitality and growth assessment)
In fiscal 2020, we reviewed the content of our existing employee awareness survey and introduced KSA (vitality and growthassessment), a new survey that aims to confirm work engagement and behaviors conducive to growth. The survey is provided oncea year to all employees in Japan, and the report is provided to line managers as reference information for understanding the current
state of their organizations. We also engage in activities aimed at creating a better workplace through dialogue with employees.
At the same time, we conduct stress checks to identify health risks and create an environment in which each employee can achievesustainable growth while maintaining good physical and mental health.

105

Asahi Kasei Group Sustainability Report 2023

Note: Answer on a scale of 1 to 5.

Enhancing management skills and developing upper-management candidates
We offer an extensive training program for manager-class personnel, who play a key role in organizational management. The
program includes group training on management, e-learning, 360-degree feedback, 1-on-1 lectures, and courses on KSA (seeabove). In fiscal 2020, we started offering personal coaching for department managers to help them solve problems on their own. As
of February 2023, two hundred people out of 680 manager-class employees have already completed the program.
We also put emphasis on the development and acquisition of upper management talent. In addition to encouraging their personal
growth through coaching, we offer programs to strengthen leadership and teamwork. Every year, several employees are designatedas Group Executives* through this program. As of April 2023, there were 36 Group Executives, and 76 department/division managerclass individuals in the candidate pool to become Group Executives. We will maintain this talent pool in terms of both quality andquantity.
* Those selected from among the Executive Officers, who have the responsibility and authority to enhance the Asahi Kasei Group’s value as a whole,are designated as Group Executives with the approval of the Board of Directors. Specifically, these are Lead Executive Officers or above in Asahi
Kasei, as well as Executive Officers of equivalent standing in the core operating companies.

Developing digital human resources to promote Digital Transformation (DX)In 2021, we formulated DX Vision 2030 to promote the development of DX as a pillar of our growth strategy. We will strive toachieve a sustainable society a reality by maximizing the benefits of digital technology.
The most important factor in promoting DX is digital human resources. While enhancing DX training by employee level, we areworking to increase the number of digital professionals who can promote advanced digitalization to 10 times as many as in fiscal
2021 by the end of fiscal 2024. As part of our DX training for all employees, in April 2021 we launched an internal “Open Badge
System” to promote the acquisition of fundamental digital knowledge, and we are also developing a DX training program forbusiness managers.

106Asahi Kasei Group Sustainability Report 2023

Functional enhancement of HR Dept.
For successful human capital management, it is essential to enhance the organizational capacity of the HR department, which plays
a crucial role in achieving this goal. Upon redefining the capabilities required for the HR department in the future, we put particularemphasis on improving data utilization skills and career consulting capabilities. As for the data utilization skills, we have developed
an in-house program, supervised by Professor Hiroya Hirakimoto of Osaka University, to equip all HR members with data collection
and analysis skills (as of the end of fiscal 2022, 77 people have completed the courses). We also encourage employees to obtainnational career consultant certifications. As of April 2023, 27 employees have been certified. In fiscal 2022, we established theCareer Development section to support the career development of our employees, as a measure to provide enhanced career
solutions for the senior generation, young and mid-career workforce.

107

Asahi Kasei Group Sustainability Report 2023

Human Resources
Human Resources
Strategy

Human resources
development and active
engagement

Diversity,
Equity & Inclusion(DE&I)

Employment and Labor
Practices

PolicyThe Asahi Kasei Group Code of Conduct clearly stipulates that "we must respect individuals' basic human rights and diversity, notdiscriminate on the basis of nationality, ancestry, ethnicity, religion, gender, ideology, age, physical characteristics, sexual
orientation and gender identity, employment status, form of contract, etc., nor condone such discrimination" as company policy. We
promote the establishment of a vibrant workplace that ensures equal opportunity and enables all employees to perform at their best
without experiencing discrimination. We aim to instill our company policy to prevent any discrimination or harassment throughcorporate ethics training for employees at each level, including new hires, newly appointed assistant managers, and section
managers. Additionally, we consistently provide corporate ethics training tailored to specific business units and geographical areas.
We have also identified “co-creativity” as one of the pillars of our human resources strategy in the current medium-term
management plan. To respond to a rapidly changing business environment and continue creating new value, it is essential for us toenhance “co-creativity” by leveraging diverse human resources to collaborate in new business development. Diversity, equity &inclusion (DE&I) is one of our key management strategies. To leverage our co-creativity, we must ‘expand’ and ‘connect’ ourdiversity, organically integrating technologies, businesses, and human resources to bring out our unique value.

Management Framework
Recognizing the importance of developing an organization comprised of talented individuals with diverse backgrounds to ensure oursustainable growth, we promote the diversity, equity and inclusion (DE&I) initiatives group-wide, led by the Diversity Promotion
Office, a department dedicated to addressing this subject. At the same time, we are working to strengthen our promotion framework
by establishing a committee led by the upper management and business unit leaders to monitor and expedite the progress of DE&I
initiatives.

Development of diverse professionals through the Group Masters program
We employ a "Group Masters" program to broaden the segment of human resources with expertise that holds universal value
through the appointment, training, and treatment of human resources expected to be actively involved and participating in creating
new business and strengthening existing business as "Group Masters." Under the program, we have defined five categories ofGroup Masters. We have clarified the respective roles of each Group Master category and enhanced treatment to create amechanism that encourages the growth of human resources while securing outstanding external human resources at the sametime.
We have also formulated a succession plan for Group Masters in each field, and have linked the succession plan to business
reinforcement and human resource development, which will strengthen our competitive edge.
108

Asahi Kasei Group Sustainability Report 2023

Categories and roles of Group Masters

Target areas

109Changes to the Group Master Specialization Fields in fiscal 2023

Asahi Kasei Group Sustainability Report 2023

Core Technology fields

Core Platform fields

Business unit-specific fields

Among Core Technology fields, three
related to production technology werereclassified into the following six:
Chemical process technology
Polymer processing technology
CAE technology
Measurement, control, andmechanical systems technology
Design and construction technology
Plant engineering

The following were newly added
among administrative staff fields:
Procurement and logistics
Insurance and risk management
Institutions and shares

The following was newly establishedin the Homes sector:
Homes procurement

To achieve the objectives of creating new business and expanding our businesses through the Group Masters system, we havebeen reviewing and enhancing our specialization fields every year in line with our business policy.
In fiscal 2023, new fields were established and appointment requirements were reviewed as follows.
In the field of production technology, key technologies have changed considerably in response to changes in the businessenvironment. We have created an environment enabling us to develop highly skilled human resources and pursue technologicaladvancement by optimizing the division of fields to match the actual situation. We have recategorized the fields to facilitate
collaboration with other areas and contribute to the Asahi Kasei Group’s business.
The growing complexity of procurement and logistics operations has urged us to strengthen the expertise of the organization
through the development of personnel with high expertise who can lead in this field. Given this situation, we set up a new field
specializing in procurement and logistics along with its assignment requirements. Furthermore, since Asahi Kasei Homes needs
expertise specific to the housing business as well, we established Homes procurement as a separate field and defined its
assignment requirements.
To address the need for risk financing and avoidance/mitigation measures for the qualitatively and quantitatively visualized risks,
we established a new field of insurance and risk management, along with its assignment requirements.
In response to the increasingly sophisticated demands of investors for corporate management coupled with the need for better
corporate governance based on an understanding of the Group's business, we established a new field for institutions and sharesalong with its assignment requirements.

110

Asahi Kasei Group Sustainability Report 2023

Number of Group Masters and Targets

In our medium-term management plan that began in 2022, we set the KPI for the number of Group Masters to reach 300 in total by
fiscal 2024, but because we are almost there as of 2022, we have increased the KPI to 360.

Group Master Numbers and Targets

Expansion of opportunities for women
Based on the belief that the expansion of opportunities for women is one of the key elements of DE&I promotion and that advancing
this initiative will lead to an environment in which a diverse array of human resources can play an active role regardless of gender,other attributes and age, etc. we established a dedicated organization (currently the Diversity Promotion Office) in 1993 to foster anenvironment in which women can continue working through expanded job opportunities and support measures that help them tobalance work and family life. Since the 2010s, we have supported career development by providing handbooks to supervisors
containing reference information on nurturing female employees who joined the company right after college. We also conducted
seminars prior to maternity leave and on returning to work. Additionally, we offered a mentor program to support the careerdevelopment of female managers after experiencing childbirth, child care, and other life events. In 1994, we had only three female
managers, but as of June 1, 2023, the number has increased to 309. At the upper management level, we currently have two female
Executive Officers, two female Directors, and one female Audit & Supervisory Board Member.
Under our medium-term management plan announced in April 2022, we declared our intention to focus on the ratio of female
managers in leadership positions (for line posts and highly specialized positions) as an indicator to measure the success of ourdiverse human resources (FY2030 target is 10%). The ratio is also reflected to the remuneration of Executive Officers. In addition,
based on these developments, our Action Plan for the expansion of opportunities for women has been revised as follows.

Changes in the number of female managers
111Asahi Kasei Group Sustainability Report 2023

Asahi Kasei Group Action Plan*

We have developed an action plan to promote the active participation of women
more than ever. As part of our efforts to create an environment in which diverse
human resources with various values and backgrounds can play an active role
together and contribute to the growth of our business and organization.

Term

FY2022 to 2025

Content

Objective 1
Expand the human resources that can be candidates for senior management whoplay a leading role:
Increase the number of female managers by 40% from the number as of March
31, 2021
Latest status: 36% increase (as of June 1, 2023)
Objective 2
Aim for a situation where women are active in positions where they play aleading role:
Aim to increase the ratio of women in positions of Manager and above and inGroup Master positions to at least 10% by the end of fiscal 2030, and implement
the following during the term:(1) Formulate and implement action plans for promoting women’s active
involvement within business organizations(2) Spread understanding of the importance of diversity and inclusion initiatives,
including the promotion of women's active involvement
Latest status: 3.9% (as of June 1, 2023)* Asahi Kasei, Asahi Kasei Microdevices, Asahi Kasei Homes, Asahi Kasei Construction Materials, Asahi Kasei Pharma, and Asahi Kasei Medical

Promotion of work style reforms
The Asahi Kasei Group is promoting work style reforms to enable all employees to reach their full potential in alignment with social
trends.
In response to the spread of COVID-19, the work-from-home program introduced in 2019 was extended as a temporary work-fromhome policy. In July 2022, this temporary arrangement became permanent with the introduction of telecommuting aid. Specifics are
as follows:
Work from home programEliminated limit on number of times the program can be used
Expanded eligibility for new employees, etc.
Introduced work-from-home allowance

Flexible work hours without core
hours

Systematized concept of “interval” between working hours and applied to eligible
employees

112Asahi Kasei Group Sustainability Report 2023

Balancing work and family life

In order to improve the balance of work and family life, the Asahi Kasei Group complies with laws and regulations aimed ateliminating and reducing long working hours and provides various forms of support for employees to work with security and vitality
in accordance with their individual circumstances and values from the perspective of balancing work and family life. At the sametime, we also foster a workplace environment that facilitates utilization of the provisions by raising awareness of them through our
corporate intranet and offering management support for superiors. Many of the provisions we offer are also available to non-regular
employees with some changes to the details, and are actually utilized by them.

Parental leave
Our parental leave is available through the fiscal year in which thechild turns 3 years old at Group companies in Japan*.
In fiscal 2022, 844 people took advantage of the parental leave, of
which 538 were men and 306 were women. The parental leave
utilization rate for men who had a newborn child was 77.5%.
As an initiative to support male employees in taking parental leave,
we launched the “Papa and Pre-parent Seminar” in April 2021. The
program includes explanations of the parental leave system andother systems to support balancing work and child care, as well ascase studies shared by those who have taken child care leave. A
total of 110 individuals participated in fiscal 2022.
* Regular employees of Asahi Kasei, Asahi Kasei Microdevices, Asahi Kasei

Homes, Asahi Kasei Construction Materials, Asahi Kasei Pharma, Asahi
Kasei Medical, and major affiliates in Japan are eligible.

* Number of employees who took parental leave in each fiscal year

Employees using parental leave

Shortened working hours for child care
At Group companies in Japan*, employees are able to utilize
shortened working hours to care for preschoolers, with theworking day shortened by up to 2 hours until the child enterselementary school. In September 2007, a provision called “Kids
Support” was added to enable employees with children until theend of the third grade of elementary school can work in a shorttime as well. These provisions may be used concurrently with a"flex-time" system for flexible working hours.
In fiscal 2022, 462 employees took advantage of shortened
working hours for childcare and kids’ support, one of whom was amale employee. In April 2020, we began to expand the applicable
period of the shortened working hours system for childcare forcontract employees (up to the start of elementary school) and theapplication of the kids support system.
* Asahi Kasei, Asahi Kasei Microdevices, Asahi Kasei Homes, Asahi Kasei

Construction Materials, Asahi Kasei Pharma, and Asahi Kasei Medical

113

Shortened working hours for child care・Utilization of “Kids
Support” shortened working hours for child careAsahi Kasei Group Sustainability Report 2023

Platinum Kurumin certification markIn 2016, Asahi Kasei Corp., Asahi Kasei Microdevices Corp., Asahi Kasei Pharma Corp., and Asahi
Kasei Medical Co., Ltd. received Platinum Kurumin certification from the Ministry of Health, Labor andWelfare. Platinum Kurumin certification is awarded in recognition of proactive support for thedevelopment of the next generation which is particularly outstanding.

Support for family careGroup companies in Japan* have established systems to support caring for family members that go
beyond legal stipulations to provide support for balancing work with care for family members.
Leave of absence for family care:
A leave of absence of 245 days in total is available for each disease of each family member who
requires care.
Shortened working hours for family care:
A total of 1,225 days for each family member who requires care
Flexible working hours for family care:
Flex-time system for working with short core times, etc.
Since 2011, our Group has held seminars on balancing work and family care at various locations
throughout Japan. Since 2020, the seminars have been held online for our Group employees throughout
Japan. We are working to meet a diverse array of needs, such as by offering “Seminars for Supervisors
with Subordinates Balancing Family Care and Work” from 2018 to 2020, “Seminars on Balancing Work andFamily Care: Basic Knowledge” in 2021, and “Seminars on Balancing Work and Caregiving: Long Distance
Caregiving” in 2022.
The free caregiving telephone consultation service (available 365 days a year and 24 hours a day to all
Group employees and their family members), which was launched in April 2019, has been used for over 18
cases over the year. Furthermore, in April 2020, we expanded our short-time work program for caregivers
as a measure in response to the increase in the number of at-home caregivers.
At the same time, in order to create an environment that facilitates utilization of these systems, we
disseminate information on balancing work and family care and information about these provisions
through our corporate intranet and distributed booklet on balancing work with care for family members(since January 2013).
* Asahi Kasei, Asahi Kasei Microdevices, Asahi Kasei Homes, Asahi Kasei Construction Materials, Asahi Kasei Pharma,and Asahi Kasei Medical

114

Booklet on balancing
work with care forfamily members

Asahi Kasei Group Sustainability Report 2023

Main provisions to support balance in work and family life

Personnel transfers across business sectors
We have been engaged in cross-sector personnel transfers for some time. In fiscal 2022, approximately 300 employees weretransferred across our business sectors. (The number includes those affected by organizational reforms.) A recent example of our
expansion through these efforts is the overseas expansion of Asahi Kasei Homes. We expanded the business at a faster pace byleveraging our group-wide resources, knowledge, and business foundations. This overseas expansion has led to growth in Asahi
Kasei Homes business and increased its cash generating capacity. Our group-wide efforts to expand business by leveraging humanresources like this are the fruit of our “diversity in business and technology” referred to as intangible assets. We plan to further
strengthen such efforts in the future.

Introduction of CaMP (talent management system)
In fiscal 2022, we began using this talent management system to visualize our human resources. We call this talent management
system as CaMP, which stands for Career Management Place. Using the CaMP, we aim to promote “co-creation” by centrally
managing personnel information, including career plans, expertise, and experience, and by providing support for growth, such as
human resource development and personnel allocation.

115

Asahi Kasei Group Sustainability Report 2023

Development of global human resources

We have implemented measures aimed at promoting global business development from the human resources perspective, as
defined in our medium-term management plan. These include “Study Abroad Program Open to All” and “Short-Term Overseas
Training Program” for young employees who wish to gain overseas experience, as well as “Overseas Practical Training Program” forselected employees aspiring to be a manager of our overseas subsidiaries, and “Study Abroad Program for Nominated Employees"
for those who want to be involved in global business development. We are also working to develop local talent in our overseas
subsidiaries to strengthen their co-creation skills.
We provide and administer programs tailored to their situation, including the relocation of local employees overseas, raisingawareness about our philosophy, providing intercultural communication and manager training.
For example, in China, Asahi Kasei (China) Co., Ltd. provides all local subsidiaries of Asahi Kasei in China with open lectures, aswell as human resource development programs based on their job function and level.
In addition to increasing the number of foreign nationals and local hires in key positions overseas to support business development
outside Japan, we promote initiatives that foster talented individuals who will contribute to the Asahi Kasei Group’s success beyond
their roles in the respective fields. For example, during the review of the medium-term management plan that began in 2022, theleadership candidates in the U.S., Europe, China, and Japan discussed the ideal for the Asahi Kasei Group in 2030. The
recommendations made during this discussion formed the basis of the “Be a Trailblazer” concept of our medium-term managementplan.
We also actively promote talented individuals who joined the Asahi Kasei Group through international M&A and became involved inmanagement as Executive Officers.
Note that Asahi Kasei Corporation has seven non-Japanese Executive Officers in fiscal 2023.

Employment of persons with disabilities
The Group supports all employees regardless of disability status
so that they can fulfill their potential and work in comfort.
Asahi Kasei Ability Corp. was established in 1985 as a special
subsidiary for the employment of persons with disabilities,
performing a wide range of services for the Asahi Kasei Group,
including office automation services such as data entry, digitizing
documents (conversion to PDF files), website design, printing ofbusiness cards, document printing and binding, dispatch of sample
products, cleaning, copying, and planter box gardening. Our Group
offers a variety of services, including data entry, digitization of
documents (into PDFs), OA services such as website creation,business card creation, printing and bookbinding, serving as anagent for sample shipments, cleaning, transcription, and tending
to flowers.
The statutory employment rate for persons with disabilities infiscal 2022 was 2.3%, while the Asahi Kasei Group’s annual hiring
rate for the year was 2.40%*. As of March 31, 2023, it was 2.38%(657 persons), which is above the legal requirement.
* The rate of employment and the number of persons employed are theaverage figures for each fiscal year for applicable companies of the Asahi
Kasei Group. Calculations are based on total employment of 27,607
persons at the 23 applicable companies as of March 31, 2023. (number of
persons calculated in accordance with the Act on Employment Promotion,etc. of Persons with Disabilities)
116

Rate of employment and number of persons with disabilities
employed*Asahi Kasei Group Sustainability Report 2023

Initiatives at Asahi Kasei Ability(1) Expanding Existing Operations
1. Creating banana paper business cards
We use banana paper, which is made from banana fiber extracted from organic banana stems, as a material for making
business cards, whereas previously it was disposed as waste. In terms of SDGs, these business cards have been attracting a
lot of attention within our Group as well, and requests for their production have increased, leading to their expansion.
2. Expansion of ceramic business (handmade ceramics)
We have been developing job duties suitable for the unique natures of various disabilities, and we have continued
conducting operations in the agriculture industry, ceramics industry, and coffee processing. This allows us to ensure a wide
variety of work processes and provide manufacturing work experience by having employees use their hands and fingers. In
March 2023, we purchased a new electric furnace and began using it in production to meet the rising demand for products
like chopstick rests and small plates.

Working with ceramics

Crafted chopstick rests(2) Abilympics (skills competition for people with disabilities)
Many employees from Asahi Kasei Ability participate in the Abilympics (a skills competition for people with disabilities) in various
prefectures every year and win prizes. In fiscal 2022 national competition (held in Chiba Prefecture), nine employees participated as
prefectural representatives, and two employees won Silver Awards in the office assistant category. In March 2023, the 10th
International Abilympics was held in Metz, France, and a member of Asahi Kasei Ability represented Japan to compete in the
dressmaking category, showcasing skills acquired through daily work in Japan and abroad.

A scene from the sewing competition

Group photo of the participants117Asahi Kasei Group Sustainability Report 2023

System to Support the Activities of All Motivated Human Resources

In addition to promoting the active participation of women and people with disabilities, we have developed a wide range of
supportive measures to create an environment that supports the individual circumstances of our employees and allows them to fully
demonstrate their abilities.
For example, we have established a rehabilitation work system that allows employees to resume work in a phased manner inaccordance with the instructions of an industrial physician to support a smooth return to work after a period of medical treatment.
In March 2023, we launched a new program called “Time off for medical appointments” to assist employees in balancing work
responsibilities with necessary medical care. This program provides support for employees who are in need of hospital visits for
medical care or infertility treatment.
As globalization continues to advance, an increasing number of personnel have a spouse who is transferred to an overseas
assignment. In fiscal 2013 we adopted a provision for such personnel to take a leave of absence to accompany their spouses living
overseas. In fiscal 2022, this provision was utilized by 11 personnel (including 0 male employees).
In January 2021, we began offering equal recognition to same-sex partners as married couples under our internal rules to support
LGBTQ employees. The head office building has genderless restrooms that are accessible to anyone regardless of their sex orgender identity. We will continue to promote LGBTQ awareness among employees and create a more comfortable workplace.

118

Asahi Kasei Group Sustainability Report 2023

Human Resources
Human Resources
Strategy

Human resources
development and active
engagement

Diversity,
Equity & Inclusion (DE&I)

Employment and Labor
Practices

PolicyThe Asahi Kasei Group believes that all of the human resources working at the Group are the source of new value creation basedon their diversity and capability to change.
As a signatory to the UN Global Compact, the Group supports and respects the labor-related principles set forth therein. We also
endorse the United Nations Guiding Principles on Business and Human Rights and the Children's Rights and Business Principles,
and we will use these frameworks to grasp and appropriately address labor issues in our business.
The United Nations Global Compact stipulates the following labor principles.
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
Businesses should uphold the elimination of all forms of forced and compulsory labor
Businesses should uphold the effective abolition of child labor
Businesses should uphold the elimination of discrimination in respect of employment and occupation
Furthermore, the Asahi Kasei Group Code of Conduct clearly states that the Group, as well as its suppliers, does not allow
inhumane practices such as child and forced labor, prohibits discrimination for any reason including employment status, respects
human rights and diversity, and carries out its business with sincerity and a sense of responsibility.
Based on the above approach, we will not only comply with domestic and international labor laws and regulations on the following
labor issues, but also strive to create a work environment where employees can reach their maximum abilities while working withsafety and peace of mind.
Prevention of child and forced labor
Reduction of excessive working hours
Formulation of working conditions based on consultation between labor and management
Asahi Kasei Corporation offers new graduates a starting salary of at least 115% above the national weighted average of regional
minimum wages in Japan.
We maintain a set standard of living for our employees by complying with each region’s decided minimum wage and paying a fairliving wage.
We also adhere to the minimum wage regulations set by local ordinances and provide equal remuneration for the same positions,
without considering gender or other differences, based on the fundamental principle of equal pay for equal work.
Guarantee of freedom of association and collective bargaining rights
We guarantee the freedom of association and collective bargaining rights for the employees we hire.
119Asahi Kasei Group Sustainability Report 2023

The Asahi Kasei Group's working conditions are formulated and implemented based on consultation and agreement between laborand management.

Management Framework
General Affairs and Human Resources of Asahi Kasei Corporation oversee the Asahi Kasei Group’s initiatives related to personnel
and labor management. Each Group company has its own HR policy and is actively engaged in human resource development.
Regular audits are conducted to ensure compliance with laws and regulations, as well as to prevent any improprieties. The resultsof these audits are reported to the Board of Directors as necessary.

Compliance with labor standards
Consultation between labor and management regarding labor standards
We strive to ensure legal compliance through such means as sharing information on topic and amendments to labor-related lawswith Group companies in order to ensure Group-wide legal compliance.
In fiscal 2017, our Group also established an expert committee for the labor union and company to examine work style reform, andmeasures such as a telecommuting system have been implemented.
Moreover, we have promoted the use of annual leave days to reduce working hours. In addition to this, we monitor workplaces thathave comparatively long working hours with the aim of preventing excessive working hours at the level of each organization.
In fiscal 2022, there was three violations of the Labor Standards Law. The amount of overtime and holiday work exceeded themonthly limit (80 hours). After the violation occurred, we promptly held a hearing with the senior manager of the affectedorganization to determine the cause and implement preventive measures. We also adjusted workloads and enhanced the workplace
support structure.
In fiscal 2022, we started offering e-learning courses on attendance management to all personnel responsible for work hours andattendance in order to enhance labor-management awareness on a company-wide level.

Communication between management and labor
The Group supports employees' freedom of association and right to collective bargaining and strives to maintain a constructive
partnership between management and labor.
Discussions on the overall management of the Asahi Kasei Group are held on a regular basis between the management of Asahi
Kasei Corp. and the labor union, and separate discussions are periodically held at each business unit and operating site. We also
hold regular management roundtables with the Asahi Kasei Group Federation of Labor Unions, which is an alliance of our individuallabor unions, to provide opportunities for discussion and to facilitate communication between workers and management.
We have concluded a union shop agreement with the Asahi Kasei Labor Union (an agreement under which all employees, except
managers and supervisors, are members of the union), and the union has 9,713 members (as of June 1, 2023).

