To promote its CSR activities, Denka has established a CSR promotion structure in which the CSR & Corporate Communications Department serves as a secretariat and collaborates with other specialized bodies to oversee activities undertaken by all Group members. CSR materiality issues are discussed by the Management Committee, which is chaired by the president and in charge of deliberating important managerial matters, with the committee’s conclusions being reported to the Board of Directors. Each body and department placed under the Management Committee supervises such initiatives as worksite safety and Responsible Care activities and is striving to achieve systematic improvements in their respective areas of responsibility. Meanwhile, the CSR & Corporate Communications Department is charged with raising Group employees’ CSR awareness as well as publishing these activities’ results in the CSR report with the aim of facilitating stakeholders

In April 2017, the Denka Group specifi ed key CSR issues that are critical to its stakeholders and to the Group itself, identifying them as materiality issues that it will employ in guiding its CSR activities. This move was intended to help us achieve sound and sustainable growth over the future as a corporate group that lives up to society’s expectations and deserves its trust. We carefully selected these materiality issues based on pressing challenges society is now facing and in reference to external inputs, including United Nations SDGs, guidelines compiled by the GRI, ISO26000 and other international standards, as well as prevailing ESG investment criteria and insights we have gained through its involvement in CDP and CSR procurement. Moreover, these items were examined and evaluated with due consideration given to stakeholders’ expectations and their impact on our operations and were discussed by Denka’s Management Committee, which, in turn, approved on the fi nalization of each item.

In line with the corporate philosophy enshrined in The Denka Value, the Denka Group identified priority CSR materiality issues that, on April 24, 2017, its Management Committee approved.
To clearly define the relationship between Denka’s materiality issues and the Denka Value-Up management plan, at the beginning of fiscal 2020 we changed the terminology used to refer to our materiality issues, switching from “priority CSR materiality issues” to “priority management materiality issues.”
These materiality issues consist of 13 items, each of which is a matter of critical importance for a chemical manufacturer committed to fulfilling its social responsibilities. In line with these 13 items, the chart shown below specifies areas in which we commit ourselves to supporting sustainable social development via the fulfillment of our responsibilities as a manufacturer and the provision of solutions. The chart also indicates how our pursuit of these materiality issues relates to the United Nations Sustainable Development Goals (SDGs).
In particular, we expect our product technologies in the environment and energy, healthcare, and high-value-added infrastructure—fields in which the Denka Group boasts strengths—to greatly contribute to the realization of the SDGs.
With the formulation of our next management plan currently under way, we are engaged in discussion regarding the identification of numerical targets for these materiality issues as part of said plan, with SDGs as our compass. Looking ahead, the Denka Group will push ahead with ESG-oriented management via the pursuit of materiality issues.

Our Next Management Plan

The Denka Group is currently formulating an eight-year management plan for the period from FY2023 to FY2030.
In order to further take up the achievements and issues identified through the "Denka Value-Up" management plan through FY2022 and achieve sustainable growth over the medium to long term, we are working to establish a vision, review materiality issues, and introduce non-financial evaluation indicators in order to clearly establish a management strategy to address issues surrounding sustainability.
Based on the concept of " Business in which we outperform others to build a better world for everyone and become a company that is indispensable for society”, the entire Denka Group is working to realize a sustainable society.

In FY2021, the Denka Group established the Denka Group ESG Basic Policy, recognizing sustainability issues, such as consideration for global environmental concerns, including climate change, respect for human rights, consideration for the health and working environment of employees, fair and appropriate treatment, fair and appropriate transactions with business partners, and risk management for natural disasters as important issues affecting the survival of the Company. We also believe that it is essential to strengthen our efforts to address these issues in the next management plan, which aims for sustainable growth over the medium- to long-term.
With this in mind, we are reviewing materiality issues established in FY2017 as part of the formulation of our next management plan. In conjunction with the Denka Group ESG Basic Policy, we will reflect sustainability issues and clarify our contribution to the further development of society through our business operations.

Materiality Issues (established in FY2017)

In recent years, when business partners, institutional investors, and financial institutions evaluate corporate value, they are increasingly placing greater emphasis not only on financial statements, but also on whether the company will create new value in the future and whether sustainable growth is expected. As a result, every year there is a strong need to visualize non-financial information to measure potential corporate value.
In response to this change in accountability and responsibility, Denka is working to clarify the connection between materiality and management strategy in our next management plan, and to establish non-financial evaluation indicators for each in order to make non-financial initiatives that will lead to future financial results more visible.