Materiality and Key Performance Indicators(KPIs) for Sakai Chemical
Management Mission

ThemeMake People
Happy

Protect the Global
Environment

Solve Social Issues
throughManufacturing

Build aTransparent andStrongManagementSystem

4 2023 Environmental & Social Report

Chemistry for a Friendly Future—Creating materials that support the comfort and security ofsociety through compassion and technological innovation—

Issue of materiality

Our major initiatives(1) Foster human resources and create a
corporate culture where employees canfeel their growth

Organizational Vision

Social Issues

Key performance indicators (KPIs)
KPIs

Targets

Results

Building mechanisms to allow employees to take up new challenges
and act on their own initiative
Promoting diversity

Results of stress checks
Deviation value of the score for the evaluation item
“Consideration for employees’ career development”

Exceed the deviation value of chemical companies’ stress checkscores and aim to rank higher
Reach a deviation value of 50.4 in the chemical industry for FY2021(Sakai Chemical Industry’s actual deviation value for FY2021: 46.9)

Deviation value in the chemical industry for FY2022: 50.5
(Sakai Chemical Industry’s actual deviation value for
FY2022: 47.5)(2) Create a comfortable working
environment

Introducing a new personnel system
Improving the working environment (in terms of both time and space)
Making each workplace livelier

Frequency rate (number of occupational
fatalities and injuries per one million actual
working hours)
Severity rate (number of working days lost due
to accidents per 1,000 actual working hours)
Promotion of digital transformation (DX)

Create a safety-first workplace environment
Eclipse a frequency rate of 0.93 in the chemical industry for
FY2020 (Sakai Chemical Industry’s actual frequency rate for
FY2020: 0.70)
Eclipse a severity rate of 0.03 in the chemical industry for FY2020(Sakai Chemical Industry’s actual severity rate for FY2020: 0.00)
Continue to promote DX

Frequency rate in the chemical industry for FY2021: 1.07
(Sakai Chemical Industry’s actual frequency rate for
FY2021: 0.69)
Severity rate in the chemical industry for FY2021: 0.02
(Sakai Chemical Industry’s actual severity rate for
FY2021: 0.00)(3) Contribute to local communities

Having close dialogue with local communities
Supporting or participating in local associations

Number of opportunities for dialogue that Sakai Chemical Industry has withlocal communities through the Responsible Care® and other initiatives
Number of social contribution activities in which Sakai Chemical Industry
participates among those conducted by the local associations that theCompany supports or has a membership inHave one or more dialogue opportunities a year
Participate in one or more social contribution
activities a year

Had dialogue opportunities through the Watanabe
Shimomachi-ku Specialist Committee, the Shimogawa Studies
Group, the Izumi Furusato Festival, and the Sakai Festival
Participated in the Iwaki Sunshine Marathon, Sakai Science
Education Festa, etc.

(4) Manage chemical substances
appropriately, reduce environmental
impact, and implement measures toimprove product safety

Making a fuel switch from crude oil to LNG; replacing motors andlights with highly efficient motors and LED lights, respectively;
installing solar power panels; working to recover NH3, CO2, and H2;
raising levels of pollution prevention and chemicals management

CO2 emissions reduction rate (versus theFY2013 level)
Number of serious environmental accidents

Achieve a 30% reduction by FY2030Achieve zero accidents throughout the year

FY2021: Achieved a 14% reduction
FY2022: One incident occurred (a fire at theOnahama Manufacturing Site)(5) Reduce industrial waste emissions

Promoting the 3Rs (“reduce,” “reuse” and “recycle”)
Reconsidering raw materials, fuels, and the manufacturing processes
Recycling industrial waste

Industrial waste reduction rate (versus theFY2021 level)

Achieve a 25% reduction by FY2025(6) Give consideration to biodiversity

Continuing to conduct monitoring activities near disposal plants
Contributing to biodiversity using voluntary credits for carbon neutral
LNG (CNL)

Status of surveying animals, plants and ecosystems
as a post-assessment after an environmental impact
assessment
Introduction of CNL

Conduct a survey on the occasion of disposal
plant construction work
Continue to use CNL(7) Create products and services that help
solve environmental and social issues

Developing and/or manufacturing solid-state battery materials,
synthetic ammonia catalysts, substitute products for microplastic
beads, 5G-related (low-expansion, heat-radiating, low-dielectric-loss,and/or flame-retardant) materials, carbon recycling catalysts, andantibacterial and antiviral materials

Number of developments certified as Smart
Material®

Launch five Smart Material® products byFY2030(8) Promote responsible procurement

Providing information to suppliers and asking for their cooperation;
auditing business partners; etc.

Percentage of business partners whom we request
to conduct a customer satisfaction survey

100%Started conducting the survey in FY2023(9) Increase the effectiveness of the Boardof Directors

Implementing an annual questionnaire to evaluate the effectiveness ofthe Board of Directors
Making improvements based on the questionnaire results
Formulating plans to develop management human resources
Operating the Nomination and Compensation Committee

Following indicators based on the results of thequestionnaire on the effectiveness of the Board of Directors
1) Number of challenges identified
2) Number and total hours of discussion sessions on eachchallenge
3) Number of countermeasures devised4) Number of countermeasures implemented

Identify challenges based on the results of thequestionnaire on the effectiveness of the Board,and make necessary improvements

FY2022: Identified challenges based on thequestionnaire results and made necessary
improvements(10) Understand risks and takecountermeasures

Conducting risk and compliance education, training andawareness-raising activities
Operating committees and subcommittees effectively

Number of serious compliance violations
Ability to maintain a Company-wide risk
management system

Achieve zero serious compliance violations
throughout the year
Maintain the effectiveness of the system

FY2022: Achieved zero violations throughout
the year
FY2022: Maintained system effectiveness(11) Ensure timely and appropriate
information disclosure

Stimulating IR and PR activities; enhancing PR for crisis management

Compiling and providing an integrated report orinformation equivalent to the content of such areportProvide an integrated report or informationequivalent to the content of such a report fromFY2022

Planning to issue an integrated report for
FY2023 while abandoning the plan for a FY2022
reportFY2022: Continued to use CNL

2023 Environmental & Social Report5