Creating Regional Employment
In the regions where our Group‘s businesses operate, we will contribute to local communities through employment and procurement
activities in those communities.
120

Asahi Kasei Group Sustainability Report 2023

Human Rights
PolicyRespect for everyone’s human rights is one of the most important parts of the Asahi Kasei Group’s business activities. The Asahi
Kasei Group Human Rights Policy, established in March 2022 with the approval of the Board of Directors, conforms to theInternational Bill of Human Rights and the International Labour Organization’s (ILO) Declaration on Fundamental Principles andRights. In addition, we endorse the 10 Principles of the UN Global Compact, the UN Guiding Principles on Business and Human
Rights, as well as the Children's Rights and Business Principles. Based on these frameworks, we will grasp and appropriately
address human rights issues in our business.

Asahi Kasei Group Human Rights Policy

Respect for human rights is the basis of all activities of the Asahi Kasei Group. We pursue our Group Mission to “contributeto life and living for people around the world” in accordance with the basic approach and efforts expressed in this humanrights policy.
Even as times change, the Asahi Kasei Group’s commitment to the people of the world never changes. We believe nothingis more important than for diverse people to enjoy vibrant lives while respecting each other's individuality and humanrights.
We require all executives and employees of the Asahi Kasei Group, including those under non-regular employment, torespect human rights in accordance with this Policy. We expect all of our business partners, including our suppliers, tounderstand and support this Policy.

Our Approach

We are committed to respecting the human rights of all stakeholders throughout our activities and business value chain.
We respect human rights as stipulated in the International Bill of Human Rights and the International Labor Organization’s
Declaration on Fundamental Principles and Rights at Work. In addition, we support the United Nations Guiding Principles
on Business and Human Rights. Our activities are based on these principles.
We comply with applicable laws and regulations in all countries and regions where our activities are conducted. Where
national/regional laws fall short of or conflict with international human rights principles, we will seek ways to honor the
principles of internationally recognized human rights to the extent possible while complying with the national/regional laws.
If we identify that we have caused or contributed to negative impacts on human rights in the business value chain, we
endeavor to remediate them through appropriate processes with business partners.

121

Asahi Kasei Group Sustainability Report 2023

Addressing Human Rights Issues

We comply with all applicable laws and regulations related to working hours and wages.
We comply with all applicable laws and regulations related to safety and hygiene. We also prevent accidents anddisasters, create a safe and hygienic work environment, and strive to maintain the physical and mental health of ouremployees.
We strictly prohibit forced labor, slave labor, human trafficking, and child labor.
We strictly prohibit any discrimination based on race, ethnicity, birth, nationality, religion, gender, sexual orientation,
disability, or thought, and any inhumane treatment including harassment.
We comply with all applicable laws and regulations related to the protection of personal information and manage thisinformation appropriately.
We protect the safety and health of our stakeholders by ensuring the quality and safety of our products and services.
We understand and respect the local culture and the human rights of local communities including their health and safety.

Promoting Respect for Human Rights
Education
We will continue to provide necessary education and awareness-raising opportunities for all executives and employees,
including those under non-regular employment, to put this policy into practice.
Implementation of human rights due diligence
We will implement human rights due diligence based on the United Nations Guiding Principles on Business and Human
Rights. Specifically, we will assess human rights risks in our activities and continuously work to prevent and mitigate theidentified negative impacts. If we identify that we have caused or contributed to negative impacts on human rights, we
endeavor to remediate them through appropriate processes.
Commitment to engage with affected stakeholders
We believe that the perspective of affected stakeholders is critical for us to recognize actual or potential human rights
impacts on stakeholders by our activities, and to develop appropriate responses to address such impacts. We will engage
with relevant stakeholders in a timely manner to understand and consider measures to address human rights issues.
Grievances Mechanisms
We will continuously work towards the optimization of our grievance mechanisms through a system to which our employees
and the employees of our business partners can report and consult on human rights concerns. We ensure confidentiality
regarding reported cases and the personal information of the persons submitting reports and have measures in place toprotect those persons from unfair treatment caused by reporting issues.
Disclosure
We will monitor and regularly disclose the progress of our efforts to respect human rights through our website, the Asahi
Kasei Report, and other relevant communication channels.
Approved by the Board of Directors of Asahi Kasei Corporation on March 8th, 2022
Asahi Kasei Group Human Rights Policy （360.1KB）
Participation in human rights initiatives (signatory to UN Global Compact)

122

Asahi Kasei Group Sustainability Report 2023

Management Framework

We established the Human Rights Committee as a forum for discussion and guidance on the respect of human rights, and also as
an organization to promote the implementation of the Asahi Kasei Group Human Rights Policy. The committee held its first meetingin November 2022. Amidst the growing public interest in human rights related topics year by year, and with the increasing numberof legislations being enacted by governments around the globe, the committee will continue to share information on human rights
initiatives.
The Human Rights Committee is positioned as a subcommittee of the Sustainability Committee.
The committee chaired by the president is composed of members from diverse fields, including leaders responsible for business
units, administrative functions, and technology functions. Matters discussed by the Human Rights Committee are reported to theBoard of Directors.

Human Rights Management Framework (as of August 1, 2023)

Human Rights Due Diligence
To fulfill our responsibility to respect human rights, we will establish a human rights due diligence system and will create amechanism for implementing this system on an ongoing basis. The term “human rights due diligence” refers to the ongoing process
implemented to proactively identify, avoid, and mitigate any negative human rights impact that the Group may have on society.
In fiscal 2022, we conducted a survey and review on how we can systematically incorporate the Asahi Kasei Group Human Rights
Policy into our groupwide business activities in terms of compliance and implementation. We confirmed our future plans anddirections at the Human Rights Committee meeting.
Besides the internal review, we actively participate in the subcommittee activities on human rights organized by the Global Compact
Network Japan. We also contributed to the development of "Manual for Human Rights Due Diligence Practices—Responsible
Corporate Behavior in the Area of Human Rights" (released in May 2023) led by the working group within the Supply Chain
Subcommittee.

123Asahi Kasei Group Sustainability Report 2023

Procedures for Human Rights Due Diligence

Identification of key human rights themes in the value chain including our company
The Asahi Kasei Group operates a diverse range of businesses. Our first step is to gain a new perspective on the various value
chains and supply chains of each business in consideration of human rights.
The following chart shows how each of the human rights compliance items defined in the Asahi Kasei Group Human Rights Policy
applies at what point in the value chain. We shared this information internally.

124

Consideration of human rights in the supply chain

Asahi Kasei Group Sustainability Report 2023

Consideration of human rights in procurement

The Asahi Kasei Group is working to promote awareness about CSR, including respect for human rights, with coordination among
Corporate Procurement & Logistics, the Sustainability Strategy Planning Department, and group companies. Our supplier guidelines
include provisions on respecting human rights as a fundamental principle for all our suppliers to comply with. To ensure all of our
suppliers are fully informed about these guidelines, we conduct an annual CSR procurement questionnaire to assess eachsupplier’s approaches on human rights and labor practices.
CSR Procurement

Consideration of human rights in logistics
In response to a severe shortage of truck drivers in Japan, we have endorsed the White Logistics Movement, a voluntary action
declaration promoted by the Ministry of Land, Infrastructure, Transport and Tourism, the Ministry of Economy, Trade and Industry,
and the Ministry of Agriculture, Forestry, and Fisheries. We work toward enhancing the productivity and efficiency of the trucking
industry while improving the working conditions for drivers.
Starting in fiscal 2024, a cap on overtime hours (960 hours per year, excluding holidays) will be implemented for truck drivers. Thisis expected to create challenges in securing transportation, particularly for long-distance routes. To cope with this so-called “2024problem,” we are working with logistics companies to identify issues and develop specific solutions.

Human rights reporting and consultation hotline
The Asahi Kasei Group’s compliance hotline handles reports and consultation on all aspects of compliance, including human rights.
The hotline is available to suppliers and their employees in addition to Asahi Kasei Group employees.
We will establish a complaint handling procedure for all the rights holders in the future.
Compliance > Whistleblower system (Compliance hotline)

Human rights education and awareness raising activities
The Asahi Kasei Group clearly stipulates a policy of zero tolerance for any kind of discrimination or harassment in the section of the
Asahi Kasei Group Code of Conduct entitled "Respect for Human Rights and Diversity." To help our upper management gain adeeper understanding of the respect for human rights, we invited outside experts and held a human rights seminar in October 2022.
We also offered an e-learning course on human rights in June 2022 to help employees better understand the business and humanrights. Approximately 87% of the eligible employees (approx. 29,000 people) completed the course. We will continue to promoteawareness of human rights and strengthen our efforts to deepen employees’ understanding of the human rights issues for which
corporations are socially responsible.

Harassment Prevention and Training
The Asahi Kasei Group Code of Conduct clearly stipulates a policy of zero tolerance for any kind of discrimination or harassment. To
this end, we prohibit sexual harassment, harassment related to pregnancy, childbirth, and use of parental leave, family care leave,or other leave, and power harassment and other forms of harassment in our employment regulations. We also seek to instill within
our domestic group companies our company policy of zero tolerance for any kind of discrimination or harassment through training
on corporate ethics for employees at each level, including new hires, newly promoted assistant managers, and newly promoted
managers. In addition, we implement corporate ethics training by business unit and geographical area. From fiscal 2020 andbeyond, we will enhance the content of remote training and video lectures as part of our efforts to prevent harassment.
125

Asahi Kasei Group Sustainability Report 2023

Health & Productivity Management and Occupational Health& Safety
Occupational Health & Safety

Health & Productivity Management

PolicyWhile business is operated globally, the structure of society is changing dramatically. The population continues to age, and the wayof hiring people as well as working styles are changing in various ways. In this time of change, it's necessary to ensure a
comfortable and safe workplace environment for all employees and enable them to make the most of their capabilities andpossibilities.
The Asahi Kasei Group regards all employees as precious assets. In terms of maintaining health and safety at our workplaces andwork sites, our ESH & QA Principles state: "In all operations, we give the utmost consideration to health, operational safety,
workplace safety and hygiene, quality assurance, and environmental protection throughout the product life cycle from R&D todisposal, as preeminent management tasks." Based on this, we work in cooperation with employees (and, where applicable, theHealth & Safety Committee and Labor/Management Committee) to create a comfortable workplace environment throughout thecompany.

Preventive action for occupational accidents
In fiscal 2020, the Asahi Kasei Group established a Life Saving Actions (LSA) program to eradicate serious occupational accidents,
and we began implementing it throughout the Group. We have established the following four behaviors as prohibited behaviors that
could result in loss of life if not observed, and are promoting thorough adherence to these behaviors in all aspects of our businessactivities.

The four behaviors prohibited by LSA

In addition, our ongoing efforts to prevent workplace accidents is integrated into our comprehensive OHSMS1 program thatcombines conventional safety and hygiene initiatives2 with risk assessments and a prevention-oriented plan-do-check-act (PDCA)
system.
1 Tidiness/orderliness/cleanliness (3S), reporting of near-accidents and potential hazards, hazard prediction analysis, safety patrols, and case studies
2 Occupational Health and Safety Management System: A standardized management system used to confirm that continuous improvement is being

applied to measures to minimize the risks of workplace injuries and to prevent the emergence of future risks

126

Approach to prevent occupational accidents

Asahi Kasei Group Sustainability Report 2023

1. Identification of potential hazards
Effective prevention of workplace accidents requires theidentification of all potential hazards in a workplace. In addition toconventional safety and hygiene initiatives, it is important to thinkof potential issues and consider safety from the perspective of the
problems which conceivably arise in a wide variety of situations—as a result of both potentially unsafe physical conditions(hazardous working environment due to equipment, materials,
noise, etc.) and potentially unsafe work actions of personnel.

2. Risk assessment
Priority for mitigating the potential workplace hazards identified is
assigned based on a scoring system that combines the severity of
the impact of problems which could occur and the frequency withwhich such problems would be likely to occur. We implement
mitigation measures starting with significant risks with the highest
risk scores.

Overview for prevention of workplace accidents

3. Mitigation of the highest risks
Measures to achieve inherent safety by eliminating unsafe
conditions (by eliminating dangerous procedures, automation,
eliminating sources of problems, changeover to safe materials,etc.) and the application of safeguards are extremely effective inthe effort to avoid risks.
We focus on achieving inherent safety and applying safeguards(isolation and stoppage) to avoid risks associated with the use ofmachinery and equipment to prevent the “caught in/between
machinery” category of accident, which can easily result inparticularly severe injury.

Inherent safety and safeguards
Measures to achieve inherent safety and the application of safeguards to avoid risks are generally considered to provide thegreatest level of safety, as shown in the following table. We incorporate such measures in the construction of new or replacement
facilities, upon safety reviews of existing facilities, and to prevent the recurrence of accidents.

127

Asahi Kasei Group Sustainability Report 2023

Systems for safe operation
Our group is striving to ensure safety in our activities to comply with safe operating standards*. Specifically, we are devising andimplementing measures such as checking the status of compliance with safe operating standards in our daily operations.
Operations for which the elimination of risk through equipment modification is impractical are classified as operations requiring
special control and strictly managed, such as by ensuring worker competence and prior plan-based approval.
* Systems for safe operation： Rather than individual rules for specific procedures, safe operating standards are a system of safety principles which
define common safety practices that apply to categories of operation based on similarity of risk. For example, to prevent entanglement inmachinery, our standard stipulates not to touch any exposed moving parts.

Sharing and utilizing information of occupational accidents
We investigate causes and take measures to prevent recurrence at sites where workplace accidents occur. We share a database of
information on all workplace accidents within the Asahi Kasei Group for utilization in activities such as safety training, case study
discussions, and prevention of similar accidents.

Occupational accident statistics
In fiscal 2022, 11 lost-worktime injuries occurred among Asahi Kasei Group employees in Japan. The number of incidents was halfthat of the previous year. We will continue to engage in safety initiatives through our LSA program to prevent the occurrence ofserious accidents in the future.

Incidence of lost-workday injury by event category (FY2022 inJapan)
Incidence of lost-workday injury by event category (FY2013–2022
in Japan)128

Asahi Kasei Group Sustainability Report 2023

Frequency Rate1

Severity Rate2
1 Number of accidental deaths and injuries resulting in the loss of one or more workdays, per million man-hours worked.

Our goal of 0.1 or less is extremely ambitious. At a plant with 100 workers, it would mean only one worker in 50 years suffered from a workplace
injury which resulted in a day off.
2 Lost workdays, severity-weighted, per thousand man-hours worked.

Maintaining and improving comfortable workplaces
Workplaces where potential health hazards are present are subject to regular monitoring under the Working Environment
Measurement Law. Additionally, we will manage risks for chemicals to identify and reduce risks resulting from chemical substances.
With an amendment to Japan's Industrial Safety and Health Act in May 2022, there have been major changes, including therequirement for businesses to autonomously manage chemical substances. The Asahi Kasei Group is implementing appropriate
measures in response.
Noise and heat exposure data are recorded and maintained for all relevant personnel to enable each individual's exposure to be
managed and minimized. We are advancing plant modification and reviewing work procedures to create a more comfortable work
environment.

129

Asahi Kasei Group Sustainability Report 2023

Safety initiatives at Asahi Kasei Kawasaki Works

The Kawasaki Works comprises three production areas: Shiohama, Ukishima, and Chiba, with manufacturing sections that
operate 24 hours a day, as well as R&D, production engineering, and support divisions. The workforce consists ofapproximately 1,700 individuals, including employees, dispatched workers, and subcontractors assigned on site. The
members from diverse backgrounds promote our safety initiatives.

1. Introduction (background)
The Kawasaki Works has a history of active involvement in numerous safety initiatives. In light of the elevated count ofwork-related accidents involving both employees and contractors during fiscal 2018, they initiated a program aimed at
fostering a culture of complying with rules in 2019.
In fiscal 2022, the initiative was renamed “No Injury and No Accident” to raise awareness about safety in workplaces.

Number of occupational accidents at Kawasaki Works(employees + subcontractors)

2. Specific initiatives
To uphold our commitments of No Injury and No Accident, we conduct the following activities in addition to our existing
safety practices.
130

Asahi Kasei Group Sustainability Report 2023

1)“Mr. STOP” campaign (started in fiscal 2021)
2)Raising the quality of relationships between managers and workers: Dialogue between supervisors andsubordinates
Building an organization that respects one another and works closely.
In order to share the concept in the below diagram and have a better relationship (psychological stability) between
workers and their supervisors, it is important to discuss specific ideas and methods thoroughly. Dialogue isencouraged for this purpose.

3) Workplace-focused activities
Sites with a high number of occupational accidents are identified as 'high priority sites.' Corporate ESH conducts
surveys at these sites and engages in dialogue to enhance safety awareness among employees.
4) “No Injury”—A promise to keep oneself free from injury
We encourage each individual to think consciously about safety, fostering safety awareness to prevent injury at bothindividual and group levels. This is achieved through open dialogue and information sharing.
5) “No Accident”—A promise to protect fellow workers
Inadequate safety measures on the ordering side (Asahi Kasei) have led to injuries involving contractors during
delivery of work. This effort aims to eliminate such occupational accidents through dialogue and thorough safetymeasures.

3. What is “Mr. STOP”?
Aim and Purpose
Targeting young employees with less than five years of experience (42% of all occupational accidents) and oftenoverlooked contractors (38% of all occupational accidents), the program aims to achieve zero occupational accidents.
Activity Details
Our top priority is to recognize and appreciate good work by conducting site visits to observe work from different angles,
including Life Saving Actions (LSA), a company-wide initiative. Whenever we notice unsafe work, we ask them to stop thework and have them consider the risks involved. Our approach emphasizes mutual understanding and learning rather thanmerely pointing out mistakes.
STOP Activities（Safety Training Observation Program）
This is a customized version of DuPont's safety management
program, adapted to align with Japanese-style safety initiatives.
The fundamental principle is to eliminate hazards and prevent
accidents through observation and identification of unsafe
conditions and behavior, and to take action accordingly.

131Asahi Kasei Group Sustainability Report 2023

4. “Good Point Award”
We walk through the site and promptly nominate exemplary practices and workmanship, even those considered ordinary, as
candidates for the Good Point Award. If there are deserving candidates (self-recommendations are also accepted), theproduction manager presents the awards to them in front of everyone on site.

Fiscal year

Good Point
entries(includingawards)Awardsreceived

FY2021

33

347

FY202236422

FY2023 (until
June)

9

161

Results

78

930

The award certificate contains specific details.

A scene from the award ceremony for subcontractors

132

Asahi Kasei Group Sustainability Report 2023

Award given to shift workers in production

5. Outcome of the “Mr. STOP” campaign
One of our contractors said to us at the ceremony, “being praised in such a specific way makes me feel compelled to do
things more safely than ever before.” This positive cycle of improvement appears to be the result of the Mr. STOP initiatives
because they received the recognition they deserve.

6. Conclusion
We have not reached our goal of zero occupational accidents, but considering the actual occupational accidents occurred, it
looks like we have made a steady improvement in our safety standards. We firmly believe that we can foster truly safe
workplaces if we continue to improve safety awareness of each and every employee through various safety initiatives,
focusing on “No Injury and No Accident,” our promises of not leaving anyone behind. Also, we believe that such efforts willlead to zero occupational accidents and continuation of the practice.
We will continue to build a culture of praises like those seen in the Mr. STOP initiative, and strive to create production
facilities where everyone can work in good health and comfort, with a sense of safety and security.

Dealing with the asbestos issue
We have dealt with the asbestos issue as explained below.
Specific Measures
Measures for buildings owned by
our Group, including its plants

Conducted asbestos surveys and systematically removed, contained, or enclosed it inaccordance with the Ordinance on Prevention of Health Impairment Due to Asbestos.

Replacement of asbestos in plant Asbestos in joint sheets is replaced with non-asbestos materials sequentially when
joint sheets
joints are opened for inspection or maintenance.
Responding to health issues of
our Group retirees

The Group does not engage in the production or handling of asbestos as specified in
the Ordinance on Prevention of Health Impairment Due to Asbestos. However, if aretiree who had handled asbestos on a temporary basis during his or her tenure with
the Group (for maintenance purposes for example) requests it, he or she can receive a
medical examination and a follow-up will be conducted.

133

Asahi Kasei Group Sustainability Report 2023

Health & Productivity Management and Occupational Health& Safety
Occupational Health & Safety

Health & Productivity Management

Health & Productivity Management Policy
The situation surrounding employees has changed considerably over recent years, with the retirement age being extended to 65 andthe stressful situations caused by changes in work conditions triggered by the spread of COVID-19. At the same time, for the Asahi
Kasei Group to provide value to society through its business, we need employees to be more productive and creative than ever.
In response, we have been developing health & productivity management*, which positions health-related initiatives as a companywide management issue, and expand on the health and productivity management of past ESH & QA activities.
In October 2020, the Asahi Kasei Group announced the Statement on Management for Health. Human resources are the essential
element for the improvement of corporate value. Providing an environment that supports the physical and mental well-being of
employees is becoming increasingly crucial for corporations. Therefore, we will work to further promote health and productivity
management based on the Group Health & Productivity Management Vision described in the Statement.
We will further enhance our programs for the prevention of mental health issues, which is a priority in our PDCA cycle, as defined in
the health and productivity management goals of our medium-term plan. In 2022, we adopted the 'percentage of employees absent
from work due to mental health issues' as an indicator for the director's remuneration policy to measure the progress. Furthermore,
we will strengthen health and productivity management and promotion measures, with an emphasis on women from a DE&I
perspective, in line with physical and mental health promotion through the positive outcomes and improvements achieved in ourhealth and productivity management. The next step is the promotion of well-being management, which aims to create a state ofphysical, mental, and social well-being for our employees.
* In Japanese “Kenkokeiei” is a registered trademark of Nonprofit Organization Kenkokeiei.

Statement on Management for Health

The Asahi Kasei Group pursues sustainable growth of corporate value while contributing to the achievement of asustainable society by leveraging its strengths of diversity and the capability to change. We believe that human resources
are the key to achieving this goal.
In the future, it will become ever more important for the company to create an environment where employees can both
physically and mentally healthy and where everyone can play an active role. We hereby declare that we will work topromote health and productivity management, which further refines the initiatives for promoting and maintaining health wehave developed to date, under our Group Health and Productivity Management Vision.
October 2020, Asahi Kasei Corp.

134

Asahi Kasei Group Sustainability Report 2023

The Asahi Kasei Group Health & Productivity Management Vision

The Asahi Kasei Group will contribute to the achievement of a sustainable society by encouraging the active participationand growth of each individual and the improvement and development of Group productivity. To this end, the company will
ensure that its employees and their families are both physically and mentally healthy, and strive to enhance their job andlife satisfaction.

Promotion framework for health & productivity management
In January 2020, we established the Corporate Health and Productivity Management organization. In the following April, we
assigned an Executive Officer with responsibility for Health and Productivity Management. In April 2021, our nine HealthManagement Centers, which have occupational health staff at each of our major domestic sites, became part of Corporate Healthand Productivity Management. This enabled us to standardize and optimize overall health-related operations, improve coordination
among different sites, and promptly address group-wide challenges, with unified promotion of health & productivity management.
While this was adopted at the main domestic sites in April 2021, its application is being extended to smaller offices and affiliatedcompanies in Japan from April 2022.

Promotion framework for health & productivity management

135

Purpose of health & productivity management

Asahi Kasei Group Sustainability Report 2023

Our cornerstone is the maintenance and promotion of physical and mental health of our employees and their families. By creatingsynergy through the success and growth of each individual, greater job satisfaction and fulfillment, and a vibrant and strongorganizational culture, we aim to improve the productivity and growth of the Asahi Kasei Group. We will also strive to create avirtuous cycle between two aspects of sustainability: contribution to sustainable society and sustainable growth of corporate value.

Overview of health & productivity management

Health & Productivity Management Strategy Map
In promoting health & productivity management, we pursue thorough understanding the expected outcomes of our investments andmeasures along with how our initiatives translate into concrete actions to address the issues we aim to resolve. We have charted
these relationships on a diagram.
Strategy Map （436.8KB）

Health & Productivity Management Objectives (Priority Measures)
To achieve our health & productivity management objectives, we believe it is important both to create opportunities for employees
to be active and grow, and to revitalize individuals and organizations.
To create opportunities for employees to be active and grow, we will reduce the number of days employees take off work. In
addition to this, we will work on revitalizing individuals and organizations.
From the perspective of improving productivity, we will also strive to help employees get more and better-quality sleep, a lack ofwhich is said to be a major contributing factor behind “presenteeism1.”
For this reason, the Group has set its primary health and productivity management goals as follows: (1) creation of opportunities for
employees to play an active role and grow, etc. (improving the absence rate through countermeasures for mental health issues,
people with serious lifestyle-related diseases, people with metabolic syndrome, cancer, and smoking), (2) revitalizing individuals
and organizations (improving work engagement2 ), and (3) improving the quality and quantity of sleep.
1 A state in which employees go to work but are unable to perform due to physical and mental health issues. In a study conducted by the Ministry of

Economy, Trade and Industry (METI) that used the WHO-HPQ to measure employee productivity, it was reported that presenteeism accounts for 6080% of total health-related costs.
2 A positive and fulfilling psychological mindset toward one’s work that consists of three components: enthusiasm, immersion, and vitality.
136

Asahi Kasei Group Sustainability Report 2023

(1) Creating opportunities for employees to play an active role and grow, etc. (improving theabsence rate)
Item

FY2019 FY2020 FY2021 FY2022 FY2023 FY2024
Results Results Results Results Target Target3

Percentage of employees absent from work due tomental health Issues1

0.91

0.98

1.00

1.07

0.80

0.64

Percentage of employees seriously ill with lifestylerelated diseases2

11.0

11.0

10.7

10.7

8.9

7.7

Percentage of employees suffering from metabolic
syndrome

11.1

11.4

11.1

10.7

8.9

7.8

Number of days off per cancer case

79.2

68.1

87.5

88.6

67.3

67.3

Smoking rate

25.8

24.7

23.5

22.5

18.5

15.5

1 Percentage of employees who are absent from work for 30 or more consecutive days during the fiscal year
2 Selected based on in-house criteria
3 Medium-term target as of 2020

(2) Revitalizing individuals and organizations (improving work engagement)
As a primary preventive measure to help employees recognize their stress levels and reduce the risk of mental health issues, theAsahi Kasei Group conducts annual stress checks in July using the mental health support system ‘e-Diagnosis: New OccupationalStress Quick Assessment System (Fujitsu Limited).’In fiscal 2020, we also adopted the KSA (vitality and growth assessment) survey, which enables more detailed analysis andvisualization of work engagement (enthusiasm, immersion, and vitality) in workplaces.
We are working to raise employee work engagement at each workplace through comprehensive analysis of e-Diagnosis and KSA
results and by facilitating communication among employees.

