Approach to Sustainability
In order to fulfill its purpose (raison d'être) as a corporate group centered on specialty chemicals, the UBE Group aims to achieve sustainable growth by effectively utilizing its management resources and creating new value for society. The cornerstone of our efforts is a focus on realizing a sustainable world. Toward that end, we work to ensure that all executives and employees of the UBE Group are fully aware of the UBE Group Basic Policies for Sustainability, identifying material issues in the areas of growth, environment, society, and governance, and proactively seeking solutions to these issues.
UBE Group Basic Policies for Sustainability
The UBE Group lives up to its founding spirit and corporate philosophy by pursuing Group sustainability through its business activities. At the same time, we are focused on strengthening our efforts to address global environmental issues and contributing to the realization of a sustainable world that exists in harmony with nature.
- We will secure safety and quality in providing products and technologies that contribute to the environment.
- We will practice appropriate information disclosure for all stakeholders and readily communicate with society.
- We will pursue corporate governance that is in keeping with the demands of society and strive to continuously expand revenues and enhance our corporate value.
- In accordance with laws and regulations at home and abroad, and international norms and guidelines that should be observed, and with respect for human rights, we will pursue our corporate activities in a sound and fair manner.
- We will respect the culture and customs of all countries and regions and contribute to the development of local communities.
Framework and Policies for Sustainability Initiatives
The UBE Group considers sustainability initiatives to be a key element of corporate management.
The UBE Group’s sustainability initiatives focus on enhancing the Group’s corporate value and advancing its purpose while promoting sustainable growth, and they involve routinely engaging in dialogue with stakeholders to build their trust while coexisting with society. The Group conducts business activities that globally expand the circle of mutual coexistence and prosperity in line with our founding spirit.
The policy direction for the General Affairs Department is as follows.
- Collect information concerning social initiatives (such as socially beneficial activities, philanthropy and aid, volunteering, UBE Foundation, Watanabe Memorial Culture Association, and charity concerts) from among the Group’s sustainability initiatives
- Plan and implement UBE Group Charity Concerts
- Clarify and externally disclose the relevance of the 17 Sustainable Development Goals (SDGs) and 169 targets in relation to the Group’s activities
- Continually gather external information and information on social trends that should be monitored, such as CSR, the SDGs, and environmental, social, and governance (ESG) issues, and provide sustainability guidance to business divisions and Group companies
The UN Global Compact
In April 2021, UBE signed the United Nations Global Compact and joined the UN Global Compact Network Japan, the local network of Global Compact participants in Japan.
UBE participates in 13 subcommittees as part of the Global Compact Network Japan. At quarterly cross-departmental meetings, the Company shares corporate best practices for the sustainability issues being addressed by each subcommittee. These efforts demonstrate the Company’s active approach to carrying out group-wide sustainability management.
13 subcommittees in which UBE participates
Supply Chain Working Group, Environment Management Working Group, GC Internal Promotion Working Group, Human Rights Due Diligence (HRDD) Working Group "Guiding Principles on Business and Human Rights", Human Rights Education Working Group, Anti-Corruption Working Group, Disaster Risk Reduction (DRR) Working Group, SDGs Working Group, ESG Working Group, Creating Shared Value (CSV) Working Group (Management Framework), Women’s Empowerment Principles (WEPs) Working Group “Women’s Empowerment Principles”, Reporting Working Group, Circular Economy Working Group
Support for TCFD Recommendations
The UBE Group expressed its support for TCFD proposals in April 2020. We will assess and analyze the business risks and opportunities of climate change to the Group, reflecting these factors in our business strategy and disclosing information.
The FTSE4Good Index Series is a series of stock indexes developed by FTSE Russell, a subsidiary of the London Stock Exchange Group. Companies that demonstrate strong environmental, social and governance (ESG) practices are selected for the index based on a rating model that is highly aligned with international standards for each aspect of ESG including the United Nations Sustainable Development Goals (SDGs).
The FTSE Blossom Japan Index is a stock index developed by FTSE Russell comprised of Japanese companies that demonstrate strong environmental, social and governance (ESG) practices. The Government Pension Investment Fund (GPIF), the largest public pension fund in the world, has selected FTSE Blossom Japan Index as its stock index for ESG investment.
