Addressing Biodiversity

While the corporate activities of SEKISUI CHEMICAL Group benefit from the multitude of blessings of nature brought about by biodiversity, they also place a burden on ecosystems. Recognizing this, we view nature as a form of capital that has value, and will therefore realize returns on the burden of its use through products and initiatives.
We will promote the efficient use of limited resources and energy, and strive to reduce the environmental impact caused by greenhouse gases and hazardous chemical substances while preventing pollution. At the same time, we will endeavor to improve functions and services so that our customers who use our products can contribute to the conservation of biodiversity.
We will work with various stakeholders to conserve and restore biodiversity to realize "Nature Positive^*" through environmental considerations and contributions in our business activities and environmental conservation activities around the world, while making returns that have a positive impact on natural capital beyond the natural capital we utilize. We will work to conserve and restore biodiversity toward the realization of "Nature Positive".

As a general rule, SEKISUI CHEMICAL Group does not use or develop land in the vicinity of protected areas (World Natural Heritage, IUCN Category I, II, III, and Ramsar Convention on Wetlands sites).
We will ascertain the impact of our business activities on biodiversity throughout the global value chain, and will review, minimize, recover, and offset activities in areas deemed important from the perspective of biodiversity.

In order to contribute to the realization of an earth with maintained biodiversity, SEKISUI CHEMICAL Group engages in activities based on its Long-term Environmental Management Vision, SEKISUI Environment Sustainability Vision 2050^*1.
As stated in the SDGs, natural and social environmental issues are interconnected, and in order to solve a single issue, we must remain conscious of multiple issues while working to find solutions.
Going forward, the Group will strengthen partnerships with stakeholders and work to evolve its activities, conscious of the need to not only solve issues relating to society, but also those that relate to the natural environment. By doing so, we will contribute to realizing returns on both natural and social capital^*2, through which we hope to achieve a nature positive earth.
With this in mind, we have drawn up the following grand design of initiatives that will prioritize by 2050.

As far as the Group’s biodiversity-related risks are concerned, we have drawn up four social scenarios that are based on two presupposed axes. One axis focuses on the decentralization of social systems in rural areas against concentration in large cities. The other axis focuses on mitigation as opposed to the acceleration of climate change, with temperatures of not more than 1.5°C and not less than 4°Cs. We have examined the impact from a nature perspective on each social scenario and analyzed the risks and opportunities that arise under these impacts.
As a result, we have identified the following as important risks to the Group’s biodiversity.

SEKISUI CHEMICAL Group has promoted the following initiatives to address biodiversity.

As far as biodiversity issues that may pose a risk to management are concerned, steps are taken to ascertain the magnitude of each risk and to consider as well as implement appropriate countermeasures under the supervision of the Board of Directors. In similar fashion to other environmental issues, our supervisory and executive systems for reducing the Group’s impact on biodiversity issues and expanding its contribution to the resolution of issues are based on the Environmental Management Promotion System. (For details see here)
When new land is acquired, for example through large-scale land development, such as when constructing our own factories, or through M&As, we carry out environmental assessments of the impact that our business may have on the atmosphere, water areas, soil, etc. During these environmental impact assessments, we also verify any impact with regard to biodiversity.

Under SEKISUI Environment Sustainability Vision 2050, SEKISUI CHEMICAL Group is working to realize an earth with maintained biodiversity. To that end, we are promoting initiatives that utilize the net-positive approach toward ecosystems.
We use the SEKISUI Environment Sustainability Index as an integrated indicator to confirm the degree of progress toward realizing our environmental vision. As a result, we calculate the rate of return on natural and social capital, which we consider an assessment of the degree of impact on biodiversity as a whole.
In the future, we will also identify and monitor the impact of two aspects on plant biomass (primary production of plants) and biodiversity (number of extinct species) as a breakdown of this calculation.

Since 2002, SEKISUI CHEMICAL Group has provided grants for manufacturing with a focus on learning from nature, while also holding forums to share the results of research work. As an effective approach to manufacturing that is geared toward the resolution of social and environmental issues, we recognize the critical need to learn from nature’s wisdom. With this in mind, we are implementing various measures develop biomimicry^* technology.

SEKISUI CHEMICAL Group is implementing initiatives to improve the quality of green spaces at all of its domestic production sites and research institutes.
We are promoting initiatives to improve the quality of the green spaces within our 45 business sites in Japan (total site area: 3,282,000 m², total green space area: 855,000 m²) in an effort to improve the habitats of local flora and fauna, build an ecosystem network that connects local communities and business sites, and revitalize regional cooperation. Utilizing the JBIB Land Use Score Card®, we are aiming to improve our score by three points compared with FY2022 during the period of the Environmental Medium-term Plan (FY2023-2025).
Under the guidance of the environmental consulting company Regional Environmental Planning, Inc.,, we engaged in a variety of activities, including the following.

Many non-native species have invaded our surrounding, firmly taking root. Some of these are plants that damage ecosystems, including those that deprive native species of their habitat, and others are plants that are harmful to people.
Under these circumstances, SEKISUI CHEMICAL Group has conducted surveys of exotic and precious plants in and around its 27 plants and offices in cooperation of experts since fiscal 2018.
Based on the results of the survey, we have selected those species to be eradicated and those to be preserved, and have prepared a countermeasure manual that outlines appropriate eradication methods and timing, which we are using while continuing to engage in eradication activities.
In order to create and maintain a better environment within business sites, we recognize the need to manage green spaces with biodiversity in mind, while focusing on non-native species and species conservation (precious species).

SEKISUI CHEMICAL Group is engaged in mangrove reforestation activities to restore and maintain the mangrove ecosystem in Thailand and to contribute to the local community.
In fiscal 2023, the Thai province of Nakhon Si Thammarat was buffeted by extreme weather conditions, which caused the tidal flats to become dry due to high temperatures. To address this grave situation, and in cooperation with local fishermen, about 30,000 trees on 10 ha of tideland were planted at the beginning of the monsoon season. Through observation of the growth and condition of the trees planted in fiscal 2022, we found that many of the trees had already sprouted branches and that supporting roots were firmly extending into the ground. These activities are contributing to the creation of carbon-rich tropical peatlands.