Overview of KSA (Vitality and Growth Assessment)(3) Improving the quality and quantity of sleep
Presenteeism generally accounts for 60-80% of total health-related costs, and this is said to be several times higher than medical
costs. Next to mental health issues, the quality and quantity of sleep is considered to be a major cause of presenteeism, so we will
promote countermeasures to address this problem.
Specifically, we will (1) establish a method for evaluating sleep, (2) investigate ways to handle employees who are not getting
enough sleep, and (3) promote education and training to improve sleep literacy.
In addition, starting in fiscal 2022, reducing the percentage of employees who do not get enough rest from sleep has been newly
established as a KPI for sleep as part of our Health and Productivity Management Objectives.

137

Asahi Kasei Group Sustainability Report 2023

Item

FY2019Results

FY2020Results

FY2021Results

FY2022
Results

FY2023
TargetFY2024
Target*Sleep KPI (%)

32.4

28.5

27.2

28.0

24.2

22.7

* Medium-term target as of 2020

Specific initiatives
Mental health and care

The Asahi Kasei Group is working to reduce the rate of employees missing work due to mental health issues by enhancing its four
complimentary approaches to care in accordance with its mental health care guidelines.

(1) Self-care

To promote understanding of stress and how to cope with mental health-related issues, we have been implementing and improving
the training on mental health. In May 2023, we offered mental health self-care education to all employees to help them recognize
and manage their own stress and mental health issues in an early phase.

(2) Line care

As part of the care along the reporting line, each district is working to improve the work environment through the Vitality Criteria
checklist of the e-Diagnosis and training sessions. The Suzuka district is working to create a comfortable workplace, and thanks to
the 15-years of ongoing efforts, the percentage of employees absent from work due to mental health issues has been decreasing.
Since fiscal 2020, we have been offering workshops in the Mizushima area in collaboration with the HR department, occupational
health staff, and the labor unions, using e-Diagnosis and KSA in an integrated manner. In fiscal 2022, other districts across Japanbegan following the practices of the Mizushima area.

(3) Care provided by occupational health staff and others

We conduct stress surveys on individuals using e-Diagnosis and have our occupational health staff follow up with them.
In some of the areas, we have conducted a pilot program called “Follow-up Care for Relocated Employees, etc.” targeting relocatedemployees and new hires, and we monitored how they were adjusting to new environments and workplace. This program aims toprevent the progression of unfavorable outcomes for those who exhibit any signs of irregularities. Given the effectiveness of thesurvey and measures taken, we prepared manuals and tools necessary to roll out this program at our major production sites inJapan. We will work to prevent mental health issues associated with relocations and other events by implementing this program
across the company.

(4) Care provided by specialized organizations

Rework programs are also available for those who took a leave of absence due to mental health issues, as part of the rework trial
designed to help them resume their roles successfully. In addition, we provide care by specialists, including training sessions byexternal lecturers and referral of counseling services.

(5) Analysis of direct factors and circumstances resulting in leave of absence for mental health

To reduce the number of employees on sick leave due to mental health issues, we have our occupational health staff analyze thecauses of these absences on a district-by-district basis. They determine contributing factors by considering both direct causes andbackground information obtained from interviews. Results from each site are also aggregated, with company-wide data analyzed
according to various aspects such as job category and position, which are then shared throughout the company, and for whichcountermeasures are created.
138

Asahi Kasei Group Sustainability Report 2023

Initiatives for employees with severe lifestyle-related diseases and metabolic syndrome

In order to maintain and improve the health of our employees, the Asahi Kasei Group is working to prevent and address lifestylerelated diseases.

(1) Specific health guidance and Get Fit Challenge

In addition to the health promotion program we operate under specific health guidance, we launched the “Git Fit Challenge” in fiscal
2021, aiming to prevent the onset or progression of lifestyle-related diseases and their complications. This program aims to prevent
lifestyle-related diseases by extending the target beyond those who must receive specific health guidance and by including
overlooked individuals. The specific health guidance has been found to be effective in addressing lifestyle-related diseases andweight loss to a certain degree. To increase participation in medical checkups, in fiscal 2022, we have implemented a companywide policy encouraging employees subject to specific health guidance to receive counseling, with support from their department
and section, unless they have valid reasons not to. Under the new policy, employees who are recommended to receive specifichealth guidance must attend follow-up consultations unless they have valid reasons. They are also allowed to schedule these
appointments during work hours.

(2) Creation of exercise occasions

Each production site organizes walking events, as well as annual physical fitness tests to monitor the changes over time. Also,
exercise videos that are easy for anyone to do anywhere are available on our intranet to encourage employees to start exercising.
Actions to promote exercise habits at each site
To prevent the development of serious lifestyle-related diseases and metabolic syndrome, we host walking events andphysical fitness tests at each production site as part of our efforts to promote regular exercise.
With the introduction of the “&well*” walking app, we encourage participants to change their behavior, raise healthawareness, and foster communication, even in remote work settings. In addition to the app, some districts use thetraditional step-counting tools together with the “&well” app to track the number of steps per division and organize theirown walking events. Similarly, another district organized a “Mystery and Health Walk” event, including a quiz rally whereparticipants walked inside the manufacturing site's premises to discover quizzes, all aimed at increasing steps with the useof the “&well” app.

* Planned and operated by Mitsui Fudosan Co., Ltd.

Health promotion and maintenance for women
We didn't limit our efforts to women's health but also focused on enhancing women's
performance. We addressed health issues related to hormonal changes and life stage
concerns, crucial for women's success, career advancement, and personnel retention.
In fiscal 2022, we hosted seminars on lifestyle-related disease awareness for womenin the Ohito area. Many of our employees attended this seminar titled “Managing
Women's Health after Menopause.” In the Hibiya area, a new type of yoga called“Comedy Yoga” was held as a project sponsored by the Japan Sports Agency. Thisyoga session aims to improve the engagement of working women in sports, alleviate
daily stress, and enhance women's social surroundings.

A scene from Yoga lesson for
employees(3) Occupational health staff visualize the physical and mental state of employees at each workplace as agroup and report to the department heads

In the Nobeoka and Fuji regions, which are major manufacturing sites of the Asahi Kasei Group, the results of health checkups,
lifestyle data, and sickness and injury leave data are analyzed by workplace, and the occupational health staff report the results ofthe group analysis to the head of each workplace. This allows those overseeing each workplace to gain an objective understandingof the physical and mental state of their employees as a group, identify issues, and take measures to improve the situation.

139

Asahi Kasei Group Sustainability Report 2023

Cancer awareness initiatives(1) Education to improve cancer literacy

We provided a company-wide e-learning program to all employees, focusing on cancer prevention and promotion of a better worklife balance. The program aimed to educate employees about cancer, promote healthier lifestyles that can reduce the risks ofcancer, and encourage regular cancer screenings for early detection and treatment. Also, some offices had the course video
available on the intranet for employees to view at any time after the lecture.

(2) Recommendation for cancer screening

We encourage cancer screening during regular health checkups or physical exams, with some of the expenses covered. We also
make sure our employees are familiar with our support programs for those who undergo cancer treatment and return to work after
their leave.

Efforts to Reduce the Smoking RateIn April 2023, the Asahi Kasei Group announced its non-smoking policy based on the principle that we will support smoking
cessation and prevent our employees from being exposed to undesired passive smoke. Beginning in April 2024, smoking will be
prohibited during work hours. From April 2025, we will implement a non-smoking policy on the premises and during banquets*.
Besides the Smoking Cessation Challenge organized and implemented by the Asahi Kasei Health Insurance Society, we will provide
a variety of quit smoking programs and seminars to help smokers refrain from smoking.
* No smoking during banquet: Those who left the dining area to smoke are not permitted to re-enter.

Launch of the sleep program and its trial
In 2021, we piloted a sleep improvement program with the goal of enhancing sleep quality, improving work performance and daily
routines. Since 80% of the participants showed improvement, we decided to continue the program into 2022. Continuing from 2021,
the Tokyo Head Office and sales offices in the Tokyo and Osaka areas surveyed approximately 6,000 individuals about their sleep.
Around 70 people who reported severe insomnia were selected to participate in the sleep improvement program followinginterviews. In the Mizushima area, they held a trial program aimed at improving the sleep quality of shift workers. The program had
18 participants, including 13 full-time day workers and 5 shift workers. It achieved over 80% satisfaction and a 68% improvement indaytime disturbances, demonstrating its effectiveness to a certain degree, even for the shift workers. For two consecutive years, we
hosted an online-based sleep seminar to educate them about sleep. We later made the content available on-demand, which
resulted in our employees’ improved sleep literacy. In fiscal 2023, we prepared a manual on our sleep improvement initiatives,
covering a series of processes from a sleep survey, interviews with occupational health staff, and implementation of a sleep
improvement program. This framework will enable us to implement sleep improvement programs in each district and establish
specific procedures for sleep assessment, follow-up measures, and health guidance. They will be deployed company-wide,
including full-time day workers and shift workers.

140

Education on Health & Productivity Management

Asahi Kasei Group Sustainability Report 2023

To support employees in acquiring knowledge and skills for health and productivity management, we provides a number of training
programs based on the job roles for the various employee ranks.
Training

Method ofTraining

PurposeFY2022
Participants

New hiretraining

OnlineTraining

Gain an understanding of the basic health concepts as a responsible
member of society, handling precautions for hazardous materials, andessential company rules

203

Training for
new managers

e-learning

Gain an understanding of the overall health care concept and action
framework, along with responsibilities of the company and employees

316

Training for
newly
appointed top
management

e-learning

Gain an understanding of the Asahi Kasei Group’s overall health &productivity management along with its importance361

Addressing Global Health Challenges
Health Management Support for Overseas Employees
Although infections of COVID-19 are waning, we consider health problems caused by various infectious diseases to be a global
issue. The Asahi Kasei Group is strengthening healthcare practices to protect the health of our employees working overseas, which
are increasing in number as our business expands globally.
While the healthcare situation varies slightly depending on the length of the assignment and location, we provide pre-transfer
medical checkups, vaccinations, advance Tamiflu prescriptions (anti-influenza medication) in case of a new influenza pandemic,
and pre-transfer health education, as well as annual medical checkups throughout employees’ assignments and a post-transfer
medical checkup upon their return.
During an assignment, a web interview with an industrial physician is conducted six months after the assignment. In addition to thee-Diagnosis conducted in Japan, we use a health survey form to assess symptoms, local lifestyles, mental and physical health, andvaccination status. Based on the questionnaire results and medical exams, we schedule online interviews with our occupational
physician or health advisor as required.
Moreover, for employees working overseas who are suspected of working long hours based on their total computer access time,
online interviews with industrial physicians are conducted based on the questionnaire results.
“Health Letter from Tokyo” is regularly distributed to expatriates as well, providing information such as health checkup results andlifestyle questionnaires, and health information, all compiled by region. Also, in collaboration with a medical assistance company,
we provide support for medical examinations at local medical institutions and health consultations to address health concerns andissues.

141

Activity evaluation and recognition by external organizations

Asahi Kasei Group Sustainability Report 2023

To gain an objective understanding of the Asahi Kasei Group’s health & productivity management efforts and further improve ouractivities, we had the following external organizations evaluate our initiatives.

Recognized as White 500 (large enterprise category) in the Certified Health and Productivity
Management Organization Recognition Program 2023
We were recognized as one of the “White 500” organizations under the Certified Healthand Productivity Management Organization Recognition Program (Large Corporation
Category) of 2023, jointly operated by the Ministry of Economy, Trade and Industry(METI), and Nippon Kenko Kaigi. The Certified Health and Productivity Management
Organization Recognition Program acknowledges corporations for their exceptional
health and productivity management practices, aligned with community healthagendas and health promotion activities advocated by the Nippon Kenko Kaigi.

Received the Silver Prize in the Cancer Ally Awards 2022
We received the Silver Prize in the 2022 Cancer Ally Awards, sponsored by a non-governmentalorganization dedicated to addressing cancer and issues of those who are receiving cancer treatment while
continuing their career. This project aims to create a society and workplace environment that empowers
cancer patients to maximize their potential while undergoing treatment.

Certified as a Sports Yell Company of 2023
We have been certified as a Sports Yell Company of 2023 by the Japan Sports Agency. This program aims toencourage the involvement of prime-age workers in sports and generate a societal interest in physical activities.
It will grant certification to companies that actively promote sports to improve their employees’ health. We wererecognized for our efforts in providing exercise videos, athletic facilities, and walking events held at each of oursites.

Recognized as Tokyo Sports Promotion Company 2022
We were recognized as a “Tokyo Sports Promotion Company” by the Tokyo Metropolitan Government. This
program recognizes companies that encourage their employees’ sports activities and contribute to society
in the field of sports. We were recognized for our efforts in raising employees’ health awareness throughwalking events and seminars held at each production site.

142

Asahi Kasei Group Sustainability Report 2023

Process Safety
PolicyAs part of its Group Philosophy, the Group Mission of the Asahi Kasei Group is to contribute to life and living for people around theworld.
Based on this Group Mission, the Asahi Kasei Group ESH & QA and Health & Productivity Management Policy, revised on July 11,2022, states, "the Asahi Kasei Group gives the utmost consideration to health maintenance, operational safety, occupational healthand safety, quality assurance, and environmental protection throughout the product lifecycle from R&D to disposal as preeminent
management tasks in all operations." Furthermore, as a specific matter regarding ESH, the policy states "we strive for stable andsafe operation while preventing workplace accidents and securing the safety of personnel and members of the community."

PDCA cycle for safety management

Process safety management system

Safety management for high pressure gas
At the Mizushima Works and Kawasaki Works, we have received certification for self-inspection for high-pressure gas safety fromJapan's Ministry of Economy, Trade and Industry. Accordingly, we perform our own "certified safety" and "conformity inspections"for equipment as part of the ongoing effort to maintain stable and safe operation, and we ensure the safety of the applicablefacilities.
Concrete activities are based on the High Pressure Gas Safety Act and are specified in the High Pressure Gas Certification Safety
and Completion Test Regulations approved by the President of Asahi Kasei.

143

Asahi Kasei Group Sustainability Report 2023

High Pressure Gas Safety Controller

Asahi Kasei Corp. PresidentHigh Pressure Gas Process Safety Division General Manager

Asahi Kasei Corp. Director

High Pressure Gas Process Safety Management Department
General Manager

Asahi Kasei Corp. Senior General Manager ofCorporate ESH

We held the High Pressure Gas Process Safety Measures Promotion Conference (chaired by the Asahi Kasei Corp. Senior General
Manager of Corporate ESH who is head of the High Pressure Gas Process Safety Management Department) four times (July andOctober 2022 and January and April 2023) with the relevant parties from head office, the Mizushima Works, and the Kawasaki
Works in order to exchange information in a timely manner and implement the PDCA (plan-do-check-act) cycle. Furthermore, theHigh Pressure Gas Process Safety Measures Meeting, chaired by the High Pressure Gas Process Safety Division General Manager(Asahi Kasei Corp. Director commissioned by the President), was held once (July 2022) to check on the status of process safety at
the Mizushima Works and Kawasaki Works. In addition, the on-site patrol by the High Pressure Gas Process Safety Division General
Manager was conducted in December 2021 at the Kawasaki Works. For the past two years, both the Mizushima Works andKawasaki Works have recognized continuing operations as a key issue, and took thorough measures to prevent COVID-19 infections
and secure the availability of personnel, ensuring that operations did not have to be suspended due to infections.
The Mizushima Works was awarded super certification (Specified Certified Operator), which necessitates a higher level of highpressure gas safety management, in September 2021 when the high-pressure gas safety certification was renewed. The Kawasaki
Works also applied for and obtained ordinary certification during the renewal audit in August 2022. Along with other sites that have
not yet acquired the certification for self-inspection, we will strive for more advanced high-pressure gas safety management.

Basic Policy for High Pressure Gas Safety

Safety is an important fundamental of management, and all of our business activities depend on safety.
Each one of our employees is responsible for safety, and safety is ensured by all employees together.
We apply a PDCA (plan-do-check-act) cycle to continuously improve the level of safety.
Measures to assess risks, and to eliminate and mitigate them, are persistent and ongoing.

Process safety management
In fiscal 2022, 16 safety-related accidents occurred, including at domestic and overseas affiliated companies.
[Number of safety-related accidents in fiscal 2022]
Number of serious industrial accidents: 0 (accident intensity of 18 points or more, or accident resulting in death)
Number of industrial accidents: 2 (accident intensity of 3 points or more but less than 18 points)
Number of minor industrial accidents: 14 (accident intensity of less than 3 points)
Note: Classification by accident intensity is based on the standards of the Japan Petrochemical Industry Association (CCPS).

144

Asahi Kasei Group Sustainability Report 2023

In fiscal 2022, there were no serious industrial accidents, but there were two industrial accidents. The first was in April 2022, whena fire occurred at the Bemberg Plant and lasted for 8 1/2 hours before being extinguished. Along with the semiconductor plant firethat occurred in October 2020 (which lasted for 64 hours before being extinguished), there were issues with fire prevention
measures at indoor plants, so we have begun new activities for prevention. The second was in September 2022, when a fireoccurred at the Saran Intermediate Manufacturing Section due to polymer burning inside a dryer.
There were also 14 minor industrial incidents which occurred such as small fires, smoldering, and small leaks of hazardous
materials on the premises, but thorough primary measures on site prevented damage from spreading. We will continue tostrengthen our efforts to reduce the severity and number of industrial accidents going forward.

Improving fire prevention measures by establishing standards for installing fire prevention
equipment in areas at high-risk of indoor fire
Regarding the semiconductor factory fire in October 2020, we established an accident investigation committee and released a fire
accident investigation report in September 2021. Since the fire occurred in a clean room, we investigated all 216 of our clean rooms
in order to identify measures to prevent recurrence, and conducted on-site inspections of 14 domestic clean rooms and held aninterview regarding one overseas clean room. We found some cases where early detection of fires would be difficult, and somecases where effective fire extinguishing equipment was already in place. Furthermore, the subsequent fire situation at the Bemberg
Plant showed that once flammable plastics and cardboard catch fire, it is difficult to extinguish the fire in an indoor plant, so fire
prevention measures were looked at that focused not only on clean rooms but also on indoor fires in general.
Semiconductor plant fire
(October 2020)

Bemberg plant fire
(April 2022)

Arrangement ofpeopleThree-shift workplace, but not manned all the timeThree-shift workplace, but not manned
all the time

Equipment where
fire occurred

Flammable plastic inside machine

Contains flammable materials such as
cardboard and paper tubes

Earliest detection

Because it was a clean room, smoke was being purified
from the air, which enabled the fire to build up before thesmoke detector activated

A heat alarm sounded, but the fire hadalready spread by the time someone
got to the scene

Initial extinguishing

The first person on scene thought it couldn't be put out
with a fire extinguisher

Attempted to put out fire withextinguisher, but the flames were toohigh to put out

Fire department
response

Difficult to go inside as the space is almost completely
sealedTook time to shut down utilities,
spraying water only began after 1 1/2
hours

On the other hand, we were also able to obtain advanced knowledge about fire prevention equipment from outside experts. A
system that can detect fires early even in clean rooms where smoke is purified from the air has already been put into practical use,
and we have also confirmed examples of using this system in the company to enable the quick extinguishment of fires. We werealso able to confirm examples of the installation in the company of fire extinguishing equipment to prevent the spread of fire after it
breaks out. In order to widely deploy these throughout the company, we established standards in March 2023 for installing fire
prevention equipment in areas at high-risk of indoor fire. We will implement improvements in the future, including putting fire
extinguishing equipment in areas that are at high-risk of fire, such as in places where cardboard boxes for product shipment are
stored. We will also increase both the quality and frequency of disaster prevention training, and revise the emergency response plansubmitted to the fire department in order to prevent fires from occurring and prevent them from spreading.
145

Asahi Kasei Group Sustainability Report 2023

Drenchers which prevent a fire fromspreading

Activities to pass on operational safety technology
Details of initiatives under activities to pass on process safety technology
To achieve safe operations, it is essential to perform sound plant maintenance, and to operate facilities in a safe and stable manner.
The Asahi Kasei Group carries out process safety risk assessments during plant construction and puts in place controls to prevent
fires and explosions after the start of operation. We periodically inspect safety valves and interlock functions, properly maintainaging parts, and repeatedly review facilities and processes based on case studies of accidents both inside and outside thecompany.
In particular, in response to the so-called three major accidents that occurred outside the company in 2011, we began activities topass on operational safety technology in 2013. These activities involved identifying hazards in chemical plants, confirming
preventive measures that may manifest as risks, and passing on the details.
The activities consist of the following four steps:
Step 1: Identification of hazard sources and assessment of hazard risks
Step 2: Creation of technology transfer materials and succession of executive changes using summary materials
Step 3: Training operators to use troubleshooting manuals, factor analysis, etc.
Step 4: Training of operators with ability to apply knowledge to work through troubleshooting drills
First, in Step 1, we rank the hazard sources identified from brainstorming and by accidents that occurred in the past. In a system
where a runaway reaction occurs due to some deviation, if safety devices such as interlocks and safety valves do not function, or if
the container exceeds the design pressure and there is a possibility of rupture, it is defined as Hazard Rank A. Naturally, we
maintain a low risk rank by implementing multiple operational controls that do not cause deviations and by maintaining andmanaging safety devices. In addition to these abnormal reactions, we will also consider abnormalities, such as suspension ofservice, contamination, and expiration of polymerization inhibitor, and how to deal with them.
In addition, Step 4 involves training to ensure that operators working in shifts can correctly respond to expected abnormalities(training to determine the cause of abnormalities, respond, and prevent them from spreading). The individual skills of the trainees
are then assessed to ensure that they are acting in the correct manner, and retraining is conducted until their skills reach the level
required for their role.
Here we will look at some example activities carried out in the manufacturing section. Many talented and experienced operators inthis manufacturing section have retired, with most of them replaced by younger operators with little experience working in achemical plant. In addition to teaching the new personnel how to operate, we make use of the safety and disaster prevention
technology transfer activities so that they can appreciate the underlying manufacturing technology as well. The operators are
educated on Steps 1 and 2 above using technical materials, etc., and then trained so that they can master Steps 3 and 4.
146

Asahi Kasei Group Sustainability Report 2023

Here is an example from the documentation passed on of a fire caused by the materials handled in this manufacturing section that
occurred in 1980. At the time, the manufacturing department regularly collected and disposed of a fine layer of dust that had
accumulated on the roof of the factory. However, one of the plastic bags containing the dust that had been collected during a sunnysummer’s day spontaneously ignited, and the fire spread to the rest of the plastic bags containing the dust. After this accident, dust
collection equipment was improved so that dust was no longer discharged onto the roof, but the potential danger inherent to thesubstance remains unchanged. Therefore, this activity summarizes the multiple countermeasures that were identified andimplemented at the time as the cause of the fire, and provides education on the implications of the work. This activity not only
prevents recurrence, but also prevents unintentional failures in change control.

Excerpt from materials related to past accidents at the
Kawasaki Works

Kayaku Japan Co., Ltd. Tohmi Plant explosion
In March 2022, an explosion occurred at the Tohmi Plant of Kayaku Japan Co., Ltd., resulting in a very tragic accident that killed one
person who was assigned to manufacturing work. Kayaku Japan Co., Ltd. is a company in which Nippon Kayaku Co., Ltd. and Asahi
Kasei have invested 50% each. Kayaku Japan Co., Ltd. has established an accident investigation committee with third party outside
experts to examine and investigate the cause of the accident. In January 2023, a summary of the investigation results was released.
According to the published report, the explosion occurred in the cleaning room, which is the next step in the process after thenitrification room where nitroglycerin is synthesized. The above-mentioned safety and disaster prevention technology transfer
activities were also carried out at Kayaku Japan Co., Ltd. Tohmi Plant, and were finalized in 2016. The applicable facility was anitrification room where an accident had occurred in the past, but there were no documents regarding the cleaning room or otherareas.
However, the nitrification, cleaning, and compounding rooms all handle the extremely hazardous nitroglycerin, so it is possible thatthey were not fully aware of the nature of this activity. It is also possible that Corporate ESH of Asahi Kasei, which should be
inspecting the plant as a third party, did not identify the inherent dangers of the substance and did not give instructions to evaluate
the next process step.
We will reflect on these deficiencies in our safety and disaster prevention technology transfer activities, which we began reinforcing
in fiscal 2022, and will utilize them in various activities related to safety and disaster prevention.