The FTSE Blossom Japan Sector Relative Index*, developed by Global Index Provider FTSE Russell, is designed to measure the performance of Japanese companies that have relatively strong Environmental, Social, and Governance (ESG) practices in individual industries or sectors. This index is constructed so that industry or sector weights align with the Japanese equity market. In addition, this index supports the transition to a low carbon economy by selecting companies with high GHG emissions as constituent stocks only if they have achieved a reduction in GHG emissions based on the TPI Management Quality Score.
The FTSE Blossom Japan Sector Relative Index is used as a benchmark for ESG-based passive investment by Japan’s Government Pension Investment Fund (GPIF), one of the world’s largest public pension management organizations.
*FTSE Russell (registered trademark of FTSE International Limited and Frank Russell Company) hereby confirms that UBE Corporation has been independently assessed and found to satisfy the requirements for inclusion in the FTSE Blossom Japan Sector Relative Index. The FTSE Blossom Japan Sector Relative Index is widely used in the creation and evaluation of sustainable investment funds and other financial products.
The MSCI Japan ESG Select Leaders Index is designed to indicate companies that have high environmental, social and governance (ESG) performance and is based on data from MSCI ESG Research of Morgan Stanley Capital International, Inc. Constituent selection is based on a comprehensive evaluation of ESG-related risks, and companies with high ESG performance relative to their sector peers are selected from among the top 700 listed companies in Japan by market capitalization. The Government Pension Investment Fund (GPIF), the largest public pension fund in the world, has selected MSCI Japan ESG Select Leaders Index as its stock index for ESG investment.
*The inclusion of UBE Corporation in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of UBE Corporation by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.
Selected as a member of SOMPO Sustainability Index operated by Sompo Asset Management Co., Ltd., an index comprised of approximately 300 member companies demonstrating excellent ESG performance.
JPX-Nikkei Index 400
Selected for JPX-Nikkei Index 400 comprised of companies with high appeal for investors, that meet the requirements of global investment such as efficient use of capital and investor-focused management perspectives. The index is jointly prepared by Japan Exchange Group, Tokyo Stock Exchange, and Nikkei Inc.
Companies that formulate an ordinary employer action plan based on the Act on Advancement of Measures to Support Raising Next-Generation Children, and achieve the targets in the prescribed plan as well as meet certain standards are eligible to apply for Kurumin certification from the Minster of Health, Labour and Welfare, as a company that supports child-rearing.
Recognized under the Certified Health & Productivity Management Outstanding Organization Recognition Program operated by the Ministry of Economy, Trade and Industry to honor large corporations and small- and medium-sized enterprises (SMEs) displaying excellence in health and productivity management.
The UBE Group recognizes that opportunities for stakeholder engagement are important for the Group to coexist with society, and actively pursues the following five initiatives.
|Stakeholders||UBE Group’s Mission||Means/Opportunities of Engagement|
|Customers||Provide safe, high-quality products and services that are useful to society at fair prices and swiftly respond to customer needs||Communication through sales activities and information disclosure through various means (including the UBE Group website and product catalogs)|
|Suppliers||Engage in fair, honest transactions||Communication through purchasing activities|
|Employees||Provide fair pay and stable employment, develop human resources, properly manage work hours, and support work-life balance initiatives||Corporate briefings, the Central Labor-Management Conference, training, reporting and counseling systems, internal publications, and the Company intranet|
|Local communities and governments||Provide stable, fair employment, pay taxes appropriately, and engage in dialogue with local communities and society||Regional dialogue meetings, Tsubasa community gazette, charity concerts, industry-academia collaboration projects|
|Shareholders and investors||Continuously raise corporate value; provide timely, appropriate information disclosure; and maintain shareholder returns through stable, appropriate dividends and stock buybacks||IR activities (results briefings, investor briefings, facility tours, etc.), the General Meeting of Shareholders, and information disclosure through various means (the UBE Group website, the Integrated Report and the UBE Business Report)|
Global Environmental Issues
An introduction to the UBE Group’s initiatives on global environmental issues.
Environment, society and governance (ESG)-related data