Mitsubishi Gas Chemical
Sustainability Data Book 2023

Published on October 1, 2023
Mitsubishi Gas Chemical Company, Inc.

Sustainability
Sustainability Management ｜ Key Issues (Materiality) ｜ Materiality KPI

Sustainability Management
Sustainability Promotion Principle
The MGC Group contributes to realizing a harmonious and sustainable society that keeps growing, inaccordance with its Mission of “Creating value to share with society.” The Group is deeply aware of its
corporate responsibilities in the areas of the environment, society, and corporate governance and carries
out its business activities in line with the MGC Corporate Behavior Guidelines.

MGC Corporate Behavior Principles
1. MGC will drive innovation to provide high-quality products and services that meet society’s needs inorder to gain consumer satisfaction and trust and help customers resolve their problems and achievesustainable growth
2. MGC will voluntarily and proactively address environmental issues and work to resolve them through all
its business activities
3. MGC will comply with laws, regulations, and rules, and will conduct fair, transparent and open businessactivities, including appropriate transactions and responsible procurement
4. MGC will endeavor to ensure broad-ranging communication with society through its proactive, effective
and fair disclosure of information
5. MGC will engage in business activities that are useful for society, and actively contribute to thedevelopment of society as a responsible corporate citizen
6. MGC will help its employees improve their competence and provide them with safe, healthful andrewarding working conditions to ensure that they may lead comfortable and productive lives
7. By closely monitoring changes in the environment of its corporate activities, MGC will continually review
diversifying risks and develop ways to respondSustainability Promotion System1Mitsubishi Gas Chemical
Sustainability Data Book 2023

Published on October 1, 2023
Mitsubishi Gas Chemical Company, Inc.

Sustainability Promotion Council
Chair

President (convener/approver)

Deputy Chair

Director in charge of the CSR & IR Division

Participants

Executive officers, Corporate Sector heads and others designated by thePresident.
Auditors participate as observers.

Secretariat

Corporate Planning Division, CSR & IR Division

Meetings

Held at least annuallyObjectives(1) Deliberate and determine Company-wide policy(2) Deliberate and determine materiality and establish KPIs
(3) Assess and finalize annual Sustainability promotion plan
(4) Verify progress in Sustainability management(5) Build and put in place a Sustainability promotion system(6) Deliberate and determine policies involving individual projects(7) Issue recommendations for corrective actions(8) Information sharing

Sustainability Promotion Committee
Participating Divisions

The Corporate Planning, Administrative & Personnel, Finance & Accounting,Information Systems, CSR & IR, R&D Production, Advanced BusinessDevelopment, Purchasing & Logistics, Environment Safety & Quality Assurance,Production Technology, Internal Audit divisions, and Business Administrative andothers as designated by the Secretariat

Secretariat

CSR & IR DivisionMeetings

Held as needed depending on the agenda

Objectives(1) Deliberate agenda items for submission to the Sustainability Promotion Council
Company-wide policy, materiality, annual Sustainability promotion plan, verificationof progress with Sustainability promotion system, operational reviews, etc.
(2) Establish expert committees

Key Issues (Materiality)
Materiality Identification Process
Step 1

Identification ofissues

Compiled list of over 600 terms related to societal issues/changes fromvarious sources, including requirements in GRI and SASB standards,
ISO 26000 and SDGs and trends among other companies.

Step 2Winnowing

Classified the terms by keyword related to societal issues and societal
change and winnowed them down to 39 materiality factors.

Step 3

Prioritization

Assessed the priority from the standpoint of both stakeholders and theMGC Group. The Sustainability Promotion Committee drafted amateriality prioritization hierarchy and submitted it to the Sustainability
Promotion Council.

Step 4

Managementdeliberation/approval

The materiality submitted by the Sustainability Promotion Committee wasdeliberated and determined by the Sustainability Promotion Council.