147

Pre-screening when investing in equipment

Asahi Kasei Group Sustainability Report 2023

We perform process safety assessments before plant construction toensure safety, not only when establishing new plants or expanding
plants but also when modifying or dismantling plants. Based on our
pre-inspection standards for capital investment, we conduct preinstallation safety inspections and pre-trial safety inspections before
starting actual operation to confirm safety of new or modified
equipment of a certain size or larger. The inspection system isapplied not only in Japan, but also outside of Japan.
Safety assessment is performed as part of the pre-investment
inspection. Ranks are assigned based on the degree of hazard, withmethods such as HAZOP* utilized in the risk assessment of high risk
facilities.
* HAZOP “Hazard and Operability Study”

A method of identifying causes behind occurrences and countermeasures
based on assumptions due to deviations from design points. This highly
exhaustive method is widely utilized throughout the process industries.

System for inspection prior to capital investment

Measures for safe and stable production at plants
Given our diverse range of operations that include the Material, Homes, and Health Care business sectors, the Asahi Kasei Grouphas plants with a wide variety of different characteristics. No single approach to safety would be appropriate for all plants.
We employ a systematic process to tailor the safety effort to each plant's specific requirements, including the use of the PDCA
cycle. One characteristic of this process is the formulation of separate maintenance standards for each individual unit of equipment
to ensure the appropriateness of the method and period of maintenance.
In addition, measures that span across the Asahi Kasei Group include a Maintenance Personnel Committee and group-wide plantengineering council with 4 specialist panels: Formulation of optimum systematic maintenance programs, establishment ofstandards and criteria, formulation of training systems for maintenance engineers, and sharing engineering information. We will
ensure safe and stable production at our plants through these maintenance activities.

Training for maintenanceWe believe that maintenance means creating the condition of equipment necessary to accomplish production objectives. Although
we use a PDCA cycle for the planned maintenance system, people are the most fundamental element. It is vital for each individual
to gain the essential technical knowledge and contribute to the strength of the team.
The Asahi Kasei Group’s maintenance technicians should have the ability to carry out planned maintenance, to predict hazards, andto make improvements rather being purely repair personnel who fix malfunctioning machinery and return it to its original state. To
develop such maintenance technicians, we clarified the training principles for maintenance technicians, formulated a training
curriculum for each individual based on these principles from fiscal 2009, and applied the PDCA cycle for education and training
based on the curriculum for all maintenance technicians.

148

Asahi Kasei Group Sustainability Report 2023

Training for process safety

At our petrochemical sites in Mizushima and Kawasaki, the Asahi Operation Academy (AOA) serves as the training center tocultivate the skills necessary to conduct production activities at petrochemical plants. AOA teaches the principles and structures ofequipment, heightening the ability to identify the cause of equipment failure and to respond appropriately. Miniature plants andsimulators are used at AOA to provide hands-on experience with controls and instrumentation. Operators thereby gain the technicalskills and practical understanding of chemical engineering necessary for safe and reliable plant operation, with the ability torespond appropriately in the event of any abnormality.
In conjunction, we provide education on human behavioral characteristics and accident case studies in order to instill greater
sensitivity for safety among employees and obtain strict compliance to safety rules to avoid dangers. We carry out safety training
exercises in which employees are given simulated experience of workplace dangers including being caught in/between machinery,contacting hazardous liquids, tripping and falling on the same level, suffering a burn, falling from height, etc.
From fiscal 2019, we began incorporating VR experiences into our basic engineering education and safety training curriculum, andwe are working to enhance training to improve risk sensitivity in equipment handling and operation.
Regularly conductedtraining

Basic technology courses (machinery, instruments, electricity, and chemical engineering)
Safety experience courses (being caught in/between machinery, contacting hazardous liquids,
suffering a burn, stumbling, tumbling or falling, getting scalded, etc.)
Job level-based courses (problem-solving training, etc.)

Training target

Manufacturing operators and facility management personnel

Emergency response
A comprehensive set of internal regulations guides the proper response to any industrial accidents or natural disasters which may
occur.
The smooth operation of the emergency response system ensures that personal safety is secured, that effects of the situation areprevented from spreading to surrounding areas, and that damage is held to a minimum, through close communication between theplants, regional management, and the head office. The plants prepare annual plans for periodic training drills, and perform drills incoordination with the head office.
In Fuji, a firefighting competition sponsored by the Fuji City Fire Association was held for the first time in three years now that the
pandemic has ended. Five teams from the Fuji branch participated with the Asahi Kasei Homes team taking third place in theindoor fire hydrant category. We will continue to discuss with each site how to strengthen the planning and implementation ofeffective disaster prevention drills.

The Asahi Kasei Homes team from the Fuji Branch taking part in the firefighting competition hosted by the Fuji City Fire
Association (September 14, 2022)

149

Asahi Kasei Group Sustainability Report 2023

Transportation and Distribution Safety

To prevent transportation and distribution accidents related to dangerous goods, such as hazardous materials, poisonous
substances, and high-pressure gases, and to further improve the quality of our logistics, the Asahi Kasei Group is engaged invarious safety activities such as logistic safety and quality conventions, safety meetings, safety inspections, and product handlingeducation together with logistics providers contracted for the storage, handling, and transportation of products.
In addition to a logistics safety quality conference, in which logistics companies were brought together both online and face-toface, together with senior management from Asahi Kasei to raise awareness around safety, a safety conference was held in fiscal
2022 attended by many people involved with different products.
Main activities in fiscal 2022
Logistics safety and quality symposium: 50 companies
Safety meeting for dangerous goods (held twice per year): 35 companies
Safety meeting for resin products: 11 companies
Safety meeting for photosensitive dry films: 3 companies
Logistics safety inspection: 43 companies
Product handling training: 21 items, cumulative 82 companies
In addition, we have introduced HAZMATers (Hazardous Materials Emergency Response Service), provided by the Maritime
Disaster Prevention Center, to further strengthen our ability to respond to emergencies. The engagement of HAZMATers makes ahighly specialized emergency response available 24 hours a day, 365 days a year, ensuring swift action to prevent the spread ofdamage if an accident occurs.

HAZMAT emergency dispatch vehicles[Number of logistics accidents in fiscal 2022]
TargetResults

Serious logistics accidents*

00

Logistics accidents**

01(Excluding some affiliates such as Asahi Kasei Homes)
In a logistics accident that occurred in fiscal 2022, a worker's wrist got caught and was fractured during unloading. Corrective
measures are being taken to prevent this from happening again.
Definition of accidents：* Serious logistics accident: (1) One or more dead or seriously injured, (2) 100 million yen or more in damages, or (3) Significant social impact(resident evacuation notice, etc.)** Logistics accident: (1) Personal injury (other than a serious logistics accident), (2) Public response (firefighting, leak prevention, etc.), (3)Explosion, spread of fire, poisoning, or risk of such accidents, or (4) 5 million yen or more in damages
150

Asahi Kasei Group Sustainability Report 2023

Social Activities
Local communities

Community fellowship

PolicyAt the Asahi Kasei Group, we believe that it is our social responsibility to contribute to the development of local communities inwhich we operate by building a good relationship with them. We work to honor and respect the local culture of each community
where our operations are based, and to maintain effective dialog and communication with community members.
It is the policy of the Group as a whole to contribute to the vitality of communities, while at the same time engaging in activities that
help to solve local issues through the creation of local employment and procurement based on the Group’s businesses. In addition,
through community exchange events, plant tours, and community contribution activities, we strive to gain the understanding of local
communities about our business and initiatives, and utilize the feedback we receive in our management.

Management Framework
Administrative departments at the Asahi Kasei Group's sites lead communication with the communities around our plants, planningand operating periodic networking events, plant tours, and other activities.

Plant tours
We offer plant tours to provide better understanding of our operations and the measures we implement for the environment andsafety (tours are not available at all plants). Plant tours were suspended since fiscal 2020 due to the pandemic, but resumed atsome plants in fiscal 2022.

151

Asahi Kasei Group Sustainability Report 2023

Factory tour (Mizushima Works)

Factory tour (Oita)

Dialog and interaction
At each of the Group's main production sites, we engage in dialog and interaction that includes discussion with local residents
through bodies such as local governments, providing public access to our facilities such as sports halls and grounds and parking
lots, and holding events.

A meeting with a local residents’ association(Moriyama Works)

2022 CSR report meeting (Suzuka Plant)Children catching insects on some open
ground (Ohito District)

Clean-up activities around the plant(Kawasaki Works)

Litter pick-up patrol (Fuji Branch)

Cleaning up the beach near the plant(Nobeoka Region)

152

NPO supporting education of the next generation

Asahi Kasei Group Sustainability Report 2023

In 2009, some interested members from the Asahi Kasei retirees
association formed "Hagemashitai" (Encouragers), a volunteer
group for providing support with schoolwork, and began providing
help with math and science schoolwork to junior high school
students in Nobeoka, Miyazaki Prefecture. In 2012, Hagemashitai
was incorporated as an NPO and is expanding in size andcontinuing its activities still today. We support the NPO.

Asahi Kasei retirees volunteer to help students as an NPO activity

153

Asahi Kasei Group Sustainability Report 2023

Social Activities
Local communities

Community fellowship

PolicyThe Asahi Kasei Group is involved in a wide range of community-focused activities under the following Community Fellowship
Policy to fulfill our responsibilities as a corporate citizen. We strive for mutual prosperity with the local communities andstakeholders focused on the three themes of Nurturing the Next Generation, Coexistence with the Environment, and Promotion ofCulture, Art, and Sports.
1. Effective utilization of our human resources and technologies to advance community fellowship based on the uniquecharacteristics of the Asahi Kasei Group.
2. Striving for meaningful community fellowship actions with a constant awareness of our objectives and effectiveness.
3. Supporting and nurturing participation in community fellowship by employees, encouraging volunteerism and individual
initiative.

Value of community fellowship activities
The Asahi Kasei Group supports the active participation of
employees in community fellowship activities. In addition, we
participate in the One-Percent Club of the Keidanren (Japan
Business Federation), and convert our social contribution
activities into monetary value by a method set forth in its annual
Survey of Expenditure for Corporate Philanthropic Activities. The
total value of our donations in fiscal 2022 (including community
investments) was ¥1,574 million.
* The results of the activities of the entire Group were converted intomonetary values based on the methodology of the Japan Business
Federation (Keidanren) “1% Club” Value of Community Fellowship
Activities Survey.

Value of community fellowship activities
Note: Figures for fiscal 2021 have been revised.

Japan Business Federation (Keidanren) “1% Club”
154Asahi Kasei Group Sustainability Report 2023

Nurturing the Next Generation
School visits and science lab for students

To promote understanding and heighten interest in science and technology among elementary, junior high, and high school
students, we visit schools and host visits by students at our plants to give explanations and demonstrations of science andtechnology and on environmental issues. We also support career development with occupational lectures and problem-solving
training, and host visits by students to our offices.
In fiscal 2022, 2,090 students from 31 schools participated in a total of 39 sessions.

Izunokuni City, Shizuoka
Prefecture

Fuji City, Shizuoka Prefecture

Moriyama City, Shiga Prefecture

Nobeoka City, Miyazaki
Prefecture

Sponsoring educational programs on science and the environment by newspaper companies
The Asahi Kasei Group sponsors educational events organized by newspaper companies that provide children with an opportunity
to learn about science and the environment.

Supporting the Japan Student Science Awards
The Asahi Kasei Group was again the sole sponsor of the 66th Japan Student Science Awards in fiscal 2022 organized by The
Yomiuri Shimbun newspaper. The Asahi Kasei Prize was presented at these Awards in recognition of outstanding study of scienceat junior and senior high schools.
An online exchange meeting was also held for winners of the Asahi Kasei Prize and Shizuoka Prefecture Governor's Award and our
young engineers.

Hideki Kobori, Chairman (at the time) of Asahi Kasei
Corporation, presenting the Asahi Kasei Prize (photo provided
by Yomiuri Shimbun)

Online exchange meeting (photo provided by Yomiuri
Shimbun)155Asahi Kasei Group Sustainability Report 2023

Planet Earth Classroom
We again provided sponsorship in fiscal 2022 for "Planet EarthClassroom," a series of environmentally themed projects forelementary school students planned and managed by the Asahi
Shimbun newspaper. We supported the events by editing anenvironmental study textbook for distribution to elementary
schools nationwide, giving lectures on the topic of “Long-lastinghouses are kind to the Earth” at elementary schools, anddispatching personnel as instructors for environmental study
events for families.
Shinichiro Kawai, Head of the Long-Life Home Research Centerof Asahi Kasei Homes, gave classes at the Kankyo One-Day
School environmental education event held in Tokyo in
September, and for fifth-year students at elementary schools inOsaka and Saitama prefectures in December, on the topic of“Long-lasting houses are kind to the Earth.”

A Kankyo One-Day School class (photo provided by Asahi
Shimbun)Students from a Kankyo One-day School class (photo provided by
Asahi Shimbun)

Riko Challenge Summer of 2022 event co-hosted by the Cabinet Office, the Ministry of Education,
Culture, Sports, Science and Technology, and the Japan Business Federation
As a member of the Japan Business Federation, Asahi Kasei endorses the Riko Challenge, promoted mainly by the Cabinet Officefor human resource development in science and engineering. We also cooperated in the Riko Challenge Summer, an event which
first started in 2015. In 2022, we held an online event titled "Science Workplace Tour: Watch and Learn!" for high school students
interested in science and engineering.

Experiment videos published on children's chemistry channel
When the Children's Chemistry Channel (planned and produced by Dream Chemistry 21 Committee) was launched, we cooperated
in the production of video content and released an experiment video titled "Let's make a lemon battery!"156

Asahi Kasei Group Sustainability Report 2023

Miraikan corporate partnership

Since fiscal 2008, we have been a corporate partner of Miraikan - The National Museum of Emerging Science and Innovation. As acorporate partner, we work together with Miraikan to help cultivate interest in science and technology among children and othervisitors.
Under this partnership, we have exhibited at exhibitions held by the Miraikan, provided products for use in demonstrations, andparticipated in various events.
In fiscal 2022, for the first time in three years, we sponsored a special experimental class at a local science museum, which was
proposed by Dr. Hideki Shirakawa, winner of the Nobel Prize in Chemistry.
Additionally, in December, Hebel Village was introduced in the Thinking about Aging and Living workshop at the Miraikan.
Employees from the Senior Business Promotion Department and the Senior Life Research Institute of Asahi Kasei Homes
participated in the workshop titled Thinking about Aging and Living - Rediscovering Life through Collage.

The special experiment classroom with Dr. Hideki Shirakawa

The Thinking about Aging and Living workshop

Exhibited at Out of KidZania in Nobeoka 2022
Asahi Kasei exhibited at the work experience event Out of KidZania in Nobeoka 2022 (main venue: Shitagau Noguchi MemorialHall) held in Nobeoka City, Miyazaki Prefecture, and gave elementary and junior high school students a chance to learn about fiber
manufacturing work with some thread making (nylon). In the SDGs section we displayed the Asahi Kasei Group's initiatives,
businesses, and products aimed at achieving the SDGs, such as the Ziploc Recycling Program, the mechanism of generating
electricity, and the AED Plus automated external defibrillator.

The thread making (nylon) booth

The SDGs section

157

Asahi Kasei Group Sustainability Report 2023

Asahi Kasei Prize awarded at the 12th National Science Koshien Championships hosted by JST

In March 2023, Asahi Kasei sponsored the 12th National Science Koshien Championships hosted by the Japan Science andTechnology Agency (JST). The Asahi Kasei Prize was awarded at this event which was held in Tsukuba City, Ibaraki Prefecture.
Asahi Kasei has been supporting this event since it first began in 2011.

The Asahi Kasei Prize winning school

Hard at work during the competition

Honorary Fellow Akira Yoshino holds special class on the subject of solving the world's
environmental problems
In October 2022, Akira Yoshino, an honorary fellow of Asahi
Kasei, held a special class at a Tokyo high school on the subjectof "What ideas would you propose to solve the world's
environmental problems?" This special class was started in 2018as part of our activities aimed at nurturing the next generation,
which is one of the themes of the Asahi Kasei Group's social
contribution activities. This is the fifth time the event has been
held.
Akira Yoshino talking to students

Scholarship program
We established a scholarship program to help foster talent that will contribute to the advancement of science and technology in
new fields.
Applications are taken from students in masters courses, doctoral courses, and 6-year university courses specializing in chemistry,
chemical engineering, mechanical engineering, civil engineering, architecture, control engineering, electrical engineering,
electronics, high-current electricity, physics, IT, biology, pharmacology, agricultural science, medical science, and veterinary science.

158

Asahi Kasei Group Sustainability Report 2023

Coexistence with the Environment
Tree-planting at Asahi Forest in Miyazaki Prefecture

Every year, we carry out tree-planting activities at the Asahi Forest on Hayahi Ridge in Nobeoka City, Miyazaki Prefecture.
The event had been postponed since fiscal 2020 because of the pandemic but has now resumed from fiscal 2022 (the photo shows
tree planting taking place in fiscal 2022).

Promotion of Culture, Art, and Sports
Corporate sports activities

Asahi Kasei has long supported athletic activity and maintains top-tier long-distance track and judo teams, with employees having
competed in the Olympics nearly 50 times over the years. Our support for sports and athletics also includes sponsorship of theGolden Games in Nobeoka, a notable long-distance track competition in Japan, and provision of running and judo lessons for local
students by members of our corporate distance running and judo teams.
In 2022, the judo team held judo workshops domestically in Nobeoka City, Miyazaki Prefecture, and in Omuta City and Fukuoka City
in Fukuoka Prefecture, as well as overseas in Düsseldorf, Germany.

Nobeoka City, Miyazaki Prefecture, Judoworkshop

Omuta City, Fukuoka Prefecture, Judoworkshop

Judo Workshop in Düsseldorf, Germany
159

Fukuoka City, Fukuoka Prefecture, JudoworkshopAsahi Kasei Group Sustainability Report 2023

Asahi Kasei Himuka Cultural Foundation

The Asahi Kasei Himuka Cultural Foundation was established in 1985 to enrich the environment of day-to-day life and culture in
Miyazaki Prefecture, the cradle of Asahi Kasei. A wide range of cultural activities include musical and dramatic events, support for
local cultural promotion, and fostering familiarity with and understanding of folk culture.

Art Appreciation Bus TourArt appreciation bus tours are held twice a year for viewing performances held within the prefecture and neighboring prefectures.
For those who do not have access to transportation to the venue, we offer a discounted bus and performance ticket package, which
has always been very popular with the tour participants on each occasion.
Performances sponsored in fiscal 2022 (at Shitagau Noguchi Memorial Hall)

Dandyism Banquet with Iwao Furusawa and Koji Yamamoto

Music concert for ages 0 and up

Shitagau Noguchi Memorial Hall

Projects we Co-sponsor, Sponsor, and Support
Throughout the year, Corporate Communications co-sponsors,
sponsors, and supports performances, primarily those held in
northern Miyazaki Prefecture, as well as informs locals about
cultural events held in the region.

“Nijiiro Family Concert” held in fiscal 2021

Asahi Kasei Himuka Cultural Foundation

160

Disaster relief, local disaster prevention, and other activities

Asahi Kasei Group Sustainability Report 2023

Support for research and educational activities for resuscitation and acute critical care
In December 2020, ZOLL Medical Corporation (Headquarters: Massachusetts, USA), a group of Asahi Kasei, made a donation of$10 million to The ZOLL Foundation to support research and educational activities related to resuscitation and acute critical care.
Established in 2013, The ZOLL Foundation is a non-profit charitable organization that operates independently of ZOLL Medical. The
Foundation supports innovative new research as well as research, education, and awareness-raising activities for young
researchers to improve life expectancy through improved CPR techniques, preventing patient deterioration due to myocardial
infarction, and improving care to reduce mortality and morbidity among emergency care patients. Grant applications are accepted
twice a year through The ZOLL Foundation website. For more information, please visit the following website.
The ZOLL Foundation website

Construction of evacuation towers
In fiscal 2013 we constructed two evacuation towers within ourplant grounds in Nobeoka and Hyuga, Miyazaki Prefecture, toenable people to quickly reach a safe height in the event of atsunami. The evacuation towers are available for use not only by
our personnel, but also by nearby community members.

Evacuation tower in Nobeoka, Miyazaki Prefecture

Installation of independent drinking water supply systems
We have installed independent drinking water supply systems in
the production areas at Moriyama, Suzuka, and Nobeoka. The
systems utilize our microfiltration membranes to purify deep well
water, making it drinkable. While serving to supply drinking waterto personnel working at these sites on a daily basis, thesesystems also provide a vital independent backup as a securesource of safe drinking water for local communities in the eventof a disaster.

Independent drinking water supply system in Moriyama, Shiga
Prefecture161

Asahi Kasei Group Sustainability Report 2023

Disaster volunteer organization
In Nobeoka, we have a disaster volunteer organization consistingof our personnel and retirees to perform disaster drills andemergency response support for the local community.

Training to use an automated external defibrillator (AED)

Blood donation
To support "Contributing to life and living around the world," ourGroup Mission, the Asahi Kasei Group cooperates with theJapanese Red Cross Society to run blood donation drives as aneasily accessible community fellowship activity.
We aim to hold the blood donation drive at our Head Office inTokyo between February and March, when donated blood tends
to be in short supply. We hope to promote blood donation
activities with the cooperation of even more employees as aneasily accessible community fellowship activity.
A volunteer donating bloodSponsoring the Kanazawa Marathon
Together with Asahi Kasei Corp., our affiliate Asahi Kasei ZOLL
Medical Corp. sponsored the Kanazawa Marathon 2022 held on
October 30, 2022. The Kanazawa Marathon is a full marathon
event that encourages participation by the public and features acourse that allows participants to fully enjoy the attractions ofKanazawa, as well as famous athletes serving as guest pacers
and the hospitality of volunteers.
Since 2016, Asahi Kasei ZOLL Medical has been a special Gold
Sponsor of the Kanazawa Marathon, providing automatedexternal defibrillators (AEDs) throughout the course andconducting AED life-saving training in advance for first aid
volunteers for the event.
On October 28 and 29 in 2022, prior to the event, a booth was set
up at the Kanazawa Station East Motenashi Dome Underground
Plaza where visitors could get hands-on experience doing chest
compressions using an AED training device.

162

Asahi Kasei Group Sustainability Report 2023

At the booth, visitors could learn the procedure for providing
primary life-saving care in the event of a person collapsing infront of them, as well as experience performing chest
compressions (cardiac massage/CPR) at the appropriate speed
and depth using the AED training machine and mannequins. An
exhibition area for ZOLL Medical’s AEDs and AED training
devices was set up as well.

Donations to UNICEF
In support of UNICEF’s activities to protect the lives and healthof the world’s children for future generations, we delivered 3.65
million tablets of water purification tablets to children around theworld in November 2022 through the UNICEF Inspired Gifts
program conducted by the Japan Committee for UNICEF.
The UNICEF Inspired Gifts program is a way to support UNICEF
by designating UNICEF supplies to be given to children indeveloping countries. According to UNICEF, more than 500,000
young children around the world die each year from diarrheal
diseases caused by contaminated water. This year in particular,
floods and water damage due to abnormal weather have been
occurring frequently in various places. As the need for cleanwater is increasing, the Asahi Kasei Group has decided toprovide support by selecting water purification agents as relief
supplies.
This support was determined based on the number of entrants
and the feedback they provided in the Sustainability PhotoContest* held in 2022 for Group employees.
*

Sustainability Photo Contest:： We invited submissions based on thetheme of “Care for People, Care for Earth” to inspire people to think
about and act on sustainability from a familiar viewpoint. Care for
People, Care for Earth expresses the Group’s commitment to asustainable society. We received over 1,000 wonderful photographsubmissions from our Group locations around the world.

163©UNICEF
Source: Japan Committee for UNICEF

Social Contribution Activities by Group Companies Worldwide

Asahi Kasei Group Sustainability Report 2023

Activities tailored to the characteristics of the community
Many offices and production sites of the Asahi Kasei Group in the United States, Europe, China, Korea, Taiwan, and Southeast Asia,
engage in a variety of community fellowship activities as suited to their individual circumstances and locations. These include
neighborhood clean-up, support for welfare and education, and donation to local organizations and schools. In addition, our Group
proactively advance industrial-academic alliances (with Aachen University of Germany, etc.) where we have strategic business sites
in Europe, pursuing mutual prosperity with the local communities of our operations. We also employ many talented personnel at
Asahi Kasei Europe which was established in 2016 and our Europe R&D Center which was established in 2017.

Americas

Zoll Medical (Emergency medical equipment manufacturer)
Employees participate in an annual charity event called the Heart Walk
(sponsored by the American Heart Association) to save people from heartdisease and stroke.

Sage Automotive Interiors
Sage participated in a tree-planting event called TreesUpstate in South Carolina, where its global headquarters is located, andplanted over 100 trees.
Since 2012, Sage has donated to TreesUpstate to plant trees in schools, parks, and neighborhoods near its global headquarters. At
maturity, Sage's funding of tree plantings will remove 4.3 million miles of car emissions each year and store 195,500 gallons ofstormwater each year to prevent flooding and clean the area's drinking water.

164

Asahi Kasei Group Sustainability Report 2023

TreesUpstate
LinkedIn (Sage Automotive Interiors)

Crystal IS
Crystal IS believes the benefits of UVC LEDs provide make them the ideal sources for delivering UV disinfection to remote areas
with insufficient or damaged infrastructure. In its UV 4 Good Program, Crystal IS partners with the following groups to provide
products and resources to supply clean drinking water to these communities.
Maji Safi UV Project (Kenya)
Maji safi means “clean water” in Swahili. The Maji Safi team believes in enacting positive change for life and living throughout theworld through partnerships and drinking water expertise. They aim to empower tropical populations through sustainable access toclean drinking water using UVC LED technology.

Maji Safi
Safe Water for Ukraine
The Safe Water for Ukraine team is actively partnering with locals to enact positive change for life and living in the region. Their
partnership with industry experts has led to the development of innovative solutions for providing clean and safe drinking water.

Water for Ukraine

Asahi Kasei Plastics North America
Each year, the company hosts high school students from Livingston County, Michigan, for a tour of its offices and to introduce themto the potential of the manufacturing industry. Giving students tours of our facilities allows us to nurture their interest in the
manufacturing industry and contribute to excellent human resource development for the future.
In addition, the Fowlerville Family Impact Center in Michigan provides a list of families in need of gifts, and each year we welcome
four to five of those families during the holiday season to provide them with Christmas gifts and necessities. Employees use the list
to donate toys, art supplies, electronics, clothing, and other items. We also donate food to the children for their New Year meals.

165

Asahi Kasei Group Sustainability Report 2023

Synergos
Ryan House
Synergos sponsors and participates in Ryan House’s annual Run
for Ryan House and Community Breakfast. Ryan House offers
palliative care and support services to families with children
living with life-limiting or terminal conditions, all at no cost to thefamilies.

PTSD Awareness 5K Run/Walk
Employees at Austin Companies participate in an annual 5k
walk/run to honor those that have lost their battle to PTSD,
those who are currently battling, and those who have survived
the battle. All proceeds benefit the First Responder PTS
Foundation (501c3) to assist first responders in obtaining mental
health services and education related to PTSD.
West-MEC Vocational School
Erickson Framing supports the West-MEC vocational school's
General Construction Technology program by discussing
construction careers with students and facilitating hands-on
learning activities. The General Construction Technology Program
prepares students to enter the residential and commercial
construction industry.

166

Asahi Kasei Group Sustainability Report 2023

ThailandAsahi Kasei Plastics Thailand
Since 2018, the company has participated in a charity marathon organized by a hospital and other organizations in Ayutthaya
Province. In fiscal 2022, it donated approximately 390,000 baht from participation fees and other charity funds to Bang Pa-In
Hospital. Donations are used to purchase medical equipment for the hospital to support patients and sick people, in order tocontribute to the development of local medical care.

Employees who took part in the charity marathon

With people at Bang Pa-In Hospital

Thai Asahi Kasei SpandexThai Asahi Kasei Spandex (TAS) operates its plant 24 hours a day, 365 days a year, and believes that its production activities
depend on the understanding of local residents. For this reason, at the end of each year, all plant managers and employees thankthe local community and distribute sweets and other gifts to local children. As the event in 2022 took place on Christmas Day, many
Santas took to the streets to give away presents. TAS will continue to work in harmony with the local community in Thailand. (Leftphoto)In 2022, TAS held an event called TAS CSR DAY for the first time. The company invited people from the surrounding community andlocal kindergarten students to its premises. After TAS introduced its Responsible Care activities, the children showed what they
were practicing every day, cementing a close friendship. By interacting directly with local residents at this event, TAS employees
have increased their sense of responsibility for safety and the environment. TAS will continue to actively participate in educational
activities that will lead to the future of the local community by providing local residents with a deeper understanding of theiractivities, and contributing to the local community in Thailand. (Right photo)167

Asahi Kasei Group Sustainability Report 2023

EuropeAsahi Kasei Europe
Twenty-two employees participated in the annual B2Run running event in Dusseldorf, Germany.
Asahi Kasei Europe (AKEU) has been participating since 2018, and a portion of the participation fee paid by each runner is donatedto DKMS, an international charity focused on eradicating leukemia and other blood diseases. The participating members ran hardwith a sense of mission and purpose that their running would help eradicate disease.
In addition, 40 employees and their families participated in the Rhine Clean Up initiative, cleaning up the banks of the Rhine
River near the company’s office.
This activity began in 2018 and involves volunteer staff from Switzerland, where the Rhine River originates, and the five countries of
the Rhine basin, including Germany. Through this activity, participants help to preserve the river and the surrounding environment.
AKEU has been participating since 2021 and will continue to work to pass on the beautiful river and natural environment to current
and future generations, thereby contributing to the local community.

Employees who ran in the B2Run event

People involved in the Rhine Clean Up

Rhine Clean Up report

India

Asahi Kasei India
Starting in fiscal 2022, Asahi Kasei India has been conducting a
campaign in collaboration with Indian NGO Akshaya Patra toincrease awareness and improve the image of its Premium Wrap
product. In this campaign, if anyone posts a photo on social
media (Facebook or Instagram) of food wrapped in Premium
Wrap, 3 to 4 school lunches get donated for each post throughAkshaya Patra.
Akshaya Patra gave a letter of appreciation for the social
contribution this activity has made. Specifically, the campaign
has provided educational opportunities for children and families
through the provision of meals, and it has also contributed to the
opening of large-scale meal centers in various places, providing
about 5,000 job opportunities to local people.
Through this activity, Asahi Kasei India aims to foster awarenessand habits of food preservation in India, helping to reduce foodloss and eradicate hunger.
Campaign Site: Wrap Up Hunger with Asahi Kasei
Activity Reports
168

Akshaya Patra presents a letter of appreciation to Asahi Kasei
India

Asahi Kasei Group Sustainability Report 2023

Governance
The Asahi Kasei Group constantly endeavors to strengthen corporate governance in an effort to increase sustainable growth andenhance medium- to long-term corporate value.

Corporate GovernanceWe continue to pursue thebest approaches to corporate
governance using a system
for making decisions
transparently, fairly, swiftly
and boldly, based on changes
in the business climate.

Compliance
We aim for a higher level ofcorporate ethics in all of ourbusiness activities. This
includes not only compliancewith laws and regulations,but also social norms.

Risk Management
We have established and arestrengthening basic rules forrisk management in ourbusiness operations andaddressing contingencies.

169

Tax Policy
We have established a tax
policy to ensure the Asahi
Kasei Group's compliancewith tax related laws andregulations as well as
improved tax transparency.

Asahi Kasei Group Sustainability Report 2023

Corporate GovernanceTranslation of the Corporate Governance Report （744.9KB）
As of December 22, 2023

Basic Approach
The Asahi Kasei Group Vision is to provide new value to society and solve social issues by enabling "living in health and comfort"and "harmony with the natural environment" under the Group Mission of "contributing to life and living for people around theworld." With this as a base, the Company aims to contribute to society, achieve sustainable growth, and enhance corporate value
over the medium to long term by promoting innovation and creating synergy through integration of various businesses. The
Company continues to pursue optimal corporate governance as a framework to make transparent, fair, timely, decisive, andappropriate decision-making in accordance with changes in the business environment.

Basic Policies

1. Securing the Rights and Equal Treatment of Shareholders
While taking proper measures to secure shareholders' rights, the Company develops a proper environment for exercise ofshareholders' rights including paying attention to foreign shareholders and minority shareholders and providing informationnecessary for the exercise of rights accurately and in a timely manner.

2. Proper Cooperation with Stakeholders other than Shareholders
The Group Vision of the Company is to provide new value to society and solve social issues by enabling "living in health andcomfort" and "harmony with the natural environment" for people around the world, and the Company works to facilitate
cooperation with its stakeholders.

3. Proper Information Disclosure and Securing of Transparency
The Company, in addition to disclosure required by laws and regulations, actively provides information to various
stakeholders including financial information such as financial position and operating results, management strategy/issues,and non-financial information concerning risks and governance, etc.

170

Asahi Kasei Group Sustainability Report 2023

4. Responsibilities of the Board of Directors
In order to achieve sustainable growth, enhance medium to long term corporate value, and increase earnings ability andcapital efficiency, the Board of Directors of the Company presents the overall direction of its management strategy,
develops an environment to support risk-taking by the management, and effectively oversees the business management of
the Company from an independent and objective standpoint, based on the fiduciary responsibility and accountability toshareholders.

5. Dialog with Shareholders
The Company develops a system to have a constructive dialog with shareholders/investors and actively promotes suchdialog.

Corporate Governance Framework
Corporate governance configuration

171

Asahi Kasei Group Sustainability Report 2023

Meetings of Board of Directors, Advisory Committees, and Audit & Supervisory Board (fiscal 2022)
No. ofmeetings
held

Average attendance

Main subjects of agenda
Medium-term management plan, annual
management plan
Quarterly and annual results
Examinations, decisions, and follow-up of large
investments, M&A, and reorganization
Analysis and disclosure for TFCD
Enhancement of risk management, follow-up on
plant accidents, and influence of the situation in
UkraineEffectiveness evaluation of the Board of
Directors, review on the officer remuneration
system, nomination of officers

Board of Directors

15

99%(Directors and Audit &Supervisory Board
Members)

Nomination Advisory
Committee*

5100%(all members)

Election of chair
Committee scheduleNomination of officers for fiscal 2023

Remuneration
Advisory Committee*

6100%(all members)

Review on the officer remuneration decisionmaking policy
Review on the performance-linked remuneration
systemReview on the stock-based remuneration system
Decision of individual performance-linked
remuneration amounts

Audit & Supervisory
Board

19

98%
(Audit & Supervisory
Board Members)

Audit plans
Opinion exchange on agenda of the Board of
Directors meetings
Checks of financial statements
Opinion exchange sessions with Outside
Directors
Evaluation of Independent Auditors* The Nomination Advisory Committee and Remuneration Advisory Committee are comprised of the 4 Outside Directors and Chairman & Director
Hideki Kobori and President & Representative Director Koshiro Kudo as members, with the Nomination Advisory Committee and the Remuneration
Advisory Committee chaired by Outside Director Tsuyoshi Okamoto.

Compliance
Risk Management

172

Policy and Procedures to Nominate Candidates for Directors

Asahi Kasei Group Sustainability Report 2023

In selecting candidates for Directors, the Company chooses persons with deep insight and excellent skills suitable for Directors. For
inside Directors, the Company chooses those with expertise, experience and skills in the required field as candidates. Meanwhile,for Outside Directors, the Company chooses as candidates corporate executives, academic experts, and former civil servants with
abundant experience, expecting objective oversight of management based on their deep insight.
To further increase the objectivity and transparency of the nomination of candidates for Directors, the Company has established theNomination Advisory Committee whose members mainly comprise outside Directors. This committee is involved in the examinationof the composition and size of the Board of Directors and the nomination policy for officers and provides advice.
Supplementary Explanation on the Reason for Selecting Outside Directors and Their Independence (NOTICE OF THE 132nd
ORDINARY GENERAL MEETING OF SHAREHOLDERS) （2.0MB）

Diversity of Expertise and Experience of Directors/Audit & Supervisory Board Members(Skills Matrix)
In order to “contribute to life and living for people around the world,” the Company pursues two aspects of sustainability:“contributing to a sustainable society” and “sustainable increase in corporate value.” To this end, we have identified the knowledge,
experience, and capabilities required to advance Group management and its supervision and auditing at a higher level in a
discontinuous and uncertain business environment, and have considered the composition of the Board of Directors withconsideration to the balance of its diversity and independence.
Specifically, in addition to “corporate management and strategy,” “finance and accounting,” “legal affairs, intellectual property, andrisk management,” and “R&D, manufacturing, and technology,” which are indispensable for pursuing opportunities and reducing
risks, we also emphasize “global” to align with the internationalization of markets and businesses, “digital” to advance digitaltransformation, “environment and society” to respond to changes in the social environment and the status of stakeholders withagility, and “human resource management” to utilize people as the foundation of business management.

173

Asahi Kasei Group Sustainability Report 2023

Corporate
Management& Strategy
Directors

Hideki
Kobori★

KoshiroKudo★

Finance &Accounting

Legal Affairs,
Intellectual
Property &RiskManagement

★

★
★

★

HirokiIdeguchi
Masatsugu
KawaseTsuyoshiOkamotoI

Yuko Maeda

I

ChiekoMatsudaI★
★

YutakaShibata★

★

Haruyuki
Urata

I

Yoshikazu
Ochiai

I

★

★

★

★

★
★

I

★

★

TakuyaMagaraAkemi
Mochizuki

★

★

★

★
★

Human
Resource
Management

★
★

★
★

★

★

★
★

I

Environment& Society★
★

Tsuneyoshi
Tatsuoka

Digital★

★

Toshiyasu
Horie

Global★

Kazushi
Kuse

Audit &
Supervisory
Board
Members

R&D,
Manufacturing& Technology

★

★

★

★

★
★

★

(Note) Up to four fields with particularly high expectations are noted for each individual. The table above does not represent all of the knowledge,
experience, and capabilities of each individual.

Evaluation of the Effectiveness of the Board of Directors
The Board of Directors of the Company conducts regular evaluations of its own effectiveness every fiscal year. The evaluation
method and measures in fiscal 2022 and issues recognized for the future are as follows:174

Asahi Kasei Group Sustainability Report 2023

Effectiveness evaluation method

In the middle of the fiscal year, based on the previous fiscal year’s evaluation as well as institutional investors’ demands
and capital market trends, the chair of the Board of Directors took the lead in examining the future direction of theCompany’s Board of Directors. Independent officer meetings, which were attended only by Outside Directors and Outside
Audit & Supervisory Board Members, also conducted interim reviews on the effectiveness of the Board of Directors andexchanged opinions. Then, the Board of Directors discussed the matters to organize and categorize them into issues that
require improvement within the current fiscal year and ones that require continuous consideration. After these steps, at thestart of the new fiscal year, the Board of Directors again deliberated on the effectiveness of the Board of Directors, as well
as checking the progress of improvement actions in the fiscal year.

Main measures implemented in fiscal 2022

The Board of Directors of the Company implemented the following measures in fiscal 2022 based on evaluation of theprevious fiscal year.
1) The composition of the Board of Directors
To keep a higher level of the Group management and supervision and auditing on the management in this
discontinuous and uncertain business environment, we have discussed the composition of the Board of Directors
considering the balance of its diversity and independence. We decided that the following rectifications will be madeon the member composition to further enhance the monitoring capability of the Board of Directors and facilitate
discussions in the Board of Directors:
i. A rectification to ensure that Inside Directors are mainly composed of officers responsible for corporate
departments
ii. Increases in Independent Outside Directors and female Directors
2) Receiving feedback from employees
Anonymous surveys were conducted for officers and employees (who are not Directors or Audit & Supervisory Board
Members) who attended the Board of Directors meetings as assistants for proposing or reporting. The surveys areintended to know what expectations or issues the officers and employees have with the Board of Directors. The
surveys found that employees and other staff generally recognize the value in deliberations by the Board of
Directors from perspectives different from those of internal discussions. The survey also helped us identify issues
with how to propose and report matters in the Board of Directors meetings with an awareness of differences frominternal meetings, including the Management Council. These issues have led to the following improvements forfacilitating meetings.
3) Improvements for facilitating meetings
Starting from fiscal 2022, the agenda includes matters to be discussed in addition to matters to be resolved andreported, and a procedure is established for the Management Council meetings and other internal meetings to share
their discussions with the Board of Directors. With such measures, the Board of Directors can discuss importantmanagement matters more deeply. In addition, the meetings of the Board of Directors provide a more concise
explanation of materials while enabling outside officers to receive a preliminary explanation. The executive
summary is utilized to organize discussion points. These improvements helped the Board of Directors have more
effective discussions. Furthermore, a guidance document was created to clarify basic points so that meetings canbe facilitated more effectively, considering the composition and role of the Board of Directors.

Issues recognized for the future

Based on measures implemented in fiscal 2022, the Board of Directors has confirmed a common awareness of thefollowing issues for the future.
175

Asahi Kasei Group Sustainability Report 2023

1) Methods to evaluate the effectiveness of the Board of Directors
We continue to scrutinize evaluation methods with objective perspectives, such as working with third parties.
2) The way that the Board of Directors should be
As our business environment is changing, we continuously pursue the ideal Board of Directors (in terms of
independence, diversity, and organizational structure).

Remuneration of Directors
Note: Percentages shown for Directors who have executive responsibilities (FY2022)
Fixed base remuneration

Performance-linked remuneration

Stock-based remuneration

56.5%

27.7%

15.8%

Performance-linked remuneration → commitment to results
Stock-based remuneration → perspective of shareholders(Note) Outside Directors receive fixed base remuneration only

The amount of remuneration, etc. of Directors and Audit & Supervisory Board Members in fiscal
2022
Breakdown by remuneration type (¥ million)

AmountPaid (¥
million)Basic
remuneration

Performancelinked
remuneration

Stock-based
remuneration

Number of Directors
and Audit &Supervisory Board
Members Paid

Directors

528

379

95

54

11

(of which Outside
Directors)

53

53

－

－

3

Audit & Supervisory
Board Members

154

154

－

－

6

(of which Outside
Audit & Supervisory
Board Members)

53

53

－

－

4

Total

682

533

95

54

17

Classification(Note) In this table, “Stock-based remuneration” represents an amount expected to be charged for the next fiscal year, not an amount that was
charged for the fiscal year under review. The Company charges the stock-based remuneration on a day when points are conferred based on the
Share Grant Regulations. The point conferment date is set to a day in the next fiscal year of the fiscal year in which the target achievement basedate for the points (the final day of the fiscal year) exists.
176

Asahi Kasei Group Sustainability Report 2023

Policy on Determining Remuneration Amounts and Calculation Methods

As one of the corporate governance mechanisms to ensure that the Group can achieve sustainable growth and enhance corporate
value over the medium to long term, the Company has sought advice of the Remuneration Advisory Committee on the decisionmaking policy pertaining to the contents of remuneration, etc. for individual Directors (hereinafter, the "Decision-making Policy").
Respecting the contents of the reports thereof, the Board of Directors has made a resolution on the Decision-making Policy as
follows.
The remuneration for Audit & Supervisory Board Members consists of fixed remuneration, since the performance-linked
remuneration system is not applied in the remuneration for them. Individual remuneration amounts are determined throughdiscussions with Audit & Supervisory Board Members.

Policy for Determining Director Remuneration

1. Basic policy
The Directors’ remuneration of the Company is one of the important components of corporate governance. The
Company designs this system to provide appropriate incentives to both executives and supervisors for achieving
sustainable growth and improving medium- to long-term corporate value.
Remuneration for Non-executive Directors* including Outside Directors, who supervise the management of theCompany, is comprised solely of fixed basic remuneration at a level determined in consideration of third-party
survey data, in order to secure a high degree of independence unaffected by short-term earnings fluctuations.
The remuneration for Executive Directors combines performance-linked remuneration with stock-based
remuneration as nonmonetary remuneration, in addition to fixed basic remuneration which serves a basic livelihood,in order to provide incentives tied to earnings and management strategy as senior management, with levels of
remuneration amounts and proportions of types of remuneration adjusted as appropriate for each role according tomanagement strategy and tasks, in consideration of third-party survey data.
To ensure the optimal way of remunerating Directors and design of the remuneration system, the Board of Directors
and the Remuneration Advisory Committee regularly deliberate and continually confirm their appropriateness andmake improvements.
2. Policy for determining the timing for payment and conditions of remuneration
Considering the purpose of each type of remuneration, fixed basic remuneration is paid monthly as it serves as abasic livelihood, performance-linked remuneration is paid monthly as it serves as a constant incentive, and forstock-based remuneration, points described below are granted to eligible Directors on a certain date each fiscal
year set forth in the Share Grant Regulations determined by the Board of Directors, and shares of the Company areprovided to eligible Directors at the time they retire both as Director and as officer of the Group in light of the
purpose of the stock-based remuneration to share the medium- to long-term perspectives of shareholders.
3. Policy for determining each individual’s basic remuneration (monetary remuneration)
Amounts of basic remuneration for Directors are determined through comprehensive consideration in accordancewith rank and responsibility taking account of other companies’ levels of remuneration and the Company’s earnings.
4. Policy for determining content of performance-linked remuneration and nonmonetary remuneration as well as
method of calculating amounts and numbers thereof
Performance-linked remuneration, which comprises a part of remuneration for Executive Directors, combines bothachievement of financial targets including invested capital efficiency with achievement of non-financial targets
including individual targets such as progress on sustainability, so as to provide incentives tied to earnings andmanagement strategy as senior management.
Performance-linked remuneration is calculated based on a comprehensive judgment on the basis of achievement offinancial targets such as consolidated net sales, operating income, ROIC, etc., together with achievement of
individually set targets including progress on sustainability. Standards for financial incentives are selected as
appropriate for clear and objective evaluation based on earnings results together with the perspective of awarenessfor improving invested capital efficiency.
177

Asahi Kasei Group Sustainability Report 2023

The formula required to calculate individual performance-linked remuneration is outlined as follows.
[Formula required to calculate individual performance-linked remuneration]

A portion of remuneration for Executive Directors is the provision of stock-based remuneration as non-monetary
remuneration. To share with shareholders not only the benefits of share price increases but also the risk associatedwith share price decreases, a stock-based remuneration system was adopted, whereby a trust established by theCompany acquires shares of the Company and grants them to eligible Directors. Based on the Share Grant
Regulations adopted by the Board of Directors, eligible Directors are granted points linked to achievement of targets
set by the medium-term management plan in accordance with their rank, etc. (maximum of 150,000 points per fiscal
year) and the Company’s shares are granted to eligible Directors corresponding to the accumulated number ofpoints at the time of their retirement as Director and as officer of the Group (the number of shares to be granted isthe number of points granted multiplied by 1.).
5. Policy for determining the proportion of basic remuneration, performance-linked remuneration, and nonmonetary
remuneration for individual Executive Directors
The proportion of basic remuneration, performance-linked remuneration, and stock-based remuneration for each
Executive Director is determined to provide an appropriate incentive in accordance with management strategy andmanagement tasks, with consideration given to the level obtained from third-party survey data.
The proportion of basic remuneration, performance-linked remuneration, and stock-based remuneration for each
Executive Director is generally 6:3:1, with performance-linked remuneration ranging between 0% to 200% of thebase amount based on rank, according to evaluation. However, the Board of Directors and the Remuneration
Advisory Committee regularly deliberate on its appropriateness, and improvement is made based on continual
confirmation of appropriateness.
6. Policy for determining items to be entrusted regarding determination of content of remuneration of individual
Directors and for determining content of remuneration of individual Directors
Among remuneration of each individual Director, determination of the amount of performance-linked remunerationis entrusted to the Remuneration Advisory Committee based on a resolution of the Board of Directors, with theRemuneration Advisory Committee being authorized to confirm the reasonableness and appropriateness of theevaluation of the achievement of targets by each Executive Director as proposed by the President and Director, andto determine remuneration amounts for individual Directors by applying this evaluation to the formula determinedby the Board of Directors.
To ensure that such authority is properly exercised, the Remuneration Advisory Committee is comprised of amajority of Outside Directors, and it regularly reports to the Board of Directors on the process of the above
confirmation and determination.
Regarding determination of basic remuneration and stock-based remuneration for individual Directors, the Board of
Directors requests deliberation by the Remuneration Advisory Committee and makes a determination based on
ample consideration of the result of deliberation by the Remuneration Advisory Committee.
Fixed basic remuneration by rank is paid upon determination of the amount by the Board of the Directors. Stockbased remuneration is granted to eligible Directors when certain conditions are met, corresponding to points
granted to each Director based on the Share Grant Regulations adopted by the Board of Directors.
7. Important matters for determining the content of individual remuneration, etc. for Directors
In the event that a Director who is eligible for payment of stock-based remuneration, which is nonmonetary
remuneration, as part of the above-stated remuneration for Executive Directors, retires due to personal reasons(except in cases where it is determined that the resignation is due to unavoidable circumstances), and in the eventthat a Director is dismissed or resigns due to causing loss or damage to the Company’s group companies as definedin the Share Grant Regulations, etc., all or some of the points granted up to that point shall be forfeited and noshares of the Company corresponding to the forfeited points shall be granted, or no further points shall be granted,
based on a resolution of the Board of Directors.
178

Asahi Kasei Group Sustainability Report 2023

* Non-executive Directors include Director and Chairman.

Officer Remuneration, etc. (NOTICE OF THE 132nd ORDINARY GENERAL MEETING OF SHAREHOLDERS) （2.0MB）

Independence Standards and Qualification for Outside Directors/Audit & Supervisory
Board Members
In determining that Outside Directors and Outside Audit & Supervisory Board Members are independent, the Company ensures thatthey do not correspond to any of the following and that they are capable of performing their duties from a fair and neutral
standpoint.
1. A person who conducts business on behalf of the Group (Executive Directors, Executive Officers, Operating Officers,
employees, etc.) or a person who has done so over the last 10 years
2. A company or a person who executes the businesses thereof whose major business partner is the Group (an entity with morethan 2% of its annual consolidated net sales coming from the Group)
3. A major business partner of the Group (when payments by this partner to the Group account for more than 2% of theCompany's annual consolidated net sales or when the Company borrows money from such partner amounting to more than 2%of the Company's consolidated total assets) or a person who executes the businesses thereof
4. A person who receives a large amount of money or other financial gain (¥10 million or more in one year) from the Group as anindividual other than remuneration for being a Director/Audit & Supervisory Board Member of the Company
5. A company which receives a large amount of donations or aid (¥10 million or more in one year) from the Group or a person who
executes the businesses thereof
6. A main shareholder of the Group (a person/company who directly or indirectly owns 10% or more of all voting rights of theCompany) or a person who executes the businesses thereof
7. A person who executes the businesses of a company which elects Directors/Audit & Supervisory Board Members/employeesof the Group as Directors/Audit & Supervisory Board Members
8. An Independent Auditor of the Group or any staff thereof
9. A person who has fallen into any of the categories 2 through 8 above over the last three years
10. A person who has a close relative (spouse, relative within the second degree of kinship, or those with whom they share living
expenses) who falls under any of the categories 1 through 8 above, provided that "a person who executes businesses thereof"
in 1, 2, 3, 5, 6, and 7 above shall be replaced with "an important person who executes the businesses thereof (Executive
Directors and Executive Officer, etc.)"
11. A person who has served as Outside Director or Outside Audit & Supervisory Board Member of the Company for more thaneight years in total.