Step 5

Updating of identified
materiality

Materiality is subject to change in response to changes in societal
imperatives and stakeholders’ needs and preferences. Materiality will
accordingly be updated as needed in response to changes in society
and/or the MGC Group’s business activities.

2

Mitsubishi Gas Chemical
Sustainability Data Book 2023

Published on October 1, 2023
Mitsubishi Gas Chemical Company, Inc.

Materiality and Main Initiatives: Pursuing Creation of Value to Share with Society
MaterialityCategory

Why it is material

MGC’s main initiatives

Pursuing creation of value toshare with society leads toimprovement in corporate value
from economic, social andenvironmental standpoints.

Helping to move society
forward and solve problems
through business
operations, including bycontributing to developmentof an ICT/mobility society
with polycarbonates,
polyacetal, super-purehydrogen peroxide,
electronic chemicals, opticalpolymers andsemiconductor packaging
materials (BT resin); solving
energy and climate change
problems with geothermaland LNG- fired power
penetration projects andfunctional monomers; andsolving medical and foodproblems with life science
products (e.g., antibody
drugs, fermented foods),
oxygen absorbers and MXNylon

Elements

CreatingContribution throughShared Valuebusiness operations(CSV)・ Contribute to
Development of
ICT/Mobility Society
・ Solve energy and climatechange problems
・ Solve medical and foodproblems

Related SDGs (targets)

3.6
3.8

Foundationfor shared­
value creation
(S)

4.4

7.2
7.3

8.1

9.4

11.4

12.2
12.3

17.3
17.16

Cultivating a corporate
culture of job
satisfaction

An organizational culture thatenables all employees toconfidently give full play to theirabilities over the long term whilefinding individualized meaning intheir jobs is the foundation of
corporate value creation.

Promoting work-lifebalance; offering generous
child/family care systems,
creating dynamic workplaceenvironments

Promotion of diversity
and inclusion

A culture of collaboration amongindividuals with diverse values isconducive to new ideas andtechnological innovation.

Stakeholder
engagement

Corporate value creation is a
result of stakeholders’contributions, including theresources they provide.

Providing more
opportunities to women;
supporting careeradvancement and work/lifebalance; promoting
employment of individuals
with disabilities
Disclosing information incompliance with laws andsecurities exchanges’
regulations; fairly andtransparently disclosing
information online and via
news media

Promotion of sociallyresponsible sourcing

Companies have a societal
responsibility to upgrade CSR
compliance throughout their
supply chains with respect to theenvironment, working
conditions, human rights, etc.

3

Building safe, legallycompliant andenvironmentally friendly
supply chains

Mitsubishi Gas Chemical
Sustainability Data Book 2023Published on October 1, 2023
Mitsubishi Gas Chemical Company, Inc.

Occupational safety
and health/Process
safety and disasterprevention

Safety is the foundation ofbusiness activities. Companies
have a societal duty to ensure
safety.

Continuing to conduct
occupational safety andhealth risk assessments,
daily safety activities andsafety education/training in
the aim of zero occupational
injuries

Highly energy­ andresource­efficient
production

Companies have a duty toharmonize their operations withglobal environmental protectionin accord with the principle ofsustainable development.

Minimizing environmentalimpacts in sourcing
resources; efficiently using
resources (energy, rawmaterials, water, etc.)

Chemical / productquality and safetyassurance

Quality assurance is the basis ofstakeholders’ trust. Companies
have a duty to provide highly
safe and reliable products andservices.

Promoting company-wide
quality assurance activities(Q- MGC) throughout
supply chains

Promotion ofinnovative R&D

Developing valuable new
products and technologies that
help to move society forward
and solve problems is thepursuit of creation of value toshare with society.