Status of Audits by Audit & Supervisory Board Members, Financial Audits and Internal
Audits
For internal audits of business execution, the company has established an Internal Audit Department, reporting directly to the
President. The Internal Audit Department formulates an annual audit plan according to the Company's Basic Regulation forInternal Audits, and conducts an audit of the Group under the approval of the President.

179

Asahi Kasei Group Sustainability Report 2023

As for audits by Audit & Supervisory Board Members, each Audit & Supervisory Board Member audits the execution of duties of
Directors by attending meetings of the Board of Directors and examining the status of execution of operations based on the audit
policy stipulated by Audit & Supervisory Board. To support the function of the Audit & Supervisory Board, the Company has
established an Audit & Supervisory Board Members Office.
PricewaterhouseCoopers Arata LLC is contracted as the Independent Auditors to perform financial audits according to theCompanies Act and Financial Instruments and Exchange Act.
Mutual cooperation between the Internal Audit Department, Audit & Supervisory Board, and Independent Auditors is reinforced
through periodic liaison meetings of the Internal Audit Department, Audit & Supervisory Board, and Corporate Auditors of core
operating companies, etc. During these meetings, the effectiveness of the Group's internal control system for legal complianceand risk management is reviewed. In addition, the Audit & Supervisory Board confirms the audit plan with the Independent
Auditors and receives reports of the results of audits on the Group at the end of the quarterly consolidated accounting period andat the end of the annual consolidated accounting period.
Details of Independent Auditors Remuneration (NOTICE OF THE 132nd ORDINARY GENERAL MEETING OF SHAREHOLDERS)（2.0MB）
Asahi Kasei Report

Strategic Shareholdings
The Company is continuing to reduce its holdings of shares held for purposes other than pure investment (strategic shareholdings),
taking into consideration factors such as the risk of share price fluctuations, costs associated with such holdings, and capitalefficiency.
The purpose, effectiveness and economic rationale of individual strategic shareholdings are regularly evaluated from qualitative andquantitative aspects each year, and are reviewed by the Board of Directors. As a result of the verification, the Company reduces,through sales or other means, holdings of shares judged to be no longer compatible with the purpose of holding them or deemed tohave costs and risks that outweigh the benefits of holding them, taking into consideration the conditions of the company concerned.

180

Asahi Kasei Group Sustainability Report 2023

Compliance
PolicyThe Asahi Kasei Group takes compliance seriously, and fully adheres to laws and regulations that are applicable to each businessand function, as well as internal company rules.
Each employee is also expected to uphold high ethical standards and respect social norms throughout the course of businessactivities, acting with sincerity in accordance with our Group Values based on our Group Mission.

Asahi Kasei Group Code of Conduct
The Asahi Kasei Group Code of Conduct serves as a set of standards that include matters ofcompliance and applies to each and every member of the Asahi Kasei Group. The code serves asa foundation for the actions of all members of the Asahi Kasei Group to follow during the courseof their day-to-day work activities to fulfill our Group Mission in accordance with our Group
Values.
We will continue to review this Code of Conduct based on the expectations of society andchanges in circumstances in order to maintain its effectiveness.
The Asahi Kasei Group Code of Conduct can be downloaded from the link below:
Asahi Kasei Group Code of Conduct （441.0KB）

Asahi Kasei Group Code of
Conduct

Awareness of Code of Conduct
After the establishment of the Code of Conduct in fiscal 2017, we created booklets containing this Code and distributed them to the
executives as well as all domestic employees of our Group. We also spread awareness about the Code of Conduct by reading
through the Code at each workplace and establishing an e-learning course for reviewing the Code.
Moreover, to further improve awareness of the Code of Conduct, we began using specific examples of compliance violations andholding discussions about them at each workplace in Japan, and we also integrated a review of the Code of Conduct into the rankspecific company training curriculum. Since fiscal 2019, we have been conducting a compliance survey once every two years to
confirm the degree of awareness with regard to our Code of Conduct. In fiscal 2021, 29,116 out of the 31,131 employees in Japan(including contracted, temporary, and part-time employees) responded (a response rate of 93.5%), with about 80% saying that they
understood the Code of Conduct, confirming that the Code has firmly taken hold.
Overseas, in addition to distributing booklets of the Code of Conduct in various languages, we are steadily working to expand
awareness through e-learning, training, and other means, and we are promoting actions that are based on a strong sense of ethics.

181

Asahi Kasei Group Sustainability Report 2023

Management Framework
In order to strengthen the compliance system of the entire Group, we have established a Risk Management & Compliance
Committee chaired by the president, which monitors the state of compliance throughout the Asahi Kasei Group. Results of thecommittee's deliberations, etc., are reported to the Board of Directors.

Handling Serious Compliance Violations
If a significant compliance violation occurs within our Group, a system is in place whereby the Executive Officer for Compliancereports the incident to the Risk Management & Compliance Committee.

Whistleblower System (Compliance Hotline)
The Asahi Kasei Group began employing a Whistleblower System (compliance hotline) in 2005 to ensure that any possible ethicallapses which employees may encounter or observe are dealt with swiftly and appropriately. In fiscal 2015, the system was expanded
to enable suppliers and their employees to report or consult. Reported matters will be investigated by an office consisting of those
designated by the Executive Officer for Compliance as well as an organized investigation and response team if required. The
Executive Officer for Compliance reports the status of operations to the Risk Management & Compliance Committee. For serious
compliance violations and incidents involving officers, the Executive Officer reports to the Audit & Supervisory Board.
Strict observance of confidentiality
The Asahi Kasei Group has measures in place to prevent the persons submitting reports to be treated unfairly as a result of theirreport.
In addition, we strive to protect the confidentiality of the report as well as the personal information of persons submitting reports.
Applies to
Executives and employees of our Group, business partners and their employees. (Other than Executives, those who have beenretired for less than one year are eligible as well.)
Matters addressed
There are no restrictions on what can be reported. The hotline receives reports on a broad range of matters, including human rights
violations such as discrimination and harassment, and corruption, such as bribery.
Response method
Reports can be both made either anonymously or using one's real name, either over the Internet or in writing (addressed to a
designated law office).

Reports and responses
During fiscal 2022 there were 85 reports and consultations made through the hotline system. None of them regarded significant
matters which would affect the performance of operations. Of these, two were reports or consultations related to human rights
issues such as discrimination and harassment.

182

Asahi Kasei Group Sustainability Report 2023

Prevention of bribery
The Asahi Kasei Group endorses the UN Global Compact and has proclaimed that it will "strive to prevent all forms of corruption
including coercion and bribery." Corruption including bribery is clearly prohibited within the Asahi Kasei Group Code of Conduct as
well.
The Asahi Kasei Group Policies for Prevention of Bribery clarify basic policies to prohibit bribery and procedures to follow to prevent
bribery. These policies are made known to the entire Group based on a clear internal framework.
Asahi Kasei Group Basic Policies for Prevention of Bribery （92.5KB）
1. Procedures
Transactions subject to procedures under these regulations directly or indirectly involve counterparties in (1) the public sector(regardless of country) and (2) the private sector in certain countries with commercial bribery regulations. Specifically,receiving or providing a meal or gift or providing donations is only permitted after obtaining the advanced screening andapproval of the prescribed person in charge of each organization. Due diligence is conducted to check the suitability ofbusiness partners from the standpoint of bribery prevention in terms of transactions that fulfill certain formats of concern interms of bribery prevention, such as contracts with agents and distributors. In addition, business partners are informed of ourbasic policy on bribery prevention and they are required to sign a pledge or include contractual provisions on the declaration ofcompliance with anti-bribery related laws.
2. Education
We provide educational opportunities to employees, including those outside of Japan, in the form of e-learning and in-housetraining on overall prevention of corruption (bribery, money laundering, fraud, etc.)
3. Monitoring
We carry out internal audits periodically as well as evaluate and review the management framework for bribery prevention inorder to maintain a continuous and effective framework for bribery prevention.
4. Consulting and Reporting
We have put into place a framework by which employees can consult with a legal department in Japan or at overseas offices incase uncertainties or doubts arise regarding bribery during the course of their daily work.
In case an employee discovers a violation of or act that could violate bribery laws, they are required to report the matter
immediately to the prescribed person in charge.
Our whistleblowing system also enables suppliers and their employees to report or consult regarding bribery and other aspectsof corruption.
5. Legal Violations related to Corruption
In fiscal 2022, there were no cases where an employee was dismissed or subjected to legal proceedings due to corruption.

Responding to Suppliers
We have also included questions related to anti-corruption for suppliers in our CSR Procurement Questionnaire to ensure that theentire Group is involved in the prevention of bribery.

Political contributions
In terms of political contributions, we have established a system of checks and balances based on company rules to ensurecompliance with the Political Funds Control Act. Political contributions are made only after the required pre-approvals are obtained.
Our political contributions in fiscal 2022 were ¥15,900,000 (Asahi Kasei Group total).

183

Asahi Kasei Group Sustainability Report 2023

Compliance with antimonopoly and competition laws
The Asahi Kasei Group Regulation for Management of Compliance with Antimonopoly Law prohibits acts which violate thecompetition laws of each country. To prevent acts which would constitute or arouse suspicion of participation in a cartel, standards
are set for attendance at industry gatherings, and inappropriate contact and information exchange with competitors are prohibited.
Furthermore, across-the-board price revisions for products sold in Japan require submission to our Market Compliance Committee
which includes the Executive Officer for Compliance among its members, confirmation of the reason for the price revision, andconfirmation that there is no violation of antimonopoly law prior to implementation.

Compliance with export-related laws
The Asahi Kasei Group thoroughly complies with foreign exchange and other export-related laws and regulations in accordancewith our Export Control Regulation. All exported products are subject to screening for applicability of export restrictions andexamination of customers. In the case that a permit is required, application to the Ministry of Economy, Trade, and Industry is madeafter obtaining internal company approval. To ensure awareness and understanding of the requirements of relevant laws,
regulations, and internal company rules, periodic training sessions are held and the related departments undergo paper and onsite
audits annually.

Ethical Considerations in Pharmaceuticals and Medical Device Development
Asahi Kasei Pharma, which engages in the research and development of pharmaceuticals, and Asahi Kasei Medical, which engages
in the development of medical devices, ensure ethical considerations and full compliance with laws and guidelines on animal
testing. See below for further details.
Asahi Kasei Pharma
Asahi Kasei Medical

184

Asahi Kasei Group Sustainability Report 2023

Risk Management
PolicyThe Asahi Kasei Group has established and is working to reinforce basic guidelines for risk management and emergency responsein the Group's business operations in accordance with the Asahi Kasei Group Basic Regulation for Risk Management & Compliance.

Strengthening risk management
While we are accelerating our global expansion in a variety of businesses in three sectors, the business environment surrounding
the Asahi Kasei Group has been drastically changing due to changes in values since the pandemic, friction between the UnitedStates and China, and growing tensions in international relations such as the situation between Russia and Ukraine. New risks andincreasingly complex risks are having a greater impact on the Asahi Kasei Group than ever before. As such, we need to visualize therisks across group-wide to strengthen countermeasures. Therefore, we are positioning fiscal 2022 as the first step in strengthening
risk management and are promoting specific measures.

Risk management system and roles of related parties
Under the supervision of the Board of Directors, the Executive Officer for Risk Management and Compliance assists the President,
who is responsible for overall risk management. Under the direction of the President, said Executive Officer ascertains overall risk
management and gives instruction and support to each department head (Executive Officers responsible for administrative
functions, heads of business units, etc.) regarding risk response measures in each organization. Additionally, a Risk Management
Team has been set up under the Executive Officer for Risk Management and Compliance to monitor the activities of eachorganization within the company and provide support for specific risk countermeasures. The Risk Management & Compliance
Committee, chaired by the President, ensures that all organizational leaders are informed of management-level decisions andinstructions regarding risk management.

185

Asahi Kasei Group Sustainability Report 2023

Strengthening the PDCA cycle for risk management
With autonomous risk management by every organization as the basis, the Asahi Kasei Group is working to strengthen its PDCA
cycle. Within this, Asahi Kasei has set Material Group Risks as those particularly important risks that the Board of Directors
regularly supervises on in terms of monitoring risk response. The Group has also defined Material Business Risks as those that mayhinder achievement of the annual management plan in each business unit.

Risk management PDCA cycle (Material Group Risks and Material Business Risks)

Risk Analysis

186

Asahi Kasei Group Sustainability Report 2023

Risk management system based on external standards
To ensure transparency in its risk management system and reporting, the Group references external standards that include
frameworks and standards such as the GRI, the Ministry of the Environment “Environmental Reporting Guidelines (2018),” SASB
Standards, ISO 26000, and others.

Guidelines consulted

Handling ESG risks
In light of environmental issues such as climate change as well as changes in industrial structure, decreases in the working
population, and so on, it is possible that new ESG-related risks will become apparent from social changes related to sustainability.
We address these ESG risks as a vital management issue. In particular, given that our businesses rely heavily on energy, addressing
climate change is essential, and we consider it to present both risks and opportunities in terms of management.
Based on this mindset, we conducted an analysis of the risks and opportunities present in the various scenarios that could result
from climate change based on their level of severity in keeping with the recommendations of the TCFD (Task Force on Climaterelated Financial Disclosures) and devised countermeasures.
We are working to make management as well as our business and environmental divisions aware of these results and takeappropriate action.

Disclosure based on TCFD Recommendations

Information Security
Recognizing the importance of countermeasures to protect against information security risks, we established the Asahi Kasei Group
Information Security Policy and aim to ensure and further improve information security.

Asahi Kasei Group Information Security Policy

As ensuring information security is an important management responsibility, the Asahi Kasei Group declares that it
faithfully applies its established information security policy.

1. Compliance
We comply with laws and internal regulations concerning information security.
2. System Establishment
We have an established system to safeguard information security throughout the organization.
3. Implementation of Countermeasures
We implement appropriate information security countermeasures corresponding to our information assets to prevent
information security incidents. In the event that an incident occurs, we respond swiftly and appropriately, strive tominimize any damage, and endeavor to prevent any recurrence.
4. Education of Employees
We provide information security training to all employees to ensure full awareness of the importance of information
security and the proper use of information assets.
187

Asahi Kasei Group Sustainability Report 2023

5. Continuous Improvement
We continuously assess our efforts for information security, and apply improvements as necessary.
Established December 1, 2016

Protection of Personal Information
Asahi Kasei Group is committed to the proper handling of personal information we obtain and use, in accordance with the Asahi
Kasei Group Regulation for Management of Personal Information. An information security handbook which describes our rules forhandling information is distributed to all employees, and education is performed via e-learning. Furthermore, we made necessarychanges to the Asahi Kasei Group Regulation for Management of Personal Information to comply with Japan's revised Personal
Information Protection Act that took effect in May 2017.

Privacy Policy

Response to the EU GDPR
To comply with the General Data Protection Regulations (GDPR) that took effect in the EU in May 2018, we have newly formulated
the Asahi Kasei Group Regulation for Management of Personal Information and established the necessary standards and systems.

Protection of intellectual property
The Asahi Kasei Group implements strict measures to prevent unauthorized or unintentional outflow of technological informationand know-how in accordance with its basic policy and management standards for prevention of technology outflow. The Asahi
Kasei Group also applies internal guidelines summarizing related precautions to take when entering business overseas as well asprocedures to ensure the preservation of prior-use rights overseas. The company's internal magazine is used to raise further
awareness among employees, and workshops are held for training and education regarding protection of intellectual property.
For more information about our intellectual property, please refer to the Asahi Kasei Group Intellectual Property Report.

Asahi Kasei Group Intellectual Property Report

Crisis response system
Due to accidents, incidents, or problems, if Asahi Kasei Group operations are significantly damaged or would cause serious adverse
effects on the general public, we have a system to establish a group emergency response headquarters which works with therelevant divisions and departments to ensure that the proper response is taken.
In fiscal 2017, we established the Asahi Kasei Group Emergency Response Regulation which stipulates basic policy when an
emergency occurs, standards to institute an Emergency Response Headquarters, and the functions thereof.

188

Asahi Kasei Group Sustainability Report 2023

Tax Policy
Asahi Kasei Group Tax Policy
The Asahi Kasei Group endeavors to thoroughly comply with the laws and regulations of each country, and to prepare andappropriately apply internal company rules, based on the Asahi Kasei Group Code of Conduct.
In terms of tax, the Asahi Kasei Group also complies with the tax laws of each country in which it operates and makes appropriate
tax payments in accordance with the laws by performing tax treatment based on internal company rules.
In addition, in order to maximize free cash flow, the Asahi Kasei Group makes its best effort to minimize tax risks, implement
appropriate tax planning strategies, and make use of any available tax incentives. As a result, the Asahi Kasei Group aims at the
maximization of shareholders' value.

1．Tax Compliance
The Asahi Kasei Group complies with the tax laws and regulations of each country in which it operates, as well as taxes guidelines
published by the OECD. In addition, the Asahi Kasei Group ensures that each group company files tax returns and pays taxes within
the due dates stipulated in each country.

2．Tax GovernanceIn the Asahi Kasei Group Code of Conduct that is obligatory for all officers and employees, the Asahi Kasei Group establishes thateach group company understands the tax laws and performs proper and lawful tax treatment based on such laws, regulations, andinternal company rules. Moreover, based on the Asahi Kasei Group Accounting Regulations, each group company is required todevelop practical management of tax governance and appropriately report on their tax situation.

3．Managing Tax Risk
The Asahi Kasei Group performs tax treatment based on the tax laws, regulations, and internal company rules. However, the Asahi
Kasei Group realizes that, in some cases, a difference of opinion with a tax authority may arise. If this is the case, the Asahi Kasei
Group endeavors to mitigate tax risks by seeking the advice of qualified external tax advisors and consulting with the tax authorities
in advance as appropriate.

4．Tax Planning
The Asahi Kasei Group realizes that it is important to undertake effective tax planning for commercial purposes. The Asahi Kasei
Group implements tax planning conducive to cash flow in accordance with the legislative intent underlying the tax laws andregulations, and does not use tax havens for the purpose of tax avoidance. In case that any income is subject to CFC rules inaccordance with the tax laws and regulations of each country as a result of carrying out plans for commercial purposes, the Asahi
Kasei Group files a tax return and pays tax appropriately.

189

Asahi Kasei Group Sustainability Report 2023

5．Transfer Pricing
The Asahi Kasei Group realizes that prices in executing international related party transactions are easily arbitrarily determined andit likely results in a tax risk in each country. In order to mitigate any risk associated with arbitrary transfer pricing methodologies,
the Asahi Kasei Group establishes prices for international transactions among our companies that are in accordance with the arm's
length principle. Also, the Asahi Kasei Group prepares transfer pricing documentation in each country in which it operates based on
the transfer pricing documentation requirements.

6．Tax Incentives
In each country in which the Asahi Kasei Group operates, various kinds of tax incentives have been introduced based on
government policy. The Asahi Kasei Group continually studies the applicable laws and endeavors to enhance tax efficiency bymaking use of any available tax incentives to the extent that they fall within the scope of commercial purposes.

7．Relationship with Tax Authorities
The Asahi Kasei Group endeavors to build and sustain mutually respectful relationships with the tax authorities by responding toinquiries in good faith. The Asahi Kasei Group endeavors to address items suggested in tax audits appropriately.

Income Taxes
Fiscal 2022
Income taxes paid*1

Japan

Overseas*2¥83.2 billion¥27.3 billion*1 Based on the consolidated statements of cash flows of Asahi Kasei Corp. for the fiscal year ended March 2023
*2 Including Japanese income taxes paid by Japanese subsidiaries of certain overseas subsidiaries

190

Total
¥110.6 billion

Asahi Kasei Group Sustainability Report 2023

ESG Data
Environment

Society

Governance

The Asahi Kasei Group publishes cost and performance data concerning its environmental activities.

Investment for Environmental Protection and Safety
Our Group has invested the necessary management resources in ESH & QA activities.
Investments in environmental protection and safety-related facilities up to fiscal 2022 and in fiscal 2022 are shown below.

Investment in environmental preservation and safety modification

FY2018FY2019FY2020

FY2021(¥ billion)
FY2022

Environmental protection

2.18

4.14

3.88

2.8

2.65

Safety

6.71

3.95

6.63

6.43

4.85

Total

8.89

8.09

10.52

9.23

7.5

191

Asahi Kasei Group Sustainability Report 2023

Investments in environmental protectionrelated facilities (fiscal 2022)

Investments in safety-related facilities (fiscal
2022)

Environmental Accounting
We classify the cost of our measures for environmental protection in accordance with cost classification standards promulgated by
the Ministry of the Environment.

Environmental accounting by fiscal year(¥ million)

Cost classification
1

FY2018FY2019FY2020
FY2021
FY2022
Investment Expense Investment Expense Investment Expense Investment Expense Investment Expense

Combined operation area

1,942

11,183

3,905

10,089

3,628

7,666

2,755

9,914

2,098

10,080Pollution prevention

944

7,705

2,198

6,874

2,241

5,186

1,399

6,923

1,017

6,785

Global environmental
protection

807

1,230

1,221

773

1,246

689

1,069

955

945

963

Resource circulation

190

2,248

485

2,442

142

1,792

287

2,036

136

2,332

2

Upstream anddownstream

0

140

0

115

0

102

0

104

0

167

3

Management activities

62

636

43

2,394

25

654

19

1,294

136

1,953

4

R&D

119

2,787

192

8,431

228

2,185

198

1,793

374

2,628

5

Community outreach

0

27

0

24

0

18

0

17

0

25

6

Environmental damage

45

1,128

0

206

3

196

4

199

0

542

2,169

15,901

4,139

21,2593,883

10,821

2,977

13,3202,608

15,394

Total

192

Asahi Kasei Group Sustainability Report 2023

Environmental Management
Number and percentage of sites with environmental management system certification (FY2022)
Certification

Number of certified sites
Japan

ISO14001

Percentage of certified sites (%)

Overseas
22

37

79

Climate change
Eco-efficiency (JEPIX*) performance* JEPIX is an abbreviation for the "Japan Environmental Policy Index", and it

was developed by teams under the leadership of Professor Nobuyuki
Miyazaki of the International Christian University at the Japan Science andTechnology Agency and Sustainable Management Forum Japan.
Environmental performance data are converted to an environmental
impact point (EIP) scale and aggregated to determine total environmental
impact.
Eco-efficiency is calculated as follows.
Eco-efficiency = value added (economic index) / JEPIX Eco-Points
Eight aspects of environmental impact (including chemical releases,
greenhouse gas emissions, landfill wastes, and COD load) are evaluated,and net sales are used for value added. A revised accounting policy isapplied to net sales from fiscal 2011.

JEPIX-method eco-efficiency
FY2001FY2018FY2019FY2020

FY2021

FY2022

Total environmental impact (million EIP)

50,7239,770

10,562

9,410

10,337

10,562

Net sales (¥ million)

1,195,393 2,170,403 2,151,646 2,106,051 2,461,317 2,726,485

Eco-efficiency (¥/EIP)

23.6

222.1

193

203.7

223.8

238.1

258.1

Asahi Kasei Group Sustainability Report 2023

Greenhouse gas emissions in Japan by fiscal year

(million tons CO2 equivalent)
Item

Index
set at Baseline
Kyoto
year
Protocol （2005）（1990）FY2018FY2019FY2020

FY2021

FY2022

Carbon dioxide

5.06

4.96

2.89

2.61

2.51

2.75

2.51

Nitrous oxide

6.82

0.76

0.09

0.13

0.29

0.09

0.08

Methane

0.00

0.01

0.00

0.00

0.00

0.00

0.00

HFCs

0.16

0.02

0.04

0.04

0.03

0.03

0.03

PFCs

0.01

0.14

0.11

0.12

0.06

0.01

0.01

Sulfur hexafluoride

0.00

0.04

0.01

0.01

0.01

0.00

0.00

Nitrogen trifluoride

-

-

0.00

0.00

0.00

0.00

0.00

Total

12.06

5.92

3.13

2.91

2.91

2.87

2.62

Notes
・ Calculation standards for greenhouse gas emissions:
For greenhouse gases covered by the Act on Rationalizing Energy Use and the Act on Promotion of Global Warming Countermeasures, calculations
are in accordance with the methods stipulated by these laws. For gases not covered by either law, calculation methods are based on considerations
such as chemical reactions.
・ CO2 emissions from generation of electricity and steam sold to other companies are excluded from data for the baseline year but included inannual data from fiscal 2013.
・ We have used 'basic' CO2 emission factors for electricity purchased in Japan until FY2019, but we have opted to use 'adjustedʼCO2 emission factors
from fiscal 2020 onwards. The impact of this change on CO2 emissions is minor.

Overseas greenhouse gas emissions by fiscal year
FY2018CO2 emissions

1.03

FY20191.08

FY20201.00(million tons CO2 equivalent)
FY2021
FY2022
1.16

1.05

Note
・ Calculation standards for greenhouse gas emissions:
Overseas greenhouse gas emissions are calculated, in principle, based on the provisions given by the Act on the Rational Use of Energy and the Act
on Promotion of Global Warming Countermeasures, and CO2 emissions from the burning of by-product gases are mainly calculated by materialbalance. Until fiscal 2020, CO2 emissions associated with purchased electricity were calculated using the latest country-specific emission factors
shown in the International Energy Agency's (IEA) Emissions Factors. However, from fiscal 2021, in order to aggregate GHG emissions with values
closer to actual situations, we have calculated emissions with the available emission factors in the following order of priority: 1) emission factors ofprocurement sources, 2) values set by national governments, and 3) IEA country-specific emission factors.
194

Asahi Kasei Group Sustainability Report 2023

FY2022 global greenhouse gas emissions by segment
Item

Material

Total

Homes

3.41

(million tons CO2 equivalent)
Other
Total

Health Care

0.10

0.15

0.00

3.67

Scope 3 emissions by fiscal year
FY2018FY2019(million tons CO2 equivalent)
FY2021
FY2022

FY2020

1

Purchased products
and serviced

4.74

4.43

4.62

4.72

4.78

2

Capital goods

0.29

0.32

0.39

0.45

0.44

3

Fuel and energyrelated activities(not included in
Scope 1 or Scope 2)

0.21

0.24

0.78

0.77

0.86

4

Upstreamtransportation anddistribution

0.30

0.27

0.25

0.24

0.24

5

Waste generated inoperations

0.00

0.00

0.00

0.07

0.07

6

Business travel

0.03

0.03

0.00

0.00

0.02

7

Employeecommuting

0.03

0.03

0.03

0.03

0.03

8

Upstream leased
assets

0.00

0.00

0.00

0.00

0.00

9

Downstream
transportation anddistribution

-

-

-

-

-

10 Processing of soldproducts

-

-

-

-

-

11 Use of sold products

0.92

0.96

1.34

1.92

1.60

12 End-of-life
treatment of soldproducts

4.98

4.70

5.87

5.95

5.98

195

Asahi Kasei Group Sustainability Report 2023

FY2018FY2019FY2020

FY2021

FY202213 Downstream leased
assets

-

-

-

-

-

14 Franchise

-

-

-

-

-

15 Investment

-

-

-

-

-

Total

11.50

10.98

13.28

14.15

14.00

Notes
• Calculation method for Scope 3:
Our Scope 3 GHG emissions are calculated using the Corporate Value Chain (Scope 3) Accounting and Reporting Standard and its technicalguidance issued by the Greenhouse Gas Protocol. For the greenhouse gas emission factors, we used data available in the Carbon Footprint
Communication Program database prepared by the Japan Environmental Management Association for Industry and the Embodied Energy andEmission Intensity Data for Japan Using Input-Output Tables (3EID): Inventory Data for LCA prepared by the National Institute for Environmental
Studies, Japan until fiscal 2019.
Since fiscal 2020, we have referred to the Embodied Energy and Emission Intensity Data for Japan Using Input-Output Tables (3EID) (2015):
Inventory Data for LCA prepared by the National Institute for Environmental Studies, Japan, IDEA v2.3 by the National Institute of Advanced
Industrial Science and Technology, and the Emissions Unit Value Database Ver3.3 for Accounting of Greenhouse Gas Emissions, etc., by
Organizations Throughout the Supply Chain issued by the Ministry of the Environment, etc.
• Calculation method for purchased products and services:
Items with emissions equal to or greater than 4,000 tons of CO2-equivalent were included. The emissions were calculated by multiplying theamounts, either in physical or monetary units, of products and services purchased from outside the Asahi Kasei Group by Asahi Kasei Corp., Asahi
Kasei Homes, Asahi Kasei Construction Materials, Asahi Kasei Microdevices, and Asahi Kasei Medical by the respective emission factor for eachtype of raw material or service.
• Calculation method for waste generated in operations:
From fiscal 2021, the activity volume was changed from final disposal volume to effluent volume.
• Calculation method for use of sold products:
Until fiscal 2020, the calculation was based on the calculation standards set by Asahi Kasei Homes and using the emissions intensity from Housing
Tech. R&D Labs’ report. The period covered by the calculation was calculated based on the number of Hebel houses (detached houses andapartment buildings) delivered in each fiscal year (before fiscal 2020, based on the number of houses delivered; in fiscal 2020, based on the total
floor area of Hebel houses delivered). The calculation period was set to 60 years of useful life, and the CO2 emissions reduction effect based on theactual installation of energy-saving equipment, which differs in each case, was deducted from the calculation.
From fiscal 2021, the following calculations were made using the Building Research Institute's "Energy Consumption Performance Calculation
Program (Residential Version)" for house for which a certificate of confirmation was issued during the fiscal year.
∑ (annual energy use by energy type per household x emission factor by energy type) x useful life (60 years)
Emission factor by energy type (FY2022)
Emission factor ： Electricity 0.434 (t-CO2/thousand kWh), City gas 0.05 (t-CO2/GJ), Kerosene 0.068 (t-CO2/GJ)• Calculation method for end-of-life treatment of sold products
For Asahi Kasei, Asahi Kasei Construction Materials, Asahi Kasei Microdevices, and Asahi Kasei Medical, emissions are calculated by multiplying
the weight of products purchased each fiscal year by the CO2 emission factor at the time of disposal for each product.
For Asahi Kasei Homes, emissions are calculated by multiplying the number of Hebel Haus units delivered each fiscal year by the CO2 emission
factor per building.
• Scope 3 category 1, 3, 4 and 12 emissions for fiscal year 2022 increased by 0.22, 0.14, 0.01 and 0.28 million tons CO2e-eq, respectively, from fiscal
year 2021, as a result of an addition of goods in scope.

196

Asahi Kasei Group Sustainability Report 2023

CO2 emissions from product shipment (FY2022)
Material
Shipment volume(million ton-km)
CO2 emissions（tons CO2）

Homes

Health Care

Other

Total

734.78306.933.22

0.00

1,044.93

43,19833,350471

077,019Proportion of low-pollution vehicles*
FY2018Used onpublic roads

Used within
plant grounds

Total

Proportion of
low-pollution
vehiclesLowpollution
vehiclesOther
Subtotal
Lowpollution
vehiclesOther
Subtotal
Lowpollution
vehicles
Other
Total
vehiclesUsed onpublicroads
Used
withinplant
grounds
Total

FY2019FY2020(Number of vehicles)
FY2022

FY2021

1,252

1,295

1,415

1,506

1,561

74
1,326
492

86
1,381
451

40
1,455
726

44
1,550
764

62
1,623
527

227
719
1,744

208
659
1,746

66
792
2,141

73
837
2,270

149
676
2,088

301
2,045

294
2,040

106
2,247

117
2,387

211
2,299

94

94

97

97

96

68

68

92

91

78

85

86

95

95

91

* Hybrid-electric vehicles, low-emission vehicles, fuel-efficient vehicles, and all-electric vehicles

197

Asahi Kasei Group Sustainability Report 2023

Pollution Prevention and Resource Circulation / Water Resource Preservation
Asahi Kasei Group disposal of industrial waste(thousand tons)
Final
Coveragedisposal(%)

Fiscalyear

CategoryWastegenerated

Material
recycling

Chemicalrecycling

Heat
recoveryVolumereduction

20221

Japan
(of whichwaste
plastic)2
Overseas
Total
Percentage(%)
Japan3
Overseas
Total
Percentage(%)
Japan3
Overseas
Total
Percentage(%)
Japan3
Overseas
Total
Percentage
(%)

555.7
(21.3)

430.0
(9.2)

4.9
(0.9)

104.9
(10.8)

3.2
(0.1)

12.6
(0.3)

－

45.2
600.9
100.0

16.0
446.0
74.2

0.8
5.7
1.0

3.5
108.4
18.0

2.9
6.1
1.0

22.0
34.7
5.8

－
－
61

530.4
47.1
577.5
100.0

385.3
15.6
400.8
69.4

8.7
0.4
9.0
1.6

124.5
2.0
126.4
21.9

2.6
4.8
7.3
1.3

9.5
24.4
33.9
5.9

－
－
－
62

541.9
29.1
571.0
100.0

398.3
8.4
406.6
71.2

8.5
0.5
9.1
1.6

122.2
1.3
123.6
21.6

2.4
3.8
6.3
1.1

10.5
15.0
25.4
4.5

－
－
－
－

617.1
37.5
654.6
100.0

414.5
11.5
426.0
65.1

2.0
0.4
2.4
0.4

181.6
1.5
183.1
28.0

6.0
5.0
11.0
1.7

12.9
19.1
32.0
4.9

－
－
－
－

2021

2020

2019

1 The definitions of "material recycling" and "heat recovery" were changed in FY2022.
2 Disposal of waste plastics based on the Plastic Resource Circulation Act
3 Changed to include industrial waste from the domestic homes business in FY2022; figures for previous years have been revised accordingly198

Asahi Kasei Group Sustainability Report 2023

Emissions of specially controlled industrial waste*
Fiscal year

2020

Specially controlled industrial waste(thousand tons)
2022

2021

34.7

23.1

18.6

* Specially controlled industrial waste is industrial waste that is explosive, toxic, infectious, or has other characteristics that may be hazardous tohuman health or the living environment

AAC trimmings recycled by Asahi Kasei Construction Materials（t）
FY2018Hebel™ panels
Cement materials
Lightweight artificial soil
Total

FY2019

360
970
0
1,330

FY2020
354
368
0
722

FY2021
350
259
0
609

FY2022
217
194
0
411

325
202
0
527

Maintenance and management status of waste treatment facilities*
Facility
FY2020Kawasaki Works Incineration 2020 Results（409.7KB）
Plant (W-1000)
Kawasaki Works Incineration 2020 Results（395.0KB）
Plant (N-1000)

FY20212021 Results（409.6KB）
2021 Results（395.0KB）

FY20222022 Results（409.2KB）
2022 Results（395.0KB）

FY20232023 Results（232.8KB）
2023 Results（230.7KB）* Based on the Act on Waste Management and Public Cleansing, we have posted maintenance and management records for waste treatment facilities

owned by our company that are required to publish maintenance and management information.

Release and transfer of PRTR-specified substances by fiscal year
Release to air
Release to water
Release to soil
Total release
Reduction rate (%)
Transfer

FY2000FY2018FY2019FY2020

FY2021（t）
FY2022

4,720
170
0
4,890
－
2,100

520
50
0
570
88
2,500

290
60
0
350
93
2,400

250
50
0
300
94
2,700

230
60
0
290
94
2,500

400
40
0
440
91
2,600

199

Asahi Kasei Group Sustainability Report 2023

VOC* air emissions

Volume (tons)
Reduction rate (%)*

FY2000(baseline
year)

FY2018FY2019FY2020

FY2021

FY2022

10,400
－

1,400
87

1,100
89

920
91

1,000
90

1,200
89

VOC： Volatile organic compound. Although the term generally applies to any organic compound which is in gaseous state at the time of release,regulations for the control of their release exclude methane and some fluorocarbons which do not form oxidants. However, methane and somefluorocarbons are excluded from VOC regulations on the grounds that they do not form oxidants.

FY2022 release and transfer of PRTR-specified substances（t）Company

Sites

Asahi
Kasei
Corp.

Nobeoka

Asahi
Kasei
MedicalReleaseto airSubstance

1,1-Dichloroethylene(vinylidene chloride)
Dichloromethane (methylene
chloride)
Chloroethylene (vinyl chloride)
Water-soluble copper salts(except complex salts)Moriyama Dichloromethane (methylene
chloride)N,N-dimethylacetamide
Mizushima n-Hexane
Molybdenum and its
compounds
Vinyl acetate
Kawasaki n-Hexane
Nobeoka N,N-dimethylacetamide

Effluent Release Releases
water
to soil of VOCs Transfer
Subtotal Subtotal Total

23

0

0

23

30

13

0

0

13

0

6
0

0
9

0
0

6
9

42
0

17

0

0

17

0

5
219
0

0
0
12

0
0
0

5
219
12

207
6
0

10
59
2

0
0
5

0
0
0

10
59
7

8
9
159

Notes
• Substances whose total emissions into the air, water, and soil at a given site are at least five tons/year are listed along with their emission
amounts, etc.
• Rounded to the nearest ton.
200

Asahi Kasei Group Sustainability Report 2023

Asahi Kasei Group fluorocarbon leakage volume
Core Operating Companies / Affiliated Companies

FY2021

Asahi Kasei Corp.
Asahi Kasei Medical Co., Ltd.
Asahi Kasei Pharma Corp.
Asahi Kasei Homes Corp.
Asahi Kasei Construction Materials Corp.
Asahi Kasei Microdevices Corp.
Other affiliated companies
Total

1,265.3
244.4
58
3.3
1.2
0
152.4
1,724.5(t-CO2)
FY2022
949.9
116.7
99.3
40.6
14.2
0
106.1
1,326.9

Release of air and water pollutants by fiscal year
Item

Unit

FY2018FY2019SOx1
NOx2
Soot anddust3
Effluence
COD4
NP
Coverage

Tons
Tons
Tons

6,000
3,300
140

6,300
3,400
90

5,200
3,600
110

6,800
3,500
140

3,700
2,600
90

Million m3
Tons
Tons
Tons
％

221
880
7,000
20
-

216
890
6,500
20
-

204
850
4,900
20
-

202
850
5,900
20
76

200
760
4,500
20
75

201

FY2020

FY2021

FY2022Asahi Kasei Group Sustainability Report 2023

Air emissions by site（t/y）
FY2020Site
Nobeoka
MizushimaMoriyama
Fuji
Ohito
KawasakiSuzukaOther
Total

FY2021

SOx

NOx

Soot
and
dust

4,800
180
0
0
2
1
0
220
5,200

2,300
1,100
40
3
20
70
20
50
3,600

30
70
2
0
0
4
0
5
110

SOx
6,300
270
0
0
2
3
0
200
6,800

FY2022

NOx

Soot
and
dust

SOx

NOx

Soot
and
dust

2,200
960
130
2
6
100
30
50
3,500

80
50
4
0
0
6
0
5
140

3,400
210
0
0
4
2
0
90
3,700

1,400
1,000
90
3
5
100
20
30
2,600

30
50
3
0
0
5
0
3
90

1 Sulfur oxides (SOx) are formed when crude oil, fuel oil, or coal containing sulfur are used as fuel. Sulfur dioxide (SO2) is most common, but some

sulfur trioxide (SO3) also forms. The term SOx is inclusive of both of these.
2 Nitrogen oxides (NOx) are formed in nature and during combustion at thermal power plants, factory boilers, internal combustion engines, andincinerators. The term NOx is inclusive of both nitric oxide (NO) and nitrogen dioxide (NO2).
3 Soot and dust are fine particles formed in the combustion of fuel and other materials.
4 Chemical oxygen demand is an indicator of water pollution by organic substances. COD is expressed in terms of the amount of oxygen that can be
consumed by an oxidizer to chemically oxidize the organic substances contained in the water.

Water usage and effluence
Item
Japan
Overseas
Japan andoverseas

FY2018
Usage
Effluence
Usage
Effluence
Usage
Effluence

FY2019
287
221
8
8
295
229

FY2020
246
216
11
10
256
226

Note: Due to a review in aggregation, figures for fiscal 2021 and earlier have been revised.

202（Million m3）
FY2022

FY2021
235
204
9
9
244
212

245
202
9
9
254
212

236
200
9
6
245
206

Asahi Kasei Group Sustainability Report 2023

Water usage and sources by fiscal year in Japan
FY2018
Total
Municipal water
Ground waterIndustrial water

FY2019
287
2
22
263

FY2020
246
2
21
223

（Million m3）
FY2022

FY2021
235
2
20
213

245
2
20
223

236
2
18
216

Note: Due to a review in aggregation, figures for fiscal 2021 and earlier have been revised.

Water emissions in Japan by site
(Tons, except eﬄuence: million m3)
Site

FY2020COD

N

Nobeoka

650

4,600

Mizushima

50

Moriyama

FY2021P

Eﬄuence

COD

N

5

132

670

5,600

190

3

34

50

7

8

1

9

Fuji

20

80

6

Ohito

0

1

Kawasaki90

SuzukaFY2022Eﬄuence

COD

N

6

133

600

4,200

4

125

190

3

30

50

160

3

32

8

9

2

10

6

8

1

9

12

20

80

6

11

20

90

8

14

0

0

0

1

0

0

0

1

0

0

30

1

10

70

20

1

11

60

30

1

13

5

2

0

1

5

1

0

2

6

2

0

2

Other

30

3

0

5

30

3

0

5

20

3

0

5

Total

850

4,900

20

204

850

5,900

20

202

760

4,500

20

200

203

P

P

EﬄuenceAsahi Kasei Group Sustainability Report 2023

ESG Data
Environment

Society

Governance

Number of Group Employees
Number of Group
Employees

Scope

FY2018FY2019FY2020

FY2021

FY2022Asahi Kasei
Group
consolidated(global)39,28340,68944,49746,751

48,897―――33,26534,630―――13,443

14,254

―

―

―

43

13

―

―

―

28.8

29.1

FY2018FY2019FY2020

FY2021

FY2022

16,966

17,293

17,417

17,413

17,267Male

14,275

14,511

14,593

14,555

14,352

Female

2,691

2,782

2,824

2,858

2,915

2,548

2,576

3,360

2,875

3,133

Male

1,870

1,967

2,382

1,966

2,232

Female

678

609

978

909

901

15.0

14.9

19.3

16.5

18.1

Total
Male
FemaleGenderunspecified

Female employee rate (%)
Note: According to individuals' self-identification.

Number of Employees by Status
Scope
Permanent

Non-permanent

Total

Total

Note 1

Note 1

Non-permanent rate (%)

204Asahi Kasei Group Sustainability Report 2023

Persons with disabilities
Scope

FY2018FY2019FY2020

FY2021

FY2022All Groupcompanies
applicable asSpecialSubsidiaries

574

609

623

639

652

2.23

2.31

2.38

2.35

2.37

2.2

2.2

2.3

2.3

2.3

FY2018FY2019FY2020

FY2021

FY2022

565

614

586

460

425

(male)

427

486

466

369

340

(female)

138

128

120

91

85

Mid-career total

487

410

298

345

378

(male)

468

349

276

297

303

(female)

19

61

22

48

75

Mid-career hire rate* (%)

46.3

40.0

33.7

42.9

47.1

Number of resignations

232

292

283

328

364

Employee turnover rate (%)

1.36

1.66

1.58

1.83

2.04

Number of employees with disabilities[Scope Note 2]
Employment rate (%) [Scope Note 2]
Statutory employment rate (%) [Scope
Note 2]

Employment/Retention
Scope
Number of newhires

New graduate
total

Note 1* As of Sep. 30, 2022

205

Asahi Kasei Group Sustainability Report 2023

Working Hours / Salary
Scope

FY2018FY2019FY2020

FY2021

FY20222,008.1

1,948.7

1,973.9

1,992.2

1,966.0

Overtime hours worked

292.5

247.3

260.9

286.6

270.4

Average paid vacation days taken

14.48

15.66

14.29

14.76

16.26

Average rate of paid vacation (%)

75.1

82.3

75.3

77.6

85.4

Total hours worked

Average annual salary (¥)

Note 1

Asahi Kasei
Corp.

7,871,666 7,691,021 7,691,021 7,810,513 7,605,539

Education/Training
Scope

FY2018FY2019FY2020

FY2021

FY2022――

382,632

290,931333,540

Average time per employee

―

―

21.5

22.3

25.7

Total cost of training conducted inJapan (thousand yen)―

Annual education and training costs(thousand yen)*―

Total training hours

Note 1

3,409,515 2,129,282 2,806,147 3,471,596
205

126

166

198

* Due to a review in aggregation, we have revised the amount for FY2021 and earlier regarding the average cost per employee for training conducted inJapan.

206

Asahi Kasei Group Sustainability Report 2023

Diversity / Work-life Balance
Scope

FY2018FY2019FY2020

FY2021

FY2022

FY2023Note 1

574

622

660

701

752

801

Number of female managers

193

212

231

257

277

309

Total number of managers

5,786

5,767

5,780

5,760

5,778

5,759

Ratio of female managers (%)

3.3

3.7

4.0

4.5

4.8

5.4
3.9

Number of female managers andsupervisors

Proportion of women working as
managers and Group Masters
(%)

―

2.3

2.8

3.4

3.7

Number of
employees taking
child care leave*

Male

392

417

433

496

538

―

Female

239

251

265

287

306

―

Number of
employees using
shortened working
hours system forchild care

Male

3

3

4

2

1

―

Female

356

350

366

322

307

―

Number of
employees using"Kids Support"
shortened working
hours system

Male

1

2

0

0

0

―

Female

92

141

123

135

154

―

Number of
employees taking
family care leave

Male

4

3

6

2

3

―

Female

5

8

4

2

5

―

Number of
employees using
shortened working
hours system forfamily care

Male

0

3

4

2

1

―

Female

1

2

2

0

2

―

* Due to a review in aggregation, the number of employees taking childcare leave for 2018 and 2021 has been revised.

207

Asahi Kasei Group Sustainability Report 2023

Gender Pay Gap
Average annual salary (¥)

FemaleMale

Difference in salary between men and women (%)

All workers

Scope

FY2022

Note 15,860,247

Permanent employees

6,520,585

Part-time / Fixed-term employees

3,459,754

All workers

8,604,480

Permanent employees

8,767,621

Part-time / Fixed-term employees

5,157,015

All workers

68

Permanent employees

74

Part-time / Fixed-term employees

67

208

Asahi Kasei Group Sustainability Report 2023

Occupational Health and Safety
Group lost time frequency rate (%)

Scope

FY2018FY2019FY2020

FY2021

FY2022

Note 3

0.41

0.44

0.21

0.38

0.19

0.008

0.074

0.006

0.133

0.009

Group severity rate (%)
Number of lostworktime injuriesGroupemployees

―

25

12

22

11

Of which, number offatalities

Group
employees

―

0

0

1

0

43.8

43.8

43.7

43.7

43.7

Percentage finding problems during
health examinations (%)

62.6

62.3

62.7

62.5

62.1

BMI

26.3

26.8

26.7

26.7

26.7

Smoking rate (%)

26.3

25.8

24.7

23.5

22.5

Number of days absent due to injury
or illness (days per person; calculated
based on reports of absence from
work)

3.2

3.5

3.1

3.4

3.9

Specific health guidance rate (%)*

25.4

34.1

35.2

46.7

―

Stress check rate (%)

96.2

98.0

96.3

93.8

92.0

High stress rate (%)

7.8

8.0

8.0

8.6

8.9

3.48

3.48

61

68.6

Average age

Note 4Work Engagement――

Workplace dialogue implementation
rate (%)――

Self-care education participation rate*(%) (implemented in 2022)

―

―

―

―

98.0

Seminar satisfaction rate*(% who responded “satisfied” or “verysatisfied” among 5 choices)(Average of office area online
seminars)

―

―

―

86.6

79.0

Total value of KSA (vitality and growthassessment) work engagement andpsychological capital

209

―

41

Asahi Kasei Group Sustainability Report 2023

* Due to a review in aggregation, the figures for 2020 and 2021 have been revised for the specific health guidance rate, the self-care education

participation rate, and the seminar satisfaction rate.

Social Contributions
Social contribution activity expenses (¥million)
Proportion of ordinary income (%)

Scope

FY2018FY2019FY2020

FY2021

FY2022Asahi Kasei
Group
consolidated(global)

1,330

1,143

2,147

1,799

1,574

0.6

0.62

2.62

0.85

1.29

Scope Notes

1 Asahi Kasei, Asahi Kasei Microdevices, Asahi Kasei Homes, Asahi Kasei Construction Materials, Asahi Kasei Pharma, and Asahi Kasei Medical
2 The rate of employment and the number of persons employed are the average figures for each fiscal year for applicable companies of the Asahi

Kasei Group. Calculations are based on total employment of 27,504.5 persons at the 22 applicable companies as of June 1, 2022. (number of persons
calculated in accordance with the Act on Employment Promotion, etc. of Persons with Disabilities)
3 Asahi Kasei Group companies in Japan as defined in the Asahi Kasei Group ESH & QA Regulations (a list of departments implementing Asahi Kasei's
ESH & QA Program can be downloaded from the following page)https://www.asahi-kasei.com/sustainability/rc/#anc-09
4 Employees of major Japanese subsidiaries in addition to companies listed in Note 1

210

Asahi Kasei Group Sustainability Report 2023

ESG Data
Environment

Society

GovernanceCorporate Governance
Scope

FY2018FY2019FY2020

FY2021

FY2022

FY2023

Asahi
Kasei
Female Corp.

6

6

6

6

6

6

0

0

0

0

0

0

Total

6

6

6

6

6

6

Independent Male
OutsideFemaleDirectors

2

2

2

2

2

2

1

1

1

1

1

2

Total

3

3

3

3

3

4

Total

9

9

9

9

9

10

Ratio of Female Members of theBoard of Directors (%)

11.1

11.1

11.1

11.1

11.1

20.0

Number Insideof
Directors
Directors

Male

Note: The number of Board of Directors meetings and committee meetings and their attendance rates are reported on the following page.

Corporate Governance211

Asahi Kasei Group Sustainability Report 2023

External evaluation
Inclusion in socially responsible investment indexes
ESG Indexes included in (as of July 2023)
FTSE4Good Index Series
FTSE Blossom Japan Index
FTSE Blossom Japan Sector Relative Index
MSCI ESG Leaders Indexes
MSCI Japan ESG Select Leaders Index
MSCI Japan Empowering Women Index (WIN)S&P/JPX Carbon Efficient Index
SOMPO Sustainability Index
Morningstar Japan ex-REIT Gender Diversity Tilt Index（GenDi J ）Asahi Kasei received AAA, the highest rating in the 2023 MSCI ESG Ratings.

212

Asahi Kasei Group Sustainability Report 2023

Rated B for CDP’s Climate Change and Water Security
Asahi Kasei was rated B in the categories of Climate Change and Water Security in the 2022 survey conductedby CDP.

Acquisition of the Highest Rank from Development Bank of Japan, Inc. (DBJ) under its
DBJ Environmentally Rated Loan Program
In August 2022, Asahi Kasei received a Development Bank of Japan loan under the DBJ Environmentally Rated
Loan Program, having obtained the system's highest rating as a "company with particularly advanced
environmental programs."

Selected as a DX Stock 2023
Asahi Kasei has been selected as a Digital Transformation Stock (DX Stock 2023), an
initiative conducted jointly by the Ministry of Economy, Trade and Industry and the Tokyo
Stock Exchange.