Developing/adopting newprocesses that maximallyleverage core technologies
cultivated over many years,
founding and developing
new businesses

6.3

10.2

Related SDGs (targets)

3.8
3.9

4.2
4.4

5.1
5.5

Harmonizatio
Proactive response ton of shared­
environmental
value creation problems
with・ Air Quality Control
environmental
・ Water and Biodiversity
protection (E)Conservation
・ Reduction of industrial
waste

7.3

8.2
8.7

9.4
9.5

12.2
12.4
12.6

16.2
16.10

Addressing environmental
・ Formulating medium-term
problems is imperative for all ofand annual RC* plans andhumanity. Companies must
endeavoring to achieve theirproactively do so as atargets
prerequisite for their existence*RC: Responsible Careand activities.
・ Reducing GHG emissions
while supporting the Task
Force on Climate-related
Financial Disclosures

Related SDGs (targets)

3.9

6.3

12.2
12.4
12.5

Value­creative Strengthen systems:
discipline
・ Corporate Governance(G)・ Compliance・ Internal controls
・ Risk management

13.2

14.1
14.3

Developing disciplined ways
steadily execute strategies tobring business models to fruition
and to sustainably growcorporate value.

Related SDGs (targets)

5.15.5

8.7

10.2

15.1

16.2
16.5
16.10

4

Building effective internalcontrol systems based on
appropriate corporate
governance, ensuring thesoundness of businessactivities throughcompliance, risk
management, etc.

Mitsubishi Gas Chemical
Sustainability Data Book 2023

Published on October 1, 2023
Mitsubishi Gas Chemical Company, Inc.

Materiality KPIContribution through business operations (CSV)KPIs

FY2022
Results

Sales from ICT andmobility
applications

283.5 billion. JPY

Contribution tosolving energy andenvironmental
problems

Investment:
13.9 billion. JPY*
2021-2023
cumulativeforecasts

Sales from medical
and foodapplications

FY2023
Targets

FY2030Targets

320.0 billion. JPY

Create newbusinesses that
accelerate digital
innovation

Investment:
12.0 billion. JPY*
(3-year cumulative)

Commercialize
carbon-negativetechnology

50.0 billion. JPY

 Advance
preventative/
predictive medicine;
enhance healthy
longevity
 Further advancefood preservation
technology

56.2 billion. JPY

Related SDGs
(targets)

3.6

9.4

9.4

3.8

12.3

*Consolidated basis; Investment: Acquisition; Financing: Approval basis

Foundation for shared­ value creation (S)KPIsFY2022
Results

FY2023
Targets

FY2030Targets

Percentage taking
fewer than 10 days ofannual paid leave*1,24％0％0％

Serious occupational
accidents*1,31

Related SDGs
(targets)

8.5 8.800
3.9

Serious accidents*1,4000
3.9

GHG emissions
intensity
vs. Fiscal 2013*1

8.6% reduction

R&D investments
devoted to solving
climate change
problems*1,5

13% of R&D
expenditures

19.9% reduction

28.0% reduction
7.3

5% or moreof R&D
expenditures

57% or moreof R&D
expenditures

9.5Mitsubishi Gas Chemical
Sustainability Data Book 2023

Published on October 1, 2023
Mitsubishi Gas Chemical Company, Inc.

Proactive response to environmental problems (E)KPIs

GHG emissions
vs. Fiscal 2013*1

FY2022
Results

FY2023
Targets

FY2030Targets

34% reduction

28% reduction

36% reduction

Related SDGs
(targets)

13.2

Renewable energy as apercentage of electric
power purchased*1

19%

Zero waste emission
rate*1,6

0.25%

10%

50%
7.2

0.3% or less

0.15% or less
12.5

*1 On a non-consolidated basis*2 For employees granted 20 days of annual leave*3 Accidents resulting in lost workdays eligible for disability compensation, including death and permanent disability, or potentialdisability, with four or more lost workdays*4 Accidents that threaten third parties, including those resulting in environmental pollution involving the community or thatcause damage to local residents, and other accidents involving serious damage*5 R&D investments including basic research, pilot plants, technical testing, etc.
*6 (Amount of final disposal) ÷ (total amount of industrial waste generated) × 100

6