Recognized as White 500 (large enterprise category) in the Certified Health &Productivity Management Organization Recognition Program of 2023
The Asahi Kasei Group was recognized in March 2023 as one of the “White 500”
organizations under the Certified Health & Productivity Management Organization
Recognition Program of 2023, jointly operated by the Ministry of Economy, Trade andIndustry (METI), and Nippon Kenko Kaigi.
Health & Productivity Management > Activity evaluation and recognition by external organizations

Awarded the 69th Okochi Memorial Prize
Employees of the Asahi Kasei Group were awarded the 69th Okochi Memorial Prize in March 2023 for the development of a propane
ammoxidation catalyst and an acrylonitrile production technology that uses the catalyst.

213

Asahi Kasei Group Sustainability Report 2023

Healthcare Materials Division Receives Gold Medal in EcoVadis Sustainability
Assessment
The Healthcare Materials Division of Asahi Kasei's Life Innovation SBU received a Gold Medal rating, whichcorresponds to the top 5% of all evaluations, in a sustainability assessment conducted by EcoVadis(headquartered in France) in March 2023. The survey evaluates companies' sustainability efforts in the fourareas of the environment, labor & human rights, ethics, and sustainable procurement. We received an especiallyhigh assessment in the environment and labor & human rights.

Asahi Kasei Realty & Residence receives Grand Prize and Asahi Kasei Homes receives
Excellence Award at the 2022 Japan Resilience Awards
In April 2022 at the Japan Resilience Awards 2022 hosted by the Association for Resilience Japan, Asahi Kasei
Realty & Residence’s “Kurashiki City 3 Achi East Urban Area Redevelopment Category 1 Project” won the Grand
Prize, the highest award, and Asahi Kasei and Asahi Kasei Homes won the Excellence Award for their “Initiatives
to Reduce CO2 Emissions and Enhance Disaster Prevention Capabilities through the Creation and Maximum
Usage of Energy from the Asahi Kasei Group’s Own Power Grid.”

Received the Fujisankei Group Prize at the 30th Global Environment Award
Asahi Kasei was awarded the Fujisankei Group Prize in March 2022. The company was recognized for its efforts to reduce food loss
and GHG emissions, solve logistics issues, and make traceability more visible by developing and providing the Fresh Logi™ system,a cloud-based fresh produce logistics solution that lowers energy consumption and GHG emissions during transportation while
keeping produce fresh.
Fresh Logi

Platinum Kurumin certification markIn 2016, Asahi Kasei Corp., Asahi Kasei Microdevices Corp., Asahi Kasei Pharma Corp., Asahi Kasei Medical Co.,
Ltd., and Asahi Kasei Ability Corp. received Platinum Kurumin certification from the Ministry of Health, Labor andWelfare. Platinum Kurumin certification is awarded in recognition of proactive support for the development of thenext generation which is particularly outstanding.

214Asahi Kasei Group Sustainability Report 2023

The Minister of Economy, Trade and Industry "Intellectual Property Achievement
Awards"In April 2021, Asahi Kasei received the Minister of Economy, Trade and Industry's "Intellectual Property Achievement Award," whichis sponsored by the Japan Patent Office in the Ministry of Economy, Trade and Industry. The Intellectual Property Achievement
Award is presented annually to companies and other organizations that have made effective use of the intellectual property systemand contributed to its smooth operation and development.

Encouragement Award at the 17th LCA Japan Forum Awards
In February 2021, Asahi Kasei received the Encouragement Award at the 17th LCA Japan Forum Awards in recognition of ourenvironmental contribution product initiatives from the perspective of LCA (Life Cycle Assessment).
The Asahi Kasei Group's Environmental Contribution Products

The Biodiversity Biwako Network receives the Grand Prize at the 2021 Nature
Conversation Society of Japan AwardIn March 2021, the Biodiversity Biwako Network, which consists of eight companies, including Asahi Kasei andAsahi Kasei Homes, won the Grand Prize in the Education and Promotion Category of the 2021 Japan Nature
Conservation Awards sponsored by The Nature Conservation Society of Japan.

Received the 22nd Logistics Environment Award Special Award
In June 2021, Asahi Kasei was awarded the Special Award along with Mitsui Chemicals, Inc. and Sankyu Inc. The three companies'
collaborative efforts to reduce CO2 emissions during transportation, address the shortage of long-distance truck drivers, andimplement other "white logistics" initiatives received high evaluation.

Related information
Technology awards
View the past awards we have received related to research and development.

215

Asahi Kasei Group Sustainability Report 2023

Policy Statements
Policy
CSR-orientated Management

Group Philosophy
Corporate Governance
Asahi Kasei Group Sustainability Policy
Medium-term Management Plan

ESH & QA

ESH & QA Policy

Environmental

Asahi Kasei Group Code of Conduct
The Asahi Kasei Group's Global Environmental Policy
Quantitative indicators and targets of global environmental measures
Biodiversity Policy

SocialAsahi Kasei Group Code of Conduct
Human Rights Policy
Asahi Kasei Group Quality Policy
The Asahi Kasei Group Purchasing and Procurement Principles and Policy
Supplier Guidelines （92.2KB）
Human Resources Principles
Expansion of opportunities for women: Asahi Kasei Group Action Plan
Statement on Management for HealthGroup Health and Productivity Management Vision
Basic Policy for Safe Operation
Basic Policy for High Pressure Gas Safety
Community Fellowship Policy
Multi-Stakeholder Policies
Asahi Kasei Corp. （145.8KB）
Asahi Kasei Microdevices （140.6KB）
216

Asahi Kasei Group Sustainability Report 2023

PolicyAsahi Kasei Homes （140.7KB）
Asahi Kasei Construction Materials （141.2KB）
Asahi Kasei Pharma （141.2KB）
Asahi Kasei Medical （141.7KB）
GovernancePrinciples of Corporate Governance
Asahi Kasei Group Code of Conduct
Asahi Kasei Group Basic Policies for Prevention of Bribery （92.5KB）
Ethical Considerations in Pharmaceutical and Medical Device Development
Asahi Kasei Group Information Security Policy
Privacy Policy
Tax Policy
Basic Guidelines on Animal Care and Use (Asahi Kasei Pharma)

217

Asahi Kasei Group Sustainability Report 2023

GRI Standards Content Index
GRI content index
Statement of use

The Asahi Kasei Group has reported the information cited in this GRI content index for the period
April 1, 2022 to March 31, 2023 with reference to the GRI Standards.

GRI 1 used GRI 1

Foundation 2021

General DisclosuresDISCLOSUERNUMBERDISCLOSURE

LOCATION

GRI 2: General Disclosures 2021
The organization and its reporting practices
2-1

Organizational details

Corporate Profile

2-2

Entities included in theorganization’s sustainability report

Editorial Policy
Securities Report (Affiliated Companies)

2-3

Reporting period, frequency andcontact point

Editorial Policy

2-4

Restatements of information

Editorial Policy

2-5External assurance

Independent Review and Independent Assurance Report

2-6

Activities, value chain and otherbusiness relationships

Group Companies
CSR Procurement

2-7

Employees

ESG Data > Society
Securities Report (Employees)

2-8Workers who are not employees

ESG Data > Society > Number of Employees by Status

Activities and workers

218

Asahi Kasei Group Sustainability Report 2023

DISCLOSUERNUMBERDISCLOSURE

LOCATION

Governance
2-9

Governance structure andcomposition

Corporate GovernanceCorporate Officers
Asahi Kasei Report (Corporate Governance)

2-10

Nomination and selection of thehighest governance body

Corporate Governance

2-11

Chair of the highest governancebody

Corporate Governance

2-12

Role of the highest governancebody in overseeing themanagement of impacts

Corporate Governance
Sustainability Management > Policies and Framework

2-13

Delegation of responsibility for
managing impacts

Corporate Governance
Sustainability Management > Policies and Framework

2-14

Role of the highest governancebody in sustainability reporting

Corporate Governance
Sustainability Management > Policies and Framework

2-15

Conflicts of interest

Corporate Governance

2-16

Communication of critical concerns

Risk Management
Compliance

2-17

Collective knowledge of thehighest governance body

Sustainability Management > Policies and Framework

2-18

Evaluation of the performance ofthe highest governance body

Corporate Governance

2-19

Remuneration policies

Corporate Governance

2-20

Process to determine remuneration

Corporate Governance

2-21

Annual total compensation ratio

Corporate Governance
Asahi Kasei Report (Remuneration of Directors)

Strategy, policies and practices
2-22Management Message

Statement on sustainable
development strategy

219

Asahi Kasei Group Sustainability Report 2023

DISCLOSUERNUMBERDISCLOSURE

LOCATION

2-23

Policy commitments

Policy Statements
Sustainability Management > Initiatives and Member
Organizations We Participate In
Sustainability Management > Relationships with
Stakeholders
Human Rights
Human Resources > Employment and Labor Practices

2-24

Embedding policy commitments

Sustainability Management > Policies and Framework

2-25

Processes to remediate negative
impacts

Sustainability Management > Policies and Framework
Compliance
Human Rights

2-26

Mechanisms for seeking advice
and raising concerns

Compliance
Human Rights

2-27

Compliance with laws andregulations

Compliance
Environmental Management

2-28

Membership associations

Sustainability Management > Initiatives and Member
Organizations We Participate In

Stakeholder engagement
2-29

Approach to stakeholder
engagement

Sustainability Management > Relationships with
Stakeholders

2-30Collective bargaining agreements

Human Resources > Employment and Labor Practices

GRI 3: Material Topics 2021
Guidance to determine material topics
3-1

Process to determine material
topicsSustainability Management > Materiality and SDGs

3-2

List of material topics

Sustainability Management > Materiality and SDGs

3-3

Management of material topics

Sustainability Management > Materiality and SDGs

220

Asahi Kasei Group Sustainability Report 2023

Material Topics
DISCLOSUERNUMBERDISCLOSURE

LOCATION

Economic
GRI 201: Economic Performance 2016
201-1

Direct economic value generated
and distributed

Securities Report (Major KPIs)
ESG Data > Society > Social Contribution

201-2

Financial implications and otherrisks and opportunities due toclimate change

Environmental Management
Disclosure based on TCFD Recommendations

201-3

Defined benefit plan obligations
and other retirement plans

Securities Report (Retirement Benefits Related)

201-4

Financial assistance received fromgovernment

GRI 202: Market Presence 2016
202-1

Ratios of standard entry level wage
by gender compared to local
minimum wage

202-2

Proportion of senior management
hired from the local community

GRI 203: Indirect Economic Impacts 2016
203-1

Infrastructure investments andservices supported

203-2

Significant indirect economic
impacts

Social Activities > Local Communities
Social Activities > Social Contribution

GRI 204: Procurement Practices 2016
204-1

Proportion of spending on local
suppliers

GRI 205: Anti-corruption 2016
205-1

Operations assessed for risks
related to corruption

221

Asahi Kasei Group Sustainability Report 2023

DISCLOSUERNUMBERDISCLOSURE

LOCATION

205-2

Communication and training aboutanti-corruption policies andproceduresCompliance

205-3

Confirmed incidents of corruption
and actions taken

Compliance

GRI 206: Anti-competitive Behavior 2016
Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices

Compliance207-1

Approach to tax

Tax Policy

207-2

Tax governance, control, and risk
management

Tax Policy

207-3

Stakeholder engagement andmanagement of concerns related
to taxTax Policy

207-4

Country-by-country reporting

Tax Policy

301-1

Materials used by weight orvolumeEnvironmental Management

301-2

Recycled input materials used

Pollution Prevention and Resource Circulation

301-3

Reclaimed products and theirpackaging materials

Pollution Prevention and Resource Circulation

302-1

Energy consumption within theorganization

Environmental Management

302-2

Energy consumption outside of theorganization

302-3

Energy intensity

206-1
GRI 207: Tax 2019

Environmental
GRI 301: Materials 2016

GRI 302: Energy 2016222

Asahi Kasei Group Sustainability Report 2023

DISCLOSUERNUMBERDISCLOSURE

302-4

Reduction of energy consumption

302-5

Reductions in energy requirements
of products and services

LOCATION

Climate Change

GRI 303: Water and Effluents 2018
303-1

Interactions with water as a sharedresource

Environmental Management
Water Resource Preservation
ESG Data > Environment > Pollution Prevention andResource Circulation > Water Resource Preservation

303-2

Management of water dischargerelated impacts

Water Resource Preservation

303-3

Water withdrawal

Environmental Management
Water Resource Preservation
ESG Data > Environment > Pollution Prevention andResource Circulation > Water Resource Preservation >Water Usage and Effluence

303-4

Water discharge

Environmental Management
Water Resource Preservation
ESG Data > Environment > Pollution Prevention andResource Circulation > Water Resource Preservation >Water Usage and Effluence

303-5

Water consumption

Water Resource Preservation
ESG Data > Environment > Pollution Prevention andResource Circulation > Water Resource Preservation

GRI 304: Biodiversity 2016
304-1

Operational sites owned, leased,managed in, or adjacent to,protected areas and areas of highbiodiversity value outside
protected areas

Biodiversity

304-2

Significant impacts of activities,
products and services on
biodiversity

Biodiversity

304-3

Habitats protected or restored

Biodiversity223

Asahi Kasei Group Sustainability Report 2023

DISCLOSUERNUMBERDISCLOSURE

LOCATION

IUCN Red List species andnational conservation list species
with habitats in areas affected byoperations

Biodiversity

305-1

Direct (Scope 1) GHG emissions

Climate Change
ESG Data > Environment > Climate Change

305-2

Energy indirect (Scope 2) GHG
emissions

Climate Change
ESG Data > Environment > Climate Change

305-3

Other indirect (Scope 3) GHG
emissions

Climate Change
ESG Data > Environment > Climate Change

305-4

GHG emissions intensity

Climate Change > Disclosure based on TCFD
Recommendations

305-5

Reduction of GHG emissions

Climate Change
ESG Data > Environment > Climate Change

305-6

Emissions of ozone-depleting
substances (ODS)

Not applicable

305-7

Nitrogen oxides (NOx), sulfur
oxides (SOx), and other significant
air emissions

Pollution Prevention and Resource Circulation
ESG Data > Environment > Pollution Prevention andResource Circulation / Water Resource Preservation

306-1

Waste generation and significant
waste-related impacts

Pollution Prevention and Resource Circulation

306-2

Management of significant wasterelated impacts

Pollution Prevention and Resource Circulation

306-3

Waste generated

Pollution Prevention and Resource Circulation
ESG Data > Environment > Pollution Prevention andResource Circulation / Water Resource Preservation

306-4

Waste diverted from disposal

Not applicable306-5

Waste directed to disposal

Pollution Prevention and Resource Circulation
ESG Data > Environment > Pollution Prevention andResource Circulation / Water Resource Preservation

304-4

GRI 305: Emissions 2016

GRI 306: Waste 2020

224

Asahi Kasei Group Sustainability Report 2023

DISCLOSUERNUMBERDISCLOSURE

LOCATION

GRI 308: Supplier Environmental Assessment 2016308-1

New suppliers that were screenedusing environmental criteria

CSR Procurement

308-2

Negative environmental impacts inthe supply chain and actions taken

CSR Procurement

SocialGRI 401: Employment 2016
401-1

New employee hires and employee
turnoverHuman Resources > Employment and Labor Practices

401-2

Benefits provided to full-time
employees that are not provided totemporary or part-time employees

Human Resources > Human Resources Development andActive Engagement
Human Resources > DE&I

401-3

Parental leave

Human Resources > DE&I

GRI 402: Labor/Management Relations 2016
402-1

Minimum notice periods regarding
operational changes

GRI 403: Occupational Health and Safety 2018403-1

Occupational health and safety
management system

Occupational Health and Safety and Health Management> Occupational Health and Safety

403-2

Hazard identification, risk
assessment, and incident
investigation

Occupational Health and Safety and Health Management> Occupational Health and Safety403-3

Occupational health services

Occupational Health and Safety and Health Management> Occupational Health and Safety

403-4

Worker participation, consultation,and communication on
occupational health and safety

Occupational Health and Safety and Health Management> Occupational Health and Safety

403-5

Worker training on occupational
health and safety

Occupational Health and Safety and Health Management> Occupational Health and Safety

403-6

Promotion of worker healthOccupational Health and Safety and Health Management> Health Management
225

Asahi Kasei Group Sustainability Report 2023

DISCLOSUERNUMBERDISCLOSURE

LOCATION

403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships

Occupational Health and Safety and Health Management> Occupational Health and Safety

403-8

Workers covered by an
occupational health and safety
management system

Asahi Kasei Group's ESH & QA

403-9

Work-related injuries

Occupational Health and Safety and Health Management> Occupational Health and Safety
ESG Data > Society > Occupational Health and Safety and
Health403-10Work-related ill healthOccupational Health and Safety and Health Management> Occupational Health and Safety
ESG Data > Society > Occupational Health and Safety

GRI 404: Training and Education 2016
404-1

Average hours of training per year
per employee

Human Resources > Human Resources Development andActive Engagement
ESG Data > Society > Education/Training

404-2

Programs for upgrading employee
skills and transition assistanceprograms

Human Resources > Employment and Labor Practices
Human Resources > Human Resources Development andActive Engagement

404-3

Percentage of employees receiving
regular performance and careerdevelopment reviews

GRI 405: Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies andemployees

Corporate Governance
Human Resources > DE&I

405-2

Ratio of basic salary andremuneration of women to men

ESG Data > Society > Gender Pay Gap

GRI 406: Non-discrimination 2016
406-1

Compliance

Incidents of discrimination andcorrective actions taken

226

Asahi Kasei Group Sustainability Report 2023

DISCLOSUERNUMBERDISCLOSURE

LOCATIONGRI 407: Freedom of Association and Collective Bargaining 2016
407-1

CSR Procurement

Operations and suppliers in which
the right to freedom of associationand collective bargaining may be atrisk

GRI 408: Child Labor 2016408-1

Human Rights
CSR Procurement

Operations and suppliers at
significant risk for incidents ofchild labor

GRI 409: Forced or Compulsory Labor 2016409-1

Human Rights
CSR Procurement

Operations and suppliers at
significant risk for incidents offorced or compulsory labor

GRI 410: Security Practices 2016
410-1

Security personnel trained inhuman rights policies orprocedures

GRI 411: Rights of Indigenous Peoples 2016
411-1

Incidents of violations involving
rights of indigenous peoples

GRI 413: Local Communities 2016413-1

Operations with local community
engagement, impact assessments,
and development programs

413-2

Operations with significant actualand potential negative impacts on
local communities

Social Activities > Local Communities
Social Activities > Social Contribution

GRI 414: Supplier Social Assessment 2016414-1

New suppliers that were screenedusing social criteria

CSR Procurement

414-2

Negative social impacts in the
supply chain and actions taken

CSR Procurement

227

Asahi Kasei Group Sustainability Report 2023

DISCLOSUERNUMBERDISCLOSURE

LOCATIONGRI 415: Public Policy 2016
415-1

Compliance

Political contributions

GRI 416: Customer Health and Safety 2016
416-1

Assessment of the health andsafety impacts of product andservice categories

Quality Assurance

416-2

Incidents of non-complianceconcerning the health and safety
impacts of products and services

Not applicable

GRI 417: Marketing and Labeling 2016
417-1

Requirements for product andservice information and labeling

Quality Assurance

417-2

Incidents of non-complianceconcerning product and service
information and labeling

Not applicable

417-3

Incidents of non-complianceconcerning marketing
communications

Not applicable

GRI 418: Customer Privacy 2016
418-1

Substantiated complaints
concerning breaches of customer
privacy and losses of customer
data

Not applicable228

Asahi Kasei Group Sustainability Report 2023

SASB Content Index
This is an index of disclosed information in accordance with the ESG information disclosure framework “SASB Standards” issued by
the U.S. Sustainability Accounting Standards Board (SASB).
(The table below refers to the criteria for the Chemicals industry in the Resource Transformation sector, and shows the location of
the relevant information.)

Topic

Greenhouse
Gas Emissions

Air Quality

Code

Disclosure and Website
Link

Gross global Scope 1
emissions, percentage
covered under emissionslimiting regulations

Metrictons (t)RT-CHQuantitative CO2-e,
Percentage 110a.1(%)

Climate Change >Reducing GHG Emissions> Scope 1 and 2 GHG
emissions (Japan andOverseas)
ESG Data (Environment)

Discussion of long andshort-term strategy or plan
to manage Scope 1
emissions, emissions
reduction targets, and ananalysis of performanceagainst those targets

Discussion
andn/a
Analysis

RT-CH110a.2

Climate Change > Asahi
Kasei Group's Carbon
Neutrality Policy

RT-CH120a.1(1), (2) Pollution
Prevention and Resource
Circulation > Air pollution,
Environmental
Management,
ESG Data (Environment)(3) Pollution Prevention
and Resource Circulation> Reducing emissions ofchemical substances,Environmental
Management,
ESG Data (Environment)(4) ESG Data
(Environment)

Accounting Metric

Category

Unit ofMeasureAir emissions of thefollowing pollutants: (1) NOx(excluding N2O), (2) SOx, (3) Quantitative Metricvolatile organic compounds
tons (t)(VOCs), and (4) hazardous
air pollutants (HAPs)

229

Asahi Kasei Group Sustainability Report 2023

Topic

Energy Management

Water Management

Code

Disclosure and Website
Link(1) Total energy consumed,
Gigajoules(2) percentage grid
RT-CHelectricity, (3) percentage Quantitative (GJ),
Percentage 130a.1
renewable and (4) total self(%)
generated energy(1) Environmental
Management(2) (3)Climate Change >Efforts to Reduce CO2Emissions > Renewableenergy(4) -(1) Total water withdrawn,(2) total water consumed,
percentage of each inregions with high orextremely high baselinewater stress(1) Water Resource
Preservation > Reducing
water use,
ESG Data (Environment)(2) -Accounting Metric

Category

Unit ofMeasureThousandcubic
RT-CHQuantitative meters
3(m ),140a.1
Percentage(%)

Number of incidents of noncompliance associated with Quantitative Number
water quality permits,standards, and regulations

RT-CH140a.2

Description of water
management risks andDiscussion
discussion of strategies and andn/apractices to mitigate those Analysis
risks

RT-CH140a.3

Water Resource
Preservation > Preventionof water pollution-

Hazardous Waste
Management

MetricAmount of hazardous waste(t), RT-CHgenerated, percentage
Quantitative tons
Percentage 150a.1
recycled(%)

Pollution Prevention andResource Circulation >Reducing industrial waste

Community Relations

Discussion of engagement Discussion
processes to manage risks andn/aand opportunities associated Analysis
with community interests

RT-CH210a.1

Social Activities > Local
communities > Dialog andinteraction

RT-CH320a.1

Health Management andOccupational Health and
Safety > Occupational
Health and Safety >Workplace Accidents

RT-CH320a.2

Health Management andOccupational Health and
Safety > HealthManagement > HealthManagement Goals

Workforce Health &Safety(1) Total recordable incident
rate (TRIR) and (2) fatality Quantitative Rate
rate for (a) direct employeesand (b) contract employees
Description of efforts toassess, monitor, and reduce Discussion
exposure of employees and andn/acontract workers to longAnalysis
term (chronic) health risks230

Asahi Kasei Group Sustainability Report 2023

Topic

Accounting Metric

Product Design for
Use phase Efficiency

Revenue from products
designed for use-phaseresource efficiency

Safety &Environmental
Stewardship ofChemicals

Category

Unit ofMeasureDisclosure and Website
Link

Code

RT-CHQuantitative Presentation
currency
410a.1-(1) Percentage of productsthat contain Globally
Harmonized System ofPercentage
Classification and Labelingof Chemicals (GHS)(%) byRT-CHCategory 1 and 2 Health and Quantitative revenue,
Environmental Hazardous
Percentage 410b.1
Substances, (2) percentage(%)
of such products that haveundergone a hazard
assessment(1) Quality Assurance(2) -Discussion of strategy to (1)manage chemicals of
Discussion
concern and (2) develop
n/aalternatives with reduced andAnalysishuman and/or
environmental impact

Quality Assurance >Product safety initiatives,
Chemical substancemanagement
Pollution Prevention andResource Circulation >Reducing emissions ofchemical substances

Genetically Modified
Organisms

Percentage of products byrevenue that containgenetically modified
organisms (GMOs)

Management of theLegal & Regulatory
Environment

Discussion of corporate
positions related to
Discussion
government regulations
n/aand/or policy proposals that andaddress environmental and Analysis
social factors affecting theindustry

RT-CH410b.2

Percentage RT-CHQuantitative (%) by
410c.1revenue231

RT-CH530a.1-

Environmental
Management > Policy
Climate Change > Asahi
Kasei Group Policy for
Achieving Carbon
Neutrality

Asahi Kasei Group Sustainability Report 2023

Topic

Operational Safety,
Emergency
Preparedness &Response

Unit ofMeasureCode

Disclosure and Website
Link

Process Safety Incidents
Count (PSIC), Process Safety Discussion Number,
Total Incident Rate (PSTIR), andRate
and Process Safety Incident Analysis
Severity Rate (PSISR)

RT-CH540a.1

Process Safety > Process
safety management

Number of transport
incidents

RT-CH540a.2

Process Safety >Transportation andDistribution Safety

Accounting Metric

Category

Quantitative Number232Asahi Kasei Group Sustainability Report 2023

Independent Review and Independent Assurance Report
Independent Review (Japan Chemical Industry Association) FY2022

233

Asahi Kasei Group Sustainability Report 2023

234

Asahi Kasei Group Sustainability Report 2023

Independent Assurance Report (KPMG AZSA Sustainability Co., Ltd.) FY2022

235